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Monday.com (MNDY) Stock Pops on Strong Q3 Earnings

  • Monday.com (MNDY) is a big earnings winner today after beating Q3 estimates.
  • Moreover, the company announced an optimistic revenue outlook for Q4 and full-year 2022.
  • MNDY stock moved higher as traders caught wind of the results and guidance.
MNDY stock - Monday.com (MNDY) Stock Pops on Strong Q3 Earnings

Source: shutterstock.com/monticello

Is it a coincidence that Monday.com (NASDAQ:MNDY) released its third-quarter 2022 earnings results on a Monday? Conspiracy theories aside, MNDY stock is popping today as Monday.com’s earnings per share (EPS) came in better than anticipated. Plus, traders are undoubtedly delighted with Monday.com’s revenue guidance.

Israel-headquartered Monday.com develops and commercializes cloud-based work management tools. Believe it or not, Monday.com’s platform is used by more than 152,000 customers in over 200 countries and territories.

So, even if you haven’t heard of Monday.com, many businesses are using it right now. Now, work management software might seem “so last year,” but Monday.com is beating the Monday-morning blues with a robust set of third-quarter data points.

To begin, Monday.com generated $136.9 million in revenue, up 65% year over year (YOY). Furthermore, the company’s number of customers with more than $50,000 in annual recurring revenue (ARR) grew 116% YOY in Q3 2022.

In case all of that isn’t enough, Monday.com reported non-GAAP net income per diluted share of 5 cents. That might not sound impressive, but the analysts on Wall Street expected Monday.com to post a quarterly per-share loss of 54 cents.

What’s Happening With MNDY Stock?

In response to all of this data, MNDY stock flopped around but generally stayed around 8% higher in early trading today. That’s understandable, given Monday.com’s Street-beating per-share earnings result.

There’s actually more to this story, though. Always remember that a company’s forward guidance can be just as important as the actual, current results.

Thus, it was a real head-turner when Monday.com issued fourth-quarter revenue guidance of $140 million to $142 million. This range of anticipated results would represent YOY growth of 47% to 49%. For the full year of 2022, Monday.com now expects to generate $509 million to $511 million in revenue. If that happens, it would translate to a YOY increase of 65% to 66%.

In other words, Monday.com is ready to ramp up its revenue even after an already impressive quarter. So, Tuesday may bring a different mood, but today’s traders are clearly enthusiastic about Monday.com

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.


Article printed from InvestorPlace Media, https://investorplace.com/2022/11/monday-com-mndy-stock-pops-on-strong-q3-earnings/.

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