Work management platform monday.com (NASDAQ:MNDY) will be reporting results this Monday morning. Here’s what to look for.
monday.com beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $299 million, up 26.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a decent beat of analysts’ annual recurring revenue estimates. It added 258 enterprise customers paying more than $50,000 annually to reach a total of 3,702.
Is monday.com a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting monday.com’s revenue to grow 24.4% year on year to $312.4 million, slowing from the 32.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.88 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. monday.com has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.3% on average.
Looking at monday.com’s peers in the productivity software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Atlassian delivered year-on-year revenue growth of 20.6%, beating analysts’ expectations by 2.2%, and Pegasystems reported revenues up 17.3%, topping estimates by 8.5%. Atlassian traded up 5.4% following the results while Pegasystems was also up 15%.
Read our full analysis of Atlassian’s results here and Pegasystems’s results here.
Investors in the productivity software segment have had steady hands going into earnings, with share prices flat over the last month. monday.com is up 2.2% during the same time and is heading into earnings with an average analyst price target of $266.33 (compared to the current share price of $189.15).
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