This episode provides an analysis of the financial results and market reaction to monday.com's (MNDY) Q3 2025 earnings report, focusing on the concept of company guidance versus consensus estimates. The articles and earnings transcript confirm that the company achieved a strong beat on Q3 revenue and non-GAAP earnings, while also reporting record non-GAAP operating income, suggesting robust financial health and momentum in moving upmarket. Despite the strong performance, the stock sharply declined—between 14% and 20% in pre-market trading—because the Q4 revenue guidance missed Wall Street's consensus estimates by a small margin, leading to significant investor disappointment. Management attributed the cautious outlook to timing effects and a strategic shift in investments toward larger enterprise deals and higher-ROI channels, which have longer sales cycles than the traditional paid marketing. The financial context explains that guidance is the management's internal forecast, while the consensus estimate is the average forecast from external analysts, and stocks typically react more strongly to the guidance miss than the current earnings beat.
Disclaimer: This podcast by kavout.com is for informational and educational purposes only and does not constitute investment advice. All opinions are those of the hosts and guests. Please consult a qualified financial advisor before making any investment decisions.
