Monday.com Shares Skyrocket 26.5% After Smashing Earnings Expectations and AI Advancements

Shares of work management software company Monday.com (MNDY.US) surged 26.5% on Monday, closing at $326.58. This significant stock price increase followed the release of the company's fourth-quarter financial results and guidance, which exceeded market expectations. In response, KeyBanc upgraded Monday.com's rating from "Sector Weight" to "Overweight," setting a target price of $420.

Monday.com reported fourth-quarter revenue of $268 million, marking a 32% year-over-year increase. This figure surpassed the market's expectation of $261 million. Additionally, the company's earnings per share rose to $1.08, a notable 66% improvement, far above the anticipated $0.65.

Jackson Ade, a KeyBanc analyst, commented on the company's performance, stating, "We expected the company's guidance to fall short of market projections. We were hesitant to re-enter at a lower entry point, as we didn't want to repeat past mistakes or miss out on significant future growth due to over-cautiousness."

Ade also highlighted that Monday.com's 2025 revenue growth guidance indicates a mid-point of 26.5%, whereas initial expectations were at 26.2%. With a 24% growth forecast on a constant currency basis projected to boost the stock price, the 26.5% outlook caught the market off guard.

Roy Mann, Co-CEO of Monday.com, emphasized the company's strides in integrating artificial intelligence into its platform. During the earnings call, Mann noted, "In 2024, we've made substantial advancements in AI development, launching multiple new features, including AI modules. Since AI has become part of the Monday platform, users have executed approximately 10 million AI operations. This ongoing progress highlights our commitment to enhancing user experience and boosting efficiency with innovative AI solutions."

Overall, Wall Street analysts hold a consensus "Strong Buy" rating for Monday.com, with an average target price of $336.58, suggesting a slight 3% upside from the current share price.