Monday.com (MNDY, Financial) saw its stock rise by 26.5%, closing at $326.58, following the release of its better-than-expected fourth-quarter earnings and guidance. The company reported a 32% year-over-year increase in revenue to $268 million, surpassing the market expectation of $261 million. Earnings per share also exceeded forecasts, reaching $1.08, a 66% increase compared to the expected $0.65.
KeyBanc upgraded Monday.com from "hold" to "overweight" with a target price of $420. Analyst Jackson Ade noted that while they initially expected the company's guidance to fall short, the impressive performance prompted a reevaluation. Ade highlighted the company's 2025 revenue growth guidance of 26.5% at constant currency, which surpassed their earlier projection of 26.2%.
Roy Mann, co-CEO of Monday.com, emphasized the company's progress in integrating artificial intelligence (AI) into its platform. In the earnings call, Mann mentioned significant advancements in AI development for 2024, including new features like AI modules. Users have executed around 10 million AI operations since AI was incorporated into the platform, underscoring the company's commitment to enhancing user experience and efficiency through innovative AI solutions.
Wall Street analysts have a "strong buy" rating for Monday.com, with an average target price of $336.58, indicating a potential 3% upside from the current stock price.
