monday.com (MNDY, Financial) just reported what should've been a celebratory quarter. The SaaS powerhouse posted non-GAAP EPS of $0.85, crushing estimates by $0.22, with revenue jumping 33% year-over-year to $251 million, a solid $4.72 million beat. The company's net dollar retention rate hit 111%, while its second-largest customer—a global tech giant—more than doubled its seats to 60,000. Co-founders Roy Mann and Eran Zinman called crossing $1 billion in annual recurring revenue (ARR) a “major milestone” and hinted that this is just the start of an even bigger growth story.
But here's where things get tricky: despite the blowout numbers, monday.com's stock tanked nearly 20%. Why? The company issued Q4 guidance of $260–$262 million, representing 28–29% growth—solid, but not the rocket-fueled momentum investors had hoped for. The selloff overshadowed some impressive Q3 metrics: non-GAAP operating income climbed to $32.2 million, free cash flow hit $82.4 million, and high-value customer accounts (over $100,000 in ARR) surged 44%. Leadership changes added another layer of intrigue, with seasoned growth strategist Adi Dar stepping in as COO while CRO Yoni Osherov, who helped scale ARR from $10 million to $1 billion, announced his departure.
The selloff feels more like a reaction to sky-high expectations than a verdict on monday.com's future. The company remains on track to end 2024 with nearly $1 billion in revenue and a stellar 30% free cash flow margin. Investors may be jittery, but the long-term potential is hard to ignore. With its growing foothold in enterprise markets and a proven ability to scale, monday.com is far from a typical SaaS player—it's positioning itself as the go-to platform for redefining how businesses collaborate.
