Shares of monday.com Ltd. (NASDAQ:MNDY) plunged over 12% in pre-market trading on Monday, despite reporting strong third-quarter results. The company's stock took a hit after it lowered its revenue guidance for the fourth quarter of 2024.
For the third quarter ended September 30, 2024, monday.com reported revenue of $251 million, an increase of 33% year-over-year. The company achieved a significant milestone by surpassing $1 billion in annual recurring revenue (ARR).
On the profitability front, monday.com posted non-GAAP operating income of $32.2 million, representing an operating margin of 13%. The company's net dollar retention rate, a key metric for subscription businesses, increased to 111%, indicating strong customer loyalty and expansion.
monday.com's co-founders and co-CEOs, Roy Mann and Eran Zinman, highlighted the company's consistent execution and focus on deepening product capabilities as drivers of the solid third-quarter performance.
However, the company's guidance for the fourth quarter fell short of expectations. monday.com projected revenue in the range of $260 million to $262 million, representing year-over-year growth of 28% to 29%, lower than analysts' estimates.
