Shares of Monday.com Ltd (NASDAQ:MNDY) tanked in early trading on Tuesday, after the company Monday reported its first-quarter results.
Here are the key analyst insights:
- BTIG analyst Allan Verkhovski maintained a Buy rating, while lowering the price target from $135 to $115.
- DA Davidson analyst Lucky Schreiner reaffirmed a Buy rating on the stock.
Check out other analyst stock ratings.
BTIG: Monday.com's total revenues grew 24.5% year-on-year to $351 million. This marked a record revenue beat of $12 million, Verkhovski said in a note. Despite the strong revenue beat, the shares sharply declined, likely due to "underlying noise in the forward-looking metrics," he added.
Management expects NDR (net dollar retention) to decline in 2026. Second-quarter revenue guidance implies only modest sequential growth of 1.1%. Compare that to 1.5% in the first quarter and 3.8% in the second quarter of 2025.
Monday.com launched a new seats-plus credits pricing structure designed to align with future customer usage of its AI offerings. These AI products show "solid traction,” Verkhovski wrote. They will likely contribute around 10% of total NNARR of around $70 million in Q1, he added.
DA Davidson: Monday.com ported a "larger than typical" revenue beat, "driven by broad based demand and AI upside," Schreiner said. Management highlighted the company's transition to an AI work platform, resulting in the launch of consumption-based pricing, he added.
The company also acquired voice AI startup OneAI to extend the capabilities of its platform, the analyst stated.
Management guided to second-quarter revenue of $355 million at the midpoint, which was $0.5 million above expectations, implying around $4 million of net new revenue, and raised the 2026 revenue guidance by $13 million to $1.47 billion at the midpoint, he further noted.
Price Action
Shares of Monday.com had declined by 2.47% to $75.01 at the time of publication on Tuesday.
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