The sell-off followed a financial report where Monday.com projected first-quarter revenue between $338 million and $340 million, falling short of the $343 million anticipated by analysts. Shares dropped to $76.41 in midday trading, marking a staggering 77% decline over the past year. For the full fiscal year, the company expects revenue to land between $1.45 billion and $1.46 billion, representing roughly 18% to 19% growth—a significant deceleration from previous periods.

Strategic Retreat from 2027 Targets

Chief Financial Officer Eliran Glazer confirmed that the company is moving away from its goal of reaching $1.7 billion in annual revenue by the end of 2027. Glazer attributed the shift to "macroeconomic noise" and persistent choppiness in the company’s "no-touch" business segment. He noted that the revised guidance reflects figures the company can execute against with "high confidence" and does not account for a potential rebound in top-of-funnel activity.

The cautious outlook overshadowed a relatively strong fourth quarter. Monday.com reported adjusted earnings of $1.04 per share, surpassing Wall Street’s expectations of 92-cents. However, the company noted that operating margins were pressured by the appreciation of the Israeli shekel against the dollar. With approximately 55% of its workforce based in Israel, the company expects currency fluctuations to remain a headwind through 2026.

Key performance indicators from the latest report include:

• Adjusted earnings of $1.04 per share, beating the 92-cent estimate.
• Quarterly revenue of $333.9 million, up from $278 million a year earlier.
• A net profit of $76.7 million, compared to $23 million in the prior-year period.