Monday.com MNDY shares have gained 10.4% in the trailing six-month period compared with the Zacks Computer & Technology sector’s return of 14.3% and the Zacks Internet - Software industry’s rise of 30.3%.

MNDY shares have also underperformed its industry peer, BILL Holdings BILL which has gained 80.7% over the trailing six-months.

The underperformance can be attributed to macroeconomic pressure and stiff competition from tech giants like Asana ASAN and Atlassian TEAM. These companies are making strong efforts to offer project and work management solutions, including the application of processes, methods, skills, and knowledge to achieve specific objectives.

MNDY Shares Beat Sector, Industry

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Despite the headwinds, MNDY has emerged as a standout performer in the work management software sector. The company is benefiting from strong demand for its work management solutions and expanding enterprise customer growth, positioning it for continued momentum.

Monday.com’s enterprise customer base continues to expand, with a 40% increase in customers generating more than $50,000 in annual recurring revenue (ARR), reaching 2,907 enterprises. Even more impressive is 44% growth in customers with over $100,000 in ARR, now totaling 1,080.

The company also surpassed $1 billion in ARR, marking a major milestone in its growth journey.

MNDY’s Expanding Product Portfolio Aids Growth

Monday.com’s commitment to innovation is evident in its expanding product portfolio. The company’s AI initiatives have shown exceptional adoption, with AI actions increasing more than 250% quarter over quarter. 

This growing emphasis on AI was further highlighted in the third quarter of 2024 when MNDY expanded its portfolio with the launch and rapid adoption of monday AI. 

The platform introduced no-code AI building blocks, allowing customers to tailor solutions for their specific business needs. This feature has seen significant adoption, with the use of these AI blocks increasing 150% sequentially, reflecting the platform’s growing appeal and strong customer engagement.

The introduction of mondayDB 2.0, designed for scalability, is another key highlight. The new version allows boards with up to 100,000 items and dashboards with up to 0.5 million items, enhancing the platform’s capacity to serve larger and more complex enterprises.

The company continued to enhance monday CRM, its second-largest product. The vision for monday CRM goes beyond sales, aiming to foster collaboration across various revenue teams. Upcoming features, such as email marketing functionality, will allow teams to manage campaigns directly within the CRM, streamlining workflows and adding value to users.

MNDY Earnings Estimates Show Mixed Trend

The Zacks Consensus Estimate for 2025 revenues is pegged at $1.20 billion, indicating year-over-year growth of 24.36%.

The consensus mark for 2025 earnings is pegged at $3.47 per share,which have decreased to 2.8% over the past 30 days. This figure implies a year-over-year increase of 8.66%.

monday.com Ltd. Price and Consensus

MNDY Faces Tough Competition From Tech Giants

Monday.com, known for its robust work operating system, has been striving to expand its portfolio and maintain a strong customer base. However, intense competition and macroeconomic challenges have impacted its top-line growth, making it harder for the platform to keep up with others in the space.

In this highly competitive market, platforms like Asana and Atlassian’s Jira offer specialized strengths that impact Monday.com’s position.

In this competitive landscape, Asana stands out for its user-friendly interface and powerful task management and collaboration tools, making it a top choice for teams looking to streamline workflows. Its simplicity has attracted a wide range of users. 

Asana competes directly with Monday.com, which also offers intuitive and customizable project management, positioning both as strong contenders in the space. ASAN’s shares have returned 43% over the trailing six months, outperforming MNDY.

Atlassian’s Jira is renowned for its comprehensive features that are tailored specifically for software development teams. It provides tools for issue tracking, agile project management, and seamless integration with other development tools, making it the go-to choice for technical teams requiring specialized features. TEAM shares have returned 55.8% over the trailing six months, outperforming MNDY.

What Should Investors Do With MNDY Stock?

We point out that MNDY stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.

In terms of the forward 12-month Price/Sales, MNDY is trading at 10.02X, higher than the industry’s 3.07X.

Price/Sales (F12M)

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Monday.com currently carries a Zacks Rank #4 (Sell), which implies that investors should stay away from investing in this stock at present. 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Atlassian Corporation PLC (TEAM) : Free Stock Analysis Report

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