MNDY - Why Monday.com Stock Popped Today
Shares of work management software company Monday.com (NASDAQ: MNDY) popped on, well, Monday, after the company reported financial results for the fourth quarter of 2022. Monday.com outperformed expectations and issued guidance that was ahead of expectations. And that's why Monday.com stock was up 11% as of 10:30 a.m. ET.
In Q4, Monday.com generated revenue of $149.9 million, well ahead of its previous guidance of $140 million to $142 million. Of course, investors have come to expect results like these from this company. In fact, last week, D.A. Davidson analyst Robert Simmons lowered his rating for the stock to neutral, according to The Fly. And he did this because, while he was expecting a beat, he didn't expect Monday.com to beat expectations by very much.
Profitability may be why the market is so enthused by Monday.com's financial results. The company uses a lot of adjusted financial metrics, including operating income metrics that aren't according to generally accepted accounting principles ( GAAP ). That said, management guided for a non-GAAP (adjusted) operating loss of up to $22 million in Q4. However, it had non-GAAP operating income of $14.3 million -- its first time ever with positive non-GAAP operating income and well ahead of its guidance.
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Why Monday.com Stock Popped Today