Shares of Monday.com (MNDY -0.31%) were sliding today after the cloud software company topped estimates in its fourth-quarter earnings report, but offered disappointing guidance for the first quarter in part due to weakness in its "self-serve" segment.
Monday, which provides customer relationship management (CRM) and project management software for businesses, is one of many software-as-a-service (SaaS) stocks under pressure from AI innovations like Anthropic's Claude Code that could disrupt workflow-related software.
As of noon, Monday.com stock was down 22.4% on the news.
Image source: Getty Images.
Monday.com gets a case of the Mondays
Revenue in the fourth quarter rose 25% to $333.9 million, which topped estimates at $329.7 million.
The company also posted record net adds of customers with more than $100,000 in annual recurring revenue and said Monday Vibe, its AI-powered vibe-coding tool which uses prompts instead of code, is the fastest product to top $1 million in annual recurring revenue (ARR) in its history.
Adjusted earnings per share slipped from $1.08 to $1.04 as spending ramped up on research and development, but still beat the consensus at $0.92. Co-CEOs Roy Mann and Eran Zinman touted the company's "expanding our product portfolio and seeing strong adoption of AI products," as well as its progress with larger customers.
MNDY Monday.com
NASDAQ · As of 4:00 PM ET 10/23/26
Guidance was a red flag
Monday.com needed to give investors strong guidance to reassure them after the AI-driven sell-off, and it didn't do that.
For the first quarter, it called for revenue growth to slow to 20%, to $338 million-$340 million, below the consensus of $342.9 million.
Its full-year guidance also disappointed, calling for revenue of $1.452 billion-$1.462 billion, up 18%-19%, also below the consensus at $1.48 billion.
The weak guidance reflected challenges with lower-end customer acquisition, which could be related to new AI competition.
Monday.com is now down 70% over the last year, but given the narrative in the software sector, a turnaround will require the company to convince investors that its business model won't be disrupted by AI. For now, that doesn't look easy.
