monday.com Gears Up to Report Q3 Results: What's in the Cards?

monday.com (MNDY) is scheduled to report Q3 2025 results on November 10, with revenue guidance between $311 million and $313 million, indicating 24-25% year-over-year growth, and a consensus EPS of $0.89. Key growth drivers are expected to include the rapid expansion of its CRM business, which recently surpassed $100 million in ARR, strong cross-sell momentum across its product suite, and the introduction of new AI-powered features like monday magic. Operational efficiency, reflected by a 15% non-GAAP operating margin in Q2, is also anticipated to support performance, though a slowdown in search-generated demand due to Google's algorithm changes poses a potential headwind for lead volumes.

Analysis

monday.com (MNDY) is poised to report Q3 2025 results, with management forecasting revenues between $311 million and $313 million, indicating robust 24-25% year-over-year growth. This guidance aligns closely with the Zacks Consensus Estimate of $312.02 million for revenue and $0.89 for EPS, the latter suggesting 4.71% YoY growth. Notably, MNDY has consistently outperformed EPS estimates in the trailing four quarters, delivering an average positive surprise of 41.18%.

Anticipated growth drivers include the rapid expansion of MNDY's CRM business, which recently achieved a significant milestone of $100 million in annual recurring revenue within three years of launch. Strategic cross-sell momentum across its CRM, Dev, and Service products is expected to have fostered multi-product adoption and deeper customer engagement. Furthermore, the introduction of advanced AI capabilities such as monday magic, monday vibe, and monday sidekick is positioned to enhance user engagement and drive sustained revenue growth through a transition to work execution.

Operational efficiency remains a key strength, evidenced by a 15% non-GAAP operating margin in Q2, reflecting effective cost control and resilient business growth. However, a significant headwind identified is a slowdown in search-generated demand, specifically a decline in SMB and mid-market lead volumes, attributed to Google's AI-related changes and search algorithm updates that have impacted visibility and traffic flow.

Key Decisions for Investors

• Investors should closely monitor MNDY's Q3 revenue and EPS performance against consensus estimates, particularly given its history of positive earnings surprises.
• Evaluate the company's commentary on the continued growth trajectory of its CRM segment and the tangible impact of new AI-powered features on user engagement and customer retention.
• Assess management's outlook and mitigation strategies regarding the ongoing challenges posed by Google's search algorithm changes on lead generation and overall demand.