Monday.com just became the poster child for Silicon Valley's biggest fear. The work management platform's stock crashed 19% today after issuing guidance that fell short of Wall Street expectations, with the company openly acknowledging it's racing to retrofit its entire product for an AI-native world. The selloff marks the latest casualty in a brutal reckoning across the software sector, where investors are dumping stocks on fears that AI agents could make traditional SaaS platforms obsolete.
Monday.com thought it could outrun the AI disruption storm. Today, the market decided otherwise. The Israel-based work management platform saw its stock collapse 19% after releasing fourth-quarter earnings that beat expectations but came packaged with guidance that spooked investors already on edge about AI's threat to traditional software.
The numbers tell a story of a company caught between two worlds. Monday.com posted Q4 revenue of $333.9 million, up 25% year-over-year and above the $329.6 million analysts expected. Earnings came in at $1.04 per share, beating the 92-cent consensus. But it's what the company said about the future that sent traders running for the exits.
For the current quarter, Monday.com called for revenue between $338 million and $340 million, short of the $343 million FactSet consensus. The full-year outlook of $1.452 billion to $1.462 billion missed estimates of $1.48 billion. But the real gut punch came in operating income guidance, a meager $165 million to $175 million against Wall Street's $220.2 million expectation. That's not a miss, it's a crater.
During the earnings call, co-CEO and co-founder Eran Zinman tried to project confidence while simultaneously admitting the company is in the middle of a massive product overhaul. "We don't see any impact currently from any AI company, and we're shifting our product, regardless, to be more AI native," Zinman told analysts. The contradiction wasn't lost on anyone. If there's no impact, why the urgent pivot?
