Monday.com (NASDAQ: MNDY) said it expects lower-than-anticipated operating income and revenue growth in the coming periods, sending its shares down more than 21% on Monday.

The project management software company reported fourth-quarter adjusted earnings of $1.04 per share, exceeding the 92 cents expected by analysts surveyed by LSEG. Revenue for the quarter rose 25% year over year to $333.9 million, topping the $329.6 million consensus estimate.

Despite the earnings beat, the company issued guidance that fell short of market expectations. Monday.com forecast full-year operating income between $165 million and $175 million, compared with a FactSet consensus estimate of $220.2 million. For the current quarter, the company projected revenue of $338 million to $340 million, below the $343 million expected by analysts. Full-year revenue was guided to a range of $1.452 billion to $1.462 billion, versus a FactSet estimate of $1.48 billion.

During an earnings call, co-chief executive officer and co-founder Eran Zinman said the company is not currently seeing a direct impact from artificial intelligence-focused competitors. He added that Monday.com is shifting its product development, marketing, and messaging to emphasize artificial intelligence capabilities, including the introduction of AI-driven agents and a “vibe” feature aimed at improving customer engagement and conversion.

Management also said it expects continued volatility during the year, citing near-term margin pressure related to foreign exchange movements.

The guidance came amid a broader selloff in software stocks, as investors weigh concerns that emerging agentic AI tools could disrupt traditional software business models. The iShares Expanded Tech-Software Sector ETF has declined about 22% so far this year. Shares of Monday.com have fallen roughly 50% over the same period.

About Monday.com

Monday.com (NASDAQ: MNDY) was founded in 2012 and is headquartered in Tel Aviv, Israel. The company provides a cloud-based work management platform that enables organizations to plan, track, and manage projects, workflows, and team collaboration across a range of industries.