In a recent financial revelation, Monday.com (MNDY) unveiled third-quarter earnings and revenue that exceeded initial estimates, causing a noteworthy upswing in the software company’s stock. The report, released before the market opening on Monday, disclosed that, for the quarter concluding on September 30, the project management software provider reported a profit of 64 cents per share on an adjusted basis. Significantly, there was a substantial 38% surge in revenue, reaching a total of $189.2 million.

Analysts’ projections fell short as Monday.com outperformed predictions, with an adjusted profit of 21 cents and revenue reaching $182.4 million according to their estimates. In contrast, during the corresponding period of the previous year, Monday.com disclosed earnings of 5 cents per share, with total revenue amounting to $136.9 million.

Looking ahead to the current quarter ending in December, Monday.com anticipates revenue to reach $197 million, surpassing the estimated $195 million.

William Blair analyst Arjun Bhatia commented on the company’s performance, stating, “While the company continues to see seat-based expansion headwinds due to macro and budget pressures, trends generally appear to be stabilizing—not getting better yet but also not getting worse.” Bhatia reassured stakeholders by addressing concerns related to the impact of the conflict in Israel, highlighting that Monday.com has encountered minimal disruption to its operations.

In response to the positive financial report, MNDY stock experienced a notable surge of 10.1%, reaching $154.28 in afternoon trades. Before the release of the earnings report, Monday.com stock had already seen a 15% increase in the year 2023.

With a Relative Strength Rating of 86 out of a possible 99, according to IBD Stock Check-up, MNDY stock showcases robust market performance.

Competing with industry counterparts like Asana (ASAN), Smartsheet (SMAR), Atlassian (TEAM), Adobe Systems (ADBE), and Microsoft (MSFT), Monday.com continues to assert its position in the software market. Founded in 2012, the company achieved a successful fundraising milestone of $574 million during its initial public offering in June 2021, with the initial pricing of MNDY stock set at $155.