Monday.com Earnings: Enterprise Momentum and Pricing Upside Propel the Firm Forward

We raise our fair value estimate for no-moat Monday.com to $240 from $230 per share following the release of strong third-quarter results that surpassed our above-guidance revenue and profitability estimates. Despite strong results, shares declined 15% during the day. We believe this is largely valuation-driven, as shares were trading at a 40% premium to our fair value heading into earnings, implying market expectations above even the company's solid results. Even after raising our fair value estimate and after the decline in the share price, we still view shares as moderately overvalued, at roughly a 15% premium to our updated fair value estimate.