Investing.com -- Monday.com shares fell sharply after the software firm’s fourth-quarter guidance came in below expectations, overshadowing stronger-than-forecast third-quarter results.

The stock was down around 19% in premarket trading Monday as of 07:10 ET.

The company posted third-quarter earnings of $1.16 per share, topping analysts’ estimates of $0.88. Revenue rose to $316.9 million, also ahead of the consensus forecast of $312.3 million.

Non-GAAP operating income reached $47.5 million, with an operating margin of 15%.

“This quarter’s results reflect the strength of our execution and the continued success of our strategy to move upmarket while expanding our product suite,” said monday.com co-founders and co-CEOs Roy Mann and Eran Zinman.

“We delivered our highest-ever non-GAAP operating profit this quarter, underscoring our focus on efficient, profitable growth,” said Eliran Glazer, monday.com CFO

For the fourth quarter, monday.com projected revenue between $328 million and $330 million, short of market expectations of $333.8 million. It forecast non-GAAP operating income of $36 million to $38 million, implying a margin of 11% to 12%.

For the full-year 2025, the company forecasts $1.23 billion in revenue, matching consensus. Non-GAAP operating income is expected to range from $167 million to $169 million, with an operating margin near 14%.

The company also guided for adjusted free cash flow of $330 million to $334 million, representing an estimated 27% margin.