Monday.com Founders Face Crucial Test Amid AI Shift and Financial Report

Monday.com founders Roy Man and Eran Zinman are under intense scrutiny following controversy over their doubled compensation packages and recent layoffs of 20% of the workforce. This week, the company will release its Q2 financial results, marking a critical moment for Man and Zinman to prove whether Monday.com can leverage AI as a competitive advantage or risk failing amid the software market transformation.

Despite early resistance to acknowledging AI's impact on organizational software, the founders began recognizing the challenge only in early 2026. Since late 2024, Monday.com's stock has plummeted 62%, with its market value dropping to $4 billion, nearly half its 2021 IPO valuation. The company initially planned to expand its workforce by up to 15% in 2026 but reversed course, firing 620 employees, nearly all hired in 2025.

Monday.com also withdrew its optimistic 2027 revenue forecast of $1.8 billion just months after announcing it. The chaotic management and timing of the new compensation packages, approved by shareholders despite the layoffs, have raised questions about leadership. The founders’ pay is largely equity-based, meaning their earnings depend on stock performance.

The upcoming financial report will be a decisive test. Monday.com expects $355 million in Q2 revenue, with no growth from the previous quarter, and projects $1.46 billion for the full year, reflecting 20% growth. Competitors’ mixed results highlight that AI’s impact varies, rewarding companies that adapt effectively. Investors will closely watch if Monday.com can demonstrate growth or provide an optimistic outlook; failure to do so could trigger a sharp stock decline.

Man and Zinman, once praised for growing Monday.com from a startup dismissed as "Excel with colors" to a $1.2 billion revenue company in 2025, now face the challenge of steering a public company through a disruptive era. With 2,500 employees and thousands of customers, the stakes are higher than ever, and the founders must prove their ability to navigate the AI revolution to justify their substantial compensation and secure the company’s future.