monday.com (MNDY) 15 May 232023 Q1 Earnings call transcript

Company Profile

Participants

Byron Stephen	Head of Investor Relations
Roy Mann	Co-Founder and Co-Chief Executive Officer
Eran Zinman	Co-Founder and Co-Chief Executive Officer
Eliran Glazer	Chief Financial Officer
Kash Rangan	Goldman Sachs
Noah Herman	JP Morgan
Jackson Ader	SVB MoffettNathanson
Arjun Bhatia	William Blair
Brent Bracelin	Piper Sandler
Steven Enders	Citigroup
Devin Au	KeyBanc Capital Markets
Brent Thill	Jefferies
Scott Berg	Needham & Company
George Iwanyc	Oppenheimer & Co.
Derrick Wood	TD Cowen
David Hynes	Canaccord Genuity
Andrew DeGasperi	Berenberg Research
Shebly Seyrafi	FBN Securities
Robert Simmons	D.A. Davidson

Call transcript

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Operator

Good day. My name is John Louis and I will be your conference operator today. At this time, I would like to welcome everyone to monday.com's First Quarter Fiscal Year 2023 Earnings Conference Call. I would like to turn the call over to monday.com's Director of Investor Relations, Mr. Byron Stephen. ahead. go Please

Byron Stephen

thank call And quarter joining on us year Hello, discuss you financial conference to first results today's XXXX. everyone. for for fiscal monday.com's

monday.com, and Joining Zinman, Roy today Glazer, Mann me co-CEOs CFO. are of and Eliran monday.com's Eran

the results quarter earlier We for today. released first our

You can at section Events along of IR website shareholder quarterly with and presentation, & investor find the of replay News our ir.monday.com. a today's letter our webcast under our

reflect will differ statements involve judgment for management's Please that made release may more earnings which cause on to forward-looking Certain expectations. results available risks statements statements. from to from results differ factors that best could actual today on These be information materially forward-looking currently call uncertainties the cause our on based actual our specific to refer our statements, the information. and the

will earnings the directly in non-GAAP discussed website. the and comparable Additionally, today's our posted Investor financial Relations on Reconciliations most the measures GAAP be measures are available call, which presentation to release the are financial on for earnings call.

Roy. turn to call over let me Now, the

Roy Mann

Thank year you, are XXXX, you Byron. with going to us for QX the fiscal an happy kept that momentum of say we we strong a exceptional And today. After XXXX. joining in thank fiscal everyone year

third year-over-year. in goal in meeting free our for uncertainties cash XX% of are the year. increase positive the results. seeing persistent continue to totaled We cash positioned profitability straight generated we well record and million, invest macroenvironment, an the are in quarter a $XX.X Despite million the and we during free and of QX the scale, in our at growth flow flow $XXX.X revenue

walk positive profit through that our are in will guiding now detail. fiscal XXXX, ahead more guidance Eliran of non-GAAP pleased to year we are Additionally, years two we you operating expectations. for report to

strong. to Customers exceptionally acquisition continued be

quarterly net segment customers, growing a new where of remains we X,XXX enterprise to the marking customers record by fastest XX% number customers. enterprise customer Our grew

Customers sales has our the as traditional monday to more love it's strong adoption feedback than CRM fast been easy impressive and customer CRM use of tools. CRM and Equally product. monday sales customers

we been the sales QX, accelerated representing opened Total existing monday CRM CRM has CRM to And of response customer sales our a to a base. tremendous. X,XXX quarterly In account selection number our accounts. record net new sales accounts, of

recent and We the XXXX business this for and goals are accomplishments year and positioned are believe quarter, incredibly about to beyond. deliver pleased product well we our all fiscal

our turn now me over of to efforts. innovation Eran some it Let you recent to through walk

Eran Zinman

Thank you, Roy.

announce OS internal to AI proprietary our our of we've for plans our verticals. over our started increasing efficiency, the efficiency, business excited of we're harnessing in strategy and our the The own into users power quarter, future, increasing Work spanning XXX components already incorporating includes This implementing. different AI data, monday.com platform, key which

efficiency, month, features This users. email features live, increase with experience greatly such is the as will all first salaries, which general generation, version the of task and going document monday composition, speed our Assistant of automated and AI

developers to party monday AI infrastructure. Assistant and monday.com These AI OS, collaboration be are In Work build will increasing third our June, innovation. on on our opening apps we available apps to platform the speedy

through layer customer experience are monday.com to our adding to operations, using tool, of we BigBrain. data enhance automating AI intelligence operations on too, business Internally our focusing parts sales inhouse the our including our and AI, an

can and within optimal driven of significantly speed development harness data work future maintain data flows the product monday.com's the we processes. to automations up most plan as improve and customers ways our the to initiatives. connect the navigate right further well people adoption as set to right companies Finally, best to and help This enhance

first phase also This to we're off the delighted mondayDB. kick quarter, of

infrastructure data overall for released As bigger a new mondayDB developer multiple performance. reminder, and larger performance Work in robust and is the a OS to expected boost each over more capabilities scale. platform, workflows, and phases improved dashboards, enabling monday next with mondayDB year, phase being boards is brand the

of focused phase is on monday mondayDB Boards. first The

a accounts, Now roll of to large available more allowing performance a complex mondayDB on ever. boards X.X and boards. to is XX% of already than on effect customers of big items X.X workflows loads bigger, with within work complex matter having MondayDB especially times, thousands seconds, board and with

end to all We QX. expect X.X to be mondayDB the of customers out rolled by

In innovation in make accelerating efforts, our our marketplace. in to our addition strides we apps to efforts continue building

joined new for quickly apps Unlimited has The become accelerator collaboration introducing favorite. Adaptavist supercharging and focused provider, customer enterprise the us app project. Adaptavist's on an Subitems, which event a app quarter, first app, Group, potential This several monday.com

a such AppFire, app large our and next allow to will and build provider level. us strong with as Working a marketplace the enterprise Adaptavist, take to foundation

With turn we that, let it to over back Roy.

Roy Mann

Eran. you, Thank

taking World are team We emergency of mention the continue progress response social our to honorable efforts an received notice. and corporate responsibility ESG category make recently Fast leading for in platforms Company's for monday.com's publications power on use community initiatives help honors the XXXX and Changing to list or advance world at the List. prestigious that change, companies' large. This Ideas either internally

without ESG this initiatives, more To amazing our of None been published quarter report. see and achievements would XXXX our emergency possible read team. have monday.com of response our our please team's about ESG all effort recent our

overall in headquarters people the invest employees. quarter APAC with X,XXX Sydney our to increased to in continue recent opening of We headcount new and in our the

for and to We their XXXX. employees strong fiscal are the contribution to all their start to grateful hard our work

financials and to With that, I'll now cover over Eliran turn guidance. it our to

Eliran Glazer

call. And XX% results our Total guidance. from year strong. XXXX and X detail Roy. We started the I'll QX fiscal in million, $XXX in thank quarter. exceptionally in quarter for came first provide the up joining review everyone our updated you, revenue at Today, you year-ago Thank to

grew Excluding the of XX% exchange, foreign impact year-over-year. revenue

macroeconomic amid our dollar in QX, rate environment. challenging net seat enterprise reflecting the overall expected, customer As retention slightly declined slower expansion

year on expect to moderate XXXX. fiscal continue We NDR throughout pressure

weighted trailing As a is four quarter calculation. reminder, our NDR average a

the remainder noted, otherwise metrics referencing For be I financial non-GAAP of our measures. unless financial disclosed, the will

have provided financials We reconciliation release. to earnings our GAAP a of non-GAAP in

term, plan platform XX%. high margin the continue our line XXXX. with $XX.X medium in in and as to In range. was investing to significantly XX% out gross gross First scale in margin fiscal we in million QX expect suite to We OS product build was XXs expense vertically. to R&D or revenue year and long development our quarter Research of XXXX Work both the and horizontally remain we continue

QX G&A and XX% XX% of revenue million was $XX.X XX% compared QX XXX% was Sales of XXXX. or expense $XXX.X in marketing compared to XXXX. in expense million or to revenue

a was from million in diluted million, QX $X.XX, $X.X loss per of XX.X outstanding. up was income on $XX.X Diluted XXXX. shares fully income based million net Net share

employee on and X,XXX, we XXXX. team employees suite. an total mentioned, the our our WE As product and continue hiring to with was increase XX as build Roy since R&D XXXX of expect focus throughout product headcount platform QX out fiscal

quarter million cash XXXX. Moving up on cash to the million equivalents, from balance the and ended at end $XXX.X sheet with and We $XXX.X QX cash in the flow. of

margin free XXXX. achieve $XX.X free basis We defined in quarterly Free free consistent million cash flow now third of cash flow as fiscal to QX cash and was as percentage flow for report of expect cash XX%. and being as positive free moving forward cash to positive on revenue our a flow consecutive was a flow year

flow is activities capitalized cash cash defined costs. from and equipment for used less property operating cash Free net software and as

Now to let's updated outlook fiscal for turn XXXX. our year

growth quarter representing the $XXX range XX$ of second million million, year-over-year. XXXX, the revenue XX% of For to of fiscal to expect $XXX we our year be in to

operating an We million expect of X%. income to of non-GAAP $X operating and to margin million X% $X

For XX% $XXX the to year-over-year. in of we revenue year range $XXX the to expect million representing full million, to XX% growth XXXX, now be of

of an non-GAAP operating folio income $XX of $X expect margin to X%. and operating million We approximately million

I'll to operator for now turn over it your question. the

Operator

[Operator Instructions].

Rangan of question comes Your Sachs. Goldman of from line the first Kash

Kash Rangan

always you to of organization? platform? you between the versus it good individual applications results application And Congratulations on foresee fantastic a where you for Question third top the at applications do build persona, does other have on research What look the see the Monday. based monday the if monday of and results. leaving these on right coming the you to monday's line down is, parties development on packaging you CRM to draw now. It's do what

Roy Mann

That's a of taking are capabilities the question growth. we the of great our platform where forward towards

focus on management. is beta, project that's on core year now also we this CRM product is the really our dev at, is great We're And we're and So, Like, of is momentum doubling good well amazingly pushing there. on work to and which what we're and have. out that strategy doing the that. down

is across for to monday where the are going will within company going we we're we're forward, going it specific product we're know vertical it building take. and down are very where to meaning highly – not fail teams to longtail. out going be is areas, taking And to which differentiated looking we're this something product when focus the into not, the best-in-class. we're that leave it's that Going each And areas the exactly into seeing specific and customers and where organization, we as like on community the into

Kash Rangan

and is expand AI on strategy it generative taking guys monday your AI generative the you you large model? product platform? And kind of? the future capabilities models If advantage what what are on own of Is can for language the

Roy Mann

we AI, that think about capabilities think different that briefly and mentioned added so about we aspects. One the our we already intro, in into When product. are we

monday the So within it's do creating using you AI, generating generating a content, with lot can can meaning tasks. that now documents whether automated the platform, things of be

can that So be AI. using all done

is aspect for to work another make Also, platform the you.

formula, with further we things code, presumed enable AI to are So, all low automate automations, to those that. be that also

one So aspect. that's

efficient, making optimizing on. company processes, second our success, own The so is and more customer aspect sales

that, to the and efficiency. company term, has So improve in improve I margins long the potential the think

term, monday unique think very a long has But if I about dataset.

think have customers to and they the all we time, use with platform. different so across If monday customers so of how it, over And ways in monday And generate work many you verticals. how many leverage ways. about we

that want about going that the unique explore to are to So for more platform platform dataset. it's allow new really opportunities generate to And adding we're customers or different forward, work. the through ways to thinking them capabilities

be a as think changer that's game I for big us to a company. going So

ourselves, teach but use of vendors terms using didn't In specific. vendors, AI we're different capabilities We data unique and set. AI themselves vendors, using the build multiple our not the we one

Operator

J.P. next from Bora line the comes Pinjalim Your Morgan. question of of

Noah Herman

to on provide color great wanted quarter. around follow-up. about the for on upgrade. infrastructure it out? Pinjalim. just Could more has have feedback bit rolling a I a Noah context also what maybe I some And is This would as to just helpful. And since be that touch a customer you little been any Congrats mondayDB just the really quick

Eran Zinman

already progress the that's to open with mondayDB. excited very speaking, We're from for and load positive. the are our that we're are positive, The It's that, with especially our present, users. customers of for At would Eran. dramatically larger of times say terms and reactions in mondayDB the who I new customers them, high have boards for XX%. the improved that their experience, over releasing is super This large user schedule content, generally now open to super boards. reactions

by you, year, we're improvements. further to this is X.X. this Our QX. additional is our release releasing X.X, throughout going just to remind is to by again, end of the ahead year. to And version, release with just plan. plans of of customers, Further, mondayDB version thought the of We all But initially the further the going version about end first this forward

of happening. lot there's of things overall, so But, forward. And a far. gradual are going very happy that So release with exciting will the positive. super are a things lot Reactions happen

Noah Herman

what levers on quick to a the follow-up, some you're of drive strong for the Just are guidance pulling margins?

Eliran Glazer

It's what more beat we're on $X looking revenue drove side. did When guidance, at was we the the Eliran. million

of we improved less side, due the expenses well to we had the anticipated. cost, as operating expensive marketing On consultants $X expenses than as less million

had we additional operating savings OpEx headcount. like In addition, expenses, some across multiple

slightly. that [indiscernible]. below we Travel operating are other expenses were fact, In plan and we

we are And guidance, account when that into latest look always seeing. into the taking we we're trends

at going the conditions to moderate to continue currently obviously, apply NDR. on are we challenging So, is pressure that some probably looking macroeconomic

XX at So XXX% plus XXK. for XXX% we're overall and population around for users NDR all around and looking XXX% to

strengthened a we're this, growth drive also we're that future. and seeing the top will slope of further demand While seeing funnel into customer consistent

also the is looking of and obviously, [indiscernible] the CRM generation that So business. overall with we is cash good. contribute development efficiency to in this will And, something anticipate growth

the So we of into account all year. we took the this when guidance did for

Operator

Your Ader the question of next from comes Jackson of line SVB.

Jackson Ader

competitors. what about from the on continued I to has change recede that of – in top in seen that's had think that deals allowed you to can competitive start is, the win growth, at you the other more Like, their we've competitors, Is things one the on some legacy investments? first if the rank maybe story the causing there The think it outperformance same order line? a you to been environment are

Eran Zinman

we broad, one Also, This that is to you, pinpoint it's think say specific non-tech. customers are so XX% can the Eran. I our I But remind sector. are factor. don't fact of is XX% specific just monday offering exposed would to not tech. one Only

customer have very base. we think our I stability high in

Also, everybody's Because there's what's for I higher demand demand. of on a And putting than we've even economy, the that very happening that. bullish, of have solution, strong kind ever been a marketing. joining And effort really are think are We continue to before. and into the is see down right lot we searching very quality still us before. in doubled customers more now given of than

think combined of So a invest. great things those environment opportunity I creates to us we'll a and all company, continue as for

the and acquire with and product dev think innovation product help ones. also and customers now continued success with our new we've the really scaling I CRM in seen

Eliran Glazer

is This Eliran.

we to see at returns, look others ability on brand our prior campaign as actually every Eran what back, and our down quarters, Just said, in the the we mentioned BigBrain to double actually investment. pull and while

with believe versus we our to continue with providing this us returns, playbook this we we something good And we When of differentiation is monday. competition. continue is So invest. see

Jackson Ader

follow up own I'm you of how their the the curious I focusing core in The product actually guys about that on and vertical-specific applications, develop party letting more guess, When going conceptual. talk deep vertical, works. kind is, third the like

develop then having So And on your out maybe guys to really I to your on two work what so industry-specific maybe stuff you and subject over on, this product from roadmap goes then, like, gets don't or top plan vertical? a kind how curious happens of if maybe out just capabilities of specific are will I'm didn't you deep somebody know, of – years maintain – skis. now. that that

Roy Mann

a open because is platform, need. a an Roy. question. It's great whatever true Actually can everyone That's they monday a one, platform develop and

So capabilities can to up we're that they also vertical. whatever develop all hit wall open, And they never builders them. their own the missing why it want for build, because for it's that's opening

us. essentially, never it's So to limit going

also do will very a it of on we should developers is capabilities ones ourselves own take that What those feedback wide that provide we we lot same are where are our product. the platform. And the offer developing

completely So we with ecosystem. our aligned are

just into that And speed anyway. would one longtail in roadmap so, it's like, go we helps those us up probably not and,

Operator

next Blair. Your of comes Arjun from William question Bhatia the of line

Arjun Bhatia

in least you vendor out, going. how roll do market hear at with than other What other doing the on Maybe those I seems increase those back you've the two are seeing that that circle like that something three introduced customer just Looks It your product you for to those And and I would the think love Is last more or CRM wanted are is as there's like ones customers? progress solutions. consolidation solutions? doubled quarter. to are can since does what at as well. on market? really base get the product to that

Eran Zinman

is this Arjun, Eran.

dev As of is lot so is that momentum. we actually CRM mentioned a of out Also, during it's just going beta. product well. the the really call, announced We gaining

of in is customers. seen this another of about. terms very great product Already momentum excited good we're signs So very acquiring

butter category. management. of we that, to on It's broader is of down to this We'll bread management, monday. features double a project capabilities. continue the work adding actually Again, and that kind renamed more and The

of marketing, in that. work going that to it's we're kind horizontal, And management. terms management products plan of large more much actually as vertical release like more consolidating into the And forward, a of we of work

to strategy how at signs whether product. the products capabilities, features of purchase we having or adding and with cross look products we've of already and And being the when to it's pleased upfront will into sell going. customers multiple initial those overall the after and one we're very products them, seen deep platform it's ability more So, overall, the sold and packaging our now, progress of

model. baked there's going think I our lot forward, So a of into upside

Arjun Bhatia

would I that the coming is you're One to love that side? seeing for new bit new color the coming where customer customer displacements? of are you would be NRR Eliran. be Any to expansion noticed those commentary traction is helpful. customers the that color, of Does going on there to that more. fair be little Is lot hear the if segments? Are case, from. a new it some pressured tend say And seeing some into a that's to

Eliran Glazer

in we see Larger regard believe NDR, budget, the become end we QX customers we continue what to general, you expansion cautious happened as persist of compared and With in slowdown to think their in of and last this to said, to more going ago. sales year about well. of if by with QX especially it's as have year, year

On customer been the that we has NDR offset positive strong decline side, acquisition. the believe by

very some retention going we say healthy other cases, So expansion seeing the use recovery with funnel and believe, that that into top to as day to CRM on has it's fact landing accounts, something going enterprise more much is customers expansion to slower. a we market This also going probably we're from one, be remained of so bit that with we is front. part bring, activity the of that very are by. next And growth year, stable. It's actually are a important encouraged up larger in

Arjun Bhatia

quarter, strong the on guys. Congrats

Operator

of question the line comes Brent next from Your Bracelin.

Brent Bracelin

challenging up here new the base? higher the Is and shift to I about the mix strength back here despite here is a environment. it a optimism to What's the impressive for lands? in But driving here. the of larger wanted outlook you Maybe for we're year? moderating get Are guide demand picture full guys CRM go quarter and here pricing. demand I for June in really cross the selling NDR. Clearly, excited tier installed and the you to

caveat through challenges near driving you your us of the optimism, term walk face. with Just what's the

Eliran Glazer

Work Eliran. suite, is all customer around of seeing platform strong This basically product our and demand customer segments. We're OS

unique. having fact we the with XX% again, this board, It's is is our the cases mind So customers something that that have. out that use the also us can And we are across that not call of provides multiple non-tech some in strength.

the as hand, but we see the a this is challenging we On said, to enterprise continue to mostly other seat customer related macroenvironment. slow expansion,

However, enterprise of is see the customers quarter. that biggest. came new number if quarter about where you strength, This the we is this net think the largest the in

I subscribers, are than think think were if XXX almost about of this the annual the XX% year a structure XX% more quarter. customers versus added our ago. of you And contracts now

an So, the which subscribers, of and profile, think we – kind upfront. became pay about if more of our you

all mentioned believe year QX I of that the together is earlier, the additional we view positive for and are with as add-ons with fiscal adding, functionalities XXXX. the mondayDB, rest these So of and some things, providing us

Brent Bracelin

us on for cash Clearly follow-up for to broad-based just Sounds Last positive on is quarter strength. like profitability surprised the pretty a guiding me question flow, here year. full this profitability.

What with do efficiencies that suggests cash. $XXX you're internally. have improving not commentary do over done all million You you The in cash?

Eliran Glazer

question. $XXX million million dollar actually, it's a – a It's

to are growth, into Priority to the obviously, growing we invest organic reinvest company. trying is, So, what going the one to business. is are do we number in continue

lot of a a and [indiscernible] the further. company. is build global operations, expanding market share reach a the platform, obviously product, initiatives, to the very the innovative We have monday

also term XXXX, to not this something So thinking longer about would love continue, we XXXX only in on is beyond. and the but

thinking about potentially, not as an we're also obviously, small term. can the It growth organic this more also an potentially more or is are We're is be becoming the we which that non-organic roadmap. be or is tuck-in something term, thinking And for is when then strategic. opportunities opportunistic be can on our about there to growth. going – market now normal, longer acquisition, to product enhance But But going well as M&A. escalate shorter

Operator

Your of Steve next the of Citigroup. question comes Enders line from

Steven Enders

the the feedback you there CRM functionality there? using into Or to now primarily customer want converting from coming for been kind cases monday may use it's already of is just CRM-like ask the and seeing that on back Are level customers that? customer new be some sold I from pushed like platform base? of of over CRM who net some

Roy Mann

is Roy. we CRM flexibility in see customers product seeing seeing And a ones, business. customers But tail for need well to And that for really of an more and both. long find positioned also It's from the from the of form area are us they maturing can coming A the nothing lot there. We're ones. in their the they maturing Monday that CRM CRM. are rigid operate then digitization. literally they're where huge existing the smaller We're space they really

the So us CRM it really door other of lot as opportunities different we're and within opens large exciting a really used scenarios wide, as very widely a is seeing in both customers. for market really it's for

Steven Enders

where cost of in out kind guess, think the past the we seeing of has the we change at quarter maybe per like add That's and of out back any world, last been there. this year? we are there how kind time? environment in about in the versus helpful you're outlook the terms competitive in in context of what on the seeing there should marketing were I half there And

Roy Mann

It's Roy.

not anymore. would say very say, was we're a puts dropping in us cost gaining year. that media place. good compared per to, than year in last still a ago, it And share to is But market a And think compared let's I way ago. quarter stabilizes I So cheaper the now still seeing it it's we're still add still

for customers Eran moderate a as nice So are costs mentioned if are now are and to good. we're there. for the gaining good And it's very very a really for in really to that like us, them not space. It's it's – are looking looking for them. they're really their have the like solutions. it's well, put And ones before, a They that one money also

So they're a better we have ago. seen on like year than would customers average like

Operator

line Celino KeyBanc Capital Your next the Jason of question Of comes from Markets.

Devin Au

to seeing on in Or for click more marketplace Devin execution is out monday enterprise Maybe strong you one are For Want a add This on is of acceleration Jason example, to just more double Wanted net of drove opportunities the customer just us. the have ask, because just today. products? attributed Great. really devs it beta. from you to nice XXX, there acceleration? team the that the the strong there. go-to-market

Eran Zinman

This I or don't is dev. monday it's Eran. think related to specifically CRM

about tier. the it's and in our momentum and continued team. think I keep adding and team capabilities. our partners scaling features investment sales Keep We our more enterprise

I of So continue that part result that's invest investment. we'll and the think of And accelerate to our business. the

on we the down think focus years. few to And a been I for that's So kind as company double has last continue of that. our

Operator

of question Jefferies. next of from comes Your Thill the line Brent

Brent Thill

could on you're process of the Just out double help out go-to-market doing build market. the ultimately, continue what to if enterprise penetration that you click to strength, and

Eran Zinman

This is Eran.

pretty So continued I I said think it's demand. about what much

bigger trend also we our enterprise ability accelerate mondayDB are customers initial meaning customers will think And and bigger, our is seats. just acquire a see where buying licenses we help also customers, that enterprise but see upfront that we not scale to definitely to see them. land I to something deals,

But, Maybe seen. – a NDR. this security, to little quarter another permissions. bunch features a from We that a on very that's overall, pressure develop around continue admin, we that we've features. putting bit of positive very lot mondayDB, think of we've a I good again, trend released of And lot just apart of a seen. trend

investment that all enterprise think really drives the I So growth.

Brent Thill

Just back real your the but the raised that you year, you more assumptions than by roughly I million, your double guidance in beat $X QX beat. of in quick, think terms half of

back of that and that you your your on into level half confidence high. speak factors visibility account you're your taking to guide? So was the the just Can pretty it seems

Eliran Glazer

we It's going the had the the QX, impact of fact year. that Eliran. Overall, basically took account into a it's we so strong to rest

account we the for So kind provided of guidance we year. that definitely when for the

As for of had rate some for XXX% XXX% NDR. pressure NDR, the the I customers although around NDR entire we positive earlier, to going see continue assume XXk that we mentioned to overall and we're around on

to to rest So demand see efficiency together if something and stronger continue provides positive new with we with we on the the we've that this see as of cash growth, we us seen, top efficiencies, the funnel customers continue year. will and of believe some is generation, overall view

that allows guidance. make this us something So to

Operator

of next comes Needham. from Scott Your Berg question

Scott Berg

other platform? year, four to start OS, your world want I users envision CRM you the freeform solution. on you've built about off that a Work now years talking the application other Monday the with prepackaged success a Can of from maybe three, versus applications using just

Eran Zinman

question? was repeat Sorry, you some is just the last the This noise. of there part Eran. Can

Scott Berg

you platform adding other think do on CRM. prebuilt just OS? just build freeform Monday Work applications a of of top But outside of, building of that kind applications? can do You've how how had be about think Just with about prebuilt having the other you customers on kind themselves it success

Eran Zinman

dev. years success us ago. Obviously, we've huge Definitely, CRM management work seen with and one is for a

more forward, Going probably other a of going we're might our be going product we're to on. add be kind core down suite. to double Might few to categories HR, products

adding opportunity on customer products, a customer our base. base, open our within own we're see we So, new demand we own see from lot of

envision offering our from the to overall, encouraging. open to we're like mentioned, extend going product But, we if are dev also CRM definitely, up suite. for me results very you now opportunity and party to So, have And there and the vendors longtail, can of kind different offering in there's for third long maybe products of four from to three two, the vertical or industries. monday that more years, strong kind longtail very of see I solutions to core suite, six are company a a product nuanced five, a potential company, addition

So that's the going how monday I kind forward. suite envision of

Roy Mann

when is Roy. we working that building platform, a like visibility of have like, not. are and want where see of into you monday is what's it's what's add a to clear we point, lot top case on It's in Because they succeeds use can a us whatever customers need and what said, us. something is more our start I that out exceptionally and to the penetration identify And much there.

visibility like, we next, great might into have we some go into, mentioned. that of the Eran areas them So

Scott Berg

last partner want about to talk my your question, within For traction ecosystem.

You of opportunities? partner new your you or this seen business customers terms within general of ecosystem how plenty in overall new macroenvironment, changes right commentary, in give net the any they're now have specifically bringing

Roy Mann

continue to great partner also, I to sell our regions. across to see to is we've customers. of Overall, increasing that our trends But They our services that seen extend different think ability is some momentum for continue professional do ecosystem. ability we with our kind

As customized I go think customers enterprises us with onboard larger offering. and our the develop scale our that help we enterprise those them feature help fact upmarket enterprises, for really

great of we part sell. So the invest continue extension our see of ability that And ecosystem. in with great partner It's to business. a momentum our to we

Operator

[Operator Instructions].

of line from comes the of George question Oppenheimer. next Iwanyc Our

George Iwanyc

growth landscape? Do you positive? do see as Congrats see Eran, more on a net strong changing competitive do of maybe results. bit opportunity? AI this see in how kind your changing seat you color the And on building how it this little the the you a commentary,

Roy Mann

It's Roy.

about power way do. feel that exactly people great been to harness. to else software, we're that everything that. own a gave want excited that, more a to customers place a think the is AI an offer businesses we're technology. place power Like, in always about build that to we – alongside we their something is super And So, area it's want monday run you in where Like, more own customers AI run. when to they has we in It's because their monday it,

do to to think I and So early what edge this for customers. huge us. a it's give competitive leader it it's about. super definitely too a be say will as I excited for going We're feel in values opportunity like category, great us But

Operator

the Wood from Your Cowen. next TD Derrick of question comes line of

Derrick Wood

just to A the other about great lot is the see. of Maybe the cohort. enterprise I'll which on that side, and questions side SMB ask take of

trending, has of of you're end that's any the update how market? kind there for year expecting focus an of change and what the through sense churn been lower the a us give in at and rates, Just kind

Eran Zinman

few it's think I SMBs if a anything focus of enterprise their the on last But question we because, put in I a quarters, showed obviously, great think also strength. lot think segment. I our

that a I monday, current model, saw really enterprise, business benefit retention was different we of SMBs' solutions, think tools monday. into us the adding the fact stabilizing pretty We as on a have more both stable, net also company. was Surprisingly, unifying for much part given SMBs, SMBs big mixture our as a of economy. but

down very throughout well. So, double like just interesting I long to think of SMBs anything, we've done Obviously, the a very segment we lot business. an in in and just interesting through the a need that's term not part dynamic years, that and keep but we of that the investing, If fact as here. the also see enterprise, but stability

Operator

Canaccord. of line the of from comes Hynes question David next Our

David Hynes

quick on Two ones mondayDB.

that benefit? that rollout live, with the largest accounts Or you who most there, customers phased So, to did the play would XX% start the of see the approach how out? with your did are

where Second, bit Eran, talk hear a vX you Like, looks little I'd like. and iterations effort what love mondayDB? be in focus of future of that vX would to the about

Eran Zinman

with it accounts. initially, accounts, when just sizes up Overall, but the we of different for we open started smaller we started then

largest I Some would of were, say, get the the most to eager accounts mondayDB.

we So rolled actually sooner. those accounts

using most The have the didn't did. but very of accounts obviously we in larger lag, but much both the was also counts, ones mondayDB. a accounts. small now gain accounts, larger Smaller So, mixture large experience

saw there. over the So benefit of most we

few different of is on X.X consuming and parts going focus the the platform. are to focused data versions mainly next Version where data viewing on

forward. For blazing going are We're to scaling opportunities. fast to example, going going dashboards be more offer

So ability will that use means big data monday. allow significantly to we customers think And offer us game and changer a will larger than the the those because products it sets. just further to investments in better significant be what today are different be I

forward the looking So for version. next

I easier always next will hardest. to step the think be first And this the day, is implement. the

Operator

the of Berenberg. Andrew of comes question next Your from line DeGasperi

Andrew DeGasperi

in Monday beta out I point, of this just roll planning already it's just existing question do ramp can of how monday Maybe But we to CRM had terms one with? wondering, could that dev come adoption, know be would it it touch that similar in everything of could out? with I is to platform you live essentially being at accessible terms customers. quickly on, essentially it you're on customer to think the the up?

Eran Zinman

Monday the be. features to dev there. It product want doesn't is It's mean far that we are now from out out the of beta. where all

phase we're because this beta. with and encouraged why to that of we're at momentum. win reached seeing and features reasons roll dev of overall, seeing of place the to dev, emphasize That's a the was the from as compare it's getting. the CRM we're the one It's great kind scale seen monday lot product. in of I feel with the that we've that. exciting We look pleased We're have this stability to the out. just rate of earlier And for when keeps of momentum of but us we're great company. momentum way, important very And hard very planning for is both CRM, out it us a a that comfortable migrating a to CRM adoption, the the we if it We feedback

Operator

question Your FBN of from next the of comes Seyrafi Securities. line Shebly

Shebly Seyrafi

QX, I'm XX%above the was which by two in basically XX% prior versus growth, very impressed consensus quarters. billings XX%, up your from came it in in and line

factors? it speed? billing Was geo? Was it strong that it drove other what Any Was So pricing? enterprise?

Eliran Glazer

Eliran. It's

growth, now new also combination look strong are an measure we customers. As Nevertheless, of a the underlying has the of new the It's see that billing a contracts demand at lumpy. the paying revenue annual, QX. imperfect bit said look at XX% did the reminder, we customers of up. business. The billing gone We of is for fact in contributing we upfront, number that the health

number funnel activity, enterprise two the combination together billing drove of enterprise The largest strong the top added in drivers, more new customers. We a customers addition, XXX of with these than of In quarter. net upside.

Operator

And Simmons of D.A. your next question comes from the Davidson. line Robert of

Robert Simmons

it? of far? there wondering a the have the a vertical seen uptake so was that's fastest to geography sales I receptive been Has where or most been you CRM

Eran Zinman

repeat you the Can question?

Robert Simmons

Has have helpful? to certain CRM, on wondering of verticals it? seen kind was there it be I any been you or geographies receptivity sales most the would or where color

Eran Zinman

can't on any I or industry. specific point segment

pretty across was different think looking a I the verticals much for industries, that different board, certain solution.

I think CRM what migrating balance good also is between a now looking from sales next was kind version there's using to bought monday lot [indiscernible] the for a reasons they different their of existing percentages. customers go surprising customers been us wanted for And of They've CRM, large but first of that to their kind of a operation. level and manage solutions. to for CRM

last open We're that started solution to interesting into up for that kind the to insight kind quarter, we now, going customers. was offer proactively. And existing our So, just customers. those of in plan of it more forward,

also upside So, there's that. to

Operator

Thank are at this to time. turn over back I'd the for you. no like call There to closing further questions Byron remarks.

Byron Stephen

day. for Thank hope the have today everyone great you a call the you and for of rest joining

Roy Mann

you. Thank

Operator

conference concludes This call. today's

disconnect. now may You

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