MNDY - Earnings call 4 2023

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Operator

Good morning, and welcome to the monday.com Fourth Quarter Fiscal Year 2023 Earnings Conference Call. Today's conference is being recorded. [Operator Instructions]

At this time, I would like to turn the conference over to Byron Stephen, Director of Investor Relations. Please go ahead.

Byron Stephen

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

of Roy released We results earlier for and Eran Joining today. monday.com's quarter our Mann fourth year today Eliran Glazer, are Zinman, me co-CEOs fiscal monday.com the and CFO. and XXXX

on section results earnings website more webcast You materially information the and and a actual presentation to risks differ that ir.monday.com. Certain involve with our under on News on the from today statements. release for can the investor the find IR specific management's our statements, Please information. cause differ currently will quarterly our to shareholder judgment These factors actual our of and results made statements be Events of statements to from based cause at which along uncertainties today's our that best could letter, call forward-looking replay reflect may expectations. our available refer forward-looking

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

over Now to let the me turn call Roy.

Roy Mann

and you, Thank you, Byron, us joining thank everyone, today. for

XXXX. the with success, on investors from recent incredible embark and sense World As we world. bringing ever and filled Tour, as together we on we reflect an are were Investor analysts Elevate of events our including our around a customers, Day, first purpose The energy resounding

we that CRM The future and new reaffirming for present first teams Furthermore, was our to ever were to and a fuels Day reach demo their progress, our milestone. It vision potential. the community opportunity allowed heights coming an gather engagement our investment expected drives years. displayed and products ahead. additions to in to valuable from financial motivation our the achieve empower inspiring, our feedback. us years in with enthusiasm our performance Elevate highlight positive Our provided and world showcase truly the commitment latest the the innovative us and AI advancements or received delivering response full users, of in to our our us attendance our Investor product with significant connect The

Now driven turning to acquisition progress for and year. XXXX of and the our grew of at prevailing exceeded customer growth expansion, Revenue expectations. the XXXX our global we money.com. by Despite business due strong and accounts. a was fiscal results economic political year remarkable especially XX% incredible with uncertainties, all a to year larger

record we and addition improving a non-GAAP In free efficiency see margin line, and to strong cash flow. reported annual to top continue operating

played key role Our commitment a to in success XXXX. of innovation the

features, Monday Over hundreds new the launched deliver including we workflows. of and capabilities Monday year, AI and new past

We also experience mobile our data and permission elevated security, our enhanced settings. protection and

turn to through Eran over you additional Let now product highlights. me it some to walk

Eran Zinman

Thank expectations Xx. you, infrastructure boosted on to upgraded with exceed by which XXXX, Board performance remains schedule. our Roy. MoneyDB MondayDB, and we In continues

focus a X.X work the entering scale on limited allowing manage We are to being and complex constraints. at performance with customers now without the by Phase scenarios, build most workflows

easily and compliance code, apps within With Monday to standards developers up can excited avoid the code of production more a Monday we're now quarter, launch serverless Monday secure platform associated can apps lifting setting with code. security run and and Monday the servers the marketplace. host in. heavy provides This announce built our create developers for managing environment with where worklist and

Let me to now turn pricing.

model of ahead testing, an Following recently several months of introduced extensive pricing we schedule. updated

that these suite. we'll notified the rollout, prices across we our of product As customers our updating be part

that believe products. We our deliver and the investment. of products ever-changing pricing customers. providing receive in heart model at to the quality provide and platforms and value the reflects do, on are the possible of we're needs ensuring invested we updated and products heavily have benefits the even greater that their our customers best our that The best-in-class return evolved everything meet Our our works customers

we energized possible. and continue XXXX, enter than we are As to of boundaries more what the ever pushing is innovating

Our focus value and our remains on suite, customers. workers' on platform enterprise product and our delivering parallel our enhancing presence expanding to

on upward we to well business cover monday.com a resilient continue and to turn with and years. now build With base for our Looking Eliran that, and the to success are strong growth sustained trajectory financial poised guidance. our over model. it coming achievements I'll is focus ahead, innovation customer a and in positioned and our

Eliran Glazer

our Thank in you call. results our fourth XXXX and quarter and XXXX guidance. Today, everyone thank you, review I'll fiscal and detail joining provide to Eran, initial for

year XX% As up at QX in quarter. Revenue came million, prior to year. 'XX strong finish Roy revenue a in $XXX.X exceptional year. 'XX XX% XXX.X $ highlighted, fiscal from was Total was QX 'XX million, from a ago an year the for up

overall reported begin year currently to half to Our headwinds. of 'XX. to dollar declined slightly anticipate NDR continued We retention in in recover net 'XX macroeconomic fiscal reflecting QX rate second XXX%, the

our calculation. a reminder, weighted rate X-quarter dollar net is As average trailing retention a

platform reflect system enhanced work customers. our As our we product recently Eran release operating for have accurately value prices revised our mentioned, and suite the to of

estimate will We in expect revenue $XX of price contribute an of that to million million 'XX. $XX adjustment year fiscal this

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

operating XX% vertically. the of fiscal in margin marketing 'XX down R&D was $XX.X year platform, or compared of the $XX.X million increase build QX 'XX release. with in in expect on to GAAP $XXX.X in compared year. G&A million and prior from in expense QX work revenue plan 'XX 'XX. year Net a and range. future to in gross non-GAAP 'XX revenue per compared in development expense 'XX. in a , the fiscal QX up in in XX% in XX% system XXs XX% loss of the our $XXX in $XXX to million suite $X.XX XXX was to fiscal in was was have net revenue fiscal with in of continue XX% was in diluted Research from horizontally 'XX, up XX%. $XX.X investment provided in of or based year. an $XX million year 'XX and year-ago or product long million XX% employees and of the or year outstanding, the high scale line million in from line million in and $XX.X was in prior million $XX.X and of quarter X% Fourth 'XX X,XXX $XX.X 'XX million to in QX quarter to X% QX revenue, and 'XX fiscal and revenue or XX% margin We million year year ago out 'XX foreseeable $XX.X earnings of year our shares prior respectively. Total headcount as financials of and expense In the the XX% or increase $XX.X Diluted income QX 'XX the million revenue, $X.XX fully was fiscal since employee to and income year for share to QX ago quarter in remain both we year. We medium reconciliation million gross we quarter our Sales term,

continued team year to fiscal product ramp hiring product R&D sales we 'XX, and and our platform focus build a expect as out suite. on with We in our

of and flow the Moving cash and from end costs, sheet in flow margin flow We equipment $X.XX on flow as margin the 'XX, free and was free cash billion used at flow property is up was a ended cash balance nonrecurring with equivalents, percentage In free to billion cash as cash cash million, operating fiscal was million QX $XXX.X as flow XX%. activities, XX%. free Free cash the of QX as and cash capitalized software items. for $XX.X cash 'XX, and defined flow. free defined excluding $X.XX quarter was net and revenue less from year cash 'XX. In cash

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

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

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

We expect million XX% and $XX to million of flow margin free of XX%. flow to cash $XX free cash

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

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

cash XX%. free your free flow $XXX and year turn approximately I'll to it of $XXX operator for full over flow million expect We questions. margin million of the to cash now

Operator

[Operator Instructions]

take Sachs. first Rangan from Kash We'll question Goldman at our

Kasthuri Rangan

uses points you grown and as of is you look Two that the have when proxy rate, customers about with general at you XX-plus XXX%. quick I One about talked net but look XX growth, growth ones. expansion a XX%, then has algorithm at

decent you it's faster, just So When everybody ARR XX,XXX that pretty plus XX% I dig customers, level the as give underneath XXX,XXX the logic and did, numbers, even growing faster. of base loan growing should growth.

improvement. that also you see metrics in the said is the half underlying gives expansion guidance of on of I'm you second bit the an you And can business that that more us net expect constructed a you suggest quarter add understand seem guidance how light rates, suggest. and Q help confidence wondering in if saw that what 'XX, So improvement. can you the to little the the healthier commentary some you the than you

Eliran Glazer

Kash, it's Eran.

So thank question. you for the

data the on philosophy, guidance. the regards changed. latest increase. not mentioned materially this focused and price that our prudent, providing with So We're to have. we We based has responsible on achievable guidance always

saw year. still that then to going So like QX With the nothing we we of macroeconomic some days, still understand the from would throughout into sure what also account, QX. we in we and what it's assume has impact will continue last staged to environment, and regard the early the would to took throughout headwinds be this QX and in much in it's year. And changed that year, be demand already make we

regards with is So this guidance. With question to on your MDR. to regards

well about thinking average. months at are we when it's NDR, the So weighted trailing looking XX -- the as as

a average. as reminder, report Just related we

it with where second the guidance, macro So quarter are as the of we still customers in XXXX. are expect regards lingering mentioned still we stabilize in to headwinds, I said to spend. We that seeing cautious

term, half pricing has to we improvement. an suite showing year. to optimistic the longer small second important mention that and uptick remain product with overall had and be MondayDB updated at the a retention it's further the is model And that an of scaling even growth However, going the

Operator

to We'll move Bora our from Pinjalim at JP Morgan. next question

Pinjalim Bora

little Eliran in on the pricing more digging a bit on, side. maybe

materially increase price release. You the in Day, and XX% said talking you've you kind timing XX of XX% about of the Analyst the were to changed

terms of what to help maybe more get more. making dig of maybe that in So come second to in you're understand a in assuming you're churn, to us existing little that the maybe assumptions are XX% the bit to year, XX% of half the the

Eran Zinman

Yes, I'll with Pinjalim, for the it's regarding start the to over I'll year. assumptions it Eliran about price change, the to the and to rotate of talk rest Eran.

Investor plan the sooner to than updated towards managed the finish of model So our stack. during when overall, and that, we our technical beginning And Day presented our we of internal was HX, also were testing actually throughout June initial we around new HX. already pricing AB

would thought. So months to I it, we earlier say, we decided initially X X than make or

thought roll kind starting existing to customers. it's to now we mid-June, So and of out

So of the months terms in process. X X, like has started it's

in our first new the -- gone is time existing a this increase to ever base. past, into We customers. Again, done price the we've we've

we're Everything try line with learning. were from also our anything be We was customers we what so see I would didn't and say far model. expect. cautious good. see that from still reaction in we didn't here So to we

So very we optimistic. remain

Eliran Glazer

to going on there's numbers, assume of And to the the what to an to we it maybe regards we Investor on with advanced a what said is Yes. impact be in we because the around saying XX% quarter, assumption continue on Eran of XX% that Day.

in your XX% don't think roughly introduced the even So one mentioned we that if I I $XX between this know is churn. coverage XX%. Day, to of Investor when million, things And we the to the in the believe, it in, take anticipate you you

assume going as So took are of be see our when kicked going something in. it's reminder, XX% certain account that XXth XX% a January we just we annual of February customers we are And to it assumptions. monthly. to effectively sorry, subscribers, into -- in -- are Currently,

possible to into So we we is took that the some regard with what numbers. assumptions scenarios, and baked

Pinjalim Bora

Understood. question Roy I'll Yes. see for floor. One and the

a from work We customers have engine that is then of recently than heard management just some an rather platform. orchestration becoming Monday your

between Workday layer that is Gera. Somebody Monday and was saying a

Another person kind orchestrating a an in business of becoming are systems number facilitating across workflow environment? systems. their of that see between different manufacturer multiple orchestrating orchestration you Do Monday

Roy Mann

Roy. It's

So that's the see the and Yes, thank and you worked lot we a how into creating for platform. part the question. of automation. tool We integrations workflow

see a through platform many areas So handling you other you software also software But workflow that don't as see orchestration we tools. specific want. Monday workflows, and of we definitely, cross-company you trickles that between also any have have couldn't complete kind or

work than creating other us for do process input connect and We to you any where together. of place another extra that So the want needs in products in wanted an obviously tool into you to okay? or core they fit know just also stack organization need areas your then

Operator

to go Piper Brent next Bracelin at We'll Sandler.

Brent Bracelin

on Dev one, ads accelerated little little quarter-over-quarter at kind the there, basis -- acceleration of you look a net one Monday drove Number and what if point. quick in the had of QX. talk I a could. follow-up. I about and X quick bit then have a number surprise this actually I new I at a that ones, Could momentum if But

Eran Zinman

Brent, this is Eran.

the also our and improve product go-to-market. we continue to overall, So improve

of As multiproduct by customers, more open batch end we and suite more it. we QX. and we're of the finalizing over over to time, be now the It our should mentioned, final

good Day, continue with users the to seen and our we shared So as all of our see momentum exposed acceleration. to overall, engine the the during products. of and features. we data are We improve improved more some acquisition that We've Investor the but multiproduct

Brent Bracelin

And Perfect. happen is you to of Could pipeline We the net know be enterprise saw year? deal. obviously, a focus larger customers. record you'd you talked cohort through to us Or an XX,XXX in deals seasonal those that next you've expect that then of trying the large been on going QX?. strength? area to more big just number I new customers walk more to of Is continue going into that about

Eran Zinman

It's again. Eran

we continue pipelines. in definitely, momentum to our see good So

So during like see momentum larger, in other some seats, over continue XX,XXX smaller, the very but definitely that the are a accounted pipeline. to Investor Day, some mentioned we we but in -- are good opportunities

the be expect it we concentrated year, throughout So just to not QX. in

Operator

at Enders Steve to next move Citi. We'll

James Wood

or some solutions around And Okay. Maybe on that to coming the feedback Elevate you newer of of what has that was of start the been customers what just guess, I the you out? the WorldTour. from some products on had newer excitement have for initiatives. kind those most

Eran Zinman

Yes, Steven, this is Eran.

also usage. Overall, security map of scale them and other terms ammonia. in lot a of good Management around we were great feedback increase we customers on got and So Monday nuance mixture features platform, but in customers overall, of road the from the performance, a we customers that was debt. Work the on have and definitely that also allows really feedback good. There use feedback feedback the going best both And our think around the was CRM saw was where and deep and I that to places the

use variety the plan open Elevate. seeing out they to our what continue cases and the going just event annually and -- of of customers more think this really can the mind do to of forward achieve we well. And as of event scale I continue

Pinjalim Bora

at looking cash that be keeping into assumptions guess, be early And quarter? then the year. mind some I price Are in increases How there in from particular? activity seasonality factors kind of free flow strength about, the the the that of any we should and maybe maybe on of we on any the thinking guidance renewal should and there coming just for XQ

Eliran Glazer

Steve. It's Eliran. Sure,

is bonuses and quarter, cash say quarter second flow, the bonuses. paying and are free pay carrying we people. carrying to quota the fourth employees that QX, sales we time when And the this the I QX, bonuses people. in the In for regards for with pay the would So we quota for

customers XX% are to you cash monthly, a contract the So of you that of this the or flow. if annual probably would XX% is our something see Overall, it because QX. free to the and decline strength scale slightly on and contributes an compare

also this to continue hand, us to other allows invest. the On

there might potentially, seasonality. the pretty opportunities, to be throughout than other said, much But might to So are invest. that going opportunity to I year. quarters some what going we it there it's open an be are see stable Therefore,

Operator

Bhatia We'll William go next to Blair. Arjun at

Arjun Bhatia

contribution on as anticipate, you you the go-to-market then products, a ask overlay management, maybe expecting to there how get how that you're just here? go-to-market to to new relates year? might throughout sense these give the the or here. whole team the at the base one Dev from And those. enterprise and versus like focusing suite I'd or and take go focused you that in we're cross-sell do looks just are entirely place on Do be it as just to teams to set into like those on entire us those out of base CRM it the solutions to entire sales out roll customer QX sales the products least guess, worth see selling maybe you evolving as customer an specialist the on Can I

Roy Mann

Roy. It's

So how year. looks like of the I'll and first throughout the pricing the answer part it

see So we yearly. the we monthly that model we then have way it,

comes then in between year, cross-sell about month think the customers, And a or you And for as the yearly renew. Yes. first monthly be will the Moto so. asked throughout renewal will So like they the first specifically I the rate product. the

regards products. work price increase, the management, we just other it of price to for increased mostly the the So was -- the

momentum such also and we see quarters to between -- amount to we we done being cross-sell that previous Throughout in products, shared QX. the in a see going of the large continue year, and QX

numbers, substantial forward. this model it's because we but to again, it's going do to hard expect still small So like be

teams going see architecture, those each definitely, Regarding in we're specializing so products. team the one to of sales

So and in it's each the for we're those one CRM of debt. of right over but products. to during specialized teams we starting like Monday more scale And have to revenue one people process, the those time, now, team see going sales selling scaling more as we're

Arjun Bhatia

expansion -- maybe new the impacted perspective. year, And a one you might this do customer growth then it price the customers? helpful. adds up new customer And strong change. versus That's year how on Perfect. -- increase know with actually Okay. a between with very year, I you expansions actual the pretty flaring anticipate line the ended being this how existing adds trajectory impact in get from growth versus a

Roy Mann

Roy. It's

that, increase. like price So we've abetted the of course,

So we number to smaller can -- material get shift like we of that's the from obviously, increase. get, it's we to conversion And mostly in say change change was any obviously the like we a didn't -- but there see small in we but a customers. customers the ARR price

So very as overall, see positive well. we that as long effect term a

Operator

at Hynes We our question DJ will next take Canaccord. from

David Hynes

just continues I'm look there What threat through strategy. color like? thinking be building Can do the on solutions? When interesting. might expand, to on with something Any you're product linkage portfolio Maybe the the go-to-market where just how about as you front? that curious, most you strategy between the around talk see you bundles? do this could would

Eran Zinman

it's Yes, Eran.

bundles product Bear we in work purchase definitely customers. any now, forms other also But we're in then mind addition CRM Work work to Canvas we Dev customers. going don't yet products management. and individually and over to going have to So as well. buy right They to and time, offer our that bundles our each offer can Monday forward,

X that of we're little and discount X one you bundles offer if bit or like products take maybe going with a So as offer going maybe a forward, to solution.

the in management on addition companies manage part Monday debt. manage for of that, might just as for offer we project focused So to debt, esteem. to the Mondayworks And example,

in we're year, to something but in something we're -- to to going So and [indiscernible] see year This from we're going start that's this again, rolling probably the that that, next we'll out. roll team. bit to year, sorry. sales our out going definitely

David Hynes

center level your would dependence and forward? look Yes. how a departmental at spend spend X,XXX that of around point of trying decisioning? at maybe many on strategies what as still there's per those Monday level you And you versus Understood. Okay. to effort do think about just say thinking of plus then about for kind a to $XX,XXX year. move And that standardizing nearly buying centralized do what customers I'm you can or start customers

Eran Zinman

It's again. Eran Yes.

region of it's some or it's platform where and driven within more kind would decision So and say We're more a Monday it it I seeing more based we're the of mixed. But more shift. they a decision but of department is management specific a become based the the company, company. buys is the not top-down management. a VP within seeing shift the company throughout company, of Part by significant kind in whole where like when

So that. definitely, there's towards a shift

Operator

TB We'll to at Wood go next Derrick Cowen.

James Wood

At case for at medium out, Analyst guys And increase right the the term. the in the Day, for XX%, I XX%. impact you XX% it. you're to guided price guiding But of high way base if Great. not low around a it's look maybe take

below kind base it So case. had of that

seeing if East in kind the given there. down. just comment Just what comment in Other maybe of been And that the companies SMB war? on incremental the you of have you're market. of terms wondering the could you bringing flagged pressure part Middle flag Maybe anything on could you'd

Eliran Glazer

Yes.

we -- what's So we that the guidance, -- kind There We MDR, focused there that were the year. on we lower said we're the there fit of was to the was scenarios of scenario. the model case X focused on see With what base throughout case thing on. the based the that And was to said it's the going Eliran. regards behavior better mostly And MDR. scenario. going

between. something as it's probably that guidance. stabilize said, and this MDR, we now it's in of it to part into year, of our think HX I at account took going as feel we we

our didn't regards for East numbers. we see us guidance. the numbers. on With main is the this And impact the into reason So to this we kind to war, assume any embedded Middle of

a are We company. global

worth -- we're we calling begun, it's hopefully, anything. began And until to see our So no out actually see Since didn't continue going business. on now. impact actually that to nothing

James Wood

before guess, Great. often curious going done you have see first the this pull-forward goes I'm any And I you in this that, but dynamics just of know of expansion for buy, QX? for Would -- I pricing you've right want seat week buying up. your where expect color. Helpful time kind forward curious up, existing pricing if people to behavior seeing pull customers. lock guys terms you you're in in now. is can I'm what

Eran Zinman

Yes, Derik, it's Eran.

So far, as we said, it's starting taking to roll effect. out into next week, i.e.,

So saw the were of this any numbers customers didn't it, ever far company good. ever. as not in a good. line terms first we've in of churn time done expectations. Within just Again, downgrade, our reception reactions. public from customers Overall much some the is was but pretty and we with reaction get negative -- overall We

So this feel -- out. dynamic and whole be cautious how not we want be roll we also will to we're to aware the of that aware

company. bit a a here -- cautious as more being more maybe So

QX, overall, But year better -- we'll dynamic after the signals far, how will a out roll and this of look have the kind the rest so I throughout And good. think of year. the understanding of

Eliran Glazer

is over of agreements you simply model are because to annual will effective this layer renewals. I agreements the Maybe that for that course while the when Yes, takes into signed or happens a the multiyear add And annual time for they're the upon it contracts. Eliran.

all Eran beaver far, so anticipate the this as So good. really -- said, are we why is not can't signs are

Operator

Thill Brent to next Jefferies. at move We'll

Brent Thill

QX to was that's a guide. -- QX your the through anticipating lowest what expectations look magnitude coming the company. in is still had results as anything beat didn't curious, guide. but And relative the the or you you're at that just I'm in and kind going your meet was there magnitude a are you've public of just of cycle beating, we simply down, When you're

the happened everyone obviously of that's to like is to reconcile and trying what then more conservative think in seems QX this it guide for kind leading year? I

Eliran Glazer

didn't It's do we are I They the in would seen still -- It's Yes, -- exist. headwinds past. the latter. the say what macroeconomic change from still Eliran. have it's

why And into I our with probably going think cautious into going customers are on also the macroeconomic this of their QX an was beginning spend. impact still also is results, that situation this year. there

Brent Thill

real on QX And margin Okay. just guide. quick the

You Is upfront you're trajectory of at heavier relates guiding changing as here this it a XX%, X% anything to Or margin? just X%. load? is exited there to

Eliran Glazer

Sure.

that the some be #X the our going investment. to marketing on when the impacts focus not operating is this is top line performance increasing to XXXX be for seasonality, because going is we we So going always QX, we margin way said But the entire because line, and we There put on obviously, did said are Investor our throughout year. that past. the to top more Day, we the focus in improve in did you

So with would it's to expected I have but improve, just said. in line what we have

Operator

at Iwanyc Oppenheimer. We'll to George go next

George Iwanyc

seeing you're new you on adoption to So and Dev way any landscape. competitive the landing both changes sales and with are the with customers the of continued CRM, then strong

Eran Zinman

Yes. George, this is Eran.

the and it that to we will management. So I And competitors anybody. the to and players. with compared in as we still rest say people Dev, other greenfield see the of pretty didn't would of CRM with deals XX% Look, say I far competition. say, we and obviously, the the land Monday debt, CRM compete work some rest, terms would consider work same. different we opposed much XX% so I when we signed management, then see of XX% that would remained

and death, other products. we other but I players we as but in those a competition compete So mentioned, there see still CRM that more strategic little -- is see bit we Dev against in

George Iwanyc

have side? give some this timing that. services maybe year? you're how the us that on on just And forward doing on you the the And color could go feedback Can up launch any following on do of work you

Eran Zinman

Yes.

schedule, to this on a continue and HX year. we service build it to launch So Monday plan

within customers So our Fibrex Beta. have lot company. the like -- using users already bunch as manage far, users service aspects are so in of of Monday far good. some really of And ITSM a to a mentioned, is our we and had I've we

to as to So learn them. we first going features part that the set version. And going talk with from we're of there's of we the launch them, sets

Operator

We'll at go next UBS. to Taylor McGinnis

Taylor McGinnis

was performance of Can stabilization begin you macro? saw? And the So we the incremental you so seeing XQ pockets comment trough? and you look a that Or numbers what to like? there NDR on what quarterly can see of weakness in are still the such number does with that the

Eliran Glazer

with So additional we're are and it's it, it better we this all the By value, potentially stabilizing our trailing have said, as I adding we and and XX still Obviously, add-ons of increase products that get incremental in the what pretty we HX Eliran. expect flat seen in months. monthly of prior to to large, seeing of year. customers impact price

Operator

comes Capital from Celino question KeyBanc next Our at Markets. Jason

Jason Celino

on the question what demand One conversion the willing And saw and top-of-funnel linearity. Curious then exiting provide? to of you're anything quarter? first weeks, terms in in you Great. few if

Roy Mann

Yes. It's Roy.

we We of more very marketing. see sell healthy more pipeline -- So the funnel we increased like top activity leads, generated.

all it's line expected. with we So in what

Jason Celino

pricing. Okay. performance-based marketing, quick the maybe the for Excellent. then environment my as And follow-up,

you saw any over I we think several what stabilized you last kind upcoming XXXX? when are it's the in here about think change the of But from making quarters. year,

Eran Zinman

Eran. Yes, Jason, this is

doesn't prices what overall and year's compared with past than So stabilizing much saw we the line still it's pretty more but are lower to in last improve that.

very and new As saw coming sign-ups healthy customer generation pipeline far into we XXXX. Roy said, so

last with that in we year. healthy healthy. is what of also is pipeline Cost pipeline saw overall, So line

Operator

We'll to Financial Ivan Partners. Feinseth go next Tigers at

Ivan Feinseth

being customer new see adoption or driver increase of use? functionality the biggest customer like you as do What the

Eran Zinman

Eran. Yes, Evan, this is

it's of say wouldn't specific I product much functionality. a So

also more of our I our becoming a marketing dominant. more engine. performance think it's and efficient And are combination products

the within would parts Sales, work of companies R&D, or So acquire management, of obviously. customers allow VP the different VP our from to products us

a allow addition existing acquisition just that So marketing us our engine, healthy engine. performance to customer in to have very

Ivan Feinseth

And what see, as use using though, do or you is biggest new are for for? signing it that up case customers the

Roy Mann

It's Roy.

far, biggest is our is management, work which very varied. the So segment by

in have focused whereas We obviously. more work CRM within being different and more very use more like targeted, management, on it's specific, cases Dev,

to very work at the -- ability So with target that, and moment management broad. our is

Ivan Feinseth

within functionality roll see to of the one a question. out Where these in lot AI Then products? you last opportunity increasing do

Roy Mann

again. Roy It's

around on the great few enthusiasm So kind really because use evolves. they would how we about when AI we an into launching workflow. And one our And are doing products. launched see and and in and automation launched it also platform the customers AI thinking and is Investor see we building the block service allow a AI few like core in. Day some in Like the of of introduced their build we've it segment, of to it other adding we're way currently, part the we core areas, we AI -- own, their -- we want a of

putting emphasis again, a we're allow this And will democratize lot we So give like of AI grow customers. a lot. there -- our and as us to it think is to

Ivan Feinseth

support the last to Then pay development you clients price of price do that kind increase? easier question increase. value easier one the your Where of added will see the help

Roy Mann

So Roy again.

like So before. Eran done this we've never mentioned,

get much they the that from value until the got now So is in past the feedback to I customers so without we've years it, added the price. like increasing platform few think we

-- acceptance that think now. of we And see change so I it's

it's us the platform. think well value as more I as So bringing behind always to

So we see of the new price. wide acceptance

Operator

& Berg We'll Company. next Scott to Needham at go

Scott Berg

me. from Two questions

First of confident just more AI, the you get to guess functionality on ability more on side actually you've there monetize a points chance how all, the much AI company's feedback with with that to of Monday from some the I had are in more now proof customers. in

Roy Mann

question. great is a So this

are still us, we we to AI products segment include that lower allow it. like for on will I market think to get it ahead working of us AI think and or the with. it's specific pricing penetrate and faster do I thinking more -- making

see on upside a working we're of the there, lot example, launched just we And like So as but I monetizing still it. AI. an automation

much that and think So impactful too to it's say I the pricing will be. how to days of early

Scott Berg

additional that over on then it. you're $X me, the as will growth by forward, there driven that Historically, seats. the customer of there's functionality cohorts expansions know I my that on charges. into at or you Helpful. user Got the cohorts excuse think these that of of much they're moving going at And question a how largest -- core Day, conference, to follow-up we announcing. is larger seed adding going customers XX,XXX big cohort on or your Analyst announced your the top been be and paying seats customer XXX,XXX focus But expanding million about customer accounts. some be

Eran Zinman

Yes. It's Eran.

I preparing functionality. So be products, extension more we're be new like The vast add-ons, the but to them of launch, say majority by seat sell so would that growth modules. we'll -- probably we're going also is able to going to expansion,

to increase opposed of time usage accounts enterprise them those that of seats. over hard in it's more overall, the as businesses seats But for terms smaller to to tend and extend amount

to overall, expect cohort, more seat So expansion better time. it over NDR, like we have this

Operator

and today's your call. that the Thank for conference you session And participation. question-and-answer concludes

You may now disconnect.

monday.com (MNDY) 12 Feb 242023 Q4 Earnings call transcript