monday.com (MNDY) 10 Feb 252024 Q4 Earnings call transcript

Company Profile

Participants

Byron Stephen	executive
Roy Mann	executive
Eran Zinman	executive
Eliran Glazer	executive
Pinjalim Bora	analyst
Aleksandr Zukin	analyst
Arjun Bhatia	analyst
Steven Enders	analyst
Gili Naftalovich	analyst
Brent Thill	analyst
Brent Bracelin	analyst
Michael Berg	analyst
Michael Funk	analyst
James Wood	analyst
Ittai Kidron	analyst
David Hynes	analyst
Jackson Ader	analyst
Scott Berg	analyst
Taylor McGinnis	analyst
Allan Verkhovski	analyst

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the monday.com Fourth Quarter Fiscal Year 2024 Earnings Conference Call. .

[Operator Instructions]. to President conference of like Byron to now Vice Stephen, Investor would turn over the Byron I Relations.

You may begin.

Byron Stephen

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

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

We today. earlier released fiscal and XXXX our results quarter for the fourth

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

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

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

to the turn let Now me Roy. call over

Roy Mann

area. for everyone, with our needs year. business out capping meet us customers. off made of the of and innovation leadership to growth Thank XXXX progress period We've transformation while every and substantial our thank market evolving an has a reaching high you, Byron, heights you, today. closed incredible on in We joining driving QX note, been our solidifying across a new

Work of platform the billion in our strength and reaching the major A of recurring annual $X demand was revenue, year solutions. increasing milestone underscoring OS our this

record both efficiency of exceptional in model. performance operating our scalability reflecting record our delivered was achieved financial free of the business Our the cash flow, margins and We XXXX. and equally

'XX, ago in and revenue Total XX% $XXX from in year up FY at up the prior QX million, year. XX% a quarter came in from million $XXX

Monday's product CRM exceeded of considerable and On added continue strategy. the we and CRM has to both our multiproduct accounts number during Dev the make expectations year. for record we front, net new progress in a

also were validates the Magic leader continued strategy X commitment and different Gartner recognition in platform, Quadrant AI as recognized In This capabilities, several our XX including in be actions. made was a categories. strides blocks. proud our performed to AI customers. approximately AI in development Since value monday to XXXX, new We to we further users our our significant million AI integrated into unveiling have the delivering

highlights the innovating driving progress ongoing our enhancing commitment This to user through solutions. and greater experience AI efficiency

customer was enterprise One expansion strategic most significant deepening the successfully signaling XXXX enterprise our strong largest seats, milestones adoption market. the and seat of count our We XX,XXX to of into grew engagement.

been not larger, All phase this latest X.X, mondayDB, without the support possible complex completed In to our enhancing enterprise would of mondayDB platform expansion scalability data we the cases. architecture. have use more XXXX, mondayDB,

our continuing reach focused ahead the excited impact strong we are on come. and expanding and momentum. Building achievement XXXX, look we As our place, remain on to with further in to foundation we opportunities this for

through it this you Eran of Let walk to the product now some of highlights over me to quarter. turn

Eran Zinman

management announce deliver support, Service is to Service excited through officially teams AI-first exceptional service that Monday We're available an now automation. Roy. you, solution to customers. smart Thank faster AI-powered service our that Monday helps is enterprise

products of very our highest With new Initial Service and the the customer product monday Monday showing demand highest has been entire ACV cross-sell of strong. the suite. already

introduced all AI offering a the AI pricing accessible, level for a free front. we've AI been more make As we of blocks, baseline model have usage Roy on mentioned, consumption-based very flexible busy To clients. for

purchased be For different organization with levels. at larger additional can AI usage needs,

more address XXXX, AI will will be will to tasks. digital and to on areas: workforce blocks, workforce. provide power-ups monday product expert, And will offer each X main ways our expanded users. finally, user into agents AI AI product specific which product and blocks be like power-ups, digital actionable and be AI In advanced strategy the streamline to include needs. deal analyzer, focused service AI insights automate Through processes integrated for deeply will facilitator

have XXXX, ahead be we Looking lot about. to to excited a

year ever, been of the is without have positioning education growth possible stronger and team. The innovation. us this than money.com for momentum Our continued would and success talent not

expect employee In XXXX, in and XXXX. over we count increased our X,XXX XX%, bringing total hiring to our strong workforce by

shareholders. delivering we forward, investing growth on customers to our long-term our for As driving remain exceptional we move people, focused in and value sustainable our

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

Eliran Glazer

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

million, strong $XXX prior at XX% the Total fiscal QX ago in in exceptionally up the 'XX, and year. million As from came Roy XX% an year mentioned, revenue XXXX up $XXX quarter year year. from was in

to QX. Overall in XXX% NDR increased

We to stable expect remain NDR throughout XXXX.

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

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

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

to to high expense expect was development revenue, in and range. 'XX in the was margin term, million medium margin of XXs the in we the XX%. gross from or in quarter revenue, year XX% and Research to remain year. gross from XX% $XXX.X prior up up fiscal quarter continue $XX.X Fourth ago long or QX year million XX% In of XX% the in

Sales revenue year. of year the or in 'XX year $XX.X the million up QX and QX quarter of fiscal from compared million ago and 'XX. revenue XX% or $XX.X QX $XXX.X in million 'XX, in was XX% XX% to was XX% million Net in in marketing income in to compared $XXX.X expense prior

on per million share Diluted XX.X and $X.XX was QX year in diluted fully respectively. income million year income and from net shares 'XX For 'XX, $XX.X net fiscal $XXX.X $X.XX up million, was in outstanding, XX.X based million. fiscal

employee increase QX. since Total of an X,XXX, was XXX headcount employees

with year sales, investment ramp first as approximately hiring 'XX, We of teams. grow and in up for to XX% the R&D year our heavier expect product to continue we the headcount in fiscal by half

on Moving $X.XX ended revenue million, flow the balance quarter We sheet and cash flow. flow cash free $XX.X in to as as billion cash defined equivalents, end flow the with and free was $X.XX percentage as at cash billion QX. was and a the from Free cash XX%. cash for of margin QX up of

to remain cash $X and of In million, our was fiscal flow was on cash activities, flow flow Day flow Free cash property fiscal from cash over net goal as fiscal meet in from Investor free and operating year to $XXX.X equipment cash target free and 'XX, capitalized year billion for costs. margin used generating cash less free XX%. year We defined software 'XX 'XX. is

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

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

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

negative in to from to expect For to the XXXX, billion, $X.XXX a basis impact XXX of we points. XX% $X.XXX FX forecast of XX% assumes billion full revenue growth the to of be range XXX This representing year-over-year. year

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

expect million of $XXX cash flow and year approximately cash of We to $XXX XX%. flow million full free free margin

me Let it turn questions. the to for operator now over your

Operator

first our Pinjalim And line Bora Instructions]. the [Operator from question comes of with JPMorgan.

Pinjalim Bora

AI like a to AI with your quarter. capabilities are seems AI. It start I Congrats strong momentum on want strong seeing really on actions.

does understand going us you that like these credits. You AI credits buy XXX is per consume? help Is plan. pricing that It more, look an introduced is some that is action? to What AI how work? How are -- to to wants are like? in if action? somebody supposed how And Maybe defining the credits seems what

Roy Mann

Roy. the question. It's you for Thank

what of AI we customer we And that wanted our everything is do like post use a And So like like within board. can base. kind action said, on doing essentially, you starting our is plan, consumption have action of any with a that this the different does pricing like summary, to XXX. it all like platform, everyone

you you you AI to things more really a create use actions and a build the complete and plans more you if workflow, more in couldn't automate before. of that use can actions. we way model, it as progress And different essentially, So a in lot workflow and consumption can a you have purchase

Pinjalim Bora

Yes. Understood.

like XX% seems of question The very It Okay. high over at you Because kind benefit? pricing you end. or are guide? think for currency How should contribution a assuming about a some little of on that the noncore Can bit about choppiness strong. Eliran, seeing X around And were of products how you those on XX% guide you constant assumptions? talk What macro seems guidance. Europe. What non-CWM of did then the in from assuming we are for lastly, XXXX? progress? the

Eliran Glazer

Sure, Pinjalim.

with of guidance, we regions. compared to The seen U.S. including demand across world, and The consistent into what the we took to rest have Middle of in November. account very regards we first all stabilizing is is, all, So what XXXX demand Europe trends East saw healthy. is

into account NDR the took XXX%. at We that fact stable remains

reporting. U.S. geopolitical FX terms currencies. as versus dollar our revenue you XX% negative stated, the dollar expected impact, of strong in other is the ARR We of of because and or based

calculations XXX that So have estimated to we basis we done. on points based around XXX

We when terms it significant from question, is is to more of to still in take take think the any XX% example, took contribution And account, into becoming we early ARR. your the about didn't the into for headcount in mostly, AI. It's -- product, prior we there And account growth in of account. becoming XXXX. CRM into days revenue

Service account really XXXX account. much certain see small we that of guidance contribution. So also part our as we the took assumption. trends And mentioned is it a it's revenue, I fast. out took into just contributing but amount overall, growing But already data, of still they're into of pretty

Pinjalim Bora

Anything on the Eliran? pricing benefit,

Eliran Glazer

estimate it million $XX already to fiscal million year in year way On pricing, in baked so into between is what that fiscal year XXXX 'XX was $XX around at we we contribution. around said The the guidance. million have XXXX last $XX 'XX, we that the looked

out million that rolled out by of where pricing July And be to we will started have kind $XX be last pricing the rolled end This about XXXX. year. there to going done we're also, because going is is

Operator

And our of line Research. comes with Wolfe Alex next question the Zukin from

Aleksandr Zukin

landscape? happened maybe to U.S. specifically you the on Congratulations question, in you I great a on quarter. the month to competitive another what Kind really back did of you with walk and the And a you of think transpired head the seasonally enterprise, if of it look about kind impacts great more and as respect the us the what next in see through and the actually guess, at of for pipeline kind bit of December? you being of about quarter the Europe it's as see into shape you in year? demand any quarter the what changing you little Pinjalim curve Did the the from guys telling weighted?

Eran Zinman

Eran. is this Alex, Yes,

like demand choppiness Eliran stated, mentioned, healthy we as we've and what stabilization. pretty stable see outside we January like and right seen, well, including yes, bit U.S. of and but U.S., we So of saw Europe the signs November throughout been in has November, the now, much December little a

we're Overall, great going but our apart at that of there's kind that's it's retention levels. FX from to us that, confidence Like record a impact, that's the be forward. Eliran say to some seeing that of continued growth -- would lot see. environment I So mentioned, going Give forward.

growth So fastest-growing like the as be and enterprise in to well. segment accelerating it well. NDR we that, Enterprise and segment, staying our very continues growth retention the strong and see as has

on So plans judging healthy -- together, feels it we're XXXX. feel like feels parameters for track those to all it and

Eliran Glazer

adding would results in Maybe to of from coming back last we to motion, transition of to quarter. Eliran. Alex, is PRG just end that quarter see something in -- have see as year, this the we're the each business SLG we the said just a Maybe I the starting Eran, also

a see the towards the more end now going also December, skewed of prior flat we in each there is like quarter. kind So to into of used years,

we Europe, So we December seen to last when have East what in in we've compare year. good November back seen Middle signs in

Aleksandr Zukin

service some what us to And price. walk think, is I'm given you just this just with or ask expecting. this ask well But the How AI then what more through, how Maybe to previous thinking guide guidance importantly, about about people to relative many as have to to conservatism a guys, Perfect. stronger those the going given Dev. looks, much are a, in changing respect about how guidance, to dynamics going layering, as are products and you assumptions you about were the into peers? not I to you thinking you go-to-market from how from talent I'm CRAM blocks prudence perspective the year to just

Eliran Glazer

Alex. Yes. said to will I repeat Sure, I Pinjalim. what

year, is, first predict. are you across of there that you that maybe to this a So is The prior compare geopolitical it I all, to can't when worth think, the world mentioning more something one situation really unpredictable years. extent, certain thing

So this took is as our also guidance. of something into part that we account

To products, out the monday on of dev, your products CRM monday with we monday being and question Work on have X data, now platform, Management.

NDR be something took into is continues XXX%. that obviously we account. that's this So to stable,

of becoming results more amount the certain product revenue, we it's a other next CRM growing. see now year. that other will than But of contribute the is significant, will products new The

took into full year. in in now we account, we bear and increased that headcount this last of year this So see the mind when last also XX% all hiring we impact

to we know don't on today. tried we a not. or a prudent, know what So to have guidance it based I responsible This is call conservative

Operator

the comes Blair. our of Bhatia William from Arjun line And question next with

Arjun Bhatia

customer my still that line year the nice called know letter And it's that in One drivers for ACV understand I how walk thing there here. what out service product? Like more you into highest I Perfect. it's to out you're ACV? end that regards add the early thing can larger stuck customers? think right service, selling should around you congrats, is. I product think through we I'll across in very a continue But your seeing. expect your I that you are the add-ons? as to higher small product that shareholder customer count are? Are there this What given count makes grows And it to

Eran Zinman

Eran. It's Yes.

Yes. So

thing things. is out think the different for between overlap customer stood Service But every is see a monday with like go-to-market. we I it's customer that I existing few a there's combination -- big potential and product, X our would service. a One has of base say, feels base it really a

So products, with with. we to relatively see momentum begin cross-sell other to more

overlap just it between percentage-wise, like audiences. still but It's numbers, low the big feels there's a

we mature monday top-down decision service. who as to of So customers buying have in and into monday And customer people that it's are led Also, already more service. a a more interested that process.

combine kind in management of to lot process, going feels ACV So kind a ultimately, X higher we the mature deals. those more more have you things, grow ACV like forward leads which enterprise potential it of just into if top-down involved mid-market a deals, has to business. And of it

Arjun Bhatia

look what's on that given then customer some on mostly going adds the when very there is we reading I move of CRM be that looking it's help That's greater I just and annual and like to right. understand the and focus us upmarket if up, looks helpful. cross-sell Dev, Can count think, only I'm a follow there? else customer something All bit And net at, or disclosures on you've new I your at thing customer think a slowdown. QX, maybe the that little net just of you should there's front into? Is for

Eliran Glazer

So the the speak about number Dev. question, Arjun, I to customers just total of understood CRM make and to you sure wanted or you that relate

that follow I sure make to want Just the question.

Arjun Bhatia

little X to all customer and a bit number I'm to think Maybe also of then QX sorry, both. XXXX -- total Dev, -- and of it in XXXX maybe question. I It's compared Yes. or encompass slowed yes, trying in XXXX the CRM

Eliran Glazer

Sure.

we of peers. number our past we we the more as than, customer high in are focus XXX,XXX within terms I now which the times, of we said most grow have within customers on going to in said And total digits existing we going are a of number that total think, expanding going base, customers. upmarket. probably And single is So few customers, of to

regards of spend the customer before lower performance QX the of coming usually this mainly marketing is are due With we is year, and in Dev, what are end the in than QX, of CRM channel year spend that at doing holidays acquisition seasonality usually the related the to to that.

allocate to beginning performance the the year rather because budgets of we year. of more at performance impact half to want similar marketing the prior And in full year, get second expense than the we the of the

this numbers So main would is, seeing. are you I the say, the reason for that

Operator

with Citi. question Steve Next Enders from

Steven Enders

I on been like I I But to CRO guess last are you going any how of that kind start, changes around I there's search about to ask more thinking guess, maybe thinking that? the, Great. about or guess, and sounds Okay. that color Just within changes. I go-to-market want how the in would that structure is future some on. maybe of enterprise just changes strategy it know you're quarter, sales of how helpful. or details are going, kind some be other that

Eran Zinman

Steven, Yes. Eran. is this

with in we're looking yes, pretty We're person and and somebody see for we're of across a the proven to of a QX. a by of the process. months. next the we'll few So complexities track that can record end we I of finish process for We've candidates the share get looking new the great advanced this CRO. looking in Hopefully, line definitely, market. hopefully, kind understanding been finalize deep

results last organization. would that CRO say given that, the seen we've few I great months, all in from the

can momentum feels the and that good. with overall You see enterprise adds

for looking a definitely So replacement.

organization doing drive the management work phenomenal to So far, is the within results forward.

Steven Enders

of kind investments a following guess that, spend sounds on And this to of that Okay. some perspective catch-up hear. it like year. coming maybe been maybe in there's further headcount great up Great. That's organization. I kind from

of what the of kind motion? to out that's what guess, yes, just behind that the and seeing leading pipeline confidence to to that you're are there, maybe the the I kind confidence fully to, kind back is in that you of seeing invest Just leads thing

Eran Zinman

Yes.

again. Eran, is this So

into to grown QX. org. So continue sales general It's almost XXX sales we increase partners yes, end the by managers -- XXX carriers and a invest of definitely, to have Overall, our Q-over-Q. total between quota the significant

scaling Overall, a we feel reasons. organization the for few confident

we lot the for have within that of existing base. we customer see potential we our a results. First, And expansion see

those additional for amazing That's team. fuel have products. our We sales

scale to customers customers even scaling the unlock for was a more are existing to further. enterprise. Our big MondayDB enterprise

within our lot feels the it account also, there's well. wealth other marketing even to and base. that seen So strong, customer growth, management, across And can our but performance add more we managers potential and just for great own of a be base, continued as expand just we've demand, products across not to customer

if together, and So those that to continue the you all We that things healthy XXXX. we very feels for ROI put sales just see the it's that, to organization. it in increase do

Operator

Sachs. Goldman from of Next comes with Gili question the line Naftalovich

Gili Naftalovich

It's for can. Roy Kash. I a Gilly and if maybe have I on for follow-up, Eran one and

you landscape engagement the the for to First, about so if this your this you Like see can monday? evolving believe to -- your And perspective out the as get laid What pillars you next positioning how strategic It's are with XXXX. the you the take priorities change? on talk top years? platform may to love few you do do I'd meaning central you AI, envision the in X opportunity? company right? AI how over how landscaping

Roy Mann

Roy. Gili, it's Yes.

where of to efficiency. that's power the look technology And from like fun what we we're into for and people people seeing what do. plays planning it, at we right the the We and and and bat can build and and it's giving have that use. doing, AI to forward, we improving the we to monday whatever next into is get democratizing And we're go use in huge going really they can vision. give we're off it, easy know they better the we want you harness what have meaning power that's actually when this to implement a customers in business So to their they AI feedback feel

Gili Naftalovich

very Yes, clear.

the multitude on that Is are accounts Can able year had new this talk about little byproduct that guys -- of what this a you saw bit maybe or number result second you and drove momentum? more Dev head the so of And mentioned to count that leading a indicator a record you of is of different a quarter. question this it you net I was factors? CRM add growth or

Eran Zinman

Yes.

we're those I say with with happy and we Eran, -- both both compared the the momentum of think But of going slower, mentioned that seasonality. products. definitely because of QX, and with was would QX very to performance marketing is the little in overall, customers XXXX, this bit CRM to adds I continues a the we Dev. see that

more also in I more of functionality, that those but features we both total the in each and are just higher upmarket would invested say of both. contribute into number adding in which not customers ACV going to products one to we

of what kind forward. we that's So focus now on going right

Operator

Next Jefferies. Brent from line Thill question comes with the of

Brent Thill

you you on a growth, was you mentioned you're 'XX perspective? seeing versus 'XX reps, of XX% update back reps and below line? sense hiring that the from give over hiring that just for or growth quota when just And above us at XXX goal think front. hiring total sales about what a or growing your then of us can what the you Just stated When are quota-carrying rep

Eran Zinman

is Yes. Eran. this Brent,

growth to question, little of XXXX. a ramp plan part the you up of into the So mentioned. terms XX% for the first so the of first year-over-year below is as carriers bit half XX%, total your about We sales hiring quota in overall

plan So going XXXX. this the is to forward kind of

Just carriers. a about year total XXXX, XXX QX in had we ago, quota the of

year. So XXX. the growth a now almost That's significant in last

Brent Thill

you're how coming are the packaging thinking market easier evolving consume packaging, to your you the these new the solutions enterprise move about the kind larger service as Okay. think make when Great. to go-to-market And these to now bundles, it with? we've ELAs or -- to is -- in, you do seen with you how mean added breadth these of about of I companies all

Eran Zinman

Yes.

Eran. So is this

ones we I sell the we where we products, going a high forward, cross-sell. see future of a bundle see definitely definitely, look, percentages think of that So

this think with I is what's that see think cross-sell. mentioned high of I we Service percentage a unique I release but earlier, the monday

So an work for that's management. definitely indication

So monday the be because or ticket and for that us of for that's lot packaged request Service a of definitely an management basically beginning a project potentially a is together or indication can a work people, workflow.

X those work really So products well together.

So a this we mostly product begin between on might it's but going in forward, bundle sell currently, existing focused customers. with, to cross-sell

Operator

the Next line Brent Sandler. Bracelin with of question comes Piper from

Brent Bracelin

that I wanted to double-click you in seeing SMB saw Just North more America. here, optimism North enterprise of you It North looks quarter activity? walk sequentially decel influenced it start like large drove strength kind points strength acceleration? growth saw internationally. in drive Are that America North America? and by this in through more What drove America accelerated here the to the what XXX basis expansions? a Is offsetting in than you

Eran Zinman

Yes. Brent, this is Eran.

we I think And also, enterprise But trends, EMEA, some reaching we in think overall, So seems that we that segment at longer-term if in our had that. bigger mostly be growth. I mean bigger customers stabilized. it's has of are North the driving in I been and November been we're mentioned America, look choppiness that terms but strongest customers. definitely, to enterprise in

So region. in that's definitely significant very a driver that

Eliran Glazer

gaining is think we this -- Eliran. to Also Eran, are is Yes. Brent, also share. this add I market to

actually in that allowed grab competitive of year works which has really is -- well. that been we things strong One have us we landscape, machine to we take some share. that are changes a our seen market There the market to share, last have basically

focus Some competitors enterprise. of on our also

in So it down leaves mid-market. market to SMBs terms of us the and

into America. in and footprint So our share more overall, actually future that market us are North gaining increasing pushing

Brent Bracelin

a Great Dev, new were sales that. as these follow-up that see then know to were And largely products I landing historically, new here. just customers.

customers, I but kind than service you like was here mentioned in you cross-sell beta just service, was release, it of is sales. which early XX% Dev what different I of with and something think saw very it know the

why different? starting broader maybe is into service see you click all opportunity cross-sell, And across So just you double are can the cross-sell platforms? to

Eran Zinman

Yes.

is this So Eran.

money monthly products. monday more see But of because or usually Service and mentioned, is a a of overall, Service beginning mainly like synergy between So we lot all cross-sell a workflow. I Management, there's between process Work the

the So use the on to to of of kind monday executing then and lot kind the of manage and request requests actually admin a service people around the move workflow.

also the in other and position benefit the terms strength products large our big multiple a overlap buyer that's feels kind work monday monday is of between well. of customers of the the products. to very for high between compared also market as management but think the Service just the is I the shows synergy having like It for and products very

that So of kind drove the percentages very that what high seen. cross-sell we've

Brent Bracelin

Okay.

sales just service you're and bundled together. clarify, and seeing to So cross-sell not

You're work seeing service and management more often?

Eran Zinman

higher. well, . but we Yes. I of percentage monday are way as just the mean services also see monday CRM Dev and

Operator

question Wells Fargo. Berg with from Michael Next

Michael Berg

are quarter. like more provide could on with looks Maybe you one it on a little to bit when click land the help on us what us Maybe you have I can what initially? Congrats other or or help alongside existing Are something? want understand service whether place service more when you time. double you service are not? the customers Are color in landing, customers monday.com understand you solutions? landing you displacing they

Eran Zinman

Yes. is Eran. This

is have of HR launch request, seen support. first all, not it's we important we request, but customer What we've IT financial from have IT marketing to requests, the service. So product mention, operations, obviously, service, it's just

within the different So departments it's of variety organization. a

another only we we the sometimes land other vendor competition, the of win terms are and compete we with sometimes vendor, sometimes with players and In in deal. market the

all combination a above. the it's say would I of So

what they we the days, I from early it's we think Mainly, but love what platform. with of the -- still again, flexibility customers, talk

the all think industry this have beginning. is very players in flexibility, something we and that offer degree of big from I high this a the

benefit. built it's huge is on fact platform a the So monday the

over Management other And the and centralized way, monday CRM Work also with players fact also for give so because the in way in us monday them market. is integrated And Service a benefit that a deeply work. monday that huge is a to

currently kind that's of still it's as see. mentioned, we days. So I've But early dynamic the

by, think we'll as it. goes clarity So have around I more time

Michael Berg

then quarter metric talked impact it in comment you, for And NRR, we And about there? that's stabilization of can how forward. Helpful. much you for for metric Eliran. X quick think XXXX? every about pretty inflected of follow-up How in on On into the the price your the baked that NRR moving stabilization

Eliran Glazer

Sure, Michael.

in of just reminding So to quarters. average my the reporting everyone, weighted -- we of X last terms of are

significantly. improving we said retention that So is gross

We are last seeing good trend increasing year numbers. of

this. up and going year, we see we're to happened. start be around the and positively of going to what fiscal reported we will -- XXX, we XXX said above last the now slightly be in tick starting year basis to is will adjustment year, that contribute we see we're to 'XX. the we XXX NDR results as And the So this said this pricing estimate points We were

Operator

Next America. question the of from comes Funk Michael with of Bank line

Michael Funk

to I ask seen about the larger customers wanted success recently. with that you've

larger prospects? be greater customers? share you to you also those frame come expansion and maybe a might seeing among market can you If maybe the made the earlier gains May complexity consolidation back of comment just deals, about some

Eliran Glazer

this Michael, is Sure, Eliran.

we take have the So you back, platform with mondayDB. maybe, process improving of a years started again, X to step ago a

that sure going So We're scale. make performance we scalable. address going to to plan and had is our platform the speed, be to

larger on the and improving we now keep platform. in to are X.X allow work to a infrastructure the we customers So mondayDB bigger,

of the mid-market throughout breadth more the this year invested we not into continue In enterprise on we hiring only familiar products, have in the hired and enterprise, are and with that to although of addition We to year. the Service. the a process this is that people selling terms going of customers monday process of depth in prior to that, we do. product, the

of from of acknowledgment by market larger used all we the that is within that of So competitors. at fact in together way share also the a that can indeed the be mind larger and platform market having took monday customers,

fastest-growing business So we said that enterprise is segment. our

the enterprise customers. I of expansion Of see to driving contract the teams in XX,XXX the see the we above, also that U.S. the The past, is that into is the And and things people, in technology, the well, I in something say, large can XXX,XXX business the product would years, sales forward are in the customers -- that is done have investment enterprise. all X particularly you increasing over related NDR performing with

Michael Funk

adds Great. believe more could. and reps, I the of slow in strong quota-carrying addition the reason Dev? and and to XXXX more quickly, macro Against CRM is net there that any adding net for Dev One and backdrop if your comments the for on is CRM

Eran Zinman

Eran. is this Yes,

say hard bit. So But overall, to we to not it have performance I ACVs. and customer just momentum for overall, is a margin. predict. strong itself upmarket it's I look, go company of with CRM that slow Dev kind might the continue mean higher would little for strategy our and

focus say not our would in very a existing and is I add whether product Dev customers that necessarily but within and So larger CRM our to customers. small businesses to lot of bring scale

just to continue revenue ARR mix of I accelerate It's portion, and say, going and of amount different we ACV going in be definitely So to a between would customers the forward. in product. terms

Roy Mann

to than what make decision larger rather said, okay? prefer more to of the total number decision customers, customers. is Like Eran towards a I think It's also like the We increase price end, the that Yes. Roy. increase

Operator

] comes Tom line Cantor. question from next of the Our [ Blakey with

Unknown Analyst

back seeing of parabolic on not X mentioned X, it increase say you I I just -- interactions. AI going AI any you as longer-term your don't to question. if the clarifications to in there AI 'XX that in guide. might have kind AI of revenue think Is close safe couple include 'XX? calendar in calendar The to A X was revenue here.

revenue if little terms And a think that company you where you're look out bit be longer the I big of wondering uptick this in you interactions? a what AI in have seeing could And in term? Just follow-up. at

Roy Mann

Roy. It's

usage you pricing how too So to we to and saw and is introduce customer then it's reactions they say then really what because you early grow. want increased and see

it we and couldn't anything bake we predict in. So didn't

I we so for think when look forward, we strategies the AI. Going market, many at different pricing see

looking markets, expect blocks how we'll in see feel and additional can willing is but to winning are this is like some true we wait actions we have pay and Some of confident value to what that and for, much forward. revenue, is the for for customers as the usage

Operator

line And our first from TD with question comes the of Cowen. Wood Derrick

James Wood

feel wanted back about to talk multi-thousand you opportunity a previously. you And you XXXX larger could captured And talk on see in XXXX, strong I in guys XXXX. an to you more shareholder -- the deal about versus talked come the Congrats the which customer engagements quarter. to letter, seat about in about Great. But know theme. highlighted how XX,XXX-seat you've I

over if kind that or in a years? out Just over uptick of -- if we the see deal next will gradual can that looking wondering be kind of notable activity few the

Eliran Glazer

Sure, Derrick. is This Eliran.

either transaction like begin top-down we more. more So we we now then that and with to the it land do seeing a way are bigger is and

is doing contributing are that changes this in profile organization, to the are sales do one to organization, that. sales way -- the and it, the are we hiring So also in we now the the

And And on with for the unlock they a are once consolidation monday. doing products, we the are on value additional and other few of hand, years. we they have us adding customers the grew that platform,

other We terms are replacing vendors of in switching.

the we're something more. more ago would we say, that and is I seeing I started think X.X years trend, and see, now this about So to

solution platform, of And needs, can the it of profile a enterprise that products address as people the and together monday acknowledgment level rete -- the we comes growth have additional the that sorry. with the of solution

Operator

from line Ittai comes question Kidron Next with of Oppenheimer. the

Ittai Kidron

give second Maybe the on see your couple us breadth color Derrick's risk on question then following cannibalization of for a AI to those in guess, seat more the of on small of question How you the ones wild? could expansion XX,XXX any you with I A AI. XX,XXX-plus is of of bit little And seats, And adoption regarding me. see customers? are the there. the Do seat many great solutions?

Eran Zinman

It's Eran. Yes.

potential this had we continue we those think deals for quarter, more base So also see more like like have mentioned, deals. look, that. and overall, Eliran We to I for customer larger expansion definitely potential within existing our

over hard kind might to predict So as something that it's few because XXXX. quarters, definitely in it's happen happening a well but of

if work so mentioned, to manual more on that AI or consumption seats it's on decision, and because and place not a to processes, regardless but AI, they're to the adding on Roy kind of people like not. some predict to we want automate we Regarding can fact a made that of replace hard long-term based scale trends, people the able be

pricing consumption. on for a the sense to of us based made that So lot base

we the think offer a for on necessarily based different seat So people. not that capability cannibalize just it I but and have, don't count will customers our of path usage

Operator

Next question from D.J. Hynes Canaccord. with

David Hynes

a product slides where deck, So is one want here, do work on slide lists your to in as it initiative. expanding go from the the we lines of core key

So picture question, thoughts? like that where does I begs the big guess Any go monday next?

Roy Mann

Yes.

So question, the Roy. it's general

products, and thing each So to our into a CRM, rely Eliran is deepening one deepen what you like robustness released of marketing big each conscious more, the more decision the on our scalability, one the of products took Like can that in really suite like platform a solution. it we everything. one mentioned, we itself,

predictable, is being sell we're people also their of AI portfolio Blocks have. in accelerates to that huge project we really to in one offering. then deepen embedding products but want the into a each of management, AI it is markets thing. massive way go And for we all more. the vision And Like one the way like a more we so after them, turn also will have within and example, CRM help

a have road more, clear better we giving so and of the just map like deeper. faster, And same very value

Operator

Ader Markets. Jackson Next question KeyBanc is Capital from with

Jackson Ader

the questions sales-led function. growth my around So are

you multiproduct and puts might generally more sales curious some that elongate as on how complex. you cycles just guys are sales things up begin Just deals cycles managing make the takes and to stack

curious the sales So you're blocking tackling and just cycles? doing those about I'm basic around

And what the the the should to of the of growth thing of sales-led other enterprise Is would a be maybe there yes, to then sales-led is if split see be best or indicator we lands into. we out tuning the kind customer should of efficacy way customers versus is, be motion like the XX,XXX graduates out? into the some existing XXX,XXX, or that of growth just all working but that for motion that out kind looking really KPIs

Eran Zinman

Yes. Jackson, it's Eran.

your the part regarding So of question the product. about first

this. So thought a put of definitely, lot we into

et So things. for some have campaigns, cetera. I a customers combination One, CRM products, for service, management, of land we landing say some our would work few for a it's marketing multiple debt

they things works, those basically the to of scale each based new specialized way we demand So that the on products that chose. one the customers, product. and that those And see now, right on we are products just depending scale for handling have we it the teams

have that our are And relationship that, identify conversation. expansion, then departments in new opportunity to addition organization identify when already and they managers engaged and it's or for through we the whether that by the an system, of whether with account for one joining big customers brand it's people

area, We overlaid, whether in and specialize called that people it's have which helps functions on. them CRM with those special cross-sell so basically or service

kind with in the the them help deals organization. they close initial of And decision-makers

just depending and on process own scale phase sales sales of their have them for that kind go of of that kind in this, terms help different shaping an functions and build creating the autonomy we So of through the strategies. really we're to

about think the to mentioned And your enterprises. the part you sales second and question then scaling of larger I org to about -- selling

deals So also segment. executives, AEs, to there, account we new close each have for

So from it's enterprise, sales we totally and SMB, some mid-market each have some one. a process and different for

segmentation And the account we for have same managers.

of kind company the the and on dynamics in takes we business of have it on also size. segmented the sales the each to of And based terms for products deal. So kind process and then based different time one, close we really

So time. evolve this and think kind it obviously, is will over of how this we now about

Operator

with Berg Scott from is question Next Needham.

Scott Berg

the is strategy, workforce Really on the initiatives nice here. your my I of quarter digital here. question part guess AI

customers work. vendors have, we've they of make many halo maybe other having really created different of this when release agents. it's effect And the seen kind a to year, solution components for buy to more those For agents

platform kind to or in enable they the functionality parts this? or the of other platform need year, digital does customer work the I on what technology? to core that management this there this just is guess, of the system pieces really you If agents also here need create the about it add-ons purchase workforce to monday Is think

Roy Mann

It's Roy.

see you everything. it's like as it agent, across we to Work When OS, love know. with agents on an of like, top you'd work So another layer meaning the

I First all, it but power of of of think that's control knows, want you'd And to be what eventually it okay? love a you lot product, monday. across to the

agent monday to lot the want a of a say create products. Let's you expert different dashboard across

able that. to be do will it So

And part monetization yet. didn't plan for that have -- a we we for have so don't

it opened I think we up.

will once have see okay? we agents, we in the different future the So

want perform of top you'd of do to things the powerful and of will just with can And be things. across it's the them agents and I'm us do like our because to monday different excited can about of those build And communicate platform, with this each lot talk more. one think I because really a agents lot marketplace, of them and that so for do and to kind a for achieve able a things like obviously, them it's massive things platform opportunity way a on you not

Operator

Taylor Next UBS. question McGinnis with from

Taylor McGinnis

Just focusing NRR. the outlook stable for on

the math be trailing seems in-period number is that NRR to an higher than XX-month to pointing So XX% the metric.

that, Are maybe I up second, and expansions see be that And more NRR that not seeing It cross-sell Is upmarket. first, true? guess, this seat given then you recover trend macro? seems in conservatism? couldn't So why up? the just that opportunity just is biased we yet would focus

you puts there? understand and us help takes some So Eliran, of can just the

Eliran Glazer

Eliran. is This Taylor. Sure, Yes.

anticipated first initially transparent NDR we were very than in very about faster So about been and we've XXXX, we it. of improving all, encouraged back

the on not of global are other headwinds, outlook we're recent a woods. demand On -- NDR volatility terms adopting macroeconomic in -- are we war economy uncertainty, are the places, more cautious I given and hand, because some in think out headwinds not bit of yet yet the we

to we're front. on trying more prudent So that be a bit .

Operator

Scotiabank. comes of Allan Verkhovski question line the next with Our from

Allan Verkhovski

customer be AI relative on years your an map, you average talk their to Can what cost? a you product seat thinking are about how, from credits spending license how few about could based now, road AI for

Roy Mann

we Really, more love That's it. see able answer released like those questions. so we'll data to from kind predicting We'd future of the be to customers, just question.

really So I say. can't

Sorry.

Operator

today's you And the gentlemen, for question-and-answer all and concludes call. Thank that ends conference joining. session. this Ladies

disconnect. You now may

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.