Monday.com Ltd. · NASDAQ:MNDY

Monday.com — Q1 2025 Earnings Presentation

28 slides from Monday.com's earnings presentation, May 12, 2025

  1. Slide 1: Q1 FY25 Earnings

    @. MONAAY.com Q1 FY25 Earnings _On ee |) oe

  2. Slide 2: Safe harbor

    Safe harbor This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and market positioning. These forward-looking stat

  3. Slide 3: Our success by the numbers

    Our success by the numbers Strong revenue growth Q1-25 financial highlights $ millions $282 $282M 30% $268 Revenue YoY revenue growth $251 $236 38% 116% $217 YoY increase in customers Net dollar retention rate* of with $50k+ ARR* to 3,444*** customers with $50k+ ARR*** 90% $110M Gross margin** Adjus

  4. Slide 4: Traditional work software is broken.

    Traditional work software is broken. Businesses are unable to fulfill their potential because their software is limiting their ability to execute

  5. Slide 5: Businesses have two bad options

    Businesses have two bad options Rigid off-the-shelf point solutions Complex enterprise software Usually designed for SMBs and don’t enable scaling. Huge implementation and maintenance costs. Implementation takes a long time and is very costly. Changes are slow and dependent on tech teams.

  6. Slide 6: What is monday.com?

    What is monday.com? A platform to run the core of all work.

  7. Slide 7: monday.com is unique

    monday.com is unique Built like no other software Platform Full control Flexible & simple Built as a true platform, with Allows customers to adapt Able to scale with the all Work OS products sharing the software on their own, business and adapt to a common code base giving them full control changing

  8. Slide 8: Strong, diverse customer base

    Strong, diverse customer base Total customers +22% 245K 225K 186K 152K Customers 114K CAGR 90K 2019-2024 FY-19 FY-20 FY-21 FY-22 FY-23 FY-24 Note: data as of the end of each year

  9. Slide 9: Customers spanning across 200+ industries

    Customers spanning across 200+ industries Construction Consulting Design Education Legal HR Industrials Energy Finance Healthcare Marketing Retail Publishing Media Real estate Technology Telecoms & many more…

  10. Slide 10: In 200+ markets around the world

    In 200+ markets around the world % of revenue Note: data as of the end of Q1 FY25

  11. Slide 11: Increasing number of enterprise customers

    Increasing number of enterprise customers Customers with 10+ users $50k+ ARR customers $100k+ ARR customers 9% YoY Growth 38% YoY Growth 46% YoY Growth 60,566 58,760 59,214 3,444 57,203 3,201 1,328 55,515 1,207 2,907 2,713 1,080 1,009 2,491 911 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q1-24 Q2-24 Q3-24 Q4-24 Q

  12. Slide 12: Ongoing push upmarket

    Ongoing push upmarket % of total ARR Customers with 10+ users $50k+ ARR customers $100k+ ARR customers 80% 79% 79% 78% 37% 78% 36% 24% 34% 24% 33% 21% 22% 32% 20% Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Note: for definition of ARR, see Appendix Note:

  13. Slide 13: Where do we want to go from here?

    Where do we want to go from here? Becoming the go-to Expanding our core Cultivating a strong work platform for work product lines ecosystem for a business long-tail of use cases

  14. Slide 14: Why own monday.com?

    Why own monday.com? Large growth potential Diverse customer base Strong financial performance Multiple growth levers to capture Expanding customer base Track record of strong new markets and build share in across industries, geographies, execution, with durable revenue large and growing TAMs and com

  15. Slide 15: Financial overview and update

    Financial overview and update

  16. Slide 16: Consistent incremental revenue growth

    Consistent incremental revenue growth $ millions Quarterly revenue Annual revenue 30% YoY Growth $282 ’20-’24 CAGR: 57% $972 $268 $251 $236 $217 $730 $203 $189 $176 $162 $519 $308 $161 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 FY-20 FY-21 FY-22 FY-23 FY-24

  17. Slide 17: Strong net dollar retention rate

    Strong net dollar retention rate All customers 125% 125% 123% 121% 121% 117% 117% 114% 112% 112% 112% 111% 110% 110% 110% 111% 107% Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Note: for definition of net dollar retention rate, see Appendix No

  18. Slide 18: Strong net dollar retention rate

    Q1-22 140% Q2-22 139% Q3-22 135% Q4-22 130% Q1-23 125% Q2-23 120% Note: data as of the end of each quarter Q3-23 117% Q4-23 115% Q1-24 114% Note: for definition of net dollar retention rate, see Appendix Q2-24 114% Q3-24 114% Q4-24 115% Customers with 10+ users Q1-25 115% Q1-22 154% Q2-22 152% Q3-22

  19. Slide 19: Driving operating leverage while investing in growth

    Driving operating leverage while investing in growth Quarterly expenses as a % of revenue Annual expenses as a % of revenue 10% 16% 13% 15% 14% (53%) (17%) (9%) 8% 14% 56% 52% 48% 48% 51% 113% 79% 69% 57% 51% 17% 18% 19% 16% 16% 19% 17% 18% 16% 17% 8% 8% 9% 9% 9% 9% 11% 11% 9% 8% Q1-24 Q2-24 Q3-24 Q

  20. Slide 20: Maintaining strong cash efficiency

    Maintaining strong cash efficiency Quarterly adjusted free cash flow margin Annual adjusted free cash flow margin 41% 39% 30% 28% 33% 27% 22% 3% 2% (25%) Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 FY-20 FY-21 FY-22 FY-23 FY-24 Adjusted free cash flow amounts to: $89.9M, $50.8M, $82.4M, Adjusted free cash flow am

  21. Slide 21: Appendix

    Appendix Supplementary materials

  22. Slide 22: Definitions

    Definitions (1) Annual recurring revenue (“ARR”) is defined to mean, as of a measurement date, the annualized value of our customer subscription plans assuming that any contract that expires during the next 12 months is renewed on its existing terms. (2) We calculate Net Dollar Retention Rate as of

  23. Slide 23: Reconciliation of non-GAAP financial measures

    Reconciliation of non-GAAP financial measures Adjusted free cash flow ($ in millions) FY-20 FY-21 FY-22 FY-23 FY-24 Net cash provided by (used in) operating (37.2) 16.4 27.1 215.4 311.1 activities Purchase of PP&E (4.4) (11.6) (16.0) (7.9) (13.2) Capitalized software development costs (1.1) (2.2) (3

  24. Slide 24: Reconciliation of non-GAAP financial measures

    Reconciliation of non-GAAP financial measures Adjusted free cash flow ($ in millions) Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Net cash provided by operating activities 92.0 55.8 86.6 76.7 112.0 Purchase of PP&E (1.5) (4.5) (3.8) (3.4) (3.7) Capitalized software development costs (0.6) (0.5) (0.4) (0.6) (0.8)

  25. Slide 25: Reconciliation of non-GAAP financial measures

    Reconciliation of non-GAAP financial measures ($ in thousands) FY-20 FY-21 FY-22 FY-23 FY-24 Reconciliation of gross profit: GAAP gross profit 138,635 269,137 452,501 649,050 868,304 Add: Share-based compensation 2,720 7,681 10,406 6,307 6,603 Non-GAAP gross profit 141,355 276,818 462,907 655,357 87

  26. Slide 26: Reconciliation of non-GAAP financial measures

    Reconciliation of non-GAAP financial measures ($ in thousands) FY-20 FY-21 FY-22 FY-23 FY-24 Reconciliation of operating expenses (cont.): GAAP general and administrative 54,339 53,493 85,401 92,733 142,090 Less: Share-based compensation 39,415 20,934 28,100 29,747 37,746 Less: Charitable contributi

  27. Slide 27: Reconciliation of non-GAAP financial measures

    Reconciliation of non-GAAP financial measures ($ in thousands) Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Reconciliation of gross profit: GAAP gross profit 193,459 212,343 225,028 237,474 253,445 Add: Share-based compensation 1,244 1,872 1,881 1,606 1,134 Non-GAAP gross profit 194,703 214,215 226,909 239,080 254

  28. Slide 28: Reconciliation of non-GAAP financial measures

    Reconciliation of non-GAAP financial measures ($ in thousands) Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Reconciliation of operating expenses (cont.): GAAP general and administrative 25,917 28,633 55,637 31,903 32,544 Less: Share-based compensation 8,338 10,451 10,012 8,945 8,445 Less: Charitable contribution t

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