Monday.com Ltd. · NASDAQ:MNDY
Monday.com — Investor Day (December 2023)
132 slides from Monday.com's investor day presentation, Dec 6, 2023
Slide 1: Investor day 2023
7.Mo! Investor day 2023
Slide 2: Agenda
Agenda. Opening remarks Byron Stephen — Director, Investor Relations 01 Strategic vision Roy Mann & Eran Zinman — Co-Founders & Co-CEOs 02 Product strategy Daniel Leyera — Chief Product & Technology Officer 03 Go-to-market overview Yoni Osherov — Chief Revenue Officer 04 Financial strategy Eliran Gl
Slide 3: Safe harbor
Safe harbor This presentation has been prepared by monday.com Ltd. (“we,” “us,” “our,” “monday.com” or the “Company”). This presentation (including oral commentary that accompanies this presentation) contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Priv
Slide 4: Strategic vision
Strategic vision Roy Mann & Eran Zinman Co-Founders & Co-CEOs
Slide 5: 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 Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 6: 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. Strategic
Slide 7: Ultimately, it slows them down
Ultimately, it slows them down. Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 8: A platform to run the core of all work
What is monday.com? A platform to run the core of all work. Work OS platform powered by mondayDB Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 9: It's been an amazing journey so far
It’s been an amazing journey so far FY23 estimates $835M+ 2M+ ~25% ~7% Annual recurring Monthly active Free cash flow Non-GAAP revenue (ARR)* paying people (MAPP)* margin** operating margin** ~40% ~225K $1.0B+ 1,800+ Revenue growth*** Customers Cash and cash Employees equivalents Strategic vision |
Slide 10: We have quickly built a strong, diverse customer base
We have quickly built a strong, diverse customer base Total customers +26% Customers CAGR 2019-2023F Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 11: Spanning across 200+ industries
Spanning across 200+ industries Construction Consulting Design Education Legal HR Industrials Energy Finance Healthcare Marketing Retail Publishing Media Real estate Technology Telecoms & many more… Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 12: In 200+ markets around the world
In 200+ markets around the world % of revenue in Q3 2023 Strategic vision | Product strategy | Go-to-market overview | Financial strategy Note: data as of the end of Q3 FY23
Slide 13: Our vast customer base enables us to grow fast
Our vast customer base enables us to grow fast Total revenue +75% Revenue CAGR 2019-2023F Strategic vision | Product strategy | Go-to-market overview | Financial strategy Note: FY23 guidance calls for total revenue of $723M-$725M
Slide 14: While improving efficiency
While improving efficiency Operating margin Non-GAAP +9,800 bps Operating margin improvement 2019-2023F Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 15: The drivers of our product success
The drivers of our product success Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 16: monday.com is unique. Built like no other software.
monday.com is unique. Built like no other software. Platform Full control Flexible & simple Built as a true platform, with Allows customers to adapt the Able to scale with the all Work OS products sharing software on their own, giving business and adapt to a common code base them full control changi
Slide 17: monday.com is unique. Built like no other software.
monday.com is unique. Built like no other software. Platform Full control Flexible & simple Built as a true platform, with Allows customers to adapt the Able to scale with the all Work OS products sharing software on their own, giving business and adapt to a common code base them full control changi
Slide 18: monday.com is unique. Built like no other software.
monday.com is unique. Built like no other software. Platform Full control Flexible & simple Built as a true platform, with Allows customers to adapt the Able to scale with the all Work OS products sharing software on their own, giving business and adapt to a common code base them full control changi
Slide 19: The platform is the product
the platform is the product & the product is the platform Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 20: Multi-product strategy
Multi-product strategy Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 21: Our current multi-product offering
Our current multi-product offering monday WorkCanvas monday WorkForms Work OS platform powered by mondayDB Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 22: Their early growth has been phenomenal
Their early growth has been phenomenal monday sales CRM monday dev ARR growth vs. monday.com ARR growth vs. monday.com dev - 4X sales CRM - 22X monday.com - 4X monday.com - 6X 0 5 10 15 0 2 4 6 8 10 # of months after wide release # of months after wide release Strategic vision | Product strategy | G
Slide 23: Introducing monday service
Introducing monday service ● Ticket management ● CSAT ● Portal ● SLA management ● Asset management COMING SOON!
Slide 24: Expanding our product offering
Expanding our product offering monday service monday WorkCanvas monday WorkForms Work OS platform powered by mondayDB Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 25: Large and growing Total Addressable Market (TAM)
Large and growing Total Addressable Market (TAM) Collaborative applications 14% WM $45B ● ● Project and portfolio management CAGR ● Sales force productivity and management CRM $30B ● Marketing campaign management ● Customer service ● Application development DEV $17B ● System and service management ●
Slide 26: Expanding upmarket
Expanding upmarket Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 27: Sales and partner network has driven larger adoptions
Sales and partner network has driven larger adoptions $50k+ ARR customers* 132% CAGR 2019-2023F Strategic vision | Product strategy | Go-to-market overview | Financial strategy *Data as of the last day of each fiscal year
Slide 28: Superior product performance at scale with mondayDB
Superior product performance at scale with mondayDB 2023 2024 2025 Speed Scale Premium NEXT MILESTONE JUN NOV DEC MAR SEP MAR mondayDB 1.0 mondayDB 1.1 mondayDB 1.2 mondayDB 2.0 mondayDB 2.1 mondayDB 3.0 Large boards Large dashboards New monday API 100K items per Smarter Premium loaded at <4 Loaded
Slide 29: Our largest seat count
Our largest seat count Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 30: Democratizing AI
Democratizing AI Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 31: Giving anyone the power to build AI applications
Giving anyone the power to build AI applications Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 32: Giving anyone the power to build AI applications
Giving anyone the power to build AI applications AI assistant AI automation blocks AI bots marketplace marketplace marketplace Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 33: The future of monday.com
The future of monday.com Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 34: 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 Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 35: 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 Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 36: 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 Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 37: Key takeaways
Key takeaways monday.com is a true platform company, 1 allowing us to open product lines easily and efficiently. 2 mondayDB can handle larger and more complex use cases, supporting our expansion upmarket. 3 Our core product portfolio is growing fast and building market share. 4 We operate in multipl
Slide 38: What you will hear today
What you will hear today 1 Product Our unique platform infrastructure and team culture allows us to innovate quickly and build best-in-class solutions that customers love. Go-to-Market 2 Our GTM continues to evolve as we invest in expanding our global sales and partner networks to serve more custome
Slide 39: Product strategy
Product strategy Daniel Lereya Chief Product & Technology Officer
Slide 40: Rapid product innovation; the future of monday.com Work OS
01 02 Rapid product innovation The future of monday.com Work OS Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 41: It's all about rapid innovation
It’s all about rapid innovation. 01 Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 42: Unprecedented execution and innovation pace
Unprecedented execution and innovation pace Total revenue Strategic vision | Product strategy | Go-to-market overview | Financial strategy *Estimate for FY23 Note: FY23 guidance calls for total revenue of $723M-$725M
Slide 43: A product that people love and use for their core work
A product that people love and use for their core work A single work week for monday.com users “The high degree of personalization available on Monday.com is its most notable quality. Users are 1.3M 11.3M not limited by the platform's predefined structure New boards, columns, Items marked as but rat
Slide 44: monday.com named a Leader
monday.com named Gartner® Magic Quadrant™ for a Leader. Adaptive Project Management and Reporting Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designat
Slide 45: What makes our execution exceptional?
What makes our execution exceptional? 1. Unique product 2. Underlying 3. High performing architecture technology team culture Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 46: What makes our execution exceptional?
What makes our execution exceptional? 1. Unique product 2. Underlying 3. High performing architecture technology team culture Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 47: Our unique product architecture enables us to build superior products
Our unique product architecture enables us to build superior products rapidly and efficiently Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 48: A robust and mature platform is the cornerstone
1 — Unique product architecture A robust and mature platform is the cornerstone of our product architecture Platform Data building Visualization Logic building Over the past 10 years, we have built a strong blocks: boards and columns, boards building blocks: board views, widgets, blocks: automations
Slide 49: Our platform is not an infrastructure, it's the product
1 — Unique product architecture Our platform is not an infrastructure, it’s the product Our low-code/no-code building blocks allow everyone to build their own software, with the same interface. Our users have built solutions for thousands of use cases, across 200+ industries. This allows us to learn
Slide 50: Each Work OS product adds a thin layer on the platform
1 — Unique product architecture Each Work OS product adds a thin layer built 20% CRM dedicated features on top of the platform Platform All Work OS products are built on top of the platform, sharing 80% of the same code. Data building Visualization Logic building blocks: boards and building blocks:
Slide 51: One flexible platform, many Work OS products
1 — Unique product architecture monday One flexible platform, work management many Work OS products work management dedicated features Platform Our customers get maximum value from the combination of both the product and the Data building Visualization Logic building blocks: boards and building bloc
Slide 52: One flexible platform, many Work OS products
1 — Unique product architecture monday One flexible platform, dev many Work OS products dev dedicated features Platform Our customers get maximum value from the combination of both the product and the Data building Visualization Logic building blocks: boards and building blocks: blocks: platform. co
Slide 53: One flexible platform, many Work OS products
1 — Unique product architecture monday One flexible platform, sales CRM many Work OS products CRM dedicated features Platform Our customers get maximum value from the combination of both the product and the Data building Visualization Logic building blocks: boards and building blocks: blocks: platfo
Slide 54: Each Work OS product leverages monday.com's key advantages
1 — Unique product architecture Each Work OS product leverages monday.com’s key advantages Based on real customer reviews on G2.com Easy-to-use Robustness Flexibility Customizable Being able to customize The CRM feature in It is super versatile. The CRM and platform at things quickly and easily mond
Slide 55: One flexible platform, supercharging all of our products
1 — Unique product architecture One flexible platform, supercharging all of our products Efficient execution and fast time Work OS products are superior to market ● Adding an additional Work OS product ● Our key differentiators are flexibility and requires relatively minimal effort, by a user experi
Slide 56: What makes our execution exceptional?
What makes our execution exceptional? 1. Unique product 2. Underlying 3. High performing architecture technology team culture Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 57: Our technology is fundamentally different
Our technology is fundamentally different. Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 58: This is how traditional software is built
2 — Underlying technology This is how traditional software is built In traditional software architecture, you start with defining the database, then build a UI to reflect it. Rigid database schema Rigid application structure Strategic vision | Product strategy | Go-to-market overview | Financial str
Slide 59: This is how traditional software is built
2 — Underlying technology This is how traditional software is built In traditional software architecture, you start with defining the database, then build a UI to reflect it. DB schema is typically rigid. Every change requires developers to do massive work and is often risky. Rigid database schema R
Slide 60: At monday.com, we built it the other way around
2 — Underlying technology At monday.com, we built it the other way around Our DB schema is built dynamically by our users, allowing full flexibility in the application. No-code building blocks which allows Underlying DB is schemaless, full flexibility in the application built dynamically by our user
Slide 61: At monday.com, we built it the other way around
2 — Underlying technology At monday.com, we built it the other way around Our DB schema is built dynamically by our users, allowing full flexibility in the application. Underlying DB is schemeless, No-code building blocks which allows built dynamically by our users full flexibility in the applicatio
Slide 62: What makes our execution exceptional?
What makes our execution exceptional? 1. Unique product 2. Underlying 3. High performing architecture technology team culture Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 63: 'Builders' is an organizational structure optimized for speed
3 — High performing team culture ‘Builders’ is an organizational structure optimized for speed Builders Multi-disciplinary teams of engineers, designers, product managers, and data analysts Product Empowered to make fast, independent decisions Data Design Teams are small, autonomous, and agile Engin
Slide 64: Quick-to-market, efficient, and high-quality execution
3 — High performing team culture Quick-to-market, efficient, and high-quality execution Product 1 Extreme ownership and alignment Engineers Team KPIs Analysts 2 Fast and iterative execution 3 Data and impact driven, with real-world KPIs Design Strategic vision | Product strategy | Go-to-market overv
Slide 65: Quick-to-market, efficient, and high-quality execution
3 — High performing team culture Quick-to-market, efficient, and high-quality execution We launch a new version of monday.com every day 1 Extreme ownership and alignment 2 Fast and iterative execution 3 Data and impact driven, with real-world KPIs Shorter feedback loop → faster execution Strategic v
Slide 66: Quick-to-market, efficient, and high-quality execution
3 — High performing team culture Quick-to-market, efficient, Real-world feedback and high-quality execution monday.com community Data A K 1 Extreme ownership and alignment Yuly Roberman 2 Fast and iterative execution Tech Lead Internal feedback 3 Data and impact driven, with real-world KPIs Facebook
Slide 67: The future of monday.com Work OS
The future of monday.com Work OS 02 Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 68: Our mission
Our mission Drive the core of all work for information workers around the world. Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 69: Product offering today
Product offering today monday WorkCanvas monday WorkForms Work OS platform powered by mondayDB Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 70: What's next
What’s next Products Resource Product discovery & Sales pipeline Help desk management planning management Portfolio Sprint management Customer support Portal Standalone management monday OKRs & goals QA & bug tracking Email campaigns Asset management WorkCanvas monday WorkForms Work OS platform mond
Slide 71: Bigger TAM, bigger customers, wall-to-wall deployments
Bigger TAM Bigger customers Wall-to-wall deployments Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 72: How are we going to get there?
How are we going to get there? Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 73: Product focus areas to accelerate growth
Product focus areas to accelerate growth. ENTERPRISE-GRADE PRODUCT SUITE ECOSYSTEM WORK OS PLATFORM A strong Work OS platform for Going deeper in each product Open platform that allows both small and large organizations offering to make them best-in- customers and external builders to is the basis f
Slide 74: Product focus areas to accelerate growth
Product focus areas to accelerate growth. ENTERPRISE-GRADE PRODUCT SUITE ECOSYSTEM WORK OS PLATFORM A strong Work OS platform for Going deeper in each product Open platform that allows both small and large organizations offering to make them best-in- customers and external builders to is the basis f
Slide 75: Breaking barriers with our new mondayDB infrastructure
Breaking barriers with our new mondayDB infrastructure Built for scale, speed, Faster load times Bigger boards and Supports larger and and flexibility dashboards more complex use cases Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 76: Rollout of mondayDB is on schedule
Rollout of mondayDB is on schedule 2023 2024 2025 Speed Scale Premium NEXT MILESTONE JUN NOV DEC MAR SEP MAR mondayDB 1.0 mondayDB 1.1 mondayDB 1.2 mondayDB 2.0 mondayDB 2.1 mondayDB 3.0 Large boards Large dashboards New monday API 100K items per Smarter Premium loaded at <4 Loaded at <5 capabilitie
Slide 77: 5x faster: strong results with boards
Showing strong results with boards Median board load time Large and complex boards load up to Slower 5x Before mondayDB seconds 5x faster FASTER Faster After mondayDB 0 5K 10K 15K total # of items + subitems + linked items Strategic vision | Product strategy | Go-to-market overview | Financial strat
Slide 78: 4x faster: strong initial results with dashboards
And strong initial results with dashboards Median dashboard load time Large and complex dashboards load Slower Before 4x mondayDB 4x faster seconds 3x faster After FASTER Faster mondayDB 0 5K 10K 15K 20K total # of items + subitems + linked items Strategic vision | Product strategy | Go-to-market ov
Slide 79: Taking enterprise-grade platform admin and security to the next level
Taking enterprise-grade platform admin and security capabilities to the next level Workflow standardization Enhanced security Multi-layer permission User management at & governance management scale Providing a toolkit for efficient Enabling our largest customers Introducing new layers of data New us
Slide 80: Supercharging our platform with AI
Supercharging our platform with AI OUR APPROACH We’re in a unique position to make technology accessible, democratizing the power of AI. OUR PLANS All 3 tracks will be open for extension by external developers. Portfolio Management Resource Allocation Product strategy — Daniel Lereya | Chief Product
Slide 81: Product focus areas to accelerate growth
Product focus areas to accelerate growth ENTERPRISE-GRADE PRODUCT SUITE ECOSYSTEM WORK OS PLATFORM A strong Work OS platform for Going deeper in each product Open platform that allows both small and large organizations offering to make them best-in- customers and external builders to is the basis fo
Slide 82: monday work management
monday work management ADVANTAGES KEY STATS ● Complete solution to manage all aspects of work, from management goals to daily tasks, at any scale 2014 $45B +16% Launch 2023 TAM* TAM CAGR ● Quickly connect departments to power cross-team (2023-2026) collaboration and processes ● Streamline operations
Slide 83: monday sales CRM
monday sales CRM ADVANTAGES KEY STATS ● Unified CRM to manage full customer lifecycle - from lead to post-sale activities 2022 $30B ~$25M Launch 2023 TAM* ARR ● Quick setup and intuitive adoption ● Can be customized by anyone to fit any workflow ● Strong reporting capabilities - colorful and innovat
Slide 84: monday dev
monday dev ADVANTAGES KEY STATS ● Holistic solution for the entire product development lifecycle (product, dev, design) 2023 $17B ~1,300 Launch 2023 TAM* Paying accounts ● Full collaboration between product & delivery teams and the business stakeholders & GTM teams ● Can be customized by anyone to f
Slide 85: monday service
monday service KEY STATS WHY MONDAY SERVICE? Late 2024 Expected Launch $9B +10% Competitive landscape 2023 TAM* TAM CAGR (2023-2026) Like CRM, current market solutions are either simple to use but rigid, or flexible yet complex. Product market fit WHAT TO EXPECT? Our platform, with the addition of W
Slide 86: Product focus areas to accelerate growth
Product focus areas to accelerate growth ENTERPRISE-GRADE PRODUCT SUITE ECOSYSTEM WORK OS PLATFORM A strong Work OS platform for Going deeper in each product Open platform that allows both small and large organizations offering to make them best-in- customers and external builders to is the basis fo
Slide 87: Enhancing capabilities with app marketplace
Enhancing capabilities with app marketplace Open API 393 218 700K+ 40% access for developers marketplace apps apps collecting app installs of customers installed at and customers payments least one app Strategic vision | Product strategy | Go-to-market overview | Financial strategy Note: data as of
Slide 88: Key takeaways
Key takeaways 1 Built as a schemeless platform from day 1, with unique underlying technology. 2 The Work OS platform is enterprise-grade, powered by mondayDB. Developing Work OS products on top of the 3 platform is highly efficient and allows fast time-to-market. 4 We build highly flexible, best-in-
Slide 89: Go-to-market overview
Go-to-market overview Yoni Osherov Chief Revenue Officer
Slide 90: Go-to-market evolution
Go-to-market evolution Enterprise expansion Performance and multi-product marketing- Established B2B growth driving wall-to- driven Opened marketing wall deployments and organization London office organization increased ACV* 2017 2019 2022 Future 2018 2020 2023 Established Opened Sydney Established
Slide 91: In five years we transformed the business model
In five years we transformed the business model 2018 2023 SMB-focused SMB + mid-market + enterprise Self-serve only Self-serve supported by sales + partners Performance marketing only Land and expand + B2B marketing Largest accounts ~$50K Largest accounts >$1M Bottom-up focus Bottom-up + top-down St
Slide 92: Shift in ARR channel distribution
Shift in ARR channel distribution provides better retention & stickiness Added ARR* channel composition Strategic vision | Product strategy | Go-to-market overview | Financial strategy * Gross added ARR
Slide 93: Serving ~225K customers across 200+ industries
* Serving ~225K customers across 200+ industries *FY23 estimate Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 94: Global expansion of CRO to address customer demand
Global expansion of CRO to address customer demand London Chicago Warsaw New York Denver Tel Aviv Tokyo Miami São Paulo Sydney Melbourne monday.com offices Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 95: Supported by a robust global partner network
Supported by a robust global partner network 210 active channel partners* ~2K referral partners* *Data as of Q3 FY23 Countries with with partner presence monday.com offices Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 96: Winning combination: bottom-up machine with top-down motion
Winning combination: our efficient bottom-up machine with a top-down motion is driving optimal results Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 97: Efficient bottom-up flywheel motion
Efficient bottom-up flywheel motion Thousands of signups a day Huge market reach - 200K+ signups/month Filter self-serve or sales Multiple entry points to an organization Engage Bottom-up approach Attract Fueled by sales and customer success to drive expansion Delight and expand Strategic vision | P
Slide 98: Landing and expanding with large enterprises
Landing and expanding with large enterprises Case study Large U.S. gaming company Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 99: Efficient performance marketing driven by BigBrain
BIGBRAIN our internal business intelligence tool ● The foundation of our data driven Efficient culture performance ● Supports consistent cash-on-cash return in <12 months marketing - driven by our BigBrain capabilities Meet BigBrain Strategic vision | Product strategy | Go-to-market overview | Finan
Slide 100: Our top-down sales motion continues to mature
Our top-down sales motion continues to mature Top-down Targeting end-users Targeting decision makers Marketing-driven Sales-driven Focus on flexible solutions Focus on verticalized products Bottom-Up Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 101: Expansion is driving the majority of growth
Expansion is driving the majority of growth % of added ARR* Expansion 42% New business 69% 58% 31% 2019 2023F Strategic vision | Product strategy | Go-to-market overview | Financial strategy * Gross added ARR
Slide 102: Leading to more customers with higher seats and ARR
Leading to more customers with higher seats and ARR $50k+ ARR customers $100k+ ARR customers 132% CAGR 167% CAGR % of ARR 5% 11% 20% 27% 32% 2% 5% 12% 17% 20% Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 103: Double Annual Contract Value (ACV) by 2026
Double Annual Contract Value (ACV) by 2026 01 02 03 Expansion opportunities Cross-sell and upsell Pricing adjustment Strategic vision | Product strategy | Go-to-market overview | Financial strategy Note: for definition of ACV, see Appendix
Slide 104: Significant untapped expansion opportunity
1 — Expansion opportunities Significant untapped expansion opportunity Untapped Fortune 500 potential 61% of Fortune 500 are monday.com customers Average seat size for Fortune 500 customers is ~275 seats <1% Avg. penetration within Fortune 500 10% of the Fortune 500 is using either customers monday
Slide 105: Large cross-sell & upsell opportunities
2 — Cross-sell and upsell Large cross-sell & upsell opportunities Multi-product Add-ons monday monday work management service Automation pack monday monday Emails and dev sales CRM activities Premium support Untapped opportunity Approx. ⅓ of monday customers have used a CRM or DevOps template in 202
Slide 106: Positive signs for cross-selling motion
2 — Cross-sell and upsell Positive signs for cross- selling motion CRM & Dev paying The ACV of +974% these accounts is ~1.7x accounts from cross-sell YoY the avg. ARR Strategic vision | Product strategy | Go-to-market overview | Financial strategy Note: for definition of ACV, see Appendix
Slide 107: Pricing strategy and updates
3 — Pricing adjustment Pricing strategy and updates 2024 PLANS FUTURE PLANS Added significant value in recent years 01 Market conditions and competitive landscape Product-specific pricing call for a price adjustment 02 Plan to roll out adjustments gradually in H2-FY24 for new and existing customers
Slide 108: Our partner ecosystem: a crucial contributor to our success
Our partner ecosystem: a crucial contributor to our success ~20% 8/10 of added ARR* Driving strategic Top marketplace apps* Building packaged services through GSI built by partners solutions Note: FY23 estimate (actual estimate 19%) *Gross added ARR *Top apps by ARR Examples of packaged solution by
Slide 109: Customer satisfaction is high and improving
Customer satisfaction is high and improving 4.7 18 "monday.com is powerful, flexible, and easy to use." Score Awards "A Powerful and User- Friendly CRM Solution for Sales Excellence" Avg. in G2 G2 2023 "Easy for everyone to use crowd reviews Best Software Awards from Ops to Developers" Source: G2.co
Slide 110: Key takeaways
Key takeaways 1 Strong flywheel model augmented with a top- down sales and partner GTM motion. 2 Successfully maturing up-market. 3 Massive untapped opportunity to further expand within our base. 4 Plan to 2x ACV by 2026 through expansion opportunities, cross-sell and upsell, and pricing. Strategic
Slide 111: Financial strategy
Financial strategy Eliran Glazer Chief Financial Officer
Slide 112: 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 across Track record of strong execution, new markets and build share in industries, geographies, and with durable revenue growth, large and growing
Slide 113: New customer demand has been consistently strong
New customer demand has been consistently strong Total customers 26% CAGR 2019-2023F Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 114: Durable growth across all cohorts
Durable growth across all cohorts Note: This chart illustrates the total ARR of each cohort as of September 30, 2023 over the periods presented. Each cohort represents customers who made their first purchase from us in a given year. For example, the 2022 cohort includes all customers that made their
Slide 115: ARR trends reflect more upmarket adoption
ARR trends reflect more upmarket adoption % of ARR - contract size % of ARR - contract duration % of ARR - customer type* Strategic vision | Product strategy | Go-to-market overview | Financial strategy *Segments defined by company size. SMB = less than 100 employees; mid-market = 100-1,500 employee
Slide 116: Signs of stabilization in net dollar retention (NDR)
Signs of stabilization in net dollar retention (NDR) All customers $50k+ customers $100k+ customers Strategic vision | Product strategy | Go-to-market overview | Financial strategy Note: For definition of NDR, see Appendix
Slide 117: New demand and expansion has driven robust revenue growth
New demand and expansion has driven robust revenue growth Total revenue Total revenue 75% CAGR 2019-2023F Strategic vision | Product strategy | Go-to-market overview | Financial strategy Note: FY23 guidance calls for total revenue of $723M-$725M
Slide 118: monday.com is running on a super efficient business model
monday.com is running on a ● Competing and winning in multiple product areas with low super efficient incremental costs business ● Every product is a thin layer on top of the Work OS platform, model making it cost-efficient to launch new products ● Enhancements and upgrades to the platform benefit a
Slide 119: As we scale, our efficiency continues to improve
As we scale, our efficiency continues to improve Non-GAAP operating margin Non-GAAP profitability 2023. Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 120: Maintaining strong cash generation
Maintaining strong cash generation Adjusted free cash flow (FCF) margin FCF (Non-GAAP) at historical highs Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 121: Industry-leading financial performance
Industry-leading financial performance A rule of 60+ company Strategic vision | Product strategy | Go-to-market overview | Financial strategy Note: FY23 guidance calls for total revenue of $723M-$725M
Slide 122: Investment priorities for growth
Investment priorities for growth Total headcount TALENT Investing in global R&D, product, and sales WORK OS PLATFORM Investing in infrastructure and enhancing capabilities PRODUCT SUITE Investing in existing and new products EXPANDING ECOSYSTEM Investing in the marketplace, AI, and other building bl
Slide 123: Financial framework
Financial framework FY23 guidance FY 2024 - 2026 guidance Deteriorating macro Base Case Improving macro Revenue growth YoY%** 39%-40% Mid 20s High 20s / Low 30s Mid 30s Gross margin* High 80s High 80s High 80s Mid / High 80s R&D % of revenue* Mid teens Mid teens High teens High teens S&M % of revenu
Slide 124: We expect to generate $1 billion in free cash flow from 2023-2026
We expect to generate $1 billion in free cash flow from 2023-2026. Strategic vision | Product strategy | Go-to-market overview | Financial strategy
Slide 125: Capital allocation focused on building market share
Capital allocation focused on building market share 1 Investing in organic growth ● Platform infrastructure 2 Inorganic M&A ● Small tuck-in acquisitions 3 Share repurchases ● Long-term consideration ● Product suite offerings ● Fill out our product roadmap ● Sales and marketing ● Grow in talent and t
Slide 126: Key takeaways
Key takeaways 1 We have a strong track record of delivering on our business and financial objectives. 2 We are well positioned to continue driving efficient growth and long-term shareholder value. 3 Top-line growth and building market share remain our top priorities. 4 We expect to surpass $1 billio
Slide 127: Executive Q&A
#4. MONAAY.<om Executive Q&A @OHOaN awlemets
Slide 128: Appendix
Appendix Supplementary materials
Slide 129: Definitions
Definitions (1) Annual recurring revenue (“ARR”) is defined to mean, as of a measurement date, the annualized value of our customer subscription plans assuming that any contract that expires during the next 12 months is renewed on its existing terms. (2) Monthly active paying people (“MAPP”) measure
Slide 130: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted free cash flow ($ in millions) FY-19 FY-20 FY-21 FY-22 Net cash provided by (used in) operating activities (36.7) (37.2) 16.4 27.1 Purchase of PP&E (1.4) (4.4) (11.6) (16.0) Capitalized software development costs (0.3) (1.1) (2.2) (3.0) Purchase
Slide 131: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Non-GAAP operating loss ($ in thousands) FY-19 FY-20 FY-21 FY-22 Reconciliation of gross profit: GAAP gross profit 66,111 138,635 269,137 452,501 Add: Share-based compensation 970 2,720 7,681 10,406 Non-GAAP gross profit 67,081 141,355 276,818 462,907 Re
Slide 132: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Non-GAAP operating loss (cont.) ($ in thousands) FY-19 FY-20 FY-21 FY-22 Reconciliation of operating expenses (cont.): GAAP general and administrative 15,458 54,339 53,493 85,401 Less: Share-based compensation 8,190 39,415 20,934 28,100 Non-GAAP general