Slide 1: Q2 FY24 Earnings
4. MONdAY.om Q2 FY24 Earnings
Slide 2: 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 3: Q2-24 financial highlights
Our success by the numbers Strong revenue growth Q2-24 financial highlights $ millions $236 $236M 34% Revenue YoY revenue growth $217 $203 43% 114% YoY increase in customers Net dollar retention rate* of $189 with $50k+ ARR* to 2,713*** customers with $50k+ ARR*** $176 91% $51M Gross margin** Free c
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
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.
Slide 6: 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
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
Slide 8: Strong, diverse customer base
Strong, diverse customer base Total customers 225K 114K 152K 186K +26% Customers 90K CAGR 2019-2023 FY-19 FY-20 FY-21 FY-22 FY-23 Note: data as of the end of each year
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…
Slide 10: In 200+ markets around the world
In 200+ markets around the world % of revenue Note: data as of the end of Q2 FY24
Slide 11: Increasing number of enterprise customers
Increasing number of enterprise customers Customers with 10+ users $50k+ ARR customers $100k+ ARR customers 15% YoY Growth 43% YoY Growth 49% YoY Growth 57,203 2,713 1,009 55,515 2,491 911 53,688 2,295 833 52,015 749 2,077 49,936 677 1,892 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24
Slide 12: Ongoing push upmarket
Ongoing push upmarket % of total ARR Customers with 10+ users $50k+ ARR customers $100k+ ARR customers 78% 78% 78% 78% 33% 21% 77% 32% 32% 20% 20% 31% 19% 29% 18% Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Note: for definition of ARR, see Appendix Note:
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
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
Slide 15: Financial overview and update
Financial overview and update
Slide 16: Consistent incremental revenue growth
Consistent incremental revenue growth $ millions Quarterly revenue Annual revenue 34% YoY Growth $236 $217 $730 $203 $189 $176 ’20-’23 CAGR: 65% $162 $150 $519 $137 $124 $108 $96 $83 $308 $71 $161 FY-20 FY-21 FY-22 FY-23
Slide 17: Strong net dollar retention rate
Strong net dollar retention rate All customers 125% 125% 123% 121% 121% 117% 117% 114% 112% 111% 110% 110% 110% 105% 107% 104% 104% Q2-20 Q3-20 Q4-20 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 Note: for definition of net dollar retention rate, see Appendix No
Slide 18: Strong net dollar retention rate
119% 119% 119% 121% 126% 132% 137% Note: data as of the end of each quarter 140% 139% 135% 130% 125% Note: for definition of net dollar retention rate, see Appendix 120% 117% 115% 114% Customers with 10+ users 114% 133% 132% 136% 135% 138% 145% 150% 154% 152% 145% 137% Strong net dollar retention ra
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 9% 10% 10% (53%) 13% 16% (17%) (9%) 8% 56% 54% 54% 56% 51% 113% 79% 69% 57% 16% 15% 16% 16% 16% 19% 17% 18% 16% 8% 8% 9% 8% 8% 9% 11% 11% 9% Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 FY-20
Slide 20: Maintaining strong cash efficiency
Maintaining strong cash efficiency Quarterly free cash flow margin Annual adjusted free cash flow margin 41% 28% 34% 26% 27% 22% 3% 2% (25%) Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 FY-20 FY-21 FY-22 FY-23 Free cash flow amounts to: $45.9M, $64.9M, $55.4M, $89.9M, and Adjusted free cash flow amounts to: ($40.7
Slide 21: Appendix
Appendix Supplementary materials
Slide 22: Definitions
Definitions (1) Annual recurring revenue (“ARR”) is defined to mean, as of a measurement date, the annualized value of our customer subscription plans assuming that any contract that expires during the next 12 months is renewed on its existing terms. (2) We calculate Net Dollar Retention Rate as of
Slide 23: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted free cash flow ($ in millions) FY-20 FY-21 FY-22 FY-23 Net cash provided by operating activities (37.2) 16.4 27.1 215.4 Purchase of PP&E (4.4) (11.6) (16.0) (7.9) Capitalized software development costs (1.1) (2.2) (3.0) (2.6) Purchase of propert
Slide 24: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Free cash flow ($ in millions) Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Net cash provided by operating activities 47.6 66.6 58.5 92.0 55.8 Purchase of PP&E (1.1) (0.8) (2.4) (1.5) (4.5) Capitalized software development costs (0.6) (0.9) (0.7) (0.6) (0.5) Free cash
Slide 25: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Non-GAAP operating income (loss) ($ in thousands) FY-20 FY-21 FY-22 FY-23 Reconciliation of gross profit: GAAP gross profit 138,635 269,137 452,501 649,050 Add: Share-based compensation 2,720 7,681 10,406 6,307 Non-GAAP gross profit 141,355 276,818 462,9
Slide 26: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Non-GAAP operating income (loss) (cont.) ($ in thousands) FY-20 FY-21 FY-22 FY-23 Reconciliation of operating expenses (cont.): GAAP general and administrative 54,339 53,493 85,401 92,733 Less: Share-based compensation 39,415 20,934 28,100 29,747 Non-GAA
Slide 27: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Non-GAAP operating income (loss) ($ in thousands) Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Reconciliation of gross profit: GAAP gross profit 156,163 167,483 180,162 193,459 212,343 Add: Share-based compensation 1,845 1,383 1,602 1,244 1,872 Non-GAAP gross profit 15
Slide 28: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Non-GAAP operating income (loss) (cont.) ($ in thousands) Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Reconciliation of operating expenses (cont.): GAAP general and administrative 21,781 23,211 24,490 25,917 28,633 Less: Share-based compensation 7,129 7,977 7,231 8,33