Slide 1: monday.com Work OS
“4. monday om Work OS Changing the way that people work and businesses operate
Slide 2: Safe Harbor Disclaimer
Safe Harbor Disclaimer This presentation has been prepared by monday.com Lid. (“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
Slide 3: Q2-18 Q2-19 Q2-20 Q2-21
$282 $146 $68 $27 Q2-18 Q2-19 Q2-20 Q2-21
Slide 4: Serving teams and organizations of all kinds
Serving teams and organizations of all kinds (2, 2-2 Teams & orgs of all sizes 2 - 7,000 re) 190+ countries 200+ business industries 8) Tech & non-tech industries Land & expand Self-serve + flywheel sales model 14 languages StO] AM —Espafol Portugués pycckun Frangais Deutsch Thousands of use cases W
Slide 5: Traditional work software wasn't working
Traditional work software wasn’t working - Rigid architectures Forcing users to adapt to software rather than the other way around. Development capabilities limited to a select few Creating a lack of speed and agility. Disconnected work tools and applications Causing work silos and loss of informati
Slide 6: Product demo
“@monday.or. Product demo monday.com Work OS Democratizing the power of software Meron
Slide 7: Pioneering a new category of software
Pioneering a new category of software The monday.com Work OS Flexible and adaptable | Built to change and grow with every customer Customizable no-code building blocks | Easy enough for anyone to use One platform to run all aspects of work Where employees run and manage their everyday work Creating
Slide 8: Built like no other software
Built like no other software Simple-to-use building blocks that are powerful enough to drive the core functionality within any organization, in any industry, for any use case.
Slide 9: Building blocks
Building blocks Empowering anyone to build their own tools with building blocks Built as a modular, non-rigid infrastructure Easy to adopt and easy to scale over time Users can fully customize their experience with our no-code and low-code capabilities — nothing is predefined Every building block su
Slide 10: Connective layer
Connective layer Integrates with any tool. Automates any workflow @ Brings organizations’ departments, applications and data into one unified workspace @ = Serves as a connective layer, integrating with various digital tools across any organization @ = Easily automates complex workflows to accelerat
Slide 11: Building blocks: monday workdocs
Building blocks Introducing monday workdocs A unique building block that offers a powerful and flexible canvas to drive workflows forward and turn words into actions. @ Connects to the entire work ecosystem Workdocs is an active, live layer of any monday workdocs Oo organization’s work processes, pr
Slide 12: Pricing model
Pricing model @ = ~100% of our revenue is subscription-based @ Price is per user according to the subscription plan Free tier free forever Up to 2 seats For individuals looking to keep track of their tasks and work Basic seat/ 8 month Total $23 / month Billed annually For teams getting started with
Slide 13: monday.com is now available to everyone
monday.com is now . Free tier available to everyone thanks to our new free tier free S forever We launched a free plan for teams of up to 2 people. Up to 2 seats This new plan allows us to expand and develop a long-term relationship with new audience, providing easy entry to the platform for everyon
Slide 14: Go-to-market strategy
Go-to-market strategy Rapid product One platform, many Expanding innovation Product Solutions upmarket
Slide 15: Rapid product innovation
Rapid product innovation enables us to capture the market We are constantly expanding our existing capabilities, serving new industries and enterprise customers. # Board @ Product @BigBrain- (] Mobile app launch = Our BI system 2014 2015 2016 Templates $1IM (Columns 2017 8 Docs <7 Apps marketplace &
Slide 16: Rapid product innovation: From 2018
Rapid product innovation From 2018
Slide 17: Rapid product innovation: To 2020
Rapid product innovation To 2020
Slide 18: Apps marketplace
aeappsmarketplace Fn pbished a Rapid product innovation Apps marketplace Discover new apps to extend your monday.com Work OS monday.com Apps marketplace We opened the Work OS to external developers, rapidly expanding its capabilities and deepening our Product Solutions. stat ies Mareace Hone Feature
Slide 19: One product, many Product Solutions
One product, many Product Solutions We're taking one modular infrastructure and packaging our offerings into Product Solutions, expanding to hundreds of industries and thousands of use cases without friction.
Slide 20: Product Solutions
Product Solutions Broad customer acquisition funnel * cateamteation am planning Recruitment pipeline HR and recruitment ‘vote Sales pipeline G Task management (carpio eca : — — . —<— a assets 1 | = J] gi ‘Campeign planning Marketing and creative resin et Feellities roquests t suse dasbbeas © ~~ ual
Slide 21: Product Solutions: CRM example
Product Solutions A customized user journey An example: CRM Product Solution Product Targeted ads Landing pages The CRM platform that is simple to set up and easy to use Manage everything in one place. mondy.com les you handle soles pipelines customer onboarding, ches marking, and mu © Losds tee Sal
Slide 22: ARR: expanding upmarket with product solutions
ARR Expanding upmarket with different product solutions, across any organization Bottom-up adoption Illustrative leading game publisher = $800K $700K $600K $500K $400K $300K $200k $100K SOK a Software development 5 Users $1K. Jun-18 105 Users $30 330 Users $95 Jul-19 700 Users $201K Jan-20 2000 User
Slide 23: Expanding upmarket
Expanding upmarket Increasing number of enterprise customers with more than $50K ARR We're focusing on security, control and governance to enable new enterprise deals and expansion. 2 2 6 % YoY growth 470 335 @ = Robust board and item level permissions @ = Audit log enhancements @ Domain block and I
Slide 24: Expanding upmarket: every team, every industry
Expanding upmarket Every team, every industry, every use case Canva & lightspeed nos P: PELOTON’ a “N H TENNESSEE Do feed = Resse SEMRUSH MEDIA GROUP UNIVERSAL MUSIC GROUP THE = « STUDENT oxy CD? INDOSUEZ ‘Hoxtr {j 4 INTERIOR — Oe Weartn wanacement \WW\ Locic Group HOTEL Carrefour
Slide 25: Large and growing market opportunity
Large and growing market opportunity Market trends: Organizations continue to digitize all aspects of work, across all industries Work is becoming much more distributed, cross-functional and reliant on software Total TAM $56B $4B Project management $22B Collaborative applications $14B Marketing camp
Slide 26: Why we win
Why we win A new category of software Work OS is the future of work software Virtually limitless Flexible building blocks, open API, and apps marketplace ensure customers never hit a wall Flexible and adaptable Fits organizations of all sizes, from teams of 2 to companies of over 7,000 A core work t
Slide 27: Financial overview and update
Financial overview and update
Slide 28: Consistent incremental revenue growth
Consistent incremental revenue growth (5 millions) Annual revenue 18-’20 CAGR: Quarterly revenue Q2-21 YoY growth: 94% 124% $71 $59 $50 $43 $36 $32 $78 $27 $21 $17 $13 lj $32 $161 QI-19 Q2-19 Q3-19 Q4-19 QI-20 Q2-20 Q3-20 Q4-20 QI-21 Q2-21 FY-18 FY-19 FY-20
Slide 29: Improving operating leverage
Improving operating leverage Expenses as a % of revenue (91%) (53%) (40%) (14%) @ Operating Margin* @ S&M as % of Revenue* @ R&D as % of Revenue* @ G&A as % of Revenue* Q1-21 * Non-GAAP financial measures, see Appendix.
Slide 30: Investing in growth while improving cash efficiency
Investing in growth while improving cash efficiency Quarterly Adjusted Free Cash Flow* Margin Annual Adjusted Free Cash Flow* Margin @2-20 @3-20 Q4-20 Qi-21 Q2-21 FY-19 FY-20 YTD-21 Zz — = (3%) (2%) (2%) (18%) 25%. (24%) (25%) (41%) (49%) Adjusted free cash flow amounts to: ($15M), ($7.8M), ($11.9M)
Slide 31: Thank you
Thank you
Slide 32: Appendix
Appendix Supplementary materials
Slide 33: Definitions
Definitions (1) We calculate Net Dollar Retention Rate as of a period end by starting with the ARR from customers as of the 12 months prior to such period end (“Prior Period ARR’). We then calculate the ARR from these customers as of the current period end (“Current Period ARR’). The calculation of
Slide 34: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted free cash flow (S$ in millions) FY-19 FY-20 YTD-21 Net cash used in operating activities (36.7) (37.2) (0) Purchase of PP&E (1.4) (4.4) (5.6) Capitalized software development costs (0.3) (1.1) (1.2) Purchases associated with build-out of new cor
Slide 35: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted free cash flow ($ in millions) Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Net cash used in operating activities (13.9) (7.2) (10.9) (0.6) (0.4) Purchase of PP&E iO) (0.5) (1.7) (4.2) (1.4) Capitalized software development costs (0.2) (0.2) (0.6) (0.5) (0.7)
Slide 36: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures ($ in thousands) FY-19 FY-20 Q1-21 Q2-21 Reconciliation of gross profit: GAAP gross profit 66,111 138,635 51,048 61,507 Add: Share-based compensation 970 2,720 1,531 1,833 Non-GAAP gross profit 67,081 141,355 52,579 63,340 Reconciliation of gross margin:
Slide 37: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures ($ in thousands) FY-19 FY-20 Q1-21 Q2-21 GAAP sales and marketing 118,534 191,353 63,048 61,057 Less: Share-based compensation 3,283 10,068 4,034 5,536 Non-GAAP sales and marketing 115,251 181,285 59,014 55,521 GAAP general and administrative 15,458 54,3