Slide 1: Work OS
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 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
Slide 3: monday.com Q3-21 overview in numbers
monday.com Q3-21 overview Strong revenue growth Quarterly Revenue Run Rate (GAAP Revenue X 4) in numbers $332 $83M 95% Revenue YoY revenue growth 231% >130% $170 YoY increase in Net dollar retention rate** of customers with $50K ARR** customers with 10+ users 613 customers, up from 185 in up from >1
Slide 4: Serving teams and organizations of all kinds
Serving teams and organizations of all kinds Teams & orgs 190+ 200+ Tech & non-tech of all sizes countries business industries 2 – 7,000 industries Land & expand 14 languages Thousands of use cases Self-serve + flywheel 한국어 中文 Português Español русский Work management tools Software applications ~70
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 information
Slide 6: monday.com Work OS
Product demo monday.com Work OS Democratizing the power of software Watch now
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 a si
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: Empowering anyone to build their own tools with no-code building blocks
Building blocks Empowering anyone to build their own tools with no-code 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
Slide 10: Integrates with any tool. Automates any workflow
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 accelerate digital
Slide 11: monday workdocs
Building blocks 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 organization’s work processes, propelling ideas into action items
Slide 12: Introducing monday workdocs layouts
Building blocks Introducing monday workdocs layouts Provide our customers with even more freedom to adjust monday workdocs to their business’s needs Layouts allow customers to create any kind of template with live data Examples use cases: CRM contact page, deal page, marketing campaign overview, and
Slide 13: Enhancing the workflow builder
Building blocks Enhancing the workflow builder Our dynamic workflow builder will completely take our automations and integrations to the next level, giving even more power to customers and developers Customers can easily create, without code, any kind of custom automation or integration, no matter h
Slide 14: Introducing My Work
Building blocks Introducing My Work Giving individuals within teams the ability to gather customized data across all business units My Work is the place for customers and organizations to centralize all items - whether it’s deals, campaigns, tasks or anything else - associated with their account.
Slide 15: Pricing model
Pricing model ~100% of our revenue is subscription-based Price is per user according to the subscription plan
Slide 16: Go-to-market strategy
Go–to-market strategy Rapid product One platform, many Expanding innovation Product Solutions upmarket
Slide 17: Rapid product innovation enables us to capture the market
Rapid product innovation enables us to capture the market We are constantly expanding our existing capabilities, $161M serving new industries and enterprise customers. $78M $32M $11M
Slide 18: Rapid product innovation: From 2018
Rapid product innovation From 2018
Slide 19: Rapid product innovation: To 2021
Rapid product innovation To 2021
Slide 20: monday apps marketplace
Rapid product innovation monday apps marketplace We opened the Work OS to external developers, rapidly expanding its capabilities and deepening our Product Solutions. Q4 2020 >16K Launched External developers Accelerates innovation Enterprise deal driver Supports Product Solutions
Slide 21: 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 22: Broad customer acquisition funnel
Product Solutions Broad customer acquisition funnel
Slide 23: A customized user journey
Product Solutions A customized user journey An example: CRM Product Solution Targeted ads Landing pages Product Discovery opportunities for Product Solutions include our template store, integration center, email marketing, CSM, and more.
Slide 24: Expanding upmarket with different product solutions, across any organization
Expanding upmarket with different product solutions, across any organization Bottom-up adoption Sales-led adoption Illustrative leading game publisher Illustrative leading financial institution $450K $800K 1900 Users 2500 Users HR Business units Ops $400K $410K HR $758K $700K $350K Ops IT $600K Mark
Slide 25: Increasing number of enterprise customers with more than $50K ARR
Expanding upmarket Increasing number of enterprise customers with more than $50K ARR 613 We’re focusing on security, control and governance to enable new enterprise deals and expansion. 231% 470 YoY growth Robust board and item level permissions 335 Audit log enhancements 264 Domain block and IP res
Slide 26: Every team, every industry, every use case
Expanding upmarket Every team, every industry, every use case
Slide 27: Large and growing market opportunity
Large and growing Total TAM market opportunity $56B Market trends: Organizations continue to digitize all aspects of work, across all industries Work is becoming much more distributed, cross- functional and reliant on software Note: Based on IDC data for 2020, representing the relevant segments of t
Slide 28: Why we win
Why we win 1 A new category of software 2 Flexible and adaptable 3 Creating a unified workspace Work OS is the future of Fits organizations of all sizes, Connecting departments, work software from teams of 2 to tools and data across the companies of over 7,000 organization 4 Virtually limitless Flex
Slide 29: Financial overview and update
Financial overview and update
Slide 30: Consistent incremental revenue growth
Consistent incremental revenue growth ($ Millions) Quarterly revenue $83 Annual revenue $161 Q3-21 YoY growth: ’18-’20 CAGR: 95% 124% $71 $59 $50 $43 $78 $36 $32 $27 $21 $17 $32 $13 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 FY-18 FY-19 FY-20
Slide 31: Improving operating leverage
Improving operating leverage Expenses as a % of revenue (91%) (53%) (40%) (14%) (11%) 148% 113% 100% 79% 73% Operating Margin* S&M as % of Revenue* R&D as % of Revenue* 20% 19% 19% 16% 17% G&A as % of Revenue* 9% 9% 10% 9% 11% FY-19 FY-20 Q1-21 Q2-21 Q3-21 * Non-GAAP financial measures, see Appendix
Slide 32: 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 3% (0%) (3%) (2%) (25%) (18%) (24%) (49%) Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 FY-19 FY-20 YTD-21 Adjusted free cash flow amounts to: ($7.8M), ($11.9M), ($1.6M), ($1.5M) Adju
Slide 33: Thank you
Thank you
Slide 34: Appendix
Appendix Supplementary materials
Slide 35: Definitions
Definitions (1) We calculate Net Dollar Retention Rate as of a period end by starting with the ARR from customers as of the 12 months prior to such period end (“Prior Landing Page Period ARR”). We then calculate the ARR from these customers as of the current period end (“Current Period ARR”). The ca
Slide 36: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted free cash flow ($ in millions) Landing Page FY-19 FY-20 YTD 21 Net cash provided by (used in) operating (36.7) (37.2) 2.8 activities Purchase of PP&E (1.4) (4.4) (8.6) Capitalized software development costs (0.3) (1.1) (1.7) Purchases associated
Slide 37: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted free cash flow ($ in millions) Landing Q3-20Page Q4-20 Q1-21 Q2-21 Q3-21 Net cash provided by (used in) operating (7.2) (10.9) (0.6) (0.4) 3.8 activities Purchase of PP&E (0.5) (1.7) (4.2) (1.4) (3) Capitalized software development costs (0.2) (
Slide 38: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures ($ in thousands) FY-19Page Landing FY-20 Q1-21 Q2-21 Q3-21 Reconciliation of gross profit: GAAP gross profit 66,111 138,635 51,048 61,507 72,805 Add: Share-based compensation 970 2,720 1,531 1,833 2,107 Non-GAAP gross profit 67,081 141,355 52,579 63,340
Slide 39: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures ($ in thousands) FY-19Page Landing FY-20 Q1-21 Q2-21 Q3-21 GAAP sales and marketing 118,534 191,353 63,048 61,057 67,443 Less: Share-based compensation 3,283 10,068 4,034 5,536 6,448 Non-GAAP sales and marketing 115,251 181,285 59,014 55,521 60,995 GAAP