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
Slide 3: Our success by the numbers – FY-22 Financial Highlights
Our success by the numbers – Strong revenue growth FY-22 Financial Highlights Annual GAAP Revenue ’19-’22 CAGR: 88% $519M 68% $519 Revenue YoY revenue growth 86% >130% $308 YoY increase in Net dollar retention rate of customers with $50K ARR** customers with 10+ users** 1,474 customers, up from 793
Slide 4: Our success by the numbers – Q4-22 Financial Highlights
Our success by the numbers – Q4-22 Financial Highlights $149.9M 57% 90% $29.7M Revenue YoY revenue growth Gross margin* Adjusted free cash flow* represents 20% of revenue 86% 76% $14.3M >1,500 YoY increase in customers Total ARR** from customers Operating income* Total headcount with $50K ARR** with
Slide 5: Serving teams and organizations of all kinds
Serving teams and organizations of all kinds Teams & orgs 200+ 200+ Tech & non-tech of all sizes countries business industries 2 – 7,000 industries ~70% Land & expand 14 languages Thousands of use cases 한국어 中文 Español Work management tools non-tech for its simplicity Self-serve + flywheel Português
Slide 6: Increasing number of enterprise customers with more than $50K ARR
Expanding upmarket Increasing number of enterprise customers with more than $50K ARR 86% 1,474 YoY growth 1,323 We’re focusing on security, control and governance to 1,160 enable new enterprise deals and expansion. 960 Robust board and item level permissions 793 Audit log enhancements 613 Domain blo
Slide 7: 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 8: monday.com Work OS
Product demo monday.com Work OS Democratizing the power of software Watch now Watch now
Slide 9: One platform, many products
One platform, many products We’re taking one modular infrastructure and packaging our offerings into products, expanding to hundreds of industries and thousands of use cases without friction.
Slide 10: 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 11: 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 12: 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 13: 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 14: Go–to-market strategy
Go–to-market strategy Rapid product One platform, Expanding innovation many products upmarket
Slide 15: 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, serving new industries and enterprise customers. Annual Revenue
Slide 16: Rapid product innovation: From 2018
Rapid product innovation From 2018
Slide 17: Rapid product innovation: To 2022
Rapid product innovation To 2022
Slide 18: monday apps marketplace
Rapid product innovation monday apps marketplace We opened the Work OS to external developers, rapidly expanding its capabilities and deepening our products. Q4 2020 217 Launched Applications New marketplace payment platform Accelerates innovation Enterprise deal driver Supports multiple products
Slide 19: A customized user journey
A customized user journey An example: CRM Product Targeted ads Landing pages Product Discovery opportunities for Product Solutions include our template store, integration center, email marketing, CSM, and more.
Slide 20: 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 Connecting departments, work software sizes, from teams of 2 to tools and data across the companies of over 7,000 organization 4 Virtually limitless 5 A
Slide 21: Pricing model
Pricing model ~100% of our revenue is subscription-based Price is per user according to the subscription plan
Slide 22: Financial overview and update
Financial overview and update
Slide 23: Consistent incremental revenue growth
Consistent incremental revenue growth ($ Millions) Quarterly revenue $150 Annual revenue Q4-22 YoY growth: 57% ’19-’22 CAGR: 88% $519 $137 $124 $108 $96 $83 $308 $71 $59 $50 $43 $161 $36 $32 $27 $21 $78 $17 $13 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22
Slide 24: Strong net dollar retention rate
Strong net dollar retention rate All customers Customers with 10+ users Customers with >$50K ARR >150% >150% >150% >145% >135% >135% >135% >135% >135% >130% >125% >125% >120% >120% >120% Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 * For definition of net
Slide 25: Operating leverage while investing in growth
Operating leverage while investing in growth Quarterly Expenses as a % of revenue* Annual Expenses as a % of revenue* (91%) (53%) (40%) (10%) (12%) (17%) (2%) (9%) 10% 148% 100% 113% 73% 70% 79% 60% 69% 54% 16% 18% 19% 19% 16% 20% 19% 17% 18% 12% 11% 12% 11% 10% 9% 9% 11% 11% Q4-21 Q1-22 Q2-22 Q3-22
Slide 26: Investing in growth while maintaining cash efficiency
Investing in growth while maintaining cash efficiency Quarterly Adjusted Free Cash Flow* Margin Annual Adjusted Free Cash Flow* Margin 3% 2% 20% 11% 10% (25%) (49%) (15%) (16%) Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 FY-19 FY-20 FY-21 FY-22 Adjusted free cash flow amounts to: $10.1M, ($16.2M), ($19.3M), $14.0
Slide 27: Thank you
“.monday.on Thank you
Slide 28: Appendix
Appendix Supplementary materials
Slide 29: Definitions
Definitions (1) We calculate Net Dollar Retention Rate as of a period end by starting with the ARR from customers as of the 12 months prior to such period end (“Prior Period ARR”). We then calculate the ARR from Page Landing these customers as of the current period end (“Current Period ARR”). The ca
Slide 30: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted free cash flow Landing Page ($ 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) (
Slide 31: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted free cash flow Landing Page ($ in millions) Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Net cash provided by (used in) operating activities 13.5 (12.9) (14.1) 20.0 34.1 Purchase of PP&E (3.0) (2.4) (4.5) (5.3) (3.8) Capitalized software development costs (0.4
Slide 32: 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 Landing Page 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 67,081 141,355 276,8
Slide 33: 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 Landing Page 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-
Slide 34: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Non-GAAP operating loss ($ in thousands) Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Landing Page Reconciliation of gross profit: GAAP gross profit 83,777 93,888 106,988 119,063 132,562 Add: Share-based compensation 2,210 2,441 2,915 2,683 2,367 Non-GAAP gross profit
Slide 35: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Non-GAAP operating loss (cont.) ($ in thousands) Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Landing Page Reconciliation of operating expenses (cont.): GAAP general and administrative 16,881 18,870 22,466 22,348 21,717 Less: Share-based compensation 5,788 6,459 7,833