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 FY-21 overview in numbers
monday.com FY-21 overview Strong revenue growth in numbers Annual GAAP Revenue ’19-’21 CAGR: 99% $308 $382M 91% Annualized revenue run rate YoY revenue growth 152K+ >135% $161 Total customers Net dollar retention rate of customers with 10+ users* up from >130% for Q3-21 $78 90% $9.9M Gross margin**
Slide 4: Our success by the numbers – Q4-21 Financial Highlights
Our success by the numbers – Q4-21 Financial Highlights $95.5M 91% 90% $10.1M Revenue YoY revenue growth Gross margin* Adjusted free cash flow* represents 11% of revenue 200% 72% ($9.9M) >1,050 YoY increase in customers Total ARR from Operating loss* Total headcount with $50K ARR** customers with 10
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 Land & expand 14 languages Thousands of use cases ~70% 한국어 中文 Español Work management tools non-tech for its simplicity Self-serve + flywheel Português
Slide 6: Expanding upmarket
Expanding upmarket Increasing number of enterprise 793 customers with more than $50K ARR We’re focusing on security, control and governance to enable new enterprise deals and expansion. 200% 613 YoY growth Robust board and item level permissions 470 Audit log enhancements 335 Domain block and IP res
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
Slide 9: 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 10: 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 11: 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 12: 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 accelerate digital
Slide 13: monday WorkForms
New products monday WorkForms Turn insight into action with monday WorkForms Customize any form using a no-code builder to reflect your brand (colors, backgrounds) Easily set conditions inside the form to get the right information and reduce the back and forth Share your WorkForms within seconds (we
Slide 14: monday Canvas
New products monday Canvas A collaborative space for teams to ideate, create and innovate. Together. Make meetings more visual and collaborative with multiple team members. Create user flows, customer journeys, processes, and more. Sketch ideas, brainstorm with Intuitive expressions and comments.
Slide 15: 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. +60K accounts already used monday workdocs +800K +17M workdocs rows of text +300K widgets & boards
Slide 16: Pricing model
Pricing model ~100% of our revenue is subscription-based Price is per user according to the subscription plan
Slide 17: Go–to-market strategy
Go–to-market strategy Rapid product One platform, Expanding innovation many products upmarket
Slide 18: 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 19: Rapid product innovation: From 2018
Rapid product innovation From 2018
Slide 20: Rapid product innovation: To 2022
Rapid product innovation To 2022
Slide 21: 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 108 Launched Applications New marketplace payment platform Accelerates innovation Enterprise deal driver Supports multiple products
Slide 22: 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 23: Broad customer acquisition funnel
Broad customer acquisition funnel
Slide 24: 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 25: Expanding upmarket with different products, across any organization
Expanding upmarket with different products, across any organization Bottom-up adoption Sales-led adoption Illustrative leading game publisher Illustrative leading financial institution 4000 Users 1,200k $1,128k 800k 3200 Users HR Ops $710k 1,000k 700k 2548 Users Marketing Creative 600k 2100 Users 80
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 $4B Project management Market trends: Organizations continue to digitize all aspects of $22B work, across all industries Collaborative applications $14B Work is becoming much more distributed, cross- Marketing campaign management functional and rel
Slide 28: Why we win
Why we win 1 A new category of software 2 Flexible and adaptable 3 Creating a unified workspace Work OS is the future of Fits organizations of all sizes, Connecting departments, work software from teams of 2 to tools and data across the companies of over 7,000 organization 4 Virtually limitless Flex
Slide 29: Financial overview and update
Financial overview and update
Slide 30: Consistent incremental revenue growth
Consistent incremental revenue growth ($ Millions) Quarterly revenue $95 Annual revenue $308 Q4-21 YoY growth: ’19-’21 CAGR: 91% 99% $83 $71 $59 $50 $161 $43 $36 $32 $27 $78 $21 $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 FY-19 FY-20 FY-21
Slide 31: Strong net dollar retention rate
Strong net dollar retention rate All customers Customers with 10+ users >120% >135% >115% >130% >111% >125% 107% 105% 121% 119% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 * For definition of net dollar retention rate, see Appendix.
Slide 32: Improving operating leverage
Improving operating leverage Quarterly Expenses as a % of revenue* Annual Expenses as a % of revenue* (91%) (47%) (53%) (40%) (14%) (11%) (10%) (17%) 148% 107% 100% 113% 79% 73% 73% 79% 18% 19% 16% 17% 16% 20% 19% 17% 10% 10% 9% 11% 12% 9% 9% 11% Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-19 FY-20 FY-21 Opera
Slide 33: 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 11% 3% 3% (3%) (2%) (25%) (24%) (49%) Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-19 FY-20 FY-21 Adjusted free cash flow amounts to: ($11.9M), ($1.6M), ($1.5M), $2.9M Adjusted fr
Slide 34: Thank you
“monday om Thank you
Slide 35: Appendix
Appendix Supplementary materials
Slide 36: Definitions
Definitions (1) We calculate Net Dollar Retention Rate as of a period end by starting with the ARR from customers as of the 12 months prior to such period end (“Prior Landing Page Period ARR”). We then calculate the ARR from these customers as of the current period end (“Current Period ARR”). The ca
Slide 37: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted free cash flow Landing Page ($ in millions) FY-19 FY-20 FY-21 Net cash provided by (used in) operating activities (36.7) (37.2) 16.3 Purchase of PP&E (1.4) (4.4) (11.6) Capitalized software development costs (0.3) (1.1) (2.2) Purchase of build-o
Slide 38: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Adjusted free cash flow (cont.) Landing Page ($ in millions) Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Net cash provided by (used in) operating activities (10.9) (0.6) (0.4) 3.8 13.5 Purchase of PP&E (1.7) (4.2) (1.4) (3) (3) Capitalized software development costs (
Slide 39: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Non-GAAP operating loss ($ in thousands) FY-19 FY-20 FY-21 Landing Page Reconciliation of gross profit: GAAP gross profit 66,111 138,635 269,137 Add: Share-based compensation 970 2,720 7,681 Non-GAAP gross profit 67,081 141,355 276,818 Reconciliation of
Slide 40: 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 Landing Page Reconciliation of operating expenses (cont.): GAAP general and administrative 15,458 54,339 53,493 Less: Share-based compensation 8,190 39,415 20,934 Non-GAAP general and adm
Slide 41: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Non-GAAP operating loss ($ in thousands) Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Landing Page Reconciliation of gross profit: GAAP gross profit 43,461 51,048 61,507 72,805 83,777 Add: Share-based compensation 975 1,531 1,833 2,107 2,210 Non-GAAP gross profit 44,43
Slide 42: Reconciliation of non-GAAP financial measures
Reconciliation of non-GAAP financial measures Non-GAAP operating loss (cont.) ($ in thousands) Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Landing Page Reconciliation of operating expenses (cont.): GAAP general and administrative 36,828 10,266 11,648 14,698 16,881 Less: Share-based compensation 31,742 4,438 5,121