Monday.Com Ltd at William Blair Growth Stock Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Arjun Bhatia - William Blair & Company - Analyst : Yes. So just to maybe level set for the room, give us a quick introduction into Monday, what you do, how you're taking maybe a little bit of a differentiated approach to the work management space.

Question: Arjun Bhatia - William Blair & Company - Analyst : Very helpful. We'll dig into a lot of those. I think one of the things that you talk about that stuck out is you have this platform. You've built products on top of it that you're monetizing; one of those is CRM, another is dev, and there's probably more to come. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 08, 2023 / 4:20PM, MNDY.OQ - Monday.Com Ltd at William Blair Growth Stock Conference Talk about where you are in the rollout of CRM. That's been an important -- that's been your first productized solution. You've disclosed some progress that you've made there. But give us a sense of where you are in the rollout, who you are selling that product to, and what it adds to the monday story.

Question: Arjun Bhatia - William Blair & Company - Analyst : Interesting. What do you -- how do you think the financial impact of the CRM product release might flow through the income statement? Because -- maybe I'll say it's better to phrase it in terms of contract sizes. How should we compare contract sizes of CRM customers to core project management money.com customers?

Question: Arjun Bhatia - William Blair & Company - Analyst : Actually. So going off of that, maybe give everyone an overview of which customers you serve. And I think over the last several years, you've been on this journey to move upmarket. And so give us a sense of where you are in that upmarket journey; what you're seeing with larger customers, with deal sizes, et cetera.

Question: Arjun Bhatia - William Blair & Company - Analyst : Yeah, definitely. One thing I want to touch on that you just mentioned there, though, before we move on is the demand side of the equation, like the -- we are getting into -- I guess it was late last year, the macro started to get a little bit tougher. We saw it play out in purchasing cycles. But you're saying that didn't really show up in your funnel. And maybe talk about some of the things that made you more resilient and able to still put up healthy growth. Was it new products or new customer acquisition?

Question: Arjun Bhatia - William Blair & Company - Analyst : So the cost -- your cost to acquire customers downmarket got more favorable as competitors exited. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 08, 2023 / 4:20PM, MNDY.OQ - Monday.Com Ltd at William Blair Growth Stock Conference

Question: Arjun Bhatia - William Blair & Company - Analyst : And so your view, just as you're looking at the market, is that you're not necessarily -- would you say you're graduating from SMB to mid-market and enterprise or you're adding on mid-market and enterprise in addition to keeping and doubling down on the same?

Question: Arjun Bhatia - William Blair & Company - Analyst : Okay. And how does the go-to-market change over time as you have added on this potential for move upmarket, larger customers? How do you go to market in those two different segments?

Question: Arjun Bhatia - William Blair & Company - Analyst : Very interesting. I want to touch on mondayDB. We've talked about that. It's an important part of your enterprise motion, your upmarket motion, to serve larger customers. For those that don't know, what is mondayDB? What does it add to the platform that you didn't have before? And what are you trying to solve for?

Question: Arjun Bhatia - William Blair & Company - Analyst : So you're laying the foundation in anticipation of larger customers coming onto the platform so you don't have to take these investments.

Question: Arjun Bhatia - William Blair & Company - Analyst : How should we think about multi-product strategy? How do you -- because you are a flexible platform. There's a lot of use cases that customers have deployed on monday.com. How do you decide what to productize, which market to enter next? Because I assume you have a lot of choices at your disposal.

Question: Arjun Bhatia - William Blair & Company - Analyst : Atlassian, yeah.

Question: Arjun Bhatia - William Blair & Company - Analyst : I was going to ask, Eliran. Because there's a lot of product investments you're talking about. You have DB, you have CRM that's in market, and you have dev and more to come. How should we think about your R&D spend and R&D efficiency and how that's trended over time and what some of these investments might mean for that line?

Question: Arjun Bhatia - William Blair & Company - Analyst : 100%, yeah. So the other part -- so when you think about -- you have products that you're building. You said CRM. And your number one integration is Salesforce. You have dev, and your number one integration is Atlassian with Jira. How do you think about the competitive dynamics with these markets? As you build products, is there -- is it competition? Is it coopetition? How would you phrase this?

Question: Arjun Bhatia - William Blair & Company - Analyst : Very interesting. So dev -- you mentioned monday dev is now GA? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 08, 2023 / 4:20PM, MNDY.OQ - Monday.Com Ltd at William Blair Growth Stock Conference

Question: Arjun Bhatia - William Blair & Company - Analyst : What -- and you've had CRM in market for a little bit. What have you learned from the CRM release that, now, you can apply to dev to ensure its success and that the adoption is there and the customers are using it?

Question: Arjun Bhatia - William Blair & Company - Analyst : Very interesting. I want to pivot to the business and recent demand trends. So we talked about seat expansions. That's been a little bit -- there's been more headwinds there because of the macro. But your new lands have been very strong still. So what are you seeing on new customer front? And when you look at these new customer cohorts, how do they differ from past cohorts? Is there anything different about seats, products, tiers that they're landing at, et cetera?

Question: Arjun Bhatia - William Blair & Company - Analyst : Okay. And I remember when you launched that free tier, because that was a newer motion, I don't know, maybe a year, year and a half ago.

Question: Arjun Bhatia - William Blair & Company - Analyst : What did you notice in terms of existing customer behavior? Because there was always this kind of -- oh, what would happen? Would there be down selling? What was the behavior that you saw when you launched the free tier?

Question: Arjun Bhatia - William Blair & Company - Analyst : Very interesting. And so when I think about the past few years, you've been free cash flow positive for two years now.

Question: Arjun Bhatia - William Blair & Company - Analyst : Since IPO, yeah. And I think the growth rate, the compound growth rate, has been something like 80%. How do you think about now, going forward, balancing growth and profitability overall, whether it's sales and marketing spend, go-to-market investments, product investments, et cetera? Where do you see opportunity? Where might you see more efficiencies going forward? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 08, 2023 / 4:20PM, MNDY.OQ - Monday.Com Ltd at William Blair Growth Stock Conference

Question: Arjun Bhatia - William Blair & Company - Analyst : Yeah. So still a land-grab.

Question: Arjun Bhatia - William Blair & Company - Analyst : Perfect. All right. Well, that is all the time we have today, Eliran. Thank you so much for joining. Thanks, everyone, for coming. And we'll have a breakout upstairs for Q&A.