Monday.Com Ltd Q1 2023 Earnings Call Transcript

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

Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst : Congratulations on these fantastic results. I always get to -- good to see Monday results on a Monday. A question for you is if you look at the packaging of the Monday percent of packaging or Monday based on individual percentage you have the CRM application right now. What other applications do you foresee coming down the research and development organization? And where do you draw the line between what Monday does versus leaving it to the third parties to build applications on top of the platform. Roy Mann - monday.com Ltd. - Co-Founder, Co-CEO & Director It's Roy here. So that's a great question of where are we taking the capabilities of the platform forward towards their growth. So our strategy now is to focus this year on the core products that we have, like CRM is doing amazingly well, and we're pushing on that. We're doubling down on what we're really good at, which is project and work management and there we go also out of beta, and that's great momentum there. Going forward, when we're looking into where we are going into and where we are not, we're seeing Monday going into areas where it is very highly differentiated across the organization, like meaning that the customers will know exactly which product to take. And we're not going down in specific vertical areas, the long tail. And this is something we're going to leave for the community to fill as it's like -- and we're building out within the company, teams that focus on each specific product and taking it to be best-in-class.

Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst : Two quick ones on Monday DB. So with the phased approach to the rollout there, the 30% of accounts that are live -- did you start with your largest customers who would see the most benefit? Or how did that play out? And then second, Eran, I'd love to hear you talk a little bit about what V2 and V3 of that effort looks like? Like where will the focus be in future iterations of Monday DB? Unidentified Company Representative Yes. Thanks, DJ. So overall, when we started initially, we saw with the smaller accounts, but then we just opened up for different sizes of accounts. Some of the largest accounts were I would say the most eager to get Monday DB. So we actually rolled those accounts sooner. So now we have a mixture of both small accounts, but also very large accounts using Monday DB. The most gain was obviously in the larger accounts. Smaller accounts, business experienced much lag, but the larger ones did. So we saw most of the benefit over there. Version 1.0 is focused mainly on consuming data and viewing data where the next few versions are going to focus on different parts of the platform, for example, dashboards, they're going to be blazing and fast. Going forward. We're going to offer more scaling opportunities. So that means larger debt assets. And I think those further assessments in the products will be a big game changer because it will just allow us to be significantly better than where we are today and offers significant different customers the ability to use Monday. So looking forward for the next version. I think the first step is always the hardest. And the next phase will be easier to implement.

Question: Andrew Lodovico DeGasperi - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : I just had one question on the Monday debt platform you're planning to roll out. I know it's already accessible to existing customers, but just wondering being out of beta at this point? I mean, is it essentially live with all of -- with essentially everything that it would come with and then maybe could we touch on like in terms of the customer adoption? Could it be similar to Monday CRM in terms of how quickly you think that could ramp up? Unidentified Company Representative Yes. Thanks, Andrew. So yes, Monday debt is now out of beta. It doesn't mean that all the features that are out there is far from where we want to try to be. We have a lot of exciting features we plan to roll out. We just reached a place of stability and scale that we feel comfortable migrating money day out of beta. We've seen great momentum. That's 1 of the reasons why it was important for us to emphasize that. It's hard to compare to CRM because it's kind of earlier phase of the CRM, but we're very encouraged in seeing the momentum that we've seen in the product. And overall, when I look at both the CRM and the dev we're very pleased with the rate of adoption, with the feedback that we're getting. And if the momentum keeps this way, this is a great win for us as a company.