The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Kasthuri Gopalan Rangan - Goldman Sachs Group, Inc., Research Division - Analyst
: Congratulations on a spectacular finish, a strong top line growth rate and also generating free cash flow, which is very remarkable. A question for
the team. Can you tell us a little bit more about how the breadth of use cases is evolving for the company? Because we all know that monday.com
is not about just project management, something beyond the concept of Work OS. If you can you elaborate a little bit on the breadth of use cases
and also touch upon the competitive environment are you putting away? Or how do things look from the standpoint of your traditional competitors?
And I guess on the financial front, the disconnect is that you're generating better-than-expected operating margins, better-than-expected free
cash flow, which is great. But the guidance has not really changed that much for calendar '22 relative to the time you went public with respect to
non-GAAP operating losses. So can you help us bridge the tremendous progress you're making on the financials with the very conservative financial
outlook for operating margins?
Roy Mann - monday.com Ltd. - Co-Founder, Co-CEO & Director
Thank you, Kash. So I'll start with the use cases and Eliran will continue on the second part. So it's true, monday has so many different use cases.
And I think you can look at it in 2 different ways.
One is horizontals. So we are also a CRM as much as the project management tool. We are also used as a team for our -- tool for R&D teams to
manage their work, for marketing teams. So that's like a horizontal view. But then we have over 130 different business use cases, where you see
different types of businesses from manufacturing plants that use monday to run their operation, to clinical trial research, to really any kind of
business out there. And also 70% of our customers come from non-tech segments, like not tech companies. So we see a really wide spread usage
of monday throughout those different verticals and through horizontals. So it really is reaching the 1.3 billion information worker that this is our
vision to enable them to work better. So thank you, and Eliran can touch on the second part here.
Question: Andrew Lodovico DeGasperi - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: First on the NRR progression. I mean, I noticed it picked up quite a bit in Q4 to 120% or above 120%. And given this is a trailing metric, it sounds
like you had a lot of expansion in the quarter. Can you maybe elaborate on what happened there and what was popular? And I have a follow-up.
Roy Mann - monday.com Ltd. - Co-Founder, Co-CEO & Director
Yes. sure, Andrew. Thank you. So as we said, we are driving revenue and ARR is being driven by 2 main things. One is adding new customers. And
as you can see, we have now over than 152,000 customers. And many of these customers that we add are becoming -- we start -- more than 80%
of our ARR is coming from foreign enterprise deals. And what you see basically is that once they are becoming customers of monday, there is an
expansion process because we already have them as customers. And the salespeople actually are expanding inside. And you can see that the ease
of use of the product, the fact that we are already embedded inside, the fact that we have multiple champions is a key driver, as we continue to
go upmarket with customers with 10+ users now already represent [72%] of total ARR as well as the expansion within the enterprise account, this
is basically driving this expansion within this existing customer base.
Question: David E. Hynes - Canaccord Genuity Corp., Research Division - Analyst
: Congrats on the continued momentum here. As you think about the evolution to a product suite, as you kind of talked about in the prepared
remarks, how do you envision that impacting the go-to-market motion? I mean should we expect more in terms of kind of bundling and packaging
various solutions? And I guess, what could the implications be on landing ASPs?
Roy Mann - monday.com Ltd. - Co-Founder, Co-CEO & Director
It's Roy. So yes, we see this as a massive go-to-market for us, an additional go-to-market for us, mainly because the need for those tools is separate.
And an important thing to note is that these are complete stand-alone products, both forms, WorkForms and Canvas. And so we expect it to be
another addition for different types of customers who may be looking for something else other than a platform such as our Work OS to join the
ecosystem in a separate place and then be exposed to the suite of products and maybe try out other stuff. So we definitely see opportunities all
around with this approach.
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FEBRUARY 23, 2022 / 1:30PM, MNDY.OQ - Q4 2021 Monday.Com Ltd Earnings Call
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