monday.com Ltd at JPMorgan Global Technology, Media and Communications Conference Transcript

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

Question: Pinjalim Bora - JPMorgan - Analyst : So customization, flexibility of the platform to kind of fit two different use cases? Roy Mann - Monday.Com Ltd - Co-Chief Executive Officer, Co-Founder, Director Yeah.

Question: Pinjalim Bora - JPMorgan - Analyst : Yeah, one -- we obviously continuously talk with your customers and partners. One of the thing I recently heard, somebody told me that this particular deal, this customer bought monday.com, they generated an incremental $500,000 in revenue per month, with monday DCO being 300 for the year, right? That's the tremendous amount of kind of ROI. What do you hear around in broad spectrum around ROI when you're talking to customers? Roy Mann - Monday.Com Ltd - Co-Chief Executive Officer, Co-Founder, Director Yeah, so ROI is always like difficult to measure because it's like so varied use cases. But the places we do like a deeper research with the customers, we find like tremendous things. And it's always like somehow, there are two areas of ROI. One is saving costs and saving time and automating things and processes. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 14, 2025 / 5:40PM, MNDY.OQ - monday.com Ltd at JPMorgan Global Technology, Media and Communications Conference And I think that's like the lower the least interesting one. I think the more interesting one, which is harder to measure. And I think that's where people really love us, is where they can do stuff way faster, okay? They can accomplish more. They can grow more. And we saw like in those areas like some that really attributed to us talk about like 10x improvement in their ability to ship things faster, and like really improve their revenue and those kind of -- thanks we're like super excited about that. Also with AI, by the way, we see some really good early signs of people really taking advantage of the platform to achieve great things.

Question: Pinjalim Bora - JPMorgan - Analyst : Yeah, on that point, I think in the Analyst Day, you had kind of highlighted, if I remember that correctly, something like 61% of Fortune 500 uses you, but your penetration was I want to say single-digit percentage or something like that?

Question: Pinjalim Bora - JPMorgan - Analyst : Yeah, okay. And you talked about mondayDB. We are through two phases of mondayDB. I think at this point in time three -- the third phase is kind of coming. How should we think of that unlocked with the third phase? Because I remember, with the third phase, there was a some kind of a monetization aspect to it with some very power users, I believe, if I remember that road map. Roy Mann - Monday.Com Ltd - Co-Chief Executive Officer, Co-Founder, Director Yeah, obviously. So -- so mondayDB, it's like we gave it a name, but it's part of the infrastructure, okay? It's like our database, all accounts run on mondayDB, and it's not a product you can buy or not buy. We did talk about monetization of like large-scale usage of the infrastructure in general, but nothing specific to mondayDB. And we also don't think this is like the way for us to scale revenue necessarily, but more to direct customers to the right way of implementation. But it is unlocking a massive amount of new use cases, okay, at scale, right, customers can use us for a lot more things now that we're able to do the same magic we do of customization and automations on that and security and permissions and governance and all that stuff. But now it's scale. So that usually doesn't happen together that you can do all the tricks and magic of anything you want, but then it can scale as well.

Question: Pinjalim Bora - JPMorgan - Analyst : Yeah. Understood. Let's go a little bit current about Q1 and Byron I'll turn to you for this. You have pretty good Q1 results. The beats versus your guidance were a pretty normal cadence that we have seen. But at the same time, I think you had a little bit of an FX benefit versus what maybe you were expecting for, right? So a lot of investor conversations when I was talking after the quarter, there was a little bit of a skepticism on how much was the FX benefit. If we take out the FX benefit, the beat was maybe lower than typically we see. So it's a little bit of a integrity. But I don't know if you'd say investors are looking too much into one quarter? Or would you say there was something that put a little bit of pressure in Q1?

Question: Pinjalim Bora - JPMorgan - Analyst : So just double click on that point. You have not seen any weakness yet. Are you talking about even in April, May time frame? And what are you talking about exactly the pipeline, top of funnel, those years?

Question: Pinjalim Bora - JPMorgan - Analyst : Yeah, got it. Moving on to the rest of the platform, like SallCRM has been doing tremendously well for you. I think you have 31,000 or so accounts. But what I keep on hearing is it's still largely for SMB companies, right? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 14, 2025 / 5:40PM, MNDY.OQ - monday.com Ltd at JPMorgan Global Technology, Media and Communications Conference So I want to ask you, is it just a matter of time that it starts scaling towards mid-market enterprise or are there certain features, capabilities that are missing? Is there an update coming which might actually help you make that jump towards mid-market enterprise? Roy Mann - Monday.Com Ltd - Co-Chief Executive Officer, Co-Founder, Director Yeah, so first off, we also have large customers. It's just that the demand out there when we do our performance marketing engine is really good with SMBs as well. And there is a gap in the market, like the capabilities that you want a fully customizable CRM. But then when you go to the big large platforms out there, it costs an arm and a leg and a lot of time to like customize it to what you want. And with us, it's like inherent to the system while being still easy and fun to use. So I think we're like in the middle between rigid CRMs and expensive and slow to implement CRMs, and we're like kind of like in that middle and it's a great offering for SMBs and low mid-market companies. And then, yeah, as we scale and also in the with mondayDB in the number of records we can hold, we can scale into larger and larger organizations. And like we're still using Salesforce because of that reason when we started, we couldn't handle the scale that monday had, okay? So I'm looking forward for us to be able to handle the scale that we are at with monday.

Question: Pinjalim Bora - JPMorgan - Analyst : Yeah, what about the cross-sell into the base? Because a lot of the CRM accounts, I believe, are still new, right? Is that cross-sell part of it? Is that growing over the last few quarters? Roy Mann - Monday.Com Ltd - Co-Chief Executive Officer, Co-Founder, Director So with SMBs, it's easy. They search in Google. They find us. It's also easy to cross-sell that way if you need to. But with the larger organizations, it's not that you just call them up and say, hey, let's replace your CRM because you're using us for work management or debt. And it's also like something where we're really happy to see with service that is happening that we kind of like talk with the same buying persona that we have for all the other products and sell them service. And in CRM, it's not like that. Like if we have dev, it's not the same person who would implement the CRM. So we need to navigate within the organization, and it needs to be in the right time. So we're seeing that happening really well with service. But in CRM, it's like easier, let's say, we have better options with new. And also, the world is still digitizing -- there's a lot of like greenfield out there of new businesses moving away from spreadsheet and how they manage stuff and want to digitize. And CRM is like one of the biggest areas of the digitization out there, it's probably the top one. And then I would say work management is the second, and then they look for to like change how they work. So that's also lots of demand we're capturing in that area. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 14, 2025 / 5:40PM, MNDY.OQ - monday.com Ltd at JPMorgan Global Technology, Media and Communications Conference

Question: Pinjalim Bora - JPMorgan - Analyst : You said material ARR?

Question: Pinjalim Bora - JPMorgan - Analyst : Okay. Got it. So right, let's talk about AI. That's kind of the actions have been doing really well for you. But it's AI strategy for you is broader than just AI actions, right? So talk about the overall strategy, how are you approaching AI? Roy Mann - Monday.Com Ltd - Co-Chief Executive Officer, Co-Founder, Director Yeah, so in general, we see as a technology and not as a product like we build products with AI and so when we look into monetization, we want to monetize the value out of each product rather than say, okay, we monetize AI? And we have like launched three pillars to our strategy, which was in the last quarter, added more stuff we're doing, but like let's talk about the three. One is like AI blocks which is inherent capabilities within the work OS to embed AI in every action you do. And I'll give an example. So the second one is AI Power Ups, which is embedded within our products. And the best example for that would be risk management for portfolios of projects, okay, that you have an AI that goes after every single change. And if there is risks that you won't meet the budget or the time line of a project. It like surfaces it instead of now where people just don't say until the last minute and then okay? So it's like a massive improvement to how people can manage projects that couldn't have been done until now. And the third pillar of our AI strategy is agents, which is essentially someone you can talk to that build stuff that does stuff that can help you manage things within the account itself. And so with the first one, which we monetized and it's the only one we monetize specifically the blocks, you have actions you can pay for. And everything you and action is like, for example, you have I give that example often because it's like cool and simple. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 14, 2025 / 5:40PM, MNDY.OQ - monday.com Ltd at JPMorgan Global Technology, Media and Communications Conference So we have like a CV screening board that you have CVs coming in. And you have a column that you want to say whether a person had like five years of experience in SaaS, okay? So that's usually something a human would need to read the CV to figure out. So you just like add a column that says yes or no to that question, and write a prompt five-year experience in SaaS. And then the AI goes into the CV, goes after every company that person worked for, figure out whether they are SaaS or not and then piles up an answer according to the number of years they work there. That's like a very complex task that only a human could have done until now, but it does automatically. And then you can also pull the e-mail, phone number, anything else you want and then sort the CVs and don't read any of them and know how which one to contact. So that like saves a lot of time and a lot of effort. And each one of those pieces of information you pull out is an action. It triggers the LLM to do an action. So whether it's complex or simple same it's one action, and we price for it. And that's why we're like still testing it out in terms of pricing and trying to see what's the right fit so we can have a very wide usage of everyone, but still like capture enough of the ones who get like a lot of value. So it's still like early for us to say what we should expect in terms of revenue for those stuff.

Question: Pinjalim Bora - JPMorgan - Analyst : AI. Roy Mann - Monday.Com Ltd - Co-Chief Executive Officer, Co-Founder, Director Yeah, so we don't price for general usage. We price for the thing you actually use, okay? So if you find that like something doesn't work for you, you stop doing it, and then you don't pay. So it's the result is dependent on the user itself, whether they like it or not, but there is no general payment, okay? And we separated the payment completely from anything else you pay. So if you're like a massive enterprise and you use 500 actions, you will still pay for that 500 actions like an SMB would. It's a completely separate pricing that is like per your usage and you obviously won't use it a lot if you don't get the value. So we kind of split it completely. And that's part of our strategy to also add other monetization methods that are not seat-based, that are based on value and scale rather than people using it or people that you hired.

Question: Pinjalim Bora - JPMorgan - Analyst : Yeah, one -- well, actually, maybe I should see you for questions. I think we have a mic somewhere. Such a big group, I don't even know where the mic is. Okay. There's a mic at the back. If somebody has a question. No? Okay. Let's go talk about the bot side because that's super new. We have not seen -- I think you launched -- did you launch one for kind of an internal bot that was supposed to launch in March? Roy Mann - Monday.Com Ltd - Co-Chief Executive Officer, Co-Founder, Director Yeah, so we have rolled it out for a closed beta, and we're experimenting with it. Like I think MCP changed a lot of the rules and like the what we can expect and what speeds were like saying amazing things you can build out of the MCP we've built. You just ask it to do stuff and it builds like great things on monday. So yes, I think we're on the right path there as well.

Question: Pinjalim Bora - JPMorgan - Analyst : Okay. We have about 1 minute left. I want to ask one question, Byron. In the last earnings call, I think earlier on kind of reiterated his confidence on the achievability of the base case for the medium-term model, which calls for 30% growth rate, right? And you also said something like some potential improvements in the margin target -- there was a language like lab. So maybe talk about what you say -- what gives you that confidence? And what is he talking about?