LCNC Market Opportunity

I feel there has been some confusion about Monday’s applicability as organisations undergo their digital transformation. Hopefully this post helps.

https://mondovisione.com/media-and-resources/news/digital-tr…

The article (above link) from Mondovisione dated 20th Jan 2022, goes to highlight that LCNC solutions are seeing an acceleration in adoption post covid and VC funds are focusing more on more in this area.

One key quote that stood out to me – “VCs seemingly consider LCNC technologies as part of their core investment strategy backed by the ‘software is eating the world’ phenomenon now more than ever while most companies are still challenged to quickly develop software due to the lack of skilled developers”

Contrary to opinion that these solutions may not be as critical as security or observability, the industry seems to be indicating otherwise.

However, unlike some of our other positions (DDOG, SNOW), there doesn’t seem to be a “top dog” in this industry. Given the highly competitive landscape and large TAM I wouldn’t be surprised if Monday goes harder in their S&M and perhaps we don’t see the operating leverage come through in the next earnings report. That won’t bother be as long as the revenue growth accelerates as well as their customer count.

The above article along with the latest cloud numbers posted by Microsoft, makes me quite comfortable with my Monday investment.

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