Here are my notes from the Monday.com (MNDY) interview with CFO, Eliran Glazer at the William Blair Growth Stock Conference that ended a moment ago.
06/08/2023 11:20 Central Time
Monday.com is a work Mgt. platform. Started as a project management software and went on to become a multi-product platform.
How we’re unique: Platform that is multi-product that customers can use to build their own tools.
Q CRM Rollout -first productized solution
A MNDY DB is already released to 30% of their customers. Very advanced so customers can use templates and customize as they need.
Q CRM product release, how will it flow through the income statement?
A Mostly seeing it purchased by SMBs, not yet big enterprise accounts. Close to 200,000 customers. Enterprises, they define as more than $50K in ARR.
Q Growing w/ customers
A 5 yrs ago, 80% of customers were acquired via online advertising. Enterprises currently comprise 28% of their ARR. Creating complex dashboards. Stands out: SMB and mid market are very stable (surprising)
Q MNDY vs. competitors
A Top of funnel activity from SMBs is very healthy. Everyone (competitors) decided to cut spending. MNDY saw this less and less. Big Brain is a very sophisticated system that measures everything they do at MNDY. Access to capital for private names is more challenging. MNDY in contrast doubled down on their investments and they continue to see healthy activity with customers. MNDY became more efficient and gained market share.
A Total S&M online marketing is 35% of total spend, the balance is headcount/sales people. Planning to bring more sales headcount to MNDY.
Q MNDY DB, what does it add?
A Significant upgrade to underlying infrastructure that is more attractive to enterprise-level customers in terms of speed, performance and scale. Makes speed 10X faster. Next year will address scale, and that internal investment/spend is going to go into 2025 . Won’t have any limitations in terms of going up market.
Q Laying the foundation to bring in bigger clients?
A Want to support large customers with multi-product solutions and eventually there will be additional products within the MNDY platform. We have close to 200,000 customers. Their number one integration is into Salesforce and number two is that MNDY Dev is able to integrate into Atlassian (Jira).
Q Product investments. How should we spend with your R&D expense
A 20% of revenue. Mostly based in Israel. It’s design and it’s product. Both Co-CEO’s came from an elite army group that is known for innovation. MNDY runs really fast and they’re not afraid to fail. Big Brain screens on every floor. Big Brain with R&D products and R&D results, people see the results of their work and it really drives employees as one of the main drivers of innovation.
A Coopetition with Sales Force and other organizations. When thinking of vertical completeness, can move to other parts of the software without changing screens. Because MNDY integrates with so many other software systems, they increase value to customers.
Q What have you learned from the CRM release to leverage w/ future offerings?
A Want to make sure if you’re selling customers something new, you have to provide them with value. Secondly, user experience w a CRM experience is different w/ developers. Do a lot of Beta testing before they launch to determine how it’s best to get penetration.
Q New customer differences?
A Last 4 years, there wasn’t really any normal years. Lots of fluctuations. The initial landing is bigger w/ MNDY, customer intent and customers are willing to spend more and the solution is stickier. Because they offer multi products is bringing in an audience that is bigger and healthier.
Q Free tier launch- what did you notice with existing customers?
A We were exposed to a much bigger audience. There are more MNDY products and company can offer more products.
Q FCF positive since IPO, how to balance growth and profitability?
A Number one for MNDY is growth. They have a unique opportunity in the next 2-3 years. MNDY is running on all fronts with small, mid-market and enterprises. It’s a greenfield market. 70% of market is greenfield. Excel is the #1 thing they’re replacing. This is the time to double down on their investment. Still a land grab.
me speaking here: Surprised they didn’t ask any obligatory questions re: AI.