Here are my notes from the Q/A section of MNDY’s quarterly results.
MNDY Q1 FY23 Analyst Q/A
05/15/2023 7:30 AM Central Time
Q Company direction in the future?
A Focusing on what they have now. Going forward see MNDY going into areas they’re highly differentiated and not going down specific vertical areas. Will allow the community to fill these.
Q Expand on generative AI. Is it your own product?
A We think about our already capabilities and automating these using AI. Make the platform work for you to further automate that. Make company more efficient. MNDY has a unique data set.
Q MNDY DB data set -please expand.
A Ahead of schedule, now open to 30% of customers. Super positive feedback from customers. Going forward, further release MNDY DB 1.0 by end of next quarter. Further release additional expansions.
A $7M and $5M and see opex savings. Looking at challenging macro conditions. Overall efficiency and cash generation is looking good. Took this into account when considering their guidance.
Qc Continued growth. Has there been a change in the overall environment? Rank out performance items.
A MNDY offering being so broad. 70% are non-tech. Quality of customers they’re joining is even higher than before. All these things combined have created a great environment.
Q When you say letting the 3rd parties expand the verticals. Is MNDY then required to expand?
A Builders/developers can build because there are no walls/limits. Will continue to expand the capabilities of MNDY wherever there is growth as pushed by customers.
Q Go to market
A CRM is going really well and good momentum acquiring customers. Doubling down on work management, the bread and butter of MNDY. Overall strategy, packaging products and seeing signs of ability to cross sell the products. There’s a lot of upside and optionality built into their model.
Q NRR is being pressured. Where are new customers coming from?
A Continue to see slowdown. Larger customers especially are becoming more optimized. Expansion into CRM is big. Gross retention will be at least more slower.
Q Strength of demand is impressive. What’s driving the optimism re: near term.
A Seeing strong customer demand around all customer segments. Enterprise has been slower due to macro. 200 customers were added. 80% vs. 70% in the past. MNDY DB is providing a positive for the future. Broad-based strength.
Q Guiding for profitability by end of year. What do you plan to do with the $?
A Continue to invest in the business w/ organic growth. MNDY is a very innovative company. Also thinking about potentially M&A that is strategic in the longer term. Mostly organic growth will be their focus with the $.
Q Converting customers
A Seeing both CRM products and flexibility to operate their business as well as their workload product. Opens the opportunity for expansion into other product areas (optionality).
Q Where are we re: cost per add?
A Still seeing cost per add and media as way cheaper than it was a year ago. It’s stabilized and not seeing any more reductions. Customers they’re gaining are really looking for solutions. Better customers than they would have seen a year ago.
Q Strong enterprise customer adds at 200.
A It’s more about MNDY’s expansion and go to market team’s work. Continue to double down on this.
Q What’s driving enterprise growth?
A Customers are buying more seats.
Q Raised guidance more than double than in the past. What’s driving this?
A They expect to see strong demand and this allowed them to make better guidance prediction.
Q Do you envision a world 3-4 years w/ other pre-built apps in addition to CRM and work mgt?
A Probably going to add HR and other products on their platform. Definite opportunities there and with other applications people can build on their platform. See 5-6 additional applications into the future.
Their customers are building whatever they want on top of the platform. MNDY has great visibility into these applications based on what their customers are building and they expect to let their customers drive this and respond accordingly.
Q Customer ecosystems.
A Great momentum with customer ecosystems. Enterprises help onboard customers and it’s been a great way to sell and they continue to invest in this.
Q How do you see your AI expanding your customers?
A We’re super excited about AI. MNDY has been a place where we give customers more power to expand their tools the way they want to. In a great place and this is a great opportunity. No specifics as to how and what quite yet.
Q SMB cohort and how that’s trending?
A In the last few quarters, SMB and enterprise have grown nicely. Doubling down in both SMB and enterprise. See a lot of durability in both areas.
Q V2 & V3, where will future iterations be?
A Started with smaller and larger accounts and have a good mixture with most coming from larger accounts. Dashboards will be blazing fast, more scaling opportunities, offer ability to expand easier.
Q MNDY DB, is it essentially live with everything it will come with. How quickly can it ramp up?
A It’s far from where they want it to be. Very pleased with the rate of adoption.
Q Billings growth was up at 43% vs. 41%. What drove this?
A We look more at revenue growth and new customers.
Q Where have you seen the best uptick in CRM. Any specific verticals?
A No specific industries/verticals. What’s surprising is that people are migrating from legacy CRMs and go to the next level w/ MNDY. Plan to offer this more proactively.