MNDY vs. ASAN vs. SMAR Metrics

MNDY, ASAN, and SMAR have now each reported their latest earnings. Here are some metrics to compare them:

First up is MNDY.

Last 5 quarters of YoY revenue growth:
102%
88%
85%
93%
95%

QoQ revenue growth:
17%
18%
18%
20%
18%

Sequential 50k customer growth:
28%
43%
27%
40%
30%

Sequential 50k customer additions:
41
79
71
135
143

Non-GAAP EBIT margins:
-73%
-47%
-39%
-14%
-11%

Now for ASAN…

YoY Revenue growth:
55%
57%
61%
72%
70%

QoQ Revenue growth:
13%
16%
12%
17%
12%

50k customer growth:
12%
25%
22%
23%
24%

50k sequential customer additions:
35
79
88
113
141

Non-GAAP EBIT margins:
-63%
-51%
-43%
-43%
-41%

And lastly, SMAR…

YoY Revenue growth:
38%
40%
37%
44%
46%

QoQ Revenue growth:
8%
11%
7%
12%
10%

50k customer growth:
18%
14%
10%
11%
12%

50k sequential customer additions:
200
184
159
182
222

Non-GAAP EBIT margins:
-15%
-5%
-10%
-4%
-2%

Now for some observations:

Even though ASAN has 27% more TTM revenue ($335 million vs. $263 million for MNDY), MNDY added more 50k customers in the most recent quarter (143 vs. 141).

It is interesting to note that ASAN actually made a bigger jump from last quarter when they were at 113 vs. 135 for MNDY.

That is something to keep an eye on. However, MNDY grew 18% QoQ and ASAN grew 12% comparatively. Even though the absolute amounts were similar for customer additions, MNDY grew enterprise customers by 30% sequentially vs. 24% for ASAN.

That’s not a huge difference but MNDY is still clearly growing faster.

And then the bottom line is a huge difference.

MNDY’s non-GAAP operating margins went from -73% to -11% YoY and ASAN’s went from -63% to -41%. That is a difference of 4000 bps!

In fact, if you look at MNDY’s non-GAAP incremental margins, they were 53% last quarter.

The equation for that is: ((-9.4 - (-30.9))/(83-43)

53% incremental margins are very impressive. Incremental margins aren’t a perfect measure but they can hint at what margins could be like in the future.

Put another way, over the past year, while MNDY added $40 million in revenue, they improved losses by about $22 million. So you’re looking at the margins on that incremental $40 million in added revenue.

If we extrapolate that out and next year they added $80 million in revenue, non-GAAP EBIT would have to be roughly $30 million to reach 50% incremental margins.

Right now in Q3, non-GAAP EBIT is -$9.4 million. On an incremental $80 million, losses would have to improve by about $40 million (40/80=50%)

In that case, non-GAAP margins would be 19%, up from -11%.

So you see that if a company continues to have very high incremental margins, actual margins trend toward the incremental number. That’s why it’s a hint at the future. However, there will likely be a plateau somewhere in the future as companies can’t just keep growing at insanely high rates without putting capital to work. Ideally, they can but competition usually competes away gigantic profits.

On the other hand, ASAN’s incremental margins were actually about -9% because their absolute dollar losses increased rather than improved.

All that to say, MNDY has the highest growth out of any of these companies and the highest incremental margins (SMAR isn’t too bad at 27% actually). This combination reveals that, although it’s a crowded space, MNDY is certainly executing very well.

I will continue to monitor the comparisons between these companies but for now, it seems clear that MNDY is the strongest by quite a bit.

  • Fish
95 Likes

While it looks like a lot of folks were able to make these ‘last-5-quarters’ comparisons using their scroll wheel, I couldn’t, so I thought I’d tabulate the comparison items to make the post less “tall” and easier to digest for those with wide enough reading spaces.


Last 5 quarters (most recent at bottom):
+----------------+----------------+----------------+----------------+---------------------+
| YoY rev growth | QoQ rev growth | Seq 50k CusGro%| Seq 50k CusAdd | NonGAAP EBIT margin |
+----------------+----------------+----------------+----------------+----------------+----+
| MNDY ASAN SMAR | MNDY ASAN SMAR | MNDY ASAN SMAR | MNDY ASAN SMAR | MNDY ASAN SMAR |
+----------------+----------------+----------------+----------------+----------------+
| 102%  55%  38% |  17%  13%   8% |  28%  12%  18% |   41   35  200 | -73% -63% -15% |
|  88%  57%  40% |  18%  16%  11% |  43%  25%  14% |   79   79  184 | -47% -51% - 5% |
|  85%  61%  37% |  18%  12%   7% |  27%  22%  10% |   71   88  159 | -39% -43% -10% |
|  93%  72%  44% |  20%  17%  12% |  40%  23%  11% |  135  113  182 | -14% -43% - 4% |
|  95%  70%  46% |  18%  12%  10% |  30%  24%  12% |  143  141  222 | -11% -41% - 2% |
+----------------+----------------+----------------+----------------+----------------+
one summary item discussed:                5Qtr margin improvement: |  62%  22%  13% |
                                                                    +----------------+

[many excellent findings]

All that to say, MNDY has the highest growth out of any of these companies and the highest incremental margins (SMAR isn’t too bad at 27% actually). This combination reveals that, although it’s a crowded space, MNDY is certainly executing very well. I will continue to monitor the comparisons between these companies but for now, it seems clear that MNDY is the strongest by quite a bit.

Thank you, fish13, for providing and interpreting this comparison info.

-n8 (hope that helps)(long MNDY)

64 Likes