The question investors, I think, are asking: Was Monday’s growth a pull forward from Covid and are we going to see decreasing trends and possible churn in the future? Is the ramp up in spending trying to recapture that growth, or as CEO said on earnings call, are they cranking up the spend because their earnings and cash flow were better than expected, and they want to put that money to work in the continued land grab? I think only time will tell what the true story is, but the guide for 2022 is spooking investors into thinking the former.
I am not really sure what covid had to do with MNDY growth, tbh.
The products, as I understand them, are more about replacing older/less collaborative tools (sharing spreadsheets via email, as an example). This can also be thought of as a play in the low-code/no-code space, which seems to be a top CxO buzzword/desire these days.
It doesn’t matter if I am in the next row of cubicles, another city, or another country - improving efficiency and productivity is a positive for companies. In a real sense, it saves them money in the long run, too.
I thought this was a good primer, not just on Monday, but also in comparison to Asana:
As the modern enterprise undergoes full digitization to the cloud, many corporations appear to be turning away from sticky notes, pen & paper, and manual project management software to more fully automated, easy-to-use project management and workflow systems to capture all that information on the cloud.
Asana and monday.com are platforms that help modern enterprises and organizations with Project and task management, Status tracking, Calendar views, Organizer, communication, and Team Collaboration. Increasingly, these companies have introduced more low-code/no-code features for enabling the building of applications on their platforms, they have added more automated features and are gradually moving into more Customer Relationship Management and campaign management aspects of the organizations.
The biggest difference from my research is that MNDY has more automation features and they just introduced a new product called Workdocs (to be discussed later). monday.com appears to have more low-code/no-code application building capabilities of the software. Secondly, they have more automation features for users to easily automate manual or repetitive tasks. The company’s management team said “No-code automation and integrations is already being used by 100% of enterprise customers. 88% use more than 50 automations. Over the past year, customers have automated over 900M actions.”
There is more.
I see this as part of the already-in-motion move to digital transformation and cloud-based services/solutions, vs a pull-forward from covid.