I have a 3% position.
Q2 Revenue was $70.6 million. It’s up 19.72% from 58.9m sequentially. Company guidance for Q3 is just $74 to $75 million, an 5% increase sequentially. Not sure it’s sandbagging? But I see historicaly, Monday.com’s Q-Q revenue growth rate varied slightly from 14% to 18% during past few quarters. It averaged about 100% annual growth rate.
Its net dollar retiontion rate is increasing during past few years meaning exiting customers are adding more products/services.
It’s highly diversified across geography and no customer concentration risk.
Notable stats from S1: (meritechcapital)
-Monday has 127,974 customers across 200+ industries in 190+ countries and ranges from teams of two users to organizations of 7,000. The product is available in 13 languages. Monday has customers in ~38% of the Fortune 500 companies.
-No single customer accounted for more than 1% of revenue in the years ended December 31, 2019 and 2020 and for the three months ended March 31, 2021.
-Net dollar retention for all customers was 100%, 105% and 107% for the three months ended December 31, 2019 and 2020 and March 31, 2021, respectively.
“We delivered strong results in our first quarter as a public company, as strong execution and expanding adoption of monday.com Work OS drove total revenue growth of 94%. We are pleased with the momentum in our business that demonstrates continued high growth at scale,” said monday.com founder and co-CEO, Roy Mann. “monday.com Work OS is the leader in the low-code no-code market, and our business is accelerating as we continue to expand platform usage into use cases such as operations, project management, CRM, finance, marketing, HR, and IT,” said monday.com founder and co-CEO, Eran Zinman.
“Rapid growth in the second quarter was driven by large expansions within our existing base and strong growth upmarket as we continue to see momentum in Enterprise,” said Eliran Glazer, monday.com CFO. “While we have made tremendous progress in the last few years, we believe that we are still in the very early stages of our growth as a company, and our guidance for the balance of 2021 suggests a strong second half of the year as we continue to drive fundamental improvements to the future of work and collaboration for companies of all sizes globally.”
Second Quarter Fiscal 2021 Financial Highlights:
-Revenue was $70.6 million, an increase of 94% year-over-year.
-GAAP operating loss was $27.5 million compared to a loss of $28.2 million, in the second quarter of 2020; GAAP operating margin was negative 39%, compared to negative 77% in the second quarter of 2020.
-Non-GAAP operating loss was $9.9 million compared to a loss of $14.9 million, in the second quarter of 2020; non-GAAP operating margin was negative 14% compared to negative 41%, in the second quarter of 2020.
-GAAP net loss per basic and diluted share was $1.67 compared to GAAP net loss per basic and diluted share of $2.79, in the second quarter of 2020; non-GAAP net loss per basic and diluted share was $0.26 compared to non-GAAP net loss per basic and diluted share of $0.39, in the second quarter of 2020.
-Net cash used in operating activities was negative $0.4 million, with negative adjusted free cash flow of $1.5 million, compared to negative net cash used in operating activities of $13.9 million and $15.0 million of negative adjusted free cash flow, in the second quarter of 2020.
-Cash, cash equivalents, short-term deposits and restricted cash was $878.0 million as of June 30, 2021, including $21 million from borrowings under our revolving credit facility, and net proceeds from our IPO and concurrent private placement of $736.2 million.
Recent Business Highlights:
-Our net dollar retention rate for customers with more than 10 users was over 125%.
-The number of paid enterprise customers with more than $50,000 in annual recurring revenue was 470, up 226% from 144, in the second quarter of 2020.
-Announced monday workdocs, a completely new capability to monday.com Work OS, which enables organizations to take document collaboration to new levels. Documents are the starting point for work and monday workdocs is a completely new style of connected documents that are built to support collaboration, with live objects that update in real time whenever their source of data changes. The introduction of monday workdocs is a significant opportunity to provide our customers with new ways to create no-code, low-code software and expand how monday.com is adopted across organizations of all sizes.
-Announced the official launch of the free tier of monday.com, limited to two users. The free offering is designed to increase our market opportunity by driving awareness and broader adoption among a new set of audiences.
-Notable new customer wins or expansions during the quarter included Headspace, Wellington-Altus Private Wealth, Mintel, and Adyen.
-New strategic alliances with Global Systems Integrators across key industries such as manufacturing and real estate including Hitachi Solutions and NTT-Data.
-Continued international and geographic expansion with new channel partners, customer deals, and increasing our ARR in this region. Added Polish as a new supported language, increasing our total languages supported to 14 languages.
-For the third quarter of the fiscal year 2021, monday.com currently expects:
Total revenue of $74 to $75 million, representing year-over-year growth of 74% to 76%.
-Non-GAAP operating loss of $26 million to $25 million.
For the full year 2021, monday.com currently expects:
-Total revenue of $280 million to $282 million, representing year-over-year growth of 74% to 75%.
-Non-GAAP operating loss of $93 million to $91 million and negative operating margin of between 33% and 32%.