Naughty and Nice ER Review: MNDY

Prior to semi-dissecting the MNDY ER I would like to not a couple of adjustments/changes to the highly popular Oh BOY!/OH POOP! Method Lists and Rankings.

  1. NET moved to the Naughty List #1

  2. UPST moved to the Purgatory List as #1 - Software Platform for Development of More Software

A Few Data Points:

Current Price: $104.51 (Intraday)
Range: 87.05 - 450.00
About 75% Below its High
Market Cap: $4.75B (Give or Take)
EV/Rev: 11.66
YTD Momentum: -68%

MNDY Reported Q1 2022 Today:…

  • Our first quarter revenue grew 84% to a record $108.5 million. This is an exciting milestone for us, as it represents our first $100 million revenue quarter as a company: ATTA BOY!

  • 50% of the Fortune 500 companies use our platform, up from 38% just a year ago: ATTA BOY

  • In Q1, the net dollar retention rate for customers over $50,000 in ARR was above 150%: Atta BOY!
    Among customers with more than 10 users, net dollar retention rate is above 135%. And among all customers the net dollar retention rate was over 125%: ATTA BOY!

  • In the first quarter we increased sales and marketing spend by approximately $50 million, up 84% from Q1 '21: OH POOP!

  • First quarter gross margin was 89%: ATTA BOY!

  • Sales and marketing expense was $108.6 million or 100% of revenue: OH POOP!

  • Operating loss was $43.8 million, and operating margin was negative 40%. Net loss was $43.2 million and loss per share was negative $0.96: OH POOP!

  • Adjusted free cash flow was negative $16.2 million reflecting the additional investments we made during the quarter: OH POOP!

  • For the second quarter of fiscal year 2022, we expect our revenue to be in the range of $117 million to $119 million representing growth of 66% to 69% year-over-year: OH POOP!

  • For the full fiscal year 2022, we now expect revenue to be in the range of $488 million to $492 million representing growth of 58% to 60% year-over-year: OH POOP!

  • We expect a full year non-GAAP operating loss of $139 million to $135million and a negative operating margin of 28% to 27%: OH POOP!

  • Market Reaction to Report: OH POOP!



Very happy that I left MNDY a while back. If you’re looking for players for your roster - and you look at their performance in this most recent ER - It’s fairly obvious that MNDY couldn’t play dead in a western. Just about every aspect of their business is going the wrong way down a one way street.

All the Best,

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