Why I invested in Monday!
Let’s forget about comparing its metrics to Asana as it seems to make Asana investors nervous and crotchety (perhaps because Monday is better in almost every metric but sheer size, where they are just one reporting quarter behind). I will just give Monday’s metrics.
Let’s start with Revenue by quarters:
**2019: 13 17 21 27** **2020: 32 36 43 50** **2021: 59 71**
As you can see they more than quadrupled their revenue from two years ago, in each of the last two quarters.
Last quarter they were up 94%, which was an acceleration from 84% the quarter before. In 2020 they were up by 146%, 115%, 105%, and 85%, and their annual revenue growth was 106%. Clearly this is a rapid grower.
Sequentially their revenue grew quarter over quarter by 13%, 19%, 16%, 18%, and then 20% in the most recent quarter.
As far as their enterprise customers, which they define as customers over $50K (the same metric that is used by Asana), they have been growing at an amazing rate:
**2019: 9 23 46 76** **2020: 105 144 185 264** **2021: 335 470**
They grew the number this quarter from 144 to 470, up 226% (more than tripling), which was no fluke, as they grew last quarter by 219%, and the quarter before by 247%, etc, (more than tripling each quarter) so larger accounts are signing up like mad. Their sequential growth was an astounding 40%, and 27% the quarter before, and 43% the quarter before that. Also no fluke.
Adjusted gross margin was 89.7%, up slightly from 89% sequentially, and from 88.35 yoy.
Their NRR for customers with over 10 employees was 125%, up from 121% sequentially
Adj Op Margin went from -41% to -14% so they are closing in on break even
Op Cash Flow went from -13.9% to -0.4%
Free Cash Flow went from -15.0% to -1.5%
Cash was $878 million
Excerpts from the earings report and Conference Call:
What their platform is: A work operating system (Work OS) where organizations of any size can create the tools and processes they need to manage every aspect of their work…
We delivered strong results in our first quarter as a public company, as strong execution and expanding adoption of Work OS drove total revenue growth of 94%. We are pleased with our momentum with continued high growth at scale,” said co-founder and co-CEO, Roy Mann.
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 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. 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.
Recent Business Highlights:
• In enterprise we are focusing on security control features and governance. And that’s enabling us to get into larger customers.
• Announced workdocs, a completely new capability for Work OS, which enables organizations to take document collaboration to new levels. Documents are the starting point for work and 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 workdocs provides our customers with new ways to create no-code, low-code software and expand how we are adopted across organizations of all sizes.
• 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.
• New strategic alliances with systems integrators, including Hitachi Solutions and NTT-Data, across key industries such as manufacturing and real estate.
Continued international expansion with new channel partners, customer deals, and increasing our ARR. Added Polish as a new supported language, increasing our total languages supported to 14 languages.
Saul here: with that kind of growth and execution I couldn’t resist and took what is now an 8.2% position. I felt that this is exactly what we are looking for in a new company.
I hope that this helps.
Links to the Knowledgebase for this board is in the Announcements panel that is on the right side of every page on this board. (It’s in three parts)
For some additions to the Knowledgebase, bringing it up to date, I’d advise reading several other posts linked to on the panel, especially “How I Pick a Company to Invest In,” and “Why My Investing Criteria Have Changed,” and “Why It Really is Different.”