Thank you, thank you. Good morning, everyone. Welcome to monday.com's 2025 Investor Day. We're delighted to have so many of you with us here in New York. We also want to send a warm welcome to those of you joining us virtually. We're thrilled to see such a strong interest in this year's Investor Day. In fact, we had three times as many registrants for this Investor Day compared to 2023, which I think is a clear reflection of the growing excitement around the Monday story and the opportunities ahead for us. Today, you'll hear from our leadership team about the next chapter of growth at monday.com. We'll begin with our Co-founders and Co-CEOs, Roy Mann and Eran Zinman. They'll share their vision on how AI is reshaping work and why monday.com is uniquely positioned to lead in this new era.
From there, Daniel Lereya, our Chief Product and Technology Officer, will focus on how AI is embedded across our entire platform and across all our products and has helped accelerate adoption of Monday. It's also helped accelerate innovation and value for our customers as well. Next, our Chief Revenue Officer, Casey George, will outline our go-to-market model and how it continues to evolve as we expand upmarket and scale multi-product adoption. Last, but of course not least, our Chief Financial Officer, Eliran Glazer, will provide a closer look at our financial strategy and how we balance our strong top-line growth with continued improvements in profitability and cash generation. All right, the fun part. Before we begin, I'll remind you today's presentation includes forward-looking statements, which are subject to risk and uncertainties, as outlined in our SEC filings. We'll also be discussing some non-GAAP financial measures.
Those will be reconciled to our most comparable GAAP financial measures in our materials. Now, with that said, let's get started.
Hey, Sidekick, can you tell me about monday.com and how it's changed over the years?
Sure. Let me quickly scan the company's workspaces for the main milestones from the past two years.
I'm looking for the most exciting milestones.
You got it. The numbers will speak for themselves. Two years ago, we shared a strategy to become a multi-product platform enabling the workflows that run today's most dynamic organizations. From work management to CRM, dev, and most recently, service, we've expanded upmarket, building for larger, more complex teams. We've raised the bar. One customer now runs monday.com across 80,000 seats, a clear testament to meeting enterprise needs. Today, we're living through a generational shift. Soon, AI won't be something you use. It'll be the driving force reshaping how work gets done. At monday.com, that future is already here. We've moved from managing work to actually doing the work. With a scalable, customizable, and adaptable platform as the foundation, AI can do the work for every team, not just technical ones. Our global organization of 2,900 people supports over 250,000 customers across more than 200 industries.
Scale that's possible only when every team can move faster together. With more than $1.2 billion in ARR, we're just getting started. We're scaling from here, building the infrastructure and products that enable the world's most ambitious organizations to lead in this new chapter. Let's shape the new era together.
Please join me in welcoming Co-founders and Co-CEOs of monday.com, Roy Mann and Eran Zinman.
Hey everyone, good morning and welcome to 2025 Investor Day. I want to join Byron and say how much we appreciate all of you for coming here and joining us on this exciting day. Let's get started. Definitely, AI is a very, is a transformative technology. It changes almost anything for our customers, the way they perceive value they can get from software. It changes how companies go to market. It changes how companies scale. It touches almost any aspects of our customers and ourselves as a company. With monday.com, we embrace that and we want to go all in on AI. This is exactly what you're going to hear today.
You're going to hear about big bets that we're making as a company, changes to our products, new products that we're going to launch, and we see this as one of the most amazing opportunities we have as a company going forward. We just don't want to just add AI layer on top of our product. We want to make significant changes to our roadmap and to our existing products. When we look at the three main guidelines that guide us through this journey, we are going to go through each one of them. We see one of the main guidelines is the fact that companies now have the ability to have almost an infinite workforce. Essentially, what this means is that AI is one of the biggest leverages that software can offer today in terms of scaling customers and scaling businesses.
We feel that with AI, you can do so much more with the same headcount, and even the existing headcount can become much more efficient. This is one of the big bets and guidelines that guide us through this journey and the roadmap that we're going to have. The second one is the fact that software, in a way, becomes more accessible, not just for developers, but almost for anybody in the organization. You no longer have to be a tech person or to know how to code in order to build software. In a way, this is our vision on steroids. We always aim to have the most flexible software for our customers. With this VibeCoding motion, we can give you even more freedom to our customers. Like the first one, the second principle, we're going all in.
You're going to hear today exactly how we're going to leverage VibeCoding with our existing platform and how those two things come together and offer a solution that's not only customizable and flexible, but also is enterprise-ready and ready to scale. The third part of the principles that guide us forward is the adoption. We feel with AI, technology is moving very fast. When it comes to actually adopting the technology, I think ourselves and also our customers are way behind. This is one of the things we're aiming for. With monday, it was always important for us to aim for tech and non-tech customers and for all segments. We are exactly positioned to bridge that gap between technology and actual usage. Given all of that, we're amplifying and changing our company North Star. This is a big deal.
For years, since we started the company, our mission was to manage the core work for our customers. With AI, this vision is amplified. Our vision now with AI is to do the core work for our customers. Not just manage work, but actually doing the work for our customers. You will see throughout the day how this impacts our roadmap and exciting new features we're going to announce. Already, we've seen amazing traction with AI features that we've launched. Up to date, there's already over 67 million AI actions on our platform. In addition to that, in the past nine months, we've been very busy. The busiest we've ever been as a company, working very hard to create new products and add add-ons to our existing products. We launched Monday Sidekick, which Daniel is going to present today. Already 45,000 actions in Monday Sidekick alone.
We launched MondayVibe, which is essentially a VibeCoding platform on top of our platform. Already 7,000 apps were built in just two months. With Monday Magic, which helps you build solutions, 2,000 solutions were built in less than three months. We've never seen traction like this in any feature we've released. Our customers are thirsty for AI usage, and the adoption is off the charts. We're going to address each one of those guidelines today. We're going to talk about the unlimited workforce. We're going to announce Monday Agents, which is a new product. We're going to talk about Monday Sidekick and show it to you. I've already seen amazing usage. We're going to show you how we're tackling that ability to build software with Monday Magic that helps you build solutions on top of monday.com and MondayVibe that helps you VibeCode on top of monday.com.
We'll walk you through each one of our products and show you how we're going to bridge that gap between AI capabilities and the adoption of those AI features. It's going to be very exciting. Again, thank you for being here. Before we talk about all those new features, we want to take a step back and talk about the company and our growth for the upcoming years.
Thank you, Eran. I'm joining Eran saying thank you for coming here today. We're super excited about this. I want to walk you through some of the numbers we've seen and where we are as a company right now. In the first half of 2025, we made tremendous growth. We're now at $1.2 billion of ARR. We also have a massive number of customers. We have like 250,000 paying companies, paying customers.
That's a huge base we're going to build on in our next chapter. All that growth we've done with extreme efficiency. It's not something that was by accident, like the efficiency part. It's something very intentional. It's how we build the company. It's how we want to build things and go towards growth. It shows, it shows like in the Rule of 60 or Rule of 40, which we are in 60. That's something we put a lot of emphasis on in our execution. It's very deliberate. Currently, with our multi-product strategy, we sit in four different growing markets. It's an amazing base to keep moving forward as we see those markets evolve and grow with us. Talking about multi-product, this is a super interesting graph. I love it.
This is like when you see the purple line is monday.com's growth when it was in the beginning, since we started when we launched. You see the ARR growth we had back then in the day. We kind of aligned every other product to that timeline, from launch to how it scaled. Last Investor Day, we showed you monday.com CRM and we showed it was like five times faster than our initial growth. Look at it now, how it broke out and continued to scale amazingly well. Service is behaving very much like CRM. We see that same growth trajectory and scale and the demand from the market with a completely different go-to-market, by the way, which is also interesting. Dev has very healthy growth as well. When we talk about our existing customer base, we see a huge opportunity in scaling them into the multi-product strategy.
Currently, we have only 6% penetration within our customer base that use multiple products. We have a huge potential going forward. Casey is going to talk with you about the things we're actively doing to go after that potential. I want to talk about the new side of things, like the new customer, how we acquire new customers, and even going deep a little bit into our marketing engine. On the graph, you see our performance marketing engine, a part of the engine. You see that the spend, the purple bars, are the spend. You can see that it changes over time. It goes up, it goes down. We deliberately do that. We tweak our spend into areas that we know will work efficiently. We do that, as we said before, with Big Brain. It's all automatic, and we know how to move budgets, so it'll be done efficiently.
The white line shows the % of performance marketing from our entire S&M budget. You can see it's going down over time, meaning we add more capabilities to our go-to-market engine. Performance marketing is becoming a smaller % of that greater whole and how we go after new customers. We currently have over 55 different acquisition channels, like different channels. We wanted to highlight one of them, Google Search, which, with AI, there is some uncertainty on that engine. Google Search is only 10% of our new ARR. That's its part. I know we talked in the past about the signups, that it's like 30%, around 30%. In ARR, in new ARR, it's only 10%. When we talk about AI and marketing, one interesting thing is the AIO.
It's a new field that when customers search for solutions within a ChatGPT or other such apps, AI apps, and they come to us. We see the traffic. They get a result with monday.com. They click it, they come to us. We see the traffic that we get from AIO growing bigger and bigger. It's exponential. It's still fairly small, but it's growing steadily. We put a lot of emphasis into making this work. With Big Brain, we are working hard to build the systems that will help us monitor, optimize, and also succeed in this area, adding to our entire marketing machine. Let's dive into a new aspect of the new engine. I'm still in the new customers. As a trend, we are moving from quantity to quality. We are looking for the better customers all the time in our new marketing engine.
You can see over time that the new land, meaning the initial payment we got from customers, has grown over the years. Also, a larger and larger % of them is choosing our enterprise tier, our highest tier, as the first tier that they choose. This is a clear indication that we acquire better customers, let's say larger companies, higher ACV customers. It's a trend. It's a deliberate one. That's something we optimize for. We did it with a price increase and a lot of other stuff we do to optimize for that.
Apart from having a very powerful acquisition engine, another big focus for us as a company is going upmarket. This is an interesting chart that shows how many accounts or customers we have with ARR over $500,000. You can see just four years ago, in 2021, we had only five accounts over $500,000. That's been exponentially growing.
Now, over 68 accounts are over $500,000. We see these accounts continue to expand with very healthy NDR. The average contract value is $900,000. The more interesting part is that on average, each one of those customers has about 15 use cases, meaning different departments that use monday.com for different things. This just goes to show you how sticky the product is, how versatile it is, and how many usages we usually have with one customer. It's not just one champion or one use case. The product is very sticky across the whole company. Going forward, obviously, we're continuing to invest in that motion of going upmarket. Casey will talk more about this going forward. Roy mentioned ACV going up in terms of new customers.
If we have a broader look across our whole customer base, looking back even a decade long, you can see that our ACV on average throughout our entire customer base has 5X. With all those new features we introduced, the new products, MondayDB, platform capabilities, the value of our customers and the value they get from monday.com have dramatically increased. We plan to increase this going forward. It means that today, every customer is 5X more valuable than what it was just seven or eight years ago. Going forward, we're confident that this trend will continue. We will continue to increase the ACV and the footprint we have with our existing customer base. I want to talk about our internal growth and efficiency going forward.
We talk a lot about the product and our customers, but also we as a company, like Roy mentioned in the beginning, aim for very healthy growth and healthy efficiency. In 2026, we plan to scale our headcount by only 20% after 30% in 2025. We do that by leveraging AI and just increasing efficiency overall. You can see here a few examples. Casey and Daniel will cover that in their own section. Basically, we're leveraging AI internally to make our sales team more efficient, to make our customer support more efficient, and to make our R&D more efficient. I think that going forward, 2027, 2028, we'll be able to scale the company even more while increasing the headcount in an even less significant way in 2026. We talked a little bit about our business model and about our AI vision.
Let's talk a little bit about becoming more concrete about the future of monday.com.
Cool. Eran talked about our transformation of our vision. That's the first time we've done that. The first time we've changed the vision of the company from managing work to doing the work. That's very significant. It's very inherent in everything we do in the company. Daniel will talk about that, the transformation we've done, because we do see AI as a transformative technology. It enables us to do some things we never could have done before. Obviously, you're going to hear a lot about it. I'm going to walk you through some of the highlight changes that we're making within the product suite themselves. We have also new products that you'll hear about during the day. You know we're making massive bets into that space. You're going to see some of them today.
Work management, we are the leader of work management. We have 80,000 seats for one large customer, and like Eran showed, a lot of other large customers. We are becoming better and better at managing at scale with work management, going deep and leading that category. With that, we are transforming the visions for work management, for managing work to actually doing the work. We know what customers are doing. It's in there, right? The project, the task, everything. We are launching a Sidekick that is a personal agent that actually does the work for you, and it's just one click. You'll see it. It's amazing. In CRM, we reached $100 million of ARR. You saw the growth.
From managing sales, managing sales pipelines, workflows, processes, we are now making a massive bet and going also into actually doing the sales, making the phone calls, closing deals, prepping everyone, like in a lot of like AI stack to really transform CRM into AI and really looking deep into the future and making the bets of where this market is going to go to. Monday Dev. Monday Dev is about managing sprints, managing building software. We manage the whole aspects of it, not just the development cycle, but also product and design and everyone around it. In Dev, we are adding or transforming to not only manage those projects, but also to orchestrate all the AI software creation, meaning if you orchestrate everything on monday.com, if you manage everything, you can also manage how AI is involved in that process and is executing your software creation.
In service, we've closed over 1 million tickets by now, but it is about managing requests and information, portals, and knowledge. The future of that field is not only managing the tickets and the service, but also doing it, solving the tickets, or even solving the problems before they are tickets. In that area, we're making great bets into actually solving the problems that arise instead of just managing tickets.
In addition to those changes we're making to the products, we'll also keep investing into our platforms. It's one of our biggest assets and one of the things we're going to leverage for AI usage and AI capabilities. In terms of the platform, we have MondayDB, which is the most flexible database that we've created a few years ago. We successfully launched MondayDB 2.0, and we're now starting to gradually release MondayDB 3.0.
MondayDB is the most flexible database that was ever created for our customers. With AI and VibeCoding, this is the perfect recipe for success and offering even more flexibility going forward. Daniel will talk about it. In addition to MondayDB, we added a lot of capabilities to the platform itself. We feel all those things are going to help us achieve that vision even more successfully. Let's talk a little bit about monetization of our product. Definitely, AI changed a lot of things. When we look at our current products, they're currently seat-based: work management, CRM, dev, and service.
Those products are going to move to become hybrid pricing, meaning you're going to pay for seats, but all the AI capabilities we're going to add on top of it, for example, Monday Sidekick and MondayVibe on top of it, and other AI capabilities that we added, like AI blocks, are going to be based on consumption. Eventually, as a customer, you're going to pay a hybrid model of seats and AI usage when you use those products. When we think about those new products we're launching and announcing today, like MondayVibe as a standalone product, and also Monday Agents, they're going to be 100% based on consumption, meaning you're not going to pay for seats, but you're going to be paying on usage. We feel this is a transition that's going to go throughout the industry over time.
We feel the hybrid approach is right for existing customers and existing products, and the consumption approach is right for the new products and the new go-to-market that we're going to introduce.
Maybe it's worth adding that like Monday Sidekick, Monday Vibe, and Monday Magic are available now, but it's in beta. We didn't release the pricing yet. It's coming.
If I have to summarize everything we've talked about now, I think what we're showing here now is, one, we're going all in on AI. We're making changes to our products. We're building new products. We're making big bets on the future where this is going. We feel we have everything in place in order to chase that vision and to have an amazing opportunity for future growth. We continue with a very durable business model going forward.
We build great engines like the acquisition engine and the enterprise engine that we built, and we're going to continue to scale them, as you're going to hear today. We continue with a multi-product strategy. We feel that in each one of those products, CRM, dev, service, and obviously work management, we have the biggest opportunity ever to achieve success and scale. Everything changed, and we feel it's a clean slate. There's a lot of opportunity for growth and expansion. We're going to double down on cross-sell of our products with our existing customer base. It has a huge opportunity. We continue to scale our acquisition machine and adjust it for the new AI era. A lot of exciting stuff coming up. Just to summarize what you're going to hear today, Byron mentioned this. Right after us, we have Daniel, who's going to show you all those new products.
I'm sure you'll be excited. We have some great videos to show you, and then Casey is going to talk about our go-to-market strategy, going to the enterprise, but also serving mid-market and how we're going to scale this organization. Finally, Eliran is going to walk you through our plans and our financial profile for the next few years. I want to say that we're personally very excited. We feel this is an important milestone in the lifetime of the company and excited for the future and the opportunity we have. I also want to say that today and tomorrow we have Elevate, and you're all welcome to join. We have a lot of demos and things we want to show, and we'd be happy to host you as part of Elevate as well. Again, thank you for coming, and hope you enjoy the rest of the day. Thank you.
Thank you.
Thank you, Roy and Eran. What an amazing execution we've had over the past couple of years, and what amazing opportunity we have ahead of us. Let's continue with the product theme. We're going to bring our Chief Product and Technology Officer out, Daniel Lereya. If you recall with Roy and Eran, they walked through all the stuff we've really built out over the past five years. Daniel's been with us for nine years now. All the multi-product, the three new products, the whole new database, MondayDB architecture, the apps marketplace, all the new AI offerings, it's all Daniel and his team. I would put Daniel's team up against any of our peers when it comes to rapid product innovation. Let's bring out Daniel right now. Thank you, Daniel.
Hi everyone, and good morning. My name is Daniel, and I'm the Chief Product and Technology Officer at monday.com. I'm very excited to be here today, and thank you for joining us. You know, AI is such a transformative technology. With AI, it's a new world of work. It's a world where you can have the perfect solution for any need in seconds. It's a world where you can have infinite agents actually doing the work for you. This presents a huge opportunity. Businesses can now be infinite times more powerful, regardless of their size. They can push for unprecedented efficiency. They can provide service with superior quality. All of these changes dramatically change the expectations people have from work software, basically from managing the work to doing the work for you. We at monday.com are betting on this future of work.
That's why we've been extremely busy over the last few months and over the last year, building towards this future. Before we dive into our strategy, let's take a look back for a moment. Two years ago, I shared our culture of speed and execution sets us apart. That culture is exactly why we could move so fast in this new AI era. Our entire R&D team has gone all in on AI, changing how we work, accelerating innovation, and all of this in order to lean into this massive opportunity ahead. Now, I want to take you through the outcomes of this major shift that we did. AI is fundamentally changing a lot of things, but it also changes the way people adopt, onboard, and enhance work solutions. The barrier for having the perfectly tailored solution for every need is lower than ever.
The time to value can be near immediate. That's why we built a new AI product. It's called Monday Magic, translating user intent in plain English to a full monday solution in minutes. Let's see it in action.
Meet Monday Magic. Now you can harness the power of AI to build any work solution you can imagine right on the monday.com platform. Construction, legal, hospitality, insurance, manufacturing, whatever you run, just go to monday.com/magic and describe your business needs. You'll get a robust, tailored work solution instantly. Want to adjust your solution? Just say the word. The cool thing is, Magic will create an onboarding video just for you to onboard your team to your new work solution.
Welcome to the maintenance request solution Magic built for you. Here's a walkthrough of your new solution.
From prompt to work solution in seconds. Whether you're power users or just starting out with monday.com, you can build any work solution with Monday Magic by monday.com.
Monday Magic, as you should have seen earlier, is already live with over 2,000 work solutions already built on top of it. These solutions actually span across almost every industry and use case, from a concert venue asking a solution to manage events, artists, partners, and guests, all the way to HR managers building a solution to track and manage the employee lifecycle. Moving forward, we're going to continue and elaborate Magic, making it an integral part of how we acquire, onboard, and support our customers. Moving forward to VibeCoding. VibeCoding is actually transforming how software is being created. It's so exciting to see that by leveraging the constantly improving power of large language models, people can now create software with just plain English. Looking into the future, the potential for it is endless. This is why we created MondayVibe, monday.com's VibeCoding tool.
It's a new separate product for leveraging the power of VibeCoding, but this time for work. Let's see it in action.
Have you ever asked yourself, can I do this in monday.com? The answer is simple. Yes, you can. We took monday.com, added VibeCoding, and created MondayVibe, the game changer that lets anyone build custom business apps in seconds with AI. No code, no limits. Just describe what you want, and Vibe turns words into apps. You can build anything, like a competitor intel tracker that pulls in news and product launches and keeps your reports live in real time, or a presentation view that instantly creates a beautiful deck from your OKRs. Everything you build is deeply connected to your workflows and data. A mobile delivery scheduler app that books rides and maps routes, a recruiting portal, a financial dashboard, a project tracker, an org chart. Vibe can build anything. That's just the start. You can keep customizing it as you go. Add your brand colors and logos.
Yeah, like that. Nice. Rearrange views to match how your team works. This isn't a template. It's your app, uniquely built for you from your own words. All of this runs on monday.com's enterprise-grade platform, secure, scalable, and ready for the biggest businesses in the world, giving everyone, every team, every department, the power to build exactly what they need, from words to app, in seconds. Don't build it. Vibe it.
This is a huge urge of opportunity. For businesses to adopt VibeCoding for work, they need to be able to trust it. They need to know it's reliable, that it will work at scale with full governance and control, and all with the highest standards. In MondayVibe, we leverage the most powerful LLMs for software creation, like all other VibeCoding tools. To make it suitable for work, we built MondayVibe on top of MondayDB, our unique, flexible, scalable, and reliable data infrastructure. With MondayDB, every app you build on Vibe gets the full power of the monday.com platform. It's natively connected to your data, workflows, integrations, and ecosystem, making sure all of these apps don't create organizational silos. It has robust permissions, role management, governance capabilities, and most importantly, enterprise-grade security and compliance are already baked in. Taking the VibeCoding power and unleashing it for work.
MondayVibe is generally available since last week. Even prior to its official GA, we see a very high engagement with it, with over 17,000 apps already built on top of it. Here is just a small taste of what our users are building. What you see here is that once you give the power to people to build anything, it empowers them in a way like never before. Last but definitely not least, I want to introduce you to our newest AI product, Monday Agents, taking our vision of doing the work for you into the day-to-day reality of every organization. This new product, coming in H1 2026, will allow everyone to leverage the power of agents, all with simple and intuitive experience. No code needed, unlocking the huge potential of agents for everyone across the organization. Let's see how it looks like.
What if you could automatically get feedback from every customer? What if you could track every competitor's move in real time? What if you could contact every lead? What if this is actually possible right now? Introducing monday.com's Agent Builder, the power to create your own agents in minutes. Just start with a ready-made template or write a prompt in your own words. In seconds, your agent is ready. You can read everything you need to know about it in plain English: its directions, its skills, exactly what it'll do for you. Now, let's see what our brand new agent can do. First, our agent sets up an appointment for a customer. After the appointment, she calls the customer to collect feedback. Let's listen in.
Hi Dave, this is Kali calling from Daniel Lereya's Garage. Do you have a couple of minutes to share some quick feedback about your experience?
Sure, no problem.
Great, thank you. First, how was your overall experience during your visit?
Pretty good. Everything was explained really well, but I had to wait a bit longer than I expected.
Thanks for sharing that. Is there anything we could improve to make your next visit even better?
Maybe faster service or shorter wait times?
That's really helpful. Thank you for your feedback. As a token of appreciation, we'll be sending you a small gift card by email.
Okay, sounds good.
Thank you again for trusting Daniel Lereya's Garage. We look forward to seeing you again.
She writes and sends out a follow-up email. Pretty cool, right? Connect it to more tools and watch it take action everywhere you need. Need more agents? Build as many as you want. Every agent is a specialist, ready to work instantly at scale. Any business, any department, any use case, in minutes. This is the future of work, a limitless workforce working for you, built by you.
With this new free AI product, all by the way developed in the last few months, we're unlocking the future of work with AI to our customers. We're not stopping there. In the next few minutes, I'll walk you through each and every one of our core products and how it looks like in the world where AI is actually doing the work for you. Let's start with work management, our flagship product. The last deal was simply phenomenal for work management. We continue to invest in the scale and depth of our offering, and we managed to push the bar and create a very strong momentum with larger accounts. We were also the only work management platform recognized by Gartner as leaders in three different categories.
At the beginning of this year, we've released a set of capabilities aimed directly to our largest customers, managing projects from all types at scale. We saw a great adoption, fueling our upmarket momentum. Going forward, we'll continue to elaborate these cases, these capabilities, and also keep pushing the bar in terms of scale with MondayDB 3.0. That's not all. We're taking a bold step into the future of doing the work for you, introducing Monday Sidekick, a personal AI agent for every Monday user. It knows the full work context, the user role, its company, all past tasks and projects, which makes it best in doing the actual work for you. Let's see how it looks like.
You've got goals to hit, teams to coordinate, reports to pull, and five different tabs open just to answer one question. You know you need to start using AI.
AI.
AI.
AI.
AI.
AI. Just generate it.
AI.
AI.
Where do you even start? Relax. It's simple. You start with Monday Sidekick. Just click the star next to any item in monday.com. This is Monday Sidekick, your AI-powered digital worker, built right into the flow of your work. It's in context, and it will execute for you. Most AI tools, you have to upload files, explain who you are, re-explain every single time. Sidekick is different. From planning to execution, Sidekick already knows your boards. It understands your work, your workflows, and your goals, and gets to work right away. Your manager asks you to create a report for your company leadership? Sidekick can do that for you. Easy. Need to find 10 commercial properties in Chicago for your real estate agency? Sidekick researches and builds the shortlist. Done. Planning a campaign in a new region? Sidekick builds the plan, creates the content, and localizes it with nuance.
You get the idea. Whatever you need, Sidekick's got it. Every single action is explainable, visible, and adjustable. You approve what happens next, and you can even personalize it, choose how it responds, and shape it to work exactly the way you want. The more you use Sidekick, the more it learns, continuously improving to better fit your needs. This isn't just about using AI. It's about finally feeling like work is working for you. It's super simple to start. Just click the star.
Sidekick is already gaining momentum across a wide variety of use cases, roles, and departments. This is why it plays such an important part in how we see the future of work management. With that, it's important to state that Sidekick is going to be available across all of monday.com's products. Now, let's move to monday.com CRM. monday.com CRM is growing extremely fast, reaching $100 million in just three years. Its flexibility empowers our customers to adopt their specific way of working with an unparalleled time to value, solving such a big pain in the CRM market. Going forward, we want to continue our focus in SMBs while pushing for larger customers in the mid-market. I'm happy to announce that today we are launching a new product in the CRM suite, Monday Campaigns. This is an AI-powered product for marketing with a single aim of generating leads for you.
With Monday Campaigns, our offering becomes more holistic, answering the most requested needs of larger CRM customers. Together with Monday Campaigns, CRM is now a suite of products that empower the entire customer lifecycle. From lead generation in Monday Campaigns, doing the actual sale with Monday Sales CRM, all the way to post-sale delivery with work management. As you heard from Roy and Eran, the expectations from CRM software have fundamentally changed. From managing sales to actually doing the sale for you. To do that, we're introducing a new AI SDR agent as part of Monday Sales CRM. Let's see how it works.
You've got leads coming in, sales targets, and a funnel that never sleeps. There's simply no way your reps can call everyone, and consistency starts to slip. Enter the SDR agent, a fully capable SDR that picks up the phone the moment a lead comes in, making sure the right people always get the call and your hottest leads rise to the top. Setup takes two clicks. Define when calls trigger and upload a knowledge file with your company details and qualification criteria. Here's a new lead, Danielle from Next Retail. Her details appear instantly on the sales board in monday.com CRM. The SDR agent, Chris, calls right away, even outside your working hours. Every lead gets a call while it's still warm.
You're looking for a venue for 200 people in April, with networking as a top priority. Let's book you for Thursday at 2:00 P.M. with our Strategist.
That sounds great.
The call is transcribed, summarized, and the meeting is booked. When 10 more leads arrive, the SDR agent calls them all in parallel. Every customer gets a fast, seamless, and high-quality experience. Your sales rep walks into the next call with all the context they need and can finally focus on what they do best: selling. The SDR agent, always on, always setting you up for success.
Moving on to monday.com DevOps. With $40 million in ARR, we're seeing a healthy demand for monday.com DevOps with a good core sale trend. With AI, the world of software development is radically changing. Developers' role is shifting from writing code to actually building products with AI agents. This shift opens up a new kind of opportunity in the software as the connective tissue, the one place that holds all the contexts of software development. Every past task, every resolved issue, every piece of customer feedback suddenly becomes the perfect foundation for agents to build with. As agents take on more coding, developers must stay in control, orchestrating, planning, and tracking the agents' work. All of these, by the way, are monday.com DevOps' core strengths, are the ones that will become now a central part of the developer role. Moving on to monday.com IT Service Management.
Launched earlier this year, Service is already at $7 million of ARR, which makes it our fastest growing product. With enterprise service management, we land bigger from the get-go and manage to drive meaningful growth from core sale to our existing customer base. Our customers are using monday.com IT Service Management across different departments, whether it's finance, operations, HR, IT, and much, much more. To continue this great momentum, we want to extend the Service product fundamentals, allowing more flexibility from one hand while providing key features Service teams need. With that, our main focus is about the future of Service with AI. In the past, Service was manual, with teams monitoring queues, answering tickets, basically chasing around SLAs. Today, Service can be completely different as AI solves problems with efficiency, precision, and consistent high quality.
Looking ahead, we'll give every organization the ability to build and train their own AI service agents connected to the data, governed with enterprise-grade control, and improving continuously to deliver better outcomes over time. We're expanding monday.com's offering, and with AI, we're ready to capture the huge opportunity of doing the work for you. Before we conclude, I want to touch on the impact of AI internally. A few months ago, we did something really unusual. We stopped our entire R&D organization for a full month to fundamentally change how we work with AI. It was one of the strongest experiences I've had in my nine years at monday.com, seeing the whole team lean in, adapt, and embrace this new reality. What you've seen today are the direct results of that shift.
With AI, we accelerated our pace of innovation, elevated the service we deliver to our customers, and unlocked new levels of productivity across the entire tech organization. This doesn't end here. We're taking it as a commitment forward to keep pushing, keep adapting, and keep leading the way with AI. To sum up, we're moving from managing work to actually doing it. This is driven by AI embedded across all of our products. MondayDB and our platform give us a durable competitive edge in doing that. With our culture of speed and execution, I'm confident we'll capture the massive opportunity ahead and lead this transformation. Thank you very much.
Thank you, Daniel. Daniel is the busiest person, I think, at monday.com. What an amazing job that Daniel and his team have done. We're going to pivot directions a little bit now. We're going to go to go-to-market. What we want to really talk about is our customers. As you know, we have over 250,000 customers on monday.com, from the smallest of small startups to the largest of enterprise, where we go wall to wall. We wanted to just hear from some of these customers. Let's roll a video to highlight some of these customers.
We absolutely see monday.com as a strategic partner in our digital transformation. It almost feels like the sky's the limit with the platform.
monday.com has enabled us to work through 150 projects with 25% more efficiency, based on the way that we've streamlined our projects in the boards that we've created.
I think it's pretty awesome.
Having a central hub has been huge for us.
monday.com changed my efficiencies at work. I was able to now have a platform that I could spend my entire day on doing my role, and I didn't have to go anywhere else.
I haven't found another company that does everything that we do, and yet we're able to use monday.com to do it all.
It's created efficiency. It's created a central source of truth. It created a platform where I can build what I need.
It's really helped our execution strategy. It's enabled us to be able to really workflow our projects, identify where we may need additional resources, where there's overlap of projects. It means we don't have to use spreadsheets anymore, which is fabulous.
The feature that I feel has made the biggest impact on us would be the email tracking in monday.com CRM.
The AI tool is very intuitive. It's a lot like interacting with one of your peers in the workplace.
Dashboards plus automations is life-changing. It has been so influential to our business, and it feels as though it's provided something to us that we've needed for a long time, but we didn't know how to solve for.
What did we do before monday.com?
These are just really some great examples of companies that are using us for CRM, for work management. They're adopting some of our AI tools. This is just the beginning. There are so many more opportunities with these customers, and we go much more deeper. Let's bring out our Chief Revenue Officer, who's going to be tackling a lot of this and going deeper with our customers, Casey George.
Good morning. It's great to be here and good to see some familiar faces in the room. Listen, I can take you through my bio, my background. You can read it. I've been doing this for what is now 29 years. It's hard to believe. My journey with monday.com started well before my start date. I was a user and a fan previously. We had a tense situation with some support issues at a previous company, and we launched a Get to Green program, as I called it. It was a sophisticated, really sophisticated project management application that we built on monday.com. My exposure to monday.com started well before my start date. When I got the call, I couldn't get to the phone fast enough, to be honest with you. I was like, this is an amazing opportunity, tons of innovation in a CRO's dream.
I share that with you because I like to say I've seen good, I've seen bad, and I've unfortunately seen ugly. At monday.com, I think I can objectively say it's great. It really is. Why is that? I'm going off script a little bit here, so sorry, Byron. Since I had to follow Daniel, by the way, which I got the short straw being the new guy. Speaking of, why is monday.com so great? I like to say they do the hard stuff really well, right? It all starts with product. As a CRO, and if you talk to any CRO, they'll tell you the same thing. The first thing they ask is, do your customers like to use the product? If they like to use the product, and it's a good product, it's well supported, it's innovative, and you continue to innovate, a CRO will say it's a dream.
You'll never find a CRO leaving a company that checks all those boxes. I can tell you right now. When you talk to other CROs, hone in on that. That will tell you a lot about the company. From where I sit, again, doing the hard stuff really well, performance marketing, unbelievable. I've never seen anything like it, right? I think I could say that. I literally have never seen anything like it. The amount of innovation, I ask a question. I come on, I look at their tool suite, I look at the things we got to do, and I say, I really need this. The immediate response at every company previous to this and others that I speak to is, okay, we need to go get that. It's a different answer at monday.com, right? I think this amplifies what I'm trying to say.
The immediate response is, we'll go build that for you, right? Oh, okay. That's pretty great. From where I sit, from where I came from, in my short tenure here thus far at monday.com, we're in a great place. I think the things that I have to do that I will share with you today are the easy part. Let me ground you in a few things, and then we'll jump into what I think are three or four of the pillars that are going to drive or accelerate the success we have going forward. 250,000+ customers. I was at our customer advisory board yesterday, which, by the way, fantastic feedback we get from customers. I'll tell you a couple of stories about that because I think it tells you a lot. One of the customers said, that's 250,000 users, right? It's like, no, no, no, no. It's 250,000 customers.
To see the look on their face go, oh, I get it now. Everyone sees what I see. You'll find a lot of customers who will say, I'm not going to share with you how we're using monday.com because it's a competitive advantage. I get that a lot. 1,000 employees, and this is important. These two metrics or data points are very important, and we'll come back to it, and then they'll play through the rest of the presentation. Circle those 250,000 customers and 1,000 employees. Some of the logos we've acquired, and this is a very small sample, very small sample. I'm blown away. We keep hearing, when are you moving upmarket? Listen, the market's come to us, right? These are major logos that consume our software and get tons of value from monday.com every day. This list is growing by the minute. It shows up here.
What everyone needs to see from this is this is a very healthy growth trajectory. I don't need to tell you that, but you can see it. This is durable revenue, right? Very impressive. My job is to keep it going, obviously, and I feel like we've got the foundation to do that. I'll come back to this in a second as well. As we move forward and we understand what the opportunity is, and opportunity is a key word, with only 9.4% of our revenue coming from other products, and the rest of the revenue coming from our flagship product, therein lies a significant opportunity. Here's why. We know with only 6% penetration, the 6% penetration is the amount of customers we have that are consuming more than one product, okay? We know that you get 2.5 times ACB uplift when you consume more than one product.
From where I sit, oh, this is a no-brainer. All we have to do is go back to those 250,000 customers and expose them to everything that monday.com is doing. I will tell you, even in the Customer Advisory Board, it was our first one for this year. Some new members were on there, and a lot of them said, and I hear this a lot, I didn't know you did that, right? I didn't know you had CRM. Yeah, it just happens to be a $100 million business for us. I didn't know you did service. Wow. They see all the things coming, and they're just as impressed as I am. I share that with you so that you understand the opportunity for us to move upmarket and for the opportunity for us to cross-sell.
If you understand that, you know, 3,700 accounts have $50,000 or greater, and then almost 1,500 are $100,000, there's a sequence to these $500,000 ACB customers. The sequence is you start at $50,000, you go to $100,000, and then $300,000, $500,000, etc. What does that mean? We only have 68 accounts. I say only. We're very proud of this. You've seen it in every slide up to this point. We're very proud of the 68. The opportunity to grow that number is exponential. Team, could we go back to the previous slide? Here's why. Look at the $50,000 ACB customers. Look at the $100,000. Every one of those 68 came from this set, right? Our opportunity to exponentially grow this number is pretty significant, okay? All right. Speaking of that, let me give you an example, right? There's a major bank that we work with.
As a matter of fact, I was speaking to him yesterday. Before I take you through this, I'll tell you this little story because I think it's fascinating. He came up to me and said, "Hey, Case, you know, I might lose ownership of monday.com." He goes, "I want to introduce you to some other folks who are going to champion the product going forward." I said, "Oh, you know, why is that?" I was a little upset because he loves us. We love him, right?
He says, "My boss came to me and said, 'What is monday.com?'" He says, "Well, it does a lot of things." He says, "Is it app development?" He goes, "Yeah, kind of." He says, "Is it an application?" "Yeah, yeah, it's an application." "Does it do service?" "Yeah, it does service." He said, "My boss was getting aggravated because he wanted me to box you into something that you're not." We're a lot of things to a lot of different people. The use cases are infinity, right? We see that as we move upmarket, enterprise customers want to box you into something. That, to me, amplifies the fact that we really don't have a true competitor. We can do so many things, and we mean so much to certain people, different things to different people. I think this really plays out in a customer that I'm referencing here.
Here's a customer that started with 15 seats online, by the way, major bank, goes online, uses software. This is 2021, late 2021. They start to use the product, and it just grows like fungus, as I like to say. More consumption, more use cases inside that one department. Another department recognizes what they're doing, sees and says, "That's pretty cool. I have an idea of what we can do to fill a void in our organization so that we could work smarter." Another department takes it on. Now we're two years later at 1,800 seats, right? This is when it starts. 2024, 5,000 seats, right? 2025, almost 10,000 seats. The story continues. This is one example of the, let's say, 68, but they all look very similar. Rarely do we ever land a $1 million ACB account on the first swing. It goes back to those previous slides.
It's the third and fourth swing because they start with $50, they go to $100, $300, to $1 million. For me, from where I sit, this is a significant opportunity that I'm super excited about. I would be remiss if I didn't highlight our partner ecosystem. I've seen good, bad, ugly, right? Partners play a big role in that, right? Partners are a good indication of whether or not a company can sustain growth. Why is that? Because typically partners literally build their business around a product or service, whatever. They're invested. When you talk to a monday.com partner, and I would welcome any of you to catch one on the floor, they will go out of their way telling you how much they love monday.com. We've had partners who have started with competitive products and dropped them. They said it just can't compete.
It provides so much value to my clients. I can specialize in a particular industry, sub-industry, niche, whatever, using monday.com and really be a differentiator in the market where no one else can do what I do. The fact that we have such a strong ecosystem, which is surely impressive, and it was before I started, I can't take any credit. We continue to have partners knock on our door and say, can I be a monday.com partner? It's truly a special place. This is a good example of it. Let's move on to how we keep the drumbeat going, right? We do a lot of the hard stuff really well. I think what I'm going to do is the easy stuff, right? All right. Three pillars that we're going to focus on, right? There's a lot going on. We're doing a lot of things.
I won't oversimplify this or try not to because it's not that easy, but there's some infrastructure that we need to put in place in order for us to capture what I think is such a significant opportunity. Multi-product. Now, mind you, AI is foundational to all of this, right? When I say multi-product, we lead with AI. When I say accelerate up market, we lead with AI. When I say customer retention, and I'll get to that, and I hate that word. You know, AI is at the forefront of that. With multi-product, and we'll get into a little bit more specifics here, this is our opportunity to sell the full platform. We have a robust platform. I like to say, and this, you know, there's always been a debate in the market, especially with sales leaders. Do I sell the platform? Do I have individual sellers?
You know, we'll get into that in a second. I think Larry Ellison said, the moment a customer has one buyer is the moment I'll give you one rep. I kind of think of it this way. The last thing a customer wants is another vendor and another platform. If you can provide a seamless platform that enables them to do work in an integrated fashion, you've got a very strategic advantage in the marketplace. I think we do. Our multi-product growth is a huge opportunity for us. We're going to accelerate that. I'll take you through how we're going to do that. Accelerate up market. This one's important. If I was to ask most of you, ask you the question, hey, where does monday.com need to go up market?
Your immediate reaction in most cases would be, well, they need to go sell to the Fortune 100 customers because those are the biggest wallets, right? Yeah, they're the biggest wallets. Here's what I will tell you. You get one shot. You get one shot with enterprise. You show up. You better have the right solution, the right price, the right products, all the things that they expect. If you don't, it's really hard to go back. That's one thing. The other part is because we dominate SMB, we don't want to leapfrog over mid-market. This is where our portfolio resonates pervasively across that segment. We're going to double down as we move upmarket, aggressively going into cross-selling in SMB and mid-market, and let the market come to us in enterprise because that's what it's doing today. There's this gravitational pull.
As I go back to when I first started, I saw that. This isn't a degrading comment, but we really haven't even tried to move upmarket. The market has really come to us. That's a powerful statement from where I sit. I think I have an objective opinion. Customer retention—we'll get into this a little bit. I hate this word. Retention sounds defensive. It's not like we have a retention problem, but we just don't have a better word to describe this. I think of this as customer experience. I think every part of our organization has a role to play when it comes to customer experience. For my team, it's about providing value, which obviously makes clients stickier. It's about providing additional products. It's about helping them with AI, realizing the value that can come from AI. It's about how we engage with them, right?
Showing up how they want us to show up. That's our role in customer retention. I'll get into a little bit of specifics there on how we action that. With multi-product, we're making a significant investment in headcount. You say, okay, what does that really mean? If you understand that when you show up in front of a customer, especially selling them a multitude of products, potentially, there's an expectation that you go deep and wide in that particular product. I'll use the example of monday.com CRM. We have account managers and account execs. They own the relationship. They foster the account. They help grow the account, land new opportunities. It's unrealistic to expect for that AM or AE to go deep and wide in CRM. Very rarely does anyone have the capacity. I can't go deep and wide across all of our products. What do you do?
You give them enablement, of course, and you hope to raise their skill level. In order for you to scale, you surround them with the right infrastructure. That infrastructure is sales specialists, overlays, who get up every day and think about, I'm going to sell CRM in a competitive landscape, right? I'm going to have the right offering, the depth and breadth, answer the questions the client has, and present monday.com CRM in the best form. Again, an AM and AE can rarely go across all these and do that. What we need to do is surround them with the infrastructure. Part of the infrastructure is sales specialists or overlays, as we call them. A huge investment there. Part of that investment is obviously SEs, our solutions engineers. That will obviously augment the team as well. I go back to our partners, right?
Huge ecosystem, 10,000 sellers across that ecosystem help us scale, especially in emerging markets. Those two or three things will really help us accelerate the opportunity. Here's the other thing I would tell you. We are not doing a great job of getting to all the opportunity, which is another example of how great a product we have because we have all this inbound activity and we're not showing up, I believe, in the best way we can. We're going to do that. As you think about offerings and you think about segmentation, and I've talked about SMB to mid-market to enterprise, I believe it all starts with the offering, right? What offering are you going, what message are you going to these particular segments because they're different, right?
You're not going to show up to enterprise and say, I've got a full platform for you to run your entire enterprise across CRM, service, work management, etc. You're not going to do that. That story holds together in SMB. If you, again, if I remind you, with only 6% penetration of customers with multi-product, the opportunity is infinity, right? We're going to double down on creating the right offerings, the right packages, the right pricing, the right incentives for our sellers to sell the full platform across SMB. When you get to mid-market, some of that resonates, especially the lower half. I mean, it looks and feels a lot like SMB, and you can have the same offering. As you move up market, it's a little bit different story. It's a connected customer journey. It may be work management feeds directly into a service opportunity, right?
It may be CRM and work management. We're seeing that. When you have 250,000 customers, I like to tell the sales reps this all the time so they understand, truly appreciate and understand, because I don't, a lot of times I think they're somewhat spoiled, to be candid with you, is you have a red carpet into these accounts. These are 250 super fans of monday.com that you can walk in that are thirsty for more Monday. Why not give them what they're asking for? That's a big part of our evolution here. In the enterprise space, again, we're not going to sell the full platform in its entirety. What we have found out, and truly surprising to me, to be honest with you, is we coexist in a lot of cases with some of our other products. Obviously, work management excels all the way at market.
We're doing great things there, and we're seeing hypergrowth associated with work management. The part that surprised me is us coexisting with some of the big software providers in the industry. I won't name them. You know who they are. We have an opportunity now. We're probably closed here this week, and I won't share too many details, but I'm highly engaged in the opportunity more for my education, but I'll share it with you. We have a department, say a marketing department, who's looking to use service. It's a multi-hundred thousand dollar opportunity. I asked the question, right, why aren't you going to use that other company that's embedded in their IT organization that, by the way, IT wants you to use? They said, Casey, I don't need a science project. It'll take us a year to get that developed, deployed, integrated, enabled.
With monday.com, I literally could do it overnight. I can configure this on my own. It gives us immediate value. It might not have all the complicated complexity that comes with that product, but it does exactly what we need. It gives us value immediately. For me, it was a little bit of an eye-opener. I thought, gosh, if it resonates at this company, which is a Fortune 100 company, just think where else it could resonate. I think there's a huge opportunity for us to coexist in a lot of cases. I do believe it ended up like work management, where it just starts to spread, and before you know it, there are million-dollar ACV opportunities. Moving up market, really simple. We have an embarrassment of riches at monday.com and have been. Awesome performance marketing engine generates a ton of inbound leads, right?
What we haven't done, we haven't even really tried, is develop that outbound motion or that outbound muscle, showing up where customers want you to show up with what they want, right? I say that, you know, my background, I was, I got a lot of stories here, but my first week on the job, I had this rep come in and he's like, you know, Casey, I came from this other company and I literally used to, you know, open the phone book and call people. I, you know, dial in for dollars. He says, when I get a lead here, I cherish it. It's like, this is the greatest thing ever. Literally, he wakes up with five leads every day. He truly appreciates how much effort that we put into generating opportunities for them. He cherishes and treats every one of those leads in a great way, right?
This is important, and we're going to get to this in a second. That's not necessarily the case in every instance. We see an opportunity for us to do better receiving those leads, but even a greater opportunity to go outbound, to go walk on that red carpet into those clients and say, I've got more value for you, right? Let me show you, right? A great opportunity for us to go where customers want us to go. What do they want, right? They want a complete solution, right? Especially as you move up market, but really, they want a complete solution. They want to go solve a business problem. Sometimes one application does not necessarily solve that business problem. Sometimes it even may need services. Every time they're going to need AI as far as we're concerned.
We're going to lead with AI, giving them a solution that solves their business challenge, and we're going to support it in the right way. To the nasty word of retention, again, suggest defensive. We are not defensive. We're on the offense, right? My role as a CRO is, again, to make sure that we show up in the right way in front of our customers, deliver value, give them more things to consume. The return on that, as we all know, is a very sticky customer, right? If you have those boxes checked with a customer, they're never leaving, right? For the most part. We're super focused on this, right? What does this mean? One simple thing is the comp plan, right? We kicked off a new comp plan, a more variable comp plan, so more incentive, more opportunity to make money for our sellers.
We've aligned them with the strategy. In my organization, the strategy is I want to have an eye on retention, right? Customer experience, but I want to grow. We're allocating 25% of their variable comp to retention, right? We don't want to over-rotate 75% to new growth, right? It's a good balance. We've experienced doing this. This drives the right behavior. Now, the mirror of that in the supporting infrastructure, so to speak, that we have is the CSM organization. Our CSM organization will have the mirror of that: 75% retention, 25% new ad. That builds a symbiotic relationship between us and our CCO organization led by Adeedar. Just by changing the comp plan, we're going to change behavior, right? There are a lot of things that go into that.
We have to empower the sellers to have visibility of this data and, you know, all the things that go with that. It's not as easy as it sounds, but it was a step in the right direction because, again, compensation drives behavior, or at least it should. Ownership of the account. This was a little bit of a murky territory for us because we had so much, so many people that were interested in helping the client at monday.com. It's just that it's a great culture. I literally could walk into the finance department and say, "Hey, I need to help with someone calling a customer about something that was completely out of the remit." You'd get 50 hands from the finance team saying, "I'll jump in and do it," right? Oh, okay. That's great.
This is the culture we built, but it also adds some distraction because you have so many people reaching into the client and the client doesn't necessarily know who's responsible for what. We've clearly articulated the account manager owns the account, CSM supports all the things that a CSM should do, deep depth in a particular product, helping that client get more value, more exposure to the rest of the organization. They work in a very symbiotic way, right? What does this do? It minimizes some of the stakeholders. We distribute KPIs down to the lowest level of the organization. We show them what good looks like, right? We hold them to that. Okay. What empowers all of this, right? AI, right? What we have built with our AI engine, you know, I like to say, you know, we eat our own caviar around here.
This is definitely an instance of that. When you have 250,000 customers and you want to deliver a great experience, you cannot do that entirely with humans, right? We know today that when we touch customers, we'll call them high touch, the churn rate is almost nothing, right? If we could get that same experience at scale across the 250,000 plus customers, just think of how happy our customer set would be. We are doing that, and we're leveraging AI to do this. I'll share with you in a moment how our organization is using it. You heard from Daniel and all the stuff we can go to market with, but we use that internally. We're already seeing amazing results. Here's an example of what a seller does, right?
They take a lead, they qualify the opportunity, they engage other resources to help facilitate that opportunity. There are quotes that get generated, there's all the data that goes into CRM and, you know, the summary of the opportunity, scheduling, all those things. That's, in some instances, days of work. We know the more customers we can get to in a very quality way, the better our conversion is going to be. What we launched a couple of months ago, and I'm happy to report this, candidly, one of the greatest opportunities we have as a company to scale is we launched an AI agent to go sell to these customers, to qualify these opportunities, to bring in the right resources, surmise the opportunity, get it into our CRM, and get everything scheduled. They did this in a matter of minutes.
We had 1,000 calls, we booked 250 meetings, and generated 180 leads. I'm going to give you a data point. It's not on these charts. I'll probably get in trouble for telling you this. We have hundreds of thousands of leads come in every year. I wish it was every day. Now I do. I wouldn't have two months ago. If you think about that, I would need 10,000 people to support that volume, and that's just not efficient. My objective is to give a quality experience to every lead. Whether we think it's a quality lead or not, we want to give the same experience to every one of those leads. I'll tell you, I have a ton of experience engaging with vendors. I do this on purpose as much as I can because I want to see what the experience is like.
I can either learn from some great practices or I can understand what I need to avoid. I reached out to a vendor when I first started. I needed some help with something. I reached out to that vendor, and they were named nameless. The moment I gave them all my information, when I'm available, my kids' names, my Social Security number, my phone number, I gave them everything because I wanted them to call. I wanted them to know I really wanted to talk to them about this opportunity. To this day, I haven't gotten a call back. Super aggravated. I will never engage with that vendor again. I know what happened, but I also know what I want to avoid. The number one indicator of your ability to convert a lead to a sale is your response time.
If I can respond to every one of those opportunities that come into us, in a very high-quality way, in a very responsive way, with SLAs, with a quality message, a consistent experience, my opportunity to convert goes through the roof. AI is going to give us that capability. We've launched our agents to do just that because now I have unlimited capacity. You heard Daniel talk about this. Literally, any hour of the day, as many calls as you want in parallel, delivering an expert response to their questions and engaging in and building out an opportunity profile in seconds, delivered to the rep in a very warm way where they can engage with the customer and a customer that feels like monday.com cares. They care because they called me back in two minutes. They had all the answers and they scheduled everything just as I wanted it.
For me, this is obviously a significant opportunity that we're going to leverage going forward. As we sum up, as I'm out of time, sorry, as we summarize here, I did go out. I feel like Garth Brooks with this mic. I won't sing. Significant opportunity to move upmarket. Mid-market, obviously, we're not going to skip over. Multi-product, we already know the opportunity for us to grow ACV with customers with multi-product is significant. We're going to double down on this. We're going to show up with the right offerings that our clients want into the C-suite with solutions that solve their business challenges. Last and far from least, we're an AI-first company. We lead with AI in everything we talk about, in everything we do. I tell the team, we are literally the best reference you could have.
You look at our growth trajectory and how we embrace technology and how we leverage that to grow the company. We are the envy of most companies. If you can go to them and say, "Listen, we use all of our software times 10. Let me show you all the ways we use it, right? We embrace AI, and we've done it ourselves. It's a great story. Everyone would love to be a part of that. I feel very fortunate to be here today. Great to see everyone. I look forward to questions here in a bit. Thank you.
Great. Thank you, Casey. We've heard about a new AI-enabled vision from Roy and Eran. We've heard about all the product developments that we're doing with Daniel's team. We've heard about how our go-to-market strategy is evolving and pushing more into the upmarket and multi-product. Now let's land the plane with our CFO, Eliran Glazer, and pull this all together and give a most recent update on our financial strategy. Eliran.
Hi, everyone. First of all, it's great to see you all. I'm very excited to be here. I also see some familiar faces. By the way, Casey took eight minutes longer, so I have to be short. I will try to be concise. Roy and I spoke about vision. Daniel spoke about innovation. You know, innovation is the core of everything that we are doing. Casey spoke about GTM. I'm going to share with you how it all ties together. Over the next 20 minutes or so, I'm going to speak about monday.com financials, the growth drivers that we have in the business, capital allocation. You saw the announcement this morning, as well as what it means to us in number in fiscal year 2027, as I'm sure you have to update your models. Let's start.
I joined monday.com just before the IPO, and we went public four and a half years ago. Even before we went public, monday.com was always best in class across three parameters that mattered most: growth, profitability, and cash generation. It's not by coincidence. This is the way we always built the business. Driving growth, efficient growth at all costs, not relevant for us. We're driving efficient growth at scale. We already shared some of the numbers, but we have achieved 50% CAGR between fiscal year 2020 to fiscal year 2025 projected, going from only $161 million in fiscal year 2020 to more than $1.2 billion in revenue in fiscal year 2025 projected. Again, this is not a coincidence. It's not pure luck. It's the strategy of monday.com. This is the playbook that we operate in accordance with.
It's not only driving durable revenue growth, but doing it at scale and with efficiency. Growth is only half of the story. Since fiscal year 2020, going into 2025, we actually improved operating leverage significantly, driving margin expansion with 6,600 basis points. In other words, going from a loss of $86 million in fiscal year 2020 into a projected net income of $156 million in fiscal year 2025. This is also driven by automation, a disciplined cost management. We care a lot about operating margin and efficiencies that we have achieved in sales and marketing. The balance sheet of monday.com is a major asset. At the end of Q2, we have more than $1.6 billion in cash, and we are going to generate $326 million projected in adjusted free cash flow at the end of fiscal year 2025.
This has provided us with a lot of flexibility in terms of reinvesting in the business, considering M&A when appropriate. We really would like to do M&As potentially in the future and capital return to shareholders. I want to say something that Roy and Eran mentioned. They spoke about Rule of 60, you know, Rule of 40, Rule of 60. People don't always understand or appreciate how important it is to be a Rule of 60 company in the last trailing 12 months. Just as a reminder for those of you who don't know, Rule of 60 is the growth rate of the company plus the percentage of free cash flow from total revenue. Getting into 60%, I think there are only three or four companies in the last five years that have achieved this number when we went public together with us.
This is something that is very, very important to us to continue to drive performance at scale. Casey just covered all of the journey upmarket. If you think about monday.com, when we started back in, you know, in the days of 2018, we were just a performance marketing company. 80% of our leads, 80% of our ARR came from performance marketing. Throughout the years, we built the sales organization. We built the partners organization. We added a lot of capabilities. We actually went upmarket. We are not neglecting the SMBs in the mid-market because we believe all segments are important for monday.com. We're not just running upmarket. We're actually investing in all segments. Now going from only 5% of customers above $50,000 from total share of ARR now to 40%, and we'll continue to do it.
Also, the durability of the contracts, monthly versus annually, we now have more annual contracts, almost 85% or 83% of customers that are annual subscribers. This is important for us because it provides predictability. It shows the strength of the platform, retention, and obviously better visibility going into the future. One thing that is very important for us in monday.com is to make sure the customers stay with us for a long period. Meaning, if you think about land and expand, so customers landed with monday.com back in the days, and they expand with us, growing their ARR and growing our ARR. We have customers from early adopters into recent customers that are basically growing with us, quarter over quarter. You can see these cohorts are going back to 2016. It means that the platform is sticky. It means that we offer them a lot of value.
It means that we offer them a lot of new products, cross-sell, upsell motion. This is something that we'll continue to see. The cohorts continue to expand as we continue to grow the business. That is why we have stable NDR. Our NDR for all customers is now around 111%, and this is stable. For customers above $50,000, it's actually above 115%, and this is something that is very consistent over time. Why is it important? This is a growth driver into the future. We believe we have a lot of room for an upside with NDR, which means that in the next few years, we think that potentially NDR for all customers may be 110% - 115%. NDR for customers above $50,000, or the enterprise customers, as we call them, will be in the range of 115% - 120%.
You heard a lot of things that we are doing today. I'm going to relate to that in a minute. Not only is NDR important for us, we are also focusing on growth retention. In meetings I have with many of you, you're asking us, what is your growth retention? We are operating in three segments: SMBs, mid-market, and enterprise, and 250,000 customers. It's hard sometimes to have the average because it may be confusing. When you think about the improvement that we have done over time, 800 basis points in growth retention provide us with the confidence that we will continue to drive further revenue growth, which means that the customers find, again, value in the platform. They engage, they adopt. This is something that will continue to improve over time, we believe, in monday.com, as we continue to introduce new things into the market.
This is a metric that we didn't share in the past, but I do want to share it with you. This is remaining performance obligation. Why is it important for us? It means that there is predictability and visibility into the numbers of monday.com. It provides us confidence in our ability to continue to grow the business as we see this number scaling to $768 million in Q2 of 2025. This is probably one of the slides, maybe the slide that you've all been waiting for. This is our number for fiscal year 2027. We believe, and we are confident that we are going to achieve $1.8 billion in fiscal year 2027. Why are we confident in that?
Everything that you heard until now, from the multi-product that we have, the platform that we continue to invest with MondayDB, the fact that we are leveraging AI and capabilities layered into our platform, the fact that we are enhancing the enterprise customers' capabilities, which means bigger and larger customers will continue to buy Monday. This all gives us the confidence that we will continue to grow the business, driving durable revenue growth at scale, going into $1.8 billion in fiscal year 2027. Now let's speak about, okay, it's not only about the top line, but also of the investment philosophy that we have in Monday. We want to make sure that we are not only driving top line, although it's the number one priority for us. We also want to make sure that we improve operating margin.
In order to do so, we already spoke about the fact that we are going to slow down hiring. Hiring was 30% in this year. It's going to go to 20% additional hiring in fiscal year 2026. We continue to invest in platform and AI. This is something that is very important for us. The presentation of Daniel and Roy and Eran spoke about it, and even Casey, this is a growth driver. Innovation is in the core of everything we are doing, and we will continue to invest in innovation. We continue to invest in our product suite. We have currently four product lines, and we have a lot of use cases in between the product lines. There is a wide space, thousands of use cases, 200 industries across 200 territories. We'll continue to invest in the product line, definitely. We're going to expand our GTM ecosystem.
As Casey said, we're going to continue going upmarket and driving revenue growth with larger and bigger customers, which means in terms of P&L, bottom line, what is the result of that? The result is gross profit. We are at high 90s. We have been at high 90s since IPO four and a half years ago. We believe that your computing needs with regards to AI might take some of the gross margin percentage. We might be at mid 80s. This is something that we want to make sure that we invest and we capture the opportunity ahead of us. Sales and marketing, we're going to get to 40% of revenue. We continue to lower the percentage of revenue. Roy and Eran spoke about the percentage of performance marketing from total S&M going down. It's going to be around 40%. R&D, we'll continue to invest.
This is a major growth driver. You have seen the pace of innovation. Daniel spoke about it. The pace of innovation in monday.com is unprecedented. I do not think any one of our peers is investing the way we invest in AI, in product, and such a rapid pace of innovation. This is something we are proud of. It is part of the culture. 20% by and large of total revenue, this is something that feels the right number. If we need to invest, we will continue to invest. G&A, obviously efficiencies. We are a lean company in terms of G&A. It is important for us to be efficient. This is something that is not going to change from what you have seen in the past. The result, we are going to grow the business, but we are going to expand margin as well.
This is something that you should expect, that margin is going to be expanded going into the next few years. In the long term, which we call five years from now, potentially, we are going to get into operating margin of 20% to 25%. We are going to get to free cash flow, adjusted free cash flow of around 30%. We are already doing a very efficient free cash flow generation. The generation of cash at monday.com is very healthy, but we will continue to improve even further. Two years ago, in December 2023, we said in the Investor Day that we are going to achieve $1 billion in cash between 2023 - 2026. I am happy to say that we actually exceeded this number. We are going to generate more than $1 billion in cash between 2023 - 2026.
This is, again, a testimony of the strength of the business, of our ability to be very efficient. This is something that, again, we will continue to drive as we continue to scale the business, which you all heard today, this morning, we announced, very happy to announce our first ever share repurchase program to the amount of up to $870 million. We are going probably to relate to this in the Q&A if you have questions about this. In terms of capital allocation, what we are going to do is to continue to reinvest in the business. I believe, and I would be very direct on this, we are one of the best tech companies in the world. We are sitting on a huge opportunity.
With everything that we have built, with everything that we are doing, with the level of innovation, if we do not capture this opportunity, then it is a mistake. We are going all in, all in, all AI. Roy and Eran said it. We are going to continue to invest. We're going to capture market share, and we are going to continue to invest in the business. We don't want to lose opportunity. We don't want to miss opportunity, and we want to make sure we capture it. We're going to invest, continue doing it in an efficient way, the way we always do it, the playbook of monday.com, but we are going to do it. M&A, obviously, as we continue to grow and scale the business, we are now a big company. Not everything is organic growth. There are opportunities out there.
We are already actively looking for companies that can complete our product offering. This is something that actively we are operating in accordance with our internal guidelines, potentially to have an M&A opportunity. Also very important, share repurchase, not only returning capital to shareholders, but also managing dilution. Again, we are very mindful to the fact that we want to manage dilution at monday.com the way we have done in the past. We're able to be very efficient, and we want to continue to do it. You can read the key takeaways, and it's the things that I think everybody spoke about. We have a strong track record. We tend to deliver on our promises, and we are all in on leveraging AI and investment in the platform. I want to say something that is not written here. I want to say why we are winning.
Not only that we have the best platform, we have. Not only that we are investing in products, we do. Not only that we have a strong performance, we will win because we have the best people in the industry. This is something that is super important for us in monday.com, the culture and the people. Because we have the best people in the industry, we are going to continue to be one of the best companies out there, and we'll continue to win and drive further growth into the business. Thank you very much.
All right. Thank you, Eliran. We're going to do a little bit of a transition here to prepare for Q&A. In the meantime, just a couple of announcements here. We have a lot of our users trying to filter in. The demo booths are now open. We have all the AI offering demo booths that are available behind us. There's also all of our multi-product demos that are also in here, and many of our partners also have demo booths as well. Lunch will be served outside in the food court once we're wrapped up here at 11:55 A.M. Elevate on the main stage of the building across from here will start at 1:00 P.M. for those of you who are going to join us for that. For those of you who are online, we're going to open up for Q&A.
If you do have a question, feel free to email us at ir@monday.com, and we'll try to include your question as part of the Q&A session. For those of you who are also online, we have a world tour of Elevate that will be hitting London and Sydney. The London dates are October 22, 23. Sydney will be on November 6. We'll do a full online session for Elevate on December 10. Before everyone gets seated, I do want to just say thank you to everybody who pulls this stuff together. It is an army that pulls it together. The amazing Paige Newman, who helps out from the IR standpoint, Yael and her design team, who are absolutely amazing and do such a fantastic job on all the slides.
We have legal, we have many finance members, we have data scientists, the events team, product and marketing, and probably somebody else I'm forgetting, but it is an army that puts this together. I think they did an amazing job. Thank you all for putting that together. Let's now open it up for Q&A. As I said, we're going to go to 11:55. We've got two mic runners, so feel free to raise your hands and they'll go to you, and let's dive right in.
Thank you. Jackson Ader at KeyBanc Capital Markets. Thanks for doing this, everybody. Eliran, can we start with the $1.8 billion target for 2027? Should we be thinking about that as midpoint, floor, high end?
Yeah. You should think about that as a base case. This is what we believe we can achieve. We have a lot of investment that we are doing, as you have seen with Daniel's presentation, what Roy and Eran have described. It is going to take a bit of time for AI monetization to come into play. This is not taking into account the fact that AI is going to generate significant ARR in terms of the next few years because monetization will only start next year. You should think about it as a base case and something that we would like to drive and achieve over time.
Yeah. Jackson, maybe I'll just add with Eliran there, like we look at it as a baseline. You know, from a monetization standpoint, from where monetizing AI blocks, we're not yet introducing the monetization for many of the other AI offerings. We think there's potential upside with that. Next question.
Hello. Thank you. Arjun Bhatia with William Blair here. Maybe if we can stick on just the AI theme, obviously, that seemed like a pretty important part of the next few years. I'm curious how you think AI agents will end up interacting with a lot of the other AI capabilities that you have. Over time, do AI agents actually become the primary consumption mechanism where some of the other capabilities maybe become, I'll say, less utilized? Sorry, the second part of that question is just monetization of agents themselves. Is that a similar kind of consumption-based mechanism as the other AI capabilities? Thank you.
Daniel, do you want to start maybe?
Yeah. First of all, I do think that this is a very important shift for us from doing the management of the work and actually doing it. For this, agents play a very significant part because we really believe that with agents and with making them accessible to people and allowing the common builder barrier to be extremely low, we'll see agents taking a lot of work and doing it by themselves. At the end of the day, you need to control these agents. You need to manage the work. You need to make sure that your data is something that you can actually trust and make sure that you have control over. I do feel that the combination of what we are showing here is what we see as something that businesses, regardless of whether they are tech or non-tech, would be able to adopt in the upcoming years.
This is where we put our emphasis on adoption and solving real problems in the day-to-day. I think that across the entire offering, we're trying to see how everything actually connects and how we take everything that we have and make it a multiplier to this world in which agents are actually doing meaningful work for customers.
Yeah. I can add that the way we see the go-to-market for these or like what customer wants is twofold. One, we're building an infrastructure of agents that you can use and build any agent you want. We're also using that internally to build other very specific agents that we can monetize, like very professional, deep agents. We're also looking into a new demand out there for a platform such as agents, whether it's vertical or as a platform that you can generate whatever agent you want. We'll both go into our existing customer base and into our existing products, but also outward-facing into the new demand that is out there for just agents separately.
Next question.
Hi, Josh Baer with Morgan Stanley. I wanted to get a better sense of where Monday Magic ends and MondayVibe begins, as well as where does MondayVibe end and where does multi-product begin? Just, you know, what kind of outcomes do customers get when they use these AI tools? What's the overlap ultimately with multi-product and customers? If you code a comprehensive and customizable CRM or service app, how do those all overlap?
Yeah. Actually, those things go hand in hand. Going forward, Monday Magic will also be able to leverage MondayVibe. For example, if you build a custom solution for yourself, you give a prompt to Monday Magic, and you're going to give it feedback, it can actually leverage MondayVibe. If it's missing any component in order to build your solution, you can do that and use MondayVibe. Eventually, all those AI components will be compounded, so each one can use one another. It also goes to Monday Sidekick. We see a future where, you know, Monday Magic can potentially change how we onboard customers. The whole onboarding process is going to be fundamentally different. No longer will you land into an empty system where you have to customize it.
You will start with explaining your business need, like you would do to a salesperson, and then it will do the rest of the work for you, build you the perfect solution, use MondayVibe if needed, and leverage any other AI capability in order to help you achieve your business goal.
Yeah, also because it's AI, you know, wherever you start asking, it'll point you to the right direction. It's not like there's a complexity of too many tools and people don't know. We can shift and direct them to the best place they need to build whatever they really want. It is really exciting.
We have one question online. Casey, I think this one's for you. Regarding the move upmarket, most enterprises don't have work collaboration, but they have sales and service already. Why would you lead with a product suite versus work collaboration?
Say the last part. It's hard to hear.
Why would you lead with a suite of products versus just leading with work collaboration?
Upmarket, you're exactly right. We're not leading with necessarily the suite. We're finding pockets in the organization with our other products where it's a good fit, right? I shared the example in my presentation of a very large client that we're going to coexist with some of the other competitors we have that are more entrenched in that particular use case. That's the part that surprised me, as I said, but we see a significant opportunity to coexist with our other products in that enterprise, but obviously grow exponentially with our work management platform as it scales in the enterprise organizations.
Great.
Thanks. Derrick Wood at TD Cowen. Great to see the AI optimization, or not the SEO, but the AEO really being effective. It does sound like it's still pretty small, but this has been a big question for investors on inbound, top of funnel, how that's been progressing over the course of the year. Maybe could you walk us through what you've seen in the first half of the year, what changes you've been making, and how you think that could pay off with, you know, top of funnel and conversion improvements moving into the second half?
Yeah, maybe we'll let our new Chief Marketing Officer, Harris Beber, take this one.
Thanks, Byron. Yeah, we've obviously gotten a lot of questions on it. I think I could break it down into maybe three parts on how we think about it. One, the questions are really important, but the emphasis on them, I think, has been outsized relative to the impact on our actual business, which is quite de minimis. If you think about what Roy shared a little bit earlier, Google represents about 10% of new, but when we look at the category overall, the category has seen about a 16% decline in clicks, where we've only seen a 9% decline in clicks. Why? Because we're really good at growth marketing. We've actually been gaining share as it contracts, which leads us into the second part. We're really good at growth marketing. This change is real, but this type of change is not new.
This is what growth marketers do every day. If I think back of when iOS 14 launched, every marketer was worried Apple removed tracking in apps. I remember I had to go into the board, and I won't say his name, but a very significant media mogul who managed a portfolio. I shared the iOS 14 update, and he looked at me and said, "Harris, you marketers are cockroaches." He said, "You always tell me the sky is falling, and then you always figure it out and drive growth." I think I've never been both so insulted and so complimented at the same time. I say this because this is what growth marketers do. We obsess over the details. We optimize the minutia, and monday.com is better at this than anybody else in the world. The target just changed, and that's where we're optimizing.
If I go into the third area, where are we investing and shifting our investment? SLG, where we've seen really good traction, we're accelerating our investment there. Upper and mid-funnel with video, social, where we're seeing really good returns there. The reason why it's important to note that is where this change happened was paid search. Paid search is really high-intent traffic. It converts within days. People know what they're looking for. They search for work management platform. They click on a link. They pay. You see that impact when there's a change right away, which where we're investing SLG video, the time to get the return on that's just a little bit longer, but we're seeing really good traction. We're going to get the return on that over the next coming quarters, where we're really excited about that.
Great. Thank you. Good morning, Rob Oliver from Baird. Thanks for all the information. Really appreciate it. Casey, my question is for you. It's a two-parter. Obviously, a lot of changes. Now that you had some time to be in the seat, you know, sales overlay changes, comp changes, I'd love to get a sense from you of how far we are into those changes. Have they all been implemented already? You know, comp changes and all that, and what the initial feedback has been from the team. Back in 2023, you guys had a dedicated slide around the partners and the partner network. I know you touched on it briefly, but would be curious to hear, particularly with that emphasis in mid-market, what role you think the partners will play and any color you can provide around, or specificity around, maybe perhaps what contribution to that mid-market effort.
Thank you, guys.
Yeah, I'll take the first one first. One of the most important hires, if not the most important hire I made, was a new global VP of RevOps. If you talk to any CRO, they'll tell you that's the right hand, right? If you have a very good head of RevOps, you can do a lot of things really well, really quickly. We hired someone that I've worked with in the past, and he has made a significant impact in a very short amount of time. To answer your question specifically, a lot of these things have been rolled out, but some of them will hit actually in January. We're phasing these things in as we go. We don't want to disrupt the business, obviously, to close out the year, but we also want to give them a taste of what it's going to look like next year.
We've rolled out these things in phases. Very encouraged at our progress to this point. I'd also say certain regions operate a little bit differently. That's why you have a region model, right? You can absorb some of the nuances. Some regions are a little bit further ahead with some of this upmarket outbound motion than others. That's one thing. The second question you brought up relative to partners, you saw the slide. We have an amazing ecosystem. I know we have a, I've seen, you know, good ecosystems. This is better than I've ever seen. In our mid-market space, and even in our enterprise space, our partners take a lead role a lot of times, right? They're using monday.com to provide a solution to a business challenge that is very unique, right? They built their business around it. We have a very healthy partnership program.
We work very well with them. In a lot of cases, as I said, they lead the opportunity so that we can move on to other opportunities. We see that continuing going forward. They play a significant role in our services business as well, right? Leveraging those partners to deliver services to get customers' time to value shrunk. Partners are obviously a big mechanism for us to scale. 10,000 sellers in our partner ecosystem. I have 500. You can do the math. I have one more question online.
This is more for Daniel and our CEOs. You've been busy with AI functionality, and that's for good reason. How does that impact, though, the release of updates on the roadmap for our new products like ITSM, CRM? Are we too focused on AI?
Yeah. First of all, I think we did add a very meaningful period of time over the last year and so. I think you all see the pace of innovation. This innovation is not only within new products with AI. We actually took this change and thought about what it means to change from managing work to doing the work across each and every one of our products. For each one of them, it's the same pace of innovation, and it's the same, I would say, new capabilities that will address these new needs. Whether it's like the new Monday campaigns product that we had the privilege to do with an AI-first mindset and think how AI can actually generate demand in this new era of AI and not just build a product that is more fitted to the past. Also, you know, you saw the AI SDR agent.
This is only one SDR agent, one of the agents that we are doing within monday.com CRM. Obviously, service, which is built from the ground up as such. I really believe that with AI now, the pace of innovation across all of our offering is getting much faster. I believe that when we have this North Star and this very focused strategy, we see how well it resonates with what people expect on the future. I would say specifically that the pace of innovation increased dramatically. It's across all both the existing products and the new products as well, and they are all deeply connected.
Right. Yeah. I can add that we have a very long-term view on the markets and the areas that we operate in. When we took in AI, we're thinking, trying to think two steps ahead, where is this going, where do we need to build into the future. Just adding to what Daniel said, we have to invest also in infrastructure alongside all the innovation in AI. Otherwise, they won't play well together. I think that will create a way better offering for customers and ones that they can actually adopt today and see working for them. It's two of those areas together.
Excellent. Let's take another question from the audience.
Hey guys, this is Damon Kahneman from Barclays. Thanks for sending the question. I appreciate all the information today. If I think about the net new products being 9 to 10% of revenue in 2025, what does that imply for the 2027 target of $1.8 billion? How does that think about the core work management product as well? Thanks.
I don't know who wants to take that. Maybe I can start, and feel free to jump in. You've seen gradual improvements with our new products. This will be a disclosure we'll be making quarterly going forward. We anticipate that number to keep growing for the next couple of years. We don't necessarily have a number in mind for the FY2027 guidance. I don't know if anybody else wants to highlight some of the excitement we have with some of our new products. I think service is probably the one we're the most excited about.
Maybe just to add, and you know, Casey can extend on that, but most of the cross-sell so far has been pretty organic. Customers finding new products and buying new products. Like Casey showed in his presentation, this is something that's very strategic for us. We put a lot of emphasis going forward. We're changing the structure of the CR organization. We hire new people. With AI, I just feel we're going to be able to expand our go-to-market as well, adding AI capabilities to each one of those products. I think all those things will drive more momentum and hopefully even accelerate the multi-product adoption.
Yeah. Yeah. I expect, obviously, it's a big part of my strategy that the other products start to grow and contribute in a more significant way going forward. I'm not going to give you a number, but I do have a number in my head where I think, you know, it could play a significant role in our growth. That said, the finer point on what Eran just said regarding organic, right? What does that mean? It means we're getting those opportunities, and I'll use monday.com CRM as an example, where a high % of those opportunities are new lands. They're not even monday.com customers. That is a very encouraging statement because we haven't really even started the cross-sell motion yet to go sell and expose monday.com CRM to our existing customer base.
The trajectory that monday.com CRM is on, I hope I can replicate that for the rest, and you can do the math from there. I just remind everyone, we talked about, I think around the end of last year, that we expect these new products to be low double digits as a % of ARR by the end of FY 2025. We're well ahead of plans there, and we anticipate that number just to keep expanding for the next couple of years. Take another question.
Hi, this is Selena on Cash's team with Goldman. I was wondering, as you drive adoption of AI agents and AI utilization across the customer base, we've seen some others talk about the potential impact on margins when you're in this early curve of investment before monetization starts to kick in. I was curious, can you talk a little bit about how you're thinking about driving margin expansion with this next investment cycle in AI?
Maybe I would start. In the presentation, I shared the model about what would be the impact on our gross margin. I said potentially we are a very high margin company in terms of gross margin. We achieved 90% throughout the last four years. We believe there is going to be an impact of a few hundred basis points. What we have assumed is probably that we are going to be in mid 80s, but we think there is an upside on it because we are very efficient in the way we run our business. I would say this is probably the range I would think there is going to be potentially some impact between 85% - 90%.
All right. Another question?
At your previous Investor Day, you included some list price action in your multi-year target. Is there any anticipated list price action in this new guidance?
This is really last time, you know, we had Investor Day. We had a very broad-based price increase that impacted all of our customers. That was about 3% - 4% of revenue uplift we got, both in FY 2024 and FY 2025. The anticipation is that we should always be getting pricing about 1% - 2% per year. These are largely enterprise-tier customers that are signed up on a discounted rate and that we're bringing back to list price. That's how I would think about pricing for the next couple of years.
Yeah, but maybe just to add to what Byron said, having in mind the fact that you are now introducing the AI products and Roy and Eran presented a slide that is speaking about pricing for the multi-products themselves, but also there is going to be a pricing that is going to be related to the AI products consumption base. We're not going to do like a price increase the way as Byron said, but definitely we're going to have some pricing schemes that will address the AI products and the bundling of them into the existing products.
Getting a lot of questions online, which was fantastic. This one probably for Eliran. Your retention numbers keep improving. Gross retention is doing well. What exactly is Eliran going to be doing to continue to see that improvement?
Oh, we touched that a little bit during Casey George's presentation, but we have quite a detailed strategy. I would say that the three main pillars that we are trying to attack are, first of all, expand the way that we touch our customers, meaning try to take the high-touch customers and grow it a little bit, probably like 50%. The second part is integrating and embedding AI all across the way that we serve our customers. We are now establishing a new segment, which is called the mid-touch segment, in which we are hybridly working between human intervention and AI in order to serve like 30,000 - 40,000 customers which were not touched by anyone from monday.com until now.
The last part is looking at the no-touch segment, which is quite an extensive segment we see in monday.com, and over there providing a full AI-based service, which is going to really increase, and we already see that, by the way, to increase the retention in this segment quite dramatically.
Great. Thank you, Audi. Another question from the audience?
Hi, this is Noah Herman with JPMorgan. Thanks for taking the question. It's very exciting to see the product innovation coming out on monday.com, especially around AI. How do you envision the uptake on the new AI products like MondayVibe, Monday Sidekick, and Monday Agents? How would you kind of compare that to monday.com CRM, which has achieved $100 million in scale in less than four years? Thank you. Yeah,
Maybe I can start. All those new products are fairly new and now being gradually released. As you've seen in the slide Roy and I presented, we planned the monetization of those products to be based on consumption. Actually, we're going to launch a new pricing model in the next few weeks for those new products. Based on the usage, we see amazing usage so far on MondayVibe, Monday Sidekick, and Monday Magic. We don't know exactly what the conversion is going to be, but usage is off the charts, and we're going to launch the monetization as part of it. It's really hard to say right now, but judging from all the signs we've seen, it definitely has potential to be an upside going forward.
Another question from the audience?
Great. Steve Arand from Citi. I want to ask on the free cash flow margin and the medium-term outlook or long-term outlook that you talked about there. I think a bit surprised it's only up a few points from where we are today. I guess what factors should we be kind of keeping in mind that might impact that? Maybe how do we think about the trajectory of free cash flow from today to then? Thank you.
Yeah, sure. First of all, we are very efficient in generating cash over the past few years. I think we achieved more than 25% most of the time and actually getting to 30% in some quarters. We also have to take into account a few things. First of all, the interest environment may change. Now we're taking into account the fact that the interest environment was being around 4% - 5% yield on the cash that we have in the bank. This is something that we also need to consider. The second thing is we are becoming profitable for tax purposes. There are going to be potentially tax payments, also taking this into account.
The fact that we would like to invest, as we said, in the opportunity that there is in front of us over the next few years, this is something that we think we should capture the opportunity. We feel to get to around 30% from where we are today and we start high, this is something that is probably the right kind of cadence for us. Obviously, there is an upside, but we do want to make sure that we don't lose sight of the opportunity ahead of us.
We got one question online, and we'll keep it with Eliran. Can you, you know, with all the innovation, organic innovation that you're doing with your platform and your products, dive a bit deeper into what you'd be looking for in terms of M&A? Is it new products? Is it customers? Is it something else that strengthens existing product?
You asked me, sorry?
M&A.
OK, sorry. I didn't hear the question.
I know it's a little loud up here.
Yeah, OK. With regards to M&A, I said this is one of the main capital allocation purposes that we have in monday.com. We are actively looking. We have a corporate manager in London that is actively looking for companies. The companies that we are, or the target companies that we are focusing on, are the ones that can accelerate our roadmap. If there are features or functionalities that can complete our CRM offering, definitely we would like to acquire these companies' workflows. If there are companies that can provide features, even in AI, in the world of service, in the world of CRM, we do want to make sure that we buy them. It's going to be tuck-in, mostly acquiring. We're not speaking about acquiring revenue or customers, which is the hundreds of millions or the billion dollars and above.
We're actually looking off the, I would say, tens of millions to potentially, if we have a great opportunity, maybe more than $100 million - $200 million, around $200 million. These are kind of the ballpark numbers that we are considering. I do want to say also that when it comes to M&A, we don't want to defocus our trajectory. Many companies like us in the growth stage, as you have seen, we have a lot of things that we are doing. When it comes to build versus buy, we do acknowledge the fact that buy is important, but we do want to build a lot of things and make sure we are focused on them. When the opportunity comes and we're actively looking, this is kind of the companies that we would like to acquire.
Great. Thank you. Let's go back to the audience for the next question.
Hey, Byron. Thanks, manager and team, for hosting this excellent meeting. I wanted to stick on the topic of capital allocation, and this is probably a question for Eliran. Wanted to talk a little bit about the share repurchase program. It was actually a very good announcement, very specific number, $870 million, which is about 9% of the company. Just curious about where that number comes from. More importantly, I'm actually more interested in, at this moment in time, how does management prioritize or optimize the trade-off between returning cash to shareholders in the form of share buyback? Clearly, the stock seems quite cheap, especially if you even achieve your 2027 targets, and the exit growth rate will still be quite attractive from an investment perspective in the company's own shares.
With all the other priorities that you have, including the tuck-in M&A, the investment in product, the investment in R&D, what internal metrics or analyses are you looking at that signal that a buyback is more attractive right now versus some of the other priorities for capital? Sorry for the long-winded question.
No problem.
I thought, the specific number, which is like 9% of the company, where did that come from? Number two, just how are you now weighting those trade-offs?
OK, sure. I would start with the latter part, and then I would get to the specific numbers. From our perspective, we finished Q2 with $1.6 billion in the bank. When you do a calculation about what is potentially you can invest in the business, let's say 6months - 12 months operating expenses, as well as to leave hundreds of millions of dollars to potential M&A, we have this. We have no problem. Therefore, we felt very comfortable with getting to a number that is up to $870 million. We wanted to keep it below 10% of the market cap. The idea is to have it opportunistic, meaning we want to make sure that we have the cash. If we see that the price in the market is the right price, then we are going to acquire potentially shares of monday.com in a very opportunistic way over time.
We feel that returning capital to shareholders is an important thing that we can do for the shareholders that are investing in monday.com. On the other end, we don't want to make it something that will come as a trade-off to us being able to invest in the business. We think this is the right balance between reinvesting in the business, doing M&As, and returning capital to shareholders. This was kind of the thinking process. We're also very confident in monday.com. All the things that we detailed today are telling us that monday.com is undervalued, and we are confident that the share price is going to go up. We want to also take the bet on our company because we feel this is something that can grow and flourish, and we want to take advantage of that.
All right. We have about five minutes left. Can we take another question from the audience? I don't know, one in the far back.
No?
It's good, that one.
Thanks. Lucky Schreiner with D.A. Davidson. It was interesting to see the variety of use cases for AI so evenly spread across departments. With this emphasis on going back to your customer base to cross-sell, I'm curious if you're starting to see more competitor displacements, and maybe what's your updated view on the competitive environment today? Thanks.
Obviously, AI is coming from everywhere, right? We see we're approaching the market at the same time our competitors are with AI. As far as displacements are concerned, we are not seeing that, right? Pervasively, I'm not seeing any pressure from the competitive landscape replacing us. It's early days for AI. I'm obviously very bullish on our capabilities, and obviously, our customers love monday.com, and they want to consume more from monday.com. Who better to offer an AI solution than us? Candidly, I think ours is best. It's early days in AI. I'm not seeing a ton of competitive pressure on takeouts for our solutions.
Great. We have one question online. This one's probably more for Shiran. You're seeing headcount go from growing in the mid-30% to around 20% by FY 2027. Was that always part of your plan, or has AI impacted your hiring?
Hello. Great question online. Of course, AI impacted that. I think in 2024 and 2025, H1 2025, we really built a lot of infrastructure that will enable us to leverage the power of technology in our foundation in order to grow linear. The way we work, and you know, from the get-go, we are building lean teams because we believe that fast execution, and you've seen the results of it, fast execution with lean teams, it's actually a competitive edge of us. I think in the era of AI, it's even much more significant than ever before. That's the way we work, and that's the way we plan.
Actually, the 20% you just saw is actually a result of a model we built in our headcount planning when we actually baked the AI impact we are already seeing and what we expect to see in the coming year and increase productivity from our headcount. This is definitely planned as part of our planning for 2026, and I believe part of our approach also going forward.
Thank you, Shiran. Any more questions in the audience? Maybe one right here in yellow.
Hi. Good morning. Thanks for hosting this. I just had two quick questions. One, just a follow-up on capital allocation. Do you have, I guess, Eliran, do you have any plans to be more aggressive on the share repurchases beyond just managing share dilution to 2%? Because you have a lot of examples of software companies over the past decade or so that have shown really great top-line revenue growth. When you actually calculate their revenue per share growth, it's actually very disappointing because there is so much dilution. I am just wondering your kind of philosophy around how you manage that, and maybe you can be more aggressive around that number. The second question was just more around product. When I do checks with larger, more upper mid-market customers, one of the big skepticisms that they've voiced to me is really around scalability.
I know you have MondayDB 2.0, but there just seems to be still a lot of skepticism about can monday.com CRM product, for example, support an organization of my size where I'm managing tens of thousands of leads a year. Some of them actually point out, I think monday.com internally, you actually don't use your own CRM product either. I don't want to name who it is, but you don't use it internally either. I am just wondering, is the scalability criticism just because people haven't really given it a try, or do you think you may need kind of a MondayDB 3.0 to just re-architecture for as you move even more up into the upper mid-market things?
I'll start with the second part of the question, and then we can go back to the share repurchase program. Look, I think here we need to distinguish between two things. One is the platform capabilities and MondayDB and the infrastructure that we built, and then specifically monday.com CRM. In terms of the infrastructure, MondayDB, and everything we built around it, we feel we're on a very good path to scaling to the enterprise. You've seen the 80,000 seats. That's just one example. The amount of larger enterprises growing, looking very good, exponentially growing over time. I think with monday.com CRM, we need to keep in mind that even though it's a $100 million business, it's still a very young product, only a year and a half. Obviously, because it's so young, it misses some key features. Like work management, we're going to compensate those features.
Eventually, also monday.com, we have very quick plans to also move into monday.com CRM. I think even more now with AI, it's obvious that what used to be a benefit in the past, now with AI, there's much more leverage adopting a new CRM system. We're baking all those SDR capabilities into monday.com CRM, and that's another reason why we want to expedite our move from existing vendors that we use into monday.com CRM. I think it's also going to affect our customers. In a way, I think not only the CRM space, but other spaces as well, it kind of levels the playing field. Those new capabilities are way more important to customers than old integration or very nuanced features. I feel it just creates even more opportunity for us. That's about the monday.com CRM, and I'll let Eliran talk about the shares. Yeah. Sure.
With regards to your question, we don't do share repurchase to manage dilution. We manage dilution, and we are doing share repurchase. This is very important because we are one of the companies that went public four and a half years ago and has been one of the most aggressive and listened to the market when it comes to managing dilution. If you look at our share-based compensation compared to our peers and to benchmark, we are at a very low % of revenue in terms of share-based compensation. We're listening to the market. We're looking internally, and we have plans how we manage dilution. The question should have been, we have been more aggressive. I think we're doing the right work. We're doing the right thinking process around it, and we'll continue to manage dilution and do share repurchase plan as we announced.
Great. Thank you, Eliran. Thank you to the entire executive team for making yourself available for Investor Day and making it a success. Thank you, investors and analysts who attended our 2025 Investor Day. That's a wrap. Hopefully, see you all over at the Elevate User Session at 1:00 P.M. Thank you.