All right. Welcome, welcome back to post-lunch sessions at the Citi Tech Conference. For those who, who don't know, I'm Steven Enders, part of the software research team here at Citi. And with us for this session, we got a full team here from monday.com. Gentlemen, appreciate you all being here.
Thank you.
Thanks.
I guess, Roy, maybe we just start with you since, you know, you've been here from the beginning. Just maybe for those who might not know, maybe you can just talk about how monday.com has evolved from pre-IPO to now, and what that journey has looked like for, for you all.
Well, yeah. So, Monday is, like, the concept of Monday was to bring power to our customers to build their own work software, to build whatever they want. So essentially, we build a platform, we call it Work OS, and it allows everyone to build whatever they want. And we've been really successful in the work management space now, CRM, dev, and we're, like, kinda expanding now to a suite of products. Whereas before, we were kind of like a platform with a, like, project management go-to market, if you will. And I think we are growing, you know, it's a growing company. We're having a very nice evolution of going up market, moving or adding more enterprise direction.
You know, that's like a path, it's a marathon, it's not a step function.
Yeah.
Yeah.
Okay. That's great to hear. Maybe we can talk about just where demand is today and what customers are interested in. I guess, how would you kinda characterize how that's going and maybe how it's changed over the past couple of quarters?
Yeah. So, demand is very strong. Like, top of funnel is very strong. Like, we saw that, like, even during a year and a half ago, when the economic situation happened, we saw very stable demand. And we, obviously, with our ability to go to market and really manage our expenses well with the BigBrain, measuring our performance marketing well, we kinda were able to capture a larger part of the market because others had to cut spending. We could keep the same 'cause we know exactly where to put it. So, the top of funnel is great, and I think there were, like, even better cohorts, 'cause who is looking for solutions in this situation? The ones who are really looking need them.
Yeah.
So, like, we got really good customers.
Okay. Does it feel like the, the types of customers that you're, you're getting now, that they've really changed? Like, is it more mid-market focused 'cause you're, you're seeing the scale of the platform, or I guess any differences in, in terms of the pockets of what customers look like today versus maybe, maybe a year ago?
Yeah. So, we always care about the low entry point. Like, a team can penetrate, whether they're in a small company or a team in a large company-
Mm-hmm.
And that has not changed. We're, like, adamant about, like, keeping the platform simple and easy to start with. But we are getting better and better, we call it the sweet spot. Like, our sweet spot of, like, the size of customers is always growing.
Mm-hmm.
And now we can do thousands very easily, and, you know, that's how we like to do it, and go across the market and kind of like, quickly cut across it. So, like, we're always growing, always improving, our ability to go upmarket, but keeping the penetration point low and simple.
Okay. So I think, you know, one of the things you mentioned last call, net new still seems like it's really well... Upmarket seems like it's really going well. You talked a little bit about that there. What is it that's leading to those segments in particular being well? Like, is it something that they're doing on the marketplace, or is it something that you're doing where maybe the go-to-market and the product side is a little bit better aligned for those markets today?
Which segments?
For the mid-market, and also the net-
Okay
... new opportunities you're seeing coming in.
Yeah. So I think, like, we see some growth in CRM in the mid-market, but we also see it generally in our ability to go and cater to larger customers, be able to deploy to them to larger sets of users, and also build solutions that are more suitable for them. This is like part of our ever-growing motion, you know, to grow. And monday is a platform that you can build any kind of work application to. You can connect it to existing tools that you have with integrations, and I think our partner ecosystem really ties into that and kinda helps customers adopt it to their own bespoke software or other tools they're using. And so we're ever evolving that and growing up.
I do wanna keep this interactive, so if there are questions in the room, we will make sure to get there and take those. I do wanna ask a question, though, on... You talked about stabilization in July, and I guess what exactly does it mean when it's stabilized? Like, what part of the business has stabilized, and I guess how should we be thinking about the trends of stabilization here?
Steve, we spoke about NRR, what we said is basically, that, you know, we said that by the end of the year, we're going to be, for all customers, slightly below 110, and we report in increments of 5%. So even if we're going to be 109 in terms of percentage, it's going to be slightly below. So we started to see, on a trailing 12-month basis, in the quarter, that basically it's starting to getting flat, the decline that we saw in the past in NRR.
Reason of the decline was obviously because of less of expansion. Growth churn remained very stable. Churn pattern remained very stable, so we started to see this kind of flattening, and it's not yet something we could call a trend, but it's a, it's a positive sign.
Okay. Okay, that makes sense. I do wanna ask a little bit about the competitive environment today. I mean, I think if we look at how fast you are going compared to some of the peers, you know, I think a pretty market outperformance there. So what is it about monday.com that is—like, what are you doing right in the market compared to maybe some of your peers?
I think maybe I can. So, I think when you look at our market, it evolved throughout the last years from, you know, project work management, because we are platform, we build a lot on change, and now we have CRM, we have dev. So first of all, we were able to get to other areas where the work management platforms can't because they are more rigid than the platform that we've built. So that's one thing. The other thing is we didn't have to cut spend. We were always very efficient, and also over a year ago, when the downtrend of the economy started, 'cause we measure every cent that we spend, and we see the return very effectively through the BigBrain system that we've developed.
We kept the marketing spend that we had. We actually saw a decline in prices, and we got more market share, so that was a big advantage for us. And I think the other thing is that we are constantly growing upmarket. And I think we are doing that in a very good way, right? Like we are improving the platform, which is a huge advantage for us. We are easy to adopt. We can get easily into customers, then we have the account management teams that can expand within those accounts to multiple use cases where it's more limited for some of the competitors. So I think those are our advantages, and that's what we play on.
Okay. Right, that makes sense. If we could maybe talk about consolidation opportunities at this point, it seems like that has been a trend that's been happening quite a bit across the space. How has the pace of those opportunities changed, maybe over the past year? And what tends to be the factors that leads to, you know, monday winning in those opportunities or, you know, potentially losing, and how should we think about the win rates and how they've trended?
Yeah. So, so, I think we've seen, because we play in SMB, in mid-market and enterprise, so I think that, on the SMB front, we've seen a lot of, consolidation. Like, that's actually, was a surprising factor for us during the economy downturn. SMB kept very, stable, and a lot of them consolidated on, Monday. Again, because we can cover most parts of their business on the same, platform, so we saw them replacing a lot of, other vendors. Again, it's not, it's not necessarily the work management, direct competitors, but it's many other companies. So that's worked, really, really well for us. We are seeing that, also happening in, in the mid-market, and enterprise, front, but, I think it's not as strong as it was in the, in the SMB.
And again, the main reasons we are winning is because customers are looking for platforms that they can shape to their own use case. They wanna work the way they work by, they don't want to do just project, they want to connect it to the, to the sales team, they want to connect it to procurement, to legal, to many other areas that we can step into in a pretty fast way to see the, the return. So we have very strong win rates against competitors there, and yeah, it's a very good trend for us.
Okay. Okay, that's great. Great to hear. Maybe shifting gears to the product side a little bit more. You know, mondayDB, now just kinda getting deployed in the past couple of quarters, how does it change the, you know, the underlying architecture, and maybe what was missing before that this really helps kinda solve for?
So it's a great question. So, mondayDB essentially is built like the, old infrastructure was. It's very, it's schemaless, it allows you to do anything you want. So in that sense, it's the same, and we just had to, you know, replace the data infrastructure, if you like. And I think like it, this will open the door to a lot of other use cases, like use cases of scale and added functionality, and it, it allows us to, to do a lot of things, better in that respect. And already, it was deployed to 100% of the customers way ahead of time, really, zero glitches.
It was amazing, and what customers see is that, like the largest customers with the biggest amount of, like the largest accounts, saw a 5x improvement in speed.
Wow!
And that's like the first version. We're planning like consecutive versions over time that will add more and more scale, and it's really a new platform for us to like be able to scale all the time.
Okay.
I think that's key for us to go more enterprise, more deep use cases, and more core to be more core for our customers in certain areas.
I guess, how did the use cases potentially change and the multi-product strategy change with the addition of mondayDB?
... So let's take an example for CRM. So now, monday CRM is not able to hold, like, millions of records, yet. Why? Because we're doing a lot of magic in there. Like, you can connect, things, it's very dynamic, you can see reports from everywhere. It's like magic, you can do anything you want.
Mm-hmm.
But that magic doesn't scale to millions of records yet. It's like not an easy undertaking, but with mondayDB and future versions, you know, we'll get there, and I think that's tremendous for CRM and will allow us to go to ever larger deployments all the time.
Okay. And I do wanna touch on CRM and some of the other multi-products have. I mean, monday dev also getting really good traction. How should we think about, you know, what is it that's driving this growth, and at what point should we kind of view it as becoming a real contributor to the revenue model?
That's a good question. So I think like, we've opened those products until now just for new customers, 'cause we wanted to see how it works now. We started rolling it out to existing customers, again, gradually over time to measure things and see that everything is stable. And so, once it's rolled out to existing customers and we start, like, training the sales team and improving our ability to kinda cross-sell those products, I think it will start being an ever increasing factor in our revenue. I think like a few years down the line, like, let's say two years, I think it's going to be very significant.
Okay.
I think, next year, it's going to be good, but still the vast majority will be like, work management, and we're still investing a lot there.
Okay. Maybe, maybe Yoni, as you think about the go-to-market for the multi-product specifically, does it change how you think about going after a CRM use case or a developer use case, compared to selling the broader kind of platform opportunities?
Yeah, I think, again, it's sort of an evolution for us, right? We, it's a new product that the reps need to understand, the sales team, the CS team, partners. So it's changing the structure of the organization, both in the - I think in all of the go-to-market functions. So in sales, we are building teams that specialize in CRM, for example, and teams that specialize in dev, and they do new go to... new customers, but they also do overlay to the existing base through the account management group that we have. In the partner ecosystem, we are adding more and more partners that are CRM partners, and we need to train the more generic ones, the work management ones on CRM. So it's evolving the way we sell.
It adds overlay functions that we never had before. So that's the main thing.
Was it, was it this aspect that was maybe holding back the, the broader rollout to 100% of the customer base? 'Cause I think last quarter you only talked about 50% being deployed. So I guess what was the limiter to, to that being driven to 100%?
Yeah, I think it's something more fundamental to how we think about the product. So we don't develop a product for, you know, two years, and then we roll it out. We wanna learn very fast. So we start by building something more basic, releasing it to a small population. We get a lot of feedback through that cycle, but it allows us to move extremely fast, and the end result is that you get to 100% much faster and much better than working on it, making it, like, perfect before you start to release it. So I think it's part of the way we think about how we build products, and that's the main reason.
An important note to make is that if any customer on the touch funnel, like with the consulting group want the CRM, you know, we can open it up for them. So it's not a problem of that sort. Just like the A/B tests and all the stuff we're doing to measure it.
Okay. Gotcha. Okay, that's, that, that's helpful. I, I do wanna ask one last question on, on kind of the, the multi-product side before moving on to, to AI. But, you know, how do you think about the use cases that could potentially be productized and, and turned into a standalone solution like you have with CRM and dev, and, and I think there was discussion about marketer and projects as well before, but how do you think about what could be the next thing to be essentially a standalone solution in the, in the marketplace?
So AI, AI is one good example, okay? Like, we opened up the marketplace for AI solutions on top of our AI assistant, and already we had, like, a hackathon with a lot of apps developed, and customers will be able to buy them. Like, we're now, like, improving them, you know, from hackathon to production stage. Those developers are working on it. So, I think that's one thing we're doing, both with AI and its monetization and, like, an improvement to the marketplace. But we're also going to see customers, like, the marketplace, sorry, and our partner ecosystem being able to build complete products and package them. That's also something we're looking into, that they can really...
Like, we are packaging, our, the Work OS platform as products, like a CRM, you know, they will be able to do it. And for example, like if you wanna build, your own CRM, like a new one on top of Monday, you have the same capabilities as a developer to do it like we have internally.
Mm-hmm.
Like, we really opened up the platform and allow third parties and developers to do it. We really believe in that, and like, thinking ourselves as a platform first, and like, really taking that seriously.
Okay. So I do wanna shift to the AI, the AI angle here, 'cause I think very, very top of mind for, what's going on in software now. I guess, how should investors be thinking about what your AI strategy is, and the, the key product points that you're, you're looking to, monetize going forward?
So I think when we look at AI, we need to think short-term and long-term, okay? And on the short-term, it's very clear, it's like the capabilities we have now with AI are great at improving existing products, and like or let's say kinda influencing a lot of what we do in the current go-to-market.
Mm-hmm.
So for that, we're added the AI layer, our AI assistant, which essentially is embedded in every part of the platform, and, like, we've developed a lot of add-ons, and our ecosystem will develop way more add-ons, and those will be charged by the developers themselves. So if you have, like, let's say an example, you want a an AI bot that automatically responds to emails, someone can develop it, like, latch on top of our email solution and, you know, solve that problem. We can have a bunch of them and with ratings and, you know, some will be better than others. So that's the short term. I think the midterm will be what we already started seeing and working on, is the ability to connect.
Like, AI right now is really good at doing specific things and not seeing a complete whole picture, like a human does. And so breaking it down to parts on the midterm will really be important, and we see that as an a new no-code building block. Like, that you can take a task, break it down to other tasks, but it's on the platform, and then from that from one operation, you can yourself turn it into another operation. Like, someone reads an email, understand what it is, and break it down to column. On that column, you can build an automation and have, like, a no-code building block, let's say, that writes an email according to what it sees on a board, okay?
So, and then the human essentially can dive into the middle of how it works and kinda orchestrate it, but using smart AI building blocks that can do things that we couldn't do before. And longer term, we're also looking into that and working on that, is like actually having that AI that sees a complete picture, that can actually do work, that you talk with. It comes trained, it knows monday.com, you know, you can talk with it. It has a job to do, and, and it does it well, and, you know, like, AI can-
Sure.
... I don't know, like, interact with 2,000 customers you have in a minute.
Yeah.
So I think there's, like, a huge potential for productivity, and I think we are, as monday.com, in a great place to kinda bring that to the non-tech segment. 70% of our customers are non-tech, and they come for us to digitize and improve, and I think we're in a great spot to kinda give them that ability and kinda bridge the gap for building operable AI applications for work. Yeah.
Okay. That's, that's great. I think one of the questions that we kinda continue to get is, is we think about AI and, and the monetization angle, especially in, in this space, is what becomes table stakes in the market and, you know, or versus what is potentially novel that, that could show further differentiation and monetization? So how do, how does monday.com think about what's just gonna become, you know, table stakes versus what you can actually show real differentiation on and, and, you know, and show a difference out there?
Yeah. So I, so I think, like, there are the things that you just use to autocomplete things, and let's say we have a great solution for building formulas, which is not an easy thing to do. It's like, you build, like, complex formulas, and you might not know the syntax. So now you can just, like, type whatever you want in English, and it creates a formula, and it works, and it explains you what it did. That's awesome. I think this type of things that kinda improves the product itself and is part of the product, might become table stakes. Okay, we did open it up to the marketplace, and if someone has a better formula builder, you know, the customer can go and buy it.
Yeah.
But when you think about actually giving you value and saving you time, not improving the product itself, improving you-
Yeah.
I think this is something you can charge for, and this is where we're aiming at, okay? This is already what we see. Like, if you can send 2,000 email in a minute, or understand, like, and validate, let's say, attendance for an event, or do SDR in sorts, or like those kind of stuff, this saves you time and money and improve your business. This is something you can charge for a lot, I think for everyone, and I think what we'll see is that, like, not all AIs will be cut out of the same cloth.
Mm-hmm.
It still requires you to be good at doing that, to productize that, to make it available for people to actually use it, and that they themselves do a good job at those kind of things.
Sure. I do wanna ask, I guess similarly, I mean, you know, how do you- how should we be thinking about the AI opportunity today versus, you know, some of the macro pressures? And, you know, as you think about the opportunity for how big AI could be, how do you balance that with all the trying to show margin in the business and trying to show future, future margin potential? Like, has there been any change in the math around growth versus profitability, at this point?
... So from our perspective, we have a long-term plan that we presented in IPO, by 2025 to be around 25% profitability and 25%-30% free cash flow. We are obviously advanced significantly, two years in advance. We are cash flow positive since IPO. We also performed with positive operating margin in Q2, and by the end of the year, we said that we're going to be profitable. So from our perspective, this is something that can contribute to our longer-term plan, but, you know, our number one priority is to invest in what we call sustainable growth, not growth at all costs. So I think it can complement, it can be complemented to our improvement and, you know, continue to be efficient.
It's not going to change, at least in our thinking for now, dramatically, the numbers in terms of profitability or margin. You know, maybe some, some positive contribution, but nothing that we currently consider as, you know, a dramatic change.
I guess if what would need to, I guess, change in the marketplace to maybe put your, you know, foot on the accelerator more and decide that there is more time to either or more... Yeah, this is the right time to, to put more cash to work and either invest in marketing or go to market or something more on the product side. Like, what would be the, the, the proof points that we should be looking at that might make sense for that to happen?
So we have BigBrain in monday, and BigBrain is the BigBrain that calculates everything. Everything that we do is we are a very data-oriented company. Everything that we do, we measure, we look at returns, so this is why we're very efficient. So from our perspective, there is no, you know, nothing that prevent us from investing more. Actually, we are now at inflection point. You know, we believe that while the last 18 months were kind of challenging from a macroeconomic perspective, we didn't do any RIF, we didn't do any reduction in force. We actually continued to invest, and we think we need to do it to continue with this investment in order to be ready for 2024, 2025. We're thinking longer term.
So from our perspective, if the opportunity is there, and we see the returns, then, you know, it's a, it's efficient investment, then we are doing it, and the plan is to continue to hire people. We said that we are going to hire 15% from where we were at the beginning of the year. So we started with 1,500. We plan to finish around 1,800, and then to continue next year. So if we see the opportunity, we invest. There is nothing to prevent us. We have close to $1 billion in the bank. We have no debt, you know. It's a huge opportunity, and we have to definitely take advantage of it.
Sure. Okay, that makes sense. Just any questions in the audience here? Okay. Maybe switching gears a little bit to how you're thinking about go-to-market today. I mean, Yoni, you became CRO a year ago. I know it's, I know you're already on board before that, but, I guess what, what's been your biggest area of focus and the key changes that you've made in the go-to-market since becoming CRO?
Yeah. So I think that there were a few. One of them is basically consolidating all of the client-facing functions under one umbrella. So significantly, internally looking, like, significantly improving collaboration between the groups and kind of a more seamless customer life cycle journey, which in return improves the customer experience. So that's been one more on the internal front. On the external go-to-market front, we've been doing a lot of things. So one of them is getting ready to continue upmarket motion. We've in the last year, we've changed the mix of the sales force that we hire from more kind of a mature B2B organization, people with you know, over five years of experience selling to enterprises. So that's one thing we've been going on.
We've in parallel to continuing the PLG motion, that works really well for us. We've started to add a more top-down motion that will augment that to be able to talk to more senior level persona, close at the first get-go, bigger deals. So that means that you need to start to think about persona, more value-based selling, which is a different emotion.
Mm-hmm.
It's different lead acquisition, but also when you do customer marketing, it's a different way that you need to train the reps to talk to customers, to be able to, instead of going small steps, to be able to go to, you know, a VP or a C-level in a company and kind of try to close a much bigger deal. So those are the things that we've been, we've been working on.
Okay. So as we think about the enterprise go-to-market, and I know, you know, it was a bigger push a year, a year and a half ago, that, that's been happening, how should we be thinking about the ROI on those investments? And maybe how have the productivity rates, you know, kinda trended in the enterprise versus maybe what you were expecting when you first made that investment?
I don't think that they changed dramatically. I think it's... And we did it as an evolution. It was not like throwing a huge you know investment that we don't know what we get. Because we measure everything, we make sure that every rep of course there is like longer onboarding for the reps, but and the sales cycles are longer, but it's not tremendous. We don't have sales cycles of a year and a half, right? Like, most sales cycles also for an enterprise would be three to nine months long. So you see the return pretty quickly, and I think we've grown it in a good way. Like, we didn't make like a huge jump at one go.
We constantly make sure that we see the return before we make the next scale.
... obviously, our larger customers are, you know, better, they're, like, growing faster, their retention is higher. So that investment kind of made a shift in the cocktail of the ARR, and, you know, that makes a change over time.
Yeah. I mean, I know there was a record quarter for enterprise adds at 200+. As we think about that strength, how much of that is being driven by, you know, the account management and the real focus on go-to-market that's led to that, versus maybe the product being in a bit more mature of a place and things like mondayDB coming in to help augment that approach?
Yeah. So I think, like, going upmarket is kind of like, we're, we're going to always talk about that. It's always, improving, going to, larger customers, and, and, you, you have to do a lot across the board to, to go there. It's permission, governance, security, putting, data in regions, and, improving the product in, in many ways, and also the scale. So we, we are doing a lot of effort across the board, and that always opens up, new deals, and new opportunities. So, so that's like ever growing, and, and where we see it happening is that the sweet spot that we can sell in, that is easy for us to do it, is always going up.
Hmm. Okay. And you mentioned marketplace earlier on in this, but how should we think about what the marketplace opportunity could look like for monday.com? I mean, I know that Atlassian’s had a lot of success within their own marketplace and how that has kind of augmented their approach in the market. But how are you kind of viewing what marketplace could do for you and how it potentially changes either the customer acquisition or the importance of certain customers? Just how do you think about what marketplace could do?
Yeah, it's a great question. So, like, we think of ourselves as a platform, and thinking like that, you want to have developers and partners actually building on the marketplace, feel that they are building their own business, okay?
Mm.
That they can control their own destiny. And for that, we kind of opened up the whole platform, and like I told you before, like, if you want to build something, you'll have pretty much the same capabilities that we have, and we're really supporting our the developers who are building on top of us. The reason we're doing it is because I think, like, multiplicity solves more problems, and we have a huge long tail of business verticals. We're, like, catering to two to more than 200 different business verticals. We probably have a super wide opportunity for everyone, and we're not going to get all of it. We're not going to have the best solutions for all the long tail, okay?
We're going after the very large horizontals, like CRM, dev, work management, and so on. And so we see a huge opportunity for partners to come and you know add more value to those horizontals or even go after other verticals and improve them. And so, like, we see this as a huge growth avenue for us in the coming years. We're making a lot of investment there.
Do you view the marketplace as kind of your main partner channel strategy, or what is like a more traditional channel opportunity look like for monday.com?
So it's part of it. So we have a lot of partners that are developing stuff. If you need an integration to other systems, then partners would go in and help you do that or figure out a solution that is specifically to you. That's on the marketplace. But we partner with the partners, maybe Yoni can expand on other issues as well-
Yeah
... like upselling and services and other things.
Yeah, sure. So we have, I think, a pretty big reseller network. We have roughly 200 resellers, we have around 2,000 referral partners. Those are mostly small boutique ones, consultants. And we have GSI partnerships, right? Like with Accenture, McKinsey, TCS, and Deloitte, and others. So I think we invest a lot in those partnerships. They do a few things. One, they echo the brand significantly, so that's like a very significant part for us. All of the top apps in the marketplace were developed by existing partners. I think it's like, I don't know, 8 out of the top 10 or part of those were developed by partners.
And they allow you, when you go to significant opportunities, you know, if you can bring one of the big GSIs into the deal, they have a lot of relationship. It helps you navigate within the organization, so they also help us to close bigger deals. So we have all sorts of partnerships, and we use them in different way.
Okay. No, makes sense. We only have a few minutes left here. Just want to do a quick survey, see if there's any questions in the room here. And we have a mic coming, so yeah.
Sure. That's fine. Just quick questions regarding the AI. When it comes to AI, do you think the customers... Yes. Thank you. Do you think the customers really understand what kind of applications or features they are looking for when they're searching this on your platform? And if we have to talk about some revenue flow, then there are, like, significant revenue flows on AI. Do you expect going to be 2024, 2025, or we completely have no idea right now?
... Yeah, so I think no one really knows what to expect from AI, not even customers, and, and, you know, we're, like, when I see the technology and what we can build with it, like, every day, we're discovering new things and new way to do things, and I think, the world is doing it together, kind of like new best practices and, and such. It's hard for me to say if it's going to be something significant, next year. I think it won't, like, money-wise. I kind of look at AI kind of like the internet when it came. You know, the internet is an infrastructure, kind of like AI, but, like, it took a while to figure out what are the best companies, what are the best solutions.
If you remember the dot-com era, you know, we didn't really figure it out, and it took us a while. So I think, like, if you look at, like, 20 years from now, everything was going to be completely different. If you look at, like, a year or two, I think we'll have a lot of breakthroughs, like we did back then, but, there's, like, a huge long tail of like change and improvement that is coming with AI, and we'll figure it out together. Like, you know, I think a lot of it will be able to... Like, it's moving so fast, so if someone doing something great, you know, others will duplicate really quickly. It's not that hard 'cause it's super fast, you know?
So, I think we're going to see a lot of those step changes, mainly to products and how people interact with them. And if you're not there, like, putting the energy and effort behind it, you're going to be left behind. But I don't think we really know, and anyone really knows what to expect, you know, in the coming years that this will change.
Good question. Anyone else out there?
Yeah. Ask-
Can you hold up for the mic for a second? Yeah, thanks.
We saw a pretty strong, you know, billings growth for the last quarter, so maybe the management could give some outlook for us, maybe. What about the second half outlook for the billings growth?
So-
Is it gonna be better? Because you mentioned some flat but positive signs in July and the third quarter.
Yeah. You asked about billings, right?
Yeah, billings growth.
Yeah. So, you know, the model of monday.com is annual subscribers and monthly ones. 80% of our ARR is paid on an annual basis, and this is what contributes to the healthy kind of cash flow that we have, as well as billings. I don't want to tell you that H2 is going to be better. It can also be fluctuative due to, you know, seasonality, like summer and things like that, but I would say that we're pretty much in the same trend. I don't want to tell you that it's going to be better or worse.
Okay, thank you. And another question is about net retention rate, net dollar retention rate. So we saw it continues to going down. I don't know if you have any, like, bottom bar for the market, like, when or which kind of level that you're you think maybe the core NR, like, the NR for the recurring revenue, more than 50k. I don't know, maybe whether it's gonna be like less than 100, 110%, or maybe it's gonna stable at that level.
For entire population, we said it's going to be slightly below 110.
Mm-hmm.
For the big accounts, it's going to be above 110 by the end of the year, and hopefully next year, with everything that we are doing, we're going to see also something.
Okay. Okay, thank you. Very clear. Thank you.
Yeah, great. I think we're running up on time here, but thanks, thanks, everyone, for the questions, and wanna thank the monday, monday team for being here. So greatly appreciate it.
Thank you.
Thank you very much.