monday.com Ltd. (MNDY)
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Goldman Sachs Communacopia + Technology Conference

Sep 7, 2023

Moderator 1

First of all, I want to give a warm welcome to our guests who traveled all the way, I think, a very long distance from Israel. Real pleasure to have you guys. And this is truly a special company, a truly special company, and we are excited to host you guys here. Eran Zinman, Co-founder and Co-CEO, and we've not met before. Daniel, you're the Chief Product Officer of the company. I've seen you on Zoom meetings, and thus it's so good to meet you in person.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Thank you.

Moderator 1

Of course, my co-moderator, Gili

Daniel Lereya
Chief Product & Technology Officer, monday.com

Hi.

Moderator 1

- who is actually probably the only person here in the audience who has actually visited the company in their headquarters.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah.

Moderator 1

What was it like? What was it-

Daniel Lereya
Chief Product & Technology Officer, monday.com

Oh, another person.

Moderator 1

You've been, too? Okay.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah.

Moderator 1

Sorry about that. Yeah. But-

Daniel Lereya
Chief Product & Technology Officer, monday.com

Maybe I'll speak to it this time, but next time you can. Yeah.

Moderator 1

But she spoke the local language.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Yeah, no, the energy was unparalleled, really. It was, it was really exciting to see. So thank you for having me.

Moderator 1

Yeah. So,

Eran Zinman
Co-Founder & Co-CEO, monday.com

You're welcome.

Moderator 1

The exciting past year or so, you guys have done amazingly well, performed even better than people's expectations. I am still intrigued. This is such a young company, small company, so much potential. I want to ask you, where do you see the company five years from now? What are your and Roy's aspirations for where you want this company to be five years from now?

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah, so I think, you've all seen the story of monday.com. For us, it's been an evolution since day one. We built a very robust platform from day one. The secret sauce and what makes monday.com very unique is that from day one, we wanted to build a software that's 100% flexible. Nothing was pre-built. Nothing was rigid. Customers from day one customized the software, built their own tools, and the evolution of that was packing that into products, and those were not born out of thin air. We actually saw our customers using monday.com for CRM. We saw our customers using that to manage their dev teams. So we really took this a step further and packaged those into separate products.

When we look into the future, I see a future where we have more of these products, and eventually, customer work, you will buy the monday.com suite.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

So basically, a bunch of products built on top of the very powerful platform. And where we want to be is that customer will manage the core of their work on monday.com, across different departments. And by doing that, the benefit of having all that information on one platform is unparalleled because I think what happened with software today is that eventually, it creates silos within an organization. So much data is lost in the sales management software, in the dev management software, in the customer success team.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

In project management, we want to make this data accessible. We want work to be streamlined, not be, you know, focused on one product, but streamlined across multiple products, and by that, giving true value to our customers.

Moderator 1

For that vision to come to fruition, Daniel, what needs to be done on the product side?

Daniel Lereya
Chief Product & Technology Officer, monday.com

Yeah, I think, first of all, like, the most important part is to continue and elaborate the platform. I think that the platform and all the building blocks that we have are basically what drives everything that we do forward. So things like mondayDB, for instance, which is a new data layer that we've just released, the first version, Workflows, which is a new building block that we just announced. I think these are the most important parts. And also, aside from the platform, we also want to invest a lot in not only having the best and most robust platform that is, but also opening it up to external developers.

Because I feel that with all the products that we are going to do, managing core aspects of work, we also want to reach the long-term needs of so many different business verticals that are using monday.com for basically everything. So I think that also opening the platform together with a strong ecosystem is the key.

Moderator 1

So between what you guys said, you talked about packaged applications kind of thing, and then, Daniel, you talked about the platform itself. So, t his is not ERP because it's not back office stuff. So what, what is this then? product management, CRM, HR, finance, and how do you do it in such a way that you're not replicating what others have done for decades? What kind of-

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah

Moderator 1

... white spaces do you see in the market still?

Eran Zinman
Co-Founder & Co-CEO, monday.com

So I think it's a combination of both unique abilities the platform offers. The whole idea behind monday.com, and you know, even seeing the momentum we've seen with the new products, which was even surprising for us to some extent, to see that growth and that momentum. The feedback we get from users is that they always wanted to control their software.

Moderator 1

Mm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

They felt that by using existing software, no matter which vertical it is, it always felt limited to some extent.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

I really envisioned the future of software to be more flexible.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

This whole idea that everybody's working in the same way, I think it's the old way to think about and build software. To give that software to people, I think that's the future of software-

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

and how it will evolve over time across many verticals.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

I think every customer that use monday.com is getting used to controlling their own software, customizing it for their own needs.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

And, it's really hard to, you know, go back from having that ability. So all those products benefit from that.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

And also, the fact we can package it on the same platform gives so much compounding value, because every improvement we add to the platform affects all products. Every improvement we add with one product affects another one.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

It just makes the company very efficient-

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

Over time. In building new products, in improving the platform, it's compounding value across, across the board.

Moderator 1

Got it. Any customer you can talk to who has deployed the most amount of the monday.com product suite, also across big scale?

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah, but we've seen customers deploying all products, and we just shared in the last earnings call over 1,700 accounts that were using the Work Management actually bought sales CRM or monday.com Dev .

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

We haven't done any promotion.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

The sales team didn't give them a call.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

All happened organically. We're surprised to see that.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

They're just thirsty to try new things-

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

basically have more features within their company.

Moderator 1

Mm-hmm.

Moderator 2

And if I can just ask a question here around pulling on the thread that you just mentioned, which is that customization, but also not necessarily the technical debt or investments that are needed. And so you guys have been building out a lot or monday.com has been building out a lot of their app, app store and app ecosystem. And so if either of you can kind of talk through that balance between the investment and the expertise needed around building apps around in monday, and also the core platform, which is much more easy to use and very low code, no code?

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah.

Moderator 2

Anyone to start?

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah. So basically, are you referring to our marketplace or just the ability to package products into?

Moderator 2

I guess a little bit of both, right? So, like, you're gonna have that core platform that has those abilities and those Lego blocks that you just mentioned.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Mm-hmm.

Moderator 2

Then there's the app marketplace-

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah

Moderator 2

that you're also expanding into.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah. So, the way we think about it is that eventually we'll never be able to, you know, give solutions to all verticals. There's a long tail of verticals, also a long tail of use cases-

Moderator 2

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

-that our customers use, and for that, we want to leverage our developer ecosystem. We built our marketplace to just allow... Because the way monday is built, everything, you can extend it, every building block can be extended, and more components can be added to it. So basically-

Moderator 2

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

We have a whole community of developers that building apps on top of the monday.com marketplace. We actually added the ability to monetize those apps in the last year, so we've seen growth over there. It's not significant in terms of the company revenue, but growing, like, super fast.

Moderator 2

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

And just people come up with very creative apps and ideas. And even now, when we started working on AI as well, we also added the ability for third-party developers to extend the platform we use in different AI applications across the board. So even here, we're kind of leveraging the knowledge and expertise of the community in order to kind of increase the innovation of the company.

Moderator 2

Mm-hmm.

Moderator 1

Yeah, I'll, I'll pass it back to Gilly in a second, but you put up really good performance, very strong quarters. What has been the reason that monday.com has stood out in an ocean of calamity, where people have had to lower guidance and cut down their growth rate, et cetera? Not only did you put up good growth rate, but how dare you turn so profitable? Come on.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah.

Moderator 1

How'd you do it?

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah.

Moderator 1

What, what's the secret sauce?

Eran Zinman
Co-Founder & Co-CEO, monday.com

I think it's a combination of a couple of things.

Moderator 1

Yeah.

Eran Zinman
Co-Founder & Co-CEO, monday.com

One, I think one of the reasons monday.com has been resilient in the economy right now is that we're not heavily tech-focused. Only 30% of our customers are technology companies, 70% are non-tech. And we see , greater headwind in technology companies, and non-tech, we're less affected by the economy. So for me, it's a lesson of, diversity is very good. It creates stability.

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

within the business, and the fact we were serving both tech and non-tech is very helpful.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Also, many verticals, so it's very stable-

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

-the customer base. Number two, and I think that really stood out in this economy is our data-driven approach. We have Big Brain, which is, it's our BI tool, almost since day one, and we always know what the ROI of every campaign. I think a lot of companies, you know, during 2021 and 2022, were just throwing money at, at performance marketing, at, you know, billboards, subway ads, and they know exactly what's the effect of everything they've been doing and how it contributes to revenue. And we always measure that, and that gave us a lot of confidence, even now, to keep spending, be, be aggressive, because we saw the return.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

I think the easiest thing to do once you want to become profitable is to cut performance marketing-

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

100% because it's, it's an immediate effect. But we always felt it was a big mistake-

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

Because you kind of sacrifice the future for that.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

We kept being aggressive. We acquire customers now faster than ever before, because we track everything.

Moderator 1

Mm-hmm. Daniel, are you telling the management, "Don't spend any money on marketing? Put all the money in research and development," right? Because we build great products, people will just, just come and buy. No. It's just... It's a joke. So I'm curious to get your thoughts on what is on customers' minds as they look at next year. They're all preparing for next year's budgeting. Jan Hatzius, our Chief Economist, has been calling for a soft landing. Gilly, what do we call that?

Moderator 2

Soft landing.

Moderator 1

Soft landing.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Soft landing.

Moderator 1

Yeah, we call it Soft landing.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Good one. Yeah.

Moderator 1

Yeah.

Moderator 2

I can't take credit for it.

Moderator 1

Yeah.

Moderator 2

I've just been around.

Moderator 1

Yeah, we just stole it from Jan. He said soft, and we said, "Software?" "No, soft." "Software, okay, we like it." So, rates have gone up quite a bit. The last 18 months have been very tumultuous, and you landed your software company really well. If we look to a period where rates are not gonna be that volatile, we see some stability. What do you think happens to Monday's business next year if things are more stable?

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah. So already we, you know, we saw a decrease in NDR. Because pricing is seat-based, companies were slowing down hiring, and that had an effect on their ability to spend. What we saw in the last quarter and continued as a trend is stabilization across that.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

It's not more companies kind of cutting jobs, but actually a little bit of a recovery-

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

-optimism-

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

in a sense.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

So I don't know exactly how much it will be going forward, but I feel not only that, things look more optimistic now, the company is different.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Just our ability to sell across multiple products.

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

creates much more opportunity.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

If you compare monday.com today to what it was two years ago-

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

... the options you have right now as a salesperson, for example, within the company-

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

to upsell to existing customers

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

is much greater.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

We kind of created our own opportunity-

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

-within that environment to upsell more, so more options to give value to customers. And also, we feel this recovery, initial recovery, I would say-

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

... in the economy and companies kind of a little bit back to hiring.

Moderator 1

Yeah. Do you see more pronounced in certain verticals or certain geographies or certain kind of size of customers? How do you, what's your data telling you.

Eran Zinman
Co-Founder & Co-CEO, monday.com

I think it's pretty much across the board.

Moderator 1

Yeah.

Eran Zinman
Co-Founder & Co-CEO, monday.com

But I think, like I said, tech segment took the biggest hit.

Moderator 1

Yeah.

Eran Zinman
Co-Founder & Co-CEO, monday.com

So, I expect that to recover maybe a little bit better.

Moderator 1

Yeah, got it. Are you starting to see signs of, not that you would notice in your business, but, your customers, are they coming back and saying, "Hey, you know, looking to start to hire back again?" Are you seeing any early signs of that, those kinds of discussions?

Eran Zinman
Co-Founder & Co-CEO, monday.com

We don't have those kind of discussions.

Moderator 1

Yeah.

Eran Zinman
Co-Founder & Co-CEO, monday.com

But judging from the numbers-

Moderator 1

Yeah

Eran Zinman
Co-Founder & Co-CEO, monday.com

... it seems like it's starting to change a little bit.

Moderator 1

Got it. And does that change your views on hiring at all? You've been hiring at a pretty decent clip, but do you feel the need to get a head start and accelerate hiring at some point?

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah, definitely. What we've done in last year was to slow down hiring, and we're now re-accelerating that.

Moderator 1

Mm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Definitely next year-

Moderator 1

Mm

Eran Zinman
Co-Founder & Co-CEO, monday.com

... it's gonna be significant.

Moderator 1

Mm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

You know, broadly, we're gonna do, like, 50% of the new workforce is gonna be focused on R&D and product.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

The remaining 50% is gonna be part of the sales team.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

and what gave us a lot of confidence is-

Moderator 1

Yeah

Eran Zinman
Co-Founder & Co-CEO, monday.com

... we see increased demand.

Moderator 1

Yeah. Danny, you're getting a big budget.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Oh, yeah.

Moderator 1

Yeah.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Hey, we have a lot to do.

Daniel Lereya
Chief Product & Technology Officer, monday.com

We have a lot to do, yeah.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah.

Moderator 1

That's good.

Moderator 2

Yeah, I mean, I think, going back to the different offerings, you know, project management, CRM, Dev, how—who are you selling to in those, right? You talked about, you're seeing, like, organic growth and momentum in that platform sales. So what kind of IT buyer are you interacting with? And also, what's your pricing and bundling strategy in really selling these, especially in the early stages, where there aren't those promotions and you're not necessarily going actively to cover that?

Moderator 1

Yeah, um...

Daniel Lereya
Chief Product & Technology Officer, monday.com

Yeah, I think so for—if we take, for example, the monday.com Sales CRM, so I would say that people that buy this comes from, I think two main segments, like, above 50% are people that didn't use any CRM software before, so they are part of, like, digitalizing things. And the other half is ones that are coming from the competition.

Moderator 2

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

So it can be like Zoho CRM, SugarCRM, it can be HubSpot in some cases. And we see that these people are like ones that used some kind of, other solutions, and then they want to change things. They want the flexibility. And, you know, the obvious option for them would be Salesforce, but in a way, Salesforce is, can give them a very much, robust solution. But with that, they need to pay a lot of money, the customization is usually not, de facto as is, because you need implementers, you need IT budget and things like that. So I think that in terms of like the audience that comes to the monday .com Sales CRM, it's a bit like that.

In general, I think that we see both bottom-up adoption, but also with the products, we have the opportunity to go to specific personas now-

Moderator 2

Mm-hmm

Daniel Lereya
Chief Product & Technology Officer, monday.com

... because we know who are we approaching. So we can see people like VPs of Sales , Sales Director , and VPs of R&D for monday.com Dev. So I think this is also something that the product has given us, which is a huge opportunity in how we go to market as well.

Moderator 2

Mm-hmm. Yeah, and that you, something you said made me think about workflow automation and the recent release there. And I'm curious to know, what made that be the next kind of leg of monday.com ? And then also, how do you see monday really stacking up against some of the other competitors in that kind of space?

Daniel Lereya
Chief Product & Technology Officer, monday.com

Yeah. So I think as for the workflows, we, a few years ago, we released the automations.

Moderator 2

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Our users took it to very elaborated ways, very elaborated use case. It was adopted very widely, and both in tech and non-tech, which is... I think it's very special. As we go up market, we got a lot of requests about taking this to the next level, allowing more elaborated use case to be formed, more maintenance capabilities, because suddenly you have such complex, workflows that are being built. This is the reason why, we came up with the workflows.

Moderator 2

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

In terms of pricing of it, we do see it as something that we price separately. And I think that in that sense, it's also something that would be more of a consumption-based rather user-

Moderator 2

Mm, mm

Daniel Lereya
Chief Product & Technology Officer, monday.com

...based, like seats-based. Maybe it would be the actions, the triggers, we don't know yet, but we do see it as something that is being priced separately.

Moderator 2

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Currently, we think that with the high, you know, acquaintance of the workflows with monday.com it would benefit first the monday.com ecosystem.

Moderator 2

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Automating things between products, between, you know, different departments within organizations that use monday.com. And maybe in the future, we'll also think about it as a separate thing, product that, you know, compete on its own.

Moderator 2

Yeah.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Yeah.

Moderator 2

Yeah, I know, I mean, that's a big topic of discussion during the conference so far has been whether generative AI is going to be something that's gonna be standalone or integrated into the platform. And so can you both maybe just talk through monday.com's strategy with generative AI and how that's unlocking some opportunities in either the market that we see today and also potentially accelerating other opportunities that you were thinking about more longer term?

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah. Look, I think it's a very interesting topic, and you know, I talked a lot about this. We had a bunch of one-on-one meetings, and I feel like in the last 10 years, we've seen so many technologies come and go, anywhere from you know, Web3 to cryptocurrency, and some of them were real, some of them the world was not ready for. And I feel you know, AI is a real technology.

Moderator 2

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Definitely feels like a real technology, but I don't, I'm not sure we cracked, like, the best use case for it.

Moderator 2

Yeah.

Eran Zinman
Co-Founder & Co-CEO, monday.com

What's the best way to use it to leverage that? So we've all been using ChatGPT, but is that the right usage? Is that the clear use case that people will use? I'm not sure. But what we've seen so far from our users is that you know, they want to automate some of the things. They want, you know, more capability. They want some of their work to be done potentially by AI.

Mm-hmm.

I think that we have a great opportunity here, because to drive users into a third-party website to do things, I think that's really hard to do. To integrate AI capabilities into where users spend most of their day, most of their work, I think that can be a great opportunity.

Mm-hmm.

I think kind of similar to what Daniel said about automation, we introduced that, and people just took it to the next level. We're now introducing a bunch of AI capabilities, and I feel that if it's integrated into where they actually do their day-to-day work, it can really kind of leverage those capabilities into helping them accelerate what they're doing and make them more efficient.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Yeah, and I think that together with that, we also, like, we had a hackathon of external developers, like, building AI features on top of the platform. And we saw such a great diversity of things that people came up with, starting from like, you know, board analytics and things that help you build a better setup of monday.com for your own, and also like many things around productivity. So we really believe that this is also something that is very important for us, being open and allowing others to build as well. And I think that, as Eran mentioned, like, many times, because of the special, you know, customer composition of monday.com, that we have also the non-tech sector-

Yeah

... many times we are in the place to make technology accessible to people-

Mm-hmm

And to drive real work, like with automations, for instance.

Speaker 5

Yeah.

Daniel Lereya
Chief Product & Technology Officer, monday.com

There were automation tools beforehand.

Speaker 5

Yeah.

Daniel Lereya
Chief Product & Technology Officer, monday.com

But once we introduced it in a very simple manner that people can connect in, the place they spend their work time in, I think it can have a huge effect. So we are excited about AI to do the same thing for us.

Speaker 5

Mm-hmm.

Moderator 1

I have a question. We step back for a second. What, what monday.com is basically a workflow automation platform that allows you to build applications. How different is it from ServiceNow, which also is a workflow automation platform-

Eran Zinman
Co-Founder & Co-CEO, monday.com

Mm-hmm

Moderator 1

... but different set of use cases, ITSM, HR, CSM. Should we think about you guys as being, you know, complementary because they're heavy duty, big enterprise workflow, and you're more, you know, simpler workflow? Is that a good analogy?

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah. I think to some extent it is, because, I think what ServiceNow has done, and, and, and you're right, I mean, they're very enterprise-focused, very top-down sales. So in terms of go-to-market, we're very different. We're very product-led growth.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

But in terms of the fact that what they've done well-

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

...is they built a very powerful platform engine, and on top of that, they package products, and it just went after many verticals.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

I think to a large extent, monday.com, we've done the same thing.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

We built a very, powerful engine and built products on top of that. There's the main difference, which is, with ServiceNow, in order to customize it, you still need that professional IT to do it for you.

Moderator 1

Mm-hmm. Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

monday user interface is very accessible.

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

... very intuitive, and you can do it yourself. So I think for us, I see our opportunity to build a business that's very efficient, very scalable. When I kind of look at what I feel is our competition and the companies we look after, a company that builds true platform-

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

... and products on top of it, which I think forms the category of Atlassian, ServiceNow, Salesforce to some extent.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

I think a lot of investor talks still kind of connects us to a Sunrise Market, but that changed. Over the last six months, the more I talk with investors, they are, are thinking about, like you, you said, you know, ServiceNow, the Atlassian, the Salesforce.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

This is how we see ourselves.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

I feel this is our potential.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

And if we can, you know, scale that-

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

... to the enterprise and capture that and the SMB market

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

... and go after you know, more product verticals-

Moderator 1

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

... I think it's one of the biggest opportunities in the software market today, and we're built like this from day one.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

So that's part of the reason why we're so excited and, you know, so focused on execution-

Moderator 1

Yeah

Eran Zinman
Co-Founder & Co-CEO, monday.com

... because we feel like there's so much opportunity we can capture.

Moderator 1

Mm-hmm. How is monday dev doing, and what do you see missing in the market that, that you could go after? Daniel, yeah.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Actually, like, monday.com Dev also surprised us. It's going very well.

Moderator 1

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

What we hear from customers are two main things. The first thing is about the flexibility. I think that many teams in the development world are working in variety of ways-

Moderator 1

Mm-hmm

Daniel Lereya
Chief Product & Technology Officer, monday.com

... and they want the freedom to work as they want.

Moderator 1

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Once they adopt monday.com Dev, they feel that they can do changes by themselves. They don't need anyone else, no IT, no admin, and this is something that is repeating itself a lot. The second thing is about connecting other departments to the work.

Moderator 1

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Many times, you know, with other products, it's only for developers. It creates a silo. No other functions like product, like design, like, you know, even customer success and others can collaborate together. And I think that in that sense, we see many, many cases where aside from the developers, you have other teams that are working in the monday.com Dev.

Moderator 1

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

I think this is, like, a lot to do with the fact that it's built on top of the platform.

Moderator 1

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Great feedback so far.

Moderator 1

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Yeah.

Moderator 1

Are you displacing any of the existing legacy solutions when you do that?

Daniel Lereya
Chief Product & Technology Officer, monday.com

In some cases, yes.

Moderator 1

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

In some cases, we integrate, and I think that we think it will take time to do to displace all the competition.

Moderator 1

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

We don't necessarily think we should do it.

Moderator 1

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Okay? We are not going to be the only software in the world.

Moderator 1

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Just to say, you know, our top two integrations are Salesforce and Jira.

Moderator 1

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

We really believe in being open, allowing customers to choose and also to integrate work, whether it's adjacent to Jira, but also to other competitors. Eventually, we feel that for the teams that it fits more, they will displace as well.

Moderator 1

Yeah.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Yeah.

Moderator 1

You mentioned Salesforce. Salesforce and Zoom are investors in the company, right? I mean, do you have any, do they have any input with you guys, or it's just completely passive? Do they come in and say, you know, "Why are you competing with us?" Things like that, you know?

Eran Zinman
Co-Founder & Co-CEO, monday.com

I don't think, you know, Salesforce is still our competition yet.

Moderator 1

Yeah?

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah, and they're an amazing company, and we're not there yet at all in terms of enterprise. And again, like Dennis said, like, our best—like, most common integrations is with Salesforce.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Both Zoom and Salesforce were investors as far as the IPO, but it's more of a passive investment.

Moderator 1

Yes.

Eran Zinman
Co-Founder & Co-CEO, monday.com

But we work with both teams and we collaborate with them, and deepening the integration.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

So I don't think they see it as a competition. It's more of working together, and I think there's other segments of the market where we are competing right now.

Moderator 1

Mm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Maybe in the future, but right now it's more complementary.

Moderator 1

So when you integrate with Salesforce, is it the Work Management application or the CRM application that integrates with Salesforce?

Eran Zinman
Co-Founder & Co-CEO, monday.com

The CRM application.

Moderator 1

CRM application.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah.

Moderator 1

That's interesting. So you have functionality that they don't have and vice versa?

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah. Well, sometimes, you know, a sales process is usually the beginning of a project-

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

or a process.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

So you want all that process to be streamlined-

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

and you want other people to be part of that.

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

That's a great way to do it, even if you have your sales team on Salesforce.

Moderator 1

Mm-hmm. How hard is it to integrate or easy to integrate with Salesforce? I've heard it's pretty complicated.

Daniel Lereya
Chief Product & Technology Officer, monday.com

It's a good question. We worked on it for quite a while. I think, now the integration that we have is an integration that allows you to sync data.

Moderator 1

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

And in that way, we are approaching the, you know, the most, like, lowest denominator and allow people to build whatever they want on top of this data.

Moderator 1

Yeah.

Daniel Lereya
Chief Product & Technology Officer, monday.com

So we see many cases of, like, integrating the data into monday.com, and then from there, creating visualizations, creating reports, creating flows and workflows that are connecting to the sales process, as Eran mentioned.

Moderator 1

Mm-hmm.

Daniel Lereya
Chief Product & Technology Officer, monday.com

But it took a while, and it's something that we invest in because our customers really, really enjoy it.

Moderator 1

Thank you. Is there any opportunities in HR space, payroll,H uman Capital Management?

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah. So as I mentioned, the way that, monday CRM and dev gave birth, was that-

Moderator 1

It's many customers.

Eran Zinman
Co-Founder & Co-CEO, monday.com

We saw customers using that. So, other use cases we see

Moderator 1

Yeah

Eran Zinman
Co-Founder & Co-CEO, monday.com

... are HR, definitely. Our customers are doing that, anywhere from onboarding-

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

-recruitment, salary processes-

Moderator 1

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Feedback talks. So that's one segment we see. Another one is ITSM. Very interesting.

Moderator 1

Really? Okay.

Eran Zinman
Co-Founder & Co-CEO, monday.com

IT, managing quest-

Moderator 1

You are the next ServiceNow.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Wow. We have a lot, a lot of things we need to do before you can crown us. Yeah.

Moderator 1

Good. We're not going to say that here.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah.

Moderator 2

Well, one thing that you're doing that is very similar to ServiceNow, too, is you are thinking through, like, the direct sales motion and really building that out. And you mentioned 50% of your hiring will be going into sales and marketing, and so that's also going at a time when you've been mentioning that. Well, monday.com, in general, has been mentioning that competitors have been pulling back on performance marketing, and you guys are continuing to invest. So maybe just give us a little bit of an update around where the market stands on that, and how you're thinking about that enterprise and more direct sales motion.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah. So in terms of performance marketing, we don't see any change. Maybe some competitors are trying to kind of get back, but in terms of bids or cost of, doing performance marketing, we don't see any significant change.

Moderator 2

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

So for us, it's very efficient. We capture a large portion of the demand out there, and demand has been very strong. Throughout the last two years, it went out a little bit and recovered, so demand is still very strong. So on that front, we still, you know, very effectively acquiring new customers, and those customers will mature going forward. And the second part of the question? Sorry...

Moderator 2

Both on the direct sales-

Eran Zinman
Co-Founder & Co-CEO, monday.com

Oh, yeah

Moderator 2

and expanding on that.

Eran Zinman
Co-Founder & Co-CEO, monday.com

So, I think in terms of expanding our sales, we do need. We do understand that also we need to evolve there, because we add a lot of features that are towards the enterprise companies. We launched mondayDB, which allows customers to scale, but we need to reach more decision-makers. I think product-led growth is great and allows you to create great momentum, but also, we need to do top-down sales more and more. I think those new products have just opened up new opportunities for us because up until now, it was like a broad platform, but now we know who the persona is. We know what the business need is, when you buy a sales CRM, when you buy monday.com Dev.

Moderator 2

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Just, it opens up new ways to do marketing, you know, outbound, B2B sales, and with the target specific persona within the organization. And something we saw across the board is that, it doesn't matter if we start with dev or sales or work management, eventually, customers will be exposed to other products, and it will be a full deployment or at least almost a full deployment.

Moderator 2

You are seeing customers kind of be leading with a variety of different monday workflows or modules-

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah.

Moderator 2

Not necessarily just project management.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Definitely.

Moderator 2

-or CRM.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Definitely. Yeah.

Moderator 2

Wow, amazing. And so then how does, how do you think about your TAM when, when it's so abstract and it's also so direct and tangible? How are you thinking about your TAM, and also, does, does M&A play a role in here at all?

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah. So obviously, our TAM is huge. It's really hard to quantify it-

Moderator 2

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

-because how do you measure it? Is it the entire sales CRM market? Is it the Work Management ? I think it's a combination of both, and obviously Dev as well, and we're going to open up new markets. So I think our TAM is not something we're going to tap out -

Moderator 2

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

... in the near future. So definitely there's a lot of opportunities there, but a lot of it's up to our execution. So it's really a huge market we're chasing.

Moderator 2

Mm-hmm. M&A or...

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah. So, so M&A-wise, obviously, the company has a lot of cash on hand-

Moderator 2

Yeah

Eran Zinman
Co-Founder & Co-CEO, monday.com

... over $1 billion in cash. We actually celebrated a nice milestone, so, we now have more cash in the bank than we ever raised from VCs or the public market, so-

Moderator 2

Exciting.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah, it is. Yeah, we offered to give the investors the money back, but they didn't agree. So, so definitely, we have a lot of cash, a lot of opportunity. So we are building, like, in the process of building like process and a team around that. There's definitely opportunity in the market, but on the same note, I would say we're very focused on execution and building. It's just so much opportunity out there is that we're very focused on building, but definitely, something that is an option going forward.

Moderator 2

Great.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah.

Moderator 2

I wondered if we have a few more minutes left, and I wanted to see if anybody from the audience had any questions, or we can keep going.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Go ahead.

Speaker 5

I remember last year around this time when we had the conversation, one of the topics was that, for certain sizes of customers, there were still limitations, and I know you promised to work on fixing that. Yeah, I would love to hear basically where you are now on that.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Yeah. So I think, we just, a few months ago, we released mondayDB 1.0. I think this is the most meaningful, thing that we did ever around scale, around performance. Basically, it means that, you know, with mondayDB 1.0, things with the current limits are working much faster, the system are much, much more reliable. And with mondayDB 2.0, which is planned for the beginning of next year, we are also going to raise limits. So I can share feedbacks from customers that after releasing mondayDB, especially large customers with large, you know, large boards and large use cases, elaborated ones, they say it opens up so many new possibilities, and we get so much, great feedback with up to five weeks improvement in loading.

Like, I think that for us, mondayDB is really a new ballpark, so we just completed phase one, and in November, we are going to release also the next phase about faster dashboards. But we really feel this is a new ballpark for us.

Moderator 2

Any other questions, or maybe I'll close out by asking each of you, what's the most exciting thing that you're working on or thinking about when it comes to monday.com, whether we've talked about it or not?

Eran Zinman
Co-Founder & Co-CEO, monday.com

You want to start?

Daniel Lereya
Chief Product & Technology Officer, monday.com

Yeah, it's a difficult question, but I think like for me, the transition into multi-product, I think it's very exciting and it's something that it's a huge change. We are working with all functions within the company, with all the departments. It's not only the product, it's how we think. It's changing our market. So definitely this is something that puts us in a totally different place. But for me, it's super exciting. And also the fact that we are able to execute on it in such great efficiency, with such great pace. As Ron mentioned, we see the progress, and it's above our expectations. So, you know, it's both the strategy and the execution. So for me, it's very exciting.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah, for me, I think it's, it's also the multi-product, but from a different aspect. I think that there's a product we're working on, but also we want to open the ability for third party to build their own products. And for me, it's very exciting because, one analogy that one of the investors used today in the, in the, in the meetings was, I don't know if you're all familiar with, but there's a game called Minecraft, where you-

Moderator 2

Minecraft

Eran Zinman
Co-Founder & Co-CEO, monday.com

... you have, like, this open world, like, those building blocks, and you can build whatever you want.

Moderator 2

Yeah.

Eran Zinman
Co-Founder & Co-CEO, monday.com

The beauty behind it is that the community really took it to the next level.

Moderator 2

Mm-hmm.

Eran Zinman
Co-Founder & Co-CEO, monday.com

The people are building insane things on top of Minecraft, and it's like a wheel that generates more traffic, more interest. And I think that to some extent, monday.com has the potential to create a huge community of builders around it, people that are experts in their own domain, that can build other products that people can use and leverage. So I think the part of the community is-

Moderator 2

Mm-hmm

Eran Zinman
Co-Founder & Co-CEO, monday.com

... is huge, both in terms of the marketplace and extended platform, but also packaging it, for additional use cases.

Moderator 2

Yeah, we're excited to see what people build and how, where it goes.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Yeah.

Speaker 5

Thank you so much. On that note, it's perfectly on the dot.

Eran Zinman
Co-Founder & Co-CEO, monday.com

Thank you.

Daniel Lereya
Chief Product & Technology Officer, monday.com

Thank you.

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