monday.com (MNDY) 16 May 222022 Q1 Earnings call transcript

Good day. My name is Melissa, and I'll be your conference operator today. At this time, I would like to welcome everyone to monday.com's First Quarter Fiscal Year 2022 Earnings Conference Call. I would like to turn the call over to monday.com's Director of Investor Relations, Mr. Byron Stephen. ahead. go Please

and conference everyone, monday.com's for us joining quarter Good to thank discuss today's call year for the on fiscal day XXXX. you financial first results

are CFO. We our co-CEOs today Joining year Eran quarter the released Mann XXXX Eliran monday.com's and earlier results Zinman, today. me Glazer, of Roy first monday.com fiscal for and

best remarks of investor Relations management's There release you that ir.monday.com. could webcast and earnings are from presentation accompanies expectations. on News from judgment section. statements Our our that at our and materials replay factors currently which today may available for on Certain These website the refer on statements. specific be to and information. involve our uncertainties our to the differ under statements reflect more differ based Please risks prepared to materially find forward-looking statements today's forward-looking information the our earnings on the a will Investor Events cause the cause will available that actual results actual results call made

discussed call, financial on Investor available the release turn me non-GAAP Relations to the earnings over With in Roy. be for measures most on GAAP posted will measures the the call. Reconciliations are presentation earnings that, let and which directly comparable are Additionally, today's to financial website. our the call

welcome and earnings XXXX QX day call. our Good to Byron. everyone Thanks

million. our exciting This as Our first first company. quarter an quarter revenue it XX% revenue million a is grew $XXX.X for record $XXX us, a milestone to as represents

ago. enterprise security, investing of as just customers in of and creating customers now of more these for an are our a of quarter. than QX, of XXX% net the enterprise are expansion base new business, Enterprise use companies the in we ARR. in see for teams value our within we governance the logo strong Because Fortune our and with To platform, We product XX% releasing than continue our their our for total needs customers XXX up the customers, with with in segment driving demand $XX,XXX important, requirements. enterprise customer $XX,XXX compliance total customers segment, to growing our during more rate These retention and existing from sales percentage ARR see we from In was XX% address XX% customers including acquisition our up strong our more year a of ago. our ARR these the XXX, represent total ARR. number year dollar

market, historical organizations. our investor for adoption comparisons customers As is XXX%. expand our Please monday $XX,XXX and these among the across was customers than their with to net was over Among potential And refer customers. QX high This ARR customers presentation retention continue customers net all to for XXX%. to NDR of rate reflects net retention rate over to dollar more more we are up rate above the for retention among users, metrics. XX large dollar increasing in go XXX%. usage their continue In above QX, dollar

net marketing in the XX% retention up net our $XX grow retention calculation. indicates. QX quarter marketing average acquisition we also a weighted These first from rate We trailing dollar to potential same In 'XX. dollar approximately efforts million, have accelerated believe new meeting and reminder, a sales is sales our also targets. recruitment these aggressive metrics. business the As over that efficiency by spend increased of successful our keeping while customers, rate We've strong talent and time marketing our been our quarter very as four great efforts

to customer customers. ecosystem partner our serve to our expand As we we in grow invest continue our base, and

one signed largest and local of an are partnership state sell we to IT quarter, public, providers. will more agencies States. SHI help agencies solutions we have federal and work International, North us to excited reseller with America's with and announce This in authorized This United agreement the

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Let our through you to to larger me serve now customers. walk turn it better we over plan to how Eran

Thank you, Roy.

product an of our unique we success exciting own quarter, with with announce the to among product seen new products, products our excited models. of solutions, evolution This OS represent on new suite new our based existing four new are launch and their we've pricing the Work each These momentum customers.

and use manage of end-to-end new, of up CRM address portfolios. products, products with faster aspects cycle. compete address allow monday us new and Work the stepping flexibility, all in are of monday any and year. one to growth end-to-end Customers plan customers built on OS monday.com products vertical to at and top four manage products, Work monday comprehensively sales also products collaborate to the will can designed and specific they we marketer know seamless run, deliver purchase ease-of-use using connectivity, teams to move way, marketing tools execute gradually Marketing monday can more all of solutions products: and sales love and marketer, win markets. their add manage teams products, products. when are product to managers with goal specific track access use integrations monday.com. later and rate processes are Project increase the Those new use with complete dev, case and and to monday deals our Product, them sales same monday become a teams monday OS. creative better and to to use and needs They monday creative all sales projects this of projects to new capture that OS R&D data plan, the CRM. the ecosystem And markets. dev. they products design are projects, We place. Work better existing and the and fully our entire in within time launch connectivity. our to or products to accounts from between That better positioned given one accounts live our to get the within With against customers completely We

Let Roy. turn to back me now over it

in short Thank we've you, see Eran. a to progress To close, period. the it's amazing timer made

a Our per growth trajectory on new the breaking milestone. revenue XXX placed QX quarter efforts growth million in us

monday.com product our multiple company to work rate, of amazing to of we've proud continued our able been Two product vision. of and to a focus Our on across enterprise the product the and and the retention from company. segment single this focus include team a one, to we've We're made drive dedication the globe. evolve continues market-leading our do reasons work

and meet to to to financials enabled needs The coming from second, XX% extremely the quality verticals, us allowed high-level of execution over at continue has I'll cover has of quickly growing and With turn to with across customers non-tech architecture, it with is guidance. quick high emphasis to our us execute our of and now a our needs customers. that, Eliran meet This to the industries. our flexible customers which on agile

and provide joining everyone detail the call. you an thank second Today, guidance quarter year our and quarter full for results review I'll our updated first for to Roy XXXX. you, and Thank in

growth adopting customers System driven broader across deliver to by continue We increasingly monday strong the their platform Operating organization. Work

XX% globally, our we being ambitious XXX is an attributable increases investing quarter, to largest mentioned, growth our representing first million company. the during quarter to up at us past quarter committed in with With on $XXX in ended added Roy year still executed a ago. the to of and first greenfield, market Over past this roles revenue first of talent in X,XXX $XXX.X R&D. hiring this priority. As plan most for top on Total the an surpassed We remains of million large increase Growing the record. and in headcount scaling half year from growing top-tier the headcount opportunity company quarter. with ever and in facing employees, time scale revenue the quarter remain the client and front and employees deals came a

remainder referencing non-GAAP unless measures. of disclosed, financial For metrics will financial the be I otherwise noted, the

have We to financials our release. non-GAAP earnings in GAAP reconciliation of a provided

was remain in margin to the gross medium high million percent gross or the XX%. quarter In long First to Research margin expect to and term, revenue. XX% range. continue was XX's $XX.X we of expense development

$XX of and significantly the will was during This we continue scale our build our We one-time R&D Sales year or the and both System advertising compared Bowl marketing revenue includes expense to quarter. offerings vertically. XXX% quarter. product Operating horizontally revenue Super Work of of XXX% $XXX.X platform invest to million costs and out in ago in as million

scale reflecting we our during As hiring business. some the of our talent employees quarter ability attract to accelerated to the of mentioned above, the best

costs capital As we XX% to revenue our focused scale Operating we have becoming It a as of revenue, loss percentage XX% anticipate We as efficiency. note loss year. increased operating the G&A which company. will marketing loss $XX.X Net to since that on a to was into margins is year share expenses of come quarter $X.XX. public the was margins of have was expense to ago expense growth, XX%. million and million, we negative important was we fiscal down and by anticipate XX% the was certain and improve and negative end 'XX. $XX.X margin reflecting sales improving front-loaded year driven low $XX.X year company, or million per operating and in compared operating remain that throughout the the

the the and quarter $XX.X cash in non-recurring approximately cash equipment was cash activities used operating negative defined Moving used million Adjusted free made free equivalents. we cash in is operating with quarter. and the $XX.X for We and as flow was in on cash flow property the balance Net capitalized Adjusted flow. software items. net to excluding the less reflecting ended million costs, $XXX.X cash additional activities, cash cash and million quarter. sheet during investments from

for turn updated let's to our Now outlook year fiscal XXXX.

be of year-over-year. to we million quarter revenue fiscal second of $XXX to XXXX, our to representing of the range For XX% million XX% the $XXX year in growth expect

We expect million. million a non-GAAP operating loss $XX to of $XX

expect the of range year-over-year. million $XXX For XXXX, be now XX% year in to to XX% to million we of representing growth the revenue full $XXX fiscal

loss negative million a of XX%. operating a margin $XXX non-GAAP expect to full operating to and $XXXmillion of year XX% We

focus will efficiency. With we turn for now questions. growth with business to ahead, to operator the continue over driving me it let in a invest Looking strong that, on

[Operator Instructions] We'll over today Kash you. be taking our Kash, Rangan Sachs. to from of Goldman first question

fiscal how a environment. macroeconomic the the if Obviously around great on environment to And customers the value prioritizing Hi, take software. question monday, monday's as as your recession, Monday. quarter added you just of the are Can see is excellent is you in an in you everybody results an changes any Congratulations this maybe start well. about demand if on the chime on give us Roy, year. noticed on on of proposition can progressed? concerned secondly,

the you you so us give sound just you leverage You and much, how that congratulations. really operating confident to a little color expect detail the can to leverage come year on very to this as unfolds. Can for you more operating Thank business improve as bit fruition?

Kash, thank you Hi question. the for

So I'll Eran will follow then start and up.

we we our we business about our demand are keep ability great customers. a we and where and And and of confident QX of ability a growing. in a lot see to find to terms saw So as new grow feel

obviously the from now unfolding. close -- we're are everything the a is very aware keeping So results watch what's we and and that of saw, we happening on that's macroeconomics

Hi Eran. it's Kash,

why So better. to your getting margins the to question, confident are we with regards about

going call, last reminder, to So do is earning on last as said calls. on the a we're what this the we

perspective from playbook. and with about And we is accordance QX did an if a this So it for spend we sales in think in example, outlier. marketing monday

at back XXXX. QX look you If

retention with continue So we cart. we the invest from the are taking on, in accordance best have, unit that we invested we rates going And headcount on bringing can, into metrics, efficiency account payback time, in dollar expensive, to believe net the we that to now was the economics, record. we which front-loaded that

to we investment this we when will normal we to back together and to benefit margins are and that going going are fact efficient. XXs, leverage all from S&M we mentioned low example, in the going So the script, that improve the in did QX, as back capital that believe that we for is

you thank much. Wonderful, so

from today go We'll Arjun, Kash. William next you, of ahead. Thank take question Blair. our Arjun Bhatia please

a company. a I'm team. suite very recent like Perfect. Thank some evolution the Roy of interesting of the the to suites how in more you the each IT four might these as And in that know, products to envision and create like you've and very suites capabilities about you to that a then congrats use great additional you after And for pricing future, more like curious, like do launched you into there this, much. the Is packaging announced on quarter today? from think go Work Maybe you've the perspective? the seems other for bundle announcement that cases OS room does around product or that adding Canvas WorkForms more you products suite, to, future?

This Arjun, thanks question. is Yes, for Eran. the the

more those we've And very product lot customers, about saw to products. each solutions usage felt to able a we're pricing them we four that makes to separately it mature launching as on this ability solutions. Like having a Work those benefiting company product make as to will of one continuing to really excited OS entire a of before. features, on specific we're the forward. them. our you've them invest So new forward, And the proper also onboarding products lot that mentioned, products have from dedicated the done different them evolution first the way, our pack of is a a one. more those give is sets to package in our all, company But more as all offer have a sell and demand for what feature also, and while we're independent run take one, solutions each deep, in that those of company fact of specific platform. and Obviously, each from and us sense to we products for going lot We capabilities, an

it's strategic. us, for So very

of the the previous meaning WorkForms terms In announced and that products the the other Canvas. quarter, we in

separate we'll products to, your if that and know, two independent you those continue them customers with are pricing, our other and to this of our answer those offer platform So are products separately question.

perfect. Yes,

helpful. to? are that's up ticked What NRR also are XXk attributing for was healthy. had the net enterprise the higher. little driven And it's quite more. you bit you quarters the it you little Is to retain that I ability a a just year hear have that very out a from better, bit think it your then more bit XXX%-plus, to very at I obviously noticed uptick four last adoption or wall-to-wall We Now customers of drivers maybe disclosure rate from called where that ago. But love retention

[Good, Arjun], so this is Roy.

is something segment. that is there about while shift talking been like business when So constant this the we've for ago growth a the few see years added we our that team within enterprise a we've in a sales

metrics customers, company companies the We The as growing. growing. each see have also, within expansion within we've more their we those disclosed sweet in we always is have spot and can are

a that a more like expect to we also security, that of of ways customers. invest and enterprise stuff respect, that it's in lot like lot segments. enterprise lot will terms into more that we continue growth And, something product our All markets customer a those and in of adding the or and opens like those doors. should So in the

Perfect. That's very congrats much, you Thank and again, very helpful. guys.

you. Thank

you, Thank Arjun.

Our you. from JPMorgan. next Mark to question Murphy the from Mark, line comes of over

a great very also add start and looking line year. top you Thank I'll the and my a congrats healthy much, on very to

systems of earlier. monday you Europe, perhaps more any it's sitting following U.S., all, process X,XXX of of We're is of break Because on revenue question seen? like point? I there's feel then companies when largest a a can specifically your kind footprint? confidence just any all customer Europe? ceiling, that through First larger this software even outside the landing secondly, overall in you either sense is or provide you than Kash's business growth half of might degradation have is, basically in and many Or for other at produced as pipeline new at have it if at expansion question go wondering believe into deployment an And you up sight line through Do with feet.

it's Yes, Roy, you, then other thank Mark, let take one. Eran the and

excited our customers, see see and you we're like number in solutions growth as offer mentioned about we're, we the more can growing, we them. sweet and really approach also so customers, And of spot the widening more to enterprise, in the I and the of depths always that

major company. I the So like great focus have in think area we know, definitely And a you also for results NDR.

it's Eliran. Mark, Hi

right comparable now, overall seeing company. are unique nothing elsewhere. are Growth Europe of in So, the in as rates Europe to we or

customer XXX,XXX have largest mid-term. for the any and in earnings, base kinds we this to of than of SMB our don't a diverse across Therefore, number geographies. good companies we because industries and continues best So is grow, all of very softness the to And news see in we serve us. customers global more sign yet

maybe this over And And come would business add more of one non-tech is different Eran thing from is XX% serve that, XXX customers our verticals. we Mark, companies. still I

a So we customer diverse very have base.

as specific not factor specific we're trend we that or result that So affected a any by think. any of

Thank you very much.

Mark. of go our question you, Berg from Needham. Thank please We'll Scott take ahead. today next Scott,

taking maybe about but I acquisition should the bit my Ron's about think Hi, necessarily I like? Thanks everyone, commentary qualify total one guess how was Can in report on think quarter-to-quarter questions. what of little you don't it or accelerating congrats customers. that new first acceleration was I quantify know you quarter? that help statement quarter. new we for a looks customers

Eran. Yes Scott, this is

how comment in everything, very more and just QX thing we we increased year efficient. every given the a sales is do investment one that, very the we we remained But huge have that marketing We click Eliran new customer our huge you give for company. that part throughout. can maintain And some acquisition color feel the customers. customer acquisition new this this And right managed this high our to that our to forward as efficiency measure to quarter. is we've plan every opportunity kind thing is indicator costs. and So as mentioned best going acquire and playbook I and expense think this we is of us our is a of

remain scale economic, we've as managed unit strong economics and to our efforts. very So our marketing efficient,

is was your scenario. a some relative should in Got it commentary it, there think think is of Is customers? helpful. similar that motion about And guess of know How count the and any of I it's now XXX your the or might the customers of today customer. purchasing I you're follow-up or yours customers how seat different acquire smaller a how smaller is I buying be from then noticed larger have perspective, we historical purchase Fortune those you to products very they XX% some than nuances

Roy. its Scott, Hi

the alongside think I partners. growth in we we adoption close in have see shift so those And enterprise, a

land all, of of vast majority we expand. a then first small They expand So and over the account start customers with time. and do

every always we another for we expand within open deal. door Meaning So base. have like is an deal new our customer

You can NDR. see in that the

one. Okay, so that's

larger on solution two that expand Hope so the and time. even, we happening it's and see like like more, that's in and On bigger all years they think they deals more we customers upfront faster also the trust And helps. that's grows a starting. other a understand brand, like see side last more trend happening top-down of we okay can deals a the as do monday start as those as I been

again. Thank you. much. Congrats very Thanks

Thank you, Scott.

from you. over Brent to We to now question Thill move over will Brent, Jefferies. of our

is questions Brent Thank two products. Work had new for I on John the you. This Byun Thill. OS

mean, SHI. making the and like solutions guess does you're into partners We know, how's this best versus G&A. that know I sector, Thank you going of second your you're timing public more half your maybe push there. compete that partnership, to and with, featured, on of U.S. wondering, And a you. mean the presence breed today? on then out you is, full bigger you're Just some Does integrating the saw

Eran. is this mind, don't you If

first Just the of repeat up? you the were question part breaking

Work products, on new breed you partners solutions OS this of capabilities, some that how integrated do compare Does and competing they best availability? with mean any terms Sure, of of timing update out in the on for the versus versus more general there? you're

it's thank Hi, here. you, Roy

into enterprise them, with So it doesn't like, integration competing enhancing know, this And other ways. our that. well America. companies, yes, you partnership the actually we and I into know, We see quarter, SHI customers we're into many opens integrate of solutions. Salesforce inflation. we're door mean that we're Those a large -- about workflows, a lot really like for And don't enterprise excited of with also the lot in actually like integrations in deep

you. Thank

Our next -- question

missed we of think I question? Yes, the the part second Yes.

up breaking the you're Sorry, second question.

Thank please. could you If you. repeat that,

prepared I the with think lot in sector. do they so that U.S. you government Yes, remark a mentioned

public I'm industry? a do wondering, today in mean does sector? you have And that making bigger sector into push So that you're U.S. presence meaningful the or a

Yes, Eran. This is you. thank

only, us. you very the So strategic with is that know, partnership SHI new for

and larger more specific this is for sector definitely us. we companies very enterprise As to enterprises, you interesting go know,

partner our North of sectors with of So, a and And us, of more this parts local to strategic a for America, companies. our to in focus other products available government customer is part this very be and allowing more strategic lot working is on base.

invest So the we're into to going resources more definitely, to future. that going

that. for you Thank

Thank you.

Thank you.

comes Brent Our ahead. from Brent, Bracelin next of please go Piper question Sandler.

why to seeing bit little here understand see that up? substantially all just all much shift Thanks. Maybe here Maybe can just Eliran. metric the surprised about its of move that start this suspect Thank but you The with function mix I'll improve that so to here quarter, enterprise, retention talk has little that prices you. a a all, to you're sequentially? I dollar users increased trying across continue a is but to net just churn enterprise. at

Eliran. Hi it's Brent,

this invest talent. are that, to you because in very on are is why And R&D Obviously would say first, focused thank question. products. So I the we we improvement and are handling innovate we continuing our for product seeing

of reasons the expansion. So for one the this is

Second, within customers. to existing expand is our ability

value additional to product introduced, seats the the we the unlock got they once I with regards of of -- know, of point, to number that that numbers monday product a verticals together we with would horizontally. the to number solutions solutions increase You the and this they expect continue really XXX% and is I are for customers to improvements, believe we few above total XXX% stabilizing, potentially above going industry this enterprise. we best kind rates going over be to is point in see to to are we see basis but these believe of and the a time.

sense. on So of use following marketing, it guess, I for projects, use monday Thanks. products would monday? be of those products. kind of fastest-growing monday it the the makes case That be Eran like you dev about helpful. up seems cases. the could use Intuitively four the cases, maybe four sales, is would talk bulk which But

Yes, you. Brent, thank

all, excited reasons we're of on to of demand. a all sell So lot is those four first about we that of the part that focus four we

but well. that really also marketing see sweet demand but a cases, use has management four We really the for many lot obviously, in most potential. would sales product developer of in of interesting. see the product, we very us, for it's our out stood CRM say lot is products the project monday use a those spot. I And customers our as Our traction

But those into products still of one of the They of momentum our are see account. of didn't those. we say growth in a planned take we when using would a see each model, them. customer in I that a have we lot guidance we lot kind of signs our and new a definitely, of to of So each and one do them. lot we customers and very from exciting positive feedback lot

of for for very So us. those excited future we're the

add. Hi something Roy, to more I've

said. I'd So add Eran to what like to

next on So fact is anything special monday the you want you build can of what it. that top

each that's products. also So these of true one for

on if Work whatever top all really it's platform, adopt together and have one together the you of build and all because of one work built them OS. also you want one, you well each connect them can still it's top So on

something So else even customers I top understand other want, products. still on that's of They think when them. all are important to anything the of adopting do can they basis now

Thank you.

Brent. you, Thank

to comes from Our Andrew, next over Berenberg. question you. of Andrew DeGasperi

question just provide. I you to had everyone. Hi, a one the of Thanks. used terms in metrics of

sequentially And users. just Just of comment. over any if a that had anything over if that this you've deferred, you quarter. bit. the increased ARR add just provide But terms how wondering of to quite percent then your kind XX of know be there's XXk. larger secondly, in I Anything I to it gave was of that wondering wondering from added trended, the would you you appreciated. deals that sort bigger could

above Hi Andrew, this customers is was Last regards users disclosed, Eliran. we first XX%. improve. XX-plus continue from With the share with to far your question, it time so to

our total I you as enterprise and So more the and of us in customers together improve ARR. buying market from to continue they are tell than of are -- are customers can we ARR pro becoming part going up meaningful that XX% that coming accounts, with our enterprise more see this is trend use.

were trend make second asking a were moving to your about just forward. asking sure billing about. you So this see definitely that is With question question, you regards calculated to what continue we

was Yes, that's it was really -- a sequential It right. increase. about

Yes.

the increase while we -- So growth indicator very it increase, our revenue a that business. is we are at the leading happy with quarter calculated we versus look is rate, the be but sequential billings of a more saw number is this previous with of there customers. going to billing a fluctuation net growth, usually calculation We leading said retention one. Obviously, in dollar definitely indicator. of not past This

another marketing. add sales And one, I and if That's helpful. may

wondering increase. secondly, front-loaded distribution you do where pretty it Is the sizeable terms more QX. a quarter? I U.S. headcount this provide obviously this had headcount in Thank is? or mentioned in that data You little to you can mostly we drove of maybe regions? was what you it mean a I just of And you. other

Yes, is Eran. Andrew, this

to increase spend. in color about just So you more give the

which Super about it of $XX million the So mentioned to Bowl million was advertising, quarter. we $XX previous

roughly say, is would Another increasing $XX our I million, headcount.

keep people, usually in [indiscernible] next So unfold around an previously, and performance marketing. in force. support the increase give-or-take in a for market success, of increasing QX, would managers, terms in And But acquiring few to terms But sales sales strong is which Usually as hours, terms the unit I've marketing two the in the accelerate in on we hiring usually same quarters. And economics an effect while in efficiency the customer keeping QX. us, of QX And of performance forward. new so will mentioned of like power we and managed increase for rest saw this customers. opportunity. we demand the acceleration it's to our sales our was -- great customer of scale there's opportunity continue to you

we're in very performance about investment terms happy of So marketing. our

I to of I been and history look doing add, we it each year, you year. company, ratios. throw like, metrics the at if last And the that, during you compared this we've January, know, efficiency same around can the and know, kept you

we're with So it. really happy

headcount to to this maybe -- is Eliran Andrew the add distribution regard we hired. that the with just And of

hiring With to other combination of of in we resources, places the a hired not So of growth business Israel. sales to marketing Israel U.S., around London, there. of world. Israel, also regards people sales U.S., [indiscernible] managers and the outside the and outside we're Sydney, and in the It's both in continue enterprise

you. Thank

Andrew. you, Thank

question. please with question Oppenheimer. of next your proceed Iwanyc George comes Our from George,

question. my taking for you Thank

So the specialists any and following comments, on the Work up focus go-to-market changes with on or anticipate to you more sales work, do new products, verticals? OS in your either maybe motion layering just putting of introduction sales particular the

it's thanks hi, George, Roy, sorry. Yes, sorry,

And so -- we're

this this, take Eran. I'll is

Class definitely, we here opportunity, because to Disney audiences, specific mainly terms market allow in those customers. go-to-market for to products so us World a specific of huge our products, So see and

So to specific adoption this to audiences, on targeted just targeting allow eventually, better we customers company the well. a can products having independent a of mass OS see have and customer here. as vision is we seen specific you have new already having lower part those work more know, the marketing in to resulting expanding costs, us signs and about from those of big know, we with. use working Work broader acquiring of and, those of early We We broadcast of more opposed to with use acquisition audience opportunity case when a to our see the will the like platform. what talk more company that as terms have time in already Over To you start that customers. the whole that cases more as

better onboarding, products. of more this excited it within to have the we're an only us part expand potential Not efficient, about to allows go-to-market reason organization. those So and so more a is but new that why

not Roy, Yes, this it's it's that wanted that them. we like new And see products year you released, mentioned to a to we long Eran I like change. only it's areas. those like something add, model according didn't as know, term, we results these all into a gradual from this

in are any following greenfield the competitive changes up just of you individual landscape, to customers? kind just or way multiple dealing the vendor Are opportunities? at with with you landing maybe any seeing broader mostly changes And products -- into you're displacement, on relative you are seeing

so is Iran. Yes, this

greenfield, the of terms a which to same we kind competition, the environment it huge that of we we've and of still in acquire the our opportunity, saw So XX% customers. before feels new ability see no deals,

of a getting acquisition, some that in of other are customer products, new mentioned, see. but still the in In growth to by early It's see those go-to-market. existing of doing what competitors. and is releasing from terms although kind days, each in see, limited, dynamics of This of terms of efficiency the already opportunity we as lot categories definitely and but we are products, them, terms I've and one profits we those

you years can that, we, I that add emphasize been know, we'll two those to for four last the have segments. and Yes, marketing exact

Okay, separate it always what but a confident forward. packaging we've in monday of know, that we're so now feel solutions doing step had customer another product, adopted, of evolution we'll this is as you in, going very those

much. very Thank you

DJ, We will move our from Hynes Canaccord over ahead. to Instructions] of line [Operator now George. of the comes please next which you, Thank Genuity. go question, DJ

morning, Hi, good guys.

on Is remind question you is at question that or are threshold? it my sales guess Eran. I of me metrics? spend looking the internally you to trigger engagement? the use one you direct guys Like Roy Just usage Can signals And end, just sales the be in impacted I it would direct Does in touch? given Like make that? seeing largest direct the you how is your earlier even beneficial? favorably but strength about assume you're by cohorts, funnel sales think which engagement think you do

role adopt bunch because that the Thank the monday all we've usually up. roles, that way question. we whenever details, Thank mentioned, the this of to this using the the party up, final customers see different monday a accounts way process and large is The company And signs companies, for customer great their information. ourselves, during have that enrich about is different they And within started like want. works also, Eran. sizes, is that how grow. all bottom Yes, company. potential so you, Using and in is to we And we're from classify that positions David, DJ, tools deployment customers using question, you company, a customers we all size, information a ask third algorithm

short customers. see once using usage to the we basically, which it's then monday, usually or because with engaged know, And end, the the a customer a people potential is within future in leads grow the with all account, that team a the account we sales is expand to with happy top engagement well. XXXX already process, a cycles it's sales as say, And let's to So and cycle, different more, and try product. you sales paying to more

you I've that So it. motion see. described is we change much about question have Any pretty any way the the

create motion, a to see strong BXB to a of of a definitely an outbound that. So we We on where we can create mechanism lot see strong opportunity we opportunity to top a opportunity executives. see senior market

So a we company also invest as huge we a definitely in. which that's upside have that

in opportunities sales are more and we all team. in So acquisition, fronts of for our terms customer investing creating

for the color. you Thank Excellent.

Thank you, DJ.

Derrick, of Derrick go comes question next please from Cowen. ahead Wood Our

my taking for Thanks questions.

You guys keep announcing some new SI Partners.

You've from channel year? you talk just what seeing mentioned growth leverage kind are SHI, kind incremental the of and you've mentioned you're partner and expecting the Qualcomm of Can about this attached?

Hi, it's Eliran, hi Derrick.

time. the know, takes of larger with partner, on long the those and putting we I the a of bigger term, lot obviously, true something know, that you partnership very significant partnerships, they that the them adding on see and bullish have is customers as is we results, emphasis the it. a you is think And a you address. more flywheel we're mentioned, And we're So them lot that

a value a partners because of one. partners, to see as add customers we especially of that So in a lot lot they large true the ways

we a for so as strategic And definitely see company. the this

seeing know, increases? thinking of Got products it. I you rates, expect you. the and wanted new price can about you change pricing, we inflation given we're kind pricing, changes these other guys how price of are to Or, about coming vendors launched? ask too, what Thank being out potential

Eran. is this Derrick, question. the Hi, you for Thank

So the basically, with start product. I'll

and So new products, those that's have industry. in to each But inflation. the on the depends terms one macroeconomics the for do intend regardless of we different of pricing products of

from go-to-market each and more one expect what about people those products our segments. So it's of

and to and very we that's anything prices. to don't But we plans inflation so closely. reevaluate have continuing we everything go. specific But any raise currently, changes, of terms we In we're as monitor if on going monitor

Thanks. Understood.

Thank your of Davidson. take Robert, D.A. Simmons question. proceed with please you, We'll Robert question Derrick. our next from

then there, monetization guidance contraction can from does includes plans? on contribution Thank marketplace? also you. update Guys, updates you on seeing the us the Any the any And annual you're marketplace?

you Robert, for thank Yes, Eran, this the question. is

marketplace within is the that's payment Last our quarter, us definitely, system as we very for own company. something we important scaled released marketplace. So the our

can see apps release results using good from developers platform. new to that numbers you So basically, payment to give we monetize just But very their app our release. any We now attached it. the sentiment,

that higher new using system. are developers conversion see to app more customers applications, willing payment rates, New pay like create that

to it's being And use consistently huge the something numbers continue we developers that also on quarter-over-quarter. of application marketplace. our number up made definitely of So and impact And a going within invest created. going up

has because invest I of So the product a numbers. of it we going forward, still much impact that. it's our yet, has continue part revenues wouldn't is as small potential to say heavily on this well. lot big into a But

it. very Got Great. Thank much. you

Thank you, Robert.

is follow-up Sachs. from question Kash Goldman question Our floor a Rangan the is of yours. final Kash,

even me. so and you better progress. just as Could from you're curious, capacity get that taking heavy at starting thank much given plus you Hi, metric my customers expansion duty just sales I'm already XX,XXX to you net That's rate that started hiring question. for XXX. see it this

the Eran. is for This Thanks follow-up Kash. Yes, question.

see know, with lot We those the much is having customers scale NDR upsell have going I metric this that definitely super we released going stabilizing, quarter you So we're accounts releasing grow. that still of but a we first time more would metric we'll And to over happy them. to quarter-over-quarter to and our keep say have that it. to opportunities. commit forward, have we're do more but this definitely room

expand new a products more opportunities WorkForms be to the with going to released, our they're and products. we've Canvas, that and Now also usage the with other

this go to is best-in-class So also to is numbers, when in and companies, to this we benchmark NDR for enterprise it but invest right customers. that now, up those definitely as continue number compared there's potential other we'll

open. is still your Kash, line

today. you our question Kash. thank last Okay, was That

like the we you lovely would you we So and joining call, to by for of thanking a rest your conclude wish day.

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