monday.com (MNDY) 11 Nov 242024 Q3 Earnings call transcript

Good day. My name is [ Ezuri ] and I'll be your conference operator today. At this time, I would like to welcome everyone to monday.com's Third Quarter Fiscal Year 2024 Earnings Conference Call. I would like to turn the call over to monday.com's Vice President of Investor Relations, Mr. Byron Stephen. ahead. go Please

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

monday.com; Mann Joining are and and Eliran Eran me Glazer, Roy Zinman,co-CEOs today CFO. monday.com's of

third for today. our fiscal of the released XXXX quarter We results earlier

our our webcast You News under can with & find IR a and Events shareholder quarterly presentation our of website the ir.monday.com. at replay along section letter investor of today's

forward-looking and results statements, the based results on statements. call specific may expectations. be to earnings that our best information. today made Please cause cause from our reflect statements forward-looking differ judgment the our which factors could will release on These to Certain management's from statements uncertainties actual available materially more currently for differ on actual refer involve to risks that information

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

the turn call to Roy. me let Now over

financial development. Thank by another fresh retention and QX, strong in for and highlighted you, product performance, strong us off today. quarter trends, robust thank you, joining Byron, We're improving everyone,

a software we momentum. X not quarter is and is XX% journey, in just annually management, across management CRM, there we significant substantial company's work market opportunity are a a annual growing development, ready billion pivotal build This also It's $XXX of to in on that billion and over addressable With milestone markets: ahead. billion our milestone a total service number. as surpassed recurring $X $X marked for monday.com ARR revenue. Reaching moment the a

presence. and we remain next increasing our global expanding our stage deepening drive To offering product and our to committed growth,

keeping not evolves, of investing fostering by monday.com its are is shaping new landscape determined we industry, the technology, the work with of in agility. and the a pace ahead are stay continuously culture just of future. As to exploring we curve markets,

to turn cover I Before like our in changes I'd team. few management a Eran, it over to

First, over Adi of already experience our XX appointment the since significant we in companies. and executive joining months tech expertise Dar a impact few Officer, of with Operating team driving to made a are pleased as sustainable global to brings Chief ago. growth announce years Adi strong us has

VP like Marketing partner channels. On the to joining depart has end Since XXXX, Chief would and share our and Officer, our the as been December. at a CRO the Revenue note, in different Sales Yoni us has CRO becoming that sales we of that Global he role informed developing and in Osherov, XXXX in will instrumental Yoni

million During Yoni's growth tenure over we $X from increasing to remarkable with ARR have seen $XX billion.

endeavors. in future are We the and wish his for grateful deeply best him his all contribution

are We successor, CRO appointed. search conducting continue he will an global to and new for serve until as the is Yoni's a adviser

me Let to Eran walk over for our quarter. of some highlights to product you through now the turn it

and Sydney. us. user place Elevate, City all year's was ever you Thank London, you, from This Thank pleased with to to attendance recent highlights who I'm conference, New to share largest which last doubling our event joined our took in compared flagship year. York Roy.

Online not invite to person, attend could you participate X. Elevate who those in For we in December on

monday latest customers blocks Our AI, innovations. product needs. tailor year building to with business specific that platform which showcase Elevate provide us AI our include Conference can to no-code a their This featured we

AI the We use remarkable XXX% report are of increase initial in with to adoption QX. since strong blocks a excited

monday functionality Looking be platform. will ahead, throughout enhancing our integrated the across entire AI product suite,

within teams capabilities behind collaboration teams. e-mail will vision campaigns to expand product, Upcoming its CRM, monday functionality, across various directly our to enabling marketing features largest We also CRM. highlighted our fostering monday include manage revenue sales, their second and

excited to monday our product, demo we're at Elevate. Additionally, Service latest

Although potential, end for the XXXX. and cross-sell release shown on track beta, still promising by has of it's in Service monday

offerings we for As support customers' work. product committed to our a scalable building expand our are and growth, robust platform we

With of with X.X X.X live. the and next iteration is a all allows dashboard and items XXX,XXX about mondayDB to scale mondayDB announced up now linked and Elevate, we boards items. million items with is

of Lastly, count significant second to our their their we pleased enterprise stack. and from consolidate the simplify to as report increase Work technology gain XX,XXX the increased XXXX. since This with In represents receipt count Management to to are customer, in remarkable seat QX, that continues monday largest X,XXX traction customers. part a XX-fold initiative

that, over to financial and to now guidance. With Eliran turn our cover I'll it

revenue Thank for retention. everyone you, improving QX quarter call. monday.com our another Eran, and growth for solid and with and to joining thank profitability was strong you

We for billion growth advance that into stage December year on next pleased be case our to the to our are our Day. fiscal ARR, surpassed of $X in above target the 'XX guidance Having at leveraging now focused base are on momentum is company. Investor outlined we

QX came in revenue 'XX to the XX% NDR Total year-ago in XXX% $XXX million, increased at 'XX. in Overall, up quarter. from QX

be through of We to end NDR the stable expect the year.

our As trailing X-quarter is average weighted calculation. NDR a reminder,

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

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

'XX XX% of in expense X% compared Sales 'XX. or to or was $XX.X to to In in in 'XX 'XX. XXs was administrative million gross 'XX. $XX compared compared expense XX% the Research revenue, term, 'XX Third margin the $XXX.X revenue, continue in quarter XX% QX to QX XX%. range. in QX marketing XX% expect QX revenue, or high long million and development and in we and gross X% of in to margin million was remain General was of to medium QX expense QX

QX net in $XX on was XX.X QX million outstanding. fully income in Net 'XX was 'XX, diluted share $X.XX per up million million in $XX QX income from 'XX. Diluted shares based

count of employees Total XXX head an employee X,XXX, 'XX. QX was increase since

we product 'XX on continued year build our R&D suite. in by out mid-XX% product fiscal platform focus and as We increase with our to expect team sales head count and

was equipment capitalized is to should cash by cash rental new XX%. cash billion software of equivalents, It cash office approximately cash a as be was $X.XX flow from onetime our incentive flow at balance cash with ended cash impacted was free cash a operating Free 'XX as revenue on costs. end cash and of flow defined the Moving for noted flow. from the in margin as activities million, for free and quarter Free free cash for $XX.X of London percentage as and property and used and up the billion the sheet net quarter agreement. flow We defined that for net less $XX $X.XX QX cash million flow QX.

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

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

operating to operating to and We of of an margin $XX million income $XX XX%. million non-GAAP expect a XX%

free million margin We flow flow XX%. to of free to $XX expect cash and of XX% $XX million cash

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

operating XX%. $XXX of operating $XXX full year an and million to non-GAAP of to margin We income XX% million expect

XX%. $XXX million of full cash year approximately million and free $XXX free expect flow cash of We to flow margin

questions. to the it me now your operator turn for Let over

Goldman [Operator Sachs. Naftalovich Instructions] from the comes Our line first question of with Kelly

rate Kash. on for I $X billion on if questions may. mark. run reaching the Two Gili Congrats It's

broader larger an we the whether customer your any in how softening in we adds, with seeing changes engagement NRR, competitive As supporting your can and customers of share see cohort is environment? net you're demand a inflection see you new monday's evolving or

Eran. It's

First mentioned, results. of we all, as good we retention see

gross also at level and improving historically. Our NRR record retention is our is

overall, see larger with So customers. retention small we better and

our part strategy that on do of bit SMBs we We see customer large also adds, price and increase focus less not our little that's but part on a enterprises. but of just

previous to overall, So everything, also of see quarters and demand we [indiscernible] I steady in adding of customers take in customers. be retention on terms if new always

is customers sales I we and CRM that product we is momentum thing, add also introduced, cross this continue that Service, sales. to to customers more Eliran. see with add you Gili, additional our in Service, new between Maybe new and will potential with our existing the that one

about uptick expansion the in backdrop expecting as XQ, this think customer thinking well we're we in about your initiatives second especially growth as you hiring what mentioned when that we of and you quarter are in just largest land, And how saw the an that new Perfect. saw expansion the that you there? larger versus that

This is Eran again.

and So is hire within the more lot see customer lot because that demand a of opportunity of our we base. fact salespeople own a basically we

sense XXXX. towards makes it So growth for building

acquisition our that of grow and remains into and buying customers and And our as on confident pretty a as adding the as revenues like we're again, business. that So investing strong upgrade that more plans part well. well. And products for the bringing more lot we a seats, we're very coming growing more from but existing as XXXX they customers and engine

So I expanding to stable. our new both acquiring original customers, would it's and demand that looks according existing very say the plan, customers in market and in

of comes JPMorgan. line question the next Our from with Bora Pinjalim

Service of seeing So in actually opportunity you Great. the CRM beta, it that product might still cross-sell. might It come realize bigger half paying right? is than customers think seems cross-sell faster a versus like service from And do CRM? and you're think for have much you I

It's Yes. Roy.

mentioned, is, still cross-sell and in So great opportunity early with like we beta to do very see stage. a It you Service.

up see we as a going revenue part how let's huge next as we potential soon to of growth something not say, is tell measure a do significant it's CRM. like year. Too it see So our, But it to compared forward.

ask it you customer is a the seems in of follow-up. Okay. like much quarters? as And on Eliran, segments. largely maybe corner the that uptick about an well, broadly, just Understood. several cross-sell? next Maybe into retention seeing that but the seat the net due uptick, to talk wanted turned like versus from I metric It as we large you're seems is look mondayDB has how as unlocks

Pinjalim, Eliran. Yes. it's

I expectations. are pleased a be we if think which of XXX To in with that expect say also to we question retention go across market. getting And up we in is impact year, it's opportunity of again, I to record the to broad-based result would to all XXX around foresee NDR. ahead is XXX%, also it next we It Potentially increase basis And point price fact so be for that QX. your to continued stable going the turn customers is continue going the our So of our this into improvement largely points. increased gross with high. year. This the to fiscal

Bracelin Next the Piper question line of Sandler. comes with Brent from

that you're again. know I you'd GA? like But product it's that wanted to parameters milestones what released? I X base beta. And What the quick touch before kind a key order see to follow-up been on are of then successful to that's on to in the key for looking service product are hit last pretty guidance.

Yes. Brent, is Eran. this

like product to the there's customers, a So our that we're see one, especially want about there, it opportunity of bunch huge that, the from to like that features can planning customers, them launch. very but Because within ones just customers. smaller because also scale customers. enough make mentioned, Eliran larger sure not existing finalize of so just official we're It then is midmarket excited before that existing the enterprise the to there's we our also mature Service. feels that and and cross-selling a we product monday And

the them product. and also AI functionality customer where portal can people create tickets, into we One that the some of added is

the the feel we're customers close release And very good. is of We launching to from that that pretty feedback full product.

very already There who customers of excited. be go-to in use a the and strong demand seems reception great terms product. to we're also overall, from So market,

been you consistent here, for XX% kind of to year XX% How Helpful. And guidance frame here? consecutive just demand then, pretty forward going X here year-end would the the all now. outlook Eliran, into quarters

Brent, -- it's So demand development Eliran.

are has been going of to I heard see based segments. momentum still what better broad-based. very year from other We But would still into signs companies. we SMB expect As It's up development coming some to and be some getting move continue slightly Eran from there in on stable. choppiness next said, market. demand strong it

to I say that there a a to be want would dramatic we change our -- don't of you I some in into is going choppiness business, combination going momentum going next a on market. see to So strong but there's it's year, be tell but

of MacWilliams question comes line Ryan from the with Next Barclays.

on follow-up question. Brent's A

use estimates Just increase into our think any next we we continue our price we starting As for and to year? to the from models year as breakdowns growth? the into XQ can point? for ] reasonable think next maybe should year models our a about things any next look Maybe [ at about up for as early XXXX, we building insight all

year 'XX with So upside continues of we price we that opportunities But going increase the the with guidance to also fiscal earnings see be next Service, with as to give that are year. will that call. cross-sell part we the next with fact we our optimistic monday remain year did, potential momentum some good,

Excellent. this then here, decline seen have point. But a process guys some with capabilities? like acquire M&A product releases. sense has And you the on strong around changed thoughts new really your to Just wondering if development that at thought any bolt-on AI maybe

Yes. is Ryan, Eran. this

that reserves we try definitely, that that have yes, an definitely looking M&A we're have to opportunities. We're constantly and and we company, one, that the But for we we opportunity the we monitoring explore opportunity. team. a market cash looking given definitely Once So well. into the as have the as find right

from of Jefferies. line Thill Brent question with Next the comes

leaving, ultimately as is, it but Yoni's the in, to through transition of past to a us manage perhaps that? how With what big or maybe sales you in sense settle you're some going give turbulence, confidence takes just talk time can this a gives isn't of it and you transition,

Brent. Yes,

So Eran. this is

of role So adviser pretty as a in Yoni for until candidates talent to remain will able out company the end there's an in basically, near and until We're confident replacement find ] then his great CRO. new be will future. he looking to We're a we we'll the the globe, in lot of a for year. company that there. And the the stay CRO [ find the across

-- our plan. CRO leadership management doing and And We leadership transition and got as covered organization. orderly an we're everything got of in great part our

we're for will have plans XXXX. we pretty So that confident remain things ambitious stable, and

quick as traction? we proud give update whether then you head a mile the markers into what's of, year next chapter the CRM What Great. with you're can and kind of And -- us excited cross to you just that are on next CRM?

Roy. It's

notch sets, So the looking to and a like to support and we make the Part within announced sales CRM, in are of we we're like process much is large terms up it business facilitate AI areas also scaling many of of and robust. infrastructure data to always it like approaching. that really scale sizes faster adding

keep strong it. for growth excited us, CRM, remains super about a we're So very in area and investing

with the from comes question Next Ader Markets. Capital line of Jackson KeyBanc

motion. kind The is trying up go sell Can looks rounding of teams might we and all over this change leadership like to on just kind first bringing across be curious that purchasers? organization changes then one typical high-level just what might of together? net rep in And role sales how I'm organization. it the motion that they Is the like? disparate them that new monday an using Are into with

Eran. is Yes. Jason, this

use customers. mid-market on AEs that that significant each the cases AMs, to So have We're AE built have find one the that. focused we and very organization, interest broadly, or converting and within on new of those acquiring is they use are go-to-market, is on products. to SMB, expand existing in different enterprise expanding sell planning meaning additional up usually we which is And in segments, sales the AMs. do teams part general, have the then customers. buyers them focus is And organization or our scale case of and using organization businesses sign different an either the What new platforms. additional that or focus most sale way within our

opportunity seasoned opportunity. reps transition, sales and As to getting going an I that also and into leadership enterprise definitely the We're in this as We're that expertise have more going also expand segment to part bring motion. perhaps up-market CRM think of the presents well.

that in how all team into and scale So and the larger all, we're built, heavily accounts. invest this is is planning more to

in of down-market, maybe the Great. from my that also any on spend to you Okay. has those question spend. prices? performance pricing from funnel increased I'm more value, in land been given higher been on got the in impact the commensurate an kind increases but the lifetime -- customers then assume there marketing and is And your All try now But that customer you've right. low curious how that has Understood. end. second marketing increase on it's actually there a performance impacts the funnel But go-to-market, the

It's Roy.

the customers, you Our performance pricing by results. of see pure marketing, number we a test like geared taking if quality potential but like always, with our driven higher more this like, we And is higher. obviously, is less And what ones the spot, line towards company in and is did And that you has team after. and before have to is in sweet strategy whole upwards. sales the the like scale

Next question line Zukin comes Alex Research. from of with Wolfe the

talk very into respect expansion. motion there for follow-up. And large of a what as And Was have Maybe types the just bit you end they the with Can just of pipeline kind about a customer you maybe to I deals year? the adopted? go quick those the of a that? then consolidation

this is Alex, Yes. Eran.

operations, company What product team. since we increase, XX,XXX across they now the this has a happened and using sales XXXX, got more consulting, team. they lot have the We had is departments grown departments until over seats, this from So XXx also now recently upgrade. basically additional have the infrastructure, just finance,

them and And the that very room So if more over just all tool see in accounts, grow. not landing in time. we of great. customers large all traction add great extending feedback you terms in other also quarter, to that significant The it's but to the previous the within announced become company is also a we larger

deployment within So and more we our dose see platform. land that more

have right experience important the that sales the what bring just with how was And maybe maybe why changes, to think that you kind enterprise management time respect to does with Adi you table then this that? is of replacement, didn't larger And as about after addition? And before? Perfect. Yoni's the

Yes. This is Eran.

So to for first join. of all, we're Adi excited very

I of a complexity. he his lot processes, very strategic we I also of think having, organizations, it experience managing people, in lot terms just ways. had brings in the processes, knowledge organization, think experience not of building large really with us One but can have. terms is of And process big that in help organization business and expertise scale with a X departments management,

see we helpful. great around So domains, SaaS already well. a those and in he lot understand definitely also definitely, leverage from a lot expertise the technology understands of business, expertise different of but we and very have sales That's Also impact to that. know as really he increase org areas brings and how technology,

all will So think will point. in I past to it and table lot all, the a this scale the company bring help

Yes. us we -- can transition that someone we a is Roy. on helps lot across and company. this I It's Adi period add the he . during rely

was a you, experience up a There it There was is to in of how second the Eliran. part. market. have the second one important question, part going This is remind about I'll CRO,

Yes.

the progress, complete to join team. progress made right will front. transition. person definitely, a as I'm new company, busy we're that CRO on that we Yoni through looking lot as somebody also a sure been And the already of for in for, that We continue role, investing And that transitioning this we're great he us going part transition new We're of us the as that find looking we're that, that. look So this she sales go once or this has the that terms into always, help company. in lot of a through momentum. help we will to,

Bhatia comes William Arjun question with of Next Blair. the from line

for to a to want bit. back go CRM I monday

about and interesting management inside now for It if think that particular? you And this you buy sounds about Elevate. built suite what long-term like are versus full-on become could think build monday? ambitions that marketing at are was be the And little kind CRM? to in new there's going future, expect of capabilities versus the we, a CRM do campaign pretty sales in partner capabilities in-house. your monday Can so, motion talk for kind bit announced a you I how of to some

Roy. It's

is can on CRM and of connectivity So complexity built also which it of flexibilities the Work the gives the essentially amazing OS, manage, to monday organization. and in terms rest us capabilities the

this departments. to being to want, and suite able our connected think kind those something of with CRM build as wholeness really to appreciate the I additions other is things So that we well the ourselves add across we that time. organization, over building connectively customers and that And mentioned see connectivity the more

Certainly, I just to second. quarter growth a Okay. very is the strong. then XX% turn Understood. if And can for

I lighter when think QX the a growth historically. than look it looks I at bit seen little from sequential QX, we've to

in touch business the on quarter, you what just financials consider thinking can that going from So whether about we're up-market and this timing should elements the there's forward? happened you a what move the little any we bit as and this saw trends just quarter

Sure, Eliran. Arjun. This is

of pleased QX with First we performance. are all,

QX. company. a presented still in are [indiscernible] bar We we high think going if And be above It year fiscal exceptional had QX. to 'XX. we Investor the Day, expectation in even what in in are We our about an performance you sets

QX, by was if slower impacted hiring at pure customers, total which we heads, in in choppiness including macro, the the you part in continued in saw look Nevertheless, some sales. enterprise

and strong I dev in developers. very a as we focus As we growth an QX, slower-than-expected monday had pivot to on said, outlier,

in we're would October. above all So created the say of September, already momentum I light seeing strong but some

Fargo Berg from Michael question Next with Wells Securities.

the wanted of turn incremental quantitative I to Is of back or on there color or from the the or couple any contribution quarter hasn't quarters for last quarter, whether be it in directional? been quick. the in from pricing there much potential year in There pricing. the update to contribution real an

is Eran. this So

on rolled to quick pricing July new out fully a of target be XXXX. The just by So pricing. update remains on

middle still of we're the process. in kind of So the

year sorry, $XX price be customers. total about our million XXXX. So $XX far, and between the impact fiscal will XX% to impact million, from increase see And it's impact fiscal about been rolled We 'XX -- fiscal of 'XX. about for XX% out

So those the are kind updated figures. of

But some color. just to give you more

with -- reception increase, We We don't any going well of feedback. the see is negative kind are price good. very really from customers

we roll the as continue planned. So pricing we to out

Helpful. that to on there been Elevate. And have expectations some GA it's like Service. expected to in It through follow-up QX. GA? the feedback had from grapevine Anything delays. incredibly point might be there? We the is quick then prior as as Any from well looks ecosystem color around potentially strong heard a the to Obviously, here versus

anything to So help point us helpful. there in would the direction be right

Yes.

is So this Eran.

So there's the largely no out release end delay. the roll to this the and we at Basically version. we planned of year, when is full

to the it's customers ] reception can with that Just in for [ remind you, they use great already beta, product. available

the around be to then kind there's the up running for feedback customers. our year, product we'll of But up announce year, GA, January, open next of and entire and great of So customer beginning base. the from end is the it product and

schedule. on much pretty it's So

of Funk Our the next line Mike Bank of comes from with question America.

the growth Just CRM thinking did quick trajectory that go or decline a net see flattening this the and additions factors in the quarter. revenue a We one, dev that. across and either customer about into

You year. a had before. you slight million uptick mentioned not of expecting 'XX, lot Service a from of expected the next impact then from what for $XX And price contribution

plus. point law maintaining in when is and factors I'm of up missing large me and numbers revenue of growth, us hitting help think XX% a how terms if if impact to anything going those maybe to maybe we they're through So catching are just

It's Eliran.

customers price we single high increase, said that said prior in year. to expect new as as of So quarters, part compared of the digits ahead we we prior

the going to terms with And last However, are in the slightly have something you be bigger. past. ACV finished customers, we this when seen obviously, percentage in XXX,XXX the already and year land what is of lower the is

momentum. regards to With Service, strong

with We continue with year. amongst our sorry, expect CRM. to adoption between customers. our in saw to line is next Great -- customers what we This it

this will that contribute So think year. something is to we next

around XXXX we $XX between and And to price million. Eran contribute as increase, XXXX by continue mentioned,

net has in nothing some what the as past So much dev. QX, in have other to we well regards from adds earlier what changed softness as I seen with enterprise mentioned in than

have add can size, very Roy. map increasing It's a we growth existing customers and customer also and [ is large I of geared towards team existing existing so focused our customers portion on that, a space mentioned, a is like within amount product adoption ]. large you of sales like within road

confirm for just And fiscal to million from correct, previously? impact price, are the my that from increase million notes that Okay. $XX 'XX an $XX was

Yes, XX, XX to correct.

TD question from comes next Our Derrick of the Wood line with Cowen.

you've pushing involved I'm any having deal I cycle. a So up-market is if longer seat quarters. time deals, more wondering in this aggressively as there's just recent to doing cycle And been multi-thousand start pretty frames. buyers sales impact imagine, you and more

little seeing more little activity a a the there's how in deals and less you're pipelines perhaps way these of QX if And more coming a perhaps wondering flush comment Is X,XXX-seat-plus to into be the any of QX? thinking just seasonality a little So into of that model it? in of right because and heading QX? activity of bigger about large deals

it's Derrick, Eliran.

we on strong came seasonality Europe kind as are this traditionally the And want But I and QX. very earlier, of I you -- a August strong a the QX, as dramatic seen. we obviously, mentioned back to a of of of have on potentially So and provide very month don't came have which vacations kind we in in July U.S. changes

seeing at customer this also, dev And But macro still again, anticipated. looking monday less strong potentially choppy, areas potentially, said, the tell to headwinds as was enterprise to I QX. don't more than the And I that mentioned a a was market, some want in in is positive. the some macro we this is momentum extent that I trend fact heads. of still still we you the very we with that certain of contributed As seasonality to some soft October, saw has there the fact are that

in Got your you more it. I past percentage positioning the some much pushed touch changed into the as guess that product has And greenfield on landscape. new stats I just as mean, then you've gave up-market, competitive deals. just areas, market like of to guess on evolved? I maybe us

Roy. It's

think as deals, more So larger competition I on we we deals. push see towards

changed the You not I'm greenfield to other while competitors. come sure new they look definitely players. from against adoption average, of but but or But it's still, CRM, lot not, we are comparing a if us at are within competing

with comes from the of Canaccord. question line DJ Hynes Next

that Any updates ecosystem, activity? are of Any partner to business, there, growth that emerging calling ability on further you as upmarket, especially trends your the go the monetize out? contribution worth

is Yes. DJ, this Eran.

update, ecosystem. see major to our to the also the What them delivering with even momentum with more. are our customize we implementation, platform more just we services great see more partners customers, not but but is and over continue help them also no helping time So to partner

remains great larger to Service, the customers CRM, also part one We're that our products, on in to of expertise onboard starting more it partner I'm going focus terms sure and and our with of more of specific partners launch platform. more on product. dev significant composition But we're use heads overall, our the that in ecosystem, we focus a continue so, And see partners of in that. or have of revenue each specialize add helping momentum see monday as we part the to

Got then a service. it. maybe on follow-up And

beta with demand public And over you evolving the the on use that internal to versus the cases based see been of kind how Just here ticketing seen availability do customer-facing date, on time support? usage you've of horizon? for much has

Yes.

this Eran. is maybe So --

marketing and support, within a use see the support as forward around support service. customer cases it's very we position department. to way mostly facing we that the all any but ticketing HR, emphasize, to current see service, outside operations, lot seen But we've across Currently, plan we from finance, internal company, the IT, the across platform, customer don't monday IT ticketing. What just almost for but to don't we IT we but have, teams Service use company. just given broad moving around So not cases, see of currently

from question Citi. Enders the with Next comes Steve of line

here? some that's maybe the that guess this outlook? that being [indiscernible] in that incorporating of saw and choppiness guess the that conservatism of I in has kind to accounted I you of about think QX some want how on also for ask I you're the maybe pieces outlook? impacts just the there some can the of in some our been you baked seeing maybe you're Just moving Is quarter. incremental

Yes. Eliran. Steve, it's

think and I we it's I I I spoke but business to rate. this earlier, our about consistent continue segments repeat. will So see steady mean, across demand no, growth

the macro. As many spend But environment we we cautious retention levels. our some record continued customers. QX, at choppiness with there in said, And some saw is in of is gross

growth although So we the enterprise, saw we fastest-growing ] heads again, saw QX. fewer segment enterprise in that we [ have, it's in

back As a I it by said, was strong very slower QX. sales part hiring the in and of on in impacted

So I don't conservatism. that baked want to tell you we

a try guidance, quarter. do on in we we said, As the to things the all we when we And information always come prudent we for know it provide based today. all we in way that know that the

and we mature, we are growing is the guidance and company while meeting estimates. maintaining conviction providing most in the more wanted becoming that make sure possible strong addition, our to accurate In

comment. following I context I sales a then sales into count want to just and the just there. guess kind And guess, you clarify some bit hiring should thinking I into that, maybe that layer going That's of helpful of I on little secondly, how guys just are up I that about the year. And how slower. guess think growth Perfect. Okay. head plans hires next future maybe

a question broke hiring, the part about Just of up little. Steven, the you last

Yes.

Just as how I that guess head 'XX. adds you're into and case count thinking we of about future the head sales

hiring. Pace of

take is will So this it. Eliran, Steve, I

The changes go-to-market. are Worth mentioning 'XX. investment business, continue the with evolution So up we all it rebound we plan the And of we in of and fiscal QX. carriers slower CRO. to doing hiring QX to for expect but quota what to we as in hiring than areas in be that, ramp was if sales the the look product said, anticipated, at will R&D we we year that sales and in

continue to be So But to the account people enterprise, across obviously, Eran to in mentioned customer management, base. will existing earlier, deepen segment momentum continue within going hiring. strong we're hire of to

Scott from with question of Berg line comes Next the Needham.

help to you relative abnormal increase wanted took to R&D general unpack something else strategy? product there the kind R&D Is and us big just on a an quarter-over-quarter, of hiring was increase? and jump spend your QX. it between driving or is specific I Can one in the especially what's QX seasonality historical First maybe understand Or R&D? for

Scott, it's Eliran.

require over is do everything last of are and mind monday, the we features that continue to something we investing that we doing. core and of R&D in new product, of quarters, is AI existing few So going having the for mondayDB, do be investment capabilities, in is functionalities, continue Innovation to products. all things that and these to talent, say everything we product, area an this in on proactively. us introducing

hiring plans product well QX So and for in operations. we particularly overall as and and strong as R&D had

becoming contributing the So that significant to is R&D all more of is that quarter-over-quarter. fact

then was you've third in hiring and the item this catch up is marketing to bit persists into behind 'XX? Or an And quarter. little couple think on that there talked as you about a sales of Eliran. going Do quarter? Helpful. early that you the a hiring, maybe be times the your fourth how in

Yes.

'XX, we all plans. for with are again, rebound, the to looking doing, fiscal to the all into that it hiring up also are will make we we that quota would obviously, going at we And year sales So sure we like changes expect carriers. ramp

UBS. from comes with McGinnis Taylor the of Next line question

the versus are you the a outperformance XQ? Can be the like what reason you how is bit in would price why some from maybe provide of one on ask rev more full mentioned raised expecting just million about to the in of upside much just for first choppiness. price the The year macro And color from $X XQ you've I came thinking guide. little on

if curious in any that on macro if bottleneck was Just you and some choppiness areas hiring of to XQ, called sales choppiness like or the that there's particular? that a

it's Eliran. Yes. Taylor,

in If year. February, this of at don't early increase, because would launched what the customers we end it became you impact, know we that the the the would this be accordance what than with Overall would it, what of churn what the actually price time we was better anticipated. did increase. recall, price when the And the -- is time the we do first it at we be said be

a been nonevent. Gross most improved. has retention has For customers, it been largely

that So million the is is profile extra X I the and anticipated. than would say the fact customers the we the what better momentum of that

So good this us. was surprise a for

NRR you bit talking then unpack XQ. like seeing about a upside? So uptick work was cross-sell this we actually point or then X and NRR, Is just as expecting maybe stable I know drive expansions little that to that could you're seat think more? more due are for outlook to in And largely Or the that Perfect. some you of be about management the price? stable? And

made some October. momentum I think you good a earlier in comment seeing about

that just prudence, keep anything in there mind is So really or a seasonal from perspective? to

Yes.

it's So the increase in of -- pricing the reported to the think around meaning all I the all XXX NDR QX. basis XXX above above, points contributed to

potentially be fiscal is to in the said October. points approximately Too next far good seeing There XXX We upside in QX, in that we're reported some contribute expect pricing XXX%. going positively basis year as around going momentum for so a but year. say, to stable NDR whole. We early will continue to into also it's 'XX

the with And Ittai from last Oppenheimer. of comes question our Kidron line

questions couple of me. A for

go-to-market you've First, for talk either you product you change in It's Can about contribution a what on a from more dev. been get standpoint future here? consistent better needs to and to somewhat since the announced it. underwhelming

Ittai, it's Eran. Yes.

pleased with developers. With with as monday it. dev, happy we're might CRM, but It as monday with very we're very the on the focused we're progress not dev. So grow fast growth, software

tailored compared features we're We It kind in see product, of use be But pretty now cases, to net the more the who about and that's which little feedback kind of using add But retention case. term. the long the we're developers. in use kind So short a of refocusing -- more towards go-to-market. is slowdown that a it might bit of great might our of adds we takes broad part that. more great the in finalize confident do in in product. CRM, a customers be the term, of the the just in longer We to scale specific

So happy continue the into progress, product. that invest overall with and we're to we

up do in expansion what year And significantly impacting AI think you That's we all, great. do How you I'm blocks? the or Roy, now? moving it up how your about in from say, of remarks quite that a do change, about sorry, about you, First then evolution talked to expect price pattern And -- do this talk prepared customer Can you How was to I Eran, quarter-over-quarter. think blocks for you AI context it this tiers? of would that? and see let's here?

Yes.

of we're grew more very with QX. from I've than the Like to blocks AI the total QX. adoption. yes, grew So AI -- adoption XXX% it for mentioned, terms actions, compared pleased And in the XXX%

the monetization customers them are with we time, processes product more for roll their generate into where to more tied the blocks, see within And we're and involves we people to our value overall, out going and a of lot adopt create over They automation. those incorporate clear customers. planning So within that AI that. [indiscernible]

adoption progress time, features. see AI the the very So over AI to the as of got monetize the with we've well. happy definitely, ability that to features, we're And

on Eran, is that monetization a 'XX time frame AI? for

have it a specific to we XXXX. in Yes, but date, might commit be we that. can't don't But

for 'XX. We're in for not that plan modeling the

the all Ladies and gentlemen, that concludes session. for Thank you question-and-answer joining.

now disconnect. may You