YONYOU NETWORK TECHNOLOGY CO., LTD. 用友網絡科技股份有限公司 (the "Company") (A joint stock company incorporated in the People's Republic of China with limited liability) WARNING The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the conte ...

Core Insights - The enterprise software market is experiencing significant growth, with a projected increase from $263.8 billion in 2024 to $517.3 billion by 2030, reflecting a 12.1% CAGR [2] - Both monday.com (MNDY) and Salesforce (CRM) are central players in this market shift, with Salesforce having a long-standing dominance in enterprise CRM and monday.com emerging as a flexible Work OS [1][2] Summary of monday.com (MNDY) - monday.com is facing challenges in sustaining growth, particularly in enterprise workflows, which has revealed gaps in depth and efficiency [3] - The monday CRM extension is gaining traction but has modest annual recurring revenue of $100k, with high R&D costs at $59.2 million (20% of revenues) and sales and marketing expenses at $139.2 million (47% of revenues) [4] - The core Work Management product saw a 27% year-over-year revenue increase to $299 million, but customer acquisition costs are high, and net dollar retention has slipped to 111% [5] - AI initiatives are adding costs without proving significant returns, with a non-GAAP operating margin of 15%, down from 16% a year ago [6] - The Zacks Consensus Estimate for 2025 earnings is $3.93 per share, reflecting a 3.7% increase over the past 30 days [7] Summary of Salesforce (CRM) - Salesforce is a leading enterprise software provider with a multi-cloud portfolio that includes sales, service, marketing, integration, and analytics, leveraging AI in newer tools like Data Cloud and Agentforce [8] - Sales and Service Clouds are the largest revenue contributors, but their maturity limits incremental growth; however, AI initiatives like Data Cloud and Agentforce generated $1.2 billion in recurring revenues, up 120% year-over-year [9][11] - Salesforce's total remaining performance obligation reached $59.9 billion, up 10% year-over-year, with a non-GAAP operating margin of 34.3% [12] - The Zacks Consensus Estimate for fiscal 2026 earnings is $11.30 per share, indicating an improvement over the previous year's earnings of $10.2 per share [13] Price Performance and Valuation - In the past three months, monday.com's stock has declined 40.6%, while Salesforce's shares fell 8.9%, reflecting investor concerns over MNDY's high spending and slowing customer expansion [14] - monday.com trades at a forward P/S ratio of 6.66X, higher than Salesforce's 5.65X, but faces execution risks and profitability pressures [17] - Salesforce's lower P/S multiple appears more balanced due to its scale, margin consistency, and visibility from long-term contracts [17] Conclusion - Both companies operate in attractive segments of the enterprise software market, but monday.com is struggling with high spending and slowing customer expansion, limiting its valuation premium [19] - Salesforce benefits from a broader portfolio and stable margins, providing better visibility for investors [19] - The Zacks Rank indicates CRM as a hold and MNDY as a strong sell, suggesting CRM holds a relative edge [20]