monday.com (NasdaqGS:MNDY) Q4 2025 Earnings call February 09, 2026 08:30 AM ET Company ParticipantsByron Stephen - VP of Investor RelationsCasey George - CROEliran Glazer - CFOEran Zinman - Co-Founder and Co-CEOMark Murphy - Head of Software ResearchRoy Mann - Co-Founder and Co-CEOConference Call ParticipantsAlex Zukin - Managing Director and Senior AnalystAllan Verkhovski - Director and Application Software AnalystArjun Bhatia - Partner and Equity Research AnalystBilly Fitzsimmons - Senior Research Analyst ...

monday.com (NasdaqGS:MNDY) Q4 2025 Earnings call February 09, 2026 08:30 AM ET Company ParticipantsByron Stephen - VP of Investor RelationsCasey George - CROEliran Glazer - CFOEran Zinman - Co-Founder and Co-CEOMark Murphy - Head of Software ResearchRoy Mann - Co-Founder and Co-CEOConference Call ParticipantsAlex Zukin - Managing Director and Senior AnalystAllan Verkhovski - Director and Application Software AnalystArjun Bhatia - Partner and Equity Research AnalystBilly Fitzsimmons - Senior Research Analyst ...

Financial Data and Key Metrics Changes - Revenue grew by 27% year-over-year, reaching $1.232 billion for fiscal year 2025, with Q4 revenue at $334 million, up 25% from the previous year [4][11] - Operating margin for fiscal year 2025 was 14%, with Q4 operating margin at 13% [4][12] - Net income for Q4 was $55 million, down from $57.3 million in Q4 2024, while fiscal year 2025 net income increased to $233.6 million from $183.3 million in fiscal year 2024 [13][14] - Adjusted free cash flow for Q4 was $56.7 million, with a margin of 17%, and for fiscal year 2025, it was $322.7 million, with a margin of 26% [14][15] Business Line Data and Key Metrics Changes - Customers with more than $50,000 in ARR now represent 41% of total ARR, indicating strong expansion within existing accounts [4] - Customers with over 500K in ARR grew by 74% year-over-year, highlighting success in enterprise-scale deployments [5] - The no-touch channels faced challenges in demand, particularly among smaller customers, affecting customer acquisition costs [5] Market Data and Key Metrics Changes - The company noted a choppy demand environment in no-touch channels, particularly impacting smaller customers, which is expected to persist into 2026 [5][20] - The overall net dollar retention (NDR) was stable at 110% for Q4 and is expected to remain flat for fiscal year 2026 [11][20] Company Strategy and Development Direction - The company is transitioning to an AI-powered work execution platform, focusing on AI Agents, AI Workflows, and Monday Vibe to enhance customer engagement and productivity [7][9] - The strategy includes shifting investments towards higher ROI opportunities that drive demand for larger customers [5] - The company aims to lead in the AI landscape, leveraging its platform to embed intelligence deeply across workflows [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's fundamentals despite a challenging macroeconomic environment, emphasizing a disciplined approach to execution [16][20] - The guidance for fiscal year 2026 reflects expected revenue growth of 18%-19%, with operating margins projected at 11%-12% [17] - Management acknowledged the impact of the Israeli shekel's appreciation on margins, contributing to a negative FX impact of 100-200 basis points [12][31] Other Important Information - The company ended Q4 with $1.5 billion in cash and cash equivalents, reflecting a share repurchase of $135 million during the quarter [14] - Employee headcount increased to 3,155, with expectations for mid-teens percentage growth in fiscal year 2026, focusing on sales and R&D investments [14] Q&A Session Summary Question: Growth outlook for 2026 - Management indicated that guidance reflects current conditions without assuming a rebound in performance marketing, focusing on upmarket and enterprise customer expansion [19][20] Question: Sidekick monetization strategy - Sidekick is offered as a paid add-on for pro and below packages, with plans for further monetization as it provides significant value to customers [23] Question: Impact of customer acquisition costs - Management noted that the headwind in performance marketing affects smaller customers, while larger customers continue to show strong momentum [26][28] Question: Guidance for operating margins - The guidance reflects achievable numbers given the current macro environment, with a focus on disciplined investment and efficiency improvements [29][31] Question: Dynamics of the no-touch business - Management acknowledged ongoing choppiness in the no-touch segment, impacting overall performance, particularly among smaller customers [51][56] Question: Customer retention and churn - Gross retention for the $50K+ cohort is at 91%, with management confident in maintaining and improving this figure through product offerings [82]

Summary of monday.com 2025 Investor Day Company Overview - **Company**: monday.com (NasdaqGS: MNDY) - **Event**: 2025 Investor Day held on September 17, 2025 - **Key Statistics**: - Over 250,000 customers across more than 200 industries - Annual Recurring Revenue (ARR) of over $1.2 billion - Global workforce of 2,900 employees - Significant growth in customer base and product adoption Core Industry Insights - **AI Integration**: - AI is seen as a transformative technology that reshapes work processes and customer expectations - The company aims to embed AI across all products, moving from managing work to actually doing the work for customers [7][34] - **Multi-Product Strategy**: - Expansion into multiple product offerings including work management, CRM, development, and service management - Current penetration of multi-product usage among customers is only 6%, indicating significant growth potential [15][19] Key Points and Arguments - **Growth and Efficiency**: - The company emphasizes intentional growth and efficiency, achieving a Rule of 60 metric [14] - Focus on scaling upmarket with larger accounts, with 68 accounts now generating over $500,000 in ARR [20] - **Product Innovations**: - Introduction of new AI products such as Monday Sidekick, Monday Magic, and MondayVibe, which enhance user experience and operational efficiency [12][39][40] - Monday Sidekick acts as a personal AI agent that executes tasks based on user context [50][53] - Monday Magic allows users to create tailored work solutions using natural language [36][39] - VibeCoding enables users to build custom applications without coding [40][41] Financial Strategy - **Revenue Model Transition**: - Shift from a seat-based pricing model to a hybrid model that includes consumption-based pricing for AI features [28][29] - New products like Monday Agents will be fully consumption-based, reflecting a broader industry trend [28] - **Customer Acquisition**: - The company has over 55 acquisition channels, with a focus on quality over quantity in customer acquisition [18][19] - Performance marketing is becoming a smaller percentage of the overall marketing budget as capabilities expand [17] Future Outlook - **Vision for AI**: - The company aims to leverage AI to create a limitless workforce that can perform tasks across various departments [48][65] - Continuous investment in AI capabilities and product enhancements to maintain competitive edge [65] - **Market Positioning**: - Positioned as a leader in work management, with significant recognition from Gartner in multiple categories [49] - Plans to further penetrate the enterprise market while maintaining strong growth in SMBs [55] Additional Insights - **Customer Testimonials**: - Customers report increased efficiency and streamlined project management through the use of monday.com [67][70] - **Internal Efficiency**: - The company is leveraging AI to improve internal processes, aiming for a 20% increase in headcount efficiency in 2026 [22][64] This summary encapsulates the key insights and strategic directions discussed during the monday.com 2025 Investor Day, highlighting the company's commitment to AI integration, multi-product expansion, and a robust financial strategy aimed at sustainable growth.

Summary of monday.com Conference Call Company Overview - **Company**: monday.com (NasdaqGS: MNDY) - **Event**: 2025 Conference on September 10, 2025 Key Points Company Vision and Goals - monday.com aims to simplify software for professional users, moving towards being the go-to platform for work management, including CRM, Dev, and IT Service Management [10][11] - The company is focused on maintaining its unique culture and rapid innovation as core components of its success [10] Product Development and AI Integration - Introduction of new AI products such as Monday Vibe, AI Vibe Coding, and Monday Magic, which enhance the platform's capabilities [11] - AI tools are designed to democratize software development, allowing users to create applications quickly using natural language [52][57] - The management team believes AI will significantly enhance productivity and customer experience across all divisions [78][81] Market Strategy and Customer Base - monday.com has seen substantial growth, tripling its customer base from 86,000 at IPO to over 250,000 [30][32] - The company is focusing on moving upmarket, targeting SMBs to mid-market and eventually enterprise customers [20][21] - There is a significant opportunity for cross-selling among the existing customer base, with many customers currently using only one product [21][36] Financial Performance and Growth - The company reported a record net addition of 100,000 customers in Q2, with a net dollar retention (NDR) rate above 115% for its customer segments [30][41] - Annual recurring revenue (ARR) is projected to exceed $1.2 billion, up from $161 million at the time of the IPO [32][41] - The company has $1.6 billion in cash, providing flexibility for investments, potential M&A, and returns to shareholders [41] Challenges and Market Environment - The SMB market is experiencing vendor rationalization, with companies looking to consolidate their software solutions [42][43] - The management has not observed dramatic changes in the market but acknowledges the need to adapt to evolving customer needs [42] Hiring and Organizational Development - The company is focused on hiring experienced leaders to support its growth strategy and enhance its go-to-market model [22] - Emphasis on training and enabling existing staff to adapt to new market demands and technologies [22][23] Future Outlook - The management is optimistic about achieving a long-term growth rate of 30% and believes that the current product suite and AI capabilities will support this goal [44][49] - The company is positioned to capture significant market opportunities, particularly in the enterprise segment, with expectations of landing larger customers [62][66] Conclusion - monday.com is committed to innovation and growth, leveraging AI to enhance its product offerings and customer engagement while strategically moving upmarket to capture higher-value customers [50][52][66]