The Exchanges

Q Just, you guys have been so analytic since day one, right? Yeah. Which if we have time, I'll, I'll touch on at the end, but at your scale at 250,000 customers, 1.2 billion, do you pretty much know how every quarter's gonna be and your job as CEO is next year, five, six quarters out? Like, do you sweat any given quarter anymore within, within, within a range?

A In a way, I would say there's some, some flexibility within the quarter. I think what's great about SaaS businesses and one of the reasons why, as a category, we enjoy a relatively high multiple is the predictability of the business. Once you go into a quarter, once you publish the results, you're already halfway into the quarter, and SaaS is a very predictable business. You have NR, you have your existing customer base in large numbers, how they're going to behave. So I think that's one of the great things about SaaS companies, and specifically for Monday, because of that, we have high Prediction ability into the quarter. And you can see a lot of SaaS companies when they give guidance, it's usually like they give a very narrow range in terms of revenue, sometimes even a few millions over a billion, which other industry can offer such prediction and guidance.

AI assessment note: “specifically for Monday, because of that, we have high Prediction ability into the quarter.”

Q told folks who are saying, oh, it's hard out there, it's gotten harder, I say to this that only some folks get it, go find your Monday. Go for it. Because Monday, like, it's always been an engine, and I want to talk about that in a minute, but any meta takeaways for folks on how you've been able to maintain that engine, right? Even as others have more variability.

A Um, yeah, so you mentioned a lot of kind of financial metrics, but I think it eventually it all boils down to the, your customer base, the product, uh, the expression, expansion potential. And I think maybe what's a little bit unique about Monday is the variety of customers, not just the, you know, total number of customers, which is relatively high over 250,000, but the variety across different industries, different markets, different countries, geographies. And I think this diversity in a way creates stability in a business because you're not overly exposed to one business sector for better or worse, right? I think a lot of companies who build specifically for tech enjoy the tech boom in, in, in, in, in, in, in, in, there's a flip side to that as well. So I think eventually companies who build for the actual industry or the some representation of the variety of businesses we have, how dare enjoy more stability over time. Yeah.

AI assessment note: “this diversity in a way creates stability in a business because you're not overly exposed”

Q through that, now that I hear you say it again, You know, question is, when you have something this rich, especially to SMBs, how do you communicate that, right? Now, the Google search is an interesting example, right? Because, how do you communicate this depth? It's, it's, it's, it's so much functionality, right? How do you do that without overwhelming, or how do you expose a small business to it?

A Yeah, so, so I think, uh, the main point that, um, we, we've done, uh, which I think is important, you don't need to tell the whole story from the beginning, uh, especially when you sell to SMBs. Um, I think that we focused on giving them value as soon as possible. So if you were searching for a project management or CRM, we wanted to serve them a CRM or a project management. Don't need to explain the whole depth of the platform. And then as they scale the product and use it more and more, they're exposed to all the features. So, we call it, like, gradual discovery. Don't overwhelm them, don't tell them the whole story, because it's confusing, especially when you're an SMB. You want to understand what you're buying. So that's, that was our focus from day one.

AI assessment note: “we call it, like, gradual discovery. Don't overwhelm them, don't tell them the whole story”

Q Let's put, let's put a Ron on the five deals and Roy on the three K deals and Daria on the 10 K deals. And we all, but, but now I actually see it happening later and later. Um, but I actually think it always works. It always works in the metrics and with teams that you always get a boost when you segment your teams and your data, right?

A You always, I think, uh, uh, Another insight that I can share is that, um, you know, companies are always looking to increase their NDR. Um, and often the way you think about it is, oh, we need to improve the product. That's always kind of how you think about we need to improve the product. And that's obvious, like you need to improve the product. But I think another thing that you should do is to create upsell opportunities, because if you don't have upsell opportunities, uh, you won't be able to increase the, the contract price. So for example, Monday we have, you know, is seed based. So The more people the company hires, the more seats we have, the more we expand. But we have an option to add more layers, more add-ons, more features that we can upsell to customers. So I think that's another way to think about how can we add more value to customers? How can we offer more upsell opportunities? And that's a great way to think about how can we increase our NDR going forward.

AI assessment note: “Another insight that I can share is that, um, you know, companies are always”

Q Product budget. Are you, do you get that granular or how do you manage those pieces?

A Uh, we, we have some percentages allocation, but, but I think it's mainly the, the message for management and what we care about and how we behave in meetings and how we can split our time, which really conveys the message to everybody, uh, and the DNA of the company. And, um, and like I said, eventually in a product like ours, you want enterprise customers to use it on a day-to-day basis. So eventually it boils down to the same things. Great user experience, great usage. You care about usage and retention and so on. So I really see it as a win, although it's, you have to focus on two things, which is always hard in a way.

AI assessment note: “we have some percentages allocation, but, but I think it's mainly the, the message”