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### Q4 2023 Earnings Call, Feb 12, 2024
Revenue and Growth
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  • monday.com reported a 41% revenue growth in fiscal year 2023, reaching $729.7 million.
  • The company projects revenue growth of 28-30% year-over-year for Q1 of fiscal year 2024.
  • For the full year 2024, revenue is projected to be between $926 million and $932 million, representing a 27% to 28% year-over-year growth.
Product Updates and Features
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  • monday.com launched new capabilities and features, including MondayAI, Monday Workflows, and MondayDB, which improved Board performance by 5x.
  • The company introduced Monday Code, a secure serverless environment for developers to host and run apps within the worklist platform.
Pricing and Revenue Impact
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  • monday.com updated its pricing model to reflect the enhanced value of its products and services, expecting an additional $15-20 million in revenue for fiscal year 2024.
  • The price increase had a minimal impact on customer acquisition, with a shift towards more centralized buying decisions for Monday's platform.
  • The company assumes a 15% to 75% impact on the previously announced $10 million revenue from the price increase due to the earlier implementation.
Customer Feedback and Adoption
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  • Customers provided positive feedback on the newer products and initiatives showcased during the Elevate World Tour.
  • Customers provided positive feedback on the platform's scale, performance, and security features, which allowed them to increase usage.
  • The company observed an acceleration in the net new ads for Monday Dev in Q4 due to product improvements, enhanced go-to-market strategies, and the exposure of the multiproduct suite to more customers.
Financial Outlook
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  • The company ended Q4 2023 with $1.12 billion in cash and cash equivalents and generated $55.4 million in free cash flow.
  • For Q1 of fiscal year 2024, monday.com projects free cash flow of $56 million to $60 million and a free cash flow margin of 27% to 29%.
  • Full-year free cash flow is anticipated to be $200 million to $206 million, resulting in a free cash flow margin of approximately 22%.
Guidance and Strategy
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  • The company's guidance philosophy remains focused on providing prudent, achievable, and responsible guidance based on the latest available data.
  • The company plans to increase investment in research and development to build out its product suite and scale its work operating system platform.
  • Specialized sales teams for CRM and Monday Dev will be developed as the revenue for these products grows.
Market Dynamics and Competition
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  • Customers are viewing Monday as an orchestration engine that facilitates cross-company workflows and integrates with various tools.
  • The company is seeing strong adoption of Dev and sales CRM, with some competition in CRM and Dev but mostly greenfield in work management.
Artificial Intelligence (AI)
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  • The company is rolling out increasing AI functionality in its products, with a focus on automation and building AI into the core of its service and other products.
  • AI features are expected to accelerate market penetration and expand the market segment for products that include AI.



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