monday.com Achieves Significant Financial Milestone with $1 Billion in Annual Recurring Revenue

Rhea-AI Summary

monday.com (NASDAQ: MNDY) has reached a significant milestone of $1 billion in annual recurring revenue (ARR), just a decade after launching its Work Operating System. This achievement highlights the company's rapid growth and success in disrupting traditional work software.

Key points:

• Launched in 2014, monday.com's Work OS is a no-code, low-code open platform for creating customized work tools
• The company has evolved into a multi-product company with a suite including monday work management, monday CRM, monday dev, and monday service (beta)
• monday.com's growth strategy focuses on expanding into mid-market and enterprise markets
• The company emphasizes operational efficiency alongside expansion

Positive

• Achieved $1 billion in annual recurring revenue (ARR)
• Rapid growth from $1 million ARR to $1 billion ARR in 8 years
• Expanded product suite to include work management, CRM, dev, and service solutions
• Successfully targeting mid-market and enterprise markets
• Demonstrated operational efficiency while achieving expansion

Negative

• None.

Financial Analyst

Reaching $1 billion in Annual Recurring Revenue (ARR) is a significant milestone for monday.com, showcasing robust growth and market penetration. This achievement, just a decade after launching their Work Operating System, indicates strong product-market fit and effective scaling strategies. The company's transition from a single-product to a multi-product model, focusing on work management, CRM, dev tools and service solutions, demonstrates a strategic diversification that could drive future growth. However, investors should note that while ARR is a valuable metric, it doesn't directly translate to profitability. The company's ability to maintain growth while improving operational efficiency will be important for long-term success in the competitive work software industry.

Tech Expert

monday.com's success can be attributed to its innovative no-code, low-code platform approach, which addresses a critical market need for flexible, scalable work solutions. The Work OS's modular building blocks allow for customization without the complexity of traditional enterprise software, positioning the company well in the rapidly evolving digital workplace market. The introduction of mondayDB highlights their commitment to infrastructure improvement, which could enhance performance and scalability. As they expand into mid-market and enterprise segments, their ability to compete with established players like Salesforce and Microsoft will be crucial. The multi-product strategy aligns with enterprise needs for integrated solutions, potentially increasing customer stickiness and lifetime value.

Market Research Analyst

monday.com's growth trajectory from $1 million to $1 billion ARR in eight years is impressive, indicating a Compound Annual Growth Rate (CAGR) of approximately 115%. This outpaces many SaaS industry benchmarks, suggesting strong market demand and effective go-to-market strategies. The shift towards a multi-product suite targeting specific use cases like CRM and dev tools shows market adaptability and could expand their Total Addressable Market (TAM). However, as they move upmarket, they'll face increased competition from entrenched enterprise players. The company's future growth will likely depend on their ability to maintain product innovation, effectively cross-sell their expanded product suite and successfully penetrate larger enterprise accounts while managing customer acquisition costs.

The company has reached a notable milestone, setting a new standard for innovation and growth.

NEW YORK & TEL AVIV, Israel--(BUSINESS WIRE)-- monday.com Ltd. (NASDAQ: MNDY) (“monday.com”), the multi-product platform that runs all core aspects of work, announced today that it has reached $1 billion in annual recurring revenue (ARR)¹. The company recently achieved this significant financial milestone, just a decade after it launched its Work Operating System (Work OS) and eight years since it reached $1 million in ARR.

“In 2014, we set out to disrupt traditional work software, and over the last decade, we’ve built a product that has become the core platform for companies worldwide,” says Roy Mann, co-founder and co-CEO at monday.com. “Hitting $1 billion in ARR is an exciting milestone on our journey to take on the immense opportunity in the work software industry. We believe software can be both a platform that people love and an effective way to solve core business challenges in a scalable and robust way. We wouldn’t have achieved this without our dedicated monday.com team, partners, and customers.”

Launched in 2014, the monday.com Work OS is a no-code, low-code open platform that allows customers, teams, and enterprises to create and shape the tools they need to pave their business success. In the past, companies had very limited options - rigid off-the-shelf point solutions typically designed for small to medium businesses that couldn’t scale or complex enterprise software with massive implementation and maintenance costs.

From day one, monday.com’s goal was to address these challenges and develop a platform to run the core of all work. The platform consists of modular building blocks that are simple enough for anyone to assemble yet powerful enough to build solutions that drive the core business of any organization in any vertical. As monday.com enters its next phase of growth and evolves into a multi-product company, its commitment to understanding and addressing customers’ evolving needs has led to the development of the Work OS product suite. This suite includes monday work management, monday CRM, monday dev, and monday service (currently in beta), each tailored to specific use cases.

“Achieving $1 billion in ARR is a testament to the value we provide for our customers, and we’re committed to continuous evolution to ensure monday.com remains an industry leader,” says Eran Zinman, co-founder and co-CEO at monday.com. “We take pride in how we’ve built our product, our agility, and continued strategic investments in our infrastructure, as demonstrated by the release of mondayDB – all allowing us to adapt to our customers’ evolving needs. Our transition from a single product to a multi-product company, coupled with expansion into mid-market and enterprise markets, lays the foundation for future growth and expansion of our offering.”

“We’ve always believed that one of our unique strengths lies in achieving expansion while driving operational efficiency, and achieving $1 billion in ARR in only ten years is proof of that,” says Eliran Glazer, CFO at monday.com. “As we head into the next phase of monday.com, as a multi-product company providing solutions to enterprises, I’m excited for the journey to the next milestone.”

About monday.com:

The monday.com Work OS is a low code- no code platform that democratizes the power of software so organizations can easily build work management tools and software applications to fit their every need. The platform intuitively connects people to processes and systems, empowering companies to excel in every aspect of their work while creating an environment of transparency in their business and operations. monday.com has offices in Tel Aviv, New York, Denver, Chicago, London, Warsaw, Sydney, Melbourne, São Paulo, and Tokyo. Fully customizable to suit any business vertical, the platform is currently used by over 225,000 customers across more than 200 industries and in over 200 countries and territories.

Visit us on LinkedIn, X (formerly Twitter), Instagram, YouTube, TikTok, and Facebook. For more information about monday.com please visit our Press Room.

¹ARR means, as of the measurement date, the annualized value of our customer subscription plans assuming that any contract that expires during the next 12 months is renewed on its existing terms.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240826979674/en/

Investor Relations:

Byron Stephen

byron@monday.com

Media Relations:

Or Elmaliah

ore@monday.com

Source: monday.com

FAQ

What significant financial milestone did monday.com (MNDY) recently achieve?

monday.com (MNDY) recently achieved $1 billion in annual recurring revenue (ARR), a significant financial milestone for the company.

How long did it take monday.com (MNDY) to reach $1 billion in ARR?

monday.com (MNDY) reached $1 billion in ARR in just 10 years after launching its Work Operating System, and 8 years since reaching $1 million in ARR.

What products are included in monday.com's (MNDY) Work OS product suite?

monday.com's (MNDY) Work OS product suite includes monday work management, monday CRM, monday dev, and monday service (currently in beta).

How is monday.com (MNDY) planning to drive future growth?

monday.com (MNDY) is driving future growth by transitioning to a multi-product company and expanding into mid-market and enterprise markets.