Workplace software platform monday.com was built with non-techies in mind. Its no-code, “building block” approach is designed to make it easy for anyone to build workflows. The model is paying off: The company now has more than 225,000 customers in 200 industries. It brought in 34% more revenue last quarter than it did in Q1 2023, and anticipates 29%–30% revenue growth in 2024.
Eliran Glazer has been CFO since 2021, joining the company just four months before it went public. Austin Hankwitz and Katie Perry, hosts of the Morning Brew podcast After Earnings, spoke with Glazer about how monday.com has been able to achieve such remarkable results, how he balances growth with efficiency, and more.
This summary has been lightly edited for length and clarity. You can listen to the whole episode on Apple Podcasts, Spotify, YouTube, or wherever you listen to podcasts.
Perry: Tell us about monday.com. How do you differentiate yourself from other platforms that might have similar external positioning?
Glazer: Monday was founded in 2012 by two entrepreneurs, Roy Mann and Eran Zinman…The idea was to build an open platform with unique architecture. It’s a low-code, no-code platform that is comprised of building blocks. It’s important because 70% of our customers are non-tech. They don’t know how to code. So they use Monday through the drag and drop capabilities, and they build any solution that fits their needs. And this is something that is very unique and it helped us expand in a very significant way.
Hankwitz: How do you balance adding more staff while also being cognizant of lingering macroeconomic uncertainties?
Glazer: We define what would be the strategy for us in three years and where we want to be. And then we go backward. We say, “Okay, in order to be where we want to be, what do we need to do today? What are the limitations that we have? What are the drivers that we can invest in in order to bring these KPIs?”
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We build and we invest today, even at the price of not improving the bottom line the way we did until now. We understand that we have to build the growth engines for the future.
Hankwitz: In your earnings results, you raised your guidance to about the $950 million range for the year 2024. What are some of the key drivers behind monday.com’s recent revenue growth, and how do you plan to sustain this momentum?
Glazer: So there were a few drivers to increasing the guidance. One was the price adjustment. This year, for the first time in the life of Monday, we did a price adjustment to the existing customer base…We’re going to do it in waves. It’ll take a few years, probably, to complete it, but we believe that some of the upside will come from this price adjustment. And the reason why we did it is we wanted to tie value to the price. We brought tons of value to the platform over the last few years from product, from features and functionalities and AI, and other additional capabilities. We got relatively good reactions. We didn’t see the churn that we had anticipated.
The second thing is that we had a strong performance in Q1 from our existing customer base…We invest in performance marketing…So top-of-funnel remained very strong. Gross retention remained stable and actually reached an all-time high.