Monday.com S-1 Summary
Monday.com is finally going public
Disclaimer - This is a quick post I’ve put together post 45 mins of reading. This post will not have the level of detail that some other posts have.
GS is leading the IPO
Mission - "To give our customers the power to create their own work software".
Side note - Its been a while since I've used a new productivity software, but I would believe Monday is a software that people use to manage work, not a software that helps people create software to manage work? I have seen ClickUp make similar claims, is it because no code is all the buzz these days? Edit - The list of integrations on Monday is impressive, so this might be a very legitimate use.
The company has cumulatively raised $234M.
Product
Monday.com seems more modular, and looks prettier than tools like Clickup. It has inbuilt support for things like invoice creation etc, allowing an interface truly getting close to a one fits all tools. Although in my quick search, I could not find any support for native docs (of course you can embed Google docs).
GTM Metrics
$236M in implied ARR, up 85% y-o-y.
~88% non-GAAP gross margin.
Net dollar retention - 107%. They breakout the number to be 121% for customers>10+ users (not sure why this breakdown).
ACV - $1843. Since Monday.com has multiple plans starting from a free tier to $25 per user per month, assuming average to be ~10-15 USD, average number of users per company ~13-17.
Other Business Metrics
The company has doubled the sales and success teams from 154 at the end of 2019 to 365 as of Q1'21. Of the company's 799 full-time-employees, 46% are in sales and success
Enterprise customers, which the company defines as customers with more than $50K in ARR, grew 247% from 2019 to 2020 and the ARR from those customers grew 297% from 2019 to 2020, outpacing the company's total ARR growth.
Monday.com disclosed in the S-1 that 16,925 developers had visited the “Developers” section.
This is a hilarious metric to discuss! The only metric that would make sense is #apps developer, or usage of those apps. A webpage view number is so easy to game (just run ads)!
COVID-19 had no positive or negative impact on their business.
~38% of the Fortune 500 companies use Monday.com.
70% of Monday customers work in traditionally non-tech industries, such as real estate, banking, journalism and construction.
As of December 31, 2019 and 2020 and March 31, 2021, customers with more than 10 users accounted for 53%, 63% and 65% of ARR, respectively.
This is the reason why they had broken the Net dollar retention number separately.
Insight partners owns > 40% of the company! This would be a great exit for the team.
Monday mentions they have spent $121M of cash to finance the growth of the business thus far and has generated $2+ of ARR for every $1 of capital used.
Non-GAAP Expenses as % revenue
