Monday.Com Ltd
NASDAQ:MNDY
Monday.Com Ltd
Monday.com Ltd., an Israeli-based company, has revolutionized the way teams collaborate and manage their workflows. Founded in 2012 by Roy Mann and Eran Zinman, the company emerged from a desire to create a more intuitive and flexible project management tool. Traditionally, project management systems were rigid, offering limited scope for customization. Monday.com flipped that narrative by introducing a visually appealing, user-friendly platform that allows teams to create their own workflows with ease. From marketing and sales teams to R&D and HR departments, organizations across various sectors leverage Monday.com's custom dashboards, automation features, and integration capabilities to optimize productivity and foster collaboration. The platform essentially becomes the digital headquarters where teams align on tasks, share documents, track progress, and adapt quickly to changing priorities.
In terms of revenue generation, Monday.com operates on a subscription-based model, offering various tiers tailored to team sizes and needs. It attracts a broad customer base, from small businesses to large enterprises, each paying recurring monthly or annual fees. The company smartly integrates with numerous third-party applications like Slack, Zoom, and Google Workspace, which adds versatility and stickiness to the service—making it indispensable for users once they are embedded into the workflow. Additionally, Monday.com capitalizes on upselling more advanced features and expanded user licenses as organizations scale, thereby steadily increasing its average revenue per user. This business model, underpinned by a rapidly growing global SaaS market, has positioned Monday.com as a formidable player in the collaborative software industry, boasting impressive growth rates and a robust customer retention record.
Monday.com Ltd., an Israeli-based company, has revolutionized the way teams collaborate and manage their workflows. Founded in 2012 by Roy Mann and Eran Zinman, the company emerged from a desire to create a more intuitive and flexible project management tool. Traditionally, project management systems were rigid, offering limited scope for customization. Monday.com flipped that narrative by introducing a visually appealing, user-friendly platform that allows teams to create their own workflows with ease. From marketing and sales teams to R&D and HR departments, organizations across various sectors leverage Monday.com's custom dashboards, automation features, and integration capabilities to optimize productivity and foster collaboration. The platform essentially becomes the digital headquarters where teams align on tasks, share documents, track progress, and adapt quickly to changing priorities.
In terms of revenue generation, Monday.com operates on a subscription-based model, offering various tiers tailored to team sizes and needs. It attracts a broad customer base, from small businesses to large enterprises, each paying recurring monthly or annual fees. The company smartly integrates with numerous third-party applications like Slack, Zoom, and Google Workspace, which adds versatility and stickiness to the service—making it indispensable for users once they are embedded into the workflow. Additionally, Monday.com capitalizes on upselling more advanced features and expanded user licenses as organizations scale, thereby steadily increasing its average revenue per user. This business model, underpinned by a rapidly growing global SaaS market, has positioned Monday.com as a formidable player in the collaborative software industry, boasting impressive growth rates and a robust customer retention record.
Revenue Growth: Monday.com reported strong revenue growth of 27% year-over-year for fiscal 2025, but guided for lower growth of 18–19% in 2026 due to ongoing challenges, particularly in its self-serve/no-touch channels.
Enterprise Momentum: The company saw significant expansion among larger enterprise customers, with customers over $500,000 ARR growing 74% year-over-year and strong upmarket wins.
AI Product Traction: Adoption of new AI-driven products is accelerating, with Monday Vibe surpassing $1 million in ARR faster than any prior product, and strong customer interest in Sidekick and AI agents.
Margin Pressure: Despite profitability, operating and free cash flow margins are expected to decline in 2026, impacted by increased investment in AI, sales-led growth, and significant foreign exchange headwinds from the Israeli shekel.
Guidance Reset: Management withdrew its prior 2027 targets, citing macro uncertainty and ongoing volatility in no-touch channels, focusing instead on more conservative 2026 guidance.
Performance Marketing Headwinds: The no-touch segment continues to face choppy demand, leading Monday.com to shift investment toward higher ROI enterprise channels.
Cash & Buybacks: The company ended Q4 with $1.5 billion in cash and continues to prioritize opportunistic share repurchases.
