Damon Coggin

Damon Coggin asked if the slight shortfall in net retention in the fourth quarter was primarily driven by pressure down market or other factors.

Answer

Eliran Glazer, CFO, attributed the 100 basis points reduction in net retention primarily to the company lapping a pricing increase introduced two years prior, which had been rolled out to 250,000 customers. He also noted that the overall trailing 12-month NDR remained stable from Q3 to Q4, emphasizing the weighted average calculation over the last four quarters.

Damon Coggin asked if the slight shortfall in net retention in the fourth quarter was primarily due to down-market pressure or other factors.

Answer

Eliran Glazer, monday.com CFO, attributed the 100 basis point reduction in net retention (from 111% to 110%) mostly to the pricing adjustments introduced two years prior, which have now been fully lapped across all 250,000 customers. He also noted that the overall trailing 12-month NDR remained stable from Q3 to Q4.