Revenue amount

Q1 2025 Guidance

$260 million to $262 million "

$274 million to $276 million "

raised

Revenue growth

Q1 2025 Guidance

28% to 29% YoY growth "

26% to 27% YoY growth "

lowered

Non-GAAP Operating Income

Q1 2025 Guidance

$29 million to $31 million "

$25 million to $27 million "

lowered

Operating Margin

Q1 2025 Guidance

11% to 12% "

9% to 10% "

lowered

Enterprise Expansion

Q1–Q3: Emphasis on growing enterprise deals was consistent – from building a robust pipeline with large deals (e.g., a significant deal two quarters ago " ) and organic expansion in seat counts ( " , " ) to pricing updates and natural account growth ( " , " ).

Q4: Solidified by reaching 80,000 seats, completion of mondayDB 2.0 to support larger use cases, and large contract expansions that boost NDR ( " , " ).

Reinforced growth with deeper enterprise engagements. The enterprise strategy continues to gain traction and scale, building on prior momentum. " " " "

Upmarket Growth

Q1–Q3: Consistently focused on targeting larger customers and achieving higher ACVs. There were mentions of longer deal cycles (Q3 " ) and steady investments in scaling the sales organization ( " ) while gradually shifting focus from smaller customers to upmarket segments ( " , " ).

Q4: Continued emphasis on moving upmarket with a focused pricing strategy that prioritizes larger deals over sheer volume ( " ).

Steady and deliberate progression. Upmarket positioning remains core, with a stronger pricing strategy and strategic targeting in Q4. " " " "

AI Adoption and Monetization Uncertainty

Q1–Q3: Early adoption and rollout of AI capabilities were highlighted. Q1 noted good early results and increasing integration in workflows ( " ); Q2 emphasized strong customer feedback on AI features but deferred monetization ( " , " , " ); Q3 reported significant usage growth (250% increase in AI actions and 150% in AI blocks) while suggesting monetization might come later, potentially in 2025 ( " ).

Q4: Continued strong usage of AI features with evolving integration (such as AI blocks enabling flexible consumption-based pricing) but uncertainty persists on monetization, with pricing not yet introduced and revenue guidance excluding AI ( " , " ).

Consistent adoption with cautious monetization outlook. Strong user uptake continues, though monetization remains an open question. " " " "

Pricing Strategy Impact and Customer Churn

Q1–Q3: Pricing adjustments were well-received. Q1 showed exceeding revenue projections and improved retention via positive customer feedback ( " , " ); Q2 highlighted a favorable revenue benefit and well-received price increases among enterprise customers ( " , " ); Q3 noted minimal churn impact with record-high gross retention and improved NDR ( " , " , " ).

Q4: Continued improvement with flexible consumption-based pricing for AI blocks, contributing positively to NDR (112% reported) and stable/improving retention, further reinforcing the upmarket shift ( " , " , " ).

Sustained positive impact. The pricing strategy is consistently enhancing revenue and retention with modest churn among smaller customers. " " " "

Macroeconomic Environment and Demand Volatility

Q1–Q3: Acknowledged uncertainty and choppiness. Q1 reported a choppy environment but strong demand across segments ( " , " , " ); Q2 described an inconsistent but steady demand despite macro challenges ( " , " ); Q3 detailed broader demand stability paired with continued macro choppiness impacting sales headcounts ( " , " , " ).

Q4: Cautious tone maintained amid ongoing macroeconomic headwinds. Regional trends showed U.S. demand relatively stable while non-U.S. regions began to stabilize by December; FX challenges remain ( " , " , " ).

Persistent caution with modest regional stabilization. Macroeconomic challenges continue to influence sentiment, though some regions are showing signs of recovery. " " " "

Product Portfolio Expansion and Innovation

Q1–Q3: A clear focus on expanding and enhancing products. Q1 saw launches of monday CRM, monday dev and early tests of monday Service with enhanced AI features ( " , " ); Q2 emphasized deepening the existing suite with mondayDB 2.0 and AI integrations ( " , " ); Q3 expanded on no-code AI tools, enhanced CRM features, and showcased monday Service in beta ( " , " ).

Q4: Continued drive to deepen product offerings (e.g., AI integration across the suite, new AI-powered monday Service with high cross-sell potential, and expansion in enterprise capabilities through mondayDB 2.0) ( " , " , " ).

Continuous enhancement with a sharper AI focus. Innovation is actively expanding the product suite while reinforcing existing strengths. " " " "

Customer Acquisition and Retention Trends

Q1–Q3: Acquisition was robust with strong seasonal performance in Q1 ( " , " ) and record net new customers in Q2 ( " , " ), while retention metrics like NDR and gross retention consistently improved (Q1 and Q3 reported NDR around 110–111% and record-high gross retention) ( " , " , " , " ).

Q4: Customer base stands at 245,000 with slight seasonal slowdown in net new adds due to performance marketing factors, yet improved retention reflected in a rising NDR (112%) and emphasis on upmarket expansion ( " , " , " ).

Stable acquisition and improved retention. While seasonal factors slightly slow new adds in Q4, overall customer retention and upmarket quality continue to drive growth. " " "

Operational Cost Pressures and Capital Expenditures

Q1–Q3: Limited discussion in Q1; Q2 mentioned efficiencies through GenAI reducing customer success headcount and CapEx increases driven by employee growth ( " , " ); Q3 provided specific operating expense breakdowns and free cash flow details ( " , " ).

Q4: Specific commentary on operational cost pressures or capital expenditures is minimal; only financial metrics (R&D, sales & marketing expense percentages, free cash flow of $72.7M) were provided ( " ).

Reduced focus in Q4. Compared to earlier periods with operational details, Q4 shifted away from explicit discussion of cost pressures and CapEx. " " "

Competitive Positioning and Product Gaps

Q1–Q3: Q1 highlighted strong positioning in enterprise deals with early product gaps in CRM and dev noted but ongoing roadmap improvements ( " ); Q2 reflected confidence in platform capabilities and flexibility overcoming gaps ( " , " ); Q3 acknowledged increased competition in CRM with a focus on maturing monday Service to fill product gaps ( " , " , " ).

Q4: Emphasis on market leadership through milestones (e.g., $1B in ARR) and industry recognition (Gartner Magic Quadrant); product strategy focused on multi-product integration and deep AI incorporation with no explicit mention of remaining gaps ( " , " ).

Strengthened and evolving. Competitive positioning is solidified by external recognition and comprehensive product integration, with less focus on gaps. " " "

Partner Ecosystem Expansion

Q1–Q3: Consistently discussed. Q1 detailed a robust partner network including major SIs ( " ); Q2 underlined partners’ increasing role in service delivery and integrations ( " ); Q3 highlighted strong momentum and specialization of partners, particularly ahead of monday Service launch ( " ).

Q4: No specific mention was made regarding the partner ecosystem in Q4 earnings.

No longer mentioned in current period. Partner ecosystem, a previously discussed growth lever, is absent from Q4 commentary, suggesting a shift in focus. " " "

Shifting Sentiment in monday dev Product Performance

Q1–Q3: Q1 expressed positive sentiment with strong growth and cross-sell opportunities ( " , " ); Q3 noted a temporary slowdown due to refocused targeting toward developers and longer ramp-up but maintained confidence in long-term potential ( " , " ); Q2 did not have detailed sentiment shifts.

Q4: No specific mention of shifting sentiment for monday dev was observed; only that overall Q4 performance was slower due to seasonality ( " ).

Not explicitly discussed in Q4. Earlier periods conveyed nuanced sentiment shifts, while Q4 provided minimal commentary on monday dev performance sentiment. " " "