Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Thursday, Apr 18, 2024

Israeli tech company Monday.com is now valued at $7.8 billion after a successful IPO, and its cofounders say it's all because of a more flexible approach to task management tools

Israeli tech company Monday.com is now valued at $7.8 billion after a successful IPO, and its cofounders say it's all because of a more flexible approach to task management tools

Productivity startup Monday.com, the self-styled operating system for work, made its debut as a public company on Thursday after a successful IPO that saw its stock pop up 15% in the first day of trading.

Trading on Nasdaq under the ticker symbol MDNY, it was valued at $178.78 per share at the closing bell on Thursday, well above its listing price of $155, giving the company a market cap of about $7.8 billion — a significant uptick from the $2.7 billion it was said to be valued at a year ago.




Founded in Tel Aviv in 2012 under the original name "Dapulse," Monday.com makes software for work management to help workers manage projects, tasks, processes and workflows, with companies like Asana, Smartsheet, and Notion as its chief competitors. That kind of tool has been in high demand thanks to the pandemic-driven remote work surge.

"The markets we operate in are so massive and it's such a big opportunity," Monday.com founder and co-CEO Roy Mann told Insider on Thursday.

The company's IPO filings showed strong revenue growth and over 127,000 customers, but also widening losses: The company brought in $58 million in revenue in Q1 of this year, an 85% increase from Q1 last year, and it's on track for over 100% overall annual revenue growth in 2021. However, those filings also showed that its sales and marketing costs in the same quarter were $68 million, bringing it to a net loss of $38 million. Its annual net loss in 2020 was $152 million, up from $92 million in 2019, but those losses are overall a smaller pecentage of revenue.

Mann said that the company sees itself as still being very much in high-growth mode, leading to the accelerated spending on sales and marketing. He says that all things considered, the company has been very strategic and efficient with where it spends those dollars, as an investment in future growth. He also says that half the company's revenue comes outside the US, and it plans to chase that international opportunity.

"We're focused on cash flow efficiency. We continue to capture the opportunity that we have in terms of our market and it makes so much sense to continue to invest," Monday.com founder and co-CEO Eran Zinman said.

From a product perspective, Monday.com competes with its many rivals with a focus on customization, Zinman said. He and Roy Mann were both developers before becoming entrepreneurs, and wanted to make a more flexible tool.

In a fact sheet, the company says that in 70% of the company's sales deals it is not going head to head with other vendors, but rather wins by providing a more versatile alternative to traditional emails, spreadsheets, and meetings. It can also integrate with many other software applications and create automations to speed up mundane tasks without having to write code.

"[Other tools] were all rigid, meaning that we had to use them in a very specific way," Zinman told Insider. "So our vision for Monday was to solve that and using our workOS which is going to have a low-code no-code platform to allow our users to control their own software in a sense."

That vision is what helped it win over investors like Insight Partners, Stripes, Entree Capital, and Sapphire Ventures, who sunk over $243 million in venture capital in Monday.com total ahead of this week's IPO.

The productivity and collaboration market that Monday.com competes in is one of the largest in enterprise software, and its platform approach was a key differentiator, said Sapphire Ventures partner Rajeev Dham, who led Monday.com's 2019 $150 million Series D round.

"They had always taken up more of a platform-like approach versus just a specific application around productivity and collaboration," Dham told Insider.

The company has also won a vote of confidence from Salesforce's venture arm and  Zoom, each of which invested $75 million worth of stock in Monday.com via a private placement in the IPO. With the 15% pop in the stock, both investors' stakes grew to about $86.55 million, according to CNBC. Salesforce seems to have a knack for these kinds of investments, and struck similar deals with Zoom and Snowflake ahead of their own IPOs last year.

Monday.com has an existing relationship with the companies via software integrations, with the investment as an "indication they believe in the company and our vision," Zinman said.

Indeed, the founders view going public as one step in a much longer journey to build a large company.

"We literally feel like we are just getting started," Zinman said.




Newsletter

Related Articles

Hong Kong News
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
×