monday.com Ltd. (NASDAQ:MNDY) Q2 2023 Earnings Call Transcript

Operator: Next question comes from DJ Hynes with Canaccord Genuity.

DJ Hynes: Just one for me. Roy and Eran, how do you think about the opportunity to revisit product packaging to kind of incentivize multiproduct lands as the scope of the platform continues to expand?

Eran Zinman: I think you touched on a great point. It’s actually things we’re discussing right now in terms of our strategy going forward. One of the options that we now have as we expand our product offering and also taking into account previously launched products such as WorkForms and Work [Indiscernible], is the ability to package mutable product into a product suite and then offer that not just a package of individual products that actually as a business solution that we can sell to senior management within companies. I think that will also help drive more enterprise deals and talking more with decision-makers and allow us to do top-down sales. So definitely, caused our strategy going forward, and we’re definitely looking into that.

Operator: Next question comes from Andrew DeGasperi with Berenberg.

Andrew DeGasperi: Maybe first on Monday Dev. Just noticed you have, what, just under 800 customers. Wondering if the ramp-up for this product could be similar to CRM in terms of where it was at this stage? Or should we expect a different cost? And then I have a follow-up.

Eran Zinman: So it’s still early days, I would say, with that product, but we’re very happy with the traction and what we’re seeing so far with the numbers. It’s hard to tell if we will play faster than CRM or a bit slower than the CRM, but overall, if we compare it to benchmarks or even our own growth rate, when we started monday.com, we’re very happy with the results. Momentum is very strong. And also the feedback we get from customers is very positive. So we’re very happy with the growth, and we’ll see how it plays out. And I think this new product has a lot of potential to further expand within our organization. Roy mentioned that as part of a previous answer, but our customers are not using the product just for the dev team.

We see product teams joining, we see designers, we see analysts. So basically, we got people using their old ecosystem around building products using this Monday debt product. So I think this has a lot of potential in terms of growth within the accounts that using it.

Andrew DeGasperi: And then maybe on the performance marketing side. I mean there was — maybe can you elaborate a little bit in terms of what did you see in the market this quarter? Was it unique in terms of what happened? And do we expect this to change in the back half?

Eliran Glazer: Sure, Andrew. So our marketing environment has been largely stable. We didn’t see anything materially change that we should call out pretty much what we saw before. Obviously, some of the competitors have to come back into the performance marketing spend in order to start to acquire new customers. But it doesn’t really affect significantly on the prices. there is some uptick, but nothing material that we’re seeing.

Operator: Next question comes from Scott Berg with Needham & Company.

Rob Marelli: This is Rob Marelli on for Scott Bergen I got it disconnect a little bit, so apologies if some of these questions are already asked. But with the release of Monday DB and future releases coming, are you anticipating that these will like you to target and offer different use cases? And then hearing a lot of discussions around consolidation trends within the CWM space. Have you noticed any shifts in your top of funnel or with existing customer discussions?