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

Eran Zinman: So the first part of your question, I think we refer to it as part of the other questions, but basically, as we mentioned, we refund the DB 1.0. And more than anything, we feel this has a lot of potential to go up market and to serve larger and larger enterprise deals. We got great feedback from customers, and we see them scaling using this new infrastructure, and we plan to release additional minor versions and major versions in the next few months. And can you just repeat the second part of your question, sorry?

Unidentified Analyst: Just from a consolidation trend in regards to consolidation trends, have you guys noticed anything shifting within your top of funnel or just with existing customer discussions?

Eran Zinman: Yes. So we haven’t noticed any change in customer behavior. We did see some customers consolidate on Monday taking a few products into the Monday platform, but nothing that super substantial. We also don’t see any customers stop using Monday because of any consolidation. As Eliran mentioned, churn has been very stable. Downgrade is very stable. So overall, we don’t see any movements like this.

Operator: Next question comes from Jason Celino with KeyBanc.

Jason Celino: Eran I think you mentioned in your prepared remarks you’re doing faster cross-sell. I didn’t quite hear in your response to some of the other questions on this topic. Are you expanding here with the help of sales reps or marketing efforts? And then if not, when might it make sense to make a more forward approach here?

Eran Zinman: Yes. Jason, it’s Eran. So we see both. We see both customers extending what we call no touch, meaning discover those new products by themselves and then buying into those new products and inviting new team members. And we also had ourselves team storing approach enlisting customers and offering them the Severn product. So we see both definitely, with our sales team, we are managing to land larger deals with more potential to expansion. But going forward, we’ll keep optimizing that funnel and expand our ability to cross-sell into other accounts.

Jason Celino: Great. And then Eliran, just a quick clarification question. I know we’ve you touched on your comments on July and you’re seeing some signs of stabilization, but curious on maybe some of the subtle details if you’re able to help us out? Is this a reflection of down cells or flowing seat optimizations or slower down tiering? Just curious on some those subtleties.

Eliran Glazer: So with regards to the recovery, I believe that during the last 1.5 years with macroeconomy that was challenging, there was a decline that now we see the effect. If you think about the way we look at our net dollar retention it’s a trailing 12 months and then weighted average. And now we’re starting to see a kind of a pickup from — if you compare to a year ago. So pretty much there is some positive signs of getting back into the deals and we’re starting to see the good cohorts that actually joined at the end of last year. Now we are seeing the positive impact, and this is what drives stabilization in the MDR that we are seeing, still not calling a trend but positive signs.

Operator: Next question comes from Robert Simmons with D.A. Davidson.

Robert Simmons: I was wondering in the marketplace, are there any interesting or surprising trends that you’re seeing there, maybe areas with more customer interest than you had expected that you might be able to pull into the core platform or into the product suite?