monday.com Ltd (MNDY) 2022 Q4 法說會逐字稿

Good morning or good afternoon, and welcome to the monday.com Fourth Quarter Fiscal Year 2022 Earnings Conference Call. My name is Adam, and I'll be your operator today. (Operator Instructions)

早安或下午好，歡迎參加 monday.com 2022 財年第四季財報電話會議。我叫亞當，今天我將擔任您的接線生。 （操作員指示）

I will now hand the floor over to Byron Stephen to begin. So Byron, please go ahead when you are ready.

現在我將把發言權交給拜倫史蒂芬。所以拜倫，當你準備好了，請繼續。

Hello, everyone, and thank you for joining us on today's conference call to discuss the financial results for monday.com fourth quarter and fiscal year 2022. Joining me today are Roy Mann and Eran Zinman, co-CEOs of monday.com and Eliran Glazer, monday.com CFO. We released our results for the fourth quarter and fiscal year 2022 earlier today. You can find our quarterly shareholder letter, along with our investor presentation, and a replay of today's webcast under the News and Events section of our IR website at ir.monday.com.

大家好，感謝您參加今天的電話會議，討論 monday.com 2022 財年第四季和全年的財務業績。今天與我一起參加會議的還有 monday.com 的聯合執行長 Roy Mann 和 Eran Zinman，以及 monday.com 的財務長 Eliran Glazer。我們今天稍早發布了 2022 年第四季和財年的業績。您可以在我們 IR 網站 ir.monday.com 的「新聞與活動」部分找到我們的季度股東信函、投資者介紹以及今天的網路廣播重播。

Certain statements made on the call today will be forward-looking statements, which reflect management's best judgment based on the currently available information. These statements involve risks and uncertainties that may cause actual results to differ from our expectations. Please refer to our earnings release for more information on the specific factors that could cause actual results to differ materially from our forward-looking statements.

今天電話會議上的某些陳述將是前瞻性陳述，反映了管理層根據當前可用資訊做出的最佳判斷。這些聲明涉及風險和不確定性，可能導致實際結果與我們的預期不同。有關可能導致實際結果與我們的前瞻性陳述存在重大差異的具體因素的更多信息，請參閱我們的收益報告。

Additionally, non-GAAP financial measures will be discussed on the call. Reconciliations to the most directly comparable GAAP financial measures are available in the earnings release and on the investor presentation for today's call, which are posted on our Investor Relations website.

此外，電話會議也將討論非公認會計準則財務指標。收益報告和今天電話會議的投資者介紹中提供了與最直接可比較的 GAAP 財務指標的對帳表，這些內容發佈在我們的投資者關係網站上。

Now let me turn the call over to Roy.

現在讓我把電話轉給羅伊。

Thanks, Byron, and thank you, everyone, for joining us today. Fiscal year 2022 was a year of significant accomplishments at monday.com. We finished the year more energized than ever with strong financial results, improved efficiency and continued product innovation. We put this progress on display at our Elevate 2022 world tour where we had the opportunity to meet with customers and partners in person. We also announced plans to launch monday DB, which will upgrade our infrastructure, drive faster board performance and provide even more flexibility. Monday DB will enhance the way Work OS engine run and store data, ensure that our platform is schemaless, completely flexible and built for infinite scale supporting a 100 times larger ports.

謝謝拜倫，也謝謝大家今天加入我們。 2022 財年是 monday.com 有重大成就的一年。我們以強勁的財務表現、更高的效率和持續的產品創新結束了這一年，比以往任何時候都更有活力。我們在 Elevate 2022 世界巡迴活動中展示了這一進展，我們有機會與客戶和合作夥伴親自會面。我們還宣布了推出 Monday DB 的計劃，這將升級我們的基礎設施，提高董事會績效並提供更大的靈活性。 Monday DB 將增強 Work OS 引擎運作和儲存資料的方式，確保我們的平台無模式、完全靈活，並且可以無限擴展，支援 100 倍更大的連接埠。

Q4 capped off an amazing year with strong revenue growth and free cash flow expansion. We finished the quarter with $150 million in revenue, $30 million in free cash flow and achieved positive adjusted operating profit for the first time. New customer demand trends also continues to be strong. In FY 2022, we added 34,000 net new customers to monday.com family. Our fastest-growing customer segments remained enterprise where we grew customers by 86% to 1,474 customers.

第四季以強勁的收入成長和自由現金流擴張為這一年畫上了圓滿的句號。本季我們實現了 1.5 億美元的收入、3000 萬美元的自由現金流，並首次實現了正調整後營業利潤。新客戶需求趨勢也持續強勁。 2022 財年，monday.com 家族新增了 34,000 位淨新客戶。我們成長最快的客戶群仍然是企業，客戶數量成長了 86%，達到 1,474 個。

While we are seeing healthy new customer demand, we continue to see competitors significantly reduce their performance marketing efforts. As a result, we have been able to build market share and improve overall customer acquisition efficiency. Our results demonstrate that monday.com continue to drive growth and profitability at scale. Since inception, the company has now generated more than $5 in ARR for every $1 in cash burnt. Regardless of macro uncertainties, we believe we are well positioned for the road ahead.

雖然我們看到了健康的新客戶需求，但我們仍然看到競爭對手大幅減少了績效行銷。因此，我們能夠擴大市場份額並提高整體客戶獲取效率。我們的結果表明，monday.com 繼續大規模推動成長和獲利。自成立以來，該公司每消耗 1 美元現金就能產生超過 5 美元的 ARR。無論宏觀不確定性如何，我們相信我們已經為未來做好了準備。

Let me now turn it over to Eran to walk you through some of our business highlights for the year.

現在，讓我將時間交給 Eran，讓他向您介紹我們今年的一些業務亮點。

Thank you, Roy. Fiscal year 2022 was another year of phenomenal growth at money.com both financially and business-wise. We ended the year with $519 million in revenue, up 68% year-over-year, improved overall efficiency and achieved positive free cash flow for the second year in a row. Fiscal year 2022 was also a transformational year for our product. We've received incredible feedback on our new Work OS product suite, particularly on monday sales CRM. As a reminder, CRM has only been made available to new customers, and we finished 2022 with 2,458 new monday sales CRM accounts. The fast adoption and strong customer feedback of monday sales CRM has been amazing. Customers tell us they love monday sales CRM as it's more customizable and easier to use than any traditional CRM tools. As we begin to slowly roll out monday sales CRM to our existing customers, we remain focused on adding more powerful features and functionality to make it the best CRM in the industry.

謝謝你，羅伊。 2022 財年是 money.com 財務和業務均實現驚人增長的另一年。我們今年的營收為 5.19 億美元，年增 68%，整體效率提高，連續第二年實現正自由現金流。 2022財年也是我們產品的轉型之年。我們收到了有關我們的新 Work OS 產品套件（尤其是 Monday Sales CRM）的大量回饋。提醒一下，CRM 僅向新客戶提供，到 2022 年，我們共新增 2,458 個週一銷售 CRM 帳戶。 Monday sales CRM 的快速採用和強烈的客戶回饋令人驚嘆。客戶告訴我們，他們喜歡 monday sales CRM，因為它比任何傳統的 CRM 工具更具可自訂性且更易於使用。當我們開始向現有客戶慢慢推出週一銷售 CRM 時，我們仍然專注於添加更強大的功能和功能，使其成為業界最好的 CRM。

As Roy mentioned, our strong growth continues to be led by enterprise customers. This quarter, we are particularly excited to announce that one of the world's leading banks recently adopted monday.com. With a goal to move away from multiple work management and legacy communication tools, monday.com proved to be the best fit for the company. To date, over 1,000 users across multiple teams have adopted monday.com and we are seeing the power of our Work OS enabling collaboration and efficiency.

正如羅伊所提到的，我們的強勁成長仍然由企業客戶推動。本季度，我們特別高興地宣布，一家世界領先的銀行最近採用了 monday.com。為了擺脫多種工作管理和傳統通訊工具，monday.com 已被證明是最適合該公司的。到目前為止，多個團隊的 1,000 多名用戶已經採用了 monday.com，並且我們看到了 Work OS 實現協作和提高效率的強大功能。

We also made significant progress in expanding our marketplace. In fiscal year 2022, we increased the number of marketplace apps to 217, including 61 monetized apps. As we look to accelerate efforts in building out the marketplace, we are excited to announce a new partnership with Appfire, the world's largest enterprise collaboration app provider with a track record of creating easy-to-use, powerful and reliable apps for the world's most reputable tech companies, Appfire will allow us to build on our strong foundation and take our marketplace to the next level.

我們在擴大市場方面也取得了重大進展。在 2022 財年，我們將市場應用數量增加到 217 個，其中包括 61 個貨幣化應用程式。在我們尋求加快市場建設力度的同時，我們很高興地宣布與 Appfire 建立新的合作夥伴關係，Appfire 是世界上最大的企業協作應用程序提供商，曾為世界上最知名的科技公司創建易於使用、功能強大且可靠的應用程序，Appfire 將使我們能夠在堅實的基礎上再接再提提升到一個新的水平。

With that, let me now turn it back over to Roy.

說完這些，現在讓我把話題還給羅伊。

Thank you, Eran. As we turn our attention to the next fiscal year, we are highly confident in meeting our goals, and there's a lot we plan to accomplish. In FY '23, we will be focused on remaining the market leader in work management space. To accomplish this, we will continue to give our users exceptional customer experience with easy-to-use and intuitive products. We plan to enhance our upmarket efforts through building and scaling our platform and product suite and expanding existing channels that will allow us to build market share. We expect to accomplish all this while being committed to improving efficiency and delivering positive free cash flow for the third straight year.

謝謝你，埃蘭。當我們將注意力轉向下一個財政年度時，我們對實現我們的目標非常有信心，並且我們計劃完成許多目標。在 23 財年，我們將專注於維持工作管理領域的市場領先地位。為了實現這一目標，我們將繼續透過易於使用和直覺的產品為使用者提供卓越的客戶體驗。我們計劃透過建立和擴展我們的平台和產品套件以及擴展現有管道來加強我們的高端市場努力，從而讓我們能夠建立市場份額。我們希望在實現所有這些目標的同時，致力於提高效率並連續第三年實現正的自由現金流。

In closing, Eran and I want to thank the entire monday.com team for your amazing work in making 2022 to our most successful year yet. Now it's full steam ahead into an exciting 2023.

最後，Eran 和我要感謝整個 monday.com 團隊的出色工作，使 2022 年成為我們迄今為止最成功的一年。現在我們正全速邁向令人興奮的 2023 年。

With that, I'll now turn it over to Eliran to cover our financials and guidance.

現在，我將把主題交給 Eliran 來介紹我們的財務和指導。

Thank you, Roy, and thank you to everyone for joining our call. Today, I'll review our fourth quarter and full year 2022 results in detail and provide initial fiscal year 2023 guidance. We finished fiscal year 2022 exceptionally strong. Total revenue in Q4 2022 came in at $149.9 million, up 57% from the year ago quarter and at $519 million in fiscal year 2022, up 68% from the prior year. Excluding the impact of foreign exchange, revenue grew 60% year-over-year in Q4 2022 and 71% year-over-year in fiscal year 2022.

謝謝你，羅伊，也謝謝大家參加我們的電話會議。今天，我將詳細回顧我們 2022 年第四季和全年的業績，並提供 2023 財年的初步指引。我們以異常強勁的成績結束了 2022 財年。 2022 年第四季總營收為 1.499 億美元，較去年同期成長 57%，2022 財年總營收為 5.19 億美元，較上年成長 68%。剔除外匯影響，2022年第四季營收年增60%，2022財年營收年增71%。

Our overall net dollar retention rate remained steady in Q4 2022, reflecting our focus on the organization with the highest expansion potential and continued resilience through a more challenging macroeconomy environment. We experienced a decline in net dollar retention for our largest customers, reflecting slower seat expansion in the upmarket. As a reminder, our net dollar retention is the trailing fourth quarter weighted average calculation.

2022 年第四季度，我們的整體淨美元留存率保持穩定，這反映出我們專注於具有最高擴張潛力的組織，並在更具挑戰性的宏觀經濟環境中保持持續的韌性。我們最大客戶的淨美元留任率下降，反映出高端市場的座位擴張速度放緩。提醒一下，我們的淨美元保留額是根據第四季度的加權平均計算得出的。

For the reminder of the financial metrics disclosed unless otherwise noted, I will be reflecting non-GAAP financial measures. We have provided a reconciliation of GAAP to non-GAAP financials in our earnings release. Fourth quarter gross margin was 90%. In the medium to long term, we continue to expand gross margin to remain in the high 80% range. Research and development expense was $24.7 million in Q4 2022 or 16% of revenue, in line with the year ago quarter, and $94.1 million in fiscal year 2022 or 18% of revenue, up from 17% in the prior year. We plan to invest significantly in R&D in fiscal year '23 as we build out our product suite and scale our Work Operating System platform, both horizontally and vertically.

提醒一下，除非另有說明，因此揭露的財務指標都將反映非公認會計準則財務指標。我們在收益報告中提供了 GAAP 與非 GAAP 財務狀況的對帳表。第四季毛利率為90%。從中長期來看，我們將繼續擴大毛利率，維持在80%的高點。 2022 年第四季研發費用為 2,470 萬美元，佔營收的 16%，與去年同期持平；2022 財年研發費用為 9,410 萬美元，佔營收的 18%，高於去年的 17%。我們計劃在 23 財年大力投資研發，打造我們的產品套件，並橫向和縱向擴展我們的工作作業系統平台。

Sales and marketing expense was $80.9 million in Q4 2022 or 54% of revenue, compared to 73% in the year-ago quarter, and $358.6 million in fiscal year '22 or 69% of revenue, compared to 79% in the prior year. G&A expense was $15 million in Q4 2022 or 10% of revenue compared to 12% in the year ago quarter and $57.3 million in fiscal year 2022 or 11% of revenue, in line with the prior year.

2022 年第四季的銷售和行銷費用為 8,090 萬美元，佔營收的 54%，而去年同期為 73%；2022 財年為 3.586 億美元，佔營收的 69%，而去年同期為 79%。 2022 年第四季的一般及行政費用為 1,500 萬美元，佔營收的 10%，而去年同期為 12%，2022 財年為 5,730 萬美元，佔營收的 11%，與上年持平。

Net income was $22.2 million in Q4 2022, and the loss of $33.4 million in fiscal year '22. Diluted net income per share was $0.44 in Q4 2022 and negative $0.73 in fiscal year 2022 based on 50.4 million and 45.8 million fully diluted shares outstanding, respectively. Total employee headcount was 1,549 , a decline of 3 employees since Q3 2022. Looking to next year, as we build our platform and product suite, we expect to continue hiring for our R&D and Product teams.

2022 年第四季淨收入為 2,220 萬美元，22 財年虧損 3,340 萬美元。 2022 年第四季每股攤薄淨收益為 0.44 美元，2022 財年每股攤薄淨收益為負 0.73 美元，分別基於 5,040 萬股和 4,580 萬股完全攤薄流通股。總員工人數為 1,549 人，自 2022 年第三季以來減少了 3 名員工。展望明年，隨著我們建立平台和產品套件，我們預計將繼續為我們的研發和產品團隊招募。

Moving on to the balance sheet and cash flow. We ended the quarter with $885.9 million in cash and cash equivalents, up from $852.6 million at the end of Q3 2022. In Q4 2022, adjusted free cash flow was $29.7 million and adjusted free cash flow margin as defined as adjusted free cash flow as a percentage of revenue was 20%. In fiscal year 2022, adjusted free cash flow was $8.1 million and adjusted free cash flow margin was 2%.

繼續討論資產負債表和現金流量。本季末，我們的現金和現金等價物為 8.859 億美元，高於 2022 年第三季末的 8.526 億美元。 2022 年第四季度，調整後的自由現金流為 2,970 萬美元，調整後的自由現金流利潤率（即調整後的自由現金流佔收入的百分比）為 20%。 2022財年，調整後的自由現金流為810萬美元，調整後的自由現金流利潤率為2%。

Fiscal year 2022 marks our second consecutive year being adjusted free cash flow positive and we anticipate to be adjusted free cash flow positive in fiscal year 2023. Adjusted free cash flow is defined as net cash from operating activities, less cash used for property and equipment and capitalized software costs, excluding nonrecurring items.

2022 財年是我們連續第二年調整後自由現金流為正，我們預期 2023 財年調整後自由現金流將為正值。調整後自由現金流定義為來自營運活動的淨現金減去用於物業和設備的現金以及資本化的軟體成本，不包括非經常性項目。

Now let's turn to our outlook for fiscal year 2023. For the first quarter of fiscal year 2023, we expect our revenue to be in the range of $154 million to $156 million, representing growth of 42% to 44% year-over-year. We expect a non-GAAP operating loss of $19 million to $17 million and a negative operating margin of 13% to 12%. For the full year 2023, we expect revenue to be in the range of $688 million to $693 million, representing growth of 33% to 34% year-over-year. We expect a full year non-GAAP operating loss of $36 million to $32 million and a negative operating margin of approximately 5%.

現在讓我們來看看 2023 財年的展望。對於 2023 財年第一季度，我們預計營收將在 1.54 億美元至 1.56 億美元之間，年增 42% 至 44%。我們預期非公認會計準則營業虧損為 1,900 萬美元至 1,700 萬美元，營業利潤率為負 13% 至 12%。我們預計 2023 年全年營收將在 6.88 億美元至 6.93 億美元之間，年增 33% 至 34%。我們預計全年非公認會計準則營業虧損為 3,600 萬美元至 3,200 萬美元，營業利潤率約為負 5%。

I'll now turn it over to the operator for your questions.

現在我將把問題交給接線員來回答您的問題。

(Operator Instructions) Our first question today comes from Kash Rangan from Goldman Sachs.

（操作員指示）我們今天的第一個問題來自高盛的 Kash Rangan。

Moving on. Our next question is from Pinjalim Bora from JPMorgan.

繼續。下一個問題來自摩根大通的 Pinjalim Bora。

Okay. Congrats on the quarter. It seems like a good one. I wanted to understand the guidance a bit. Eliran, If you could tease out maybe the assumptions behind the guidance, do you expect expansions to kind of continue to deteriorate or your logo growth kind of slow. Are you assuming the macro kind of to stay the same or take a step down trying to understand if you're baking in a little bit of more conservatism than usual for this year.

好的。恭喜本季取得佳績。看起來不錯。我想稍微了解一下指導。 Eliran，如果您可以梳理出指導背後的假設，您是否預計擴張會繼續惡化或您的標誌增長會放緩。您是否認為宏觀經濟將保持不變，或降低一步，試圖了解今年您是否比平常更保守。

Pinjalim, it's Eliran. So thank you for the question. So what we took into account for guidance. So we always take into account the latest trends that we are seeing. So as we said, there is some challenging macroeconomic conditions without pressure on [NDR]. But on the other side, we see a consisted top of funnel demand. Now the reason why NDR is flowing is the fact that you see less of the (inaudible) on their budget.

Pinjalim，我是 Eliran。謝謝你的提問。因此，我們考慮了哪些指導意見。因此，我們始終會考慮我們所看到的最新趨勢。正如我們所說，存在一些具有挑戰性的宏觀經濟條件，但對 [NDR] 沒有壓力。但另一方面，我們看到了漏斗頂部的穩定需求。現在 NDR 之所以流行，是因為你發現他們的預算中（聽不清楚）的金額減少了。

So we took it into account as part of the guidance that we provided for the year. In addition to that, we are seeing improving overall efficiency and the fact that we're also generating cash also took into account as part of the guidance. So we feel comfortable with what we provided a number that we can achieve.

因此，我們將其作為今年提供的指導的一部分考慮在內。除此之外，我們看到整體效率正在提高，而且我們也在產生現金，這一事實也被考慮在內，作為指導的一部分。因此，我們對所提供的能夠實現的數字感到滿意。

Okay. Understood. On the CRM customer growth seems pretty interesting, really solid. Want to ask you, I mean it seems like almost 12% to 13% of your new -- total new customers added in the year with CRM. I want to understand what's kind of the typical size of customers that you're landing CRM with. And if you're seeing any kind of interesting expansion characteristics with those as they kind of understand how to expand monday beyond CRM.

好的。明白了。在 CRM 方面，客戶成長看起來相當有趣，而且非常穩健。想問您一下，我的意思是，似乎您今年透過 CRM 新增的客戶總數增加了 12% 到 13%。我想了解您採用 CRM 服務的典型客戶規模是多少。如果您看到任何有趣的擴展特徵，那麼他們就會了解如何將業務擴展到 CRM 之外。

Yes. Pinjalim, this is Eran. So as I mentioned previously, right now, the CRM product is mostly offered to new customers. We didn't offer to existing customers. And in terms of new customers, we get a mixture both SMBs but also midsized and larger organization adopting the product. We're very happy and excited with the results. The momentum is created with that product and also the feedback that we get from customers. And we kind of predict this momentum to continue into next year. So right now, we get a healthy mixture of both small- and medium-sized customers into the pipeline.

是的。 Pinjalim，這是 Eran。正如我之前提到的，目前，CRM 產品主要提供給新客戶。我們沒有向現有客戶提供此服務。就新客戶而言，我們既有採用該產品的中小企業，也有採用該產品的中型和大型企業。我們對結果感到非常高興和興奮。這種勢頭是由該產品以及我們從客戶那裡得到的回饋所創造的。我們預測這種勢頭將持續到明年。因此現在，我們已經獲得了大量中小型客戶。

The next question is from Brent Bracelin from Piper Sandler.

下一個問題來自 Piper Sandler 的 Brent Bracelin。

My question really is around monday sales CRM, monday marketer that showed up on G2 is the 2 -- one of the fastest-growing new products in categories. Can you just talk a little bit about the momentum you're seeing in marketer as well as sales? And what's really driving that? Is there a price point that seems to be residing with customers? And then talk a little bit about when you plan to roll that out to existing customers. I know that was only for new customers only, when do you roll it out to existing.

我的問題實際上是關於 Monday Sales CRM 的，Monday Marketer 在 G2 上亮相，它是類別中成長最快的新產品之一。您能否簡單談談您在行銷和銷售方面看到的勢頭？真正推動這現象的是什麼？是否存在一個顧客能夠接受的價格點？然後稍微談談您計劃何時向現有客戶推出該功能。我知道這只針對新客戶，您什麼時候會將其推廣到現有客戶。

Yes. Thanks, Brent. This is Eran. Thanks for the question. So we mentioned previously that about 60% of the new paying customers are CRM customers, but the remaining 50% are split between the marketer and the (inaudible). So definitely, we highlighted the CRM because they have the most momentum, but also the 2 other products also have great momentum that we're seeing. In terms of releasing those products to existing customers. We plan to do it -- like at the end of H1, the midyear this year. And just to your comment about the G2 rating, I think this shows exactly our strategy that because those products have built on top of the Work OS platform, they already pretty mature to offer a lot of advanced features, and we're able to compete in each 1 of those markets and achieve high rating within customers, which is perfectly kind of what we expected and a big part of our strategy as we build those products.

是的。謝謝，布倫特。這是埃蘭。謝謝你的提問。我們之前提到過，大約 60% 的新付費客戶是 CRM 客戶，但剩下的 50% 則由行銷人員和（聽不清楚）分成。因此，我們重點強調了 CRM，因為它們擁有最大的發展勢頭，而且我們也看到其他兩款產品也擁有強勁的發展勢頭。就向現有客戶發布這些產品而言。我們計劃在今年上半年末，也就是今年年中的時候這樣做。關於您對 G2 評級的評論，我認為這恰恰表明了我們的策略，因為這些產品建立在 Work OS 平台之上，它們已經相當成熟，可以提供許多高級功能，並且我們能夠在每個市場中競爭並在客戶中獲得高評級，這完全符合我們的預期，也是我們構建這些產品戰略的重要組成部分。

The next question is from Steve Enders from Citi.

下一個問題來自花旗銀行的史蒂夫恩德斯 (Steve Enders)。

Okay. Great. I guess I'm going to ask a little bit on the outlook on the EBIT line and the strong upside we saw there in the quarter. I guess how should we think about the kind of puts and takes of where you're investing in incremental OpEx and maybe where there might have been a little bit of a pullback from what you're expecting in 4Q? And I guess, similarly for the outlook, is there a pause in maybe some investments that you're making on the headcount side or just anything that we should be thinking about as we think about the EBIT outlook for the year.

好的。偉大的。我想我要問一下息稅前利潤 (EBIT) 前景以及我們在本季看到的強勁上漲勢頭。我想我們應該如何考慮您在增量營運支出方面的投資收益，以及在第四季度您的預期可能會出現一些回落？我想，同樣對於前景，我們在考慮今年的息稅前利潤前景時，在員工人數方面進行的一些投資是否會暫停，或者我們應該考慮的任何事情。

Steve, it's Eliran. So with regard to the first quarter, we provided operating profit mostly driven by the fact that we beat on the revenue side, we saw a lower S&M spend due to the fact that it costs us less to acquire customers. It can be because of some of the competition or the competitors that we stated pulled back. And we believe this is an opportunity for us actually to take market share and to grab land.

史蒂夫，我是伊萊蘭。因此，就第一季而言，我們提供的營業利潤主要是因為我們在收入方面超出預期，而由於我們獲取客戶的成本較低，因此我們的銷售與市場支出較低。這可能是因為我們所說的一些競爭或競爭對手退出了。我們相信，這實際上是我們佔領市場份額和土地的機會。

Some of the hirings that we wanted to do in Q4 were delayed to next year, we would like to focus on hiring people for engineering and product. This is an area that we will continue to invest -- and in addition, in Q4, as part of your year-end audit, there is always kind of reversal of some of the approvals that you are doing throughout the year. Nevertheless, I would like to emphasize that from our perspective, we are going now into Q1. We will continue to invest still in an efficient manner.

我們原本想在第四季進行的一些招募被推遲到明年，我們希望專注於招募工程和產品人才。這是我們將繼續投資的領域——此外，在第四季度，作為年終審計的一部分，您全年進行的一些審批總會被撤銷。儘管如此，我想強調的是，從我們的角度來看，我們現在正進入第一季。我們將繼續以高效率的方式進行投資。

And with regards to overall EBIT that you were asking, we are currently consistent with our original plan to reach profitability bar before 2025 sustainable and with regards to free cash flow, we said that we are going to be free cash flow for the entire year, not only in H2.

關於您所問到的整體息稅前利潤，我們目前按照最初的計劃，在 2025 年之前實現可持續的盈利目標；關於自由現金流，我們說過，我們將在全年實現自由現金流，而不僅僅是在下半年。

Okay. Perfect. That's helpful context there. I do want to ask on the marketplace side and the new relationship with Appfire. I guess how do you kind of view the marketplace opportunity evolving moving forward? And how do you think about outside partners and third parties building applications and use cases versus kind of what you would build in-house.

好的。完美的。這是很有幫助的背景資訊。我確實想問市場方面以及與 Appfire 的新關係。我想您如何看待未來市場機會的演變？您如何看待外部合作夥伴和第三方建立應用程式和用例，以及您內部建置的應用程式和用例？

Thank you. It's Roy. So we really care about the marketplace being a huge growth engine for us. We want to invest a lot in partners joining us. Appfire is a great partner to have. And our vision here is to build a very large and robust ecosystem around us. And the way we're doing it, I think is unique is that we're opening the platform up completely. Just as an example, application developers can create now first-class citizens within the platform. It's not something that is second grade or like hidden, okay? So they can really build on top of the platform like we do, and we really open up completely. And I think they feel that and they feel that we are a great partner to build upon.

謝謝。是羅伊。因此，我們非常關心市場，因為它是我們龐大的成長引擎。我們希望對加入我們的合作夥伴進行大量投資。 Appfire 是一個非常棒的合作夥伴。我們的願景是在我們周圍建立一個非常龐大且強大的生態系統。我認為我們這樣做的方式很獨特，因為我們完全開放了平台。舉個例子，應用程式開發人員現在可以在平台內創建一等公民。這不是二等的或隱藏的東西，好嗎？因此，他們可以像我們一樣真正地在平台上進行構建，並且我們真正地完全開放。我認為他們感受到了這一點，並認為我們是值得信賴的優秀合作夥伴。

We have a question from Kash Rangan from Goldman Sachs.

我們收到了來自高盛的卡什·蘭根 (Kash Rangan) 的一個問題。

Congratulations on the quarter. Terrific for team. Curious to get to your perspective on monday DB, I know that it's going to be rolled out in 2024. Was the initiative based on any specific customer feedback or is it something that you're doing more proactively. What are the kinds of customers that you hope to land with monday DB, the enhancements you're putting in through that you could not otherwise previously get? And also with this partnership initiative where you're opening up the platform for partners to develop kinds of applications, new kinds of applications. What is your goal here? Is it the long tail of apps that you don't have the resources development that you hope the partners can get you into new markets? Or is it new geographies? Or is it just to open up the platform even more to existing customers so they can exploit and new capabilities more. Curious to get your take on what you want to accomplish with the opening up of the platform initiative.

恭喜本季。對團隊來說太棒了。我很好奇您對 Monday DB 的看法，我知道它將在 2024 年推出。這項計劃是基於任何特定的客戶回饋，還是您更積極主動地在做的事情。您希望透過 Monday DB 吸引哪些類型的客戶？您希望透過 Monday DB 帶來哪些以前無法獲得的增強功能？此外，透過此合作計劃，您可以為合作夥伴開放平台，開發各種應用程式和新型應用程式。你在這裡的目標是什麼？您是否缺乏資源開發應用程式的長尾效應，希望合作夥伴能幫助您進入新的市場？還是新的地理位置？或者只是向現有客戶進一步開放平台，以便他們能夠更多地利用新功能。我很好奇，想知道您對開放平台計畫想要實現什麼目標的看法。

Kash, it's Roy. Thank you for the question. So monday DB is something that is in the core of our infrastructure like we are. We've always highlighted how being schemaless and how we build the platform on top of a solid backbone that enable our customers to build whatever they want. Monday DB is the next phase of that. We want to make it more scalable. And like a lot of customers tell us we're doing like -- they can do flip flops with monday. They can do whatever they want. It's magic. And I think we're monday DB comes in, it takes that magic in a scalable way and allows to build like way bigger applications on top of us. And that opens up the door for larger installment -- like different use cases that require like millions of (inaudible) that you think -- it opens the door for larger customers in many ways. But again, it's like an infrastructure to move us to the next level.

卡什，我是羅伊。謝謝你的提問。因此，Monday DB 就像我們一樣，是我們基礎設施的核心。我們一直強調如何實現無模式以及如何在堅實的基礎上建立平台，使我們的客戶能夠建立他們想要的任何東西。星期一 DB 是下一個階段。我們希望使其更具可擴展性。正如許多顧客告訴我們的那樣，我們正在做這樣的事情——他們可以在周一做人字拖。他們可以做任何他們想做的事。這太神奇了。我認為，Monday DB 即將面世，它以可擴展的方式展現了這種魔力，並允許在我們之上建立更大的應用程式。這為更大規模的分期付款打開了大門——就像您認為的需要數百萬（聽不清楚）的不同用例一樣——它在許多方面為更大的客戶打開了大門。但同樣，它就像一個基礎設施，將我們推向下一層。

Regarding the marketplace, what we think is that, first of all, when we started it, we just wanted to open it up to everyone and see what they do. And they surprise us all the time with what they do. And I think you named 2 of the great points, like 1 is obviously the long-term solving a lot of problems we would not get to for our customers. And another thing is go-to-market, like [main] market add those solutions and bring us more audience.

關於市場，我們認為，首先，當我們啟動它時，我們只是想向所有人開放它，看看他們會做什麼。他們的所作所為總是讓我們感到驚訝。我認為您提到了兩個很好的觀點，例如，第一點顯然是長期解決許多我們無法為客戶解決的問題。另一件事是進入市場，例如[主要]市場添加這些解決方案並為我們帶來更多的受眾。

And I think a third thing, which is very important is the fact that our customers choose us when we win the deals because they see that they can build the future on monday. Even if they don't know exactly what they need to build now, they know that whatever they want to, they never hit a wall because the platform is open and they can always take a partner to build whatever they want, they can connect bespoke software and a lot of those stuff. So in that respect, it's also super important for us.

我認為第三件事非常重要，那就是當我們贏得交易時，客戶會選擇我們，因為他們看到他們可以在周一創造未來。即使他們現在還不清楚自己需要建立什麼，但他們知道，無論他們想做什麼，都不會遇到障礙，因為平台是開放的，他們可以隨時與合作夥伴一起建立他們想要的任何東西，他們可以連接客製化軟體和很多這樣的東西。所以從這個方面來說，這對我們來說也非常重要。

The next question is from Jackson Ader from SVB MoffettNathanson.

下一個問題來自 SVB MoffettNathanson 的 Jackson Ader。

The first one is on the commentary on the net dollar retention rate and specifically in the high end that kind of $50,000 and above. What is kind of driving the weakness there? Is it just people not expanding upon their annual renewals as much as you thought. Is there any downshift in terms of the number of seats at some of your customers? Just interested in those dynamics?

第一個是關於淨美元留存率的評論，特別是 50,000 美元及以上的高端留存率。是什麼原因造成那裡的弱點？是不是人們並沒有像你想像的那樣擴大他們的年度續約範圍？您的某些客戶的座位數是否有減少？只是對這些動態感興趣？

Jackson, it's Eliran. So as a reminder, with the enterprise accounts, we are coming off historical highs, what we see is basically, I think this is something that we started seeing also last year, larger customers become more cautious with their budget. It's mostly seeing a slowdown in expansion of seat. So on one hand, we see a very healthy traffic of new customers, new logos, that's actually buying monday software. But on the other hand, you see the amount of expansion within existing customer base mainly the big one is less than what you used to see in the past. We believe it's current [macro] uncertainty that has been driving most of this behavior.

傑克遜，我是伊萊蘭。因此，提醒一下，就企業帳戶而言，我們正處於歷史高位，我們看到的情況基本上是，我認為這也是我們去年開始看到的現象，大客戶在預算方面變得更加謹慎。主要表現是座位數擴張速度放緩。因此，一方面，我們看到新客戶、新標誌的流量非常健康，他們實際上都在購買 MoniMonday 軟體。但另一方面，你會看到現有客戶群的擴張量（主要是大客戶量）比過去少。我們認為，當前宏觀的不確定性是造成這種行為的主要原因。

But on the other hand, the positive is that overall NDR remains steady at 120%. The growth churn has held up well. And we're still seeing, as I said, solid new customers demand. We would say that by the end of this year, we expect additional probably decline due to mostly to the macroeconomy headwind.

但另一方面，正面的一面是，整體NDR仍穩定在120%。成長波動保持良好。正如我所說，我們仍然看到穩固的新客戶需求。我們預計，到今年年底，由於宏觀經濟逆風的影響，可能還會出現進一步下滑。

Okay. And actually, if we just stick a little bit on that theme, but maybe geographically speaking, Europe has held up maybe better than what we expected, just dropping in the revenue mix by only 1% year-over-year. I'm just curious, in that geography, what you guys are seeing and maybe whether it's kind of out or underperformed your expectations in '22 and what we should be thinking about for '23?

好的。實際上，如果我們稍微堅持這個主題，但從地理位置來說，歐洲的表現可能比我們預期的要好，收入結構同比僅下降了 1%。我只是好奇，在那個地區，你們看到了什麼，也許它在 22 年的表現是否超出或低於你的預期，以及我們應該為 23 年考慮什麼？

So maybe just to take a step back, as a reminder, 70% of our customers are nontech and 30% is tech. So when you think about the softness in demand that we saw last year, it monthly was around tech. So when you think about Europe, we said that we see a more of -- less of an impact of what potentially others are seeing because of the level of exposure that we have. So I think that we don't see significant changes to what we saw in the past. It's relatively stable and actually getting into the new year, we see even some positive signs yet to be seen for the year -- remainder of the year.

所以也許只是退一步來說，提醒一下，我們 70％ 的客戶是非技術人員，30％ 是技術人員。因此，當您想到我們去年看到的需求疲軟時，它每月都與技術有關。因此，當你想到歐洲時，我們說，由於我們的曝光程度，我們看到的可能受到其他人看到的影響或多或少會較小。所以我認為，與過去相比，我們沒有看到重大變化。它相對穩定，實際上進入新的一年，我們甚至看到了今年剩餘時間尚未出現的一些積極跡象。

The next question is from George Iwanyc from Oppenheimer.

下一個問題來自奧本海默公司的喬治‧伊凡尼克 (George Iwanyc)。

Congratulations on the results. Roy or Eran, maybe if you can give us some more color on the competitive space, you continue to add a solid number of new customers? Are these lands mostly new? And are you seeing displacement from other work management solutions or mostly from productivity tools.

恭喜你取得這樣的成績。 Roy 或 Eran，也許你們可以為我們提供一些有關競爭空間的更多信息，你們是否繼續增加大量新客戶？這些土地大多是新的嗎？您是否看到了其他工作管理解決方案或主要是生產力工具的取代。

Please, we have lost connection with the speaker team. Please standby while we reconnect them.

請注意，我們與演講者團隊失去了聯繫。請等待我們重新連線。

(technical difficulty)

（技術難度）

Thank you for your patience, we are now reconnected with the speaker team.

感謝您的耐心等待，我們現在已與演講者團隊重新聯繫。

Roy or Eran, I basically was asking about the competitive environment. The pipeline generation you see? Is that mostly still greenfield? Or are you displacing other productivity tools or work management tools at this point?

羅伊 (Roy) 或埃蘭 (Eran)，我基本上是在詢問競爭環境。您看到管道生成了嗎？那裡大部分還是綠地嗎？還是您現在正在取代其他生產力工具或工作管理工具？

It's Roy, sorry for the disconnect. So when we're looking into new customers that joined the platform, we still see it as greenfield also, the majority of the deals we do are not against any other competitor. And within the ones that we do compete with someone we win mostly because of our Work OS because they want the platform, they want the fact that they can do a lot of things with it towards the future.

我是羅伊，抱歉，我打斷了你。因此，當我們尋找加入該平台的新客戶時，我們仍然將其視為一片新天地，我們所做的大多數交易都不是針對任何其他競爭對手的。在我們與其他公司競爭的過程中，我們之所以能獲勝，主要是因為我們的工作作業系統，因為他們想要這個平台，他們希望在未來可以用它做很多事情。

Okay. And Eliran, maybe digging into the hiring that you expect to do this year, how front loaded is that? And what things will you be monitoring to kind of judge the pace of future hiring in upcoming quarters?

好的。而 Eliran，也許深入研究一下您預計今年進行的招聘，前期投入有多大？您將監控哪些因素來判斷未來幾季的招募速度？

So George, just to relate to that, we are mostly focused on building out the platform and product offering. So the focus will be mostly on R&D and product. Different to prior year, we are going to hire probably around 10%, give or take based on our needs. It's not going to be necessarily front loaded. Maybe there is going to be slightly skewed towards H1. But overall, we are expecting more of a balanced hiring process throughout the year. And obviously, if we need to hire more, then we make a decision as we progress.

喬治，就此而言，我們主要專注於建立平台和產品供應。因此重點將主要放在研發和產品上。與往年不同的是，我們今年將招募約 10% 的員工，具體數量取決於我們的需求。它不一定是前置的。或許會稍微偏向 H1。但總體而言，我們期望全年的招募流程更加平衡。顯然，如果我們需要雇用更多員工，我們會在進展過程中做出決定。

The next question comes from DJ Hynes from Canaccord.

下一個問題來自 Canaccord 的 DJ Hynes。

So maybe just building off that last line of thinking there, Eliran, I mean, in the shareholder letter in your prepared remarks, it said one of the focus areas this year was to expand the upmarket growth engine. You had a great slide in the deck that shows your efficiency metrics are hanging in there really well. Clearly, there's uncertainty out there. So just help us understand kind of how you're thinking about executing on the go-to-market side of things, hiring there? Kind of what are the key initiatives we should be watching for this year?

因此，也許只是基於最後一種思路，Eliran，我的意思是，在您準備好的致股東的信中，它說今年的重點領域之一是擴大高端成長引擎。您的簡報中有一張很棒的幻燈片，顯示了您的效率指標確實很好。顯然，存在不確定性。那麼，請幫我們了解一下，您是如何考慮執行行銷方面的工作，以及招募事宜的？今年我們應該關注哪些主要措施？

Yes. So in terms -- this is Eran. Thank you, DJ. So in terms of our go-to-market, we have a bunch of plans. So definitely, the new products are a great way to expand our go-to-market. The fact that we can now market specifically the CRM product, the product, the marketing product, just opens up monday to new audiences, a new type of buyer. And just as a reminder, once a customer starts using one of those products, they can expand to additional products and eventually get the whole company into the monday Work OS platform. So definitely, this is a big game changer for us in terms of our ability to go-to-market different kind of buyers, different personas within the organizations.

是的。所以從術語上來說——這就是 Eran。謝謝你，DJ。因此，就我們的市場進入而言，我們有很多計劃。因此，新產品無疑是擴大我們市場佔有率的絕佳途徑。事實上，我們現在可以專門行銷 CRM 產品、產品、行銷產品，這為新的受眾、新的買家類型打開了大門。提醒一下，一旦客戶開始使用其中一種產品，他們就可以擴展到其他產品，並最終讓整個公司納入 Monday Work OS 平台。因此，毫無疑問，這對於我們向組織內不同類型的買家、不同角色推出產品的能力而言是一個巨大的改變。

Also, this year, we're going to double down on our outbound motion to expand our channels, marketing channels, do some more B2B enterprise focused marketing. So all those efforts together will allow us to continue to execute. In addition to the great momentum we've already seen with performance marketing that we mentioned, given that most of the other players in the market have pulled back, we're able to achieve now a greater market share and greater efficiency. So combine all those things together, we see great momentum in terms of acquiring new customers.

此外，今年我們將加倍努力拓展我們的通路和行銷管道，開展更多以 B2B 企業為中心的行銷。因此，所有這些努力將使我們能夠繼續執行。除了我們提到的績效行銷已經展現出的強勁勢頭之外，考慮到市場上大多數其他參與者已經退出，我們現在能夠獲得更大的市場份額和更高的效率。因此，將所有這些因素結合起來，我們看到了獲取新客戶方面的巨大勢頭。

Maybe DJ, this is Eliran. Just to -- Sorry DJ, just to add to what Eran said. Last year, we hired increased the headcount in more than 50%, and we believe we are now well positioned to go to 2023 and beyond in terms of sales and marketing headcount with regards to going upmarket as well.

也許是 DJ，這是 Eliran。只是——抱歉 DJ，我只是想補充 Eran 所說的話。去年，我們招募的員工數量增加了 50% 以上，我們相信，就銷售和行銷員工數量以及進軍高端市場而言，我們現在已做好充分準備，可以在 2023 年及以後繼續保持領先地位。

The next question is from Derrick Wood from Cowen & Company.

下一個問題來自 Cowen & Company 的 Derrick Wood。

Great. Congratulations as well. I guess just a follow-up to that. You did hire your first-ever CRO in November. Just wanted to hear what the kind of impetus was to bring on a CRO and what changes you may be making on the go-to-market side.

偉大的。也恭喜你。我想這只是對此的一個後續行動。您確實在 11 月聘請了第一位 CRO。只是想聽聽引入 CRO 的動力是什麼，以及您在行銷方面可能做出哪些改變。

Yes. Thanks, Derrick. This is Eran . So actually Yoni, our CRO is actually promoted from within the company. He was managing both the sales team and the marketing team, and we promoted him to be the CRO of the company, basically adding also the management of the customer success group and the customer support in addition to our partners group. So first of all, we're really proud of Yoni, he's been doing a phenomenal job. We basically in selves create a wholesale team from scratch and done a great job.

是的。謝謝，德里克。這是 Eran。實際上，我們的 CRO Yoni 是從公司內部提拔起來的。他同時管理銷售團隊和行銷團隊，我們提拔他為公司的首席風險官，除了合作夥伴團隊外，還負責管理客戶成功團隊和客戶支援團隊。首先，我們為 Yoni 感到非常自豪，他做得非常出色。我們基本上是從零開始創建了一支批發團隊，並且做得非常出色。

And with this change within the company, we believe this will allow for a better cooperation between the different teams, will drive greater efficiency, the team is working together and more optimized to go-to-market, the fact that you have such a wide look -- any -- starting from the marketing team all the way to the sales and partners just give so much energy to all the teams and much better collaboration. So we're already seeing the fruits of that, and I feel that going into 2023, this will even create greater efficiency within those teams.

隨著公司內部的這一變化，我們相信這將使不同團隊之間更好地合作，提高效率，團隊將齊心協力，更優化地進入市場，事實上，你有如此廣泛的視野——從行銷團隊一直到銷售和合作夥伴，為所有團隊提供瞭如此多的精力和更好的協作。因此，我們已經看到了其成果，我認為到 2023 年，這甚至會提高這些團隊的效率。

Got it. That's helpful. And just maybe a follow-up. So it sounds like from a macro standpoint, you're not seeing a whole lot of headwind on the SMB side. It's mainly just from slower expansion activity in the upmarket customers. Why I guess -- why is it that you -- we've heard more pressure from SMB from other companies? Why is it that it sounds like you're seeing more stability on the SMB side.

知道了。這很有幫助。也許只是後續行動。因此，從宏觀角度來看，你似乎沒有看到中小企業方面面臨太多阻力。這主要是因為高端客戶的擴張活動放緩。我猜為什麼——為什麼我們聽到來自其他公司的中小企業施加了更大的壓力？為什麼聽起來你看到 SMB 方面更加穩定？

That's -- it's Roy. It's really hard to say, but I feel that like SMBs want to consolidate and have a product that solves more problems for them. That's typically the case. And monday is obviously the tool of tools, and they can do so much with us. Having said that, the situation there is very stable, like you said, and we do see a very healthy top line demand as Eran mentioned, with our performance marketing and getting new customers to join monday.

那就是——是羅伊。這真的很難說，但我覺得中小企業想要整合並擁有一款可以為他們解決更多問題的產品。通常情況就是這樣。星期一顯然是工具中的工具，它們可以為我們做很多事情。話雖如此，正如您所說，那裡的情況非常穩定，而且正如 Eran 提到的，透過我們的績效行銷和週一吸引新客戶加入，我們確實看到了非常健康的頂線需求。

(Operator Instructions) The next question is from Fred Lee from Credit Suisse.

（操作員指示）下一個問題來自瑞士信貸的 Fred Lee。

Very nice quarter. I noticed R&D in dollar terms declined sequentially for the very first time. I was wondering if you could talk about how we should think about leverage going forward, especially as you add the features and roll out your into existing customers and investing in new products like on monday DB? And then if you could also share year-end headcount R&D.

非常好的季度。我注意到以美元計算的研發支出首次持續下降。我想知道您是否可以談談我們應該如何考慮未來的槓桿作用，特別是當您添加功能並推廣到現有客戶並投資新產品（例如週一 DB）時？然後，如果您也可以分享年終研發人員數量。

Yes. So with regards to R&D, Fred, it's Eliran. So the fourth quarter is 18% for the year, it's 16% for the fourth quarter. Reason why it's mainly due to the fact that we did some cost adjustments at the end of the year. There is the impact of the Israeli dollar shekel exchange rate because the dollar was strong. And on this front, in Israel with all the R&D based in Israel, you get benefits on the payroll, which is most of the cost for R&D.

是的。因此，就研發而言，弗雷德，是 Eliran。因此，第四季的全年成長率為 18%，第四季的成長率為 16%。之所以主要是因為我們在年底做了一些成本調整。由於美元強勢，以色列美元謝克爾匯率受到一定影響。在這方面，由於以色列所有的研發都位於以色列，因此可以獲得薪資福利，而薪資福利佔研發成本的大部分。

And when you think about going into 2023 and 2024, we are in accordance with our long-term operating plan, which was around 22% to 24%. And we believe it's going to be on the lower side of it, around roughly 20%. We're never very significant in terms of R&D as a percentage of revenue, and this is pretty much the kind of the ballpark, I would assume that we will need to maintain.

當你考慮進入 2023 年和 2024 年時，我們將按照我們的長期營運計劃，大約 22% 到 24%。我們認為這個比例會比較低，大約是 20%。我們的研發支出佔收入的比例從來都不是很高，我認為這基本上就是我們需要維持的大致水準。

Obviously, if we will need to invest further on the platforms and on monday DB, as we said, already took it into account. But if we feel or we see that we need more resources and more headcount than there is no -- we will obviously hire them.

顯然，如果我們需要在平台上進一步投資，那麼週一 DB 就像我們所說的已經考慮到了這一點。但如果我們感覺或發現我們需要更多的資源和更多的員工——我們顯然會僱用他們。

And then also the year-end headcount, if you don't mind, in R&D?

如果您不介意的話，那麼年底研發部門的員工總數是多少？

The year-end headcount, yes, the problem is north of 200. I don't remember the exact number.

是的，年終員工人數有 200 多人，問題不大。我不記得具體數字了。

Yes. But maybe just to add to Eliran, to give you a perspective, most of the -- both majority of the hiring for 2023 is going to be focused on R&D resources. For us, this is the main part of the business we've plan to expand next year and put most of the efforts and the budgeting to. So we're continuing -- and like always, we're going to deliver with very high execution also in 2023. We have got very big plans.

是的。但也許只是為了向 Eliran 補充一點，給你一個觀點，2023 年的大部分招募都將集中在研發資源上。對我們來說，這是我們計劃明年擴展的業務的主要部分，我們將大部分精力和預算投入其中。因此，我們會繼續下去——像往常一樣，我們也將在 2023 年以非常高的執行力實現目標。我們有一個非常宏偉的計劃。

The next question comes from Brent Thill from Jefferies.

下一個問題來自 Jefferies 的 Brent Thill。

Just back on the guidance, I just wanted to better understand what you're embedding for the year in terms of macro or SMB churn. It's pretty drastic slowdown in growth. Is this just the old-fashioned conserves or are you baking in anything else to give yourself a little more of a room?

回到指導上，我只是想更好地了解您在宏觀或 SMB 流失方面今年嵌入的內容。經濟成長放緩相當劇烈。這僅僅是老式的果醬嗎？還是您正在烘烤其他東西以給自己更多空間？

Brent, it's Eliran. So we believe this is going to be pretty much the same macro economy condition that we see now, they will persist by the end of the year. We took it into account. We did also take into account the -- some slowdown we see on NDR from enterprise accounts. It's also baked into the numbers. Other than that, we believe that the guidance is consistent with what we see as of now and also with improving overall efficiency on one hand, but the challenging macro economy. So we feel this is a number that we can achieve.

布倫特，我是艾利蘭。因此，我們相信這將與我們現在看到的宏觀經濟狀況大致相同，並且這種狀況將持續到今年年底。我們已考慮到這一點。我們也確實考慮到了——我們看到企業帳戶的 NDR 速度有所放緩。它也體現在數字中。除此之外，我們認為指引與我們目前所看到的情況一致，一方面與整體效率的提升一致，另一方面與宏觀經濟的挑戰一致。因此我們認為這是我們可以實現的數字。

And that enterprise slowdown, is that just as it relates to the macro having to hold on those customers slowing? Or is there something from an internal execution that you'd like to do better there?

那麼企業放緩是否與宏觀經濟必須控制客戶放緩有關？或者從內部執行的角度來說，您希望做得更好嗎？

Yes. This is Eran. Thanks, Brent. So I feel it's more about the macro environment and the fact that those enterprises are a bit more cautious going to 2023, maybe slowing down hiring. Just as a reminder, the way we charge customers is per user. So the fact that they might be slowing down hiring might have an effect here. But definitely, we're also seeing some optimism and some good momentum as we started the year. So I think there's some optimism making to that going forward.

是的。這是埃蘭。謝謝，布倫特。所以我覺得這更多的是與宏觀環境有關，事實上這些企業對 2023 年更加謹慎，可能會放慢招募速度。提醒一下，我們會按照每個用戶來收費。因此，他們放慢招募速度可能會產生影響。但毫無疑問，我們在年初也看到了一些樂觀情緒和良好勢頭。所以我認為未來還是有樂觀情緒的。

The next question is from Arjun Bhatia from William Blair.

下一個問題來自 William Blair 的 Arjun Bhatia。

So can you hear me? All right. Perfect.

那你聽得到我說話嗎？ 好的。完美的。

I might congrats on a good quarter. I wanted to touch on the product verticalization efforts. I think you mentioned that a little bit in the shareholder letter, but I'm curious what your road map is on verticalization and maybe what role the partners can play there, if any, in helping to reach verticals where you may not have a presence right now?

我可能會對本季度的良好表現表示祝賀。我想談談產品垂直化的努力。我認為您在致股東的信中提到了這一點，但我很好奇您在垂直化方面的路線圖是什麼，以及合作夥伴可以發揮什麼作用（如果有的話），以幫助您進入目前可能尚未涉足的垂直領域？

Thank you. It's Roy. So we are relying a lot on the partners to both expand our marketplace offerings and also to provide a lot of services and help us with customers in territories we are not present in. And I think it's a great power that we have, that we have so many engaged partners just recently, a lot of them like 170 of them flowing to Israel. We had a large event here. And it was very exciting to see how they're going to build on us and really we shared with them the road map of the marketplace and how much they can do there. So it's really exciting.

謝謝。是羅伊。因此，我們非常依賴合作夥伴來擴大我們的市場產品，並提供大量服務，幫助我們服務尚未涉足的地區的客戶。我認為這是我們擁有的強大力量，我們最近擁有如此多的合作夥伴，其中很多，例如 170 個，都來自以色列。我們在這裡舉辦了一場大型活動。看到他們將如何在我們的基礎上發展，我們感到非常興奮，我們確實與他們分享了市場路線圖以及他們可以在那裡做多少事情。這真的很令人興奮。

And maybe 1 follow-up for Eliran. As you think about just the sales and marketing spend, going into next year. Obviously, you're seeing efficiency there on customer acquisition. But how do you think about the trade-off between performance marketing and sales-led spend on the go-to-market side in 2023?

也許還有 1 個針對 Eliran 的後續行動。當您考慮銷售和行銷支出時，就會進入明年。顯然，您看到了客戶獲取方面的效率。但是，您如何看待 2023 年在市場推廣方面績效行銷和銷售主導支出之間的權衡？

Arjun. So the short answer is that it will be pretty much in the same ratio that we saw in the past. I would say around 30% is going to be performance marketing based on efficiency and around 70% is sales and partners. So this is kind of the ratio that we believe is going to continue also this year.

阿瓊。所以簡短的回答是，它將與我們過去看到的比例基本上相同。我認為大約 30% 是基於效率的績效行銷，大約 70% 是銷售和合作夥伴。因此，我們認為今年這一比例還將繼續保持。

The next question is from Robert Simmons from D.A. Davidson.

下一個問題來自 D.A. 的 Robert Simmons。戴維森。

Nice quarter. I was looking at your retention number, specially in the large enterprises. And were you disclosed the fourth quarter number, can you talk about what you actually saw in the quarter itself in terms of how that trended in the summer quarter and then also the cement growth retention what you saw there?

不錯的季度。我正在查看您的保留數字，特別是在大型企業中。您是否披露了第四季度的數據，您能否談談您在本季度實際看到的情況，例如夏季季度的趨勢如何，以及您看到的水泥增長保持情況？

Robert, it's Eliran. So from an overall -- the NDR remains steady with -- for the entire population with 120%. And gross churn has held up well. We're still seeing solid new customer demand and overall sales keep growing. On the larger accounts, we saw a decline as I said at the beginning of the call, the reminder is that we come in off historical lines. We see larger customers that become more cautious with their budgets. They are more conscious with the level of spend. And we do see a slowdown in expansion of seats, mostly driven, we believe, by current macro uncertainty that is driving this behavior.

羅伯特，我是伊萊蘭。因此，從整體來看，NDR 保持穩定，整個人口的比例為 120%。總流失率保持良好。我們仍然看到強勁的新客戶需求並且整體銷售額持續成長。正如我在電話會議開始時所說的那樣，在較大的帳戶上，我們看到了下降，這提醒我們我們已經偏離了歷史水平。我們看到大客戶在預算方面變得更加謹慎。他們對支出水準更加在意。我們確實看到席位擴張有所放緩，我們認為這主要是由於當前宏觀不確定性導致了這種行為。

Would it be possible to give any clarification on any of those factors or is that not?

是否可以對這些因素作出澄清？還是不能？

Can you repeat the question, please?

您能重複一下這個問題嗎？

Would it be possible to get a quantification on any of those factors in the quarter?

是否有可能在本季對這些因素進行量化？

Don't have it right now with me the quantities of each contribution. But to the NDR -- so the larger one would be the slowdown in expansions. So this is the main factor that drove the NDR. You can see that and they are of larger customers slow down more sharply than the other ones.

現在我還沒有掌握每項貢獻的數量。但對 NDR 來說，更大的問題是經濟擴張的放緩。所以這是推動 NDR 的主要因素。您可以看到，他們的大客戶速度比其他客戶放慢得更快。

The next question is from Jason Celino from KeyBanc.

下一個問題來自 KeyBanc 的 Jason Celino。

Very nice to see in the customer win at the major financial [introduction] in the prepared remarks. When we think about the slowdown in the seat expansions at the enterprise, has it been mainly limited to your [tech] exposure curious there.

很高興看到客戶在主要金融[介紹]中贏得準備好的評論。當我們考慮企業座位擴張放緩時，這是否主要局限於您在那裡好奇的[技術]曝光。

Yes. Thanks, Jason. This is Eran. Yes, I would say the tech sector, again, like the thing that drives NDR hub is mostly a company spending means hiring more people, getting more people on board into the product. Definitely, the tech sector has suffered more, but just as a reminder, it's only 30% of our customers, the other 70% were less impacted, but it's something we are seeing across the board within companies. And again, it's hard to tell how much is that a large organization being more cautious and how much is that will stay with us going into 2023, but this is the current trend we're seeing.

是的。謝謝，傑森。這是埃蘭。是的，我想說科技業，再次強調，推動 NDR 中心發展的主要是公司支出，這意味著僱用更多的人，讓更多的人參與產品。毫無疑問，科技業遭受的打擊更大，但需要提醒的是，這只影響了我們 30% 的客戶，其餘 70% 的客戶受到的影響較小，但這種情況在公司內部普遍存在。再說一次，很難說大型組織在多大程度上會變得更加謹慎，以及這種謹慎在多大程度上會持續到 2023 年，但這是我們目前看到的趨勢。

Okay. Great. And if I were to kind of summarize the top of funnel trends. It sounds like things are still very strong. I'm curious on like the linearity that you saw in Q4, I guess how did that type of funnel look in December versus maybe early in the quarter?

好的。偉大的。如果我要總結漏斗趨勢的頂部。聽起來事情仍然很強勁。我對您在第四季度看到的線性感到好奇，我想問一下 12 月與本季度初相比，這種漏斗看起來如何？

It's Roy. So historically, we've seen that the first quarter is much stronger, people coming back from vacation in New Year's. And so this first quarter, we actually anticipated it will be less strong than it is. So we do see it as a very positive sign. We see a very strong demand and -- so that's like a super positive for us.

是羅伊。從歷史上看，我們看到第一季的表現更加強勁，人們在新年假期回來。因此，我們實際上預計第一季的業績不會像現在這麼強勁。因此我們確實認為這是一個非常積極的信號。我們看到了非常強勁的需求——這對我們來說是一個非常積極的消息。

The next question is from Andrew DeGasperi from Berenberg.

下一個問題來自貝倫貝格的 Andrew DeGasperi。

I guess -- I know you talked a lot about the retention rate, and I know this being a 12-month trailing metric. I guess what I'm trying to get out is, is this metrics going to step down sequentially for the larger cohorts, the over 10 users?

我想——我知道您談了很多關於保留率的問題，而且我知道這是一個 12 個月的追蹤指標。我想我想弄清楚的是，對於更大的群體（超過 10 個用戶），這個指標是否會依次下降？

Andrew, this is Eran. Yes, we anticipate that it might go down in the larger accounts between 5% to 10% more this year. There is a lagging effect having in mind due to the trailing 12 months, and we are counting at weighted average. So obviously, the impact is going to be throughout the year. So I believe this is probably the trend that we are seeing.

安德魯，這是埃蘭。是的，我們預計今年大額帳戶的存款餘額可能會下降 5% 到 10%。由於過去 12 個月存在滯後效應，因此我們採用加權平均值計算。顯然，其影響將持續全年。所以我相信這可能是我們所看到的趨勢。

And then secondly, on the sales and marketing savings, I know you mentioned performance marketing competitors pulling back. I just wanted to dig a little deeper in terms of who those competitors are. Are we talking about other collaboration work management platforms? Is it a bigger cohort of that?

其次，關於銷售和行銷節省，我知道您提到了績效行銷競爭對手的退縮。我只是想更深入地了解這些競爭對手是誰。我們談論的是其他協作工作管理平台嗎？這樣的群體規模更大嗎？

It's Roy. So generally, when we say that, we mean the overall competition on the key words and on those ads. So we don't necessarily know who they are. We just see that we are getting more customers for less money.

是羅伊。所以一般來說，我們這麼說，是指關鍵字和廣告的整體競爭。所以我們不一定知道他們是誰。我們只是發現我們用更少的錢獲得了更多的客戶。

The next question comes from Shebly Seyrafi from FBN Securities.

下一個問題來自 FBN Securities 的 Shebly Seyrafi。

So it looks like you're going to be hiring in product and R&D in '23. Does that mean you're going to have lower sales and marketing headcount at the end of '23? Just talk about how you intend to invest in sales and marketing this year.

所以看起來你們將在 23 年招募產品和研發人員。這是否意味著到 23 年底，你們的銷售和行銷人員數量將會減少？只要談談您今年打算如何投資銷售和行銷。

Shebly, it's Eliran. So yes, we said that we are going to focus on product and R&D. It's not necessarily mean that we are going to have lower headcount with the sales and marketing. If we need to hire, there is going to be hiring there as well. Currently, we are continuing with the number that we have, but we see the bulk of the investment in R&D.

謝布利，我是伊萊蘭。是的，我們說過我們將專注於產品和研發。這並不一定意味著我們將減少銷售和行銷部門的員工數量。如果我們需要招聘，那裡也會招聘。目前，我們仍在維持現有數量，但大部分投資都投入了研發領域。

Okay. All right. And I just want to elaborate on the competitor pullbacks. You just answered it to a prior question. But just if you can elaborate on that. For example, do you have a number of competitors that you saw pullback? When did you see it if there was a time that was more noticeable? And what is your response? Are you going to be more aggressive now against your competition? And just describe how you might become more so.

好的。好的。我只是想詳細說明一下競爭對手的撤退。您剛剛回答了之前的問題。但如果你能夠詳細說明一下的話。例如，您是否看到一些競爭對手出現衰退？如果有更明顯的時候，你是什麼時候看到它的？您的反應是什麼？現在您會更積極地對抗競爭對手嗎？並描述如何變得更加如此。

Shebly, it's Roy. So yes, I'll elaborate more on that. So essentially, we bid on ads in Google and Facebook and YouTube in all those areas of performance marketing. And we see that we can get the same ad placements for lower costs. So that's essentially what we say when we say less competition. So like to be in first place, we need to pay way less. And then we get a lot more customers in because of that. And our approach is that -- we have a big brand. We have our own measurement -- internal measurement tools that we've built that show us exactly the ROI on every dollar we spend on marketing. So we know what's working.

謝布利，我是羅伊。是的，我會對此進行更詳細的說明。因此，從本質上講，我們在 Google、Facebook 和 YouTube 上的所有績效行銷領域中競價廣告。我們發現，我們可以以更低的成本獲得相同的廣告展示位置。所以，這基本上就是我們所說的競爭減少。因此，為了獲得第一名，我們需要支付更少的費用。因此，我們獲得了更多的客戶。我們的方法是──我們擁有一個大品牌。我們有自己的衡量標準——我們建立的內部衡量工具可以準確顯示我們在行銷上花費的每一美元的投資回報。所以我們知道什麼是有效的。

So if there is a campaign that is working less good, we'll lower the bid automatically almost. And so I think this is a competitive advantage we have over others where they needed to cut back as they just did, and we know what's working. And so what's happened is that we've even increased the budget we have for performance marketing in January and February because we know and we see what's working, and we have internal predictions to what we'll get out of it. So I think we're doing it super responsibly. We know exactly what the ROI is. And that's the strategy and what it's been up until now.

因此，如果某個活動的效果不太好，我們就會自動降低出價。因此，我認為這是我們相對於其他公司的競爭優勢，其他公司需要像他們剛才那樣削減開支，而我們知道什麼是有效的。因此，我們甚至增加了 1 月和 2 月的績效行銷預算，因為我們知道並看到了什麼是有效的，我們對我們將從中獲得什麼有內部預測。所以我認為我們做得非常負責任。我們確切地知道投資報酬率是多少。這就是我們的策略，也是迄今為止的策略。

The next question comes from Scott Berg from Needham.

下一個問題來自尼德姆的斯科特·伯格。

I want to congrats on strong quarter. I guess I'll leave you with one in essence of time here. Given the success that you've had on the marketing side, and those numbers have actually trended down all year. I know after the large Super Bowl ad last year. It sounds like FX was a benefit in the quarter. I guess, why not step on marketing a little bit more if the cost of customer acquisition is actually coming down, you continue to have success there and the competitors are pulling away, why not take this opportunity to even capture more market?

我想對本季的強勁表現表示祝賀。我想我會在這裡給你留下一個本質上的時間。考慮到您在行銷方面取得的成功，這些數字實際上全年呈下降趨勢。我知道這是去年超級盃大型廣告之後的事。聽起來外匯是本季的一個收益。我想，如果客戶獲取成本確實下降了，你繼續在那裡取得成功，而競爭對手正在拉開距離，為什麼不加大行銷力度呢？為什麼不藉此機會佔領更多的市場呢？

Scott, it's Roy. So yes, we have been doing that up to the point that we are comfortable with the results. That's what BigBrain does. Like it shows us exactly how further we can step on the gas, and we have. So there isn't any point in extending it more, either there is no -- because we won't see the results that we want if we push it further. But we have and we have extended the marketing.

史考特，我是羅伊。是的，我們一直在這樣做，直到我們對結果感到滿意為止。這就是 BigBrain 所做的。就像它向我們展示了我們還能把油門踩到多遠，而我們也確實這麼做了。因此，進一步延長是沒有意義的，因為如果我們進一步延長，我們將不會看到我們想要的結果。但我們已經擴大了行銷範圍。

Scott, just to add to what Roy said, from our perspective, this is what we are also going to look at this year. If we see opportunities -- continue to see the opportunities with efficiency, then we are not going to pull back. We're actually going to push on the gas in order to generate more leads and more growth for the business.

史考特，我補充一下羅伊所說的，從我們的角度來看，這也是我們今年要關注的問題。如果我們看到機會——繼續有效地看到機會，那麼我們就不會退縮。我們實際上將加大力度，以便為業務帶來更多潛在客戶和更多成長。

The final question today comes from Ivan Feinseth from Tigress Financial Partners.

今天的最後一個問題來自 Tigress Financial Partners 的 Ivan Feinseth。

Also, congratulations on the great quarter and great year. Can you give us some insight or discussion on some of your AI initiatives and potential AI integration capabilities onto your platform?

此外，恭喜本季和本年度取得的輝煌成績。您能否就您的一些人工智慧計劃以及平台上潛在的人工智慧整合能力向我們提供一些見解或討論？

Ivan, it's Roy. So it's obviously been amazing, right, like such a huge change in such a short time in AI. And now that we see that like the barrier was lowered so much to create such powerful AI tools. What we naturally do at monday, we open up the platform and allow anyone to build on top of that. So we have already added many layers that enable anyone, including us, to build AI tools on top of monday. We'll soon have an AI Hackathon where we'll invite anyone to build on top of the platform. And essentially, have a dedicated section within the marketplace for any AI tool that can benefit anyone. And I think that's like super exciting. And we'll see like long-tail solutions for specific industries and then it's like exciting.

伊万，我是羅伊。所以這顯然是令人驚訝的，對吧，人工智慧在如此短的時間內發生如此巨大的變化。現在我們看到，創造如此強大的人工智慧工具的門檻已經大大降低。我們週一自然會開放這個平台，允許任何人在此基礎上進行建置。因此，我們已經添加了許多層，使包括我們在內的任何人都可以在周一的基礎上建立人工智慧工具。我們很快就會舉辦一場人工智慧黑客馬拉松，邀請任何人在該平台上進行建置。本質上，市場中有一個專門的部分，用於介紹任何可以讓任何人受益的人工智慧工具。我認為這非常令人興奮。我們將看到針對特定行業的長尾解決方案，這令人興奮。

Yes. And maybe just to add -- this is Eran, just to add more color. So one of the main building blocks that we have in the platform is our monday [Doc]. And there we already saw a lot of potential use cases for using AI to generate automatic content to summarize content within the board. So definitely, we saw some exciting POCs, and we plan to expand like we said, the platform and start with some off-the-shelf solutions to start with.

是的。也許只是為了補充一下——這是 Eran，只是為了增加更多色彩。因此，我們平台的主要構建模組之一就是我們的星期一 [Doc]。我們已經看到了許多使用人工智慧產生自動內容來總結董事會內容的潛在用例。所以，我們確實看到了一些令人興奮的 POC，並且我們計劃像我們所說的那樣擴展平台，並從一些現成的解決方案開始。

This concludes today's Q&A session, and does concludes today's call. We thank you very much for your attendance. You may now disconnect your lines.

今天的問答環節到此結束，今天的電話會議也到此結束。非常感謝您的出席。現在您可以斷開線路了。