monday.com Ltd (MNDY) 2023 Q3 法說會逐字稿

Thank you for standing by, and welcome to the monday.com Third Quarter Fiscal Year 2023 Earnings Conference Call. I would now like to welcome Byron Stephen, Head of Investor Relations to begin the call. Byron, over to you.

感謝您的支持，歡迎參加 monday.com 2023 財年第三季財報電話會議。現在，我歡迎投資者關係主管拜倫史蒂芬 (Byron Stephen) 開始電話會議。拜倫，交給你了。

Hello, everyone, and thank you for joining us on today's conference call to discuss the financial results for monday.com's Third Quarter Fiscal Year 2023. 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 third quarter 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 2023 財年第三季的財務業績。今天與我一起參加會議的有 monday.com 的聯合執行長 Roy Mann 和 Eran Zinman；和 Eliran Glazer，monday.com 財務長。我們今天早些時候公佈了第三季的業績。您可以在我們 IR 網站 ir.monday.com 的新聞和事件部分找到我們的季度股東信函以及投資者介紹和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 our most directly comparable GAAP financial measures are available in the earnings release and the earnings 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。與我們最直接可比較的 GAAP 財務指標的對帳可在收益報告和今天電話會議的收益報告中找到，這些報告和收益報告已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。

Thank you, Byron, and thank you, everyone, for joining us today. As we reflect on our most recent quarter, it is with heavy hearts that we acknowledge the recent tragic events that have unfolded in Israel. Our thoughts are with all those affected by recent violent terrorist attacks. At this time, the impact on the current situation of our global operation is minimal, and we remain confident in our ability to meet all our business and financial targets.

謝謝拜倫，也謝謝大家今天加入我們。當我們回顧最近一個季度時，我們懷著沉重的心情承認以色列最近發生的悲劇。我們向所有在最近遭受暴力恐怖攻擊的人們表示慰問。目前，對我們全球營運現況的影響微乎其微，我們仍有信心實現所有業務和財務目標。

In terms of revenue, Israel accounts for a low single-digit percentage of our total ARR. While only approximately 7% of our global workforce have been called up for reserve duty, our global employees have gone above and beyond to seamlessly feel any gaps to help ensure our business continues to run smoothly. Furthermore, all of our data servers are distributed globally across North America, Europe and Australia, ensuring our operations will continue seamlessly. We're monitoring the situation closely and will make necessary adjustment to our plans as needed.

就收入而言，以色列在我們的總 ARR 中所佔比例僅為個位數。雖然我們全球員工中只有約 7% 被徵召擔任預備役，但我們全球的員工都竭盡全力無縫填補任何空缺，以幫助確保我們的業務繼續順利運作。此外，我們所有的資料伺服器都分佈在北美、歐洲和澳大利亞，確保我們的營運能夠無縫進行。我們正在密切關注局勢，並將根據需要對我們的計劃做出必要的調整。

Now let me turn to our results this quarter. We're pleased to share that we have achieved another quarter of strong growth, impressive margin improvement and amazing cash generation. In Q3, we continued to demonstrate our ability to scale with efficiency, posting record non-GAAP operating margin of 13% and a record free cash flow margin of 34%.

現在讓我來談談我們本季的業績。我們很高興地告訴大家，我們又一個季度實現了強勁成長、利潤率顯著提高和驚人的現金創造。在第三季度，我們持續展現出高效擴展的能力，非公認會計準則營業利潤率達到創紀錄的 13%，自由現金流利潤率達到創紀錄的 34%。

I'll now turn it over to Eran to walk you through some of our product highlights this quarter.

現在我將把時間交給 Eran，讓他向您介紹我們本季的一些產品亮點。

Thank you, Roy. We remain focused on our multiproduct strategy and ensuring that our products can successfully mail cross-functional collaboration for our customers. Our new products continue to show a remarkable cross-sell opportunity with 2,534 initial work management accounts adopting one of our new products. We're dedicated to providing exceptional solutions that meet the evolving needs of our customers, and we believe that our new products will play a pivotal role in achieving this.

謝謝你，羅伊。我們始終專注於多產品策略，並確保我們的產品能夠成功地為客戶實現跨職能協作。我們的新產品繼續顯示出顯著的交叉銷售機會，已有 2,534 個初始工作管理帳戶採用了我們的一款新產品。我們致力於提供卓越的解決方案，滿足客戶不斷變化的需求，我們相信我們的新產品將在實現這一目標方面發揮關鍵作用。

Our target is to open access to our new monday sales CRM and monday dev products to all customers by the end of Q1 of next year. In Q2, we've successfully completed mondayDB 1.0. With the completion of that phase, all monday customers have been transitioned to our new cutting-edge infrastructure and initial feedback has been amazing. Users are noticing a meaningful boost in performance and capabilities of the Work OS platform.

我們的目標是在明年第一季末向所有客戶開放我們的新 Monday sales CRM 和 Monday dev 產品。在第二季度，我們成功完成了 mondayDB 1.0。隨著該階段的完成，所有周一客戶都已過渡到我們新的尖端基礎設施，初步反饋令人驚嘆。使用者註意到 Work OS 平台的效能和功能有了顯著的提升。

Our next phase, mondayDB 1.1 dashboards is now live and already showing significant improvements in load times and performance of our largest and most complex dashboards. We're also beginning to see great initial results from our new monday AI capabilities, specifically, the AI Formula Builder and the AI Solution Builder. The formula builder is already saving users time and effort and to date, has helped over 5,000 users build advanced formula capabilities.

我們的下一階段，mondayDB 1.1 儀表板現已上線，並且已經顯示出我們最大和最複雜的儀表板的載入時間和效能的顯著改善。我們也開始看到新的 Monday AI 功能（特別是 AI 公式建構器和 AI 解決方案建構器）帶來的出色初步成果。公式產生器已經為用戶節省了時間和精力，迄今為止，已幫助超過 5,000 名用戶建立了高級公式功能。

We're excited that the -- with the opportunities we see ahead as we seek to generate meaningful value for our customers through the power of AI. The AI Solution Builder is also receiving very positive feedback from customers. We're utilizing it to easily set up fully operational personalized boards. As always, we're very proud of the monday.com team achievement in this quarter, and we remain highly confident in our opportunities ahead.

我們很高興看到未來的機遇，我們力求透過人工智慧的力量為客戶創造有意義的價值。 AI 解決方案建構器也收到了來自客戶的非常正面的回饋。我們正在利用它來輕鬆設定功能齊全的個人化板。像往常一樣，我們對 monday.com 團隊在本季度取得的成就感到非常自豪，我們對未來的機會仍然充滿信心。

As a reminder, we will be hosting our first Investor Day as a company at our New York City Elevate Conference on December 6. We look forward to seeing many of you in person and sharing our vision, strategy and product road map, and that needs to gain deeper insights into our operations and future plans.

提醒一下，我們將於 12 月 6 日在紐約市 Elevate 會議上舉辦公司首屆投資者日。我們期待與大家見面並分享我們的願景、策略和產品路線圖，以便更深入地了解我們的營運和未來計劃。

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

現在，我將把權力移交給 Eliran 來負責我們的財務和指導。

Thank you, Eran, and thank you to everyone for joining our call. Today, I'll review our third quarter fiscal 2023 results in detail and provide updated guidance.

謝謝你，Eran，也謝謝大家參加我們的電話會議。今天，我將詳細回顧我們 2023 財年第三季的業績並提供更新的指導。

We reported strong results in Q3 with record quarterly free cash flow and non-GAAP operating income for the third consecutive quarter. Our results in the quarter demonstrate our consistent execution as well as the healthy customer demand we see for the monday.com work operating system platform and our products.

我們在第三季報告了強勁的業績，連續第三個季度創下季度自由現金流和非公認會計準則營業收入的新高。本季的業績證明了我們始終如一的執行力以及客戶對 monday.com 工作作業系統平台和我們產品的健康需求。

Total revenue came in at $189.2 million in Q3, up 38% from the year ago quarter. Our overall net dollar retention rate remained steady in Q3, reflecting our continued resilience through a more challenging macroeconomic environment. While our full year 2023 guidance still assumes NDR to be slightly below 110%, we're encouraged by the signs of stabilization that we witnessed during the most recent quarter.

第三季總營收為 1.892 億美元，比去年同期成長 38%。我們的整體淨美元留存率在第三季保持穩定，反映出我們在更具挑戰性的宏觀經濟環境中仍保持了韌性。雖然我們對 2023 年全年的預測仍然假設 NDR 略低於 110%，但我們對最近一個季度看到的穩定跡象感到鼓舞。

As a reminder, our net dollar retention rate is trailing 4 quarter weighted average calculation. For the reminder of the financial metrics disclosed unless otherwise noted, I will be referencing non-GAAP financial measures. We have provided a reconciliation of GAAP to non-GAAP financials in our earnings release.

提醒一下，我們的淨美元留存率是落後於 4 個季度的加權平均計算的。為了提醒大家，除非另有說明，所揭露的財務指標都將參考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。

Third quarter gross margin was 89%. In the medium to long term, we continue to expect gross margin to be in the high 80s range. Research and development expense was $28.1 million or 15% of revenue compared to 19% in Q3 2022. In the medium to long term, we anticipate R&D expense as a percentage of revenue to be in the high teens as we build out our product suite and scale our work operating system platform, both horizontally and vertically.

第三季毛利率為89%。從中長期來看，我們預計毛利率仍將在 80% 左右。研發費用為 2,810 萬美元，佔營收的 15%，而 2022 年第三季為 19%。從中長期來看，隨著我們建立產品套件並橫向和縱向擴展我們的工作作業系統平台，我們預計研發費用將佔收入的百分比達到百分之十幾。

Sales and marketing expense was $101.5 million or 54% of revenue compared to 60% in Q3 2022. G&A expense was $15.2 million or 8% of revenue compared to 11% in Q3 2022. Net income was $33 million, up from $2.6 million in Q3 2022. Diluted net income per share was $0.64 based on 51.5 million fully diluted shares outstanding.

銷售和行銷費用為 1.015 億美元，佔營收的 54%，而 2022 年第三季為 60%。一般及行政費用為 1,520 萬美元，佔營收的 8%，而 2022 年第三季為 11%。淨收入為 3,300 萬美元，高於 2022 年第三季的 260 萬美元。基於 5,150 萬股完全稀釋流通股，每股稀釋淨收入為 0.64 美元。

Total employee headcount was 1,744, an increase of 98 employees since Q2 '23. We expect to continue hiring over the next year with a focus on our R&D product and sales teams as we build out our platform and product suite.

員工總數為 1,744 人，自 2023 年第二季以來增加了 98 人。我們預計明年將繼續招聘，重點關注我們的研發產品和銷售團隊，以建立我們的平台和產品套件。

Moving on to the balance sheet and cash flow. We ended the quarter with $1.50 billion in cash and cash equivalents at the end of Q3 '23, up from $989 million at the end of Q2 '23. Free cash flow for Q3 '23 was $64.9 million and free cash flow margin as defined as free cash flow as a percentage of revenue was 34%. Free cash flow is defined as net cash from operating activities, less cash used for property and equipment and capitalized software costs.

繼續討論資產負債表和現金流量。截至 2023 年第三季末，我們的現金及現金等價物為 15 億美元，高於 2023 年第二季末的 9.89 億美元。 23 年第三季的自由現金流為 6,490 萬美元，自由現金流利潤率（即自由現金流佔收入的百分比）為 34%。自由現金流定義為經營活動產生的淨現金減去用於財產和設備的現金以及資本化的軟體成本。

Now let's turn to our updated outlook for fiscal year 2023. For the fourth quarter of fiscal year 2023, we expect our revenue to be in the range of $196 million to $198 million, representing growth of 31% to 32% year-over-year. We expect non-GAAP operating income of $7 million to $9 million and an operating margin of 4% to 5%. For the full year 2023, we now expect revenue to be in the range of $723 million to $725 million, representing growth of 39% to 40% year-over-year.

現在讓我們來看看我們對 2023 財年的最新展望。對於 2023 財年第四季度，我們預計我們的營收將在 1.96 億美元至 1.98 億美元之間，年增 31% 至 32%。我們預計非公認會計準則營業收入為 700 萬至 900 萬美元，營業利潤率為 4% 至 5%。對於 2023 年全年，我們目前預計營收將在 7.23 億美元至 7.25 億美元之間，年增 39% 至 40%。

We expect full year non-GAAP operating income of $47 million to $49 million and an operating margin of approximately 7%.

我們預計全年非公認會計準則營業收入為 4,700 萬美元至 4,900 萬美元，營業利潤率約為 7%。

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

現在我將把問題交給接線員來回答您的問題。操作員？

(Operator Instructions) Our first question comes from the line of Kash Rangan with Goldman Sachs.

（操作員指示）我們的第一個問題來自高盛的 Kash Rangan。

And I'm happy to hear that your employees are safe, and I wish that you're workforce continues to be very safe with the turmoil that's going on.

我很高興聽到你們的員工都很安全，我希望你們的員工在當前的動盪中能夠繼續保持安全。

With respect to the business, first of all, congratulations on the quarter. I'm curious to hear your -- further expand the thoughts on the stabilization you saw in net expansion rate in the quarter. And also as you take a step back with the broadening out of the platform and the capabilities, and the different buying centers and the personas that you can go after, such as Dev, CRM and who knows what it turns in the future, how is the go-to-market approach of the company changing -- you're good entrepreneurs, you've been through multiple businesses before and you can understand the nuances of how go-to-market might have to evolve, given the broadening of the product? Just curious to hear your thoughts on those 2 things.

關於業務，首先，恭喜本季。我很想聽聽您對本季淨擴張率穩定的看法。而且，當您回顧平台和功能的擴展，以及您可以追求的不同購買中心和角色（例如 Dev、CRM 以及誰知道它未來會變成什麼樣子）時，公司的上市方式是如何變化的——您是優秀的企業家，您之前經歷過多種業務，並且您可以理解，考慮到產品的擴展，上市方式可能需要如何演變的細微差別？只是好奇想聽聽你對這兩件事的看法。

Kash, this is Eliran. I will answer your first question, and then I will refer to Eran to address your second question. So with regards to the stabilization of the NDR, as a reminder, we're looking at NDR as a weighted average of the last 4 quarters. So what we saw when you're looking at the trailing 12 months, basically that it's flattening. We saw a decline in the past that was as part of also the macroeconomic headwinds and the fact that expansion was lower than we anticipated or what we saw in the past.

卡什，這是伊萊蘭。我先回答你的第一個問題，然後我會請埃蘭來回答你的第二個問題。因此，關於 NDR 的穩定性，提醒一下，我們將 NDR 視為過去 4 個季度的加權平均值。因此，當你回顧過去 12 個月時，我們發現它基本上趨於平緩。我們過去曾看到過下滑，這也是宏觀經濟逆風的一部分，而且擴張速度低於我們的預期或過去所見。

But over the last few months, we saw that on a month-by-month basis, basically it's flattening and this is encouraging us to believe that there is going to be potentially a stabilization to the long term. And this is also driven by the fact that we see a very healthy top of funnel demand than additional new customers that are joining the platform.

但在過去的幾個月裡，我們看到逐月來看，它基本上是趨於平穩的，這讓我們相信，長期來看，它有可能實現穩定。這也是因為我們看到漏斗頂部的需求比加入平台的新客戶數量更健康。

Yes. And this is Eran, Kash. So regarding the new products, our product ecosystem and how it helps in terms of our go-to-market, so definitely having multiple personas and multiple verticals really helps in 2 ways, really. One is our ability to do both performance marketing across multiple verticals, just make our acquisition much more efficient. And this goes all the way to events and exhibitions and we have different, basically personas that can buy the software.

是的。這是 Eran，Kash。因此，關於新產品、我們的產品生態系統以及它如何幫助我們進入市場，擁有多個角色和多個垂直產業確實在兩個方面有所幫助。一是我們有能力在多個垂直領域進行績效行銷，讓我們的收購更有效率。這涉及到各種活動和展覽，基本上有不同的人物可以購買該軟體。

But more than that, it allows us to be more aggressive because our LTV for each customer is much greater. We don't just compete in 1 vertical, but a customer might start with a CRM and then expand into work management or vice versa. So the total LTV of each customer is much greater, which allow us to be potentially more aggressive going forward in how we acquire customers. So it definitely opens up our ability to acquire customers and expand them over time.

但更重要的是，它讓我們變得更積極，因為我們為每個客戶提供的生命週期價值 (LTV) 要大得多。我們不僅在一個垂直領域競爭，客戶可能從 CRM 開始，然後擴展到工作管理，反之亦然。因此，每個客戶的總生命週期價值 (LTV) 要大得多，這使得我們在未來的客戶獲取方式上可以更加積極。因此，它無疑增強了我們獲取客戶並隨著時間的推移擴大客戶的能力。

Our next question comes from the line of Pinjalim Bora with JPMorgan.

我們的下一個問題來自摩根大通的 Pinjalim Bora。

Congrats on the quarter from me as well. Can I ask you on the top of the final comment that you just made. Maybe help us understand that momentum going into Q4 so far and if the conversion rates of the top of the funnel so far in Q4 that you have seen has been consistent or not versus Q3?

我也對本季的成績表示祝賀。我可以就您剛才提出的最後一則評論問您一個問題嗎？也許可以幫助我們了解到目前為止進入第四季度的勢頭，以及到目前為止您所看到的第四季度漏斗頂部的轉換率是否與第三季度一致？

Yes. So in terms of customer acquisition and top-of-funnel activity, we see still very strong demand, very stable. It's across all customer sizes, both SMB and more enterprise customers. We continue to grow our enterprise segment. It grew 57% year-over-year in the last quarter.

是的。因此，就客戶獲取和漏斗頂端活動而言，我們看到需求仍然非常強勁、非常穩定。它適用於所有規模的客戶，包括中小型企業 (SMB) 和大型企業客戶。我們繼續擴大我們的企業部門。上個季度年增了 57%。

And like we've mentioned, like the only impact that we're seeing right now is less seat expansion from existing customers. But apart from that, our customer acquisition, the momentum that we see with new customers across all products is very stable and strong.

正如我們所提到的，我們目前看到的唯一影響是現有客戶的座位擴張減少。但除此之外，我們的客戶獲取，我們看到所有產品的新客戶成長勢頭非常穩定和強勁。

Understood. And if I can ask you on the regional structure, the hybrid regional structure that you have kind of embarked upon. A few questions on that, just on that change that you're making. Can you help us understand what portion of your sales is driven by outbound today? And where do you see that kind of going?

明白了。我可以問您關於區域結構的問題，即您所著手的混合區域結構。關於您所做出的改變，我有幾個問題想問。您能否幫助我們了解目前您的銷售額中有多少部分是由外向型銷售所推動的？您認為這種情況會如何發展呢？

And as these regional heads kind of start building their teams, should we expect kind of an acceleration in the sales rep hiring, going into next year? And how are you layering in kind of the CRM and the Dev go-to-market in that outbound motion?

隨著這些地區負責人開始組建團隊，我們是否應該預期明年銷售代表的招募會加速？那麼，在這種外向運動中，您如何分層考慮 CRM 和 Dev 進入市場？

Yes, Pinjalim, this is Eran. So you were breaking up a little bit. You were asking about the outbound momentum that we see. Is that correct?

是的，Pinjalim，這是 Eran。所以你們有點分手了。您問的是我們看到外向勢頭的情況。對嗎？

Yes, the regional -- I was talking about the regional sales structure?

是的，區域——我在談論區域銷售結構嗎？

Yes. Okay. So basically -- yes, sorry, go ahead.

是的。好的。所以基本上——是的，抱歉，請繼續。

The regional sales structure that you're highlighting, right? And the leadership?

您強調的是區域銷售結構，對嗎？領導階層呢？

The regional sales structure -- Yes. Yes. So basically, we announced last quarter that we promoted both Jamison to be a Regional Manager for North America and Dean for APAC region. And definitely, it's part of the movement that we're receiving a stronger presence in both of those regions, but also scaling those regions dramatically.

區域銷售結構—是的。是的。基本上，我們在上個季度宣布，我們將 Jamison 提升為北美區域經理，並將他提升為亞太地區院長。毫無疑問，這是我們在這兩個地區獲得更強影響力的運動的一部分，同時也大幅擴大了這些地區的規模。

As we said, we're also doing a lot of outbound sales, reaching larger customers, Fortune 500 customers, in addition to our performance marketing. So for us, it's to continue that momentum as a company. And it just gives us over time more access to larger and larger enterprises, and we continue to scale that effort.

正如我們所說，除了績效行銷之外，我們還進行大量的外向銷售，接觸更大的客戶，財富 500 強客戶。因此對我們來說，作為一家公司，我們要繼續保持這種勢頭。隨著時間的推移，它使我們有更多的機會接觸到越來越大的企業，我們將繼續擴大這項努力。

Our next question comes from the line of Steve Enders with Citi.

我們的下一個問題來自花旗銀行的史蒂夫恩德斯 (Steve Enders)。

Okay. Great. And I'm glad to hear everyone is safe over at monday. I guess maybe just would like to kind of start on that part. I think you called out 7% of employees have been called up to reserves at this point. I guess, how do you go about managing the organization when you have that level of disruption?

好的。偉大的。我很高興聽到週一大家都平安。我想也許只是想從那部分開始。我認為您所說的情況是，目前已有 7% 的員工被調至預備役。我想，當出現這種程度的混亂時，該如何管理組織？

And I guess, secondarily, like as you think about hiring, and it seems like there's continued expectations for that going into next year. How do you think about what that means for future hiring plans and backfilling some of those called up individuals there?

其次，我想，就像您考慮招募一樣，似乎對明年的招募仍抱有持續的期望。您認為這對未來的招募計畫和補充一些被徵召的人員意味著什麼？

It's Roy. So the impact we have right now on the plans we have is minimal. The reason impact -- but it's something we're dealing with, and it has a very short-term effect. Regarding hiring, we have a very strong hiring plan for next year and also this year. So we're on track, and that's been going well.

是羅伊。因此，目前對我們計劃的影響微乎其微。原因影響——但這是我們正在處理的事情，而且它的影響非常短期。關於招聘，我們對明年和今年都有非常積極的招聘計劃。所以，我們的工作進展順利，一切都很順利。

Yes. Maybe, Steven, this is Eran. I can add that Israel only accounts for a low single-digit percentage of our ARR and there's very little impact over there, although we see a little bit, but very small impact, and it's a small part of our revenue.

是的。也許，史蒂文，這是埃蘭。我可以補充一點，以色列只占我們 ARR 的個位數百分比，那裡的影響很小，雖然我們看到了一點，但影響很小，而且它只占我們收入的一小部分。

And also in terms of data servers, it's all distributed globally. We don't have currently any data centers in Israel across North America, Europe, Australia. So in terms of data integrity, servers, operations, we see no impact. And as we mentioned on the business side, it's minimal impact mostly to Israeli customers.

而且就數據伺服器而言，它們都是分佈在全球的。我們目前在以色列、北美、歐洲和澳洲沒有任何資料中心。因此，就資料完整性、伺服器和操作而言，我們沒有看到任何影響。正如我們在業務方面提到的那樣，它對以色列客戶的影響很小。

Okay. Got you. That's helpful. And then just on the free cash flow in the quarter, I mean really, really strong there. I guess anything to call out that was either onetime in nature. How should we be thinking about maybe some of the puts and takes there as we think about going into next quarter, next year?

好的。明白了。這很有幫助。然後就本季的自由現金流而言，我的意思是真的非常強勁。我想，任何需要呼喊的事情本質上都是一次性的。當我們考慮進入下個季度、明年時，我們該如何考慮其中的一些優缺點？

Steve, it's Eliran. Yes, so 34% obviously, is a very high percentage, and we would like to think about it as a one-off. Although we said that we're going to be slightly above 20% originally when we gave Q2 guidance by the end of the year. It's mostly about, I would say, disciplined spending as part of the improving efficiency.

史蒂夫，我是伊萊蘭。是的，顯然 34% 是一個非常高的比例，我們想將其視為一次性事件。儘管我們在年底給出第二季指引時就表示，這一數字將略高於 20%。我想說，這主要是為了提高效率而嚴格控制支出。

And even though with the macro environment, we have a very consistent customer collections and billings. We don't come across any significant issues. Actually, it's very healthy. And also, just to be fair, with over $1 billion in bank -- in the bank on the balance, we continue to generate nice returns with the environment of inflation. So all of the above is very healthy for us in terms of efficient free cash flow.

即使在宏觀環境下，我們的客戶收款和帳單仍然非常穩定。我們沒有遇到任何重大問題。事實上，它非常健康。而且，公平地說，銀行存款超過 10 億美元，在通貨膨脹的環境下，我們繼續獲得不錯的回報。因此，就高效的自由現金流而言，以上所有情況對我們來說都非常健康。

Our next question comes from the line of Brent Bracelin with Piper Sandler.

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

We'll echo the best wishes and support here for you, your family and colleagues impacted by the tragedy in Israel. Maybe Roy, obviously, super impressed with the strong execution, given some of the challenges. Obviously, we're seeing some mix trends in SMB. I wanted to pivot a little bit towards the future product, specifically the monday.com AI assistant. Can you just talk a little bit about what you're seeing there in that beta, what the early response has been? And then I have one quick follow-up.

我們將在此向您、您的家人以及受到以色列悲劇影響的同事表達最良好的祝愿和支持。也許羅伊顯然對強大的執行力印象深刻，儘管面臨一些挑戰。顯然，我們在 SMB 中看到了一些混合趨勢。我想稍微轉向未來的產品，特別是 monday.com 的 AI 助理。您能否簡單談談您在測試版中看到的情況以及早期的反應？然後我有一個快速的後續問題。

Yes, it's Roy. So the AI was very nicely accepted with building boards. So we used the assistant to kind of help customers build things that are usually complex, like the formula builder and like the board and the workflow itself. And we saw that people kind of were surprised about the suggestions they got and said like they were really happy with the boards they got from the AI. So it's kind of like it's really an assistant that onboards customers and help them get the most out of the system right now.

是的，是羅伊。因此，AI 在建築板上得到了很好的接受。因此，我們使用助手來幫助客戶建立通常很複雜的東西，例如公式生成器、板和工作流程本身。我們發現人們對他們得到的建議感到驚訝，並表示他們對從人工智慧那裡得到的板子非常滿意。因此，它實際上就像一個助手，可以引導客戶並幫助他們充分利用系統。

Very encouraging. And then I guess as a follow-up for you, Eliran, impressed here by continued improvement in margins. It sounded like you're leaning a little bit in on performance marketing, the LTV to CAC sounds like it's improving. Can you continue to kind of sustain margins here, even while getting a little aggressive with performance marketing spend just given the returns you're seeing right now?

非常令人鼓舞。然後我想作為您的後續行動，Eliran，對利潤率的持續提高印象深刻。聽起來你有點傾向績效行銷，LTV 與 CAC 的比率聽起來正在提高。考慮到您現在看到的回報，即使在績效行銷支出方面有點激進，您還能繼續維持利潤率嗎？

So Brent, I think that the lever that is most, I would say, impactful of the numbers on a quarter basis is definitely the performance marketing because it allows us either to spend when we see the return or to hold back if we don't see the return. From our perspective, things have not really changed from the last few quarters. So we kind of manage the spend in accordance with the returns that we see. We don't see anything -- it's not getting any better, but it's not getting any worse in terms of what the returns that we're seeing, maybe some of the competitors has already started to spend more on the performance marketing.

所以布倫特，我認為對季度數字影響最大的槓桿肯定是績效行銷，因為它允許我們在看到回報時花錢，或者在沒有看到回報時停下來。從我們的角度來看，情況與過去幾季相比並沒有發生真正的變化。因此，我們根據看到的回報來管理支出。我們沒有看到任何變化——情況並沒有變得更好，但就我們所看到的回報而言，情況也沒有變得更糟，也許一些競爭對手已經開始在績效行銷上投入更多資金。

But for us, it's pretty much what we anticipated or what we saw in prior quarters. We actually thought that when the year goes by, we might see a more aggressive behavior from other players, but we didn't so far. So as long as it meets our return criteria, we continue to spend. And if it will be that a more aggressive spend will provide us better results, then we're going to do it.

但對我們來說，這基本上符合我們的預期或前幾季所看到的情況。我們實際上認為，隨著時間的推移，我們可能會看到其他玩家表現出更具攻擊性的行為，但到目前為止我們還沒有看到。因此，只要符合我們的回報標準，我們就會繼續消費。如果更積極的支出能夠為我們帶來更好的結果，那麼我們就會這樣做。

Great to see impressive execution here, guys.

很高興看到這裡令人印象深刻的表現，夥計們。

Our next question comes from the line of Arjun Bhatia with William Blair.

我們的下一個問題來自 William Blair 的 Arjun Bhatia。

Perfect. And I'll have my best wishes to you all in Israel. First, maybe just to start on, I noticed that the upmarket trends look very strong, but especially the percentage of ARR that you're getting from your large 50,000-plus customers. Can you just talk a little bit about if you're seeing any difference in customer behavior between those larger enterprise customers that are deployed on monday versus smaller customers, whether it's in terms of upsell or seat expansion, et cetera?

完美的。我向以色列的各位致以最良好的祝愿。首先，也許只是開始，我注意到高端市場趨勢看起來非常強勁，尤其是從超過 50,000 名大客戶那裡獲得的 ARR 百分比。您能否簡單談談，您是否發現週一部署的大型企業客戶與小型客戶的客戶行為存在差異，無論是在追加銷售還是席位擴展等方面？

Yes. Arjun, this is Eran. So yes, overall, in terms of our enterprise accounts, as I've mentioned, we see great momentum. Those enterprise accounts tend to upgrade more and increase their seat count more over time. So definitely, we see higher levels of NDR.

是的。阿瓊，這是埃蘭。是的，總體而言，就我們的企業帳戶而言，正如我所提到的，我們看到了巨大的發展勢頭。隨著時間的推移，這些企業帳戶往往會升級更多，而且席位數量也會增加。因此，我們肯定會看到更高水準的 NDR。

In terms of usage, there's a little bit of difference between the way -- SMB users and enterprise customers. In SMBs, what we see is they usually consolidate on monday, managing a lot of departments and almost their entire operation on monday. In enterprise customers, usually, we saw 2 or 3 kind of main business use case for them. And then over time, they might add more departments, but it's more of a gradual process. But definitely, in terms of retention, stability, growth, we invest a lot in enterprise customers because over time, they generate more revenue and tend to expand more.

在使用方面，SMB 使用者和企業客戶之間存在一些差異。在中小型企業中，我們看到的是他們通常在周一進行整合，管理許多部門以及幾乎所有的營運。在企業客戶中，通常我們會看到 2 到 3 個主要業務用例。隨著時間的推移，他們可能會增加更多的部門，但這更像是一個漸進的過程。但毫無疑問，在保留、穩定和成長方面，我們在企業客戶上投入了大量資金，因為隨著時間的推移，他們會產生更多的收入，並且往往會進一步擴張。

Okay. Got it. Perfect. That's very helpful. And then just going on to mondayDB, it sounds like the next phase here is going to be on API enhancements and then improving scalability. How much is that impacting your ability to go after these larger customers and show them the scalability and the improvements you're making in the infrastructure to get them to use monday? Is that something that you're seeing already or something that we anticipate further down the road as more DB versions get rolled out?

好的。知道了。完美的。這非常有幫助。然後繼續討論 mondayDB，聽起來下一階段將是 API 增強，然後提高可擴展性。這對您爭取這些大客戶並向他們展示可擴展性和您在基礎設施方面所做的改進以讓他們使用 Monday 的能力有多大影響？這是您已經看到的嗎？還是隨著更多 DB 版本的推出，我們預期未來會出現的？

Yes. This is Eran again. So definitely, you touched on the point here because I think one of the things that really help us accelerate scale within the enterprise customer is mondayDB. We mentioned this during the beginning of the earnings call, but we got great feedback from Version 1.0. We saw customers already scaling the operation and how to use monday. And now with the release of 1.1, we've really accelerated a major part, which a lot of enterprise use, which is dashboards.

是的。我又是 Eran。所以，您確實觸及了這一點，因為我認為真正幫助我們加速企業客戶規模的因素之一就是 mondayDB。我們在收益電話會議開始時提到了這一點，但我們從 1.0 版中得到了很好的回饋。我們看到客戶已經擴大了營運規模並了解如何使用星期一。現在隨著 1.1 版本的發布，我們確實加速了許多企業使用的主要部分，即儀表板。

It's been a significant boost to how to use the platform. And usually, it's managers and high-level management they use dashboards. So definitely, this is a huge game changer for our ability to scale within the enterprise. And we have a lot of other subversions that we aim to launch in terms of mondayDB. And we feel that each iteration will really help us accelerate our penetration into larger enterprises.

這對於如何使用該平台有著顯著的推動作用。通常，經理和高階管理人員使用儀表板。因此，毫無疑問，這對我們在企業內部擴展的能力來說是一個巨大的改變。我們還有很多其他的顛覆性版本計劃在 mondayDB 方面推出。我們覺得每次迭代都會真正幫助我們加速向更大企業的滲透。

All right. Perfect. And congrats on the strong execution areas.

好的。完美的。並祝賀你們在執行上所取得的卓越成就。

Our next question comes from the line of Derrick Wood with TD Cowen.

我們的下一個問題來自 TD Cowen 的 Derrick Wood。

Great. It's Andrew and I'll echo my -- our thoughts to everyone in Israel. Eliran, on the sales CRM, strong net new growth, 11,000 customers is about 6% of your total base. As that keeps growing, do you think you could see this become a material contributor to revenue next year and also moving into the mid-market?

偉大的。我是安德魯，我將向以色列的每個人表達我們的想法。 Eliran，在銷售 CRM 方面，淨新成長強勁，11,000 名客戶約佔總客戶群的 6%。隨著這項業務的不斷增長，您是否認為這將成為明年收入的重要貢獻者並進入中端市場？

Derrick, it's Eliran. Yes. So CRM is growing really nicely. And just as a reminder, we plan to finish opening access to the CRM to all customers by the end of Q1 next year. So definitely, we expect this to continue to grow. Although it's still early days, we just announced it earlier this year, but cross-selling opportunity looks encouraging.

德瑞克，我是埃利蘭。是的。所以 CRM 發展得非常好。提醒一下，我們計劃在明年第一季末向所有客戶開放 CRM 存取權限。因此，我們肯定預計這一數字將繼續增長。雖然現在還為時過早，但我們今年早些時候才宣布這一消息，但交叉銷售機會看起來令人鼓舞。

And since we have introduced the product to it, we have 2,500-ish work management accounts that have added to the additional products. So I think that over time, with the fact that we're increasing the sales rep number and we're going to focus on cross-selling and upselling, I think that we're going to see a more proactive sales motion and it's going to be resulted in further growth next year.

自從我們推出該產品以來，我們已經有 2,500 個工作管理帳戶添加到附加產品中。因此我認為，隨著時間的推移，隨著我們增加銷售代表數量並專注於交叉銷售和追加銷售，我認為我們將看到更積極的銷售動態，這將導致明年的進一步成長。

Great. And then also for you, Eliran, the ARR from 50,000 plus, a nice uptick to 31% of ARR. Any color on what drove that? And is that mostly existing expansions? Are you seeing larger lands too? And should this kind of continue to uptick into next year?

偉大的。然後對你來說，Eliran，ARR 從 50,000 多，大幅上升至 31% 的 ARR。有什麼跡象顯示這是什麼原因造成的嗎？這些主要是現有的擴展嗎？您也看到更大的土地了嗎？這種上升趨勢明年還會持續嗎？

Derrick, I think it's all of the above. It's -- we're landing bigger. We are -- we have a multiproduct strategy that now customers find us to be part of their core business operation, the fact that we're growing the sales team and we bring people who are expert in selling to enterprise accounts. So all of the above, I think once you unlock the value of monday and you see how it contributes to bigger organizations and a bigger audience, within the organizations, this is something that continues to drive the upmarket motion, together with, of course, the mondayDB.

德瑞克，我認為以上都是。這是——我們的目標更大。我們有一個多產品策略，現在客戶發現我們是他們核心業務營運的一部分，事實上我們正在擴大銷售團隊，並將擅長銷售的人才帶到企業帳戶。所以綜上所述，我認為一旦你釋放了 monday 的價值，你就會明白它如何為更大的組織和更大的受眾做出貢獻，在組織內部，這將繼續推動高端市場的運動，當然還有 mondayDB。

Our next question comes from the line of Brent Thill with Jefferies.

我們的下一個問題來自 Jefferies 的 Brent Thill。

Eliran, can you just walk us through what you're seeing through the start of the quarter and in the last month? Have you seen any change in customer behavior? Or is it the same consistency you're speaking to that you saw in the last quarter?

Eliran，您能否向我們介紹一下本季初和上個月的情況？您是否發現客戶行為有任何改變？或者您所說的一致性與上一季的一致性相同嗎？

Brent, we're still seeing what we saw in prior quarters. As I said earlier, it's not getting any better, but it's not getting any worse. I think there is still a lot of pressure on the economy. I would say, sometimes choppy. Customers still very cautious on their spend. Sales cycles are still taking longer. But on the other hand, we're still seeing a very healthy customer demand and top-of-funnel activity. So I think these are kind of setting one another and contributing to our execution.

布倫特，我們仍然看到前幾季所看到的情況。正如我之前所說，情況沒有變得更好，但也沒有變得更糟。我認為經濟壓力還是很大的。我想說，有時會很不順暢。顧客在消費方面仍然非常謹慎。銷售週期仍然更長。但另一方面，我們仍然看到非常健康的客戶需求和漏斗頂端活動。所以我認為這些是相互關聯的，有助於我們的執行。

And just back on the enterprise, that momentum looks really encouraging. If there were 1 or 2 customer data points, not necessarily naming the customer, but maybe what you've been shocked at or has been significant in terms of milestones. Is there -- in terms of seat count or in terms of how they're deploying, can you -- is there any more color you can add to what is giving you encouragement, what you're seeing in that segment?

回到企業方面，這種勢頭看起來確實令人鼓舞。如果有 1 或 2 個客戶資料點，不一定是客戶的名字，但可能是令您震驚的或在里程碑方面具有重要意義的。就席位數量或部署方式而言，您能否補充一些讓您感到鼓舞的內容，以及您在該部分看到的內容？

Yes, Brent. So still our largest deployment is about 7,000 seats. But maybe I can share more color that we're seeing very interesting deals in the pipeline. We see more momentum of large enterprise interested in buying monday and do a much wider deployment. So definitely, we see this momentum within our customer interest and customer pipeline that we're seeing. So that gives us a lot of insight that we're evolving and it opens the door to bigger and bigger deals going forward.

是的，布倫特。因此，我們最大的部署仍然是約 7,000 個座位。但也許我可以分享更多信息，我們正在看到正在進行的非常有趣的交易。我們看到大型企業週一對購買的興趣越來越大，並且進行了更廣泛的部署。因此，我們確實在客戶興趣和客戶管道中看到了這種勢頭。這讓我們深刻地認識到我們正在不斷發展，並為未來越來越大的交易打開了大門。

Yes. And maybe, Brent, just to add to Eran. This is Eliran. The level of engagement that we see, we have some internal metrics like active paying people and active seats, then we're seeing strong momentum as well. So this is something that is encouraging for us to believe that we're going to see continued growth in the enterprise usage within the existing customers and new customers.

是的。布倫特，也許只是想補充埃蘭。這是 Eliran。我們看到的參與度水平，我們有一些內部指標，例如活躍付費人數和活躍席位，然後我們也看到了強勁的勢頭。因此，這讓我們感到鼓舞，我們相信，我們將看到現有客戶和新客戶的企業使用量持續成長。

Our next question comes from the line of George Iwanyc with Oppenheimer.

我們的下一個問題來自奧本海默公司的喬治·伊万尼克 (George Iwanyc)。

I'll add my best wishes for everyone's safety. Maybe going back to the AI topic. Can you give us some perspective on how you feel this maybe changes the competitive environment?

我謹向大家致以最良好的祝愿，祝大家平安。也許回到人工智慧話題。您能否向我們闡述您認為這可能會如何改變競爭環境？

It's Roy. So I think like customers don't really know what to expect from AI. It's not as if like everyone is demanding this or that. I think we're in a phase that everyone is trying to explore what works, and it's not the easiest things to make -- to turn AI into a really great product for customers. And I think we're on a really good track with the results we've seen and shared. So I don't think it's still like something that is materially competitive, but it might be in the future.

是羅伊。所以我認為客戶真的不知道對人工智慧有什麼期望。並不是每個人都要求這個或那個。我認為我們正處於這樣一個階段：每個人都在嘗試探索什麼是有效的，而這並不是最容易的事情——將人工智慧變成對客戶來說真正優秀的產品。我認為，從我們所看到和分享的成果來看，我們的進展非常順利。因此，我認為它現在還不具備物質競爭力，但未來可能會有。

And then just following up on all the new product additions that you're putting into the platform. Can you maybe provide some perspective on pricing and the type of leverage you're getting from the addition?

然後只需跟進您放入平台的所有新產品添加。您能否提供一些關於定價以及從附加中獲得的槓桿類型的觀點？

Yes. So we're experimenting with things and seeing what are we going to do with pricing. We feel that like the introduction of new products will allow us to cross-sell and then extract -- give more value to customers and like allow us to have like a higher dollar value for each customer. Alongside other improvements that we're making to the platform in various advancement in every area, in the work management, in the CRM that will also expose us to new customers and new use cases and again, like improve that cycle of expansion.

是的。因此，我們正在進行各種嘗試，並研究如何定價。我們認為，推出新產品將使我們能夠交叉銷售，然後提取——為客戶提供更多價值，並使我們能夠為每個客戶提供更高的美元價值。除了我們在平台各個領域、工作管理、客戶關係管理等方面所做的改進外，我們還將接觸到新的客戶和新的用例，並再次改善擴展週期。

Our next question comes from the line of DJ Hynes with Canaccord.

我們的下一個問題來自 Canaccord 的 DJ Hynes。

I'll echo the sentiment of others and my congrats on the quarter. I'm curious what you're seeing in terms of activity and engagement in the marketplace ecosystem. It seems like as you make improvements in scalability and continue to roll out new product, there's just that much more surface area for partners to build around. So curious if you're seeing any signs of that playing out and what it could mean for the model over time?

我會附和其他人的觀點並對本季表示祝賀。我很好奇您在市場生態系統的活動和參與方面看到了什麼。似乎隨著您在可擴展性方面取得進步並繼續推出新產品，合作夥伴可以建造的表面積就會更大。所以很好奇您是否看到了任何跡象表明這種情況正在發生，以及這對模型意味著什麼？

Yes. DJ, it's Eran. So definitely, we see good momentum there. We're starting to see more and more kind of more significant ARR coming from our marketplace. The partnership with both Appfire and Adaptive are growing really nicely. It takes time, but currently, those 2 partners have some of the most popular apps in our marketplace. So definitely, we see the momentum that they bring and their experience is definitely helpful. So we're very encouraged with everything we see.

是的。 DJ，我是 Eran。因此，我們確實看到了良好的動力。我們開始看到來自我們市場的越來越多的、更重要的 ARR。與 Appfire 和 Adaptive 的合作關係發展得非常順利。這需要時間，但目前，這兩個合作夥伴在我們的市場上擁有一些最受歡迎的應用程式。因此，我們確實看到了他們帶來的動力，他們的經驗肯定是有幫助的。因此，我們對所看到的一切感到非常鼓舞。

We see some very good applications built not just for the platform, but for each one of our apps, for CRM, for work management, for dev. So definitely, this really enriches the marketplace and the opportunity for each one of them. And in addition to the bigger partners, we continue to see large momentum of smaller and indie developers that build in the marketplace. So all in all, like we're very encouraged with the development and the type of applications that are being built.

我們看到一些非常好的應用程式不僅為平台而構建，而且為我們的每個應用程式、CRM、工作管理、開發而構建。因此，這無疑豐富了市場，並為每個企業提供了機會。除了較大的合作夥伴之外，我們還看到小型和獨立開發商在市場上蓬勃發展。總而言之，我們對正在開發和建構的應用程式類型感到非常鼓舞。

Yes. Okay. Good to hear. And then how do you think about sizing the opportunity for monday dev, maybe relative to CRM? I mean I assume it's probably narrower, but trying to get an understanding of kind of the composition of your customer base, how big that developer footprint is and kind of what it means for the serviceable opportunity for dev in the base, realizing it's a multiyear journey?

是的。好的。很高興聽到這個消息。那麼，您如何看待 monday dev 的機會規模，可能相對於 CRM 而言？我的意思是，我認為它可能更窄，但試圖了解你的客戶群的組成，開發人員的足跡有多大，以及它對基礎開發人員的服務機會意味著什麼，意識到這是一個多年的旅程？

Yes. So this is Eran again. Yes. So look, I mean, that is -- has great momentum. It's a little bit younger compared to CRM. But again, if we compare it to how we grew as a company, like it is growing faster than monday itself. So it also has great momentum as a product. And I think there's great players right now in this market that prove that you can build a huge business out of it. So we definitely are encouraged by the growth. We're encouraged by seeing the type of customers that adopt the product.

是的。這又是 Eran。是的。所以，我的意思是，這具有巨大的勢頭。與 CRM 相比，它稍微年輕一些。但是，如果我們將其與我們作為一家公司的發展進行比較，就會發現它的成長速度比周一本身還要快。因此，作為一款產品，它也具有巨大的發展動能。我認為目前這個市場上有很多優秀的參與者，他們證明你可以利用這個市場建立起龐大的業務。因此，我們確實對這種成長感到鼓舞。看到採用該產品的客戶類型，我們感到很受鼓舞。

Still, we have a lot of features we need to complete. But all in all, it looks very promising, as promising, I would say, as CRM a year ago. So definitely something we invest a lot into. I'm very encouraged with the results we've seen so far.

儘管如此，我們仍有許多功能需要完成。但總而言之，它看起來非常有前景，我想說，就像一年前的 CRM 一樣有前景。所以我們肯定會在這方面投入大量資金。我對我們目前所看到的結果感到非常鼓舞。

(Operator Instructions) Our next question comes from the line of Scott Berg with Needham & Company.

（操作員指示）我們的下一個問題來自 Needham & Company 的 Scott Berg。

Nice quarter, and I will certainly echo the concerns with all what you all are dealing with right now, good luck. A couple of questions for me. Eliran, you talked about sales and marketing, expecting to be in the high teens in the intermediate term, your spend in sales -- or excuse me, R&D in the high teens. Your R&D spend really hasn't been in the high teens for several quarters. How should we think about your investments there? Are we going to see kind of a ramp back up to the high teens? Or what does that kind of balance look like, I guess?

不錯的一個季度，我當然會回應大家對你們現在正在處理的所有問題的擔憂，祝你好運。我有幾個問題。 Eliran，您談到了銷售和行銷，預計中期您的銷售支出將達到十幾歲，或者對不起，研發支出將達到十幾歲。您的研發支出其實已經好幾個季度沒有達到十幾個百分點了。我們應該如何看待您在那裡的投資？我們是否會看到某種程度的回升至十幾歲的水平？或者我猜這種平衡是什麼樣的？

So it's a great question. I would say that in fiscal year '23, to your point, we probably are now looking at more mid-teens. So first of all, when you think about hiring, we continue to hire in R&D, we continue to do investments in R&D. The reason why we see lower cost to a certain extent in the short term because in the longer term, we believe it's going to continue to grow. It's first of all, the FX currencies, R&D team is mostly based in Israel, all of the people.

這是一個很好的問題。我想說的是，在 23 財年，正如您所說，我們現在可能正在考慮更多的十幾歲的青少年。因此，首先，當您考慮招募時，我們會繼續招募研發人員，並繼續對研發進行投資。我們之所以認為短期內成本會在某種程度上下降，是因為從長遠來看，我們相信成本會繼續成長。首先，外匯貨幣的研發團隊大部分都在以色列。

So we took advantage or we benefit from the fact that the dollar was strong versus the Israeli shekel. We had some accounting things like allocation that impacted both cost of sales as well as R&D. And it is mostly going to be dependent on the recruitment progress. So we continue to hire aggressively. R&D people are not easy to find. Always, there is a good fight for them. But we will continue to hire and expand the team. And we believe that for the next year, we're going to see this number grow.

因此，我們利用了美元兌以色列謝克爾走強的優勢，或者說從中獲益。我們有一些會計事項，例如分配，它會影響銷售成本和研發成本。這主要取決於招募進度。因此我們繼續積極招募。研發人員不容易找到。他們總是在進行一場艱苦的戰鬥。但我們將繼續招募並擴大團隊。我們相信，明年這個數字還會成長。

Understood. Helpful. And then from a follow-up perspective, you talked about net revenue retention trends starting to trough out the last couple of quarters. I note items like CRM and dev tools are still reasonably new in terms of customer adoption and how you're selling them. But from your early statistics, how are those modules or tools impacting your net revenue retention rate? Are you seeing some different trends there versus the overall work management platform?

明白了。很有幫助。然後從後續的角度來看，您談到了過去幾季開始出現的淨收入保留趨勢。我注意到 CRM 和開發工具等產品在客戶採用和銷售方式方面仍然相當新。但是從您早期的統計數據來看，這些模組或工具如何影響您的淨收入保留率？與整體工作管理平台相比，您是否看到了一些不同的趨勢？

Yes. This is Eran. So Look, it's still early days in terms of just amount of revenue and our experience with it. But I can share that overall in terms of engagement and potential expansion, now -- we see an upside there. I think it's just because of the nature of the products that some of them are more sticky than others. And kind of once you get a team starts using it, you get the whole department potentially using that tool.

是的。這是埃蘭。所以，就收入金額和我們的經驗而言，現在還處於早期階段。但現在我可以分享的是，從參與度和潛在擴張方面來看，我們看到了其中的好處。我認為這只是因為產品的性質，導致有些產品比其他產品更黏。一旦你的團隊開始使用它，整個部門就有可能使用該工具。

So definitely, we see an option there for higher NDR, both in dev and CRM. But again, it's still early days. So we don't have a lot of cohort data yet. But just judging by the nature of usage right now, it definitely has an upside there.

因此，我們肯定會在開發和 CRM 中看到更高 NDR 的選項。但現在還為時過早。所以我們還沒有很多同類群組數據。但僅從目前的使用性質來判斷，它肯定有其優勢。

Our next question comes from the line of Taylor McGinnis with UBS.

我們的下一個問題來自瑞銀的泰勒麥金尼斯。

And like everyone else, I want to extend thoughts to you all and everyone at monday in Israel and well done on execution this quarter considering the circumstances. So just looking at the 4Q rep guide, it looks really solid and assuming some upside, we could actually start to see an acceleration in quarter-over-quarter growth. So first, can you maybe talk about what you've seen in terms of the demand environment that's giving you comfort in this outlook?

和其他人一樣，我想向你們所有人以及星期一在以色列的所有人表達我的祝福，考慮到目前的情況，祝賀你們本季度的執行情況。因此，僅查看第四季度的銷售指南，它看起來確實很穩健，並且假設存在一些上行空間，我們實際上可以開始看到季度環比增長加速。那麼首先，您能否談談您所看到的需求環境，讓您對這種前景感到安心？

And then second, there's been some evidence in -- within other software companies this quarter of softening SMB trends and some other macro events. So can you talk about some of -- can you just provide more color on the assumption being embedded in the guide for the environment and maybe the level of conservatism for some of these events?

其次，本季其他軟體公司內部出現了一些證據顯示中小企業趨勢減弱以及一些其他宏觀事件。那麼，您能否談談—您能否對環境指南中所包含的假設以及某些事件的保守程度提供更多的說明？

Taylor, this is Eran. Thanks for joining. So I can comment on the demand and maybe Eliran can talk a little bit about the guidance for the next quarter. So in terms of demand, like we mentioned, we see very strong demand, not just in SMBs, but also in enterprise customers. And in terms of usage and expansion, we also see positive signs overall. Like Eliran mentioned, although the environment is still kind of choppy like in the beginning of the year in terms of demand and stability of demand like we feel very comfortable. So that's in terms of what we see in the market. I don't know if you want to add anything, Eliran, in terms of guidance for Q4 or.....

泰勒，這是埃蘭。感謝您的加入。因此我可以對需求進行評論，也許 Eliran 可以談談下一季的指導。因此就需求而言，正如我們所提到的，我們看到非常強勁的需求，不僅在中小型企業中，而且在企業客戶中也是如此。在使用和擴展方面，我們總體上也看到了積極的跡象。正如 Eliran 所提到的，儘管就需求和需求穩定性而言，環境仍然像年初那樣不穩定，但我們感覺非常舒服。這就是我們在市場上看到的情況。我不知道您是否想補充一些內容，Eliran，關於第四季度的指導或...

Yes. So I would say that with regards to guidance, we always report what we know when we do the guidance. So we take into account the latest trends that we're seeing. And they are not -- they haven't really changed much over the year. As I said earlier, we still have a challenging macroeconomic conditions with some moderate pressure on NDR. And as we mentioned, we continue to expect full year NDR to be slightly below 110%. But we do expect it to level off at the end of this year.

是的。因此我想說，關於指導，我們在進行指導時總是報告我們所知道的情況。因此，我們會考慮我們所看到的最新趨勢。但事實並非如此——一年來他們並沒有太大的變化。正如我之前所說，我們的宏觀經濟條件仍然充滿挑戰，NDR 面臨一定壓力。正如我們所提到的，我們仍然預計全年 NDR 將略低於 110%。但我們確實預計它將在今年年底趨於平穩。

With regards to the top of funnel demand and strong new customer growth, it's offset some of the trends that we're seeing. And I believe this is taking into account the fact that we introduced first mondayDB as well as the CRM and dev -- other multiple use cases. So while there is -- to summarize, well, there is some pressure coming from the macro economy, it is definitely offset by the top of funnel strong demand that we're seeing from new customers.

就漏斗頂部的需求和強勁的新客戶成長而言，它抵消了我們看到的一些趨勢。我相信這是考慮到我們首先引入了 mondayDB 以及 CRM 和 dev 等多種用例。因此，雖然總而言之，宏觀經濟確實帶來了一些壓力，但它肯定會被我們從新客戶那裡看到的強勁需求所抵消。

Our next question comes from the line of Jason Celino with KeyBanc Capital Markets.

我們的下一個問題來自 KeyBanc Capital Markets 的 Jason Celino。

I'll start with maybe a philosophical question. Roy, I know you said that it's too early and no one really knows yet, but a lot of software companies, including your content collaborative work management peers are rolling out these AI features and bundling them in the core products. But it seems like AI might become table stakes. If this is the case, how do you think AI can still be a differentiator?

我可能先從一個哲學問題開始。羅伊，我知道您說現在還為時過早，還沒有人真正知道，但很多軟體公司，包括您的內容協作工作管理同行，都在推出這些人工智慧功能並將它們捆綁在核心產品中。但看起來人工智慧可能會成為賭注。如果事實確實如此，您認為人工智慧如何還能成為差異化因素？

I appreciate the philosophical question. So I'll tell you what, like the AI, we can divide into 2 areas. One is the table stakes area, right, like making AI improve the software itself and its usability. And I think that's less monetizable, but like improved performance overall of everything.

我很欣賞這個哲學問題。所以我會告訴你，就像人工智慧一樣，我們可以分成兩個領域。一個是基本賭注區域，對吧，例如讓人工智慧改進軟體本身及其可用性。我認為雖然這不太能帶來經濟效益，但總體而言，它的性能有所提高。

And the other part is adding more productivity components with AI that customers will pay for. And I think there is a good upside. We're looking at what everyone is doing across the field, not only in productivity in AI, and we're putting a lot of emphasis on it. We have a strong team working on it.

另一部分是增加更多客戶願意付費的具有人工智慧的生產力組件。我認為這有好處。我們正在關注每個人在各個領域的所作所為，不僅僅是在人工智慧的生產力方面，而且我們非常重視這一點。我們有一個強大的團隊致力於此。

And I feel we have a lot to say because monday is a true platform. And we're able to take and like make AI very accessible for the customers that come to us and want to build workflows, improve their business. We're really able to take that power and give it to them, but that's like a work in progress. And I think that will not be table stakes.

我覺得我們有很多話要說，因為星期一是一個真正的平台。我們能夠讓那些想要建立工作流程、改善業務的客戶輕鬆使用人工智慧。我們確實能夠將這種權力賦予他們，但這就像一項正在進行的工作。我認為這不會是賭注。

Great. And then, Eliran, you mentioned having a lot of cash, crossing the $1 billion mark, and you're generating more. Maybe can you speak to some of your capital deployment strategy?

偉大的。然後，Eliran，您提到擁有大量現金，已突破 10 億美元大關，而且您仍在創造更多現金。您能談談您的一些資本配置策略嗎？

Yes. So with regards to cash, obviously, it's going to be used for corporate initiative. We're going to continue to invest in investing in the business, bringing and hiring people, expanding the leadership team, the management team as well as thinking about nonorganic growth opportunities. We're going to look potentially next year at companies thinking about M&A. Again, mostly tuck-in, equity hiring, complementary products, but this is something that we definitely started to think about and to deploy it potentially in the next 12 to 18 months.

是的。因此，就現金而言，顯然它將用於企業計劃。我們將繼續投資於業務，引進和僱用人才，擴大領導團隊和管理團隊，並考慮非有機成長機會。明年我們可能會關注那些考慮併購的公司。再次強調，主要是附加價值、股權招聘和補充產品，但這是我們肯定開始考慮的事情，並且可能在未來 12 到 18 個月內部署它。

Our next question comes from the line of Robert Simmons with D.A. Davidson.

我們的下一個問題來自 D.A. 的 Robert Simmons。戴維森。

So it's great to see the apps, CRM and dev, scaling so well. I'm wondering where are you seeing the most kind of uptake for those by vertical or by geography?

因此，很高興看到應用程式、CRM 和開發擴展得如此順利。我想知道，從垂直或地理角度看，哪些領域的吸收量最大？

Yes, Robert, this is Eran. So you're asking where do we see the most -- what do you mean like uptake? Just.....

是的，羅伯特，這是埃蘭。所以您問我們在哪裡看到最多—您說的吸收量是什麼意思？只是.....

Like where are you seeing the strongest adoption by customers for the -- for sales and dev?

例如，您看到客戶在銷售和開發方面採用最廣泛的是什麼？

In terms of vertical, like we see adoption across all verticals and also across different sizes. I would say in terms of company sizes, we don't see large enterprise currently adopting monday sales CRM or mondayDB. But definitely, we see the bar rising. It started with small teams and expanding into hundreds of people and will continue to grow as we add more features and more complexity.

就垂直領域而言，我們看到所有垂直領域以及不同規模的領域都採用了這項技術。我想說，就公司規模而言，我們目前沒有看到大型企業採用 monday sales CRM 或 mondayDB。但毫無疑問，我們看到標準不斷提高。它從一個小團隊開始，逐漸擴展到數百人，並且隨著我們增加更多功能和複雜性而繼續發展。

In terms of industry, it's really across the industry, both tech companies and nontech, obviously, dev is more focused on tech. But in terms of sales CRM, we really see a wide variety of verticals and different kinds of companies that adopt the products pretty similar to what we saw in monday work management product. Yes, this is the color we have right now.

就行業而言，它確實涉及整個行業，包括科技公司和非科技公司，顯然，開發更專注於科技。但就銷售 CRM 而言，我們確實看到各種垂直行業和不同類型的公司採用的產品與我們在周一工作管理產品中看到的產品非常相似。是的，這就是我們現在的顏色。

Okay. Got it. And then the 2 other apps you launched at the same time, how are those performing so far?

好的。知道了。那麼，您同時推出的另外兩個應用程式目前的表現如何？

Can you repeat the question for me? How's what?

你能再給我重複這個問題嗎？怎麼樣？

Can you repeat the question? Sorry, how was what?

你能重複一下這個問題嗎？抱歉，怎麼樣？

You had 2 other apps you launched at the same time as those 2. How are those performing so far? Are those starting to ramp to your expectations? Or is there a little bit earlier? But yes....

您同時發布了另外兩款應用程式。目前它們的表現如何？這些是否開始達到您的期望？或是有更早一點的嗎？但是的......

Yes. Well, we have a bunch of products that we launched. We had monday WorkForms and monday WorkCanvas that we launched as part of that. We pretty have -- we had an initial product called monday marketing, but we kind of discontinued that and merged that into monday work management.

是的。嗯，我們推出了一系列產品。作為其中的一部分，我們推出了 Monday WorkForms 和 Monday WorkCanvas。我們確實有——我們最初有一款名為“週一行銷”的產品，但後來我們停止了該產品的生產並將其合併到“週一工作管理”中。

And in terms of the other products, WorkCanvas and WorkForms, they're still kind of in their initial phase. We see nice momentum there, but it's still kind of in a small scale compared to the other products that we have.

就其他產品而言，WorkCanvas 和 WorkForms 仍處於初始階段。我們看到了良好的發展勢頭，但與我們的其他產品相比，規模仍然較小。

(Operator Instructions) There are no further questions at this time. I would like to thank our speakers for today's presentation, and thank you all for joining us. This now concludes today's call, and you may now disconnect.

（操作員指示）目前沒有其他問題。我要感謝今天的演講者，也感謝大家的參與。今天的通話到此結束，您可以掛斷電話了。