monday.com Ltd (MNDY) 2024 Q1 法說會逐字稿

Thank you for standing by. My name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to the monday.com First Quarter Fiscal Year 2024 Earnings Conference Call. (Operator Instructions) I would now like to turn the call over to Byron Stephen, Vice President of Investor Relations. Please go ahead.

謝謝你的支持。我叫馬克，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 monday.com 2024 財年第一季財報電話會議。 （操作員指示）我現在想將電話轉給投資者關係副總裁 Byron Stephen。請繼續。

Hello, everyone, and thank you for joining us on today's conference call to discuss the financial results for monday.com's first quarter fiscal year 2024. Joining me today are Roy Mann and Eran Zinman, co-CEOs of monday.com; and Eliran Glazer, monday.com's CFO. We released our results for the first quarter of fiscal 2024 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，感謝大家參加今天的電話會議，討論 monday.com 2024 財年第一季度的財務業績。和 Eliran Glazer，monday.com 的財務長。我們今天稍早發布了 2024 財年第一季的業績。您可以在我們 IR 網站 ir.monday.com 的新聞和活動部分找到我們的季度股東信函、投資者介紹以及今天網路廣播的重播。

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.

今天的電話會議上所做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。這些陳述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。請參閱我們的收益報告，以了解有關可能導致實際結果與我們的前瞻性陳述有重大差異的具體因素的更多資​​訊。

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

此外，今天的電話會議還將討論非公認會計準則財務指標。投資者關係網站上發布的收益報告和今天電話會議的收益演示中提供了與最直接可比較的公認會計準則財務指標的對帳。

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. Following an exceptional year of growth and progress, we are please to report that 2024 is off to another strong start. In the first quarter, monday.com showcased outstanding business and financial performance, highlighted by increasing adoption of our new products, robust revenue growth and record level free cash flow. Underlying product demand remains strong across all business segments. Despite lingering macroeconomic uncertainties, customers continue to build on the Work OS platform due to our ability to streamline workflows, enhance collaboration and drive efficiency, ultimately empowering organizations to adapt and strive in challenging environments.

謝謝拜倫，也謝謝大家今天加入我們。在經歷了非凡的成長和進步的一年之後，我們很高興地報告，2024 年又一個強勁的開端。第一季度，monday.com 展示了出色的業務和財務業績，其中突出表現在我們的新產品採用率不斷提高、收入強勁增長以及創紀錄水平的自由現金流。所有業務領域的基礎產品需求仍然強勁。儘管宏觀經濟不確定性揮之不去，但由於我們能夠簡化工作流程、增強協作和提高效率，客戶仍繼續在 Work OS 平台上進行構建，最終使組織能夠在充滿挑戰的環境中適應和奮鬥。

One of the key drivers behind our remarkable Q1 performance was the adjustments made to our pricing model. As a reminder, our pricing model structure is being rolled out in waves. For new monday customers and those billed monthly, new pricing took effect in Q1, while other customers will see updated pricing upon renewal. So far, the results from our new pricing structure have exceeded our initial projections, underscoring the strong value proposition of our product. We are particularly pleased with the initial churn that overall gross retention reached an all-time high in Q1, continuing its upward momentum over the past year.

我們第一季業績出色的關鍵驅動因素之一是定價模型的調整。提醒一下，我們的定價模型結構正在分批推出。對於週一新客戶和按月計費的客戶，新定價於第一季生效，而其他客戶將在續約時看到更新的定價。到目前為止，我們新的定價結構的結果已經超出了我們最初的預測，凸顯了我們產品的強大價值主張。我們對最初的流失感到特別滿意，第一季的整體毛保留率達到了歷史新高，延續了過去一年的上升勢頭。

Let me now turn it over to Eran to walk you through some of our product highlights.

現在讓我把它交給 Eran，帶您了解我們的一些產品亮點。

Thank you, Roy. In Q1, our vision of becoming the go-to work platform for businesses took a significant step forward with the opening of monday sales CRM and monday dev to all customers. The response has been incredibly positive, with both products showing accelerating account growth in Q1. In addition, we remain on schedule to launch the new monday service product in late 2024.

謝謝你，羅伊。在第一季度，隨著向所有客戶開放週一銷售 CRM 和週一開發，我們成為企業首選工作平台的願景向前邁出了重要一步。反應非常積極，這兩款產品在第一季都顯示出加速的帳戶成長。此外，我們仍按計劃於 2024 年底推出新的週一服務產品。

Looking ahead, we are committed to further investment and promotion of all our current and upcoming products to address the needs of customers of all types and sizes. Our mission to empower anyone with the ability to harness AI continues to make progress. Building upon a successful launch of our AI system, we recently introduced enhanced AI capabilities, including AI automations, smart columns and AI-powered templates. These new features enable customers to leverage the power of AI throughout our Work OS platform, unlocking significant business value and seamlessly integrating AI into their daily workflows.

展望未來，我們致力於進一步投資和推廣所有現有和即將推出的產品，以滿足各種類型和規模的客戶的需求。我們的使命是讓任何人都有能力利用人工智慧，而這項使命不斷取得進展。在成功推出人工智慧系統的基礎上，我們最近推出了增強的人工智慧功能，包括人工智慧自動化、智慧列和人工智慧驅動的模板。這些新功能使客戶能夠在整個 Work OS 平台中利用人工智慧的力量，釋放重要的商業價值，並將人工智慧無縫整合到他們的日常工作流程中。

Looking ahead, we remain steadfast in our commitment to driving growth at scale, delivering value to our customers and shaping the future of work through innovation and excellence. Our focus on product innovation, customer success and operational efficiency will continue to drive momentum and position us for success in 2024 and beyond.

展望未來，我們仍然堅定致力於推動規模成長、為客戶創造價值並透過創新和卓越塑造未來的工作。我們對產品創新、客戶成功和營運效率的關注將繼續推動我們的發展勢頭，為我們在 2024 年及以後取得成功奠定基礎。

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

現在，我將向 Eliran 介紹我們的財務和指導。

Thank you, Eran, and thank you, everyone, for joining our call. Today, I'll review our first quarter fiscal 2024 results in detail and provide updated guidance. Fiscal year '24 is off to another strong start. Total revenue in Q1 '24 came in at $216.9 million, up 34% from the year ago quarter. Our overall net dollar retention rate was stable in Q1 '24 at 110%, reflecting the recent pricing updates and strong down-market demand for our work operating system products. We currently anticipate reported NDR to remain stable throughout fiscal year '24, with an expected small improvement by the end of the year. As a reminder, our net dollar retention is a trailing 4 quarter weighted average calculation.

謝謝你，埃蘭，也謝謝大家加入我們的電話會議。今天，我將詳細回顧 2024 財年第一季的業績並提供更新的指導。 24 財年又迎來了一個強勁的開局。 24 年第一季的總營收為 2.169 億美元，比去年同期成長 34%。我們的整體淨美元保留率在 24 年第 1 季穩定在 110%，反映了最近的定價更新和我們的工作作業系統產品的強勁的下游市場需求。我們目前預計報告的 NDR 將在整個 24 財年保持穩定，預計到年底會有小幅改善。提醒一下，我們的淨美元保留率是按過去 4 個季度的加權平均計算得出的。

In Q1, we updated our list prices to better align with the increased value provided by our Work OS platform and product suite to our customers. These adjustments have outperformed our initial forecast and we now anticipate that we generate approximately $25 million in revenue for fiscal year '24.

在第一季度，我們更新了標價，以更好地適應我們的 Work OS 平台和產品套件為客戶提供的增加價值。這些調整超出了我們最初的預測，我們現在預計 24 財年的營收約為 2,500 萬美元。

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. First quarter gross margin was 90%. In the medium to long term, we continue to expect gross margin to remain in the high 80s range.

為了提醒所揭露的財務指標，除非另有說明，我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 財務數據的調整表。第一季毛利率為90%。從中長期來看，我們繼續預期毛利率將維持在 80 左右的高點。

Research and development expense was $34.8 million in Q1 '24 or 16% of revenue compared to 18% in Q1 '23. Sales and marketing expense was $120.8 million in Q1 '24 or 56% of revenue compared to 63% in Q1 '23. G&A expense was $17.6 million in Q1 '24 or 8% of revenue compared to 10% in Q1 '23.

24 年第一季的研發費用為 3,480 萬美元，佔營收的 16%，而 23 年第一季為 18%。 24 年第一季的銷售和行銷費用為 1.208 億美元，佔營收的 56%，而 23 年第一季為 63%。 24 年第一季的一般管理費用為 1,760 萬美元，佔營收的 8%，而 23 年第一季為 10%。

Net income was $31.7 million in Q1 '24, up from $7.2 million in Q1 '23. Diluted net income per share was $0.61 in Q1 '24 based on 52 million fully diluted shares outstanding.

24 年第一季的淨利潤為 3,170 萬美元，高於 23 年第一季的 720 萬美元。基於 5,200 萬股完全稀釋的已發行股票，2024 年第一季的稀釋每股淨利為 0.61 美元。

Total employee head count was 1,987, an increase of 133 employees since Q4 '23. We expect to ramp throughout fiscal year '24 with continued focus on our R&D, product and sales teams as we build out our platform and product suite.

員工總數為 1,987 人，自 23 年第四季以來增加了 133 名員工。我們預計在整個 24 財年將繼續專注於我們的研發、產品和銷售團隊，同時建立我們的平台和產品套件，從而實現成長。

Moving on to the balance sheet and cash flow. We ended the quarter with $1.22 billion in cash and cash equivalents, up from $1.12 billion at the end of Q4 '23. In Q1 '24, free cash flow was a record of $89.9 million and free cash flow margin as defined as free cash flow as a percentage of revenue was 41%. 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.

接下來是資產負債表和現金流量。截至本季末，我們的現金和現金等價物為 12.2 億美元，高於 23 年第 4 季末的 11.2 億美元。 24 年第一季，自由現金流達到創紀錄的 8,990 萬美元，自由現金流利潤率（定義為自由現金流佔收入的百分比）為 41%。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以及資本化軟體成本的現金，不包括非經常性項目。

Now let's turn to our updated outlook for fiscal year 2024. For the second quarter of fiscal year 2024, we expect our revenue to be in the range of $226 million to $230 million, representing growth of 29% to 31% year-over-year. We expect non-GAAP operating income of $17 million to $21 million, and an operating margin of 8% to 9%. We expect free cash flow of $47 million to $51 million and free cash flow margin of 21% to 22%.

現在讓我們來看看我們對 2024 財年的最新展望。我們預計非 GAAP 營業收入為 1,700 萬美元至 2,100 萬美元，營業利潤率為 8% 至 9%。我們預計自由現金流為 4,700 萬美元至 5,100 萬美元，自由現金流利潤率為 21% 至 22%。

For the full year 2024, we expect revenue to be in the range of $942 million to $948 million, representing growth of 29% to 30% year-over-year. We expect full year non-GAAP operating income of $77 million to $83 million, and an operating margin of 8% to 9%. We expect full year free cash flow of $238 million to $244 million and free cash flow margin of 25% to 26%.

2024 年全年，我們預計營收將在 9.42 億美元至 9.48 億美元之間，年增 29% 至 30%。我們預計全年非 GAAP 營業收入為 7,700 萬美元至 8,300 萬美元，營業利潤率為 8% 至 9%。我們預計全年自由現金流為 2.38 億美元至 2.44 億美元，自由現金流利潤率為 25% 至 26%。

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

我現在將其轉交給接線員詢問您的問題。

(Operator Instructions) Your first question comes from the line of Pinjalim Bora with JPMorgan.

（操作員說明）您的第一個問題來自 Pinjalim Bora 與 JPMorgan 的路線。

Great. Congrats on a pretty solid quarter here. I wanted to ask you on the CRM and dev side. The traction there is palpable. It seems like you're adding more CRM and dev accounts in Q1, more than that of Q4 or even a year ago, that too in a very tough SMB environment. Help us understand what is driving that. Are people kind of consolidating on monday for these functional use cases, saving them money overall? Are these accounts new accounts largely or are you seeing existing accounts at CRM and dev? And how should we think about the contribution for these products for this year?

偉大的。恭喜本季表現相當強勁。我想問您有關 CRM 和開發方面的問題。那裡的吸引力是顯而易見的。看起來您在第一季添加了更多的 CRM 和開發帳戶，比第四季度甚至一年前都多，在非常艱難的中小企業環境中也是如此。幫助我們了解是什麼推動了這一點。人們是否會在周一對這些功能用例進行整合，從而總體上節省資金？這些帳戶主要是新帳戶還是您在 CRM 和開發人員中看到現有帳戶？我們該如何看待這些產品今年的貢獻？

Pinjalim, this is Eran. So yes, we see great traction both for our CRM product and dev product. I think it's a combination of -- traditionally, Q1 is a strong quarter for us in terms of customer acquisition. So I think that drove some of the increase in terms of net new customers. In addition to that, the products are open to all customers. So we've seen more cross-sell from existing customers.

Pinjalim，這是 Eran。所以，是的，我們看到我們的 CRM 產品和開發產品都具有巨大的吸引力。我認為這是一個組合 - 傳統上，第一季對我們來說在客戶獲取方面是一個強勁的季度。所以我認為這在一定程度上推動了淨新客戶的成長。除此之外，這些產品向所有客戶開放。因此，我們看到現有客戶進行了更多的交叉銷售。

And I would say that in both of monday dev and monday CRM, we're also climbing and acquiring larger and larger customers over time. So obviously, a lot of SMBs, and we see still strong demand from SMBs across all products, but also adding more features and functionality. And over time, we'll be able to bring larger and larger customers to use those products.

我想說的是，在周一的開發和周一的 CRM 中，隨著時間的推移，我們也不斷攀升並獲得越來越大的客戶。顯然，有許多中小企業，我們看到中小企業對所有產品的需求仍然強勁，而且還增加了更多特性和功能。隨著時間的推移，我們將能夠吸引越來越多的客戶使用這些產品。

So I think it's a combination of multiple factors. But overall we're very happy with the progress with both of those products and the traction we see from our customers.

所以我認為這是多種因素的結合。但總的來說，我們對這兩種產品的進展以及我們從客戶那裡看到的吸引力感到非常滿意。

Yes. Understood. One question for Eliran -- sorry, were you saying something?

是的。明白了。有個問題想問 Eliran——抱歉，你在說什麼嗎？

Yes. Sure. (inaudible), Pinjalim.

是的。當然。 （聽不清楚），平賈林。

Okay. Another question for Eliran. Eliran, you took up the pricing assumption. Trying to understand from the new customers, did you see any kind of a benefit from pricing in Q1? And I'm trying to understand the NDR commentary. I think last time you said that the NDR will uptick in the second half. Now it seems like you're talking about more of a small uptick in -- at the end of the year. But pricing seems like it's doing well. So I'm trying to understand if -- and you're taking the overall guidance up and flowing through the beat for Q1. So I'm trying to understand the NDR commentary versus kind of the pricing benefits you're seeing.

好的。埃利蘭的另一個問題。 Eliran，你接受了定價假設。試著從新客戶那裡了解，您是否發現第一季的定價有任何好處？我正在嘗試理解 NDR 的評論。我想上次你說下半年NDR會上升。現在看來你談論的是今年年底的小幅上升。但定價似乎表現不錯。因此，我試圖了解您是否正在採取整體指導並貫穿第一季的節奏。因此，我試圖了解 NDR 評論與您所看到的定價優勢。

Pinjalim, sure. It's Eliran. So just maybe to mention that the majority of the NDR improvement for fiscal year '24 is related to pricing. And because we initiated the new pricing in February, it was mostly for the monthly ones that actually benefit from the price increase. And the rest of the annual contracts are going to be throughout 2024. So we believe that still yet to be seen what would be the impact as these customers continue to renew the annual subscribers. So that is why we kind of took an approach with regard to the NDR. Potentially the uptick is going to be later throughout this year.

平賈林，當然。是伊萊蘭。因此，也許可以提一下，24 財年 NDR 的改善大部分與定價有關。而且因為我們在二月開始了新的定價，所以主要是針對真正從價格上漲中受益的月度定價。其餘的年度合約將持續到 2024 年。這就是為什麼我們對 NDR 採取了某種方法。可能會在今年晚些時候出現上升。

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

您的下一個問題來自 Brent Bracelin 和 Piper Sandler。

I wanted to start out with the improvement you saw in gross retention, despite a pretty challenging macro here and some of the pricing updates. What's driving the improvement in retention given some challenges that you'd typically expect here? Is it just tied to some of these workflows that you're embedded that people are seeing good value out of? Walk me through the improvement in the retention that you're seeing and what's driving that.

我想從您在總留存率方面看到的改善開始，儘管這裡的宏觀環境相當具有挑戰性，並且有一些定價更新。考慮到您通常會遇到的一些挑戰，是什麼推動了保留率的提高？它是否僅僅與您嵌入的某些工作流程相關，人們從中看到了良好的價值？請向我介紹一下您所看到的保留率的改善以及推動這一改善的因素。

Sure. Brent, it's Eliran. So there are a few reasons for the improvement. One is we continue to go upmarket with larger accounts and larger customers. So this is a more stabilized kind of customers with a better profile. The second thing, I would assume that the price increase that we did, potentially the customers that used to be the ones that did not decide they would like to continue to be customers of monday probably churned, and we remained with, again, better customers on the platforms.

當然。布倫特，我是埃里蘭。因此，改進有幾個原因。一是我們持續向高端市場發展，擁有更大的帳戶和更大的客戶。所以這是一種更穩定、更有形象的客戶。第二件事，我認為我們所做的價格上漲，可能那些曾經沒有決定繼續成為週一客戶的客戶可能會流失，而我們仍然擁有更好的客戶在平台上。

The third thing is what Eran mentioned earlier. I believe that the new products that we are launch -- that we launched, CRM, dev, are now continuing to gain traction within existing customer base, and therefore, they contribute to the fact that we are more stabilized with our customers. So I think all of the above is actually creating a better profile of the retention on monday platform.

第三件事就是Eran之前提到的。我相信，我們推出的新產品——我們推出的 CRM、開發產品，現在正在繼續在現有客戶群中獲得吸引力，因此，它們有助於我們與客戶的關係更加穩定。因此，我認為上述所有內容實際上是在周一平台上創建更好的保留。

And then my quick follow-up here is around linearity. Just given the macro uncertainty, what was the linearity you saw in kind of the quarter? It sounds like Q2 is off to a pretty healthy start too. So any color on month-to-month linearity surprised either way?

然後我的快速跟進是圍繞線性。考慮到宏觀不確定性，您在本季看到的線性是多少？聽起來第二季也有一個相當健康的開局。那麼，月度線性度的任何顏色都令人驚訝嗎？

Sure. So I think a few comments. We believe that the current macro economy will remain choppy by the end of the year. It's not -- it doesn't mean that it's going to get any better, but it doesn't mean that it's going to get any worse. I think that we, post our Q1 successful pricing adjustment, we have more confidence on the results that we presented when we did the Investor Day back in December, the best case scenario.

當然。所以我想提幾點意見。我們認為，目前宏觀經濟到年底仍將持續震盪。這並不意味著情況會變得更好，但也不意味著情況會變得更糟。我認為，在第一季成功進行定價調整後，我們對 12 月投資者日時呈現的結果更有信心，這是最好的情況。

So all in all, in terms of linearity, we see a positive momentum throughout the year, also impacted by strong performance and the price increase in Q1. Yet to be seen how it's going to be with the annual subscribers, but overall positive momentum throughout the year. And this is why we increased guidance and improved margins.

總而言之，就線性而言，我們看到全年的正面勢頭，這也受到第一季強勁業績和價格上漲的影響。年度訂戶情況如何還有待觀察，但全年整體勢頭積極。這就是我們增加指導並提高利潤率的原因。

Your next question comes from the line of Jackson Ader with KeyBanc Capital Markets.

您的下一個問題來自 KeyBanc Capital Markets 的 Jackson Ader。

The first one is maybe on customer acquisition costs. Non-GAAP sales and marketing ticked down in terms of the growth rate relative to the last couple of quarters. So just curious what you're seeing in the performance marketing channel from some of your competitors either up or down market.

第一個可能是客戶獲取成本。與過去幾個季度相比，非公認會計準則銷售和行銷的成長率有所下降。因此，只是好奇您在上游或下游市場的一些競爭對手的效果行銷管道中看到了什麼。

It's Roy. So what we see in performance marketing, I think the most -- the biggest influence in Q1 is that we always boost marketing spend in Q1. It's like something we've done over the years, and Q1 here wasn't different. But also, we do see more competition in some areas, some have pulled in, then pulled back. And so I think it made us like stay within the same boundaries we feel comfortable with. We didn't chase them or downgraded. But -- so there is slightly more competition this quarter than before.

是羅伊。所以我們在效果行銷中看到的，我認為第一季影響最大的是我們總是在第一季增加行銷支出。這就像我們多年來所做的事情，第一季也不例外。而且，我們確實看到某些領域的競爭更加激烈，有些領域已經進入，然後又縮小。所以我認為這讓我們喜歡待在我們感到舒服的界限內。我們沒有追趕他們，也沒有降級。但是——所以本季的競爭比以前稍微激烈一些。

Okay. All right. Great. That makes sense. And then I'm curious on the CRM and the dev tools. Does one of them end up lending itself to better cross-sell or upsell with work management than the other?

好的。好的。偉大的。這就說得通了。然後我對 CRM 和開發工具感到好奇。其中一個最終是否能夠比另一個更好地透過工作管理進行交叉銷售或追加銷售？

Yes, I can take it. Jackson, it's Eran. So we didn't see any -- one of those tools perform better compared to the other one, both in terms of CRM and dev. We see good traction in customers adding more products over time. Same goes from work management itself. We see customers starting to use CRM and dev, I'll say, roughly in the same ratio. So we don't see any significant change.

是的，我可以接受。傑克遜，我是伊蘭。所以我們沒有看到任何一種工具——無論是在 CRM 還是開發方面，其中一種工具比另一種工具表現得更好。隨著時間的推移，我們看到客戶添加更多產品的動力良好。工作管理本身也是如此。我想說，我們看到客戶開始使用 CRM 和開發，比例大致相同。所以我們沒有看到任何重大變化。

I will say that we're very encouraged from the fact customers are trying more products over time. And again, now the products are rolled out to the entire population, and we have more opportunity to do cross-sell. And over time, we hope that we'll be able to land bigger and bigger deals in both of those products like we've done with work management in the past.

我想說的是，隨著時間的推移，客戶嘗試更多產品的事實使我們深受鼓舞。再說一遍，現在產品已向全民推出，我們有更多機會進行交叉銷售。隨著時間的推移，我們希望能夠在這兩種產品上達成越來越大的交易，就像我們過去在工作管理方面所做的那樣。

I can add. It's Roy. That we do see a different behavior within larger and smaller customers, whereas smaller customers tend to adopt more quickly. Other products and larger ones requires like more time or effort.

我可以補充一下。是羅伊。我們確實看到大客戶和小客戶有不同的行為，而小客戶往往會更快採用。其他產品和較大的產品需要更多的時間或精力。

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

你的下一個問題來自阿瓊·巴蒂亞 (Arjun Bhatia) 和威廉·布萊爾 (William Blair) 的對話。

Perfect. Nice job here on a strong start to the year. Maybe if I can start with just the competitive environment. Certainly, you had really strong Q1 results. It seems like pricing is contributing to that, but core demand also seems strong. And what we're hearing from other software vendors is that the SMB market is certainly a little bit choppy.

完美的。幹得好，今年開局良好。也許我可以從競爭環境開始。當然，你們第一季的業績非常強勁。價格似乎是造成這種情況的原因之一，但核心需求似乎也很強勁。我們從其他軟體供應商聽到的是，中小企業市場肯定有點不穩定。

So I'm curious how you're thinking of the shift in competitive dynamics in the industry. I think you've been taking share over the last several quarters, but when you look out at your competitors, how has behavior changed? Are customers consolidating more? Talk us through some of the trends that you're seeing that's enabling the growth here.

所以我很好奇您如何看待產業競爭動態的轉變。我認為您在過去幾個季度中一直在搶佔市場份額，但是當您觀察競爭對手時，您的行為發生了怎樣的變化？客戶是否更多地整合？請告訴我們您所看到的一些促進這裡成長的趨勢。

Yes. Sure. Arjun, it's Eliran. So maybe I will start with SMBs. As you know, since we reported monday, SMB continue to be very strong segment. It's around 45% of our total ARR. And we continue to invest significantly in performance marketing always in Q1 alongside mid-market and enterprise to maintain this.

是的。當然。阿瓊，我是埃里蘭。所以也許我會從中小企業開始。如您所知，自從我們週一報導以來，中小企業仍然是非常強勁的細分市場。大約占我們總 ARR 的 45%。我們繼續在第一季與中階市場和企業一起在效果行銷上進行大量投資，以維持這一點。

In addition, I think that what we mentioned earlier, the new product are resonating well with SMB customers, both CRM and dev, together with the features and functionalities that we are introducing to the market. Also, we were encouraged by the fact that when we did the pricing adjustment, we didn't see a reaction that was overstated, but actually better than what we anticipated. So it's also kind of we gained confidence in the SMB segment.

此外，我認為我們之前提到的新產品以及我們向市場推出的特性和功能與中小企業客戶（包括 CRM 和開發人員）產生了良好的共鳴。此外，令我們感到鼓舞的是，當我們進行定價調整時，我們沒有看到誇大的反應，但實際上比我們預期的要好。因此，我們對中小企業市場也有了信心。

And one thing that our peers -- you mentioned in terms of competition, our peers mentioned in the past that they are focusing more on -- sorry, on upmarket enterprise account, and I think which allows us to focus even more on SMBs and gain market share. So all in all, in terms of competition, I feel we are in a very good place with regards to SMBs, and we have no major concerns versus the other periods.

And one thing that our peers -- you mentioned in terms of competition, our peers mentioned in the past that they are focusing more on -- sorry, on upmarket enterprise account, and I think which allows us to focus even more on SMBs and gain市場占有率.總而言之，就競爭而言，我覺得我們在中小企業方面處於非常有利的位置，與其他時期相比，我們沒有什麼大問題。

Perfect. Very helpful. And then the other one, you launched several new kind of AI capabilities this quarter. I read about some of them in the shareholder letter. But when you think about the impact I know it's still early, but the impact that AI is having in your customer base, I'm curious how you're seeing adoption and the usage of those capabilities.

完美的。很有幫助。另一方面，你們本季推出了幾種新型人工智慧功能。我在股東信中讀到了其中一些內容。但是，當你考慮到人工智慧對客戶群的影響時，我知道現在還為時過早，我很好奇你如何看待這些功能的採用和使用。

And then Roy or Eran, when you think out longer term, how much do you think these new capabilities are going to make it easier for users and customers to build on top of monday? And what do you think that does from just a user adoption as you think out over the next year or 2 here?

然後，羅伊或埃蘭，當你從長遠考慮時，你認為這些新功能會讓用戶和客戶在周一的基礎上更輕鬆地進行構建嗎？您認為，當您在未來一兩年內考慮用戶採用時，這會帶來什麼影響？

It's Roy. So we just rolled out the initial phase of our AI building blocks like we talked about in the Investor Day. And we see great initial results from that because people actually use it to build new workflows. And they really harness the power of AI to do a lot of stuff they would normally do themselves.

是羅伊。因此，我們剛剛推出了人工智慧建構模組的初始階段，就像我們在投資者日談到的那樣。我們從中看到了很好的初步結果，因為人們實際上使用它來建立新的工作流程。他們確實利用人工智慧的力量來做很多他們通常自己做的事情。

Regarding to your question about platform adoption, I think like AI plays 2 parts. One is giving people, our customers more capabilities and making them stickier and increasing automations, and a lot of things they can now do with the platform, but also adopt the platform itself and do a lot of like, let's say, harder tasks for them like creating formulas, like building boards, connecting things and also suggesting things they might do. So that's like another direction we're always pushing towards. So yes on both.

關於你關於平台採用的問題，我認為人工智慧扮演兩個角色。一是為人們、我們的客戶提供更多功能，使他們更具黏性並提高自動化程度，他們現在可以使用該平台做很多事情，但也採用平臺本身，為他們做很多更困難的任務例如創建公式、建造木板、連接事物、建議他們可能做的事情。這就像我們一直在努力的另一個方向。所以兩者都是。

And like in the next year or so, we expect the adoption to increase dramatically and that our customer base will adopt all those capabilities.

就像明年左右一樣，我們預計採用率將大幅增加，並且我們的客戶群將採用所有這些功能。

Your next question comes from the line of Kash Rangan with Goldman Sachs.

你的下一個問題來自高盛的 Kash Rangan。

Roy, Eran and Eliran, congratulations on the quarter. Very few companies have been able to put up the kind of numbers that you have in this Q1, so really kudos to you guys.

羅伊（Roy）、埃蘭（Eran）和埃利蘭（Eliran），祝賀這個季度。很少有公司能夠提供像你們在第一季那樣的數據，所以真的向你們表示敬意。

My question is in regards to the move upmarket or the enterprise, I mean, it's very rare to see companies move this effectively and rapidly upmarket and maintain the [dominance]. When I look at your 50,000-plus customers, 100,000 plus customers, the net new ARR growth is phenomenal, the revenue growth there is phenomenal, while you still continue to maintain your pace in the lower end of the market.

我的問題是關於向高端市場或企業的轉移，我的意思是，很少看到公司如此有效、快速地向高端市場轉移並保持[主導地位]。當我觀察你們的 50,000 多個客戶、100,000 多個客戶時，淨新 ARR 成長是驚人的，收入成長也是驚人的，而你們仍然繼續保持在低端市場的步伐。

So the question is, what are the new -- what are the products that are being taken up by the larger enterprise customers? Are there deployment differences in what they're consuming and the potential for more revenue within the installed base? Because it just looks like it's just getting started in the upmarket motion, so, 50,000, 100,000, and changes you're making to go more deliberately (inaudible) market.

所以問題是，什麼是新產品──大型企業客戶正在採用哪些產品？他們所消耗的資源以及在安裝基礎上獲得更多收入的潛力是否存在部署差異？因為看起來它剛開始進入高端市場，所以，50,000、100,000，以及您正在做出的改變，以更加謹慎地（聽不清楚）市場。

Also one for Eliran, sorry. Your net expansion rates in the 50,000 cohort looks very solid. As your business really tilts more and more towards the 50,000 plus cohort, shouldn't this be an encouraging sign for overall net expansion rates improving for the company in the quarters ahead?

抱歉，還有一張是給伊萊蘭的。你們在 50,000 人中的淨擴張率看起來非常穩定。隨著您的業務確實越來越向 50,000 多人的群體傾斜，這難道不是一個令人鼓舞的跡象，表明公司在未來幾個季度的整體淨擴張率將有所改善嗎？

Yes. Kash, this is Eran. So look, I think -- in terms of CRM and dev, it's mostly SMBs now. And I think with work management, we really were able to -- and it's a huge challenge. It's a great product that is suitable for SMBs, but also can scale for the enterprise customers. And we managed to do that. It was a very focused effort from our side and very important for us. And we actually -- this is how we built the company, so we can hear the voice and the feedback from both the SMBs and the larger enterprises. And we're going to do and apply the same secret sauce to our CRM and dev products, because we understand how important it is, not just to scale upmarket, but also to keep that traction of our SMB customers, is such an important funnel for us.

是的。卡什，這是埃蘭。所以，我認為，就 CRM 和開發而言，現在主要是中小企業。我認為透過工作管理，我們確實能夠做到——這是一個巨大的挑戰。這是一款適合中小企業的出色產品，但也可以針對企業客戶進行擴展。我們成功做到了這一點。這是我們非常專注的努力，對我們來說非常重要。事實上，我們就是這樣建立公司的，這樣我們就可以聽到來自中小企業和大型企業的聲音和回饋。我們將在 CRM 和開發產品中採用相同的秘訣，因為我們了解它的重要性，不僅要擴大高端市場，還要保持對中小型企業客戶的吸引力，這是一個非常重要的漏斗為了我們。

So basically, this is how we think about these new products, and we're applying the same methodology that we've done to work management. And overall, adding that product suite really helps also scale into the enterprise because they can use multiple products and deploy multiple products at the same time, which really contribute towards our NDR in the larger customers. So that's how we see it in terms of the multiproduct.

基本上，這就是我們對這些新產品的看法，我們正在應用與工作管理相同的方法。總的來說，添加該產品套件確實有助於擴展到企業，因為他們可以使用多種產品並同時部署多種產品，這確實有助於我們在大客戶中的 NDR。這就是我們對多產品的看法。

And maybe I will follow up on Eran, Kash, to your next question. So maybe just to add, we continue to invest in the platform itself and add more capabilities in order to support the scale of the enterprise customers. Just as a reminder, mondayDB is going to continue to develop and evolve, again, to help us scale with larger customers. We are adding additional features and functionalities like add-ons, all kinds of functionalities that will be more suitable for the enterprise customers that some of our peers already have. So this is an area of investment.

也許我會跟進 Eran、Kash，回答你的下一個問題。因此，也許只是補充一下，我們繼續投資平臺本身並添加更多功能，以支援企業客戶的規模。提醒一下，mondayDB 將再次繼續發展和發展，以幫助我們擴大規模以適應更大的客戶。我們正在添加額外的功能和功能，例如附加元件，以及更適合我們的一些同行已經擁有的企業客戶的各種功能。所以這是一個投資領域。

Now to your question, we continue to go upmarket and what it means to us. So I think, for us, Kash, we are consistent with the fact that we are saying, look, we are servicing all of the segments. We care about the SMBs. We care about the mid-market because we think there is a huge opportunity there. But we also want to make sure that we go upmarket because this is a more, in terms of retention, stickiness and larger and larger deals, I think this is something that we would like also to see coming in the next few quarters.

現在回答你的問題，我們繼續進軍高端市場，這對我們意味著什麼。所以我認為，對於我們卡什來說，我們堅持這樣一個事實：看，我們正在為所有細分市場提供服務。我們關心中小企業。我們關心中端市場，因為我們認為那裡有巨大的機會。但我們也想確保我們進入高端市場，因為就保留率、黏性和越來越大的交易而言，我認為這也是我們希望在未來幾季看到的事情。

And I think this year with the price increase and everything that we are introducing to the market, by the end of the year, after we roll out most of the price increase and to see what will be the reaction of the bigger and larger customers, we'll have more confidence on -- and have better visibility on the future years. But this is a journey. So currently, the direction looks very good. But again, we have to see how it progressed throughout the year.

我認為今年隨著價格上漲以及我們向市場推出的所有產品，到今年年底，在我們推出大部分價格上漲之後，看看越來越大的客戶會有什麼反應，我們將對未來幾年更有信心並有更好的預見性。但這是一段旅程。所以目前看來，這個方向非常好。但同樣，我們必須看看這一年的進展如何。

Congratulate, Eliran, on growth and free cash flow margins. That's phenomenal.

恭喜 Eliran 的成長和自由現金流利潤率。這是驚人的。

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

您的下一個問題來自 DJ Hynes 和 Canaccord Genuity 的線路。

I'll echo everyone else's sentiments, congrats. It's a great quarter. Eran, maybe I can start with you just in terms of progress with the development of the service product offering, I think it's on track there. And I guess, broadly, anything you're seeing in the base in terms of usage patterns or any other observations that make you more or less confident in the direction of product development?

我會同意其他人的觀點，恭喜。這是一個很棒的季度。 Eran，也許我可以從服務產品開發的進展方面與您開始，我認為它已經步入正軌。我想，從廣義上講，您在基礎中看到的使用模式或任何其他觀察結果使您對產品開發的方向或多或少有信心？

Yes. DJ, this is Eran. So yes, we're very excited (inaudible) service. We're going to launch it towards the end of the year, end of 2024. We already have an alpha version. We are talking with a few customers that are now trying the product. And overall, like the reaction is very positive. I can also mention we -- I think we mentioned this briefly in the Investor Day, but there's a lot of demand from our customer base towards monday service, a lot of excitement. And I can share that the initial feedback from customers is very encouraging. So really excited for this.

是的。 DJ，這是埃蘭。所以，是的，我們對服務感到非常興奮（聽不清楚）。我們將在 2024 年底推出它。我們正在與一些正在嘗試該產品的客戶進行交談。總的來說，反應非常正面。我還可以提到我們——我想我們在投資者日簡短地提到了這一點，但是我們的客戶群對週一的服務有很多需求，很多令人興奮的事情。我可以分享的是，客戶的初步回饋非常令人鼓舞。對此感到非常興奮。

But obviously, it's a new product. It's going to take time to gain traction and momentum. But like I said, we're very excited for the release of that. And I think that's another step towards our vision of managing the core of work. I feel that service, whether it's IT or HR requests, or any other form of in-company ticketing system, is such an important part of that vision. So that's why we're very excited for that product release.

但顯然，這是一個新產品。獲得吸引力和動力需要時間。但就像我說的，我們對它的發布感到非常興奮。我認為這是我們朝著管理核心工作的願景邁出的又一步。我認為服務，無論是 IT 或 HR 請求，還是任何其他形式的公司內部票務系統，都是該願景的重要組成部分。這就是為什麼我們對該產品的發布感到非常興奮。

Yes, makes sense. And then, Eliran, a follow-up for you. I think last quarter you told us 20% of the base is monthly, 80% is annual. That 80% where the price increases kind of coming on a rolling basis. Is there anything we should think about in terms of linearity of the renewal pool, just in terms of tactically kind of where those price increases might impact the model as we look over the next 4 quarters?

是的，有道理。然後，Eliran，為您提供後續行動。我想上個季度您告訴我們 20% 的基數是月度的，80% 是年度的。這 80% 的價格上漲是滾動的。在續訂池的線性方面，我們應該考慮什麼，只是在戰術上，當我們展望未來 4 個季度時，這些價格上漲可能會影響模型？

DJ, it's a great question actually, yes. So we believe we're going to complete the rollout of the new pricing for the annual subscribers by H1 of next year. So think about the next 12 months from now because we introduced it on late February, now they are getting into -- upon renewal, we're going to see. So probably the next 12 months to 15 months, this is when it's going to be completed.

DJ，這其實是一個很好的問題，是的。因此，我們相信我們將在明年上半年完成針對年度訂閱者的新定價的推出。因此，請考慮一下從現在開始的未來 12 個月，因為我們在 2 月底推出了它，現在他們正在進入 - 續訂後，我們將拭​​目以待。所以可能在接下來的 12 個月到 15 個月內，它就會完成。

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

你的下一個問題來自 Derrick Wood 和 TD Cowen 的對話。

Great. And congrats on a good quarter, guys. The -- last quarter, you guys talked about softness in late December and into January with less seat expansion and still some seat downgrades happening. It sounded like things got better through the quarter. Can you just comment on what you saw improved in February and March? And I guess, since you're halfway through Q2 now, how demand trends have tracked quarter-to-date so far?

偉大的。夥計們，恭喜您度過了一個美好的季度。上個季度，你們談到了 12 月下旬和 1 月的疲軟情況，席位擴張減少，但仍然發生了一些席位降級。聽起來這個季度情況有所改善。您能簡單評論一下您在二月和三月看到的改進嗎？我想，既然第二季度已經過去一半了，那麼到目前為止，需求趨勢如何追蹤季度至今？

Yes, Derrick, I can start. This is Eran, and if anyone wants to follow up. So yes, I think previous quarter, we just were starting the year, we were kind of rolling out the price increase, and I think there was a lot of uncertainty about the sector that, like we mentioned in the previous earnings call, it was the first time we ever raised prices for our base -- for our customer base.

是的，Derrick，我可以開始了。我是 Eran，如果有人想跟進的話。所以，是的，我認為上個季度，我們剛開始新的一年，我們正在推出價格上漲，我認為該行業存在許多不確定性，就像我們在之前的財報電話會議中提到的那樣，這是我們第一次為我們的基礎——我們的客戶群提高價格。

I think what changed is 2 things. One, we thought that price increase was -- the reception for that from a customer base was very positive. We were even encouraged by the feedback. And overall, we saw a lower churn profile, less downgrades than we expected, and great feedback from customers. So I think that was very encouraging. In addition to that, we saw great demand from all segments, including SMB in Q1, and overall strong momentum in the business. And I think that's what tells us to be more optimistic towards the end of the year and seeing great momentum building up throughout the year. I think that was fundamentally changed.

我認為改變的是兩件事。第一，我們認為客群對此漲價的反應非常正面。我們甚至對反饋感到鼓舞。整體而言，我們看到客戶流失率較低，降級次數低於我們的預期，且客戶回饋良好。所以我覺得這非常令人鼓舞。除此之外，我們在第一季看到包括中小企業在內的所有細分市場的巨大需求，以及整體業務的強勁勢頭。我認為這告訴我們對年底更加樂觀，並看到全年的強勁勢頭。我認為這已經從根本上改變了。

Yes. Maybe I would just add. This is Eliran, that the market is still inconsistent and choppy, but we feel like the momentum for us is relatively good and encouraged by what Eran said to the rest of the year.

是的。也許我會補充一下。這就是 Eliran，市場仍然不穩定且波動，但我們覺得我們的勢頭相對較好，並且受到 Eran 對今年剩餘時間所說的話的鼓舞。

Great. And maybe for Eliran. Would you be able to quantify the benefit from price increases in the quarter? And remind us, I guess you said $25 million tailwind this year. Is that -- what was the previous assumption?

偉大的。也許是為了埃利蘭。您能否量化本季價格上漲帶來的收益？請提醒我們，我猜您說的是今年 2500 萬美元的順風車。那是──之前的假設是什麼？

So the previous assumption was between $50 million to $20 million. Just as a reminder, this is revenue. Revenue is the derivative of the ARR. So if you take -- very -- by and large, you get the ARR throughout the year and the revenue is recognized on a monthly basis. This is something we increase the numbers. We feel now this is the contribution of the price increase because much of the effect of the annual renewals is going to be either throughout the second part of the year or next year because of the fact that you get 1 divided by 12 of this contract when they are renewed. So we feel the $25 million is pretty solid number.

所以之前的假設是5000萬到2000萬美元之間。提醒一下，這是收入。收入是ARR 的導數。因此，如果您總體而言，您將獲得全年的 ARR，並且收入按月確認。這是我們增加數字的東西。我們現在認為這是價格上漲的貢獻，因為年度續約的大部分影響將在今年下半年或明年進行，因為當您獲得此合約的 1 除以 12 時，您將獲得該合約的 1 除以 12他們被更新了。所以我們認為 2500 萬美元是一個相當可靠的數字。

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

您的下一個問題來自布倫特希爾 (Brent Thill) 與傑弗里斯 (Jefferies) 的對話。

It sounds like SMB is fine, so that was good to hear. I guess when you think about the upper end of the mid-market and large enterprise, can you just expand on what you're seeing? I know you're beginning to see some larger seat counts and bigger enterprise spend. Are these enhancements to the underlying platform helping you scale up and win some of these larger enterprise? Can you give us a sense of what's happening there?

聽起來 SMB 很好，所以很高興聽到這個消息。我想當您考慮中階市場和大型企業的高端時，您可以擴展您所看到的內容嗎？我知道您開始看到更多的座位數和更大的企業支出。這些對底層平台的增強是否可以幫助您擴大規模並贏得一些大型企業？你能讓我們了解那裡發生了什麼事嗎？

Yes. Brent, this is Eran. So yes, definitely, in addition to the SMB segment, we continue to see good momentum with the larger enterprises. So obviously, we had that big deal that we announced 2 quarters ago. But we still see great deals building up in the pipeline and, hopefully, will convert into more of such enterprise opportunities. But overall, the enterprise pipeline looks very healthy, and hoping for more big deals like that coming up in 2024.

是的。布倫特，這是埃蘭。所以，是的，當然，除了中小企業領域之外，我們繼續看到大型企業的良好勢頭。顯然，我們在兩個季度前宣布了一項重大交易。但我們仍然看到大量交易正在醞釀中，並有望轉化為更多此類企業機會。但總體而言，企業管道看起來非常健康，並希望在 2024 年出現更多類似的大型交易。

And when you think about the kind of the infrastructure that you're putting in, whether it's go-to market, the platform scalability, just give us an example of what you're doing to get ready. I guess many have kind of cited, is this the same strategy that Salesforce saw when they started small, went large, and ultimately large became bigger than small. Are you seeing something similar to their pathway? What's giving you confidence that you can make that move?

當您考慮要投入的基礎設施類型時，無論是上市還是平台可擴展性，請給我們一個例子，說明您正在做哪些準備工作。我想很多人都提到過，這是否與 Salesforce 從小規模開始、逐漸擴大、最終變得比小規模更大時所看到的策略相同。您是否看到與他們的路徑類似的東西？是什麼讓您有信心採取這項行動？

Yes. So again, I don't know the details of what Salesforce has done, but we've been working very hard on our infrastructure to support it. Obviously, we've talked about mondayDB, but this is going to be a flagship project for us as a company. And we continue to roll out minor versions and we have some major version coming up. Also, we make a lot of improvements to the platform, not just in terms of features and functionality, but also in terms of security and governance and permissions.

是的。再說一次，我不知道 Salesforce 所做的事情的細節，但我們一直在努力建立基礎設施來支援它。顯然，我們已經討論過 mondayDB，但這將成為我們公司的旗艦項目。我們繼續推出次要版本，並且即將推出一些主要版本。此外，我們對平台進行了大量改進，不僅在特性和功能方面，而且在安全性、治理和權限方面。

It's an ongoing work for us and we talk with customers consistently and keep improving the platform. And also we improve our go-to market and the way we navigate ourselves within organization and reaching decision-makers. So all in all, if I could bind anything -- everything I said, working on the infrastructure, working on the product, working on the go-to market and our sales team. And we're very optimistic in our ability to continue and scale in the enterprise segment.

這對我們來說是一項持續的工作，我們不斷與客戶交談並不斷改進平台。我們也改進了進入市場以及在組織內自我導航和接觸決策者的方式。總而言之，如果我可以綁定任何東西 - 我所說的一切，在基礎設施上工作，在產品上工作，在進入市場和我們的銷售團隊上工作。我們對我們在企業領域繼續發展和擴大規模的能力非常樂觀。

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

你的下一個問題來自喬治伊凡尼克和奧本海默的對話。

Congrats on the strong results. You continue to steadily add to your channel and partner programs. Can you give us some color on the impact that this is having on your deal pipeline and on the CRM and dev momentum as well?

祝賀取得強勁的成果。您繼續穩定地添加您的頻道和合作夥伴計劃。您能否向我們介紹一下這對您的交易管道以及 CRM 和開發動力的影響？

This is Roy. So yes, we're very proud of the partner channels we have. We have great partners, and we are continuing to add more. We are more -- like we are with the entire organization, with the partners, we're also focused on going upmarket and deepening what partners do with our customers, like more services, helping them scale, giving consultancy and so on, essentially supporting us in regions we don't have sales, but also in the regions we do operate ourselves. And we see that as a great thing going forward we invest more in.

這是羅伊。所以，是的，我們對我們擁有的合作夥伴管道感到非常自豪。我們擁有優秀的合作夥伴，並且我們正在繼續增加更多合作夥伴。我們更像是——就像我們與整個組織、與合作夥伴一樣，我們也專注於進入高端市場並深化合作夥伴與我們的客戶所做的事情，例如更多的服務，幫助他們擴大規模，提供諮詢等等，本質上是支持我們不僅在沒有銷售的地區，而且在我們自己經營的地區。我們認為這是一件偉大的事情，我們將對此進行更多投資。

Maybe just to add to what Roy said, we have a robust partner network now with over 180 channel partners with some of the top world SIs, like Accenture, Hitachi, KPMG. And we're also building a lot of ISVs on our marketplace. So this is an area of investment that will continue to generate ARR and potential opportunities for us.

也許只是為了補充 Roy 所說的內容，我們現在擁有強大的合作夥伴網絡，擁有 180 多個通路合作夥伴，其中包括埃森哲、日立、畢馬威等一些世界頂級 SI。我們還在我們的市場上建立了許多 ISV。因此，這是一個將繼續為我們帶來ARR和潛在機會的投資領域。

And Eliran, maybe can you give us some color on how the international markets are behaving on a relative basis?

Eliran，也許您能給我們一些有關國際市場相對錶現的資訊嗎？

Sure. So George, for us, it's pretty stable. If you think about our business, around 50% is coming from North America, I believe 52% coming from the U.S. and Canada. We are seeing very strong momentum in Europe. And in places where we don't have sales organizations, we operate, to your prior question, with partners. The momentum is good and relatively stable in terms of international expansion.

當然。所以喬治，對我們來說，這是相當穩定的。如果你想想我們的業務，大約 50% 來自北美，我相信 52% 來自美國和加拿大。我們看到歐洲的勢頭非常強勁。對於您之前的問題，在我們沒有銷售組織的地方，我們與合作夥伴合作。國際擴張勢頭良好且相對穩定。

Your next question comes from the line of Michael Berg with Wells Fargo Securities.

您的下一個問題來自富國銀行證券公司的 Michael Berg。

Congrats on the success in the quarter. I wanted to ask what your -- what you feel is allowing you to see success in this choppy macro, in particular with SMBs. Is there anything in particular about your product or go-to-market or even just like the increased breadth of the offering now that's allowing you to see this incremental success relative to many of the other SMB software vendors in this market?

恭喜本季取得的成功。我想問一下，您的感覺是什麼，讓您能夠在這個動蕩的宏觀環境中看到成功，特別是在中小企業方面。您的產品或上市有什麼特別之處嗎？

It's Roy here. So we feel very strong with SMBs as we saw that -- because monday is a platform and you can do a lot of things with, we see that they really rely on us in these times and kind of add more use cases and see the true value of the platform.

這裡是羅伊。因此，我們對中小企業的感覺非常強烈，因為我們看到了這一點- 因為星期一是一個平台，你可以用它做很多事情，我們看到他們在這些時候真的依賴我們，並且添加了更多用例並看到了真實的情況平台的價值。

And so that's why we keep seeing that they are very stable throughout this last period, while we're also very strong in acquiring new ones. As Eliran mentioned, we see like less competition in general because like other players have chosen to go upmarket and we're really pushing on performance marketing and really understanding how to reach those customers on growing scale. So it's a very good market for us.

這就是為什麼我們一直看到它們在最後一個時期非常穩定，而我們在收購新產品方面也非常強大。正如 Eliran 所提到的，我們認為整體競爭較少，因為就像其他參與者選擇進入高端市場一樣，我們正在真正推動績效行銷，並真正了解如何以不斷擴大的規模接觸這些客戶。所以這對我們來說是一個非常好的市場。

Makes sense. And then one quick follow-up. Free cash flow had a really nice performance in the quarter and you raised that outlook fairly nicely for the rest of the year. Anything in particular driving the strength in free cash flow dynamics relative to where you were expecting at the beginning of the year?

說得通。然後是快速跟進。自由現金流在本季度的表現非常好，您相當好地提高了今年剩餘時間的前景。相對於您年初的預期，有什麼特別因素推動了自由現金流動態的增強？

Yes, sure. So Michael, in terms of kind of the variance between free cash flow and operating profit. So I would say 50% is related to strong cash collection from the SMBs as we see strong top-of-funnel activity. The price uplift, as a reminder, we -- it was mostly the monthly ones in February and some upmarket contracts. Around 20% of this is related to interest income, due to the healthy balance sheet that we have.

是的，當然。邁克爾，就自由現金流和營業利潤之間的差異而言。因此，我想說 50% 與中小型企業的強勁現金回收有關，因為我們看到漏斗頂部活動強勁。提醒一下，價格上漲主要是二月的月度合約和一些高端合約。由於我們擁有健康的資產負債表，其中約 20% 與利息收入相關。

And I would say around 30% is related to normal timing of expenses. Just as a reminder, we expect free cash flow margin to come down in Q2 due to seasonality as we pay bonuses, this is -- price -- sorry, salary increases are being paid in Q2 as well as the head count that we hired in Q1 also going to be fully onboarded in Q2.

我想說大約 30% 與正常的支出時間有關。提醒一下，我們預計第二季度的自由現金流利潤率會因季節性因素而下降，因為我們支付獎金，這是——價格——抱歉，第二季度的工資增長以及我們僱用的員工數量都在第二季支付。

But overall, we feel very comfortable with what we said, to generate $1 billion of free cash flow over the period of 2023 to 2026, and striving to get 25% annual free cash flow margin, as we said.

但總體而言，我們對我們所說的感到非常滿意，即在 2023 年至 2026 年期間產生 10 億美元的自由現金流，並努力獲得 25% 的年度自由現金流利潤率，正如我們所說。

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

您的下一個問題來自花旗銀行的史蒂夫恩德斯 (Steve Enders)。

Okay. Great. And congrats on the results, pretty impressive given the macro, it seems like we're seeing out there. I guess maybe just to start, I want to ask on the CRM side, and now that that's kind of like fully rolled out or able to be sold into the base, how are you kind of viewing the opportunity to drive that and maybe potentially converting customers who are already using monday as a CRM into that solution set? Like do you view that as kind of being the real bulk of the opportunity? Or kind of like what are the catalysts to potentially convert some of those customers over into using the full-blown CRM solution from you?

好的。偉大的。恭喜你的結果，考慮到宏觀的情況，相當令人印象深刻，看來我們已經看到了。我想也許只是開始，我想問一下 CRM 方面，現在這有點像全面推出或能夠銷售到基地，您如何看待推動這一點的機會，並可能潛在地轉換已經使用Monday 作為該解決方案集的CRM 的客戶？您是否認為這是真正的大部分機會？或者類似於哪些催化劑可能會促使其中一些客戶轉而使用您提供的成熟的 CRM 解決方案？

Yes, Steven, this is Eran. So I'll answer into 2. I think with the smaller accounts, the SMBs, it's going to be easier. Some of them are not using a CRM. So it was an easy adoption for us. The other, we're also working on a bunch of migration tools. So I think for the smaller customers, we're seeing faster adoption, it's going to be easier.

是的，史蒂文，這是伊蘭。所以我會回答 2。其中一些沒有使用 CRM。所以這對我們來說很容易採用。另一方面，我們也在開發一系列遷移工具。因此，我認為對於較小的客戶來說，我們會看到更快的採用速度，並且會更容易。

For the larger ones, it's a bit more complicated. It's not just seen -- we haven't (inaudible) product. We need to talk with the decision makers. So that's kind of another we're working on, on reaching different functions within the organization and doing more top-down selling to those accounts. And obviously, we also need to mature the price a little bit in order to support it.

對於較大的，情況會稍微複雜一些。這不僅僅是看到的——我們還沒有（聽不清楚）產品。我們需要與決策者交談。因此，這是我們正在進行的另一項工作，涉及組織內的不同職能，並向這些客戶進行更多自上而下的銷售。顯然，我們還需要讓價格稍微成熟一點才能支撐它。

So I can say that we've seen already great cross-sell from SMBs. And over time, we'll see more and more of the large organizations adopting full-blown CRM or monday dev.

所以我可以說，我們已經看到來自中小企業的巨大交叉銷售。隨著時間的推移，我們將看到越來越多的大型組織採用成熟的 CRM 或週一開發。

Okay. Great. That's helpful context. And then I guess maybe on the pricing side and some of the customer behavior that you're seeing, I guess, maybe how is the -- is there a difference between maybe what you're hearing from -- or what you're seeing from the monthly customers versus some of the annuals as they're beginning to come up on renewal and now that you have a couple of months of data here?

好的。偉大的。這是有用的背景。然後我想也許在定價方面以及你所看到的一些客戶行為，我想，也許你聽到的或你看到的之間有什麼區別嗎？開始更新，現在您這裡有幾個月的數據？

Yes. So this is Eran again. So yes, overall, like we're very -- the results are pretty solid, we're very happy with the churn profile. We haven't seen much increase in terms of churn. Same goes for downgrades. So obviously, the monthlies are most impacted because they can make a decision to leave at any given time basically. And we ran our own model and we thought the results are even better than we expected.

是的。這又是埃蘭。所以，是的，總的來說，我們非常——結果非常可靠，我們對客戶流失非常滿意。我們沒有看到客戶流失率有太大增加。降級也是如此。顯然，月刊受到的影響最大，因為他們基本上可以在任何給定時間做出離開的決定。我們運行了自己的模型，我們認為結果甚至比我們預期的還要好。

So for us, it adds a lot of confidence. And we even expect the annual accounts to behave even in a better way because they're a little bit less price sensitive. So all in all, in terms of churn, downgrades, we don't see any major impact, and we see accounts continue and upgrade their accounts, even the ones that obviously got their price increase. So overall, very encouraged from the results.

所以對我們來說，增加了很多信心。我們甚至預計年度帳目會表現得更好，因為它們對價格的敏感度稍低。總而言之，就流失、降級而言，我們沒有看到任何重大影響，我們看到帳戶繼續併升級他們的帳戶，即使是那些明顯價格上漲的帳戶。總的來說，結果非常令人鼓舞。

Your next question comes from the line of Mike Funk with Bank of America.

您的下一個問題來自美國銀行的 Mike Funk。

Yes. Thank you for the question, and good to see reports of weakness were greatly exaggerated in the quarter. So happy to see that. A couple of questions if I could. So first, on competitive deals, where you do see them, love to get some insight from you on whether or not you're winning more of the competitive deals. And if you are, what you think the differentiator is to drive success with those.

是的。謝謝您的提問，很高興看到本季的疲軟報告被嚴重誇大了。很高興看到這一點。如果可以的話，請教幾個問題。因此，首先，在有競爭力的交易中，當您確實看到它們時，希望從您那裡獲得一些關於您是否贏得更多競爭性交易的見解。如果您是，那麼您認為差異化因素就是透過這些來推動成功。

It's Roy here. So I think like we see great traction within the competitors when we do compete on larger deals, we see that we are able to compete very well. And we are working hard on our road map to even close all gaps that we have against competitors. So I think we're in a really great place with work management compared to competitors within the enterprise space.

這裡是羅伊。因此，我認為，當我們在更大的交易上競爭時，我們會看到競爭對手的巨大吸引力，我們看到我們能夠很好地競爭。我們正在努力製定路線圖，以縮小我們與競爭對手的所有差距。因此，我認為與企業領域的競爭對手相比，我們在工作管理方面處於非常好的位置。

And the CRM and dev, like Eran said, we -- it's still early days compared to the other very large competitors out there, but we do see great traction more on the SMB side and compete on those fronts really well, SMB to small mid-market.

CRM 和開發人員，就像Eran 所說，與其他非常大的競爭對手相比，我們還處於早期階段，但我們確實看到SMB 方面有更大的吸引力，並且在這些方面的競爭非常好，從SMB 到中小型-市場。

That's helpful. And the second one is actually multipart and relates to price and then churn. So first, how should we think about pricing going forward? Do you plan on having predictable annual price increases or will it be more ad hoc? And then as you do get more cross-sell, can you walk us through how conceptually or quantitatively you think about that benefiting churn? And then the 2 pieces together, price and churn, how does that factor into the growth algorithm longer term?

這很有幫助。第二個實際上是多部分的，與價格有關，然後與客戶流失有關。首先，我們該如何考慮未來的定價？您是否計劃每年進行可預測的漲價，還是更臨時性的漲價？然後，當您確實獲得更多交叉銷售時，您能否向我們介紹您如何從概念或定量上思考這種有益的流失？然後，價格和客戶流失這兩個因素結合在一起，如何影響長期成長演算法？

Sure. So Mike, this is Eliran. With regards to price increase, we try to make sure that when we increase price, we do it based on value that we provide to our customers. We added a lot of value throughout the last few years, and this is why we were only, for the first time, we increased the price for our existing customer base.

當然。麥克，這是埃里蘭。關於提價，我們盡力確保當我們提價時，我們是根據為客戶提供的價值來進行的。在過去的幾年裡，我們增加了許多價值，這就是為什麼我們只是第一次提高現有客戶群的價格。

So I think we don't have a clear answer with regards to what would be the annual yet. But I think overall, we think it will be more tied to value-added -- value-adding rather than just having like the majority of it coming every year.

所以我認為我們對於年度活動還沒有明確的答案。但我認為總體而言，我們認為它將與增值更加緊密地聯繫在一起，而不僅僅是每年都會出現大部分增值。

The second thing, with regards to cross-sell. So I think the combination of us opening the existing products of CRM, dev, together with the work management to existing customers, will allow us to see cross-sell opportunities with existing customer base and potentially with new customers. But it will take probably a few quarters to get a better understanding of the trend. And I think once we have this packaging of the different products alongside the fact that we are introducing additional features and functionalities, cost potentially is going to be with positive momentum, not necessarily having to be tied to a price increase.

第二件事，關於交叉銷售。因此，我認為，我們將現有的 CRM、開發產品與現有客戶的工作管理相結合，將使我們能夠看到與現有客戶群以及潛在的新客戶的交叉銷售機會。但可能需要幾個季度才能更好地了解這一趨勢。我認為，一旦我們有了不同產品的包裝，同時我們正在引入額外的特性和功能，潛在的成本將具有積極的勢頭，而不必與價格上漲掛鉤。

Your next question comes from the line of Scott Berg with Needham.

你的下一個問題來自斯科特·伯格和李約瑟的對話。

Really nice quarter. I have 2 quick ones. The customer counts for CRM and dev are becoming meaningful at this point. How do you think about the types or size of customers that are actually buying that solution today? Are they still some of your smaller customers? Are you seeing some adoption in some of the maybe mid or enterprise customers that you're selling the core platform to?

真的很不錯的季度。我有2個快的。此時，CRM 和開發的客戶數量變得有意義。您如何看待目前實際購買該解決方案的客戶類型或規模？他們還是您的一些小客戶嗎？您是否看到您正在向其銷售核心平台的一些中型或企業客戶中採用了一些產品？

It's Roy. So yes, like we do see CRM and dev play way more on the SMB and small, mid-market rather than the larger customers we have. We do see a very small, let's say, implementations within larger enterprises, but I think we have a very long road map on both products to reach those enterprise -- larger enterprises deployments on such products, if that helps.

是羅伊。所以，是的，就像我們確實看到 CRM 和開發在中小企業和中小型市場而不是我們擁有的較大客戶上發揮更多作用一樣。我們確實看到了大型企業內部的非常小的實施，但我認為我們在這兩種產品上都有一個非常長的路線圖來達到這些企業——大型企業在此類產品上的部署，如果這有幫助的話。

Very helpful. And then, Eliran, you mentioned before contract terms have been pretty consistent. I believe it's 80% annual, 20% monthly. Are you seeing any real, I guess, changes on that one way or the other? I know historically, in times of maybe a little bit of economic pressure, customers will either switch to monthly or only buy monthly upfront to give some flexibility into their spending plans. Just don't know if you're seeing any changes there at all.

很有幫助。然後，Eliran，您之前提到合約條款非常一致。我認為每年 80%，每月 20%。我想，您是否看到這種或另一種方式發生任何真正的變化？我知道，從歷史上看，在經濟有一點壓力的時候，客戶要么改用每月購買，要么只提前每月購買，以便為他們的支出計劃提供一些靈活性。只是不知道您是否看到任何變化。

Scott, Eliran. No, I don't see any change to where we are now. Basically, we saw in the last few years, actually, we saw a transition from monthly to annually. I think the 80-20 kind of, by and large, this is something that is going to be very stable throughout the years. And I don't expect any material changes to that.

史考特，埃里蘭。不，我認為我們現在的處境沒有任何改變。基本上，我們在過去幾年中看到，實際上，我們看到了從每月一次到每年一次的轉變。我認為 80-20 的情況，總的來說，多年來都會非常穩定。我預計這不會發生任何重大變化。

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

您的下一個問題來自瑞銀集團 (UBS) 的泰勒麥金尼斯 (Taylor McGinnis)。

My first one is just going back to the impact from price potentially in 1Q, and maybe ask a different way. So Eliran, is it fair to assume that the uplift would have contributed less than $6 million in 1Q if the contribution should scale throughout the year? Just trying to understand how we think about that trajectory.

我的第一個問題只是回到第一季價格的潛在影響，也許會以不同的方式提出。那麼，Eliran 是否公平地假設，如果全年貢獻規模擴大，第一季的提升貢獻將少於 600 萬美元？只是想了解我們如何看待這個軌跡。

And when you provide that $25 million in uplift, just to clarify, is that the impact just from the installed base? Or does that include the year-over-year impact from potentially higher new customer lands as well too?

當你提供 2500 萬美元的提升時，只是想澄清一下，這只是來自安裝基礎的影響嗎？或者這也包括潛在更高的新客戶群帶來的逐年影響？

So maybe we'll start with the second question. With regard to the $25 million, this is taking into account potentially some scenarios that we did for existing and new customers, modeling all kinds of scenarios. So this is taking everything into account.

那麼也許我們將從第二個問題開始。關於 2500 萬美元，這是考慮到我們為現有和新客戶所做的一些潛在場景，對各種場景進行建模。所以這是考慮到一切的。

With regards to your first question, if I understood it correctly, I think the contribution to a strong performance was, I would say, half, overall, the business, the healthy top of funnel and the fact that we had good momentum with existing customers. And half of it, I would say, was coming from the price increase. If the churn profile would have been worse than what we saw, potentially the numbers would have been lower. If this is -- if I understood correctly, what you asked.

關於你的第一個問題，如果我理解正確的話，我認為對強勁業績的貢獻是，總體而言，一半是業務、健康的漏斗頂部以及我們與現有客戶保持良好勢頭的事實。我想說，其中一半來自價格上漲。如果客戶流失情況比我們看到的更糟糕，那麼數字可能會更低。如果這是——如果我理解正確的話，你問的是什麼。

Perfect. And then my second question is, is that now with CRM widely available this year, it seems like that could be a big opportunity for you guys. And I think if I look back last quarter, penetration of your total customer base was around 6%. So I guess, how are you just thinking about the trajectory of that business? Because it seems like this year could start to get to a scale that, it could add a couple of points to growth. So just out of the gate, would love to see -- would love just a little bit more color in terms of how you guys are thinking about penetration and the trajectory of that.

完美的。我的第二個問題是，隨著今年 CRM 的廣泛應用，這似乎對你們來說可能是一個巨大的機會。我認為，如果我回顧上個季度，您的總客戶群的滲透率約為 6%。所以我想，您是如何看待該業務的發展軌跡的？因為今年似乎可能開始達到這樣的規模，它可以為成長增加幾個百分點。所以剛走出大門，我很想看看——就你們如何思考滲透及其軌跡而言，我希望能有更多的色彩。

Yes. Taylor, this is Eran. So yes, I totally agree, like the cross-sell numbers were looking pretty solid and continue to perform really well, and for us, it just feels like the beginning of taking into our existing customer base. And bear in mind that also for new customers, we encourage them to buy more than just 1 product when they sign up. So there's a lot of potential with new customers as well.

是的。泰勒，這是埃蘭。所以，是的，我完全同意，交叉銷售數字看起來相當穩定，並且繼續表現良好，對我們來說，這感覺就像是進入我們現有客戶群的開始。請記住，對於新客戶，我們鼓勵他們在註冊時購買不只一種產品。因此，新客戶也有很大的潛力。

We continue to promote the products in our platform and in our home page. And overall, we're very happy with the rate of adoption of this new products. And like we mentioned, we also plan to continue to go upmarket with our bigger customers. So all in all, I think this presents a big opportunity for our existing customer base and also for our new customers.

我們繼續在我們的平台和主頁上推廣產品。總的來說，我們對這種新產品的採用率非常滿意。正如我們所提到的，我們也計劃繼續與更大的客戶一起進入高端市場。總而言之，我認為這為我們現有的客戶群和新客戶提供了一個巨大的機會。

(Operator Instructions) There is no more question at this time. Ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect.

（操作員說明） 目前沒有更多問題。女士們、先生們，今天的電話會議到此結束。感謝大家的加入，現在可以斷開連線了。