Monday.com hits $1 billion in annual recurring revenue
Monday.com hits $1 billion in annual recurring revenue
The enterprise software company said it achieved the financial milestone a decade after it launched its Work Operating System and eight years since it reached $1 million in ARR.
Enterprise software company monday.com announced on Monday that it has reached $1 billion in annual recurring revenue (ARR). The company said it recently achieved this financial milestone, a decade after it launched its Work Operating System (Work OS) and eight years since it reached $1 million in ARR.
Monday.com said that ARR was calculated by using the annualized value of its customer subscription plans assuming that any contract that expires during the next 12 months is renewed on its existing terms.
“In 2014, we set out to disrupt traditional work software, and over the last decade, we’ve built a product that has become the core platform for companies worldwide,” says Roy Mann, co-founder and co-CEO at monday.com. “Hitting $1 billion in ARR is an exciting milestone on our journey to take on the immense opportunity in the work software industry. We believe software can be both a platform that people love and an effective way to solve core business challenges in a scalable and robust way. We wouldn’t have achieved this without our dedicated monday.com team, partners, and customers.”
Launched in 2014, the monday.com Work OS is a no-code, low-code open platform that allows customers, teams, and enterprises to create tools for business. The Work OS product suite currently includes monday work management, monday CRM, monday dev, and monday service (currently in beta).
“Achieving $1 billion in ARR is a testament to the value we provide for our customers, and we’re committed to continuous evolution to ensure monday.com remains an industry leader,” says Eran Zinman, co-founder and co-CEO at monday.com. “We take pride in how we’ve built our product, our agility, and continued strategic investments in our infrastructure, as demonstrated by the release of mondayDB – all allowing us to adapt to our customers’ evolving needs. Our transition from a single product to a multi-product company, coupled with expansion into mid-market and enterprise markets, lays the foundation for future growth and expansion of our offering.”
Monday.com has solidified its position as one of the most successful Israeli companies on Wall Street over the past year. After already being one of the few Israeli companies from the 2021 IPO boom to be traded above its public offering value, it continued to surpass forecasts, showing rapid growth in its reports for the second quarter released earlier this month. Monday.com's market value now stands at over $13 billion, following a surge in its stock price on the back of its latest results.
Building upon the successful first half that exceeded expectations, monday.com is raising the bar by estimating that its total revenue for the year will be between $713 million and $717 million. These revenues reflect an impressive growth rate of 37% to 38%.
Nevertheless, monday.com has not yet reached profitability, although it managed to generate a positive cash flow from operating activities of $47 million on a quarterly basis, a significant improvement from the negative cash flow reported in the corresponding period a year ago.
