monday.com Ltd. (NASDAQ:MNDY) Q2 2022 Earnings Conference Call August 8, 2022 8:30 AM ET

Company Participants

Byron Stephen - IR

Roy Mann - Co-CEO

Eran Zinman - Co-CEO

Eliran Glazer - CFO

Conference Call Participants

Kash Rangan - Goldman Sachs

Ittai Kidron - Oppenheimer

Arjun Bhatia - William Blair

Scott Berg - Needham

Pinjalim Bora - JP Morgan

Brent Bracelin - Piper Sandler

Andrew DeGasperi - Berenberg

David Hynes - Canaccord

Brent Thill - Jefferies

Robert Simmons - D.A. Davidson

Operator

Good day. My name is Charlie, and I'll be your conference operator today. At this time, I would like to welcome everyone to monday.com's Second Quarter Fiscal Year 2022 Earnings Conference Call.

I would now like to turn the call over to monday.com's Director of Investor Relations, Mr. Byron Stephen. Byron, please go ahead.

Byron Stephen

Good day, everyone. And thank you for joining us on today's conference call to discuss the financial results for monday.com's second quarter fiscal year 2022. 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 second quarter fiscal year 2022 earlier today. This quarter, we have introduced a new shareholder letter with our results commentary for the quarter. You can find the shareholder letter along with our investor presentation that accompanies our prepared remarks and a replay of today's webcast under the News and Events section of our IR Web site at ir.monday.com.

Certain statements made on the call today will be forward-looking statements, which reflect management's best judgment based on 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. Additionally, non-GAAP financial measures will be discussed on the call. Reconciliations to the most directly comparable GAAP financial measures are available in the earnings release and the earnings presentation for today's call, which are posted on our Investor Relations Web site.

With that, let me turn the call over to Roy.

Roy Mann

Thanks, Byron. Good day, everyone and welcome to our second quarter earnings call. It's been one year since our IPO and monday.com continues to grow. Our total revenue in Q2 was 123.7 million, up 75% from Q2 last year. We continue to move up market at a fast pace, growing our enterprise customer base to more than 1,000 customers this quarter, while maintaining our best in the industry net dollar retention rate. We continue to see strong growth across all customer segments, with enterprise customers leading the way. In the second quarter of fiscal 2022, we finished with 1,160 enterprise customers, 147% year-over-year increase. The second quarter saw significant improvements in our operating margin as we continue to make our business more efficient. Since the company was founded, we've generated approximately $4 in recurring revenue for every $1 we burn. The secret behind our efficiency is our bigbrain analytics platform. If you ever visited our offices, you've seen dashboards on nearly every wall displaying insights from bigbrains, our in-house business intelligence tool. Bigbrain collects over 200 million events a day, which informs each of our marketing campaigns and every interaction we have with our customers. By measuring everything, we empower employees to make efficient data driven decisions, optimizing for cash flow and maximizing efficiency.