monday.com Ltd.

Good day. My name is Melissa, and I'll be your conference operator today. At this time, I would like to welcome everyone to Monday.com's first quarter fiscal year 2022 earnings conference call. I would like to turn the call over to Monday.com's Director of Investor Relations, Mr. Byron Stephen. Please go ahead.

Good day, 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 2022. Joining me today are Roy Mann and Aaron Zinman, co-CEOs of Monday.com, and Elrond Glazer, Monday.com's CFO. We released our results for the first quarter fiscal year 2022 earlier today. Our earnings materials are available on our investor relations website at ir.monday.com. There you will find the investor presentation that accompanies our prepared remarks and a replay of today's webcast under the news and events section. Certain statements made on the call today will be forward-looking statements which reflect management's best judgments 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. 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 website. With that, let me turn the call over to Roy.

Thanks, Byron. Good day, everyone, and welcome to our Q1 2022 earning call. Our first quarter revenue grew 84% to a record $108.5 million. This is an exciting milestone for us as it represents our first $100 million revenue quarter as a company. We continue to see strong demand for our product with our sales teams driving new logo acquisition and strong expansion within our existing customer base during the quarter. 50% of the Fortune 500 companies use our platform, up from 38% just a year ago. To address the needs of our customers in the enterprise segment, we are investing in creating more value for these customers, including in security, governance, and compliance requirements. Because we see enterprise customers as an important growing segment of our business, we are releasing our net dollar retention rate for enterprise customers with more than $50,000 in ARR and their percentage of our total ARR. In Q1, the total number of these customers was 960, up 187% from a year ago. These enterprise customers with more than $50,000 ARR now represent 22% of our total ARR As we continue to go upmarket, more customers are increasing their adoption and usage of Monday across their organization. In Q1, the net dollar retention rate for customers over $50,000 in ARR was above 150%. This high NDR reflects our potential to continue to expand among large customers. Please refer to our Q1 investor presentation for historical comparisons for these metrics. Among customers with more than 10 users, net dollar retention rate is above 135%. And among all customers, the net dollar retention was over 125%. As a reminder, our net dollar retention rate is a trailing four-quarter weighted average calculation. In the first quarter, we increased sales and marketing spend by approximately $50 million, up 84% from Q1-21. These sales and marketing efforts accelerated our acquisition of new customers while keeping the same marketing efficiency metrics. We've also been very successful in meeting our aggressive talent requirement targets. We believe that these efforts have great potential to grow our business over time as also our strong net dollar retention rate indicates. As we expand our customer base, we continue to invest in and grow our partner ecosystem to serve our customers. This quarter, we are excited to announce we have signed an authorized reseller agreement with SHI International, one of North America's largest IT solution providers. This partnership will help us work with and sell to more public, state, and local agencies and federal agencies in the United States. Our customers span industries and use cases, and they use Monday.com to run complex operations around the world. Recently, we partnered with Vogue for the Met Gala's first ever branded content software partnership. Using our platform, the Met Gala's set designer managed the cool workflows for fashion's biggest night of the year. Let me now turn it over to Aran to walk you through how we plan to better serve our larger customers. Thank you, Roy.