monday.com Ltd.

Good day. My name is Desiree and I'll be your conference operator today. At this time, I would like to welcome everyone to Monday.com's fourth quarter and fiscal year 2025 earnings conference call. I would like to turn the call over to Monday.com's Vice President of Investor Relations, Mr. Byron Stephen. Please go ahead.

Hello, everyone, and thank you for joining us on today's conference call to discuss the financial results for Monday.com's fourth quarter and fiscal year 2025. Joining me today are Roy Mann and Aaron Zimman, co-CEOs of Monday.com, Elrond Glazer, Monday.com CFO, and Casey George, Monday.com CRO. We released our results for the fourth quarter of fiscal year 2025 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. 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. 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. Now, let me turn the call over to Roy.

Thank you, Byron, and thank you everyone for joining us today. As we reflect on the past year, we are proud of the progress Monday.com has made across every dimension of the business. We delivered another year of strong disciplined execution with revenue growing 27% year over year and operating margin reaching 14%. These results underscore the durability of our model, the strength of our go-to-market engine, and our ability to scale profitably while continuing to invest in the long term. In 2025, we continue to make meaningful progress, winning further upmarket. Larger customers are increasingly standardizing on Monday.com to support more complex, critical workflows across their organizations. Customers with more than 50K in ARR now represent 41% of total ARR, reflecting strong expansion within existing accounts and success in landing larger, more strategic customers. At the high end, we delivered a record net ads of customers with over 100K plus in ARR. And customers with over 500K in ARR grew 74% year over year. underscoring our ability to support enterprise-scale deployments. At the same time, no-touch channels continue to operate in a choppy demand environment, particularly among the smaller customers which we expect to persist in 2026. What this means in practical terms is that the cost to acquire and expand self-serve customers have increased over the past year. and the returns on those investments have been below historical levels. We do not see the same dynamic in our touch business, which have continued to accelerate in this past year. In response, we continue to shift investment to higher ROI opportunities that drive demand and success for larger customers. In addition, we continue to meaningfully improve the entire customer buying process, leveraging AI agents to improve conversion, adoption, and engagement of all our customers. Now, let me turn it over to Eran to walk you through some of the significant progress we've made in our AI-driven products during the quarter. Thank you, Roy.