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 first quarter fiscal year 2026 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 first quarter fiscal year 2026. 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 first quarter fiscal year 2026 earlier today. You can find our quarterly shareholder letter along with the 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 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 a forward-looking statement. 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. Monday.com delivered a strong start to 2026. Q1 revenue grew 24% year-over-year, reflecting sustained demand for our platform as enterprises consolidate their work infrastructure. We generated a record $49 million in operating profit, demonstrating that our growth is increasingly efficient. Adjusted free cash flow margin expanded to 29%, underscoring the financial durability of our business model. Gross retention continued to improve in Q1, reaching historical highs for the company, reflecting how DeeplyMonday.com is embedded in how our customers run their businesses. Enterprise momentum continued to build with 42% of ARR coming from our customers with over $50,000 in ARR. A record number of new customers with over 500K in ARR and average contract values continued to expand. reinforcing that the consolidation of work infrastructure onto Monday.com is a durable enterprise-led trend. The market is also responding to our AI product. Approximately 10% of our net new ARR in Q1 was driven by AI, a figure we expect to grow as our AI offering expand and mature. We are also seeing the benefits of AI play out in SignedMinder.com itself. Since 2025, AI has driven a 32% increase in our output per developer and a 38% reduction in product time to market. AI gives our engineers the bandwidth to be more rigorous about the architecture, edge cases, and long-term maintainability. The result is a team that ships more and breaks less. We believe this is an early but meaningful signal of what AI-native engineering looks like in practice, and we intend to keep pushing on that frontier. 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.