A：Monday.com reported strong results for its third quarter fiscal year 2025, with a focus on disciplined execution, increasing customer expansion, record profitability, and surging engagement with AI offerings. They delivered another quarter of strong results and are on track toward their revenue target of $1.6 billion for FY 2025, with over 100K plus and 500K plus 10 customers. The company also reported its largest ever non GAAP operating profit.

A：The Elevate User Conference in New York City and London was significant as it reached new heights in scale and impact, with attendance more than doubling year over year. These events amplified customer enthusiasm and engagement, generated record engagement, and created a strong pipeline heading into 2026, setting the stage for continued customer expansion and growth.

A：The multi-product strategy is delivering program results, expanding Monday.com reach across more teams and use cases. New products now account for over 20% of total ARR, surpassing the 2025 goal ahead of schedule. A new bundle offering combining work management with CRM service is providing a unified, cost-efficient experience and accelerating cross-selling momentum within CRM.

A：The new AI Power campaign product has seen rapid adoption since its September launch, with customers creating over 60,000 apps to automate their unique workflows. A new pricing model offers various tiers of access, and Agent Factory has been introduced, allowing anyone to design and manage intelligent agents for automated complex workflows. A new AI credit system is also being introduced in Q4, providing transparency and intuition for AI usage and impact scaling.

A：The company expects revenue in the fourth quarter of fiscal year 2025 to be in the range of $328 million to $330 million, representing growth of 22% to 23% year over year. The expected non GAAP operating income is between $36 million and $38 million, and the operating margin is expected to be 11% to 12%. For the full year 2025, the revenue is expected to be in the range of $1.226 billion to $1.228 billion, with approximately 26% year-over-year growth. The full year non GAAP operating income is expected to be between $167 million and $169 million, and the operating margin is expected to be approximately 14%. The adjusted free cash flow for the year is expected to be between $330 million and $334 million, with an adjusted free cash flow margin of approximately 27%.

A：The measurable increase in investment ROI and customer growth is primarily due to timing effects as the company re-balances investment towards higher ROI areas. New products, like Monday service CRM in digital channels such as video and social media, have been providing higher ROI and have a longer sales cycle, but are showing a positive momentum in customer acceleration.

A：The expected impact of customers using multiple products is a significant contribution to revenue. The company's recent world tour with Elevate revealed that many customers are not taking full advantage of the products offered, indicating a significant opportunity for the company as it embarks on a multi-product journey.

A：RPO (Revenue Pursuit Opportunity) is a new metric introduced by the company that represents a better measurement of the business performance compared to the traditional deferred revenue. RPO reflects the full contract value expected to be recognized as revenue and captures the timing of billings which is why it's considered a more accurate representation of the company's performance.

A：The company plans to manage growth and headcount by focusing on sales, R&D, and G&A with an estimated 30% growth in headcount by the end of the year. However, this growth is expected to decelerate in H2 and the investment in headcount is anticipated to be less in the following year as most of the significant investment has already been made.

A：The purpose of the new product bundles is to provide customers with ready-built solutions that they can deploy quickly and start using for work management and service CRM, which are particularly prevalent in the market. These bundles are designed to cater to industries where these services are widely used and to offer commercial advantages and ease of use to the customers.

A：The key metrics for moving up market include converting 500K, 250, and 500K, with an acceleration in all of those figures. A $500,000 deal typically starts at $50,000 and grows over time, illustrated by three large wins that all started around $50,000 and have grown into seven-figure deals.

A：Recent large customers include a logistics company in Europe that consumes 5,000 script seats, with 1,500 of those being CRM seats, and a tech company that uses the product across 10 departments, particularly for M&A management.

A：Top of funnel trends in Q3 were initially choppy with continued volatility in phase Ve. However, there was encouraging stabilization towards the end of the quarter in new sign-ups and double funnel activity, indicating a healthy pipeline for both upmarket and mid-market parts, with solid growth in large and high-quality opportunities.

A：The company is shifting its marketing budget towards more tailored sources, rebalancing, and focusing on ROI. While it's too early to tell if it can achieve a net neutral position, the company is already using a different strategy to mitigate the impact of losing budget on the Google search site.

A：A large, highly regulated insurance company in Europe built a better tool in 20 minutes using AI functionality, which was more valuable than the expensive software they were considering. Another large retailer developed a reporting tool in less than 30 minutes with the company's help, resolving an issue they had been trying to solve for a year.

A：In the near term, the company expects a more moderate investment in headcount while the performance marketing as a percentage of total spend may stay flat or slightly below. There will be a focus on investments within the quota-carrying partners, sales channels, and customer success areas.

A：The company's hybrid model includes performance marketing, quota-carrying partners, sales channels, and customer success. Investment priorities include a potential decline in the share of performance marketing as a percentage of total spend, with a shift towards more moderate, headcount investment.

A：The Google AdWords channel accounts for less than a script of new revenue. The company experienced choppiness in Q3 but saw stabilization towards the end of the quarter across Google AdWords and other channels, with very healthy double funnel activity. The pipeline is growing and the company is confident in its acquisition strategy.

A：Confidence in achieving the $1.8 billion number comes from several factors: year-over-year growth acceleration for all upmarket customers, improving metrics like vek and vek, increasing multi-product adoption with CRM becoming significant, improved air and product engagement, and the acceleration of AI product monetization. The company is also encouraged by stabilization in the top of the funnel.

A：The speaker indicates that sales cycles have not changed in terms of moving up market and are consistent with expectations. There is no concern about increased complexity or length in deal cycles, and the upmarket strategy is proceeding as anticipated, with better results in some instances.

A：Gross churn in the SMB market is near term and the expectations are part of the discussion, although specific figures or changes from previous expectations are not clearly provided in the transcript excerpt.

A：The impact of AI on sales productivity is significant, with AI agents and customer success AI agents enhancing the productivity of sales teams. The speaker expresses excitement about the AI's role in making sellers more productive and anticipates even greater improvement in activity and productivity next year due to changes with AI agents.

A：AI products are expected to make a moderate contribution to the 2027 revenue target, with a focus on the retention of the existing customer base rather than direct revenue from AI products. Cross-selling between different products like services, work management, and CRM is anticipated to be strong, contributing to the overall revenue growth.

A：The change in customer acquisition type, with a shift to higher quality customers, has led to a different type of pipeline that takes longer to convert. This did not make sales growth more challenging; rather, it was a deliberate strategy to acquire higher quality customers that may not have immediately offset choppiness or softness down market, leading to the edqm cut.

A：The work management business is seen as a 'living product' with success in the upmarket strategy, contributing to the company's overall strategy and growth potential.