A complete guide to Monday.com and its successful IPO

Monday.com proceeded to an IPO in June 2021 on the NASDAQ exchange. It produces cloud-based software that businesses subscribe to in order to help run their internal communications more efficiently. Here's a look at how it got to where it is now and what the future may hold.

Charts (6)

What does Monday.com do?

Founded in Israel 2021 and launched in 2014, Monday.com is a cloud-based platform that allows companies to build their own customised applications and bespoke work management software.

The platform is designed to help IT departments build operational efficiency. That could come through enhancing the cross-departmental collaborative process, by simply tracking projects and workflows, or through the process of handling, analysing and reporting on data.

It is adaptable in that it offers automation capabilities and can be easily integrated with other work apps. It works hard at simplifying processes. For example, in February 2020, it released its 2.0 version which provided an entirely code-free solution.

When was the Monday.com IPO and how did it go?

Monday.com proceeded to an IPO on June 10, 2021 on the tech-heavy NASDAQ index under the ticker symbol MNDY. 

Its shares were priced at $155 and were soon showing a healthy profit, giving Monday.com a market capitalisation of billions of dollars. While its initial IPO “pop” did not prove particularly spectacular, it is important to note that, as of June 29, 2021, it has continued to grow in value.

At around $230 it is edging towards a 30% pump since going public. 

Does Monday.com make a profit?

Few companies in the software-as-a-service world turn profits in the first few years of existence. And this is the inherent risk of investing in them because at some point the goodwill of shareholders dries up.

Monday.com is no exception. Indeed, in Q4 of 2020 its losses accelerated to nearly $63m. As ever, company management has an answer to this wriggle. It points to the fact the company was able to save almost half the $234m it was able to raise during its private days.

In addition, it says that of its 120,000 customers, 70% come from outside the tech world, and that points to the user-friendly appeal of the Monday.com platform.

How does Monday.com make money?

With paid subscription plans from £21 a month to £42 a month, Monday.com sits firmly in the rapidly growing software-as-a-service business sector. By subscribing to its services, small to medium-sized firms can make significant savings on the traditional costs of building internal IT frameworks.

Monday.com also offers advanced services for what it calls “enterprise-grade security, control and support”. Companies applying for this level of support are not offered an advertised price. Instead, they are invited to contact Monday.com directly.

Monday.com spends money on developing its own products, as well as through sales and marketing. Indeed, some analysts had been shy to promote its IPO on the basis that its sales and marketing spend had been on the rise in recent months.

What is the business strategy of Monday.com?

Retention rate figures are closely watched in the highly competitive sector that Monday.com occupies. To that end, its most recent reported figures of a 120% net retention rate – which is effectively equivalent to keeping all customers and adding on 20% - are highly positive.

Thus, the business strategy of Monday.com is partially to provide such a good service that existing customers won’t have their heads turned by endless free trials at rival operations.

There are few forecasts, either from within the company or from analysts, about any dramatic change in direction for Monday.com. Much of the communicated information is around simply refining existing practices and making the customer experience even smoother.

In a recent interview with Forbes, co-CEO Roy Mann explained: “We really wanted to build a long-term, big company, and an IPO is a milestone on the way.

“In a few years we’ll be giving people the power to control their destiny so they can build whatever they need to run their business and their operations.”

It seems it is simply a case of more of the same; sometimes clarity of purpose is a strength. Mann expects similar companies to thrive too: “We see a massive opportunity for all the companies in the space. And we want to be there with a lot of passion to build great products.”

Who owns Monday.com?

Since proceeding to IPO, Monday.com is a free-floating company with public ownership.

Who are the senior staff at Monday.com?

According to data on Crunchbase, the following individuals form part of the senior management team at Monday.com:

  • Roy Mann, CEO
  • Eran Zinman, Co-Founder & CTO
  • Asaf Fradkin, Head of Operation
  • Leah Walters. Head of Communications
  • Tom Ronen, Head of Customer Success
  • Eitan Helman, Head of Marketing
  • Kfir Lippmann, Director of Finance

How to trade stocks at FOREX.com

You can trade stocks with FOREX.com from some jurisdictions using spread-bets or CFDs, with spreads from 0.1%. Follow these easy steps to start trading now.

  1. Open a FOREX.com account or log-in if you’re already a customer.
  2. Search for the company you want to trade in our award-winning platform.
  3. Choose your position and size, and your stop and limit levels.
  4. Place the trade

More from IPO

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Open an Account