Monday.com IPO: Everything you need to know about Monday

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 City Index

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

  1. Open a City Index 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

Build your confidence risk free

More from IPO

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.