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Most recent model
TL;DR
- Monday.com has demonstrated strong execution capabilities in the core workflow market and has shown solid progress transitioning from SMB to the enterprise segment.
- Monday’s high degree of flexibility opens opportunities to expand into adjacent areas such as CRM, service management, and software development management.
- Deep integration within enterprise workflows positions Monday well for launching AI-driven products.
I am optimistic about Monday.com's horizontal and vertical expansion from a “SMB workflow winner” into enterprise workflow & adjacent verticals(CRM, Service & Dev).Among SaaS peers, Monday stands out as a company with exceptional operational execution. I belive Monday.com is a high-quality asset and will looking for proper price to accumulate.
Upside/Catalyst
- Upcoming release of AI product/agents
- Expansion beyond core workflow into CRM, Dev, and Service
- Continued traction in the enterprise workflow segment
Risk
- Execution
- Core market get commoditized.
Company history
- 2014: Founded by Roy Mann and Eran Zinman. Roy previously served as a senior technology leader at Wix, while Eran led development at Conduit Mobile.
- 2015: Launched the BI system “BigBrain,” introducing dashboard and data analytics capabilities.
- 2017: Introduced board templates and customizable columns.
- 2018: Added new visual views and began building a sales organization and partner ecosystem to pursue top-down enterprise customer acquisition.
- 2019: Rolled out the Automation module and launched Dashboards with support for various chart types. Added support for 13 languages.
- 2020: Introduced the Apps Marketplace, enabling third-party developers to build on top of Monday’s platform.
- 2021: Released a free version for small teams (2 users), launched MondayDocs (for collaborative documents), and introduced the CRM module, targeting marketing and customer service workflows.
- 2022: Introduced Monday Dev, a dedicated workflow tool for software development teams.
- 2023: Launched Monday AI, featuring AI assistants and automation modules. Released MondayDB to enhance scalability and inter-project connectivity.
- 2024: Introduced Monday Service, a workflow suite tailored for IT support scenarios.
Corporate Governance
Management
Co-Founder & CEO Roy Mann: Previously senior technology leader at Wix and founder of a niche social networking site SaveAnAlien.com, which operated for approximately four years.
Co-Founder & CEO Eran Zinman: formerly CTO of Monday.com until 2020. Prior to that, he was Head of R&D at Conduit Mobile—a company known for its controversial “Conduit Toolbar” software. He briefly founded a startup called Othersay, which ceased operations after one year.
Major Shareholders
- Insight Partners – A US-based VC firm with a portfolio including Shopify, Smartsheet (a Monday competitor), Alteryx, Wix, DocuSign, Udemy, and Docker. Fully exited its Monday stake in 2023.
- Stripe – Also exited in 2023.
- Sonnipe (part of Entrée Capital) – Remains partially invested post-IPO; focuses on SaaS, AI, and fintech startups.
- Salesforce and Zoom – Each invested $75M during the IPO; both have since exited.
Executive Compensation
- As an Israel-listed company, Monday does not publish detailed proxy filings like US-based firms.
- Base salary for co-founders is under $300,000, which looks very reasonable.
- Primary compensation is time-based equity grants (RSU).
- There is no performance-based equity grants (PSU), which I view as a governance weakness.
Business model
Product & Service
Monday.com is a cloud-based low-code/no-code platform offered via a SaaS model. It enables users to build and manage customized workflows through modular components and pre-built views (collectively known as WorkOS), and integrate seamlessly with third-party applications.
In addition to its core platform, Monday offers vertically packaged solutions tailored for specific use cases:
- Work Management: Project, task, and asset management across teams.
- CRM: Sales pipeline and customer relationship tracking.
- Dev: Agile development lifecycle management.
- Service: IT service management (ITSM) for support teams.
It also provides auxiliary products, including:
- WorkCanvas: A whiteboard collaboration tool.
- WorkForms: A no-code form builder.
- Monday App Store: An ecosystem for third-party apps and integrations.
In response to the AI era, Monday has started embedding AI functionality into its products. This includes features like AI Blocks, intelligent suggestions, and upcoming AI Agents slated for release in 2025.
Platform - WorkOS
All Monday applications are built atop a unified architecture known as WorkOS. This platform comprises several foundational layers—data management, security & permissions, business logic, and visualization components.
To end users, WorkOS resembles “Lego”: users can use pre-built templates or create fully customized workflows that replicate traditional software suites (e.g., CRM, HR, etc.).
Core modules include:
- Boards & WorkDocs
- Columns
- Views
- Workspaces
- Dashboards
- Automations
- Integrations
- AI blocks
Boards
Boards are the foundational building block of Monday. They serve as collaborative canvases where users can drag-and-drop different modules to construct and manage workflow projects.
Workdocs
Monday launched WorkDocs as an alternative entry point to its platform. Similar to Boards, WorkDocs allows users to drag-and-drop various templates and quickly build collaborative projects.
However, unlike Boards—which require users to construct a full workflow or project—WorkDocs is better suited for unstructured content. This unlocks broader use cases and significantly enhances product flexibility.
Functionally, WorkDocs resembles a simplified version of Notion Pages or Google Docs.
Columns (the lego)
Columns are the fundamental “Lego” elements in Monday.com. Users can drag and drop them to build customized workflows. Monday currently offers 30+ column types, including:
- People: assignable user column that links to team members.
- Status: status indicators like “Completed”, “In Progress”, etc.
- Numbers.
- Date.
- Timeline.
- Connect Board: links data across different boards—for example, the finance team can pull spending data from the CRM team’s board.
Views
All projects, workflows, and data within Monday.com can be visualized through different views, enabling flexibility and customization.
- Dashboard
- Chart
- Gantt
- Calendar
- Workload
- Timeline
- Board views
- Table
- Kanban
- Form
- Cards
Workspace
Workspace is a structural container above projects. It enables org-level control—e.g., a Finance workspace can group budget, reimbursement, and audit projects, and restrict visibility to the finance team.
Dashboards
Users can build custom dashboards to aggregate and visualize data across boards—ideal for reporting, KPI tracking, and performance summaries.
Automations
Monday.com offers a no-code automation engine driven by “Trigger + Action” logic. Supported triggers include:
- Status: e.g., move completed tasks to archive automatically
- Recurring: e.g., create a weekly meeting doc every Monday
- Date: e.g., send a reminder if status is “Unfinished” by Dec 1
- Item Creation: e.g., assign ownership when a new research task is added
- Move Item: e.g., archive monthly reports on a certain date
- Subitems: e.g., auto-complete parent task when all subitems are done
- Dependencies: e.g., ensure task A starts only after task B ends
- Custom: Trigger actions based on user-defined column logic
Integrations
Monday supports over 200 third-party integrations (vs. ~40 at IPO), across categories:
- CRM: Salesforce, Zendesk, Copper, Shopify, Twilio, Stripe, WooCommerce, Pipedrive
e.g., When a new Shopify order is created, generate a new item automatically.
- Marketing: SurveyMonkey, Mailchimp, FacebookAds, HubSpot, Typeform, Clearbit, JotForm, Box, Eventbrite, Adobe CC, Google Data Studio, Hootsuite
- Development: GitHub, GitLab, Jira, PagerDuty
- Project Management: Asana, Trello, Basecamp, Harvest, Todoist, Toggl
AI related offerings
AI Blocks – Similar to Notion AI: data extraction, summarization, classification, translation, etc.
Intelligent Products – Embedded in modules like CWM, CRM, and Dev. For example, the workflow module includes AI that scans entire boards and documents to flag risks.
Agents – To be launched in 2025, these modules aim to automate tasks such as HR, customer support, and sales assistant.
Vertically Integrated Product Suites
All the functionalities above are built upon Monday.com’s WorkOS platform, which provides customers with the modular building blocks to construct diverse workflows.
In addition to general-purpose workflow customization, Monday offers four dedicated product suites tailored for specific functional areas:
- Work Management – Core project, task, and asset management. Ideal for team collaboration, progress tracking, and operational execution.
- CRM (Customer Relationship Management) – Optimized for managing sales pipelines and customer relationships. Compared to the general WorkOS, the CRM suite offers enhanced features for email sync, lead management, and deal tracking.
- Dev (Software Development Management) – Built for agile product teams, with dedicated features for sprint planning, backlog tracking, and agile reporting.
- Service (IT Service Management) – Designed for IT support teams and internal operations, including ticketing systems, issue routing, and SLA management across departments.
Apps market place
In 2020, Monday.com launched Monday Apps, allowing developers to create new types of building blocks—including views, widgets, and integrations. That same year, the company introduced its public Apps Marketplace.
Tracking key metrics from Monday’s App Marketplace suggests that the overall ecosystem continues to mature, with steady growth in # of app and # of app getting paid.
Sales Model and Pricing
Sales model
Monday.com’s go-to-market strategy underwent a significant transformation around 2018, when the company began building a formal sales organization:
- Pre-2018: Operated under a Product-Led Growth (PLG) model, targeting small and mid-sized businesses (SMBs) through self-serve onboarding and bottom-up adoption.
- Post-2018: Began expanding into the enterprise segment, investing in a direct sales team and strategic partnerships to drive top-down adoption among mid-market and large customers.
According to Analyst Day disclosures, the share of self-serve-driven ARR has steadily declined, while sales-driven ARR has become an increasingly dominant component of total revenue—reflecting successful enterprise penetration and sales team effectiveness.
The number of channel partners and resellers working with Monday.com has also shown consistent growth, further supporting its expansion into the enterprise markets.
Pricing
Monday.com operates on a subscription-based pricing model, with charges based on the selected product tier and number of users. Customers who opt for annual billing receive a discount of approximately 18%.
Unlike some enterprise software vendors, Monday does not currently offer multi-year prepayment options (e.g., 3-year prepaid contracts).
Pricing is broadly in line with key competitors across core work management use cases. In newly entered verticals—CRM and Service—Monday offers relatively lower pricing, likely as a strategic move to gain market share in these large addressable markets over the long term.
Currently, Monday does not charge separately for its AI-related features. However, the company plans to adopt a usage-based pricing model for AI modules in the future.
This shift is expected to allow Monday to capture more value as its platform becomes embedded in increasingly complex enterprise workflows, especially in scenarios requiring large-scale automation, intelligent recommendations, and agent-based task execution.
Land & Expand
As Monday.com continues to shift its focus toward the enterprise segment, a growing portion of its revenue momentum is being driven by expansion within existing accounts.
Case studies of existing customers reveal several key trends:
- Top-down enterprise sales motions tend to generate higher initial contract values, as Monday can quickly penetrate multiple departments across the organization.
- The combination of more use cases + more users is the primary engine driving account-level growth.
- While Monday officially offers four vertically packaged solutions—Work Management, CRM, Dev, and Service—customers frequently adopt the platform across additional use cases, suggesting long-term potential for the company to expand into other vertical workflows over time.
Based on Monday.com’s disclosed Dollar-Based Net Expansion Rate (DBNER) data, all customer cohorts have maintained a healthy 110%+ DBNER since the post-COVID period through 2023—indicating strong account expansion and customer stickiness.
However, enterprise customers have not yet demonstrated meaningfully higher expansion rates compared to SMB or mid-market segments—suggesting that while Monday is gaining traction with larger accounts, their growth behavior still resembles that of smaller customers in many cases.
According to Monday’s disclosures on seat purchases by its largest customers, there has been a noticeable acceleration in seat growth post-2023.
Customer
As of Q1 2025, Monday.com has approximately 250,000 paying customers.
At the time of its IPO, around 70% of its customers were from non-tech industries. This trend has continued, with the company now stating that the majority of its customer base consists of traditional sectors, including real estate, banking, media, and construction.
Selected disclosed customers include:
- Technology:
- HubSpot (noted at IPO, but appears to have churned; also a competitor)
- Lightspeed (noted at IPO, but likely no longer active)
- Motorola, Deezer, Canva, DataCom, Thoughtworks
- Retail:
- McDonald’s, Zippo, Farfetch, Coca-Cola, Carrefour
- Healthcare:
- Oscar Health, UK NHS
- Professional Services:
- Genpact
These customers reflect Monday’s broad horizontal applicability across industries, as well as its traction in both digital-native and traditional enterprise sectors.
Customer Story
A review of selected customer case studies shows how Monday.com is being adopted across departments to replace spreadsheets, docs, and email with structured workflows. Most enterprise use cases still revolve around workflow management, though some companies have started experimenting with CRM and other vertical modules.
Deezer – Music Streaming Platform
- Teams using Monday: Company-wide
- Modules used: Workflow Management
- Previous tools: Google Slides, Sheets, Email
As Deezer scaled, its Chief Strategy Officer found traditional collaboration tools increasingly inadequate—citing difficulty in locating information, tracking project progress, and coordinating tasks. Monday.com was first adopted at the executive level, and then gradually rolled out across teams due to its ease of use and accessibility.
McDonald’s (Australia)
- Teams using Monday: Operations, Marketing, Project Management
- Modules used: Workflow Management
- Previous tools: Spreadsheets, Documents, Email
Manual project coordination through spreadsheets had become inefficient and error-prone. With Monday, McDonald’s was able to visualize processes via boards, automate workflows, and build reusable templates—streamlining execution and improving visibility across departments.
Genpact – Professional Services
- Teams using Monday: Marketing
- Modules used: Workflow Management
- Previous tools: Spreadsheets + Docs
Genpact transitioned from spreadsheets to Monday.com to streamline marketing operations and project collaboration.
Canva – SaaS Design Platform
- Teams using Monday: Marketing
- Modules used: Workflow Management
- Previous tools: Atlassian Jira, Google Sheets
Early on, Canva identified the need to move beyond spreadsheets for workflow coordination. While it initially tested Jira and other tools, Monday’s superior automation and flexibility made it the preferred solution.
Most enterprise customers currently concentrate usage around Monday’s core Work Management module. However, there is growing interest in using the platform for CRM, Dev, and other specialized workflows, suggesting expansion potential beyond horizontal project management.
Ecosystem
Market Opportunities
According to Monday.com's internal estimates, the company’s Total Addressable Market (TAM) in 2023 was approximately $101 billion, broken down as follows:
- Work Management: $45B
- Customer Relationship Management (CRM): $30B
- Software Development (Dev): $17B
- IT Service Management (Service): $9B
This segmentation aligns with Monday’s product strategy of vertically packaging its WorkOS platform into four high-value software categories.
Compared to Monday.com's TAM disclosure at the time of its IPO, the estimated market size has expanded significantly.
Back then, the company reported a TAM of approximately $26 billion, comprising:
- $22B for collaboration applications
- $4B for project management
This early estimate aligns most closely with today’s Work Management category—but falls far short of the $45B currently attributed to that space alone.
The increase reflects a broader redefinition of the platform’s scope as Monday moves upmarket and packages additional vertical solutions (e.g., CRM, Dev, Service) into its long-term growth strategy.
Monday.com currently estimates the Workflow Management TAM at $45 billion in 2023. According to IDC, this is based on approximately 100 million target users globally, with an average monthly subscription price of $37.50 per seat.
Benchmarking this against operational data from Monday, Asana, and Microsoft Office 365 reveals several insights:
- Implied ARPU (Average Revenue Per User) for both Monday and Asana is already approaching or exceeding IDC’s assumptions—in fact, both exceed their public plan pricing (Pro, Standard), implying significantly higher pricing for Enterprise SKUs.
Given the pricing ceiling set by Microsoft Office products, it is difficult to envision further ARPU expansion without meaningfully deeper functionality, such as automation or intelligent workflows.
- Despite a relatively small total user base, both companies report strong penetration into Fortune 500 accounts. Going forward, Monday’s success in Workflow will depend on its ability to expand horizontally across multiple departments within these large organizations.
- For context, Atlassian—the largest player in the category—generates less than $5B in annual revenue, representing roughly 10% of the estimated market. This highlights how fragmented the market remains, and suggests that most users still rely on spreadsheets, emails, and docs to manage workflows.
Based on Monday.com’s updated TAM breakdown, more than half of the $101B addressable market comes from newer verticals:
- CRM: $30B
- Dev: $17B
- Service (ITSM): $9B
This indicates that a significant portion of Monday’s long-term growth potential lies outside its core Work Management segment.
Future growth will increasingly be driven by expansion into these adjacent verticals, as the company leverages its WorkOS platform to deliver specialized solutions tailored to sales, development, and IT teams.
Consistent with what the TAM data implies, Monday has not yet positioned itself to compete directly with enterprise-grade platforms like Salesforce (CRM) or ServiceNow (ITSM).
Instead, Monday's current traction in the CRM and Service verticals appears to be primarily within the SMB segment, where ease of use, fast deployment, and lower pricing are more critical than full-scale enterprise-grade functionality.
This suggests that while these verticals represent large market opportunities, Monday's current go-to-market strategy is focused on lower end segments, with future enterprise expansion likely requiring product depth, compliance, and ecosystem enhancements.
Competition
Monday.com operates across multiple software categories, and its competitive set can be broadly divided into:
- Collaboration, Project & Work Management: Asana、Wrike、Smartsheet、Notion、Freshworks、Atlassian (Trello)、Clickup
- CRM：SugarCRM、Pipedrive、Zoho、Hubspot
- Software Development：Atlassian Jira
- Enterprise service management：Freskworks、Atlassian Jira
Notably, Salesforce (CRM) and ServiceNow (ITSM)—the most dominant enterprise players in their respective markets—are not listed among Monday’s cited competitors. This suggests that Monday’s current positioning in both the CRM and Service verticals remains closer to SMB use cases, much like the company’s early approach in the Work Management category.
This reinforces the view that Monday is still in the early stages of vertical expansion, with its immediate opportunity focused on ease-of-use and affordability for mid-sized teams, rather than displacing incumbent enterprise solutions.
Industry Analyst Rating
Collaborative Work Management 2023 vs. 2024
Adaptive Project Management
Marketing Work Management
The core Collaborative Work Management (CWM) space has traditionally been a highly fragmented market with very low switching costs.
Most CWM functionalities—such as task management, project tracking, and team collaboration—are relatively commoditized and can be replicated by competitors like Asana, Smartsheet, or even through a combination of third-party tools.
Unless a vendor becomes deeply embedded into enterprise workflows, CWM products targeting the SMB segment typically lack strong moats or high replacement barriers. This structural reality makes it difficult to sustain long-term differentiation purely on features in this category.
Asana Kanban
Asana Workflow
As most CWM vendors adopt a bottom-up go-to-market strategy, their penetration within enterprise accounts becomes the key determinant of long-term growth potential and ceiling.
One thing I really like to highlight is Monday.com’s customers have reported extensive use of the platform for functions beyond Core Workflow (e.g. lightweight CRM and marketing). Compared to peers like Asana, Monday offers a broader range of use cases, which suggests it has the potential to expand into the SMB segments of other fields such as CRM and marketing.
CRM、Dev、Service Competitors
- CRM：SugarCRM、Pipedrive、Zoho、Hubspot
- Enterprise service management：Freskworks、Atlassian Jira
Performance
Operation metrics
Customer growth
All paying customer:
- In 25Q1 Monday reported approximately 250,000 paying customers, representing 8.6% yoy growth.
- According to 2023 Analyst Day, the platform has around 2 million total users, implying an average of 8–9 seats per customer.
- Overall, the data suggests that customer spending is steadily increasing.
Small customers (with less than 10 seats)
Based on company disclosures, we can infer the following about customers with fewer than 10 seats:
- This segment accounts for approximately 76% of Monday’s total customer base, with growth of ~8.6% YoY, closely tracking the company’s overall customer growth.
- The average ARR per account remains around $1,200, and growsR at 10%+ YoY.
Enterprise Customers
Monday.com reports enterprise customer performance under three key cohorts:
- Customers with 10+ seats
- ~60,566 customers, growing 9.1% YoY, slightly above overall customer growth.
- Average ARR: ~$14,726
- DBNER trends suggest ARR growth for this group is above the company-wide average.
- Customers with $50K+ annual spending
- 3,444 customers, growing 38.3% YoY, significantly outpacing overall customer growth (8.6%).
- Average ARR: $121K+
- Estimated ARR growth rate: 15%+, indicating strong expansion momentum and deeper platform adoption.
- Customers with $100K+ annual spending
- 1,328 customers, growing 45.8% YoY, the fastest-growing cohort across all customer segments.
- Average ARR: $200K+
- Estimated ARR growth rate: 15%+, making this group the most rapidly expanding revenue contributor within the customer base.
These data points underscore Monday's success in moving upmarket, with enterprise accounts becoming an increasingly important driver of ARR growth.
Headcoutns
- Headcount growth slowed during the post-COVID digestion period, reflecting a temporary hiring pause, which contributed to the margin expansion in 2024.
- Revenue per employee showed consistent improvement through 2023, but declined in 2024 due to a period of aggressive hiring.
- On the cost side, both operating expenses per employee and SBC per employee have been gradually trending downward, indicating improving cost discipline at the individual level.
Geography mix
- According to its 10-K filing, over 50% of Monday.com’s workforce was based in Israel as of 2024, which may explain its relatively low employee cost.
- On the revenue side, approximately 50% of revenue is derived from the U.S. market, followed by Europe.
- Taken together, Monday reminds me Chinese exporters leveraging low-cost talent & materials in developing world while generating the majority of revenue from developed markets.
New vertical product metrics
- Monday.com has disclosed user metrics for its newer product lines. CRM and Dev-related offerings are emerging as potential mid-term growth drivers, with CRM users now approaching ~10% of the total user base.
- While AI-related modules are not yet monetized, usage levels are accelerating rapidly, highlighting strong user engagement and representing a significant future monetization opportunity.
Financial Performance
Revenue growth accelerated significantly during the COVID-19 period, but has since returned to its pre-pandemic deceleration trendline. As of 25Q1, the company is growing revenue at a rate of approximately 30% year-over-year.
Non-GAAP Profitability
- Gross margin (non-GAAP) has remained consistently high around 90%, reflecting the favorable unit economics of Monday’s SaaS model.
- The primary driver of margin expansion has been the decline in sales & marketing expense ratio, as the company improves go-to-market efficiency.
- Monday continues to maintain a Rule of 40 score above 40%, signaling a healthy balance between growth and profitability.
GAAP Margin Trends
- Monday’s GAAP margins closely track its non-GAAP performance, reflecting limited adjustments between the two reporting metrics.
- Notably, stock-based compensation (SBC) as a percentage of revenue has been steadily declining, reaching 11% in Q1 2025. This level is already comparable to mature SaaS peers—for example, Salesforce at 8.4%, ServiceNow at 15.9%, while many high-growth SaaS companies typically remain above 20%.
- This signals improving operational discipline and a maturing cost structure as Monday scales.
Cash Flow: Although Monday historically reported GAAP net losses, its subscription-based model—particularly with annual billing—has enabled the company to maintain healthy cash inflows. This reflects the typical SaaS advantage of strong cash conversion, even during periods of accounting losses, as deferred revenue provides upfront liquidity and supports operational flexibility.
Balance Sheet Structure: The company has not engaged in significant M&A activity, and as a result, the asset base primarily consists of cash generated from its IPO proceeds and subsequent operating cash flows.
On the liability side, the majority of Monday’s reported obligations stem from deferred revenue, which results from the company's practice of billing customers annually in advance.
While classified as a liability under accounting standards, deferred revenue does not represent a traditional financial obligation, but rather reflects contracted future service delivery—a hallmark of the SaaS model’s positive cash flow dynamics.
Share Count: The company’s relatively low stock-based compensation (SBC) expense is also reflected in its moderate share count expansion. Except for the immediate period following the IPO, Monday has consistently slowed the pace of equity dilution, demonstrating a disciplined approach to capital structure and shareholder value preservation.
Comparing with peers
Monday.com has seen a dramatic rise in revenue ranking—moving from the smallest among peers in 2019 to becoming the third-largest by Q4 2024.
While Monday.com’s revenue growth trajectory broadly mirrors that of the broader SaaS peer group, it has clearly outperformed comparably sized competitors such as Freshworks and Asana.
Monday.com’s growth in $50K+ annual contract value (ACV) customers has outpaced both Asana and Freshworks, underscoring its increasing traction in the mid-market and enterprise segments.
Monday.com’s growth in $100K+ ACV customers has significantly outpaced Asana, despite Asana previously holding a larger base in this segment.
Since 2022, Monday.com has consistently maintained best-in-class Dollar-Based Net Expansion Rate (DBNER).
Among its peers, Monday.com leads in revenue per employee, indicating superior operational efficiency and effective resource utilization.
Operating expenses per employee are mid-range relative to peers, and have been on a downward trend, reflecting improving cost discipline as the company scales.
Stock-based compensation (SBC) per employee is in the mid-range compared to peers and has been declining steadily, suggesting more efficient equity compensation practices and a maturing approach to talent incentives.
Monday.com maintains a best-in-class Free Cash Flow (FCF) margin, underscoring the company's strong cash generation capabilities and disciplined capital management.
Based on the Rule of 40 framework, Monday.com stands out as one of the most balanced companies among peers, effectively combining strong growth with solid profitability.
When evaluating the Rule of 40 excluding stock-based compensation (SBC), Monday.com emerges as the best-balanced company among its peers, demonstrating an exceptional ability to drive both growth and profitability without relying heavily on equity-based incentives.
Detailed compeering with peers: how it looks like at 25Q1
Comparing against the best: a historical perspective
During the 2020–2021 SaaS bubble, investors bid up valuations based on every marginal signs of acceleration—a reflection of the belief that SaaS, as a highly scale-driven business model, could justify almost any valuation if growth assumptions were aggressive enough.
In contrast, I adopted a different approach—looking backward instead of forward. Rather than extrapolating acceleration, I examined what successful SaaS investments actually looked like over a full cycle.
Take Salesforce as an example: from 2010 to 2020, it delivered a 622.5% total return, far exceeding the NASDAQ’s 232% over the same period. At the start of that decade, Salesforce traded at approximately 7.6x EV/LTM Sales.
So I reframed the question:
“If the company I’m buying turns out to be the next Salesforce, what kind of 10-year return should I expect?”
To answer this, I created several comparative datasets, anchored at the $50M quarterly revenue mark, to track how various SaaS companies evolved from that scale onward.
Investment
Valuation - multiple
- Among its peers, Monday.com’s EV/Sales multiple is now approaching those of proven SaaS leaders like Atlassian and HubSpot. This suggests that the market has correctly differentiated Monday from similarly sized but operationally weaker players such as Asana and Freshworks.
- Operationally, Monday has demonstrated strong cost discipline and superior efficiency, particularly in its ability to balance growth and profitability. On a Rule of 40 basis, it stands out as one of the most well-managed names in the cohort.
Currently, Monday.com is trading at a slightly elevated EV/Sales multiple relative to its historical average. However, drawing on the Salesforce precedent, if Monday can sustain its strong operational performance, an entry point at ~10x EV/Sales could still yield attractive long-term returns.
Financial outlook - mid term
Long term projection
Assuming a slight decline in operational efficiency, I estimate that by 2030, Monday.com’s revenue scale could fall somewhere between that of Atlassian and HubSpot today.
Based on comparable valuation multiples for those companies and discounting back at a 13% rate, the implied fair value for Monday.com would range between $300 and $380 per share.
A key differentiator in this projection lies in Monday’s expansion into CRM, Service, and Dev verticals. Under the assumption that current customer momentum is maintained, these new product lines could contribute approximately 15% of total revenue by 2030.
For a detailed breakdown of assumptions and scenario modeling, please refer to my model — or feel free to play with the numbers yourself.
My plan
As of July 2, 2025, Monday.com ($MNDY) trades at approximately $300 per share, implying a valuation of around 12x 2025 EV/Sales or 45x 2025 EV/FCF.
Referencing historical precedents like Salesforce, buying SaaS companies above 10x EV/Sales rarely offers significant room for further multiple expansion. Returns at these levels typically hinge on the company’s ability to sustain exceptional execution over time.
So far, Monday has demonstrated such operational excellence. The company’s execution in 2025—particularly in expanding its presence in CRM, Service, and Dev verticals—will be a critical catalyst in determining whether it can justify or exceed its current valuation.
