monday.com Builds Capabilities for its App Marketplace

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According to a recent report, the digital transformation market is estimated to grow at 22% CAGR to reach $3.55 trillion by 2028. Israel-based monday.com (Nasdaq: MNDY), which went public last year, provides organizations with cloud-based solutions to drive this digitization. It recently reported strong first quarter results.

monday.com’s Financials

monday.com’s first quarter revenues grew 84% to $108.5 million. Net loss was $0.96per share, compared to a net loss of $0.63 per share a year ago.

It forecast revenues of $117-$119 million for the second quarter and $488-$492 million for the fiscal year. The market forecast revenues of $118.22 million for the quarter and $491.3 million for the year.

monday.com’s Growth Focus

Recently, monday.com announced its partnership with KPMG. The partnership will combine the business insights of KPMG with the technological innovation of monday.com’s no-code/low-code platform to create customized solutions and apps that empower global KPMG member firms to deliver strategic operating models and solutions on top of an agile work operating system. The solutions created on the monday.com infrastructure simplify the aspect of work for enterprises and enable KPMG to continuously provide real-time strategic insights and services for companies to digitally innovate their business, allowing customers to unlock opportunities for growth and constantly stay ahead of industry challenges.

The company is also improving the platform’s PaaS capabilities. It launched a monetization framework for the monday.com apps marketplace that will give developers and partners the ability to integrate and manage app payments directly within the Work OS and let all users manage multiple payments and subscriptions from their existing monday.com account. With the new payment solution and the platform’s low-code/no-code framework, developers will be able to build, distribute, and monetize their apps all within their monday.com workspace. The payment solution is easy to integrate into new and existing marketplace apps with its SDK. Post implementation, developers can start processing payments and monday.com will handle the entire billing process, including currency conversions, recurring subscriptions, refunds, invoices, and revenue payouts. New and existing developers will still have the option to use external payment solutions until they are ready to make the transition.

The monday.com app marketplace was launched in late 2020, and has already reached 1 million visitors and 195,000 app installs. The company does not share further metrics about usage and associated revenues.

Currently, its stock is trading at $94.85 with a market capitalization of $4.27 billion. It hit a 52-week high of $450.00 in August last year and a 52-week low of $85.75 earlier this month. monday.com went public last year when it raised $574 million at a valuation of $7.5 billion. The recent stock market turmoil has hurt its stock significantly.

Disclosure:?All investors should make their own assessments based on their own research, informed interpretations, and risk appetite. This article expresses my own opinions based on my own research of product-market fit, channel execution, and other factors. My primary interest is in product strategy. While this may have bearing on stock movements, my writings tend to focus on long-term implications. The information presented is illustrative and educational, but should not be regarded as a complete analysis nor recommendation to buy or sell the securities mentioned herein. I am not a registered investment adviser and I am not receiving compensation for this article.

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