Investor Q&A Session - Elevate '26 - MONDAYCOM LTD

Please welcome the monday.com management team to the stage. Alright, I feel like we're missing one more. great uh thank you all for joining us uh at elevate 2026 and thank you particularly for management uh putting on this investor q a session i really appreciate it i'm byron stephen uh vice president of investor relations to my left i've got l l around glazer chief financial officer of monday.com uh aaron zimman and roy mann who are co-founders and co-ceos of monday dot com and casey george our cro uh so this is a open format i will remind everybody that we will be reporting our q3 earnings here very shortly so we'll try to keep this uh less focused on numbers and not talking about our q 3 upcoming q3 results but more on strategy and product as much as possible Anybody who is listening to this on audio, we are live streaming this through our investor relations website. If you have any questions, feel free to email us at IR at Monday dot com. And we'll be happy to take those questions as well. So we've got two mic runners around here and we'll just open it wide for Q&A. Great. Can you hear me OK? Yeah, we can hear you, Steve. Great. Steve Venders from from Citi. Thanks for the thanks for hosting this great event today. Maybe just want to ask on, you know, a lot of focus on agents and trying to drive adoption. I guess, how are you thinking about, you know, the organic getting people to adopt it that way versus needing a services element? And I guess what are you kind of doing with Frontier and the services model to enable that for for your clients? Yeah. Thanks. Thanks for the question. so look I think I'll start first with generally speaking feedback that we constantly hear from customers is that you know nobody's skeptical about AI everybody understands AI is a transformative technology I think we're now in a phase of adoption where customers saying you know we've been on the side of let's do token maxing just by an AI for the sake of buying AI and we're now transition into a phase in the industry where customers are saying we We want to see return on investment. We want see actual business impact, whether it's reducing cost or increasing the top line revenues. And I think there's a big gap between the fact that technology exists to actually adopting it. We hear it across the board from customers, customers who bought licenses to use all kind of AI software but saw marginal gain in terms of efficiency. And they understand and the feedback we hear is that in order to drive a real change in their own company, their own business, they need deep adoption and guidance more than anything. We heard that feedback. What we announced in our keynote earlier this morning is first that we're establishing a new organization called Monday Frontier. It's basically a combination of managed services for deployed engineers. We're gonna scale this massively going to 2027. We see a lot of demand from customers. basically say we want your experts to drive the change within Monday their deployment of Monday and what we also hear from them is that they want to do it on the platform because they have most of the data inside Monday the contacts they have people already using the platform from across the company and something we emphasize during a keynote is that we want people and agents working together having people build agents in a silo way doesn't help in In order to drive real change, you need people and agents, data and context all live in one place. So I think this is a big opportunity for us. This is the way companies are going to adopt AI going forward. And this is exactly what we're going to focus on as a company. Hi, thanks so much for doing this. Matt Bullock, B of A. We hear a lot about context being critical from software vendors. It would be great if you could help us understand the context that lives inside the Monday platform, how you guys differentiate versus a lot of peers in that context advantage, and then high-level your strategy for API, MCP, and allowing third-party agents to tap into that context longer term. Yeah, so I can take this. So, yeah, it is critical. It's like a bunch of things. It's context, but also guardrails. okay like access to data and governance we've just been with the cab that's like the one of the number one concerns in enterprises okay i have my data in here but like i really want to know who's accessing what when and to trust that so so that's another really critical element and the context is work for us, okay? Like you want the agent to do stuff, it knows what all the team did and your projects, your company, your role, what do you need to accomplish? It's already in there and so that's a critical part and then it knows also to ask for other stuff that might be in other areas. And we see this as like the magic part, right? Like you ask, it knows already. And like Daniel shared on the stage, he said, like, what do you need to do for it? He says, nothing. And I think that's like a killer part because it also, it's not only that it's easy to use, it also allows us to create really good agents because we know before and we can, you know, analyze all the data ahead of time so the agent can also suggest stuff it also knows it and it's a better agent it's not just like putting the data it's also like you know having the right agent to do that stuff and look in the data in a certain way but that's one part of it and the other and i'll answer your question of like external agents we don't think we're going to be the only agent platform and it's all in one there is obviously massive advantage for having a suite that covers everything like we are doing but there's also a lot of power in connecting to anything else okay so whether it's any other source of data that you can pull in and any other agent that you can pull in and we're equally dedicated to opening up the platform because again like we said the real value comes from having everything work together okay when I write something to you and your agent jumps in the conversation and whether it's on Monday or not and has that context or another context you can imagine like synergies happen and it becomes like a multiplier so we we can also provide all of it if like you're a smaller customer probably but for the larger enterprises we're going to be like a bigger uh let's say piece of the puzzle of all their ai info and maybe just to be uh more specific so today you can use monday through the api through mcp everything is open you You can use Monday Headless if you want. And also you can import any third-party agent, whether it's on Clutch, HPT, or even personal agents, into the platform. It's going to be like any other user. And we don't distinguish between native-built agent within the platform to third-party agents. Thank you. Arjun Bhatia with William Blair. Roy, around your keynote, I think, was um highlighted change as like a pretty important theme it seems like there's a lot changing obviously in the environment in the market and then at the company also historically like we've always looked at monday through the lens of work management crm dev etc service is that still the right way to kind of think about the company or does that need to evolve and are you going to become sort of you know ai agent orchestration and is there a new sort of framework or project product lens through which we should sort of view the business going forward yeah it's a good question I think it definitely evolved I would say specifically in the last year in two ways one I think historically Monday was perceived as just a project management software we say more broadly like work management but very project oriented sense I think all the use cases you've seen today and from customers and also things Daniel highlighted in his own presentation this evolved tremendously in the last few years people today what they do on Monday is to manage critical business processes now it's it's different kind of processes across the company that there isn't like a you know off-the-shelf software to do that but Because Monday flexibility and nature of how you can use the product, companies from different industries manage critical business processes. I think, in a way, this is a big opportunity also in the age of AI because as much as our goal as a company remains the same, which is to drive acceleration for businesses, improve their efficiency and revenue, I think the TAM has dramatically increased, not decreased. because what now companies or our customers can do with the platform is much greater in terms of the business impact that they can generate on top of us and and just in terms CRM and service so also with CRM in service we think this way so they can take in a more independent path of how they evolve also put a lot of emphasis on a genetic offering that we offer in each one of those verticals yeah and from my perspective it's like you can look at it like work management has like it's always been a place to kind of connect the organization collaboratively and you can think about it that it's like expanded a lot with agents because because what they do is very general with us and they can connect like customers can connect a lot of different aspects of the organization you can argue that other agents do the same and there I think, like the, let's say, historical quadrants is at question, right? Because the borders are kind of diffusing between areas. And that's also why it's important for us to first connect to other vendors. And I think that's where the customers are, that they are asking themselves, you know, what do we want? Like, it's not as if AI was a technology that was born to solve a problem. It's now a technology looking for, you know, things that can improve. And I think that's what customers are doing. And with that, borders are kind of like blurred in a way for the different boxes. And I thank we, and that's why I thank Eran mentioned as an opportunity for us in a lot of ways. because we're entrenched in the white space and connectivity of a lot of things. And so if we go to market well, we'll capture that area. Hey, thank you, guys. DJ Hines from Canaccord. So there's tons of great AI ROI examples today in the presentation, whether it was growth, productivity, efficiency. To me, it seemed like a lot of the examples you cited skewed a little bit more SMB or departmental. A, is that the right read for where we are today? And then B, like what needs to be the unlock to take that into the enterprise, right? Is Frontier part of that? Maybe I'll leave it there and any observations you have of kind of where we aren't that evolution. Yeah, so I can start. So we actually tried to give a mixed use case study. So we had one from a 100-person company, one from a 10,000-person company. Actually, we've seen way more adoption with our enterprise customers on AI agents, triple the adoption compared to SMBs. So I think we have a larger portion of SMB in terms of, you know, percentage, of course, from the total customer count. But in terms of adoption, willingness to use, willing to spend, we see much more potential in enterprise segment and also our strategy is very much focused on continuing to go up market and focus on enterprise customers i think in a way and roy just mentioned uh we just met with the customer advisory board speaking along with enterprise customers they're actually thinking about monday as a potential solution to how they can adopt ai because their biggest fear is that if we give ai all the freedom in the world without guardrails uh it can hurt their business and and there's a lot of concern around it. Because we built our agents and our AI offering on the Monday platform, which is enterprise safe and secure, they have full control, they know exactly what data is in it. I feel they feel much more confident and I think Monday Frontier will accelerate that because a lot they're saying we trust the brand, we trust the company, we trusted product people of the product. I need your help with those experts to find those use cases going to make an impact on my business. I think this is our our biggest opportunity, and this is the biggest segment we're going to go after in the next year. The only thing I'd add there is we have to be successful at both. So the product organization is hyper-focused on building what I'd call accelerators. So as an SME customer, if you can give them 80%, they can get all the way home with the rest of the agent. That's one of the things we're hearing loud and clear. And as Aran just mentioned, as we move up market, It is very clear, and our customers are screaming it. Please help me. I don't know where to start. I don' t know how to do this. I need someone to ask the right questions, right? And so that little bit has surprised us, I would say, that the enterprise has been such a huge growth opportunity for us, for agents. But we got to do both. Yeah, hi. Thank you guys so much for the time. Taylor McGinnis with UBS. two-part question on Frontier because that seems to be the big announcement coming out of today the first is this seems like a bit of a change in strategy for you guys because if you think about Monday historically it's been very easy to get up and running so one could you give us a sense of how big of a lift that might be for you just in terms of costs and you know bringing all that that hiring in and then secondly to the extent that you guys have been trialing Frontier with some customers i would love to just hear early feedback on what you guys are seeing with roi and use cases being unlocked and payback periods just anything that you guys could give us a sense for what this opportunity could become yeah it's uh i'll start you can continue like just one point that is important for me to highlight it's still the core of monday to make things easy and simple and you know when i think you saw that in the presentation it's critical for us the frontier part is to help them think about the business the value and not about using it it's about because then they will build something and they'll own it okay it's about holding their hand and helping them and be consultative in that respect so yeah yeah i think what roy is saying is exactly correct i think the problem is not the user interface or the easiness of use i think this is something we know how very well how to do i have a lot of confidence on that front I think the biggest problem is to identify which areas in your business can be improved with AI, and then how do you drive the change? Because it's usually, from our experience, it's not one thing you need to change, and there's multiple people involved, multiple risks involved, and it's very complex. Look, we've been very focused, working closely with our customers in the last six months. Like I said, they love the brand, they like the product. They have good usage and already a lot of data in it. It's a big advantage. I think one of the biggest issues right now with AI, with companies trying to implement AI, is they go to market. It's an extremely noisy market. Everybody's saying the same message. And people don't know, they feel fatigued about all the messages they hear around them. And eventually they want to go with brands they trust. So I think it really plays to our benefit. We've seen a lot OF success so far. This gives us the confidence to scale Monday Frontier going forward, to do more implementation like this. So we're going to hire for that this year, next year. We're going to put a lot of focus on that and offer it to the majority of existing and new deals. Great. I have one question online that's been submitted. It's going to be for Al-Ahran. Without discussing near-term guidance, if growth remains below historical levels, how would you adjust spending to protect free cash flow? We continue to operate as we said in Q2 when we discussed the numbers. We continue to operate in a way that is efficient meaning we're looking at growth but at the same time we're looking at our bottom line continue to be efficient on the way we manage post-RIF and we did the RIF and we announced it and we said that we had a growth savings of potentially $100 million that we're going to invest the majority of it but we're still looking at our cost components such as AI cost, such as investment in headcount. So we keep the balance of investing, but also looking at the efficiency metrics that we always looked at. Hey, guys. Alan Verkovsky with US Bank BTIG. Congrats on a great event. The keynote energy was phenomenal. I want to ask a follow-up question to one of the things you were talking about earlier, which is around your API limits. And so I think I heard that customers are now getting notified when they exceed their daily API limit. And you'll be monetizing API add-ons next year. So can you talk about the activity and factors you saw that led you to begin enforcing these limits? How meaningful can this be? And then lastly, can you tell us can you also talk about how the user mix has trended between monday.com users that are exclusively using your MCP versus broader AI capabilities inside of Monday? Thank you. So first of all, we always had the limits to our APS for a plan, so that haven't changed. But basically, when we think about pricing strategy, and this is something we announced a few quarters ago, we want to lean more of the hybrid model of seats and consumption. We unify that credit system, So whether you use Monday Vibe or agents or AI columns within the board or AI workflows, it's going to take the credit for one pool of credit. And we're going to allow a customer not just pay for seats, but have a consumption model in addition to that. Over time, I think we'll introduce more and more of those capabilities into the product as we see that customers are leveraging the platform in different ways and want to allow them to scale regardless of their headcount. Uh, so again, like over time, I think it will shift, but I think we're very focused on a hybrid model right now. Uh, so we kind of might see more features like that, uh, coming into play. Great. Hi, Elizabeth Porter from Morgan Stanley. Thank you so much for today. I wanted to follow up on the idea of the different quadrants and how AI is blurring some of the lines between these. And so my question is, does the shared AI layer change some of the cross-sell opportunity across work management, CRM, service and dev. And what are you seeing from customers as it relates to AI driving a willingness to adopt more products versus just monetizing more of those existing deployments? We continue with a multi-product strategy and all of our AI capabilities and our assets span across all of Our products. So that's definitely an integrated point that our customers really like, right? So they can leverage what they built-in work management and also leverage that in CRM and service, et cetera. So that obviously helps us as we cross-sell. The second part of your question was, remind me. Yeah, and obviously, if they can use some of these assets across multiple products, obviously, their utilization goes up. So it is a self-fulfilling prophecy in a lot of ways, And we are starting to see that. We did accelerate some of our capabilities in CRM. So some of the agents that we built that were specifically for CRM came online sooner than our AI workspace. So those things have helped us in the reverse with our AI Workspace platform. So it's, again, a self-fulfilling prophecy. If I'll use Daniel's metaphor from his session about batteries being included, I think work management broadly is a more diverse product. Every customer uses it in a different way. I think the benefit of both CRM and service specifically is that we can build very specific agents and AI use cases that are built specifically for CRM service. So it's a little bit easier to adopt for our customers, and there's a lot of potential with those specific agents as well. So, it's a little bit of a different use case. I feel Monday Frontier will be, let's say, more needed for the work management part, where CRM and service, again, this is just our intuition, it is going to be more easy to adopt using the built-in agents that we offer. hi i'm mark chapelle with a loop capital uh regarding the rebranding strategy i was wondering if you just talk a little bit about uh what specific commercial problem uh the rebbrand is is intended to solve here uh is would it be like you know limited enterprise awareness uh you know the perception that you're just kind of a work management tool maybe just talk a little bit more about the rebrand strategy? Yeah, I mean, first of all, we feel, you know, we've been with the Monday logo for a long time. This is after we bred it from our previous name, which was The Pulse. And we're very excited for this change. It's not a major change than it was back then, but I think we feel that the company's strategy have evolved since then, and the offering we can offer to our customers much greater than what it was. We're seeing that from the use cases. We see them that from, the feedback we get from customers. I think in a way it will open up people to listen more to our story and kind of rethink what Monday can be for them. I mean now with everything going on in the market with a lot of noise, I think it's a method for us to stand up a little bit above the noise tell the monday story again i think for a lot of customers that heard about monday in the past it's still perceived maybe as a you know limited work management or project management i think in a way the rebrand will help us reposition monday as the ar workspace for teams uh open up new messaging and new ways to communicate to customers they can do much more with the platform today and also talk about the fact we're going to be there to help them solve and maybe find opportunities to leverage AI more. So I think it's more of a facelift, a way to tell a story again, open up to new customers and continue to go in-app market the way we've done in the past few years. I have one more question online. I think this one's probably more for Casey. What most often limits expansion within enterprise customers? And what are you changing to address it? I would say, you know, a lot of our opportunities as we move up market, as you can imagine, these enterprise customers have multiple platforms, right? So there's constantly rationalization going on with their vendors. And this is where we shine a lot at times. We typically win in these instances. So what typically happens, and it slows us down sometimes, is they've got to organize whatever they have today and figure out how they're going to move it to us. So to the extent we can help them accelerate that with our services to migrate over, that's great. As you can imagine, they build a lot of workflows and a lot of different platforms, and it's tightly integrated into what is a pretty complex infrastructure. So that's the one thing that slows us down sometimes. I don't think that's unique to us, but we do see that a lot. And we see it a lot because a lot of our expansion opportunity up market is taking out the competitor. Thank you, guys. This is Ivan Radovich from Wolf Research. Maybe one question on the voice AI agent Harmony that you launched, which is obviously pretty exciting, and it's one of the highest growing markets out there, but also one of most competitive ones with a lot of um ai startups competing in there so maybe what are you like seeing there uh with with early adoption and early feedback and then two what do you think will be your right to win and what what differentiates you there versus other uh products and platform products in the market is it like specific use cases or anything around the models uh what is sort of the right to to win there yeah and so it started with us uh making a decision that voice is a strategic path for us or like something a capability we'd like the platform to have uh so we'd be we acquired one ai the startup and and that's like the seed that grew harmony And essentially, the product has a lot of unique capabilities. We build our own models, like really small, lightweight models that identify a lot stuff really needed to have high-quality conversations and high-quality voice conversations. Just to give an example, when someone answers, Like identify it's a voicemail and not start talking into the voicemails as if it was a real person. So like we're really good at that and a lot of other stuff. And so we do have some advantages right now that we're winning over competitors in quality. But I think it's like more strategically something we need to own and to incorporate in a lot other solutions and especially with the frontier that we see a lot of the use cases if you pull voice in it kind of solves for and opens up the door to a lot other use cases and connectivity throughout the organization i'll just add to that that two things one uh um it's a separate website separate go to market uh harmony.ai so we separated that from the platform it's It's a completely separate product. One of our assets is a company with over 200,000 customers. So, again, the go-to-market right now is very fuzzy. A lot of our customers express interest in voice agents. So I think it's an opportunity to sell that to our customer base. And also what we've seen from customers is a lot of the times that a voice call from their own customers has become a process later on within the company. I feel there's a big chance of one plus one equals three here, integration with Monday, each call making it in a workflow. So we'll also see some integration there. But they have their own go-to-market, and they're approaching our existing customers. They have a booth here to elevate, and we see a lot of interest from our existing customer base. I'll add one thing here as well, and I think those of you who know this industry and market with contact centers, think everyone would agree it's probably the most ripe industry for disruption. And this platform is not an SMB platform necessarily. It scales all the way up to the largest customers. So we can support and go all the Way up to top of the market. And as I just said, in a market that is ripe for disruption, and this stack that they have built in this platform is second to none. So it's a huge opportunity. We're super excited about it. And I'm even more excited about the fact that we can continue to support our out-of-market motion. Having said that, it is a startup. So we're just starting, and we'll see how it goes. Thanks for doing this, guys. Masha Nishi from J.P. Morgan. Casey, you touched on this earlier, but with the significant portion of your ARR still from the sub $50,000 customer cohort, how much are you going to continue or start to offer Frontier to your lower scale customers? And, you know, on that point, we've been hearing from kind of channel partners that maybe the enterprise customers are receiving a little bit more attention in terms of standing up Monday's AI products. Do you see that as true? And how much Are you going to invest into, you know, kind of your base customer cohort? The timing of your question is very good. We just had a couple of strategic partner meetings. And what I would tell you is our FTE motion is, for the most part, in place to support our mid-market, up-market customers, our enterprise. Obviously, we could not scale that for our 50,000 S&B customers. We are leaning on and building a program and a model where our partner ecosystem supports those customers with pre-built assets, obviously services. This is what they do, and it's what they did very well. and they're very interested in this space and building out a set of resources that can go deliver for those customers. So we're doing both, but through a different channel, and our FTE motion really there to support our upmarket customers. Yeah, again, like going upmarket is one of our most strategic things we're focused on in the company. When we went public in 2021, I don't remember the exact number, but I think we have a single-digit percentage of accounts that are 50K or above. We've been gradually kind of replacing our customer base now over 40% and we'll continue to grow that segment going forward. It's a strategic direction for us as a company. I mentioned this earlier to a previous question. We see much more adoption of AI agents within our enterprise segment three times compared to SMB, relatively speaking. So we're very focused on that. Frontier is going to focus on that, mid-market and above. And we see great adoption and willingness to adopt more AI and the ability to pay for that. So definitely more can I focus on where we're going anyway as a company. I have another question online for Al-Ahran. How do you determine how much cash to retain versus return to shareholders? So as a reminder, we did the buyback that we completed in Q3. It was $870 million, a program that we announced. when we did the analysis what would be the amount that we think is appropriate for us in terms of capital allocation we said okay what it would be the requirements of cash in order to run the business just an example for six months without interruption what would the amount of cash we need for potentially M&A with regards to M&As we said that we're going to look at tens of millions and not hundreds of millions this is what the strategy that we defined And the third thing was looking at shareholder return by way of shares buybacks that we did. So this is the way we also think going forward in terms of the strategy and our execution plan. We're not thinking currently about any additional buyback, but this is something that, you know, if in the future we want to think about it, then we have the flexibility. but the main purpose or uses of our cash is running the business and keeping some cash for a potential M&A. Great. Thank you. Prashik from Eighth Wonder Fund. My question is for enterprise movement. How much of enterprise growth you guys are thinking from coming from having more agents and seat usage versus more product penetration and a second part of that is kind of a dumb question but i like asking dumb question how do you define a true enterprise for an example if i have 200 300 seat customer but i have a lot of your products so i could easily be spending 100k with you so what is true enterprise customer for you guys well we identify enterprise anything over a thousand seats uh is that right page a thousand so uh i know we've played with that definition so 1500 okay thank you i know yeah the definition has changed but 1500 is thank you uh is the amount that we identify for an enterprise customer now don't get that confused with like enterprise tier that's our our highest tier but if you see any stats where we break it out by enterprise mid-market smb enterprises over 1500 employees But there's one caveat there. If we do see a customer that has the potential based on how they're using the platform and they have growth potential, we do treat them as we would a customerthat has 15 plus 100 seats. So we have the ability to do that, and we do that on a regular basis. I would add one more thing that changed now because of the new offering. Let's say if we had a 1,000-people account and we had, like, wall-to-wall deployment, like 1, 000 people in the enterprise, we felt like we kept the ability to expand. Now, with the hybrid model, the fact we have consumption, so we see this as a potential to expand, so it's no longer like an account that we can reach its limit. So we try to upsell it like agents and vibes. So I think it's opened up a new vector for expansion that was previously limited by the amount of people within the enterprise, within the company. And now with the consumption hybrid model it opens up new opportunity for expansion. So you might see like a mid-market account paying equivalent annual contract that an enterprise could only pay previously. Howard, do you have a question? Thanks. Howard Ma with Guggenheim Securities. For what it's worth, I don't think the Pulse is such a bad name because you could have done a play on words. It was called DA Pulse, so it's not – yeah, anyway. Anyways, I digress. My question is, have you guys done an analysis on the incremental usage that your platform scalability investments unlock and how much of that usage you believe will take the form of agents? And then, Iran, you mentioned pricing earlier, pricing packaging. Could you see that evolving into more agentic tiers? yeah uh so maybe i'll start with the pricing part so look i think everybody is trying to figure out what's the best way um to price their offering uh i think we we see this already uh i thing it's a larger problem than just how monday is pricing its product because um you've seen also the frontier labs um when you price per token and you manage to reduce the token cost uh you know what happens to the revenue and how this affects the run rate of those businesses. So we, first of all, with the frontier, we try to think about more of a solution that we can tailor to our customers as opposed to just pricing on tokens and usage. So we're thinking about also new potential pricing strategies. What I'm trying to say is it's a moving target. I think we'll evolve a lot over the next year or two and learn what customers are looking forward in terms of predictability, attaching price to results, and we'll adjust it along the way. I think what's important to emphasize, which I said earlier, is that it's no longer just a seats model. It's a hybrid model, and we'll continue to expand it as we move forward. That's the first part of the question. Sorry, I forgot the first bar. It was measuring the incremental usage of that scalability. Some of your customers said that they use Yeah, we heard that a lot today. So it's like a lot of them see that as opening the door for leaning 100% on us. Like some of them have maybe a few vendors and they want to say, you know, we want to go all in on you and that's an unlock for a lot of those stuff and we see it also as a critical path to agent usage and AI usage. Why? Because there will be so much more information in the system because of agents. We need the scale, we need the speed, we needs all of that. So for us, it's kind of like the same investment, both in enterprise and in the future of AI on the platform. Great. As a reminder, if you're listening online, please feel free to submit any questions to ir at monday.com and i'll be happy to to ask those questions i do have one for casey what are the biggest opportunities to improve rep productivity and what needs to change to realize them yeah so very proud of the direction of our rep productivity we've done a lot with our rev ops organization to build in processes that streamline a lot of the things they do right obviously our reps want to spend more time doing what they love which is selling so if we can to remove as much of that as possible. It's a big help for us. One thing that we did, and you heard this in the keynote, you've heard this a couple of times, and I think this is the best thing we could have done as a company, definitely since my tenure started, but we had a Gentic week, right? And so we unlocked the power of the platform. We handed it to every individual in the entire company. We said, hey, go build. We're going to take the week off. We are going to go build assets. you come up with whatever you want we gave them no guardrails whatsoever and you'd be amazed the creativity and the things they thought of and of course a lot of the sales reps came up with processes and built ai capabilities that removed a lotof the administrative things they do some of the things that they don't want to do again they want to go sell and so we created a ton of productivity or capacity in our system by leveraging our own platform the other thing i would tell you, and I can say this, I've worked and been a leader at a number of technology companies, some of the quote unquote best in the world. I've never been at a company where everyone was a super user of what you were selling, right? So we all love the platform. We've used it before AI and now with AI, it just exploded. So our productivity on the back of us all using our existing platform has just exploded, so we continue to keep a close eye on that. We no longer have to grow our sales headcount in a linear fashion to support our growth we are growing our headcount but we don't have to do it in the same linear fashion as we've done in the past because our productivity has increased so much it's also we did something really interesting we connected the platform to big brain to our data source and so it's like everyone out of the bat have access to their data and like all their sales data and everything. So they pulled up their own agents, reports, whatever they wanted. And it's also like to the previous question of context. And that's like been a massive unlock of context for the stuff we build internally that we connected our own data lake into the platform. And it's a bespoke connection, but obviously any one of our customers, we're going to help them do that as well. Hey, Ryan Mack, Wells Fargo. So a lot of talk about the fusion of AI through the economy. And I'm happy to say that my uncle, who's a plumber in Philly, called me today and said, we got to talk about this AI thing. And I was like, OK, we broke containment. And he wanted to talk About Voice, which was interesting. But I guess I have a two-part question for Elrond here. Just a lot has changed about how we think about AI, but how people are adopting it. So I know you're not giving financial targets today, but has AI usage or investment maybe changed any of the ways you think about the financial components of Monday's business could be going forward? And then for Iran, for those customers that have been on the front foot of adopting AI throughout their organization, whether through Monday or larger AI labs or different AI features or implementations, how have you seen those more AI-forward customers change their Monday implementation? I will start. So with regards to internally, how we use AI. So a year and a half ago, or maybe 14 months, we hired five people in the finance team. None of them was a financial person. They were project managers. They were developers. And what we did is we established a team that everything that they do is just they have to look at all the processes in finance now, also outside of finance, and automate the processes. And there is a belief for some reason that you will get immediate ROI. I spoke with one of the investors here earlier, and I said that I'm attending all kinds of webinars. And people are saying, we're using AI. And then there is a question, how many people did you let go because of AI? And no one did. How many people you didn't tire because ofAI? It starts to do something. So I think for us, there is lots of work that we are doing. But currently, it's not reducing work. It's actually replacing. I think there is transition period of about, I would say, 18 to 24 months in which we are going to complete. and people are having now more time to do things that are more strategic or they can be more knowledgeable about other things that working with other parts of the organization, replacing repetitive actions like, I will give examples, customers' billings matching with invoices and all kinds of manual things with regards to budgeting, with regards to free cash flow modeling, with regards to the modeling of the business itself. We now ran, I will give an example, I'm proud of it, we worked on this for the past six months. We took an Excel spreadsheet and we basically, that was everything, the Bible of Monday, and we now run it in different AI tools in order to, like a statistical model, a business model. It takes a lot of time. So I would say, by way of efficiency, people are doing much more with AI tools. There is a lot of work still involved. Over time, I think we're going to see the productivity gains coming very soon, but already we're changing the landscape of how we operate in Monday. And that's the finance team, right? The finance team. I can share stuff we're doing in the R&D team. It's like about 30% of the code is now being written automatically by AI. And I don't like 100% ofthe code is being written by AI, but it's developers. Like 30% is just like automatic, like bugs coming in and cycle through like without anyone touching it. It helps there because we have the infrastructure to validate quality. Okay, we had it all set up before. But in other areas, like Eliran said, we're building it and all that for our customers. One anecdote, one story he told me about a year and a half ago. He said, one day we'll sit in an earning call and you and seven agents. I wanted to do it before. I said I was never going to do that. No, it's the agents with me. We're going to attend the legal aspects of that. I think it was the legal hurdles, not the IR hurdles. Justin, you were second part of the question about how we see enterprise adopt AI, the ones that are actually kind of more forward-leaning. So, look, definitely some customers are more forward leaning and more experimental with AI. Look, for SMBs it's easier, but also they're less willing to pay, I would say. because the impact is not just great as enterprise companies. With enterprise companies, we see some, but as I've said, we've seen a lot of them need guidance and help with adoption. This is why we put so much focus on Monday Frontier, and we tend to double down on that. I will say we did see some customers building incredible things. The way we think about this is also how we can increase usage. If you attend a Daniel session, one feature we introduced recently was agent directory, because a lot of our customers says, we built amazing agents, we want to share it with the rest of the company. Some customers build an agent that anybody in the company can ask questions about the business, they connect it to the data source. Some of them build an engine that can process receipts and a lot other things. So we're trying to think about what kind of features can we build for enterprise customers to drive reality and to increase agent adoption, the same way we've done for other features we developed. This is one example, and we plan to launch more of these. So definitely think about how the product can encourage more people to create agents, to use agents other people are using. If you think about it, this is a big problem right now in companies. Individuals might be very proficient. They might use Cloud or ShiftGPT, any other vendor. But when it comes to actually sharing what they've been building with other people, making it official, who's taking responsibility for that for us every agent we built we have a human owner that's responsible because ai is a great technology but it will make it never take responsibility for mistakes you can trust me that will never gonna happen um we need to be accountable um we our customers are accountable for the results and they want to track what the agents are doing they want to have a log of what's going on so we the way we think about our product uh is exactly that How we can give them the confidence of what they're doing, how we can drive reality and make this amazing technology available to everybody in the organization. I was wondering if you could spend a minute talking about any trends that are different or at high level if it needs to be on the SEM side. And I think maybe more importantly looking forward, what SEM was 10 years ago and what you built with BigBrain should probably be pretty useful for agent-led growth. You know, agents who are deciding whether they're going to use a product management tool to handle themselves and choosing Monday. And alongside of that is obviously the GEO stuff. But I'm just curious whether there's any effort inside the company or thought or you're seeing any early results from what I'm sure is work to do to surface in those places the same way you surfaced really efficiently in SEM. Definitely. First of all, we have deep partnerships with Entropic and JetGPT. at GPT, we paired with one of the top vendors that they recommend in terms of integrations. We see our NCP usage and discovery exponentially growing month over month. So definitely, it's a new way to discover the product. We see very good conversions for that. At the same time, as we disclosed a week over a year ago, we've seen the pressure on the top of funnel. And I think the industry is going through a shift, where previously it was about displaying in ads for people doing search or surfing online. We're shifting now to more decision-making and ages recommendation, and I think over time it will shift more towards that. We're very focused on that. We have teams working on that, on those partnerships and discovery. We'll see. It didn't offset the pressure we felt previously, but I think things will eventually will come into equilibrium of discovery, And of course, we'll do whatever in our power and our big brain engine to seize every opportunity that presents itself. We are seeing internal AI opportunities, like you mentioned, like agents optimize stuff automatically and also launch campaigns, multilingual, like right off the bat stuff we couldn't do before, like create like a hundred ads and not one. like nothing like almost no time so those stuff we're rolling it out now and also closing the loop so I think like we're going to see some gains from it but again like Eran said nothing changed from what we reported before on the pressure in that area Thank you. Ivan Feinsteth, Tigris Financial Partners. Going back to Harmony, how do you see the product developing to gain the ability to increasingly interact, and where do you see deployments, let's say, like in apps eventually, you know, even as early as next year, for example, phones are going to go from a regular operating system and using apps to a voice-activated interface that then the operating system drives the agents that interact and drive the transactions, for example. I think that's going to be a huge opportunity for voice interfaces, as well as the growing demand for voice interphases in all levels of customer service. So the question was, sorry. Are you good? Yeah, I can start if you want. Yeah, so again, Harmony is a very interesting opportunity. I'll just say that Harmony's product can do both things. It can do outbound calling. So, for example, calling sales prospects and customers. And also a very popular use case is inbound calling, so customers calling into the business. It can take over the business phone number and route calls and basically work against the script of what you want it to do. I think over time what we're going to see is an explosion of agents doing calls, agents calling one another and scheduling appointments and inquiring businesses. I don't know. I'm not sure what's the end game of that. I just feel customers' expectations in terms of the level of service they're going to expect, how fast they're gonna get a response, is going to dramatically change and businesses that won't adopt such a tool will be left behind. So I feel we're going to see an explosion in that field. And like we've said, this is strategic for us. We acquired One AI. We built it, packaged it into Harmony. We plan to offer that to our customers. We feel it's a big opportunity. We focus more on the mid-market enterprise segment and not the SMB segment on that product. And again, I feel it has a great potential. We have time for one more quick question. Awesome. Ian McHugh with Jefferies. I guess I'm wondering just on the shift from the C-base to the C base plus usage model, just broadly what inning we're in there, any color on number of customers that are using usage, if they're topping up their tokens, and then if there's been any pushback by customers on the new model. Thanks. Yeah. So overall, it was very well received within our customer base. We are introducing improvements and adjustments as we move forward. A lot of the features we built in the last few months is to provide more visibility into the way they're consuming their credits. That was a big request from our customers. So in the admin section, actually there's a whole booth here just for the admin sections. It's pretty wild. People are really excited about that. We have like a full report of who consumed what per month over time. We're also trying to experiment with credits, so like give personal users credits and then overall company pool credits. So we'll adjust it over time. Overall, it was very well received. I think it's becoming more of an industry startup going forward. And over time, we learned how to properly improve the way we package it to customers. But definitely customers' reception for that and willingness to pay have changed in the past year. Yeah, but we still get the same feedback everyone gets, that they want predictability, which is hard to give them because it depends on usage, but that's like a shift we see for everyone, moving from super predictable models to a consumption-based one. But within that boundary is where they understand it, and we're solving for a lot of those issues like Eran said. Great. With that, that concludes our time. I appreciate management for making time for our investors, and I want to thank the investors particularly for some of you that have traveled to be here. We really appreciate it. For those of you in the room, we do have some swag in the back if you're interested, and some additional snacks as well. So thank you once again, and hopefully we'll get to see you at the rest of the Elevate sessions. Thank you. Thank you, sir.