Ladies and gentlemen, thank you for standing by, and welcome to the monday.com Q4 Fiscal 2021 Earnings Conference Call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during this session, you will need to press star then one on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star then zero. I would now like to turn the conference over to your speaker for today, Byron Stephen. You may begin. Good day, everyone, and thank you for joining us on today's conference call to discuss the financial results for monday.com's Q4 and fiscal year 2021. Joining me today are Roy Mann and Eran Zinman, Co-CEOs of monday.com, and Eliran Glazer, monday.com's CFO. We released our results for Q4 and fiscal year 2021 earlier today. Our earnings materials are available on the investor relations website at ir.monday.com. There you will find the investor presentation that accompanies our prepared remarks and a replay of today's webcast under the News and Events section. Certain statements made on the call today will be forward-looking statements which will reflect management's best judgment based on currently available information. These statements involve risks and uncertainties that may cause actual results to differ from our expectations. Please refer to our earnings release for more information on the specific factors that could cause actual results to differ materially from our forward-looking statements. Additionally, non-GAAP financial measures will be discussed on the call. Reconciliations to the most directly comparable GAAP financial measures are available in the earnings release and the earnings presentation for today's call, which are posted on the investor relations website. With that, let me turn the call over to Roy. Thanks, Byron, and thank you everyone for joining us today. We had another great quarter at monday.com and ended the fiscal year of 2021 exceptionally strong. During the past quarter, revenue grew by 91% compared to Q4 of 2020. We are again seeing strong revenue growth across all verticals, customer segments and geographies, with over half of our revenue coming from outside the U.S. Let me discuss three main factors that drove our strong top-line performance. First, we remain highly focused on acquiring new customers. In 2021, we added 38,000 net new customers, bringing our total customer count to 152,000 customers, representing 34% growth from the prior year. Second, we are seeing great momentum with large customers. In Q4, the total number of customers with more than 50,000 in annual recurring revenue was 793, up 200% from a year ago. The enterprise tiers remain our fastest growing customer tier. New accounts with a 100+ users are now more inclined to take enterprise tier as default as we continue to add more value to the tier. During the last quarter, we enhanced the enterprise tier by adding several new administrative and security features, including content directory, audit log, and encryption key enhancement. These improvements will allow enterprise customers to manage and grow their business with confidence and ease while making their data more secure than ever. Third, we continue to see strong expansions within our existing customer base. Once customers adopt the Work OS platform and realize its value, their usage often grows organically, expanding across use cases and departments. In Q4, net dollar retention for customers with more than 10 users improved to over 135%. Customers with more than 10 users now account for 72% of our ARR, up from 63% a year ago. Overall, net dollar retention rate for all customers improved to over 120%. As a reminder, our net dollar retention rate is trailing four-quarter weighted average calculation. Our continued net dollar retention rate improvements are further proof to our ability to deliver strong ROI and a great user experience for our customers. Let me now turn it over to Eran to walk you through some exciting product announcements. Thank you, Roy. We continue to take our product innovation to new heights as we give our customers more capabilities to easily create software applications and work management tools that suit their needs. Our mission is to allow anyone to run the core of their business on monday.com. That's why we're so excited to announce today that we are expanding from one product into a product suite that will further push our mission forward. Going forward, our users will be able to switch between products within their Work OS platform so they can unify work across their organization. These new products expand and augment our go-to market strategy and create additional entry point for new customers to our platform. It is a great way for us to reach new audiences and to explore new markets. This quarter, we are thrilled to announce two new standalone products to the monday.com ecosystem, monday WorkForms and monday Canvas. These products continue our vision to cater to the beginning of work when teams first begin their projects, processes and workflows. Let me first touch on monday WorkForms, which we launched in beta this past quarter. Forms are the beginning of so many workflows. People understand that they need to collect information with forms even before they know exactly what they're going to do with it later. We created monday WorkForms to capture data and collect feedback with built-in conditions and data insights. monday WorkForms can be used for inventory tracking, order management, surveys, and much more. With monday WorkForms, users can create personalized forms for their business with no-code form builder, allowing users to easily set conditions to get the right information and reduce the back and forth. monday WorkForms can easily embed any form to your website, launch in an email, and you can instantly share the link with all the stakeholders to see results faster. Once the form is completed, users can visualize and analyze data all in one place and generate shareable reports. Let me turn it back over to Roy to discuss monday Canvas. Thanks, Eran. In addition to monday WorkForms, we are pleased to announce the launch of monday Canvas. Ideas and innovation often begin in an unstructured space, and digital whiteboards have become the go-to tool for brainstorming and collaborating together. monday Canvas provides users with real-time collaboration in a visual way on an infinite canvas that is full of brainstorming, editing features, and templates of any use case. In monday Canvas, users can add sticky notes, do free drawings, create diagrams and user flows using shape and connectors, and add text using text blocks. monday Canvas will help teams collaborate, brainstorm, and manage work together with more business impact. We are super excited about these new products, and you can now sign up and use them on workforms.com and canvas.monday.com. Let me now touch on the continued success of monday workdocs, which is out of beta and available to 100% of our customers. It's amazing to see how much our customers love monday workdocs. Over 60,000 customers are using monday workdocs for a range of use cases and industries, such as marketing, operations, CRM, and more. monday workdocs remain one of the fastest adoptions of a building block we ever had, with customers having created over 800,000 workdocs to date. Lastly, we were proud to be named CRN's 2021 Tech Innovator Award winner for office productivity software during the fourth quarter. This award reflects our investment in research and development and our ability to hire top talent are paying off. Let me now turn it back to Eran to further discuss our expanding Work OS ecosystem. Thanks, Roy. This is all super exciting. We continue to grow and empower our strong partner ecosystem by allowing others to more easily operate and build on top of our Work OS platform. Let me first touch on our apps marketplace, which continues to expand. We now have over 100 applications that have been developed on top of the Work OS platform. In this quarter, we are pleased to announce that we have gone live with a new built-in payment solution for the apps marketplace. This new solution will enhance developer abilities to monetize their application. No longer will our marketplace partners and external developers need to develop and manage their own monetization system. It will also create a better overall experience for our users as they can now easily pay within the Work OS platform and manage their payments all in one place. We're also excited to announce that we have expanded the partnership we have with KPMG and signed a strategic alliance agreement with the firm. This alliance leverages the business insights of KPMG with the low-code/no-code technology of monday.com to build enterprise-grade solutions that empower KPMG member firms across the world to deliver strategic operating models to customers on top of an agile work operating system. With the announcements of this alliance, monday.com joined a select network of leading technology and data companies working in alliance with KPMG to solve pressing business challenges and accelerate digital transformation. We are super excited to grow together with KPMG as we continue to expand globally and push the boundaries of the way enterprises work. Lastly, I'd like to briefly touch on our progress with the Digital Lift Initiative, which we launched as part of our June 2021 IPO. As a reminder, the Digital Lift Initiative was established to further our mission of closing the digital divide between the for-profit sector and the nonprofit sector. For every $1 of revenue we earn, we have committed to donating up to $1 worth of monday.com licenses to nonprofit teams. To date, monday.com has donated licenses worth over $7 million of ARR to over 5,000 nonprofits in 52 countries. For us, it's just the beginning. The Digital Lift Initiative is open to all nonprofits across the globe. We believe our commitment to ESG will play a large role in shaping the future of monday.com, our values, and our ecosystem in the coming years. With that, I'll now turn it over to Eliran Glazer to cover our financials and guidance. Thank you, Eran, and thank you to everyone for joining our call. Today, I will review our most recent financial results in detail and provide initial guidance for Q1 and full fiscal year 2022. We are extremely pleased with the way we finished the year. Total revenue in Q4 came in at $96 million, up 91% from a year ago. This brought our fiscal year 2021 revenue to $308 million, an increase of 91% from the prior year. These results demonstrate our continued expansion within our existing customer base and acquisition of new larger customers. We continue to execute against an ambitious hiring plan. We ended the year with 1,064 employees globally. This represent an increase of 51% from a year ago, with the majority of additions coming from R&D, sales, and marketing. We continue to have ambitious goal for hiring these categories for the foreseeable future. For the remainder of the financial metrics disclosed, unless otherwise noted, I will be referencing a non-GAAP financial measures. We have provided a reconciliation of GAAP to non-GAAP financials in our earnings release. Gross margin came in at 90%, up from 88.6% in the year-ago quarter. R&D expense was $15.4 million or 16% of revenue. We will continue to invest significantly in R&D as we position monday.com to drive durable growth and win our large addressable markets. Sales and marketing expense was $69.4 million or 73% of revenue, compared to 107% in the year-ago quarter. The improvement was driven primarily by continued efficiencies as we continue to scale our sales and marketing spend to focus on customers with enterprise customers and 10+ users, which now account for 72% of total ARR in Q4. G&A expense was $11.1 million or 12% of revenue, compared to 10% in the year ago quarter, reflecting increased cost of being a public company. Operating loss was $9.9 million, and operating margin improved to -10%. Net loss was $11.7 million, and loss per share was -0.26. Moving on to the balance sheet and cash flow. On a GAAP basis, we ended the quarter with approximately $886 million in cash and cash equivalents. Net cash provided by operating activities was $13.5 million in the quarter. Adjusted free cash flow was $10.1 million and was driven by strong collection stemming from our continued strong billings. Adjusted free cash flow is defined as net cash from operating activities less cash used for property and equipment, and capitalized software costs, excluding non-recurring items. We are very proud of our achievements during this exceptional year and look forward to carrying the business momentum into 2022. Now, let's turn to our outlook for fiscal year 2022. For Q1 of fiscal year 2022, we expect our revenue to be in the range of $100- 102 million, representing growth of 70%-73% year-over-year. We expect a non-GAAP operating loss of $47- 45 million. This includes one-time Super Bowl advertising cost of $8 million. For the full year 2022, we expect revenue to be in the range of $470- 475 million, representing a growth of 53%-54% year-over-year. We expect a full year non-GAAP operating loss of $147- 142 million and a negative operating margin of 31%-30%. With the large market opportunity and customers increasingly adopting the broader monday.com work operating system platform across their organizations, we are committed to investing aggressively in our company. We'll continue to prioritize growth, which we believe is the best interest of our shareholders, employees, and customers. Let me now turn it over to the operator for questions. Thank you. As a reminder, ladies and gentlemen, that's star one to ask the question. To withdraw your question, press the pound key. Please stand by while we compile the Q&A roster. Our first question comes from the line of Kash Rangan with Goldman Sachs. Your line is open. Hi. Thank you so much, and congratulations on a spectacular finish, a strong top-line growth rate, and also you're generating free cash flow, which is very remarkable. Question for the, you know, for the team. Can you tell us a little bit more about how the breadth of use cases is evolving for the company? Because we all know that monday.com is not about just project management, something beyond the concept of work list. If you can elaborate a little bit on the breadth of use cases and also touch upon the competitive environment. Are you pulling away or how do things look from the standpoint of the traditional competitors? I guess on the financial front, the disconnect is that you're generating better than expected operating margins, better than expected free cash, which is great. The guidance has not really changed that much for calendar 2022 relative to the time you went public with respect to non-GAAP operating losses. If you can help us bridge the tremendous progress you're making on the financials with the very conservative financial outlook for operating margins. Thank you so much, and congrats. Okay, cool. Thank you, Kash. Hi. I'll start with the use cases and, Eliran will continue on the second part. It's true. monday has so many different use cases, and I think you can look at it in two different ways. One is horizontal. We are also a CRM as much as a project management tool. We are also used as a tool for R&D teams to manage their work, for marketing teams. That's like in horizontal view. We have over 130 different business use cases where you see different types of businesses from manufacturing plants that use monday to run their operation, to clinical trial research, to really any kind of business out there. Also, 70% of our customers come from non-tech segments, like, not tech companies. We see a really widespread usage of monday.com throughout those different verticals and through horizontals. It really is reaching, you know, the 1.3 billion information worker that, you know, this is our vision to enable them to work better. Thank you, and Eliran can touch on the second part. Yeah. Thank you, Roy. Hi, Kash. Truly, we had an exceptional year and in 2021, and we would like to provide a responsible guidance for 2022 t o continue to demonstrate hypergrowth at scale. A few things that we have to take in mind. We're now, as we said in Q2, we now would like to invest and further grow the business, not only in 2022 but also beyond 2022. Therefore, we took advantage of the fact that we finished the year with cash flow positive, much ahead of what we said even in the IPO. We have a massive opportunity ahead of us. This is the time for us to grab land, to increase our market shares. As you saw in the script, we are coming with new products. Innovation and product roadmap is a big thing for us this year. We said, let's take advantage of the fact that we are actually well ahead of what we anticipated or where we anticipated to be and continue to invest and drive hypergrowth for the foreseeable future. This is the number one priority for us, but we do it with scale, and therefore also mindful to the returns that we are doing, and other business initiatives that we're currently pursuing. Wonderful. Thank you so much. Thank you. Our next question comes from the line of Brent Bracelin with Piper Sandler. Your line is open. Thank you, and good morning, good evening. I want to start with the new products you talked about, WorkForms and Canvas. Could you talk a little bit about pricing, and then talk a little bit about kind of adoption trends? How broadly could these products be cross-sold in the installed base? Thanks. Yeah. Thanks, Brent. This is Eran. First of all, we're very excited to launch those two new products. This is the first time for us as a company that we expand our product line, adding two new products and basically giving a product suite to our customers. Currently, our focus was to build two new products where we feel people start to do their work. People might start a new process or a new project with a form to capture data or to manage internal requests. Also people might start with a whiteboard just to organize their thoughts or to start a process. We see this as a huge opportunity to capture new markets and new people that might be potential users for the platform over time. Those are gonna be independent products, and we're gonna charge for them separately. People will be able to use them. We feel that both forms and whiteboards are never, you know, the goal. They're on the path to achieve something. Basically, by allowing them to use both of those products, and then over time also integrate with Monday and continue the work and the process they started in each one of those tools might be a great leverage for us as a platform. We see this as a strategic part of us growing our ecosystem of products and capturing more users, more audiences, and more people that wanna start any kind of work process or a project. Helpful color. It sounds like these are actually going after potential new lands, not necessarily new products going out and targeting, you know, big cross-sell opportunities. Helpful color there. I guess, Eran, my last follow-up for you is just on, you know, free cash flow. Two consecutive quarters of positive free cash flow. I guess we can't quite call it a trend yet, but that's very impressive execution there. As you think about the investments you're making in the coming year, it is a bit of a departure from what we've seen in the last, you know, couple of quarters. Walk us through the biggest areas you're investing in. Is it still largely around sales capacity? Is it still tied to digital advertising? Just trying to better understand where you're prioritizing the investments in 2022 here. Thanks. Brent, with regards to your question on free cash flow, we're coming from an exceptional year, but we had COVID. Many things that we planned to do during the year, even with Q4, we had Omicron. Getting back to normal, we're going to invest in having conferences, people will travel to see one another, exhibitions, company events. This is one more area that we would like to continue to invest. Second thing is we accelerated hiring. What we're doing, we saw the trend in Q4, which we had a massive hiring, continue, by the way, into the fiscal year 2022. This is a place where we are going to invest significantly. In addition to that, we are going to do things that relates to new products and new investments to address new markets that we're currently not operating, to enhance our existing Work Operating System and to grab land in versus competition. From our perspective, investing in headcount, investing in you know, getting back to normal and with the ad and brand, for example, the Super Bowl event that we did that was exceptional, $8 million, these are the things that we are aiming this year. All right. Very clear and helpful. It's Roy. Hey, it's Roy. I'd love to add to Eran that we see a massive opportunity in our ability to grow this year, both in marketing, market demand, like in a lot of areas and, you know, it's like makes us confident in investing a lot of money to do that. Very helpful. Thank you. Thank you. Our next question comes from the line of Mark Murphy with JP Morgan. Your line is open. Yes. Thank you very much, and I will add my congratulations as well on just a fantastic free cash flow performance. I did want to start, and Roy, you had just mentioned, I believe the Super Bowl ad. What is your early sense of the effectiveness of that ad? That for instance, did it drive website traffic? Did it drive a free tier sign-ups, and you know, could it boost customer metrics or billings metrics in Q1? Any kind of insights would be greatly appreciated there. I have a quick follow-up. Sure. Thank you for the question. Actually, we love the Super Bowl. It was amazing. We do like being the data nerds that we are, we track everything. We kind of measured ramp-up between countries and the website and searches and a lot of different things. We saw a big spike following the ad itself. For us, it's mainly an ability to jump to the next level of brand recognition in the world. It's a long-term play. It's not something you know that we measure on a day-to-day basis, although that was also great, and the overall coverage we got for the ad was amazing. Excellent. As a follow-up, Eliran, if you drill into the sequential change in billings, and I think we understand those numbers can bounce around. But I believe it's 15% for Q4. The prior couple of years had been 23%-24%. I'm curious just if there was any impact to billings, perhaps stemming from duration or FX or timing, and any other factors. If you might just have any thought on perhaps how to model billings if anything is unusual in that setup for Q1. With regards to billing, just as a reminder, our business model based on the ARR is 70% or more now actually is coming from annual subscription, and 30%-ish is coming from monthly subscription. We see some trend towards the annual, which obviously we benefit from, but this is pretty much the trend. As a leading indicator, this is one of the reasons why we care about billings, but you know, you cannot really forecast you know, the trend over time. This is important for us in terms of the health of the business. When you know we look at the return of the spend that we are doing, either in performance marketing or social marketing or sales, by the way, then we see the return, measure the return, then we kind of forecast the billings that we are going to get. We have an algorithm to address this. With regards to our growth in the next year, this is a main driver of the cash flow and the billings. Revenue growth this year was 91%, obviously, drove strong cash collection. Net dollar retention that was above 120% for all customers and above 135% for 10+ also is driving this. The growth in the enterprise customers is also a driver. All of these unit economics are main drivers of our ability to continue and collect and have a very healthy billings model. Thank you very much. Thank you. Our next question comes from the line of Bhavin Shah with William Blair. Your line is open. Great. Thanks for taking my question, team. I appreciate it. I wanted to touch a little bit on the 50,000+ cohort. You know, growth there is really strong. I guess I'd love to understand a little bit about sort of who are you replacing as you're expanding or landing these larger accounts. Like, is there an incumbent or is it still pretty much manual workflows that you're replacing? And sort of how sophisticated are these workflows when you get above 50,000? Is it sort of replacing very sophisticated workflows? How should we think about what's being done with monday that was not able to do or poorly done with either other products or manual? How is that space? I'd love to talk about that for a minute. Sure. Thank you, Bhavin, for the question. This is Eran. Basically, as we scale into the enterprise, and again, this is right for small businesses but also for the larger companies, we see that 70% of the deals, we see literally no competition. People use spreadsheets and emails and PowerPoints, and usually we displace those. Taking what they used to do offline or using very basic tools, and using that, and replacing that with monday. It's not exactly replacing, but it's filling a lot of vacuum that exists within the organization. People use a variety of tools and then move to using monday to fill all those gaps, all those processes that didn't have a place to be. Another thing that monday plays a major role in is to integrate a lot of the tools that are being used already in the organization. Whether a company uses a CRM software or another project management tool, by integrating that into monday, you create one place where you can reflect a lot of the data that happens in other departments within the organization, connect different people, and basically break the silo that exists because different people use different software. It's not really displacing an existing software, but more about filling the vacuum and connecting everything else that's being used by the organization. Hey, this is Roy, and I'm sorry. I can add to what Eran said, yeah, the use cases themselves can grow to be really complex, doing a lot of things across departments. Some stuff customers build like really blows our mind, but it happens gradually. You know, they onboard. Initially, everyone uses it to track the work and really manage everything. It grows over time with complexity and our help all the time. That's kinda like the, I don't know, life cycle of usually most of our customers. Got it. Yeah, I agree with Eran, like, email and Excel is not automation, right? That makes a ton of sense. I guess, you know, you guys have said earlier, you know, you're sort of data nerds, and we've all known each other a while, I know you are. You know, the freemium model is something you guys started. You know, we all talked about is that the right way to do it, and it's obviously working really well. I'd love to get a little more color on how that's impacting the top of the funnel activity and net new customers. Obviously, healthy growth there, but I guess what does the early data tell you about sort of customer awareness and the return you're seeing from the freemium strategy? I'd love to get a little more depth or color there. Yeah. This is Eran again. The free tier that we launched is very successful. So far we see a significant increase in the amount of people that use the freemium version of monday, while not hurting our existing funnel. We mentioned that previously, but we A/B tested that thoroughly and just to make sure it doesn't hurt the funnel, but actually add a lot of free tier users. What we are seeing and actually seeing this accelerating as a trend is customers from the free tier moving into and becoming paying customers. It's kinda a second wave, if you like, of those kind of customers, but we see this growing and accelerating. This is very exciting. Another thing that unfortunately we can't measure is the awareness of the brand and people using monday.com to do other things apart from work. It's kinda hard to measure the effect of this, but definitely it has some effect of the brand and the awareness of monday.com can do. Yeah, no, it's good to see that freemium conversion accelerate. I appreciate the color, guys. Nice job, and thank you for taking my questions. Thank you. Our next question comes from the line of Brent Thill with Jefferies. Your line is open. Hi, thank you. This is John Byun. I was hoping that maybe you could dig in a little bit more on the new products, WorkForms and Canvas, both being in beta. Just wondering when you expect those might go GA. Then the pricing is a little bit higher. I guess for the WorkForms, the standard is around $29. Wondering about, you know, the go-to-market for those, as well as if you can shed any light on the pricing for Canvas. Lastly, how to think about contribution within the guidance for this year. Thank you. This is Eran. Thank you for the question. Basically we just launched these products. They're now in beta. We actually are still experimenting with pricing. The pricing also might be different. For example, we might charge not per user with the forms, but use different metrics to price our product. It's still work in progress. As I mentioned, it's just the beginning. These are kind of new seeds of products that we planted, and we will see the results in the future. From our perspective, we didn't take those products into account with our guidance and kinda revenue going forward, but we see this as the huge potential for the next few years, both in user acquisition, as I've mentioned previously, but also as a revenue generator over time. Again, it's early days. We're still experimenting. We'll change the pricing over time. We're very excited about this. We got some great initial feedback from customers. It seems like there's a huge need in the market for those kinds of products, so we feel that it might be a great opportunity with those going forward. This is Eliran. Maybe just to add to what Eran said, also relate to a question earlier on where we are going to invest. Innovation is one of the key drivers within monday, and we speak about it a lot. We would like to continue to innovate and add additional products over time, as I said, not only for 2022, and this is where we do some experiments, but also beyond. With regard to the ecosystem, this is a place of high focus of ours as part of our investment, continued investment in R&D and adding additional resources. Thank you. Thank you. Thank you. Our next question comes from the line of Andrew DeGasperi with Berenberg. Your line is open. Thanks for taking my question. First on the NRR progression. I mean, I noticed it ticked up quite a bit in Q4 to 120% or above 120%. Given this is a trailing metric, it sounds like you had a lot of expansion in the quarter. Can you maybe elaborate on what happened there and what was popular? I have a follow-up. Yeah. Sure, Andrew. Thank you. As we said, we are driving revenue, and ARR is being driven by two main things. One is adding new customers, and as you can see, we have now more than 152,000 customers. Many of these customers that we add, more than 80% of our ARR is coming from Pro and Enterprise tiers. What you see basically is that once they become customers of monday.com, there is an expansion process because we already have them as customers, and the sales people actually are expanding inside. You can see that the ease of use of the product, the fact that we are already embedded inside, the fact that we have multiple champions is a key driver. As we continue to go upmarket with customers with 10+ users now already represent 72% of total ARR, as well as the expansion within the enterprise account, this is basically driving this expansion within this existing customer base. Thanks for that. In terms of large deal activity, maybe another way to ask you this question is, I think last quarter you mentioned you were approaching seven-figure deals. I was just wondering if any were booked this quarter or if you're seeing any more activity on that front, for this year. Yeah. Thanks, Andrew. This is Eran. Definitely we see also acceleration in the amount of bigger deals that we managed to close. Another data point that we can share is that we have several deals over $1 million for the first time. This is also very exciting, but it's not a one-time thing. We see this as a trend that continues to happen and expand over time. Definitely we managed to land bigger deals and to close bigger companies using the product, and we see this trend continuing in 2022 as well. Thank you. Thank you. Our next question comes from the line of David Hynes with Canaccord. Your line is open. Hey, thanks, guys. Congrats on the continued momentum here. As you think about the evolution to a product suite, as you kinda talked about in the prepared remarks, how do you envision that impacting the go-to-market motion? I mean, should we expect more in terms of kind of bundling and packaging various solutions? I guess what could the implications be on, you know, landing ASPs? Hi. Thank you. It's Roy. Yeah, we see this as a massive go-to-market for us, an additional go-to-market for us, mainly because the need for those tools is separate. An important thing to note is that these are complete standalone products, both WorkForms, and Canvas. We expect it to be another addition for different types of customers who may be looking for something else other than a platform such as our Work OS, to join the ecosystem in a separate place and then be exposed to the suite of products and maybe try out other stuff. We definitely see opportunities all around with this approach. Got it. A follow-up, just with respect to kinda your new partnership with KPMG. Like at what spend level would a partner like KPMG typically start to get involved? And I guess, you know, do you anticipate that they could bring you customers that start near these levels? Or is it more about, you know, helping you to kinda scale your more mature customers and their use cases? Hey, it's Roy still. Yeah. With KPMG, it's a special partnership because we see the future together. I feel KPMG, we managed to find a way to get into existing practices, okay, like digital transformations and others, and we're very, you know, experimenting a lot with like, carbon measurement and a lot of other stuff that I think will be the future for many different practices. I think they see the no-code, low-code capabilities we have as a big leverage to solve many big problems and that's where it grew from. Got it. Okay. Thanks for the color, guys. Thank you. Our next question comes from the line of Derrick Wood with Cowen and Company. Your line is open. Good morning. Thanks. Well, my first question I wanted to touch on the net revenue retention rate, 10+ cohort, up from $119 to 136 million, that's a 17% increase, really impressive. How much of that was improvement in churn, and how much of that was just pure expansion? If you looked at the expansion, if you think about, you know, more viral adoption with better brand awareness or what you guys have done with direct sales and customer success teams, I mean, which area would you point to, having great impact on it? Yeah. Thanks, Derek. This is Eran. Basically, it's a result of both. We've both seen less churn with our cohorts, and also we see more expansion within existing users. The more expansion, we can attribute that to our ability to allow larger enterprises to use monday and expand more, also product improvement that we introduced and the fact that those companies can use monday across multiple departments, so they can expand more and more as they scale the deployment of monday within the company. Thanks to a lot of product improvements that we introduced this year, we see all those cohorts having less churn. Also, I think the free tier kinda a little bit contributed to that. You know, people are able to try the product more, and then churn less and kinda have more confidence. A lot of great things that we introduced to the product managed to increase the net dollar retention. As Eran mentioned, and not only that the net dollar retention itself grow, but also the proportion of the 10+ user population have increased. It's a double kinda increase that we see within our customer base. You know, two great trends that we've seen, and we also see this gonna continue in 2022. That's very helpful color. Maybe, Eran, a follow-up for you on the operating income guide for 2022. Obviously, you guys, product development and R&D is gonna be a big focus, as well as sales and marketing as you invest more in growth. I wanted to unpack that sales and marketing a bit more. I mean, on the marketing side, is there any impacts from IDFA that's changing the calculus there. On the sales side, what should we expect, kinda continue the headcount growth levels as we saw in 2021? Hey, Derek. With regards to the IDFA, this is less of a concern to us. It's mostly for the B2C companies. We don't see an issue with that in our B2B model. With regards to the performance marketing, so when you think about our business model, we have a hybrid model, just as a reminder. We started performance marketing, we generate the leads, and then there is the salespeople and the customer success and the partners that actually continue the motion. We are investing in both, these categories. On one hand, continue to invest in performance marketing. We have a phenomenal unit economics, as you can see, by the level of the cash flow, by the level of returns. On top of that, we are bringing additional salespeople to the SMB categories, to the mid-market and to the enterprise. This is a place, if you think about the way we plan our headcount growth this year, and this is why we said that we are going to accelerate hiring. We are front-loading expenses in Q1 and in fiscal year 2022 as a whole, in order to continue to drive the growth that we are seeing. Definitely continue to invest in sales on headcount, already increasing the quota bearing significantly, also increasing the partners channels, in places where we don't have sales people and continue also to expand our customer success management group that is also helping us a lot with renewal and supporting the big customers who are becoming more meaningful. Investing at all fronts to drive further growth. Perfect. Thank you. Congrats on a great quarter. Thank you. As a reminder, ladies and gentlemen, that's star one to ask the question. Our next question comes from the line of Robert Simmons with D.A. Davidson. Your line is open. Hey, guys. Thanks for taking our questions. I was wondering, how much revenue are you expecting from the payment solution in the app marketplace, and how much is included in guidance? Sorry, this is Eran Zinman. Can you repeat the question, please? Yeah. On the payment solution that you have now in the app marketplace, how much revenue from that is included in the guidance? Oh, okay. Yeah. Thanks for the question, Robert. This is basically a new feature that we introduced just recently, announced it now as part of the earnings call, so it's just early days. Very insignificant, almost none so far. Also this year, we didn't add this revenue as far as the guidance. Again, this is for us, the beginning of kinda evolution of our app marketplace. We see more and more developers creating apps within the marketplace. Already, some of them have created their own solution to monetize those apps, and we now introduce a way for those developers to easily charge our customers using the in-app payment systems, which will reduce the friction and allow more developers to charge and build more applications that they can monetize. Definitely, we're very excited about this. Again, it's early days, and this year it's gonna be insignificant as part of our revenue. Got it. Great. It looks like both the number of clients and the revenue per client grew quite a bit in the last year. How much of the revenue per client growth is coming from kinda seat growth, and how much is it coming from other factors besides just the number of paid users? Robert, first of all, welcome on board. I think it's your first call. When we look at, you know, the revenue per client, because we have a large and diversified customer base, more than 152,000 customers, we don't really differentiate between the two. If you want to think about the way the business model works is the combination of what we mentioned earlier. We have the new customers and the expansion. There is a certain ratio between the two, and they basically, when we look at the total revenue per client, because of the diversity in the clients, big clients versus small clients, the ATV is kind of a metric that we look, but we don't use as an indicator of our business health. Got it. Great. Thanks for taking the questions. Thank you. Our next question comes from the line of Scott Berg with Needham. Your line is open. Great. Hey, guys, this is John Godin under Scott Berg. Thanks for taking my question. Just as far as 2022 goes, how should we think about the contribution from the partner channel for this year? And how have you seen that kind of evolving over the past couple of years? Thanks. The partner channel is something that we started very early in the life of monday.com, and we are very proud of. It continues to grow quickly. As a reminder, in places where we don't have the sales people, we have 11 offices around the world, in Latin America, in Asia Pacific, in other places in Europe, we actually have partners that are becoming very meaningful in our contribution of total ARR. We have more than 150 channel partners globally. This is obviously the network with key partner example, you can see Slack, Google, Microsoft, Salesforce, Zoom, et cetera. We also continue to hire internally partner channel managers. They are becoming also very meaningful in our total headcount. I would say that they are very, very significant in our total ARR. Great. Just second on the monday workdocs, how are you kinda seeing customers use that functionality the most initially? How do you think about quantifying that usage within the broader platform, you know, in the near term and maybe over the long term as well? Thanks. Yeah. Thanks, Scott. This is Eran. Basically workdocs we just announced is out of beta. We made a lot of progress in terms of product innovation. We mentioned this earlier, but the trend still continues. It's one of the fastest building block or feature that we ever released with the highest adoption rate. More than 60,000 existing accounts already using workdocs. Those customers created over 800,000 workdocs to date, which they use and engage with. It's a very meaningful part of our platform. It became a meaningful part of what people do with the platform. Again, you know, the fact that this, in terms of retention and usage, and revenue, we'll see over time, but in terms of engagement and usage and value that our customers get from workdocs, it's a phenomenal feedback and statistics that we see so far. We're very proud of that product. Great. Thanks guys. Congrats. Thank you. Thank you. Our next question comes from the line of George Iwanyc with Oppenheimer. Your line is open. Thank you for taking my question. With the continued aggressive hiring, can you give us maybe some perspective on how quickly the recent sales hires have ramped up? You know, as you look at adding people this year, are there any changes in where you're focusing your hiring, either from a vertical perspective or a regional perspective? Hey, George. We continue to hire aggressively in the sales team. We also did some initiatives that actually accelerated hiring. I can tell you that in December, January, and February, in Q4 of last year, November and December, and already the beginning of this year, we are getting very close to achieving our targets with regards to sales. We are hiring in Israel as well as in other places in the U.S., in Europe and in other places where we are now opening offices such as Tokyo and Asia Pacific. This is in our plans. This is something that we are pursuing aggressively. Okay. Just one more question. Given the continued strong customer growth, are you seeing any changes in the way customers land, either from a use case perspective or the type of teams that initially engage? We see customers landing bigger as we have a very, you know, thousands of use cases. Basically, we have a number of products that customers are landing, project management, work management. We also see others like CRM, marketing. We have different solutions that we offer to the customers, and we can see them coming from all kinds of directions as part of their search in Google or other searching engines online. Thank you. Thank you. I'm not showing any further questions in the queue. Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect. Everyone, have a wonderful day.