5 Interesting Learnings from Monday at $1 Billion in ARR

So Monday is just a freight train right now.  It just keeps scaling and scaling.  It’s now crossed $1B in ARR, still growing a stunning 34% … with 22% Free Cash Flow margins!That’s as good as it gets in SaaS, folks.  Jaw dropped.What are the secrets?  A few, but 2 stand out:* Going multiproduct early* 70% of their customers are outside of tech.  So they’ve been immune from most “macro” impacts.5 Interesting Learnings:#1.  Still Growing Net New Customers +26%This is the key to scaling.  You have to keep the net new customer count over 20%, even at $100m-$200m+.  And over 50% at $50m ARR to keep growing going.#2.  110% NRR from SMBs, 114% From $50k+ CustomersIt’s just so hard to scale at the SMB without 100%+ NRR.  110% is magical with SMBs.  And Monday’s consistently hit it.  NRR peaked in Q2’22 when the Crazy Good Times were ending.  But it’s still stayed at 110%+ every since, and in fact, is higher than it was in 2020.#3.  $50k+ and $100k+ Customers Growing the FastestThis isn’t unique to Monday.  Eventually, most of us have to go upmarket to keep the engine going.  But Monday didn’t rush there.  And the vast majority of its customers and revenue are still SMB.  78% of its accounts are 10+ seats, but that’s still not huge.  And 22% are still tiny.#4,  Massively More Profitable and Efficient Than 24-36 Months AgoMonday, like almost every Cloud and SaaS leader, has gotten incredibly more profitable and efficient the past 24+ months.  Even as it’s resumed faster hiring.#5.  Only 30% of Customers in “Tech”, and Customers Broadly Span 200+ IndustriesPerhaps the opposite of vertical SaaS here.Wow, breathtaking.  Few in 2024 are firing on all cylinders as well as Monday.Find your Monday.Thanks for reading Scaling SaaS -- from SaaStr! Subscribe for free to receive new posts and support my work. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cloud.substack.com