Yahoo Finance Monday.com (MNDY) Expands in Japan With Local Tokyo Team
Monday.com MNDY recently expanded its global presence into Japan with an office in Marunouchi, Tokyo along with a Japanese local team.
Monday.com is already working with several well-known local partners such as Hitachi Solutions, NTT DATA Global Solutions Corporation, Gaprise, TalentA Corp and others to increase its customer base in Japan and has obtained some well-known local customers such as Eisai Co., Ltd, Kumon Institute Education Co. Ltd., Moneytree, and many more.
Monday.com’s work OS, which is entirely localized in Japan, has experienced a 187% increase in annual recurring revenues from 2021 to 2022, and currently services more than 500 paying customers in the region.
Such a positive response from the Japanese market brought a good opportunity for Monday.com to expand its office and gain further traction.
Expands Global Footprint With Strategic Partnerships
The company has partnered with more than 150 channel partners operating in more than 45 countries across the globe to date. It is building its partner infrastructure and fostering a self-sufficient ecosystem, underpinned by strategic partnerships in the Asia-Pacific region.
It recently also opened a new North American headquarter in New York City to support and facilitate accelerated growth across the region. The new space in such a central location will be incredible for the team to meet with and connect with customers in-person and bring face-to-face collaboration with the partners as well.
Monday.com is also expanding its product offerings. In second-quarter fiscal 2022, it launched a new Work OS product suite, which has seen extensive adoption. Within two months, it had over 1,000 new paying accounts signed up.
Total revenues in the quarter also increased to 123.7 million, up 75% year over year. The enterprise customer base also crossed 1,000 customers. The company anticipates third-quarter fiscal 2022 revenues to be in the range of $130-$131 million, representing growth of 57-58% year over year.
monday.com Ltd. Price and Consensus
monday.com Ltd. price-consensus-chart | monday.com Ltd. Quote
The new end-to-end products of Monday.com are tailored by vertical and built on top of the Monday Work OS platform, including Monday projects, Monday Sales CRM, Monday Dev and Monday marketer. This allows customers to switch between products within their Work OS platform so that they can unify work across their organization.
These product enhancements got Renault Group to sign up with Monday.com and use the Work OS platform to share and manage the communication activities of its brands around the world. The Renault Group is using the platform to increase their communication functions collaboration and efficiency across 39 countries.
However, Monday.com faces headwinds from ongoing inflation and recessionary fears as well as the geopolitical tension between Russia and Ukraine. The FX impact caused a 2% decrease in the company’s growth rate in the second quarter and is estimated to be around 300 basis points by the year-end.
Shares of Monday.com have declined 68.8% year to date against the Zacks Computer & Technology sector, which declined 36.8% in the same time frame.
Zacks Rank and Stocks to Consider
Monday.com currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Some better-ranked stocks in the Computer & Technology Sector are Airbnb ABNB, A10 Networks ATEN and Baidu BIDU.
Airbnb lost 35.8% of its share price year to date. A10 Networks declined 11.4% while Baidu declined 27% in the same time frame.
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