Cloud computing companies, which have recently faced public market turmoil, can take heart from the strong start of a new entrant in the market.

Shares in the Israeli-based software business were valued at $ 155, trading for about $ 174 on the second day of Thursday, giving monday.com a market capitalization of about $ 7.6 billion, making co-founder Roy Mann a billionaire.

“We really wanted to build a long-term, large company. The IPO is the way forward,” said Mann, who started the business with Eran Zinman, now co-founder of monday.com, in 2012. “It was a time when the company was mature, the market seemed to be in a great position, so it was the perfect time.”

Monday.com (originally called No Capitalization) originally moved out of Tel Aviv, where Mann was CEO of Wix, looking for a better way to manage his team through software. He talked about them, then և started research և development at mobile Conduit Mobile, և the two released a product in early 2014 that offered task management և team updates. In 2017, dapulse was renamed monday.com to mark their international audience (work weeks start on Sundays in Israel). The following year, the company was valued at $ 550 million amid US expansion (it now has offices in New York, as well as in London and Sydney).

By the time monday.com tripled its value to 1. $ 1.9 billion in 2019, the company was focusing on integrating other workflows into monday.com, charging more of its software as a non-coding, easy-to-adapt platform. which is used far from projects. task management or project management. Speaking at the Nasdaq offices where the company rang the opening bell on Thursday, Mann said the company had always envisioned itself as more of a “working operating system” that simply relied on project management to reach customers who were now running the software. everything from hotels to factories. Clients include Oscar, Universal Music Group և NHL.

“I think in the long run, what will happen in a few years is that we will enable people to control their destiny so that they can build what they need to run their business and operations,” Mann said. : “What will win is the ability to give people power.”

Monday.com closed 2020 with revenue of $ 161 million, up 106% from the previous year. Using its last quarter, the company expects annual revenue of $ 236 million this year, up 85%.

Mann, 42, is now a billionaire at the time of his trading on Thursday. About 6 million shares of his company are worth just over $ 1 billion. The 38-year-old became vice president of CTO in November 2020. He owned about 2.3 million shares of Monday.com shares at IPO, valued at about $ 400 million.

The relatively modest “IPO pop” of 10% to 15% is unlikely to capture the enthusiasm of direct listing supporters, an alternative to the traditional IPO, in which the company starts trading from the reference point but does not sell shares. starting fixed price. Monday.com did not leave much money on the table even with such a calculation. Speaking shortly before the stock traded, Inman said he was not worried about Mani ային the day-to-day trading price of the company. According to him, selecting long-term allies for its investors, according to him, was the priority of the company. “It does not matter how much it will appear when you start a company in the long run,” says In Inman.

The money also helps, raising $ 574 million on Monday. The most important for its long-term trajectory. Some of its new backups come from Zoom և Salesforce, both of which have invested in the company’s private equity as part of an IPO. “For us, it’s a testament to the fact that they really believe in our history և stocks,” he added.

Despite some IPO observers pointing out that monday.com’s sales and marketing costs have increased in recent years. Of the $ 234 million raised as a private company, $ 121 million. With 120,000 customers, 70% off technology, and net retention rates of around 120%, the founders of monday.com claim that the market in which it operates is still evolving rapidly.

“We see a huge opportunity for all the companies in the universe,” says Mann. “And we want to be there with a lot of passion for creating great products.”

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