MNDY 1Q26 - A Better Monday

研报英文原文证据摘录

MNDY 1Q26 - A Better Monday

May 11, 2026

Investment Conclusion

MNDY shares are down -48% YTD vs. the IGV -15%.

The quarter showcased early traction on MNDY's AI monetization strategy, with AI contribution to NNARR stepping

up to ~10% in 1Q vs. LSD last quarter, driven primarily by Vibe. This came in well above the guide and was

the largest beat in 3 quarters, and momentum is broadening into 2Q with early Agent and Sidekick adoption.

Upmarket continued to outperform internal expectations, with touch the fastest-growing segment as the SLG motion

compounds, while self-serve remained pressured, a dynamic management is increasingly addressing through the

pivot to a consumption-based pricing model (seats + credits on the new homepage for new customers, eased in for

existing). Offsetting the AI beat, management took down NDR guidance modestly as $40M of FY25 pricing impact

laps into FY26 (vs. $10M of FY26 pricing impact), and expansion is no longer expected to fully offset the headwind.

Headcount discipline remains intact, with management reiterating ~3,211 employees by year-end (flat to 1Q after

19% Y/Y growth in 1Q), supporting operating margins despite GM stepping down from 89% in 1Q toward ~86%

exiting the year on AI compute mix. We reiterate OP.

MNDY currently trades at ~1.6x CY27 EV/Sales, a discount to Front-Office peers trading at 1.8-2x and 7x FY27 FCF

vs peers at ~8x. Our $90 PT implies a 2x CY27E EV/Sales, in-line with FO peers. We reiterate OP.

Callback Highlights

Tale of the Quarter. Management framed 1Q26 as a clean print with AI revenue as the primary source of upside. AI

contribution to NNARR stepped up to ~10% in 1Q (vs. LSD last quarter) and was not meaningfully contemplated in the