Monday.com (MNDY) expands in Japan with local Tokyo team
monday.com MNDY recently expanded its global presence in Japan with an office in Marunouchi, Tokyo, as well as a local Japanese 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 secured 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 fully localized in Japan, saw a 187% increase in annual recurring revenue from 2021 to 2022, and currently serves more than 500 paying customers in the region.
Such a positive response from the Japanese market presented Monday.com with a good opportunity to expand its office and gain traction.
Expands its global presence through strategic partnerships
The company has teamed up with over 150 channel partners operating in over 45 countries around the world to date. It builds its partner infrastructure and fosters a self-sufficient ecosystem, supported by strategic partnerships in the Asia-Pacific region.
It also recently opened a new North American headquarters in New York to support and facilitate accelerated growth in the region. The new space in such a central location will be amazing for the team to meet and connect with customers in person and bring face-to-face collaboration with partners as well.
Monday.com is also expanding its product offering. In the second quarter of fiscal 2022, it launched a new suite of Work OS products, which has been widely adopted. In two months, more than 1,000 new paid accounts were created.
Total revenue for the quarter also increased to 123.7 million, up 75% year-over-year. Corporate customers also crossed 1,000 customers. The company expects third-quarter fiscal 2022 revenue to be between $130 million and $131 million, representing 57-58% year-over-year growth.
monday.com ltd. Pricing and Consensus
monday.com ltd. price-consensus-chart | monday.com ltd. Quotation
Monday.com’s new end-to-end products are vertically tailored and built on 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 they can unify work across their organization.
These product developments have led Groupe Renault to register on Monday.com and use the Work OS platform to share and manage the communication activities of its brands around the world. The Renault group uses the platform to increase the collaboration and efficiency of its communication functions in 39 countries.
However, Monday.com faces headwinds from continued inflation and recession fears as well as geopolitical tensions between Russia and Ukraine. The impact of exchange rates resulted in a 2% decline in the company’s growth rate in the second quarter and is estimated to be around 300 basis points by the end of the year.
Monday.com shares are down 68.8% year-to-date against the Zacks computer technology sector, which fell by 36.8% over the same period.
Zacks Ranking and Stocks to Consider
Monday.com currently has a Zacks rank of #3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here
Some top-ranked stocks in the IT & Technology sector are Airbnb ABNB, A10 networks ATEN and Baidu BIDU.
Airbnb has lost 35.8% of its share price since the start of the year. A10 Networks was down 11.4% while Baidu was down 27% over the same period.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.