Apr. 21 at 4:35 PM
$MNDY My largest position is Monday at 20% of the portfolio. This is why.
Monday is a workflow management tool used by a diverse portfolio of businesses ranging from SMBs to enterprise customers.
The product has negative churn, meaning the average amount its customer base spends on a monthly basis grows instead of dropping off, this speaks to the stickiness of a SAAS product being exceptional.
It is currently moving upmarket and growing its revenue basis with medium size and enterprise accounts; transforming its SMB user base into a more predictable cash flow business.
From a financial standpoint, it is profitable and generating about
$300 million in free cash flow per year.
It is also deploying part of that cash towards buybacks given how low its stock has gotten with
$170M utilized already on a
$800 million program.
Monday also has a fortress balance sheet whilst being profitable, holding
$1.6 billion in cash for a
$3.5b market cap.
