Monday.Com Ltd

In August, Monday.com delivered another solid quarter, with revenue and free cash flow both rising 27% and 26% year over year, respectively. The only disappointment was a roughly $2.5 million reduction to second-half 2025 revenue guidance, driven by weaker performance marketing trends. However, we believe the market has overreacted to this transient issue. We see Monday.com as one of the most innovative and agile SaaS platforms, well positioned to leverage AI for growth. We expect AI to be a powerful tailwind for the software industry, and Monday's culture of innovation gives us confidence they will be key beneficiaries. At current levels, we view the shares as attractive.

Monday.com is a collaborative workflow management platform that helps teams plan, execute, and communicate about work. We like Monday’s steady push up-market from SMB to enterprise customers, its expanding platform reach, and long-term vast market opportunities relative to its current size.

We bought positions in Monday.com as it fell from >11x NTM sales to 5x sales. We believe that the market narrative around AI losers is incorrect, and we see Monday.com as a strong player in the software space. Our strategy focuses on companies with amazing products that are hard to create and copy, which we believe will gain market share over time. This aligns with our conviction in terminal value, where we see significant equity value lying ahead for Monday.com.

We saw solid performance from four other software holdings, including CyberArk, Monday.com, Descartes Systems, and Elastic. Our decision to hold onto Monday.com reflects our belief in its strong business model and growth potential, particularly in the context of the current market environment. The company's ability to navigate volatility and deliver results positions it well for future growth, making it a valuable addition to our portfolio.