Matt Frankel

Yeah, so in a nutshell, the market was pricing in three things, right?

Rapidly slowing growth, margin compression, and the risk of AI disruption.

And this quarter really showed better than expected results when it comes to all three of those things.

So Rachel noted that Monday beat expectations on the top and bottom line.

They gave excellent guidance.

Beyond those headlines, looking at RPOs, remaining performance obligations, which is, you know, future booked work, that was up 33% year over year.

And anytime you see foreclosures

future revenue growing faster than current revenue, it's generally a good sign and the market takes it as such.

Enterprise customer expansion is a very, very impressive story.

Monday's clients that account for more than $100,000 in annual recurring revenue, that grew by 39% year-over-year in the quarter, much higher than the overall top line.

Those tend to be very sticky customers, so that's a part of the story the market's really paying attention to.

Management specifically pointed out that 10% of new annual recurring revenue was driven by AI specifically and that it expects that to continue to grow.

They just announced their new seats plus credit business model or pricing model, which a lot of AI software companies are expected to do.

They just announced that last week.

And it will be rolled out over time.

And it should help keep revenue growing as AI can do more of its customers' work for them.

And finally, on the issue of margins, operating margin doubled to 6% from 3% a year ago.

And despite the really strong revenue growth, management said that headcount is going to remain relatively stable for the next year.

And that is a good indicator that we should see margins kind of expand even further.

So all three areas looked really good.