The tech world is buzzing about monday.com's stellar Q1 2024 earnings. Revenue is soaring, free cash flow is breaking records, and their expansion into new product areas like CRM and development tools is showing remarkable traction. Analysts are scrambling to explain their success in a challenging economic environment, pointing to factors like pricing adjustments and a savvy upmarket strategy. But there's a hidden engine driving monday.com's success, one that's been overlooked amidst the excitement of their headline numbers. That engine is **cross-selling.**

While monday.com's new product lines are capturing attention, a deeper analysis of the transcripts reveals a critical insight: the adoption of these products isn't solely driven by new customer acquisitions. Instead, existing customers are rapidly embracing monday.com's expanded offerings, fueling a surge in cross-selling that's significantly boosting revenue and retention rates.

This trend is particularly evident in the accelerating account growth reported for both monday sales CRM and monday dev. Eran Zinman, co-CEO of monday.com, attributes this partly to the products being open to all customers, leading to increased "cross-sell from existing customers." While monday.com doesn't explicitly break down the contribution of cross-selling to its overall revenue, the anecdotal evidence sprinkled throughout the transcript tells a compelling story.

Analysts are fixated on the impressive growth in monday.com's customer base, particularly in the 50k+ and 100k+ revenue cohorts. This is understandable, but it overshadows the equally remarkable performance within their existing customer base. As Eliran Glazer, monday.com's CFO, points out, the company's retention rate is steadily improving, fueled in part by the adoption of new products within their existing customer base.

This shift toward a multi-product strategy is transforming monday.com from a single-product work management tool into a comprehensive Work OS platform. Customers are realizing that they can consolidate more of their workflows onto monday.com, reducing complexity and increasing efficiency. This, in turn, strengthens customer loyalty, leading to lower churn and a greater propensity for expansion.

Hypothetical Impact of Cross-Selling

To illustrate the potential impact of cross-selling, consider this hypothetical scenario: Let's assume monday.com has 100,000 customers using their work management product, and their average annual revenue per customer is $10,000. If just 10% of these customers adopt one additional product at a similar price point, monday.com would generate an additional $100 million in revenue – a significant boost to their top line.

And this is just the tip of the iceberg. With the planned launch of their new monday service product later this year, monday.com's cross-selling opportunities will only multiply. As their product suite expands, they can offer more comprehensive solutions to a wider range of customer needs, further solidifying their position as a one-stop shop for all things work management.

Analyzing monday.com's Revenue Growth

The chart below visualizes monday.com's revenue growth based on data from their Q4 2023 and Q1 2024 earnings calls. While the company doesn't explicitly break down revenue by product, we can observe the overall growth trend.

The key takeaway is this: while the market celebrates monday.com's success in attracting new customers, the company's ability to convert existing customers into multi-product users is a potent driver of their growth. This cross-selling engine is quietly churning in the background, providing a sustainable source of revenue and driving the company's impressive financial performance.

"Fun Fact: Did you know monday.com's name came from its initial launch date, which was... you guessed it, a Monday! It's a testament to their commitment to making Mondays, and every other workday, more productive and enjoyable."

This potent combination of new customer acquisition and cross-selling within their existing base is a recipe for explosive, sustainable growth. It's a strategy that sets monday.com apart from their competitors and positions them to become a dominant force in the future of work. As they continue to innovate and expand their product portfolio, keep your eye on the cross-selling engine - it's the secret weapon fueling monday.com's remarkable journey to the top.