Earlier this month, Monday .com (MNDY (NASDAQ:MNDY)) implemented a pricing adjustment, taking effect in January for new customers and in February upon renewal for existing customers.
The updated pricing structure for the core Work Management platform entails a 12.5% increase for Basic, a 20% increase for the popular Standard tier, and an 18.8% increase for Pro. The pricing adjustment for the Enterprise tier was not disclosed.
In the wake of this move, Citi analysts have revised their anticipated impacts on MNDY’s financials as price hikes are “larger than expected.”
As a result, the team at Citi expects “a more substantial impact in CY24 and could see outsized billings in F1Q from potential early renewals ahead of the February 16 increase date,” they wrote.
MNDY jumped 6.8% on Tuesday.
In addition, Monday.com has introduced competitive standalone pricing for CRM and Dev, positioning itself favorably against rivals such as HubSpot and Atlassian Jira.
“Overall, we believe these price increases could add an incremental 4pts to growth (3pts ahead of prior expectation), accounting for timing offsets and potential churn/downtiering, with the remaining question on Enterprise price increases,” Citi analysts said in the note.