Monday.com Fully Bets on AI, New Hybrid Pricing Model Shows Early Expansion Signals

Overview

This report is a Monday.com conference note published by J.P. Morgan after the 54th Annual TMC Conference. Its core content comes from discussions with Monday.com co-founder and co-CEO Roy Mann and CFO Eliran Glazer. The report focuses on the company’s AI strategy, pricing model changes, customer adoption pace, and potential adoption barriers, while maintaining a positive investment view on MNDY.US.

Core views

The report’s core view is that Monday.com is evolving from a traditional seat-driven software business model toward an AI-driven model that combines seat and consumption characteristics. The new seat + credit pricing model can create near-term incremental revenue beyond seat revenue, and over the long term may make the revenue mix more consumption-oriented. Early signs suggest AI agents can reactivate existing customers that had not expanded for years, but tighter customer budget discipline and organizational resistance will affect subsequent conversion speed.

Analysis framework

The report uses a conference note and management interview format, conducting qualitative analysis around product strategy, pricing mechanisms, changes in customer behavior, and the AI adoption curve, while combining J.P. Morgan’s existing rating history, current share price, and target price to form its investment view.

Methodology notes

• Company Fundamental AnalysisManagement Conference Notes

  Identify strategic changes and early operating signals through discussions with company management

  The report primarily relies on management’s descriptions at the TMC conference of AI strategy, pricing models, and customer adoption behavior to assess Monday.com’s future growth drivers.

• Technology Adoption AnalysisS-Curve

  AI adoption is still in the early stage

  Management believes the market has just completed the first 12 months of native AI buying. After the early FOMO-driven purchasing phase, customers are now shifting toward budget control, immediate value, and ease of use.

• Business Model AnalysisSeat + Credit Hybrid Pricing

  Combine subscription seats with AI consumption credits

  New customers must adopt the seat + credit model, with credits usable across different AI products. This is expected to be incremental to seat revenue in the near term, while the long-term revenue mix may become more consumption-oriented.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• MNDY.US

  Directly covered name

  Strengths

  Fully committed to AI, launched a seat + credit hybrid pricing model, early customer expansion signals are positive, and its positioning is shifting from a tool platform to helping customers get work done.

  Weaknesses

  The AI revenue model is still early, the real scale-up effect has not yet been validated, and customers are beginning to manage AI spending budgets more tightly.

  Comparison

  Among the software companies covered by J.P. Morgan, MNDY is maintained at Overweight; the report highlights its differentiated expansion potential from AI agents and hybrid pricing.

  Risks

  Organizational resistance, insufficient AI value realization, volatility in consumption-based revenue, tighter customer budgets, and intensifying competition.

Key data

• RatingOverweightIn J.P. Morgan’s rating system, Overweight corresponds to the buy category.
• Current Price$78.04The report lists the price date as 18May26.
• Latest Visible Target Price$90The rating history table shows an OW record on 09-Feb-26 with a target price of $90.
• Conference Context54th Annual TMC ConferenceThe conference was held in Boston, MA, and attending management included Roy Mann and Eliran Glazer.
• AI Pricing Model Launch TimeAbout 2 weeksManagement said the new seat + credit model was launched about two weeks ago and has already shown early positive cases.

Impact & implications

If Monday.com’s new AI agents and credit model can continue to drive re-expansion among customers that had not grown for years, the company may achieve incremental revenue beyond traditional seat growth and improve its long-term growth narrative. At the same time, increasingly granular customer control over AI budgets and organizational resistance at the employee level mean that AI monetization will not be linear, and future monitoring should focus on adoption rates, consumption retention, and evidence of customer ROI.

Risks

• AI adoption is still early, and short-term positive cases may not represent broader customer behavior.
• After FOMO-driven purchasing, customers are beginning to actively manage AI costs, which could slow consumption expansion.
• Management believes the biggest bottleneck in the next phase may come from employee and organizational resistance rather than technical capability.
• J.P. Morgan disclosed market-making, client relationships, potential investment banking compensation, and non-investment banking compensation relationships with Monday.com.

What to watch

• Adoption and renewal performance of the new seat + credit pricing model among new customers.
• Whether existing customers expand seat counts, products, or credit usage because of AI agent adoption.
• The near-term incremental contribution of AI revenue relative to seat revenue.
• Customer feedback on AI budget visibility, cost control, and immediate value.
• Whether organizational resistance affects the speed of AI product deployment and enterprise-scale expansion.