ON24 (ONTF) 2025 Conference June 04, 2025 12:50 PM ET Speaker0 To Baird's global consumer and technology and services conference. I'm Rob Oliver. It's my pleasure to have the management of on 24 here, Sharat Sharan, who is the CEO, and Steve Bachwani, CFO. And we're gonna do a bit of an introductory presentation, Sharad, so we can kinda level set the room, and then we'll dig in with the fireside chat. And please don't hesitate if you have questions to send them to session5@rwbear.com, or just put your hand ...

Summary of ON24 (ONTF) Update / Briefing May 28, 2025 Industry Overview - The report focuses on the life sciences industry, particularly digital engagement benchmarks for healthcare practitioners (HCPs) including pharmaceutical and medical device companies [6][8]. Key Insights and Trends 1. **Increased Engagement**: - The average number of attendees for webinars increased by 22% year-over-year to approximately 211 [8]. - Total audience engagement per webinar for life sciences companies saw a 34% increase, indicating that audiences are more active and engaged than ever before [23]. - There was a 28% increase in certifications delivered during webinars, showcasing a shift towards real-time testing and certification [24]. 2. **Webinar Duration and Content**: - The average duration of webinars remains around 52 minutes, suggesting that audiences are willing to stay engaged for longer periods if the content is valuable [11]. - The evolution of digital events has led to more interactive experiences, with HCPs seeking opportunities to participate and engage rather than just passively consume information [13][15]. 3. **Personalization and Segmentation**: - Personalization in digital experiences has become crucial, with a threefold increase in demo requests when experiences are tailored to specific audience segments [44]. - The ability to segment audiences based on various criteria (e.g., specialty, engagement level) allows for customized content delivery, enhancing engagement [34][40]. 4. **On-Demand Content**: - Life sciences companies have achieved a 51% split between live and on-demand content consumption, indicating a shift towards on-demand viewing [49]. - On-demand webinars drive higher engagement than live experiences, with audiences actively participating by asking questions and downloading content [52][56]. 5. **Content Hubs**: - The rise of content hubs has been noted, where companies create bingeable portals for HCPs to access a variety of resources and webinars [57][58]. - Content hub conversions have increased significantly, with an 85% growth in total meeting bookings from these hubs [63]. 6. **AI Integration**: - AI is being integrated into digital engagement platforms, enhancing the ability to create content from webinars, including automated transcripts and promotional materials [74][80]. - There has been a 10x increase in automated transcript requests and a 6x increase in AI-generated content pieces, indicating a growing reliance on AI for content creation [80]. Additional Important Points - The importance of first-party data is emphasized, as it helps marketers understand HCPs' needs and preferences, ultimately improving engagement strategies [19][90]. - The report highlights the need for continuous improvement in digital engagement strategies to adapt to changing audience behaviors and preferences [8][92]. - There is no evidence of "webinar fatigue"; rather, audiences are showing increased interest in well-structured and engaging webinars [104]. This comprehensive analysis of the ON24 briefing provides valuable insights into the evolving landscape of digital engagement in the life sciences sector, highlighting the importance of interactivity, personalization, and the integration of technology to enhance audience engagement.

Core Points - Nyrstar NV has announced the date for its 2024 annual general shareholders' meeting, which will take place on 24 June 2025 at 11:00 a.m. CEST [1] - The meeting will be held in person, with no virtual attendance option available [2] - Detailed information regarding the meeting, including the agenda and proposed resolutions, is available on the company's website [2][3]

Financial Performance - Total revenue for Q1 2025 was $34.733 million, a decrease of 7% compared to $37.727 million in Q1 2024[17] - Subscription and other platform revenue was $32.301 million, down from $34.829 million year-over-year, representing a decline of 7%[17] - Net loss for Q1 2025 was $8.703 million, an improvement from a net loss of $10.703 million in Q1 2024, reflecting a reduction of approximately 19%[17] - Gross profit for Q1 2025 was $25.630 million, compared to $27.945 million in Q1 2024, indicating a decrease of 8%[17] - For the three months ended March 31, 2025, total revenue decreased to $34.7 million, down 7% from $37.7 million in the same period of 2024[34] - The net loss for the period was $8.7 million, an improvement from a net loss of $10.7 million in the prior year[26] - The Company reported a net loss of $8.70 million in Q1 2025, an improvement from a net loss of $10.70 million in Q1 2024[77][82] - Revenue for Q1 2025 was $34.73 million, a decrease from $37.73 million in Q1 2024[82] Expenses and Costs - Total operating expenses decreased to $36.096 million in Q1 2025 from $40.419 million in Q1 2024, a reduction of 11%[17] - The total stock-based compensation expense for Q1 2025 was $7.13 million, down from $10.34 million in Q1 2024[72] - The Company incurred restructuring costs of $782,000 in Q1 2025, compared to $1.18 million in Q1 2024[79] - The Company expects to incur additional restructuring costs of $0.5 million to $0.8 million in Q2 2025[80] Cash and Assets - Cash and cash equivalents increased to $26.786 million as of March 31, 2025, up from $14.933 million at the end of 2024[15] - Total assets decreased to $245.778 million as of March 31, 2025, down from $250.953 million at the end of 2024[15] - The company reported a significant increase in cash, cash equivalents, and restricted cash, ending the period with $26.9 million, up from $18.4 million at the end of the previous year[26] - The company experienced a decrease in accounts receivable, which amounted to $3.0 million, compared to $8.8 million in the previous year[26] Deferred Revenue and Obligations - Deferred revenue increased to $71.559 million as of March 31, 2025, compared to $66.687 million at the end of 2024, reflecting a growth of 7%[15] - The aggregate amount of transaction price allocated to remaining performance obligations was $126.9 million, with 75% expected to be recognized as revenue over the next 12 months[39] - Deferred revenue increased significantly to $4.9 million, compared to a decrease of $1.2 million in the same period last year[26] Equity and Stock - Total stockholders' equity decreased to $153.726 million as of March 31, 2025, down from $159.412 million at the end of 2024[15] - As of March 31, 2025, the company had 17,692,236 shares of common stock reserved for future issuance under its equity incentive plan and employee share purchase plan[63] - The Company completed a $75 million share repurchase program in February 2024 and approved a new $25 million program in March 2024[65][66] - In Q1 2025, the Company repurchased 708,488 shares at an average price of $6.34, totaling $4.5 million, compared to 702,620 shares at $7.50 for $5.3 million in Q1 2024[66] Marketable Securities - The company’s marketable securities totaled $154.2 million as of March 31, 2025, down from $167.8 million at the end of 2024[45] - As of March 31, 2025, the total marketable securities amounted to $154.195 million, with $123.762 million maturing in one year or less[47] - The company reported a gross unrealized loss of $50,000 on U.S. Treasury securities as of March 31, 2025, compared to a gross unrealized loss of $92,000 as of December 31, 2024[46] Liabilities - Accrued and other current liabilities decreased from $16.394 million as of December 31, 2024, to $13.541 million as of March 31, 2025[51] - The company has non-cancelable unrecognized purchase commitments totaling $3.279 million as of March 31, 2025, primarily related to software license fees and hosting services[57] Tax and Assessments - The Company recorded a provision for income taxes of $205,000 in Q1 2025, down from $495,000 in Q1 2024[74] - The company believes it is reasonably possible that a loss will result from sales and use tax assessments in the range of $0 to $0.5 million, with no accrual recorded as of March 31, 2025[59] Depreciation and Amortization - Depreciation and amortization expense for property and equipment was $1.2 million for the three months ended March 31, 2025, compared to $1.1 million for the same period in 2024[50] - Amortization of deferred contract acquisition costs was $3.6 million for the three months ended March 31, 2025, slightly down from $3.8 million in the same period of 2024[43] Credit Facilities - The company has a revolving line of credit with a maximum borrowing capacity of $25 million, which had not been drawn down as of March 31, 2025[54] - The prime referenced rate for the revolving credit facility was 7.50% as of March 31, 2025[55] Antidilutive Securities - The total antidilutive securities excluded from the diluted net loss per share calculation amounted to 11,297,047 in Q1 2025, down from 12,436,850 in Q1 2024[77]

Company Performance - ON24 reported a quarterly loss of $0.01 per share, better than the Zacks Consensus Estimate of a loss of $0.03, and compared to earnings of $0.02 per share a year ago, representing an earnings surprise of 66.67% [1] - The company posted revenues of $34.73 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.44%, but down from $37.73 million year-over-year [2] - Over the last four quarters, ON24 has exceeded consensus EPS estimates four times and topped consensus revenue estimates four times as well [2] Stock Performance - ON24 shares have declined approximately 27.6% since the beginning of the year, while the S&P 500 has decreased by 4.7% [3] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $35.23 million, and for the current fiscal year, it is $0.01 on revenues of $139.37 million [7] Industry Outlook - The Internet - Software industry, to which ON24 belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact ON24's stock performance [5]

ON24 (ONTF) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Company Participants Emily Greenstein - DirectorSharat Sharan - Founder, President, CEO & Chair of the BoardSteve Vattuone - CFORobert Morelli - Equity Research AssociateLuke Morison - Vice President, Equity ResearchAlinda Li - Equity Research Associate Operator Good day, everyone, and welcome to the ON24 Q1 twenty twenty five Conference Call. At this time, all participants are in a listen only mode. Later, you will have the opportunity to ask quest ...

Financial Data and Key Metrics Changes - Revenue from the core platform, including services, was $34.2 million, representing a decrease of 7% year-over-year [24] - Total revenue for Q1 was $34.7 million, with total subscription and other platform revenue at $32.3 million [24] - Annual Recurring Revenue (ARR) related to the core platform totaled $125.9 million, a decrease of approximately $1.4 million compared to Q4 of 2024 [25] - Positive free cash flow of $2.8 million for Q1, marking the fifth consecutive quarter of positive free cash flow [33] Business Line Data and Key Metrics Changes - Professional services revenue was $2.4 million, representing approximately 7% of total revenue [24] - The percentage of ARR in multi-year contracts increased to over 50% at the end of Q1 [26] - The average core ARR per customer was approximately $78,000, showing a slight increase from the end of 2024 [27] Market Data and Key Metrics Changes - The company experienced softness in international and commercial business segments towards the end of Q1 due to increased macroeconomic uncertainty [26] - The share of life sciences and financial services now represents a third of the business, indicating diversification from technology and manufacturing sectors [73] Company Strategy and Development Direction - The company is focusing on AI innovation, improved enterprise go-to-market execution, and maintaining positive cash flow [11][21] - A new global integrated marketing campaign called "Propel Forward" has been launched to enhance demand generation and brand awareness [15] - The company announced a new $50 million share repurchase program to enhance shareholder value [21][42] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased macroeconomic uncertainty and decided to take a more conservative approach to near-term revenue guidance [36] - The company expects to be adjusted EBITDA positive in Q2 and for the rest of 2025, with a focus on returning to ARR growth [40][41] - Management expressed confidence in the improvements made in go-to-market execution and customer retention [56] Other Important Information - The company has made significant strides in its go-to-market execution, including enhancements to its leadership team [20] - The gross margin in Q1 was 77%, consistent with previous quarters [29] - The company is committed to generating double-digit EBITDA margins in the long term [42] Q&A Session Summary Question: Insights on the 100k ARR cohort and customer retention - Management indicated they are close to turning the 100k ARR cohort positive, with a focus on enterprise customers [46][48] Question: Softness towards the end of the quarter and its impact on outlook - Management noted increased macro uncertainty and decided to adopt a more conservative approach to annual revenue guidance, particularly for the second half of the year [52][53] Question: Marketing strategies under the new CMO - The new CMO is focused on outcome-driven actions and enhancing demand generation through strong ROI stories [67][71] Question: Performance of different verticals regarding churn and down-sell - Life sciences and financial services are performing better in terms of retention and are now a significant part of the business, contributing to overall growth [73]

Investor Presentation May 2025 © 2025 ON24, Inc. | Confidential Legal Disclaimer This presentation contains "forward-looking statements" under applicable securities laws. Such statements can be identified by words such as: "outlook," "expect," "convert," "believe," "plan," "future," "may," "should," "will," and similar references to future periods. Forward-looking statements include express or implied statements regarding our expected financial and operating results, the execution of our capital return prog ...

Financial Performance - Total revenue for Q1 2025 was $34.7 million, with Core Platform revenue of $34.2 million[5] - Annual Recurring Revenue (ARR) reached $128.2 million as of March 31, 2025, with Core Platform ARR at $125.9 million[6] - GAAP net loss was $8.7 million, or $(0.21) per diluted share, an improvement from a net loss of $10.7 million, or $(0.26) per diluted share in Q1 2024[6] - Non-GAAP operating loss was $2.1 million, compared to a loss of $0.8 million in Q1 2024[6] - Total revenue for Q1 2025 was $34,733 million, a decrease of 7% from $37,727 million in Q1 2024[29] - Gross profit for Q1 2025 was $25,630 million, down from $27,945 million in Q1 2024, resulting in a gross margin of 74%[35] - Net loss for Q1 2025 was $8,703 million, an improvement from a net loss of $10,703 million in Q1 2024, with net loss per share decreasing from $(0.26) to $(0.21)[29] - Non-GAAP net loss income for the same period was $(0.358) million, a significant improvement from a non-GAAP net income of $0.953 million in 2024, with a non-GAAP basic and diluted net loss per share of $(0.01) compared to $0.02 in 2024[42] - Total revenue for the three months ended March 31, 2025, was $34.733 million, down from $37.727 million in 2024, with core platform revenue at $34.152 million compared to $36.815 million in the prior year[46] Cash Flow and Expenses - Free cash flow for the quarter was $1.9 million, up from $1.1 million in Q1 2024[6] - Cash provided by operating activities increased to $3,412 million in Q1 2025 from $2,138 million in Q1 2024[33] - Total operating expenses decreased to $36,096 million in Q1 2025 from $40,419 million in Q1 2024[29] - Total stock-based compensation expense for Q1 2025 was $7,130 million, down from $10,337 million in Q1 2024[34] - Stock-based compensation expenses were $7.130 million in Q1 2025, down from $10.337 million in the same period of 2024[42] - The company incurred restructuring costs of $0.782 million in Q1 2025, compared to $1.181 million in Q1 2024[42] - Restructuring costs for Q1 2025 were $782 million, down from $1,181 million in Q1 2024[30] Future Projections - ON24 expects total revenue for Q2 2025 to be in the range of $34.5 million to $35.1 million[13] - For the full year 2025, total revenue is projected to be between $136.0 million and $139.0 million[13] Product and Market Position - The company introduced ON24 IQ intelligent agents to enhance its AI-powered Analytics and Content Engine, aiming to improve customer engagement[13] - ON24 ranked 1 in Enterprise Webinar Platforms in the G2 Spring 2025 Report, reflecting strong market presence and customer satisfaction[13] Revenue Breakdown - Subscription and other platform revenue decreased to $32.301 million in Q1 2025 from $34.829 million in Q1 2024, while professional services revenue also declined to $2.432 million from $2.898 million[46] - The company reported a decrease in total virtual conference revenue to $0.581 million in Q1 2025 from $0.912 million in Q1 2024[46] Shareholder Actions - The company announced a new $50 million share repurchase program, indicating belief in the undervaluation of the business[3]

Customer Base and Market Presence - As of December 31, 2024, the company had 1,645 customers, with no single customer contributing more than 10% of total revenue for the years ended December 31, 2024, 2023, and 2022[19]. - As of December 31, 2024, the company had 1,645 customers across various verticals, including technology, manufacturing, life sciences, financial services, and professional services[30]. - As of December 31, 2024, approximately 22% of the Fortune 500 are ON24 customers, indicating strong market penetration[61]. - 23% of the company's revenue in 2024 was generated from customers outside the United States, indicating a significant international presence[120]. Product and Technology - The company’s intelligent engagement platform is designed to capture and act on connected insights at scale, enabling businesses to convert customer engagement into revenue[26]. - The platform includes ON24 AI-powered ACE, which enables hyper-personalization at scale and uses generative AI to create content and videos for ongoing nurture streams[28]. - The ON24 Engagement Hub provides a rich multimedia content experience that prospective customers can engage with anytime, enhancing customer interaction[28]. - The platform's analytics backbone, ON24 Intelligence, captures first-person data to power insights, benchmarking, and reporting, enhancing decision-making for clients[28]. - The platform's AI-powered ACE product helps customers create hyper-personalized experiences and automatically generate content, enhancing engagement and analytics capabilities[51]. - The platform enables businesses to repurpose live experience content into new written and video formats using generative AI, maximizing return on investment[30]. - The cloud-based platform supports over 20 languages and is designed for enterprise-grade scalability, allowing multinational organizations to engage customers across different regions[30]. Business Strategy and Growth - The company aims to drive new customer acquisition in underpenetrated markets through specialized sales teams focused on Enterprise and Commercial sectors[32]. - The company plans to expand within existing customers by selling additional subscriptions and upselling new solutions, leveraging a land and expand model[32]. - The company intends to pursue inorganic growth opportunities by evaluating and acquiring complementary businesses and technologies to enhance its platform[32]. - ON24's go-to-market strategy includes expanding into new geographies to drive international growth, indicating a focus on market expansion[63]. - The sales organization is segmented by employee headcounts, focusing on both Enterprise and Commercial customers to execute a land and expand strategy[62]. Financial Performance - Revenue decreased by 10% in 2024 compared to 2023, following a significant growth of 30% in 2021 compared to 2020[87]. - The company has observed declines in revenue across every quarter of 2024 compared to the same periods in 2023[89]. - There has been a decrease in new subscriptions and renewals, leading to a decline in cash and deferred revenue[89]. - The company reported a net loss of $42.2 million in 2024 and $51.8 million in 2023, indicating ongoing financial challenges[100]. - The company recognizes revenue from subscriptions over the terms of the subscriptions, which can delay the impact of new sales on reported revenue[123]. Market Challenges and Competition - The company faces intense competition from larger firms such as Zoom, Microsoft, and Cisco, which may impact market share and pricing strategies[93]. - Economic conditions, including inflation and geopolitical developments, have negatively affected customers' marketing budgets, impacting revenue[95]. - A decline in demand for live engagement technologies could harm the company's revenue and growth prospects[98]. - The company relies heavily on subscription renewals, which may fluctuate due to budget constraints and competitive pressures[91]. Operational Risks and Compliance - The company is exposed to risks from evolving privacy laws, which may impose new obligations and affect customer trust and data handling practices[149]. - The California Consumer Privacy Act (CCPA) and other state privacy laws impose significant requirements on the company and its customers, increasing compliance risks[150]. - The ongoing development of privacy laws globally creates uncertainty regarding their impact on the company's operations and customer relationships[151]. - Cybersecurity threats are increasing, and the company may face significant liabilities from data breaches or cyberattacks[106]. - The company has experienced service disruptions and performance issues due to various factors, including infrastructure changes and cyber incidents[114]. Human Resources and Talent Management - The company had 437 full-time employees as of December 31, 2024, with a focus on attracting and retaining diverse talent to drive innovation[80]. - Attracting and retaining qualified personnel is essential for executing the business strategy, with intense competition for skilled employees in the industry[132]. - The company faces challenges in hiring and retaining employees due to competition from larger firms offering better compensation packages, especially in the San Francisco Bay Area[133]. Intellectual Property and Legal Matters - The company has 27 issued patents and 11 pending patent applications as of December 31, 2024, reflecting its commitment to innovation and intellectual property protection[71]. - The company may face significant costs related to litigation and disputes over intellectual property rights, which could adversely affect its operations and financial condition[175]. - The company relies on a combination of patents, trade secrets, and confidentiality agreements to protect its intellectual property, but these measures may prove inadequate[178]. Financial and Tax Considerations - The company reported $128.9 million of U.S. federal net operating loss carryforwards available to reduce future taxable income, with $76.1 million carrying over indefinitely and limited to 80% of taxable income[190]. - The effective tax rate may fluctuate due to changes in the proportion of earnings and losses in countries with differing statutory tax rates[194]. - The company may face increased tax liabilities due to challenges from taxing authorities regarding its nexus and tax positions[192]. Stock and Market Dynamics - The trading price of the company's common stock has been volatile and may continue to fluctuate due to various external factors[198]. - Substantial future sales of shares by existing stockholders could depress the market price of the company's common stock[203]. - The company’s organizational documents may delay or prevent acquisitions, impacting stockholder opportunities[204].