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Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $34.6 million, with subscription and other platform revenue at $32 million, and professional services revenue at $2.6 million, representing approximately 8% of total revenue [19] - Total ARR at the end of Q3 was $124.5 million, with core platform ARR at $122.4 million [20] - Gross margin in Q3 was 76%, consistent with the year-to-date gross margin of 77% [24][27] - Operating loss for Q3 was $0.4 million, or a negative 1% operating margin, compared to a loss of $0.8 million and a negative 2% margin in the same period last year [25] Business Line Data and Key Metrics Changes - The average core ARR per customer reached over $80,000 at the end of Q3, with the percentage of ARR in multi-year contracts hitting an all-time high [20][42] - The percentage of customers using two or more products also reached an all-time high, with nearly one in five customers paying for AI solutions [21][22] Market Data and Key Metrics Changes - The company experienced deal slippage in Q3, particularly in the life sciences vertical, but expects improved ARR performance in Q4 [5][20] - The $100,000 and above customer cohort represented approximately two-thirds of total ARR, with a total customer count of 1,521 at the end of Q3 [23] Company Strategy and Development Direction - The company is focused on deploying AI tools to improve efficiency and streamline operations, targeting a reduction in sales and marketing expenses as a percentage of revenue [17][31] - A new partnership with LinkedIn aims to enhance event marketing capabilities, allowing seamless integration and audience reach [8][46] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q4, expecting significantly better ARR performance compared to Q3, driven by improved gross retention and AI penetration [32] - The company is evaluating indications of interest for a potential acquisition, with Goldman Sachs as its financial advisor [18] Other Important Information - The company generated positive free cash flow for the seventh consecutive quarter, with Q3 free cash flow at $2.7 million [26] - The company has a strong balance sheet with approximately $175 million in cash and investments at the end of Q3 [27] Q&A Session Summary Question: Insights on AI solutions uptake - Management noted that nearly 20% of customers are paying for AI solutions, with expectations for continued growth in this area [33][34] Question: Components of go-to-market efficiency - The company has streamlined its go-to-market organization, reducing sales and marketing spending significantly while focusing on high-growth potential areas [39] Question: Deal slippage from Q3 to Q4 - Management indicated that deal slippage was primarily due to a lack of urgency in closing new business deals, with many already closed in Q4 [41] Question: Monetization opportunities from LinkedIn partnership - The partnership with LinkedIn is expected to enhance customer retention and provide monetizable opportunities through audience targeting [46][47] Question: AI search discoverability agenda - The company is focused on making content discoverable by LLMs, enhancing the indexing of webinars and derivative content [48][49]

Investor Presentation November 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 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to _____ Commission File Number: 001-39965 ON24, INC. (Exact name of registrant as specified in its charter) Delaware 94-3292599 (S ...

Exhibit 99.1 1 • Achieved total revenue of $34.6 million • Raising FY2025 revenue and bottom-line guidance • Building next generation of event marketing with LinkedIn collaboration • Seventh consecutive quarter of positive operating and free cash flow • Revenue: ◦ Total revenue was $34.6 million. ◦ Revenue from our Core Platform, including services, was $34.0 million. • ARR: ◦ Total ARR of $124.5 million as of September 30, 2025. ◦ Core Platform ARR of $122.4 million as of September 30, 2025. • GAAP Operati ...

Digital engagement platform ON24 (NYSE:ONTF) will be reporting earnings this Monday after market hours. Here’s what to look for. ON24 beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $35.33 million, down 5.4% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates. Is ON24 a buy or sell going into earnings? Read our full analysis here, it’s free for active ...

[Front Matter](index=1&type=section&id=Front%20Matter) - Company Name: **ON24, INC.**[2](index=2&type=chunk) - Report Type: **10-Q Quarterly Report**[1](index=1&type=chunk)[2](index=2&type=chunk) - Report Quarter End Date: **June 30, 2025**[2](index=2&type=chunk) - Stock Ticker: **ONTF (New York Stock Exchange)**[4](index=4&type=chunk) - As of July 31, 2025, the number of common shares outstanding was **42,306,290**[5](index=5&type=chunk) [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=3&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This report contains forward-looking statements based on management's beliefs and current information, primarily found in the "Risk Factors" and "Management's Discussion and Analysis" sections, which involve known and unknown risks and uncertainties that could cause actual results to differ materially from expectations, with no obligation to update these statements except as required by law - Forward-looking statements address the company's ability to grow revenue, performance fluctuations, attract new customers, market competition, macroeconomic conditions, cybersecurity risks, and intellectual property[13](index=13&type=chunk) - The report warns investors not to place undue reliance on these forward-looking statements, as actual future results may differ materially from expectations[11](index=11&type=chunk) [PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section provides ON24's unaudited condensed consolidated financial statements as of June 30, 2025, including balance sheets, statements of operations, comprehensive loss, changes in stockholders' equity, and cash flows, along with related notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, the company's total assets were $235.1 million, a decrease from $250.95 million at the end of 2024, with total liabilities decreasing from $91.54 million to $85.10 million, and stockholders' equity decreasing from $159.41 million to $150.02 million, while cash and cash equivalents significantly increased to $37.73 million Balance Sheet Key Data (in thousands of dollars) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $37,732 | $14,933 | | Total current assets | $214,868 | $228,330 | | **Total assets** | **$235,116** | **$250,953** | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $82,128 | $88,199 | | **Total liabilities** | **$85,099** | **$91,541** | | **Total stockholders' equity** | **$150,017** | **$159,412** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company's total revenue for Q2 and H1 2025 was $35.33 million and $70.07 million, respectively, both lower than the prior year's $37.35 million and $75.08 million, while net loss narrowed to $7.28 million in Q2 (vs. $11.18 million prior year) and $15.98 million in H1 (vs. $21.88 million prior year) Operating Performance Comparison (in thousands of dollars, except per share amounts) | Metric | 2025 Q2 | 2024 Q2 | 2025 H1 | 2024 H1 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $35,333 | $37,349 | $70,066 | $75,076 | | Gross profit | $26,532 | $27,811 | $52,162 | $55,756 | | Operating loss | $(9,172) | $(13,059) | $(19,638) | $(25,533) | | **Net loss** | **$(7,277)** | **$(11,175)** | **$(15,980)** | **$(21,878)** | | Net loss per share (basic and diluted) | $(0.17) | $(0.27) | $(0.38) | $(0.53) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In the first half of 2025, net cash provided by operating activities improved to $5.98 million from $3.53 million in the prior year, investing activities provided $24.73 million primarily due to reduced purchases and maturities of marketable securities, and financing activities used $8.10 million, mainly for stock repurchases Cash Flow Summary (for the six months ended June 30, in thousands of dollars) | Item | 2025 | 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $5,979 | $3,526 | | Net cash from investing activities | $24,733 | $(31,941) | | Net cash from financing activities | $(8,099) | $(9,114) | | Net increase (decrease) in cash and equivalents | $22,806 | $(37,726) | [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20%28Unaudited%29) The notes detail the company's accounting policies, revenue recognition, contract balances, equity compensation, legal proceedings, and restructuring activities, highlighting total remaining performance obligations of **$131.2 million** as of June 30, 2025, a **$50 million** stock repurchase program approved by the board, and workforce reductions for cost structure optimization - As of June 30, 2025, the company's total remaining performance obligations (RPO) amounted to **$131.2 million**, with **72%** expected to be recognized as revenue within the next 12 months[40](index=40&type=chunk) - In May 2025, the Board of Directors approved a **$50 million** stock repurchase program, with **$45.7 million** remaining available for future repurchases as of June 30, 2025[67](index=67&type=chunk)[69](index=69&type=chunk) - In the first half of 2025, the company continued workforce reductions to lower its cost structure, incurring **$1.506 million** in restructuring costs, primarily for severance and one-time termination benefits[87](index=87&type=chunk) - The company faces a securities class action lawsuit regarding its IPO, which was dismissed by the trial court but appealed by the plaintiffs, with the company believing the allegations lack merit but unable to reasonably estimate potential losses[62](index=62&type=chunk) [Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's business overview, performance drivers, key business metrics, and operating results, noting a **7%** year-over-year revenue decline to **$70.07 million** in the first half of 2025 but a narrowed net loss, with key metrics showing declining customer count and Annual Recurring Revenue (ARR), as the company addresses challenges through cost management, product innovation (e.g., AI-driven ACE and ON24 IQ), and prudent expense control [Overview and Key Factors](index=25&type=section&id=Overview%20and%20Key%20Factors) The company provides a cloud-based intelligent engagement platform for sales and marketing, with recent performance influenced by cost management, new customer acquisition, existing customer retention and expansion, platform innovation (especially AI capabilities), and international expansion, having launched new products like ON24 Lumina and ON24 IQ to enhance competitiveness - The company focuses on reducing net loss through cost management and continued workforce reductions in the first half of 2025[108](index=108&type=chunk) - The company plans to drive growth through continuous product innovation, including the launch of AI-driven ACE, the Lumina design system, and ON24 IQ intelligent agents[103](index=103&type=chunk)[104](index=104&type=chunk)[105](index=105&type=chunk)[112](index=112&type=chunk) - As of June 30, 2025, the company had **1,566** customers[106](index=106&type=chunk) [Key Business Metrics](index=28&type=section&id=Key%20Business%20Metrics) As of June 30, 2025, the company's total customer count was **1,566** and Annual Recurring Revenue (ARR) was **$127.1 million**, both declining from prior periods, with the customer count decrease primarily due to a net reduction in small and medium-sized business (SMB) customers, and ARR decline attributed to customer churn and reduced new customer acquisition Key Business Metrics Trends (amounts in thousands of dollars) | Metric | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Customer count | 1,566 | 1,645 | 1,682 | | Annual Recurring Revenue (ARR) | $127,135 | $129,659 | $133,702 | | Core Platform ARR | $125,084 | $127,341 | $131,032 | | Customers contributing over $100K ARR | 304 | 305 | 319 | - The decline in customer count is primarily due to a net reduction in SMB customers, reflecting marketing budget pressures in some organizations[115](index=115&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) Total revenue for the first half of 2025 decreased **7%** year-over-year to **$70.07 million**, mainly due to reduced subscription and platform revenue, while gross margin remained stable at **74%**, and all operating expenses (sales & marketing, R&D, G&A) decreased year-over-year due to lower personnel-related costs and stock-based compensation, leading to a narrowed operating and net loss - Total revenue decreased **7%** in the first half of 2025, primarily due to a reduction in subscription revenue driven by fewer customers and lower ARR[123](index=123&type=chunk)[124](index=124&type=chunk) - Sales and marketing expenses decreased **10%** year-over-year in the first half of 2025, mainly due to reduced personnel-related costs from restructuring activities[130](index=130&type=chunk) - Research and development expenses decreased **8%** year-over-year in the first half of 2025, primarily due to lower stock-based compensation expense[132](index=132&type=chunk) - General and administrative expenses decreased **18%** year-over-year in the first half of 2025, primarily due to a **$3.6 million** reduction in stock-based compensation expense[136](index=136&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company held **$179.6 million** in cash, cash equivalents, and marketable securities, deeming its existing liquidity sufficient to meet needs for at least the next 12 months, having initiated a **$50 million** stock repurchase program in May 2025, and generating **$6 million** in net cash flow from operating activities in the first half, an improvement from the prior year - As of June 30, 2025, the company held **$179.6 million** in cash, cash equivalents, and marketable securities[141](index=141&type=chunk) - In the first half of 2025, the company spent **$8.8 million** on stock repurchases, with **$43.2 million** remaining available under the new **$50 million** repurchase program as of August 8, 2025[142](index=142&type=chunk) - The company's revolving credit facility with Comerica Bank was amended in August 2024, reducing the limit from **$50 million** to **$25 million**, and remained unused as of the reporting period end[154](index=154&type=chunk) [Item 3 Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's market risks primarily stem from foreign currency exchange rates and interest rate fluctuations, with limited foreign exchange exposure due to most revenue being USD-denominated, and interest rate risk mainly impacting its investment portfolio, which is managed by investing in high-quality, highly liquid securities, with a sensitivity analysis provided for interest rate changes on marketable securities' fair value - The company's market risks have not significantly changed since the 2024 annual report, primarily consisting of foreign exchange and interest rate risks[159](index=159&type=chunk) Interest Rate Risk Sensitivity Analysis (as of June 30, 2025, in thousands of dollars) | Parallel Shift in Interest Rates | Assumed Fair Value | | :--- | :--- | | -150 BPS | $143,213 | | -100 BPS | $142,751 | | -50 BPS | $142,290 | | **Current Fair Value** | **$141,828** | | +50 BPS | $141,366 | | +100 BPS | $140,905 | | +150 BPS | $140,443 | [Item 4 Controls and Procedures](index=40&type=section&id=Item%204%20Controls%20and%20Procedures) Management, including the Chief Executive Officer and Chief Financial Officer, assessed the effectiveness of disclosure controls and procedures as of June 30, 2025, concluding they were effective at a reasonable assurance level, with no significant changes in internal control over financial reporting during the quarter - The company's CEO and CFO concluded that the disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2025[164](index=164&type=chunk) - There were no material changes to the company's internal control over financial reporting during the three months ended June 30, 2025[165](index=165&type=chunk) [PART II OTHER INFORMATION](index=40&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=40&type=section&id=Item%201.%20Legal%20Proceedings) The company, its officers, and IPO underwriters are defendants in a securities class action lawsuit concerning its IPO, alleging material misstatements or omissions in the registration statement and prospectus, which was dismissed by the district court in March 2024 but appealed by the plaintiffs, with the company believing the allegations are without merit - The company is facing a securities class action lawsuit regarding its IPO, alleging material misstatements in its prospectus[166](index=166&type=chunk) - Although the trial court dismissed the lawsuit in March 2024, the plaintiffs have appealed, and the litigation remains ongoing[166](index=166&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section details significant risks associated with investing in the company's common stock, including business and industry risks (e.g., revenue decline, intense competition, macroeconomic impacts, technological changes, cybersecurity threats), legal and compliance risks (e.g., privacy laws, export controls, intellectual property disputes), and risks related to stock ownership (e.g., price volatility, equity concentration, anti-takeover provisions) [Risks Related to Our Business and Our Industry](index=41&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Our%20Industry) The company faces multiple business and industry risks, including recent revenue declines and uncertain future growth, intense market competition, adverse macroeconomic conditions potentially reducing customer marketing spend, reliance on and risks associated with new technologies like AI, and threats from cybersecurity attacks and data breaches, in addition to dependence on third-party infrastructure where service interruptions or performance issues could harm the business - The company's revenue has declined in recent years, and future growth is uncertain due to factors like reduced customer budgets and increased market competition[171](index=171&type=chunk) - Market competition is intense, with competitors including Zoom, Microsoft, and Cisco, who may offer lower-priced or broader products[179](index=179&type=chunk) - Cybersecurity attacks and data breaches pose significant risks, potentially leading to regulatory actions, litigation, and reputational damage, as exemplified by a ransomware incident in June 2021[192](index=192&type=chunk) - The company's increasing use of artificial intelligence (AI) in its platform introduces new risks such as data errors, infringement, and algorithmic flaws[188](index=188&type=chunk) [Risks Related to Legal, Regulatory, and Intellectual Property](index=54&type=section&id=Risks%20Related%20to%20Legal%2C%20Regulatory%2C%20and%20Intellectual%20Property) The company faces risks from a complex global legal and regulatory environment, including challenges in complying with evolving privacy laws (e.g., GDPR and CCPA) that may restrict data processing and marketing activities, adherence to US and other countries' export controls and sanctions laws, and significant risks from intellectual property infringement claims and difficulties in protecting its own intellectual property - The company's operations are subject to strict and evolving global data privacy laws, such as GDPR and CCPA, with non-compliance potentially leading to substantial fines and business restrictions[233](index=233&type=chunk)[239](index=239&type=chunk) - As an international company, its business is restricted by US and other countries' export controls, economic sanctions, and anti-corruption laws like the FCPA, with violations leading to severe consequences[246](index=246&type=chunk)[257](index=257&type=chunk) - The company may face intellectual property infringement lawsuits from third parties or encounter difficulties in protecting its own patents, trademarks, and trade secrets, which could harm its brand and competitiveness[264](index=264&type=chunk)[268](index=268&type=chunk) [Risks Related to Ownership of Our Common Stock](index=65&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Common%20Stock) Investing in the company's common stock carries multiple risks, including that stock repurchase programs may not enhance long-term shareholder value and consume cash, share price can fluctuate significantly due to market factors, performance changes, and analyst ratings, high equity concentration may limit retail shareholder influence, and anti-takeover provisions in the company's charter may deter potential changes in control - Stock repurchase programs, such as the **$50 million** plan approved in May 2025, consume cash reserves and may increase stock price volatility, not necessarily enhancing long-term shareholder value[286](index=286&type=chunk) - As of February 28, 2025, the company's executive officers, directors, and 5% or greater shareholders collectively controlled approximately **55%** of the shares, indicating high equity concentration[290](index=290&type=chunk) - The company's certificate of incorporation and Delaware law (e.g., Section 203) contain anti-takeover provisions that could delay or prevent third-party acquisitions, limiting shareholders' opportunities to receive a premium[292](index=292&type=chunk)[295](index=295&type=chunk) - The company reached an agreement with activist investor Indaba Capital Management L.P. to avoid a proxy contest at the 2026 annual meeting of stockholders[304](index=304&type=chunk) [Item 2 Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides details on the company's stock repurchase activities during the second quarter of 2025, disclosing the number of common shares repurchased, the average price per share, and the maximum amount remaining available for future repurchases under publicly announced plans Q2 2025 Stock Repurchase Summary | Period | Total Shares Repurchased | Average Price Per Share | Remaining Amount Under Plan | | :--- | :--- | :--- | :--- | | May 2025 | 387,261 | $5.45 | $47.9 million | | June 2025 | 406,685 | $5.50 | $45.7 million | | **Total** | **793,946** | **$5.48** | **$45.7 million** | - Repurchase activities were conducted under the **$50 million** 2025 repurchase program authorized by the Board of Directors in May 2025[313](index=313&type=chunk) [Item 5. Other Information](index=72&type=section&id=Item%205.%20Other%20Information) This section discloses that the company's Chief Executive Officer, Sharat Sharan, adopted a Rule 10b5-1 trading plan on May 14, 2025, which provides for the sale of a portion of net shares acquired upon option exercise and RSU/PSU vesting, subject to certain limitations, through February 28, 2026 - Company CEO Sharat Sharan adopted a Rule 10b5-1 trading plan on May 14, 2025, for the sale of shares acquired through equity awards[316](index=316&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $35.3 million, exceeding expectations, with total subscription and other platform revenue at $32.4 million and professional services revenue at $2.9 million, representing approximately 8% of total revenue [24][25] - Total ARR at the end of Q2 was $127.1 million, with core platform ARR at $125.1 million, showing positive momentum in the business [25][26] - Gross margin in Q2 was 77%, consistent with previous quarters, while operating loss was $900,000, compared to a loss of $300,000 in the same period last year [28][30] Business Line Data and Key Metrics Changes - The average core ARR per customer reached approximately $80,000, the highest reported, with five new customers added with over $100,000 in ARR [17][26] - The number of customers with ARR over $100,000 grew by five, representing about two-thirds of total ARR [26] - The percentage of ARR in multiyear agreements reached over 50%, the highest ever [27] Market Data and Key Metrics Changes - The company saw strong performance in enterprise segments, particularly in financial services and life sciences, with increased customer engagement and retention [44][45] - The regulated industries business, including financial services and life sciences, continued to grow, increasing as a percentage of total business [18] Company Strategy and Development Direction - The company is focusing on AI innovation and enhancing enterprise go-to-market execution, which has led to improved customer engagement and retention [7][16] - Strategic initiatives include moving from single digital events to omnichannel global campaigns, leveraging first-party data for personalized content [8][10] - The company aims to drive measurable business outcomes for customers through AI-powered solutions and enhanced analytics capabilities [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to ARR growth in Q4, driven by improved retention and growth bookings [50] - The overall market environment shows mixed trends, with some segments focusing on growth initiatives while others remain challenged [44] - The company expects to deliver positive adjusted EBITDA and free cash flow for 2025, with a focus on AI-driven innovation [38][36] Other Important Information - The company has a strong balance sheet with nearly $180 million in cash and investments at the end of Q2 [33] - A $50 million share repurchase program was initiated, with $4.3 million utilized in Q2 [33][38] Q&A Session Summary Question: General market environment and buying trends - Management noted good enterprise new business performance and improved growth retention, with excitement around AI offerings, particularly in financial services and life sciences [41][44] Question: Pipeline heading into Q4 and confidence around ARR strength - Management highlighted strong pipeline generation in Q2 and expressed confidence in achieving ARR growth in Q4, supported by improvements in gross retention and new business performance [46][50] Question: Driving greater penetration within enterprise customers - Management indicated that the growth in customers with over $100,000 in ARR was driven by improved enterprise execution and increased adoption of AI-powered solutions [52][54]

ON24 Intelligent Engagement Platform Overview - ON24 offers an Intelligent Engagement Platform for sales and marketing, leveraging first-party data and AI for personalization[7, 10] - The platform aims to transform digital engagement, aligning with the trend that almost 80% of B2B sales interactions will occur in digital channels by 2025[16] - The platform provides tangible ROI to customers, including a 20% increase in meetings and a 40% increase in sales conversion to meetings[14, 15] - The platform captures an average of 20+ data points per attendee during live experiences[26] - The platform boasts over 1 billion annual engagement minutes and reaches over 2 million professionals per month[27] Financial and Customer Metrics - ON24 has $127.1 million in Total ARR and has maintained positive free cash flow for the past 6 quarters[8] - 77% of ON24's customers have ARR greater than $100K[8] - 51% of ARR is from multi-year agreements, and 66% of ARR comes from customers with ARR greater than $100K[8] - 39% of customers use 2+ products[8] - The company estimates a large Total Addressable Market (TAM) of $42 billion[8]

[Financial Highlights and Business Update](index=1&type=section&id=Financial%20Highlights%20and%20Business%20Update) ON24 reported Q2 2025 results that surpassed expectations, with total revenue of $35.3 million, achieving its sixth consecutive quarter of positive operating and free cash flow, marked by the highest gross retention rate in four years and growth in its enterprise customer base - CEO Sharat Sharan highlighted that Q2 results exceeded expectations, with improvements across key financial and customer metrics compared to the first half of the previous year, positioning the company for ARR growth by year-end[3](index=3&type=chunk) Q2 2025 Financial Highlights vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Revenue** | $35.3 million | $37.3 million | | **Total ARR** | $127.1 million | N/A | | **GAAP Operating Loss** | $(9.2) million | $(13.1) million | | **Non-GAAP Operating Loss** | $(0.9) million | $(0.3) million | | **GAAP Net Loss per Share** | $(0.17) | $(0.27) | | **Non-GAAP Net Income per Share** | $0.02 | $0.03 | | **Adjusted EBITDA** | $0.2 million | $0.8 million | | **Net Cash from Operating Activities** | $2.6 million | $1.4 million | | **Free Cash Flow** | $2.1 million | $0.9 million | - Recent business achievements in Q2 2025 include: - Growth in the customer base with over **$100K in ARR**, indicating traction in enterprise segments - Sequential ARR growth from regulated industries like financial services and life sciences - Increased adoption of AI-powered ACE solutions - Ranked **1 in the G2 Summer 2025 Report** for Enterprise Webinar Platforms - Launched ON24 Translate, a new multilingual translation tool[13](index=13&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) ON24 provided guidance for Q3 2025, expecting total revenue between $33.6 million and $34.2 million, and updated its full-year 2025 forecast to anticipate total revenue of $137.7 million to $138.7 million and non-GAAP net income per share of $0.02 to $0.05 Q3 2025 Financial Outlook | Metric | Guidance Range | | :--- | :--- | | **Total Revenue** | $33.6M - $34.2M | | **Core Platform Revenue** | $33.0M - $33.6M | | **Non-GAAP Operating Loss** | $(1.3)M - $(0.7)M | | **Non-GAAP Net Income per Share** | $0.00 - $0.02 | Full Year 2025 Financial Outlook | Metric | Guidance Range | | :--- | :--- | | **Total Revenue** | $137.7M - $138.7M | | **Core Platform Revenue** | $135.2M - $136.2M | | **Non-GAAP Operating Loss** | $(5.2)M - $(3.8)M | | **Non-GAAP Net Income per Share** | $0.02 - $0.05 | [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents the company's consolidated balance sheets, statements of operations, cash flows, and reconciliation of GAAP to non-GAAP financial measures [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, ON24 reported total assets of $235.1 million and total liabilities of $85.1 million, with cash, cash equivalents, and marketable securities totaling $179.6 million, a slight decrease from $182.7 million at the end of 2024 Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Cash, Cash Equivalents & Marketable Securities** | $179,560 | $182,736 | | **Total Assets** | $235,116 | $250,953 | | **Total Liabilities** | $85,099 | $91,541 | | **Total Stockholders' Equity** | $150,017 | $159,412 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, ON24 reported total revenue of $35.3 million, a decrease from $37.3 million in Q2 2024, successfully narrowing its GAAP net loss to $7.3 million from $11.2 million year-over-year, reflecting improved operational efficiency Statement of Operations Summary - Q2 (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total Revenue** | $35,333 | $37,349 | | **Gross Profit** | $26,532 | $27,811 | | **Loss from Operations** | $(9,172) | $(13,059) | | **Net Loss** | $(7,277) | $(11,175) | | **Net Loss per Share (Basic & Diluted)** | $(0.17) | $(0.27) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q2 2025, net cash provided by operating activities was $2.6 million, a significant improvement from $1.4 million in the prior-year period, with free cash flow for the quarter more than doubling to $2.1 million from $0.9 million generated in Q2 2024 Cash Flow Summary - Q2 (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | $2,567 | $1,388 | | **Purchases of Property and Equipment** | $(492) | $(490) | | **Free Cash Flow** | $2,075 | $898 | [Reconciliation of GAAP to Non-GAAP Results](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) The company provided detailed reconciliations for its non-GAAP metrics, reporting a Q2 2025 Non-GAAP operating loss of $0.9 million, Non-GAAP net income of $1.0 million ($0.02 per diluted share), and Adjusted EBITDA of $0.2 million, primarily excluding stock-based compensation and restructuring costs Reconciliation of GAAP Net Loss to Non-GAAP Net Income - Q2 (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net Loss (GAAP)** | $(7,277) | $(11,175) | | Stock-based compensation | $7,378 | $12,076 | | Restructuring costs | $724 | $501 | | Other adjustments | $151 | $138 | | **Non-GAAP Net Income** | $976 | $1,540 | Reconciliation of GAAP Net Loss to Adjusted EBITDA - Q2 (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Net Loss (GAAP)** | $(7,277) | $(11,175) | | Adjustments (Taxes, Interest, D&A, etc.) | $9,498 | $11,949 | | **Adjusted EBITDA** | $221 | $774 | [Revenue Breakdown](index=16&type=section&id=Revenue%20Breakdown) In Q2 2025, Core Platform revenue was $34.6 million, representing 97.9% of total revenue, while revenue from the legacy Virtual Conference product was $0.8 million, continuing its decline as the company focuses on core offerings Revenue Breakdown by Product - Q2 (in thousands) | Product Line | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | **Total Core Platform Revenue** | $34,580 | $36,485 | | **Total Virtual Conference Revenue** | $753 | $864 | | **Total Revenue** | $35,333 | $37,349 | [Supplementary Information](index=3&type=section&id=Supplementary%20Information) This section provides definitions for key business metrics and explains the company's use of non-GAAP financial measures [Definitions of Key Business Metrics](index=3&type=section&id=Definitions%20of%20Key%20Business%20Metrics) The report defines key metrics, including the "Core Platform," which encompasses a suite of products for live and on-demand digital engagement, and "Annual Recurring Revenue (ARR)," which represents the annualized value of subscription contracts and is a key indicator of future revenue - The ON24 Core Platform includes products such as ON24 Elite (webinars), ON24 Breakouts, ON24 Forums, ON24 Go Live, ON24 Engagement Hub, ON24 Target, and the ON24 AI-powered ACE engine[14](index=14&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) - Annual Recurring Revenue (ARR) is defined as the annualized value of subscription contracts as of the measurement date, excluding professional services and legacy revenue[16](index=16&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) ON24 utilizes non-GAAP financial measures such as non-GAAP operating income, non-GAAP net income, Adjusted EBITDA, and free cash flow to supplement its GAAP results, believing these metrics provide better consistency for comparing historical performance by excluding items like stock-based compensation, amortization, and restructuring costs - The company uses non-GAAP measures to evaluate ongoing operations and for internal planning, believing they are helpful to investors for consistency and comparability[18](index=18&type=chunk) - Non-GAAP measures are presented for supplemental purposes and have limitations, as they are not standardized under GAAP and may differ from how other companies calculate similar metrics[19](index=19&type=chunk)[20](index=20&type=chunk)