[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)

ON24 (ONTF) 2025 Conference Summary Company Overview - **Company**: ON24 - **Industry**: B2B Customer Engagement Platform for Sales and Marketing - **Core Products**: Webinar experiences, virtual events, multimedia hubs that generate first-party data [3][4] Key Points and Arguments Business Model and Market Position - ON24 focuses on generating first-party data to help companies convert prospects into customers and drive revenue growth [4][5] - The company serves multiple verticals including technology, financial services, and life sciences, with notable clients like Salesforce, Microsoft, and AbbVie [5][7] - ON24 is recognized as a leading pipeline-generating channel for major companies like ServiceNow, achieving a 200% increase in healthcare professional engagement for AbbVie [5][6] Financial Performance - Marketing budgets have decreased by 30-40% post-pandemic, impacting ON24's revenue as 80% comes from these budgets [23][24] - Despite challenges, ON24 reported the best gross retention in four years and a significant number of customer win-backs in Q1 [24][29] - The company is EBITDA profitable and expects to maintain positive free cash flow in 2025, with $181 million in cash and no debt [30][31] AI and Technological Advancements - AI is transforming marketing and sales, with ON24 focusing on hyper-personalization, multilingual capabilities, and automation through its AI-driven products [9][16][44] - Approximately 13% of customers have adopted AI capabilities, with a third actively using them [41][42] - The introduction of ON24 iQ aims to automate repetitive tasks and enhance content generation, allowing for campaigns in multiple languages [46][47] Customer Engagement and Retention - ON24 emphasizes the importance of first-party data and insights for customer engagement, which is crucial for driving business outcomes [8][25] - The company has seen a stabilization in its business, with improved gross retention rates and a focus on long-term agreements [29][36] - The competitive landscape includes collaboration tools that lack the specialized marketing capabilities of ON24, leading to customer returns from cheaper alternatives [69][70] Future Outlook - ON24 anticipates continued growth in ARR and improved performance in 2025, driven by new product offerings and a focus on customer success [58][61] - The company aims to expand its total addressable market by solving significant problems related to first-party data and engagement [78][79] Additional Important Insights - The company has launched a $50 million share repurchase program, indicating confidence in its valuation [30] - ON24's focus on enterprise-level solutions includes tailored AI products for larger clients, while also offering packages for smaller businesses [79][80] - The management is optimistic about the future, citing a strong balance sheet and a commitment to maintaining profitability while pursuing growth [75][76]

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]

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] - Gross margin in Q1 was 77%, consistent with previous quarters [29] - Operating loss for Q1 was $2.1 million, compared to an operating loss of $800,000 in the same period last year [32] 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 multiyear contracts increased to over 50% at the end of Q1 [26] - The average core ARR per customer was approximately $78,000, up slightly from year-end 2024 levels [27] - The contribution from customers with ARR over $100,000 remained consistent, representing about two-thirds of total ARR [27] Market Data and Key Metrics Changes - There was softness in the international and commercial business segments towards the end of Q1 due to increased macroeconomic uncertainty [26] - The company experienced the highest number of win backs from previous customers in the last five quarters [26] Company Strategy and Development Direction - The company is focusing on AI innovation, improved enterprise go-to-market execution, and maintaining positive cash flow [11][12] - A new global integrated marketing campaign called "Propel Forward" was launched to enhance demand and brand awareness [16] - The company aims to diversify its customer base beyond technology and manufacturing to include life sciences and financial services, which now represent a third of the business [72] 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 2025 and aims to deliver positive free cash flow [39] - Management expressed confidence in the company's long-term growth potential despite current market challenges [22] Other Important Information - A new $50 million share repurchase program was announced to enhance shareholder value [23][41] - The company has returned a total of $191 million to shareholders through various capital return programs [35] Q&A Session Summary Question: Insights on the decline in the $100k ARR cohort - Management noted that they are close to turning the metric positive, with a modest decline in the number of customers contributing over $100k in total ARR [45][46] Question: Softness towards the end of the quarter - Management indicated that while there are good signs in the business, macro uncertainty has increased, leading to a more conservative outlook for annual revenue guidance [51][52] Question: Marketing plans with the new CMO - The new CMO is focused on transforming the go-to-market strategy with an emphasis on outcome-driven actions and strong ROI stories [66][70] Question: Performance of different verticals - Management highlighted that life sciences and financial services are performing better in terms of retention and are now a significant part of the business [72]