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].

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $36.7 million, a decrease of 6% year-over-year, while revenue from the core platform was $36 million [39][12] - ARR from the core platform at the end of Q4 was $127.3 million, a decrease of $2.3 million from Q3, while total ARR was $129.7 million [41][13] - Non-GAAP gross margin improved from 75% in 2023 to 77% in 2024, and adjusted EBITDA margin improved by almost 200 basis points [11][51] - Free cash flow for 2024 was positive $2.6 million, an improvement of $17 million compared to negative $14.4 million in 2023 [11][60] Business Line Data and Key Metrics Changes - The percentage of customers using two or more products reached an all-time high of 39% at the end of 2024 [48] - ARR from multi-year deals increased to 51%, up from 29% at the end of 2019 [47] - Professional services revenue in Q4 was $3.1 million, a decrease of 13% year-over-year [39] Market Data and Key Metrics Changes - The company noted improvements in gross retention rates, with Q4 showing the best retention levels in three years [78] - The dollar-based net retention rate for Enterprise customers was 91%, a mid-single-digit improvement from 2023 [44] Company Strategy and Development Direction - The company is focused on platform innovation, particularly with the AI-powered ACE product, which accounted for over 20% of growth ARR bookings in Q4 [8][15] - The strategy includes enhancing the go-to-market approach, particularly in regulated industries such as life sciences and financial services [24][27] - The company aims for double-digit top-line revenue growth and double-digit EBITDA margins in the long term [16][68] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the marketing budget environment, noting some green shoots in the technology vertical [80] - The company expects to return to positive ARR growth in 2025, driven by improvements in customer spending and the adoption of AI tools [64][34] - Management highlighted the importance of maintaining a profitable cost structure while pursuing growth initiatives [29][62] Other Important Information - The company ended Q4 with $182.7 million in cash and marketable securities, and a new $25 million share repurchase program was announced [57][58] - The company achieved positive adjusted EBITDA and non-GAAP EPS profitability for the seventh consecutive quarter [30][56] Q&A Session Summary Question: Overview of the marketing budget environment - Management noted that 2024 was a tough year for marketing budgets, but there are signs of stabilization and reinvestment in growth initiatives for 2025 [76][78] Question: Guidance on operating margins and expense structure - Management indicated a balanced approach to returning to growth while maintaining profitability, with selected investments in product innovation and go-to-market strategies [81][84] Question: Expectation of free cash flow positivity in 2025 - Management expects to be free cash flow positive in 2025, excluding any one-time or restructuring charges [88]

Financial Data and Key Metrics Changes - The company reported Q4 revenue from its core platform, including services, at $36 million, a decrease of 6% year-over-year, while total revenue, including Virtual Conference, was $36.7 million [39] - Total ARR at the end of Q4 was $129.7 million, with core platform ARR at $127.3 million, reflecting a decrease of approximately $2.3 million from Q3 [41] - Non-GAAP gross margin improved from 75% in 2023 to 77% in 2024, and adjusted EBITDA margin improved by almost 200 basis points year-over-year [11][51] Business Line Data and Key Metrics Changes - The percentage of customers using two or more products reached an all-time high of 39% at the end of 2024, up from 17% in 2019 [48] - ARR from multi-year deals increased to 51%, up over 20 points since the end of 2019 [47] - Professional services revenue was $3.1 million in Q4, a decrease of 13% year-over-year [40] Market Data and Key Metrics Changes - The company noted improvements in gross retention rates, with Q4 gross retention consistent with the highest levels seen in 2024, up by mid-single-digits from 2023 [44] - The dollar-based net retention (NRR) for Enterprise customers was 91%, a mid-single-digit improvement from 2023 [44] - The company observed stabilization in the marketing budget environment, with some green shoots in the technology vertical [78] Company Strategy and Development Direction - The company is focused on platform innovation, particularly through the AI-powered ACE product, which accounted for over 20% of growth ARR bookings in Q4 [8][20] - The strategic emphasis is on regulated industries and digital transformation use cases, with continued strength in life sciences and financial services [24] - The company aims to return to double-digit top-line revenue growth and double-digit EBITDA margins in the long term [16][68] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the marketing budget environment, noting that while 2024 was challenging, there are signs of recovery in 2025 [80] - The company expects to return to positive ARR growth in 2025, driven by improvements in customer retention and spending initiatives [64][66] - Management highlighted the importance of AI tools and innovations in driving future growth [33][61] Other Important Information - The company achieved positive free cash flow of $2.6 million in 2024, a significant improvement from negative $14.4 million in 2023 [60] - The company ended Q4 with $182.7 million in cash, cash equivalents, and marketable securities, maintaining a strong balance sheet [57] - A new $25 million share repurchase program was announced, with $23.6 million utilized to date [58] Q&A Session Summary Question: Overview of the marketing budget environment - Management noted that 2024 was one of the toughest years for marketing budgets, but there are signs of recovery in 2025, particularly in the technology vertical [76][78] Question: Guidance on operating margins and expense structure - Management indicated a balanced approach to returning to growth while maintaining profitability, with selected investments in product innovation and go-to-market strategies [81][84] Question: Expectation of free cash flow positivity in 2025 - Management expects to be free cash flow positive in 2025, aligning with EPS profitability [88]

Group 1: Earnings Performance - ON24 reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, representing an earnings surprise of 200% [1] - The company has surpassed consensus EPS estimates for four consecutive quarters [2] - Revenue for the quarter ended December 2024 was $36.68 million, surpassing the Zacks Consensus Estimate by 2.64%, although it decreased from $39.34 million year-over-year [2] Group 2: Stock Performance and Outlook - ON24 shares have declined approximately 5.7% since the beginning of the year, while the S&P 500 has gained 1.7% [3] - The future performance of ON24's stock will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $34.05 million, and $0.07 on revenues of $138.9 million for the current fiscal year [7] Group 3: Industry Context - The Internet - Software industry, to which ON24 belongs, is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable outlook [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 - In Q4 2024, revenue from the core platform, including services, was $36 million, representing a 6% year-over-year decrease [26] - Total revenue for Q4, including virtual conference products, was $36.7 million, with subscription and other platform revenue at $33.6 million and professional services revenue at $3.1 million, a 13% year-over-year decrease [26] - ARR from the core platform at the end of Q4 was $127.3 million, a decrease of $2.3 million from Q3, while total ARR was $129.7 million [9][27] - Non-GAAP gross margin improved from 75% in 2023 to 77% in 2024, and adjusted EBITDA margin improved by almost 200 basis points compared to 2023 [8][33] - Free cash flow for 2024 was positive $2.6 million, an improvement of $17 million from negative $14.4 million in 2023 [8][40] Business Line Data and Key Metrics Changes - The percentage of customers using two or more products reached an all-time high of close to 40% [7] - ARR from multi-year deals increased to 51%, up over 20 points since 2019 [31] - New business and expansion bookings in Q4 were the highest of the year, with AI-powered ACE contributing over 20% of growth ARR bookings [9][28] Market Data and Key Metrics Changes - The enterprise customer segment showed a net retention rate (NRR) of 91%, a mid-single-digit improvement over 2023 [29] - The ARR contribution from customers spending over $100,000 represented approximately two-thirds of total ARR [30] - The company noted continued strength in regulated verticals, particularly life sciences and financial services [16] Company Strategy and Development Direction - The company is focused on platform innovation, particularly through AI integration, to enhance digital engagement [11][12] - Strategic priorities include advancing the enterprise go-to-market strategy and enhancing customer success efforts in regulated industries [19] - The company aims for double-digit top-line revenue growth and double-digit EBITDA margins in the long term [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the marketing budget environment, noting some green shoots in the technology vertical [52][54] - The company expects to return to positive ARR growth in 2025, driven by improvements in gross retention and customer spending initiatives [21][42] - Management highlighted the importance of AI tools in driving growth and improving customer engagement [21][41] Other Important Information - The company ended Q4 with $182.7 million in cash, cash equivalents, and marketable securities [37] - A new $25 million share repurchase program was announced, with $23.6 million utilized to date [38][39] Q&A Session Summary Question: Overview of the marketing budget environment - Management noted that 2024 was a tough year for marketing budgets, but there are signs of improvement in 2025, particularly in technology [52][54] Question: Guidance on operating margins and expense structure - Management indicated a balanced approach to returning to growth while maintaining profitability, with selected investments in product innovation and go-to-market strategies [55][58] Question: Expectation of free cash flow positivity in 2025 - Management expects to be free cash flow positive in 2025, excluding any one-time or restructuring charges [61]

Financial Performance - Total revenue for Q4 2024 was $36.7 million, with Core Platform revenue of $36.0 million[5] - Annual Recurring Revenue (ARR) reached $129.7 million as of December 31, 2024, with Core Platform ARR at $127.3 million[6] - For the full year 2024, total revenue was $148.1 million, with Core Platform revenue of $144.9 million[10] - Total revenue for the three months ended December 31, 2024, was $36,680 thousand, a decrease of 6.7% from $39,337 thousand in the same period of 2023[31] - Subscription and other platform revenue for the twelve months ended December 31, 2024, was $136,412 thousand, down 9.0% from $149,882 thousand in 2023[31] - Total core platform revenue for the twelve months ended December 31, 2024, was $144.945 million, down from $158.099 million in 2023, a decrease of 8.3%[49] Net Income and Loss - GAAP net loss for Q4 2024 was $8.9 million, or $(0.21) per diluted share, an improvement from a net loss of $9.9 million, or $(0.24) per diluted share in Q4 2023[6] - Non-GAAP net income for Q4 2024 was $2.5 million, or $0.06 per diluted share, compared to $2.6 million, or $0.06 per diluted share in Q4 2023[6] - GAAP net loss for the full year 2024 was $42.2 million, or $(1.01) per diluted share, down from a net loss of $51.8 million, or $(1.16) per diluted share in 2023[10] - Net loss for the three months ended December 31, 2024, was $8,872 thousand, compared to a net loss of $9,875 thousand in the same period of 2023, indicating an improvement of 10.1%[31] - Non-GAAP net income for the three months ended December 31, 2024, was $2.549 million, slightly down from $2.563 million in 2023[45] Cash Flow and Expenses - Free cash flow for Q4 2024 was $0.4 million, compared to $(2.0) million in Q4 2023[6] - Cash provided by operating activities for Q4 2024 was $0.985 million, a significant recovery from cash used of $0.859 million in Q4 2023[35] - Total cash, cash equivalents, and restricted cash at the end of Q4 2024 was $15.013 million, down from $53.298 million at the end of Q4 2023[35] - The net cash used in financing activities for Q4 2024 was $6.523 million, a decrease from $15.457 million in Q4 2023[35] - The net cash provided by operating activities for the twelve months ended December 31, 2024, was $4.806 million, an improvement from a cash used of $12.202 million in 2023[47] Operating Expenses - Total operating expenses for the twelve months ended December 31, 2024, were $160,726 thousand, a reduction of 10.4% from $179,446 thousand in 2023[31] - Total sales and marketing expenses for Q4 2024 were $19.048 million, down from $20.645 million in Q4 2023, reflecting a 7.7% decrease[39] - Research and development expenses for the twelve months ended December 31, 2024, were $36,250 thousand, down 12.0% from $41,122 thousand in 2023[31] - Research and development expenses for Q4 2024 were $8.880 million, a slight decrease from $9.363 million in Q4 2023[39] - The company reported restructuring costs of $388 thousand for the three months ended December 31, 2024, compared to $573 thousand in the same period of 2023, a reduction of 32.3%[43] Assets and Liabilities - Cash and cash equivalents decreased significantly to $14,933 thousand as of December 31, 2024, from $53,209 thousand a year earlier[29] - Total assets decreased to $250,953 thousand as of December 31, 2024, down from $280,302 thousand in 2023, representing a decline of 10.4%[29] - Total liabilities decreased to $91,541 thousand as of December 31, 2024, from $100,085 thousand in 2023, a reduction of 8.5%[29] Future Outlook - The company expects total revenue for Q1 2025 to be in the range of $34.0 million to $34.5 million[17] - AI-powered ACE accounted for over 20% of growth ARR bookings in Q4 2024, marking an all-time high[5] - Multi-year contracts represented 51% of total ARR as of December 31, 2024[11]

NEW YORK, Jan. 30, 2025 /PRNewswire/ -- Kuehn Law, PLLC, a shareholder litigation law firm, is investigating whether certain officers and directors of ON24, Inc. (NYSE: ONTF) breached their fiduciary duties to shareholders.  The investigation concerns potential self-dealing. Shareholders may be entitled to damages and corporate governance reforms. If you are a long-term ONTF stockholder please contact Justin Kuehn, Esq. here, by email at [email protected], or  call (833) 672-0814.  The consultation and case ...