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]

ON24 (ONTF) Q4 2024 Earnings Call February 25, 2025 05:00 PM ET Company Participants Sayo Denloye - Investor RelationsSharat Sharan - Founder, CEO, President & ChairSteve Vattuone - CFONoah Herman - VP - Equity ResearchIan Black - Equity Research Associate Operator Greetings. Welcome to ON24 Fourth Quarter twenty twenty four Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is ...

Exhibit 99.1 ON24 Announces Fourth Quarter and Full Year 2024 Financial Results SAN FRANCISCO--(BUSINESS WIRE)--ON24 (NYSE: ONTF), a leading intelligent engagement platform for B2B sales and marketing, today announced financial results for the fourth quarter and full year ended December 31, 2024. "Our fourth quarter results marked the end of a year in which we improved our retention rates, executed on our product innovation roadmap, consistently exceeded our profitability targets, and laid the foundation fo ...

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 ...

Financial Data and Key Metrics Changes - Q3 revenue from the core platform, including services, was $35.6 million, while total revenue, including Virtual Conference, was $36.3 million [9][44] - Subscription and other platform revenue totaled $33.9 million, and professional services revenue was $2.5 million [9][45] - The company achieved its sixth consecutive quarter of adjusted EBITDA profitability and third consecutive quarter of positive free cash flow generation [10][38] - Core platform ARR at the end of Q3 was $129.7 million, a decrease of approximately 1% from Q2, while total ARR, including Virtual Conference, was $132.2 million [11][48] - Gross margin improved by approximately 200 basis points year-to-date compared to the same period in 2023, reaching 77% in Q3 [15][53] Business Line Data and Key Metrics Changes - AI-powered ACE ARR performance reached a new high, contributing significantly to growth despite ongoing pressure on marketing budgets [12][64] - The percentage of new core ARR from returning customers (boomerang customers) was in the high single digits [30][48] - The number of customers with two or more products reached an all-time high, indicating strong cross-selling opportunities [50] Market Data and Key Metrics Changes - The life sciences vertical saw low single-digit sequential core ARR growth in Q3, highlighting its importance as a customer cohort [36] - The technology sector contributed to new business deals, with AI-powered ACE being a critical factor in purchasing decisions [25][90] Company Strategy and Development Direction - The company focuses on three strategic pillars: relentless platform innovation, targeting enterprise markets in regulated industries, and returning to growth while maintaining profitability [16][39] - The company is committed to enhancing its AI capabilities and leveraging first-party data for ongoing innovation [26][25] - The company aims to stabilize its ARR and return to growth, with a focus on improving sales execution and customer engagement [29][99] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about returning to growth in 2025, driven by stabilization in the installed base and increased customer win-backs [41][108] - The company expects to exit 2024 with positive adjusted EBITDA and EPS, while aiming for profitability across both metrics in 2025 [39][72] - Management acknowledged ongoing macroeconomic challenges but highlighted improvements in retention and customer engagement metrics [40][94] Other Important Information - The company ended Q3 with $188.8 million in cash and marketable securities, maintaining a strong balance sheet [59] - A new $25 million share repurchase program was announced, with $16.2 million utilized to date [60] Q&A Session Summary Question: Insights on customer win-backs and marketing spend trends - Management noted encouraging signs of customer win-backs, particularly from those who previously opted for cheaper solutions [81] - Marketing budgets have decreased significantly, but there are signs of stabilization and potential future investments in revenue-generating products [85] Question: Current state of the win-back pool and future expectations - Management expects continued momentum in win-backs as the market stabilizes, particularly from the technology sector [90] Question: Insights on downsell and churn metrics - Gross retention improved significantly, with a meaningful reduction in downsells and churn [92][95] Question: Changes in go-to-market strategy and leadership - The company is focusing on improving new business execution and has hired a new sales leader for North America to enhance performance [99][100] Question: Seasonality considerations for 2025 - Q1 is typically a seasonally softer quarter, but management expects revenue to increase from that point onward [104]

Table of Contents Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.0001 per share ONTF New York Stock Exchange 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, 2024 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition ...

Core Insights - ON24 reported $36.33 million in revenue for Q3 2024, a year-over-year decline of 7.4%, with an EPS of $0.02 compared to $0.03 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $35.55 million by 2.19%, while the EPS surprise was 100% against the consensus estimate of $0.01 [1] Financial Metrics - Annualized Recurring Revenue (ARR) stood at $132.20 million, slightly above the average estimate of $131.02 million from two analysts [3] - Revenue from Professional Services was $2.47 million, surpassing the estimated $2.44 million, but reflecting an 11.7% decline year-over-year [3] - Subscription and other platform revenue reached $33.86 million, exceeding the average estimate of $32.66 million, yet showing a 7.1% decrease compared to the previous year [3] Stock Performance - ON24 shares have increased by 9.1% over the past month, outperforming the Zacks S&P 500 composite, which rose by 3.2% [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

ON24 (ONTF) came out with quarterly earnings of $0.02 per share, beating the Zacks Consensus Estimate of $0.01 per share. This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 100%. A quarter ago, it was expected that this webcasting and video communications services provider would post earnings of $0.01 per share when it actually produced earnings of $0.03, delivering a surprise of 200%.Over the l ...