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 ...

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 ...