ON24 Announces Fourth Quarter and Full Year 2024 Financial Results

   -- 
 Achieved Q424 Total Revenue of $36.7 million 
 
 
   -- 
 Exceeded profitability targets for 7th consecutive quarter 
 
 
   -- 
 Generated positive operating and free cash flow for 4th consecutive 
      quarter 
 
 
   -- 
 AI-powered ACE accounted for over 20% of our growth ARR bookings in Q4, 
      an all-time high 
 
 
   -- 
 Exited 2024 with the highest levels of gross retention in the past 3 
      years 
 
SAN FRANCISCO--(BUSINESS WIRE)--February 25, 2025-- 

ON24 $(ONTF)$, 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 for a return to growth," said Sharat Sharan, co-founder and CEO of ON24. "We begin the year with renewed confidence in our business and a focus on returning to ARR growth in 2025. We expect to drive additional improvements in retention rates, positive momentum in our new and expansion business, continued customer winbacks, further product innovation, and positive cash flow."

Fourth Quarter 2024 Financial Highlights

   -- 
 Revenue: 
 
          -- 
 Revenue from our Core Platform, including services, was $36.0 
             million. 
 
 
          -- 
 Total revenue was $36.7 million. 
 
 
 
 
   -- 
 ARR: 
 
          -- 
 Core Platform ARR of $127.3 million as of December 31, 2024. 
 
 
          -- 
 Total ARR of $129.7 million as of December 31, 2024. 
 
 
 
 
   -- 
 GAAP Operating Loss was $11.8 million, compared to GAAP operating loss 
      of $12.2 million in the fourth quarter of 2023. 
 
 
   -- 
 Non-GAAP Operating Loss was $0.4 million, compared to non-GAAP 
      operating income of $0.2 million in the fourth quarter of 2023. 
 
 
   -- 
 GAAP Net Loss was $8.9 million, or $(0.21) per diluted share, compared 
      to GAAP net loss of $9.9 million, or $(0.24) per diluted share in the 
      fourth quarter of 2023. 
 
 
   -- 
 Non-GAAP Net Income was $2.5 million, or $0.06 per diluted share, 
      compared to non-GAAP net income of $2.6 million, or $0.06 per diluted 
      share in the fourth quarter of 2023. 
 
 
   -- 
 Adjusted EBITDA was $0.7 million. 
 
 
   -- 
 Cash Flow: Net cash provided by operating activities was $1.0 million, 
      compared to $0.9 million used in operating activities in the fourth 
      quarter of 2023. Free cash flow was $0.4 million for the quarter, 
      compared to $(2.0) million in the fourth quarter of 2023. 
 
 
   -- 
 Cash, Cash Equivalents and Marketable Securities totaled $182.7 million 
      as of December 31, 2024. 
 

Full Year 2024 Financial Highlights

   -- 
 Revenue: 
 
          -- 
 Revenue from our Core Platform, including services, was $144.9 
             million. 
 
 
          -- 
 Total revenue was $148.1 million. 
 
 
 
 
   -- 
 GAAP Operating Loss was $50.7 million, compared to GAAP operating loss 
      of $62.0 million in 2023. 
 
 
   -- 
 Non-GAAP Operating Loss was $2.4 million, compared to non-GAAP 
      operating loss of $5.9 million in 2023. 
 
 
   -- 
 GAAP Net Loss was $42.2 million, or $(1.01) per diluted share, compared 
      to GAAP net loss of $51.8 million, or $(1.16) per diluted share in 2023. 
 
 
   -- 
 Non-GAAP Net Income was $6.1 million, or $0.13 per diluted share, 
      compared to non-GAAP net income of $4.3 million, or $0.09 per diluted 
      share in 2023. 
 
 
   -- 
 Adjusted EBITDA was $2.0 million. 
 
 
   -- 
 Cash Flow: Net cash provided by operating activities was $4.8 million, 
      compared to $12.2 million used in operating activities in 2023. Free cash 
      flow was $2.6 million for the year, compared to $(14.4) million in 2023. 
 

For more information regarding non-GAAP operating income (loss), non-GAAP net income (loss), adjusted EBITDA, and free cash flows, see the section titled "Non-GAAP Financial Measures" below. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure, see the tables at the end of this press release.

Full Year 2024 Customer Metrics

As of December 31, 2024:

   -- 
 Multi-Year Contracts: 51% of total ARR. 
 
 
   -- 
 Multi-Product Customers: 39% of customers are using two or more our 
      products. 
 

Recent Business Highlights:

   -- 
 AI-powered ACE ARR reached a new high as a percentage of growth ARR 
      bookings. 
 
 
   -- 
 Customer winback momentum continues. 
 
 
   -- 
 Received recognition and accolades including: 
 
          -- 
 Ranked as a Top Engagement Platform for Sales and Marketing 
             Teams in G2 Fall 2024 Report, recognized by customers for strong 
             market presence and overall customer support and satisfaction. 
 
 
          -- 
 Received the TrustRadius 2025 Buyers' Choice Award, recognized 
             by customers for our comprehensive features, demonstrated ROI and 
             business impact. 
 
 
 

Financial Outlook

For the full year 2025, ON24 expects:

   -- 
 Core Platform Revenue, including services, to be in the range of $136.3 
      million to $139.3 million. 
 
 
   -- 
 Total revenue of $138.6 million to $141.6 million. 
 
 
   -- 
 Non-GAAP operating loss of $5.5 million to $3.5 million. 
 
 
   -- 
 Non-GAAP net income per share of $0.02 to $0.05 using approximately 
      47.5 million diluted shares outstanding. 
 

For the first quarter of 2025, ON24 expects:

   -- 
 Core Platform Revenue, including services, to be in the range of $33.4 
      million to $33.9 million. 
 
 
   -- 
 Total revenue of $34.0 million to $34.5 million. 
 
 
   -- 
 Non-GAAP operating loss of $3.3 million to $2.3 million. 
 
 
   -- 
 Non-GAAP net loss per share of $(0.03) to $(0.01) using approximately 
      42.0 million basic and diluted shares outstanding. 
 
          -- 
 Restructuring charge of $0.8 million to $1.0 million, excluded 
             from above non-GAAP metrics. 
 
 
 

Conference Call Information

ON24 will host a conference call and live webcast for analysts and investors today at 2:00 p.m. Pacific Time. Parties in the United States can access the call by dialing 877-497-9071 or 201-689-8727.

A webcast and management's prepared remarks for today's call will be accessible on ON24's investor relations website at investors.on24.com. Approximately one hour after completion of the live call, an archived version of the webcast will be available on the Company's investor relations website.

Definitions of Certain Key Business Metrics

Core Platform: The ON24 Core Platform products include:

ON24 Elite: live, interactive webinar experience that engages prospective customers in real-time and can be made available in an on-demand format.

ON24 Breakouts: live breakout room experience that facilitates networking, collaboration and interactivity between users.

ON24 Forums: live, interactive experience that facilitates video-to-video interaction between presenters and audiences.

ON24 Go Live: live, interactive video event experience that enables presenters and attendees to engage face-to-face in real-time and can also be made available in an on-demand format.

ON24 Engagement Hub: always-on, rich multimedia content experience that prospective customers can engage anytime, anywhere.

ON24 Target: personalize and curate, rich landing page experience that engages specific segments of prospective customers to drive desired action.

ON24 AI-powered ACE: the next generation AI-powered analytics and content engine.

Annual Recurring Revenue ("ARR"): ARR is calculated as the sum of the annualized value of our subscription contracts as of the measurement date, including existing customers with expired contracts that we expect to be renewed. Our ARR amounts exclude professional services, overages from subscription customers and Legacy revenue.

Non-GAAP Financial Measures

In addition to our results determined in accordance with generally accepted accounting principles in the United States, or "GAAP", we consider our non-GAAP operating income (loss), non-GAAP net income (loss), Adjusted EBITDA, and free cash flow in evaluating our operating performance. We define non-GAAP operating income (loss) as net income (loss) excluding, interest expense, other (income) expense, net, provision for income taxes, stock-based compensation, amortization of acquired intangible assets, shareholder activism related costs, restructuring costs, impairment charges for underutilized real estate, and certain other costs. We define non-GAAP net income (loss) as net income (loss) excluding stock-based compensation, amortization of acquired intangible assets, shareholder activism related costs, restructuring costs, charges for underutilized real estate, and certain other costs. We define Adjusted EBITDA as net income (loss) excluding interest expense, other (income) expense, net, provision for income taxes, depreciation and amortization, amortization of acquired intangible assets, amortization of cloud implementation costs, stock-based compensation, restructuring costs, impairment charges for underutilized real estate, and shareholder activism related costs. We define free cash flow as net cash provided by (used in) operating activities, less purchases of property and equipment.

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