ON24 Announces Second Quarter 2023 Financial Results

August 08, 2023 at 16:15 PM EDT

Second quarter total revenue of $42.1 million
Achieved Q2 2023 profitability target, and Q4 2023 profitability milestone ahead of schedule
Launched new Generative AI Optimization Suite with strong customer trial adoption
Continued to execute on capital return program; returned approximately $73.5 million to stockholders in Q2

ON24 (NYSE: ONTF), a leading sales and marketing platform for B2B digital engagement, today announced financial results for the second quarter ended June 30, 2023.

“In the second quarter, we continued to make significant progress on our path to profitability by achieving positive non-GAAP EPS. We also achieved breakeven non-GAAP EBITDA, which is two quarters ahead of our original goal,” said Sharat Sharan, co-founder and CEO of ON24. “We continued to operate in a period of uncertainty in which our customers’ budgets remained under pressure. In this environment, we remain laser-focused on what we can control by executing against our strategic priorities of delivering profitability, developing the next generation of our platform enabled by generative AI, and further enhancing our enterprise go-to-market strategy. Looking ahead, we are confident that we have positioned our company to drive long-term profitable growth.”

Second Quarter 2023 Financial Highlights

Revenue:
- Revenue from our Core Platform, including services, was $40.5 million, a decrease of 9% year-over-year.
- Total revenue was $42.1 million, a decrease of 13% year-over-year.
ARR:
- Core Platform ARR of $140.6 million as of June 30, 2023, a decrease of 10% year-over-year.
- Total ARR of $144.8 million as of June 30, 2023, a decrease of 14% year-over-year.

GAAP Operating Loss was $15.8 million, compared to GAAP operating loss of $16.0 million in the second quarter of 2022.
Non-GAAP Operating Loss was $0.9 million, compared to non-GAAP operating loss of $6.2 million in the second quarter of 2022.
GAAP Net Loss was $12.8 million, or $(0.28) per diluted share, compared to GAAP net loss of $16.2 million, or $(0.34) per diluted share in the second quarter of 2022.
Non-GAAP Net Income was $2.1 million, or $0.04 per diluted share, compared to a non-GAAP net loss of $6.4 million, or $(0.14) per diluted share in the second quarter of 2022.
Cash Flow: Net cash used in operating activities was $4.3 million, compared to $2.7 million used in operating activities in the second quarter of 2022. Free cash flow was negative $4.9 million for the quarter, compared to negative $3.4 million in the second quarter of 2022.
Cash, Cash Equivalents and Marketable Securities totaled $240.5 million as of June 30, 2023.

For more information regarding non-GAAP operating income (loss), non-GAAP net income (loss) 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.

Recent Business Highlights:

Achieved accelerated profitability targets through greater operational efficiency.
Launched new Generative AI Optimization Suite built on strong foundation of first-party data to fuel the next generation of the ON24 platform; over 200 customers in free trial with positive outlook for expansion sales.
Strengthened relationships with enterprise customers as percentage of Core Platform ARR in multiyear agreements hit an all-time high.
Continued to advance enterprise go-to-market execution with focus on mission-critical digital transformation initiatives requiring a differentiated enterprise-grade solution that supports compliance.

Financial Outlook

For the third quarter of 2023, ON24 expects:

Core Platform Revenue, including services, to be in the range of $36.5 million to $37.5 million.
Total revenue of $37.5 million to $38.5 million.
Non-GAAP operating loss of $2.7 million to $1.7 million.
Non-GAAP net income per share of $0.00 per share, or break-even EPS, using approximately 49.2 million diluted shares outstanding.
- Restructuring charge of $0.7 million to $1.4 million, excluded from the Non-GAAP amounts above.

For the full year 2023, ON24 now expects:

Core Platform Revenue, including services, to be in the range of $152.0 million to $155.0 million.
Total revenue of $157.0 million to $160.0 million.
Non-GAAP operating loss of $9.5 million to $7.5 million.
Non-GAAP net loss per share of $(0.02) to net income of $0.02 per share using approximately 44.8 million basic and diluted shares outstanding and 49.6 million diluted shares outstanding, respectively.

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 +1 (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.

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) 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, income tax, 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 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 free cash flow as net cash provided by (used in) operating activities, less purchases of property and equipment.

We use non-GAAP operating income (loss) and non-GAAP net income (loss) to evaluate our ongoing operations and for internal planning and forecasting purposes, and we use free cash flow to measure and evaluate cash generated through normal business operations. We believe non-GAAP operating income (loss) and non-GAAP net income (loss) may be helpful to investors because they provide consistency and comparability with past financial performance. We believe free cash flow may be helpful to investors because it reflects that some purchases of property and equipment are necessary to support ongoing operations, while providing a measure of cash available to acquire customers, expand within existing customers and otherwise pursue our business strategies.

However, these non-GAAP financial measures are each presented for supplemental informational purposes only, have limitations as analytical tools and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Non-GAAP financial measures have no standardized meanings prescribed by GAAP and are not prepared under a comprehensive set of accounting rules or principles. In addition, other companies, including companies in our industry, may calculate similarly-titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measure as a tool for comparison.

We do not provide a quantitative reconciliation of the forward-looking non-GAAP financial measures included in this press release to the most directly comparable GAAP measures due to the high variability and difficulty to predict certain items excluded from these non-GAAP financial measures; in particular, the effects of stock-based compensation expense, and restructuring and transaction expenses. We expect the variability of these excluded items may have a significant, and potentially unpredictable, impact on our future GAAP financial results.

Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measure are included in the tables at the end of this press release.

Forward-Looking Statements

This document 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 program, the size of our market opportunity, the success of our new products and capabilities, the impact of the COVID-19 pandemic on the way people do business, and other statements regarding our ability to achieve our business strategies, growth, or other future events or conditions. Such statements are based on our current beliefs, expectations, and assumptions about future events or conditions, which are subject to inherent risks and uncertainties, including our ability to attract new customers and expand sales to existing customers, decline in our growth rate; fluctuation in our performance, our history of net losses and expected increases in our expenses; competition and technological development in our markets and any decline in demand for our solutions; our ability to expand our sales and marketing capabilities and otherwise manage our growth; the impact of the COVID-19 pandemic; disruptions or other issues with our technology or third-party services; compliance with data privacy, import and export controls, customs, sanctions and other laws and regulations; intellectual property matters; and matters relating to our common stock, along with the other risks and uncertainties discussed in the filings we make from time to time with the Securities and Exchange Commission. Actual results may differ materially from those indicated in forward-looking statements, and you should not place undue reliance on them. All statements herein are based only on information currently available to us and speak only as of the date hereof. Except as required by law, we undertake no obligation to update any such statement.

About ON24

ON24 is on a mission to re-imagine how companies engage, understand and build relationships with their audience in a digital world. Through our leading sales and marketing platform for digital engagement, businesses use our portfolio of webinar, virtual event and content experiences to drive engagement and generate first-party data, delivering revenue growth across the enterprise – from demand generation to customer success to partner enablement.

ON24 powers digital engagement for industry-leading customers worldwide, including 3 of the 5 largest global technology companies, 3 of the 6 largest US banks, 3 of the 5 largest global healthcare companies, and 3 of the 5 largest global industrial manufacturers, enabling organizations to reach millions of professionals a month for billions of engagement minutes per year with all the first-party data being captured, generated and integrated from one place. ON24 is headquartered in San Francisco with global offices in North America, EMEA, and APAC. For more information, visit www.ON24.com.

ON24, INC. Condensed Consolidated Balance Sheets (in thousands) (Unaudited)

	June 30, 2023			December 31, 2022
Assets
Current assets
Cash and cash equivalents	$	25,158		$	26,996
Marketable securities		215,372			301,125
Accounts receivable, net		31,314			43,757
Deferred contract acquisition costs, current		12,452			13,136
Prepaid expenses and other current assets		7,293			6,281
Total current assets		291,589			391,295
Property and equipment, net		5,668			7,212
Operating right-of-use assets		3,717			5,606
Intangible asset, net		1,523			1,979
Deferred contract acquisition costs, non-current		16,876			17,773
Other long-term assets		1,370			1,608
Total assets	$	320,743		$	425,473
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	4,269		$	4,611
Accrued and other current liabilities		16,866			18,465
Deferred revenue		74,459			83,453
Finance lease liabilities, current		718			1,554
Operating lease liabilities, current		2,640			2,648
Total current liabilities		98,952			110,731
Operating lease liabilities, non-current		3,730			5,040
Other long-term liabilities		1,075			1,741
Total liabilities		103,757			117,512
Stockholders’ equity
Common stock		4			5
Additional paid-in capital		501,416			562,555
Accumulated deficit		(284,164	)		(253,727	)
Accumulated other comprehensive loss		(270	)		(872	)
Total stockholders’ equity		216,986			307,961
Total liabilities and stockholders’ equity	$	320,743		$	425,473

ON24, INC. Condensed Consolidated Statements of Operations (in thousands, except share and per share data) (Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
		2023			2022			2023			2022
Revenue:
Subscription and other platform	$	38,336		$	43,064		$	77,700		$	86,541
Professional services		3,750			5,174			7,449			10,189
Total revenue		42,086			48,238			85,149			96,730
Cost of revenue:
Subscription and other platform⁽¹⁾⁽⁴⁾		9,066			9,958			18,955			19,560
Professional services⁽¹⁾⁽⁴⁾		3,134			3,343			6,451			6,685
Total cost of revenue		12,200			13,301			25,406			26,245
Gross profit		29,886			34,937			59,743			70,485
Operating expenses:
Sales and marketing⁽¹⁾⁽⁴⁾		22,628			28,850			47,045			58,043
Research and development^(1)(2)(4)		10,930			10,948			22,029			21,592
General and administrative^(1)(3)(4)		12,105			11,158			26,383			22,035
Total operating expenses		45,663			50,956			95,457			101,670
Loss from operations		(15,777	)		(16,019	)		(35,714	)		(31,185	)
Interest expense		33			49			62			103
Other (income) expense, net		(3,193	)		103			(5,765	)		280
Loss before provision for income taxes		(12,617	)		(16,171	)		(30,011	)		(31,568	)
Provision for income taxes		230			41			426			123
Net loss		(12,847	)		(16,212	)		(30,437	)		(31,691	)
Net loss per share:
Basic and diluted	$	(0.28	)	$	(0.34	)	$	(0.65	)	$	(0.67	)
Weighted-average shares used in computing net loss per share:
Basic and diluted		45,866,022			47,187,586			46,581,527			47,408,479

(1)

Includes stock-based compensation as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cost of revenue
Subscription and other platform	$	709	$	823	$	1,494	$	1,691
Professional services		144		166		296		340
Total cost of revenue		853		989		1,790		2,031
Sales and marketing		3,555		3,697		6,612		7,389
Research and development		2,363		1,925		4,384		3,906
General and administrative		4,834		3,087		8,940		5,879
Total stock-based compensation expense	$	11,605	$	9,698	$	21,726	$	19,205

(2)		Research and development expense includes amortization of acquired intangible asset of $135 thousand and $277 thousand for the three and six months ended June 30, 2023, respectively, and $137 thousand for the three and six months ended June 30, 2022, in connection with the Vibbio acquisition in April 2022.
(3)		General and administrative expense for the three and six months ended June 30, 2023 includes fees related to shareholder activism of $210 thousand and $2,656 thousand, respectively.
(4)		The results of operations for the three and six months ended June 30, 2023 includes restructuring costs, which primarily represent severance and related expense due to restructuring activities, and impairment charges on our headquarters lease, as follows:

	Three Months Ended June 30, 2023						Six months ended June 30, 2023
	Severance and related Charges⁽¹⁾		Lease Impairment Charge⁽²⁾		Total		Severance and related Charges⁽¹⁾		Lease Impairment Charge⁽²⁾		Total
Cost of revenue
Subscription and other platform	$	720	$	89	$	809	$	1,505	$	89	$	1,594
Professional services		50		101		151		104		101		205
Total cost of revenue		770		190		960		1,609		190		1,799
Sales and marketing		597		208		805		1,808		208		2,016
Research and development		340		472		812		1,113		472		1,585
General and administrative		52		339		391		282		339		621
Total restructuring costs	$	1,759	$	1,209	$	2,968	$	4,812	$	1,209	$	6,021

ON24, INC. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Cash flows from operating activities:
Net loss	$	(12,847	)	$	(16,212	)	$	(30,437	)	$	(31,691	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1,375			1,339			2,792			2,546
Stock-based compensation expense		11,605			9,698			21,726			19,205
Amortization of deferred contract acquisition cost		3,951			3,950			7,844			8,017
Provision for allowance for doubtful accounts and billing reserve		798			487			1,699			747
Non-cash lease expense		444			482			941			1,001
Amortization (accretion) of marketable securities		(1,885	)		77			(3,711	)		330
Lease impairment charge		1,209			—			1,209			—
Other		28			(1	)		156			—
Change in operating assets and liabilities:
Accounts receivable		1,339			1,866			10,744			5,645
Deferred contract acquisition cost		(2,717	)		(3,741	)		(6,263	)		(7,368	)
Prepaid expenses and other assets		1,221			1,978			(848	)		(1,577	)
Accounts payable		882			(1,428	)		(471	)		314
Accrued liabilities		(1,658	)		1,007			(2,747	)		255
Deferred revenue		(6,707	)		(1,388	)		(8,994	)		(5,486	)
Other non-current liabilities		(1,354	)		(782	)		(2,123	)		(1,376	)
Net cash used in operating activities		(4,316	)		(2,668	)		(8,483	)		(9,438	)
Cash flows from investing activities:
Purchase of property and equipment		(554	)		(690	)		(732	)		(1,674	)
Acquisition, net of cash acquired		—			(2,495	)		—			(2,495	)
Purchase of marketable securities		(76,234	)		(51,349	)		(195,825	)		(111,620	)
Proceeds from maturities of marketable securities		77,260			47,390			276,470			62,098
Proceeds from sale of marketable securities		—			—			9,321			—
Net cash provided by (used in) investing activities		472			(7,144	)		89,234			(53,691	)
Cash flows from financing activities:
Proceeds from exercise of stock options		629			581			884			1,738
Proceeds from issuance of common stock under ESPP		546			833			546			833
Payment of tax withholding obligations related to net share settlements on equity awards		—			—			—			(1,756	)
Payment for repurchase of common stock		(22,586	)		(8,734	)		(33,306	)		(21,808	)
Payment of cash dividend		(49,872	)		—			(49,872	)		—
Repayment of equipment loans		(60	)		(67	)		(131	)		(133	)
Repayment of finance lease obligations		(531	)		(555	)		(942	)		(972	)
Net cash used in financing activities		(71,874	)		(7,942	)		(82,821	)		(22,098	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		99			249			229			276
Net decrease in cash, cash equivalents and restricted cash		(75,619	)		(17,505	)		(1,841	)		(84,951	)
Cash, cash equivalents and restricted cash, beginning of period		100,947			97,597			27,169			165,043
Cash, cash equivalents and restricted cash, end of period	$	25,328		$	80,092		$	25,328		$	80,092

ON24, INC. Reconciliation of GAAP to Non-GAAP Results (in thousands, except share and per share data) (Unaudited)

Reconciliation of gross profit and gross margin

	Three Months Ended June 30,						Six Months Ended June 30,
		2023			2022			2023			2022
GAAP gross profit	$	29,886		$	34,937		$	59,743		$	70,485
Add:
Stock-based compensation		853			989			1,790			2,031
Restructuring costs		770			—			1,609			—
Impairment charge		190			—			190			—
Non-GAAP gross profit	$	31,699		$	35,926		$	63,332		$	72,516
GAAP gross margin		71	%		72	%		70	%		73	%
Non-GAAP gross margin		75	%		74	%		74	%		75	%

Reconciliation of operating expenses

	Three Months Ended June 30,						Six Months Ended June 30,
		2023			2022			2023			2022
GAAP sales and marketing	$	22,628		$	28,850		$	47,045		$	58,043
Less:
Stock-based compensation		(3,555	)		(3,697	)		(6,612	)		(7,389	)
Restructuring costs		(597	)		—			(1,808	)		—
Impairment charge		(208	)		—			(208	)		—
Non-GAAP sales and marketing	$	18,268		$	25,153		$	38,417		$	50,654

GAAP research and development	$	10,930		$	10,948		$	22,029		$	21,592
Less:
Stock-based compensation		(2,363	)		(1,925	)		(4,384	)		(3,906	)
Restructuring costs		(340	)		—			(1,113	)		—
Impairment charge		(472	)		—			(472	)		—
Amortization of acquired intangible asset		(135	)		(137	)		(277	)		(137	)
Non-GAAP research and development	$	7,620		$	8,886		$	15,783		$	17,549

GAAP general and administrative	$	12,105		$	11,158		$	26,383		$	22,035
Less:
Stock-based compensation		(4,834	)		(3,087	)		(8,940	)		(5,879	)
Restructuring costs		(52	)		—			(282	)		—
Impairment charge		(339	)		—			(339	)		—
Fees related to shareholder activism		(210	)		—			(2,656	)		—
Non-GAAP general and administrative	$	6,670		$	8,071		$	14,166		$	16,156

ON24, INC. Reconciliation of GAAP to Non-GAAP Results (in thousands, except share and per share data) (Unaudited)

Reconciliation of net loss to non-GAAP operating loss

	Three Months Ended June 30,						Six Months Ended June 30,
		2023			2022			2023			2022
Net loss	$	(12,847	)	$	(16,212	)	$	(30,437	)	$	(31,691	)
Add:
Interest expense		33			49			62			103
Other (income) expense, net		(3,193	)		103			(5,765	)		280
Provision for income taxes		230			41			426			123
Stock-based compensation		11,605			9,698			21,726			19,205
Amortization of acquired intangible asset		135			137			277			137
Restructuring costs		1,759			—			4,812			—
Impairment charge		1,209			—			1,209			—
Fees related to shareholder activism		210			—			2,656			—
Non-GAAP operating loss	$	(859	)	$	(6,184	)	$	(5,034	)	$	(11,843	)

Reconciliation of net loss to Adjusted EBITDA

	Three Months Ended June 30,						Six Months Ended June 30,
		2023			2022			2023			2022
Net loss	$	(12,847	)	$	(16,212	)	$	(30,437	)	$	(31,691	)
Add:
Interest expense		33			49			62			103
Other (income) expense, net		(3,193	)		103			(5,765	)		280
Provision for income taxes		230			41			426			123
Depreciation and amortization		1,240			1,202			2,515			2,409
Amortization of acquired intangible asset		135			137			277			137
Amortization of cloud implementation costs		37			37			74			63
Stock-based compensation		11,605			9,698			21,726			19,205
Restructuring costs		1,759			—			4,812			—
Impairment charge		1,209			—			1,209			—
Fees related to shareholder activism		210			—			2,656			—
Adjusted EBITDA	$	418		$	(4,945	)	$	(2,445	)	$	(9,371	)

Reconciliation of net loss to non-GAAP net income (loss)

	Three Months Ended June 30,						Six Months Ended June 30,
		2023			2022			2023			2022
Net loss	$	(12,847	)	$	(16,212	)	$	(30,437	)	$	(31,691	)
Add:
Stock-based compensation		11,605			9,698			21,726			19,205
Amortization of acquired intangible asset		135			137			277			137
Restructuring costs		1,759			—			4,812			—
Impairment charge		1,209			—			1,209			—
Fees related to shareholder activism		210			—			2,656			—
Non-GAAP net income (loss)	$	2,071		$	(6,377	)	$	243		$	(12,349	)

ON24, INC. Reconciliation of GAAP to Non-GAAP Results (in thousands, except share and per share data) (Unaudited)

Reconciliation of GAAP to Non-GAAP basic and diluted net income (loss) per share

	Three Months Ended June 30,						Six Months Ended June 30,
		2023			2022			2023			2022
GAAP basic and diluted net loss per share:
Net loss	$	(12,847	)	$	(16,212	)	$	(30,437	)	$	(31,691	)
Weighted average common stock outstanding, basic and diluted		45,866,022			47,187,586			46,581,527			47,408,479
Net loss per share, basic and diluted	$	(0.28	)	$	(0.34	)	$	(0.65	)	$	(0.67	)

	Three Months Ended June 30,						Six Months Ended June 30,
		2023			2022			2023			2022
Non-GAAP basic and diluted net income (loss) per share:
Net loss	$	(12,847	)	$	(16,212	)	$	(30,437	)	$	(31,691	)
Add:
Stock-based compensation		11,605			9,698			21,726			19,205
Amortization of acquired intangible asset		135			137			277			137
Restructuring costs		1,759			—			4,812			—
Impairment charge		1,209			—			1,209			—
Fees related to shareholder activism		210			—			2,656			—
Non-GAAP net income (loss)	$	2,071		$	(6,377	)	$	243		$	(12,349	)
Non-GAAP weighted-average common stock outstanding
Basic		45,866,022			47,187,586			46,581,527			47,408,479
Diluted		50,716,390			47,187,586			51,120,544			47,408,479
Non-GAAP net income (loss) per share of common stock:
Basic	$	0.05		$	(0.14	)	$	0.01		$	(0.26	)
Diluted	$	0.04		$	(0.14	)	$	—		$	(0.26	)

ON24, INC. Reconciliation of GAAP to Non-GAAP Results (in thousands) (Unaudited)

Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow

	Three Months Ended June 30,						Six Months Ended June 30,
		2023			2022			2023			2022
Net cash used in operating activities:	$	(4,316	)	$	(2,668	)	$	(8,483	)	$	(9,438	)
Less: Purchases of property and equipment		(554	)		(690	)		(732	)		(1,674	)
Free cash flow	$	(4,870	)	$	(3,358	)	$	(9,215	)	$	(11,112	)

ON24, INC. Revenue (in thousands) (Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Core Platform
Subscription and other platform	$	37,000	$	40,027	$	74,811	$	80,097
Professional services		3,460		4,604		6,855		9,041
Total core platform revenue	$	40,460	$	44,631	$	81,666	$	89,138

Virtual Conference
Subscription and other platform	$	1,336	$	3,037	$	2,889	$	6,444
Professional services		290		570		594		1,148
Total virtual conference revenue	$	1,626	$	3,607	$	3,483	$	7,592

Revenue
Subscription and other platform	$	38,336	$	43,064	$	77,700	$	86,541
Professional services		3,750		5,174		7,449		10,189
Total revenue	$	42,086	$	48,238	$	85,149	$	96,730

View source version on businesswire.com: https://www.businesswire.com/news/home/20230808682164/en/

Contacts

Media Contact:

Tessa Barron

press@on24.com

Investor Contact:

Lauren Sloane, The Blueshirt Group for ON24

investorrelations@on24.com

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ON24 Announces Second Quarter 2023 Financial Results

Contacts