ON24 Announces First Quarter 2021 Financial Results

ON24 (NYSE: ONTF), a leading cloud-based digital experience platform provider, today announced financial results for its first quarter ended March 31, 2021.

“We have started the year with strong momentum in the business. During the first quarter, total revenue grew 102% while ARR grew 90% year-over-year. Today, we are enabling thousands of companies to convert millions of prospects into customers,” said Sharat Sharan, co-founder and CEO of ON24. “We believe our cloud-based platform stands alone when it comes to driving engagement and delivering first-person data. As we move forward in a digital-first hybrid world, we believe that we are ideally positioned with a data-rich, digital system of engagement that enables measurable business growth for our customers.”

First Quarter 2020 Financial Highlights

• ARR: ARR increased 90% year-over-year to $163.1 million as of March 31, 2021.
• Revenue: Total revenue was $50.1 million, an increase of 102% year-over-year.
• Digital Experience Platform Business Revenue: Digital experience platform business revenue (excluding legacy revenue) was $50 million, an increase of 111% year-over-year.
• Operating Loss: Operating loss was $2.2 million, compared to an operating loss of $1.5 million in the first quarter of 2020.
• Non-GAAP Operating Income (Loss): Non-GAAP operating income was $2.8 million, compared to a non-GAAP operating loss of $1.1 million in the first quarter of 2020.
• Net Loss Attributable to Common Stockholders: Net loss attributable to common stockholders was $3.4 million, or $0.10 per diluted share, compared to a net loss attributable to common stockholders of $3.4 million, or $0.37 per diluted share in the first quarter of 2020.
• Non-GAAP Net Income (Loss): Non-GAAP net income was $2.2 million, or $0.05 per diluted share, compared to a non-GAAP net loss of $1.7 million, or $0.18 per diluted share in the first quarter of 2020.
• Cash Flow: Net cash provided by operating activities was $3.7 million, compared to $1.3 million provided in operating activities in the first quarter of 2020. Free cash flow was $3.2 million for the quarter, compared to $1.2 million in the first quarter of 2020.

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.

“In addition to the strong growth in total revenue and ARR, we drove non-GAAP operating profit and positive operating cash flow in the first quarter. We remain confident in our ability to continue delivering strong growth in 2021,” said Steve Vattuone, Chief Financial Officer of ON24.

Financial Outlook

For the second quarter of 2021, the Company currently expects:

• Total revenue of $50.5 to $51.5 million.
• Non-GAAP operating income of $0 to $1.0 million.
• Non-GAAP net loss per share of $(0.01) using 47 million basic and diluted shares outstanding to non-GAAP net income per share of $0.01 using 57 million diluted shares outstanding.

For the full year 2021, the Company expects:

• Total revenue of $207.5 to $210.5 million.
• Non-GAAP operating loss of ($2.0) to non-GAAP operating income of $1.0 million.
• Non-GAAP loss per share of $0.08 to $0.02, using 44.4 million basic and diluted shares outstanding.

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 (800) 437-2398, and international parties can access the call by dialing (323) 289-6576, using the conference ID 7301901.

A webcast 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.

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, non-GAAP net income (loss) and free cash flow in evaluating our operating performance. We define non-GAAP operating income as net (loss) income excluding, interest expense, net, other (income) expense, income tax and stock-based compensation. We define non-GAAP net income (loss) as net income (loss) excluding cumulative preferred dividends allocated to preferred shareholders and stock-based compensation. 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 and non-GAAP net income to evaluate our ongoing operations and for internal planning and forecasting purposes, and we use free cash flow to measure and evaluate ca