- First quarter total revenue grows 102% year-over-year to
$50.1 million
- ARR grows 90% year-over-year to $163.1 million as of March
31, 2021
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 cash generated through normal business operations. We
believe non-GAAP operating income and non-GAAP net income 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 tools for
comparison.
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 permanence of the shift in 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 sustain
our recent revenue growth rate, attract new customers and expand
sales to existing customers; fluctuation in our performance, our
history of net losses and expected increases in our expenses;
competition 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 provides a leading cloud-based Digital Experience Platform
that makes it easy to create, scale, and personalize engaging
experiences to drive measurable business growth. Today, we are
helping over 2,000 companies worldwide, including 3 of the 5
largest global technology companies, 4 of the 5 largest US banks, 3
of the 5 largest global healthcare companies, and 3 of the 5
largest global industrial manufacturing companies, convert millions
of prospects to buyers. Through interactive webinars, virtual
events, and always-on multimedia experiences, ON24 provides a
system of engagement, powered by AI, which enables businesses to
scale engagement, conversions, and pipeline to drive revenue
growth. The ON24 platform supports an average of 4 million
professionals a month totaling over 2.5 billion engagement minutes
per year. 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)
March 31, 2021 December 31,
2020 Assets Current assets Cash and cash equivalents
$
388,940
$
58,243
Short-term investments
3,000
3,000
Accounts receivable, net
45,578
48,617
Deferred contract acquisition costs, current
11,136
10,528
Prepaid expenses and other current assets
8,783
7,079
Total current assets
457,437
127,467
Property and equipment, net
9,072
9,051
Deferred contract acquisition costs, non-current
19,921
18,753
Other long-term assets
1,318
1,447
Total assets
$
487,748
$
156,718
Liabilities, Convertible Preferred Stock and
Stockholders’ Equity (Deficit) Current liabilities Accounts
payable
$
6,123
$
4,730
Accrued liabilities
16,267
17,439
Deferred revenue
95,562
92,240
Long-term debt, current portion
2,476
2,359
Total current liabilities
120,428
116,768
Long-term debt
3,641
25,727
Other long-term liabilities
3,896
4,022
Total liabilities
127,965
146,517
Convertible Class A-1 and Class A-2 preferred stock
—
83,857
Redeemable convertible Class B and Class B-1 preferred stock
—
70,000
Stockholders’ equity (deficit) Common stock
5
1
Additional paid-in capital
533,783
27,512
Accumulated deficit
(174,093
)
(171,263
)
Accumulated other comprehensive income (loss)
88
94
Total Stockholders’ equity (deficit)
359,783
(143,656
)
Total liabilities, convertible preferred stock and stockholders’
equity (deficit)
$
487,748
$
156,718
ON24, INC. Condensed Consolidated Statements of
Operations (in thousands, except share and per share data)
(Unaudited)
Three Months Ended March
31,
2021
2020
Revenue: Subscription and other platform
$
42,910
$
19,927
Professional services
7,189
4,819
Total revenue
50,099
24,746
Cost of revenue: Subscription and other platform(1)
7,485
4,156
Professional services(1)
3,209
2,550
Total cost of revenue
10,694
6,706
Gross profit
39,405
18,040
Operating expenses: Sales and marketing(1)
23,925
12,010
Research and development(1)
7,946
4,099
General and administrative(1)
9,768
3,452
Total operating expenses
41,639
19,561
Loss from operations
(2,234
)
(1,521
)
Interest expense
231
212
Other (income) expense
116
271
Loss before provision for income taxes
(2,581
)
(2,004
)
Provision for income taxes
249
55
Net loss
(2,830
)
(2,059
)
Cumulative preferred dividends allocated to preferred stockholders
(558
)
(1,325
)
Net loss attributable to common stockholders
$
(3,388
)
$
(3,384
)
Net loss per share attributable to common stockholders: Basic and
diluted
$
(0.10
)
$
(0.37
)
Weighted-average shares used in computing net loss per share
attributable to common stockholders: Basic and diluted
32,615,648
9,130,231
(1) Includes stock-based compensation as follows:
Three Months Ended December
31,
2020
2019
Cost of revenue Subscription and other platform
$
237
$
23
Professional services
62
4
Total cost of revenue
299
27
Sales and marketing
1,692
141
Research and development
782
57
General and administrative
2,221
178
Total
$
4,994
$
403
ON24, INC. Condensed Consolidated Statements of Cash
Flows (In thousands) (Unaudited)
Three Months Ended March
31,
2021
2020
Cash flows from operating activities: Net loss
$
(2,830
)
$
(2,059
)
Adjustments to reconcile net loss to net cash provided by operating
activities: Depreciation and amortization
1,160
547
Stock-based compensation expense
4,994
403
Amortization of deferred contract acquisition cost
3,674
1,880
Provision for allowance for doubtful accounts and billing reserve
517
254
Changes in operating assets and liabilities: Accounts receivable
2,522
(5,557
)
Deferred contract acquisition cost
(5,450
)
(4,118
)
Prepaid expenses and other assets
(5,053
)
(865
)
Accounts payable
601
(336
)
Accrued liabilities
373
173
Other long-term liabilities
(126
)
(137
)
Deferred revenue
3,322
11,144
Net cash provided by operating activities
3,704
1,329
Cash flows from investing activities: Purchase of property
and equipment
(520
)
(97
)
Net cash used in investing activities
(520
)
(97
)
Cash flows from financing activities: Proceeds from initial
public offering, net of underwriting discounts
353,397
—
Proceeds from issuance of common stock resulting from exercise of
options
1,411
485
Payment of tax withholding obligations related to net share
settlements of stock options exercise
(2,001
)
—
Proceeds from long-term debt
—
6,000
Repayments of long-term debt
(22,407
)
(6,041
)
Repayment of capital lease obligations
(577
)
(206
)
Payments of offering costs
(2,305
)
—
Net cash provided by financing activities
327,518
238
Effect of exchange rate changes on cash, cash equivalents and
restricted cash
(6
)
56
Net increase in cash, cash equivalents and restricted cash
330,696
1,526
Cash, cash equivalents and restricted cash, beginning of period
58,345
18,933
Cash, cash equivalents and restricted cash, end of period
$
389,041
$
20,459
Supplemental disclosures of cash flow information: Cash paid
for taxes, net of refunds
$
11
$
4
Cash paid for interest
$
256
$
261
Supplemental disclosures of noncash investing and financing
activities: Equipment acquired under capital leases
$
1,015
$
598
Unpaid purchased fixed assets
$
135
$
58
Conversion of convertible preferred stock and redeemable
convertible preferred stock to common stock
$
153,857
$
—
Offering costs in accrued liabilities
$
1,176
$
—
ON24, INC. Reconciliation from GAAP to Non-GAAP
Results (in thousands, except share and per share data)
(Unaudited)
Three Months Ended March
31,
2021
2020
Reconciliation of net loss to non-GAAP
operating income (loss) Net loss
$
(2,830
)
$
(2,059
)
Add: Interest expense
231
212
Other (income) expense, net
116
271
Provision for income taxes
249
55
Stock-based compensation
4,994
403
Non-GAAP operating income (loss)
$
2,760
$
(1,118
)
Reconciliation of net loss
to non-GAAP net income (loss) Net loss
$
(2,830
)
$
(2,059
)
Add: Stock-based compensation expense
4,994
403
Non-GAAP net income (loss)
$
2,164
$
(1,656
)
Reconciliation of net loss
available to common stockholders Net loss
attributable to common shareholders:
$
(3,388
)
$
(3,384
)
Add: Cumulative preferred dividends allocated to preferred
shareholders
558
1,325
Add: Stock-based compensation expense
4,994
403
Non-GAAP net income (loss) attributable to common
stockholders
$
2,164
$
(1,656
)
GAAP net loss per share, basic
$
(0.10
)
$
(0.37
)
GAAP net loss per share, diluted
$
(0.10
)
$
(0.37
)
Non-GAAP earnings (loss) per share, basic
$
0.07
$
(0.18
)
Non-GAAP earnings (loss) per share, diluted
$
0.05
$
(0.18
)
Shares Used in GAAP Per Share Calculations:
GAAP weighted-average shares used to compute GAAP net loss per
share, basic
32,615,648
9,130,231
GAAP weighted-average shared used to compute GAAP net loss per
share, diluted
32,615,648
9,130,231
Shares Used in Non-GAAP Per Share Calculations:
Non-GAAP weighted-average shares used to compute non-GAAP earnings
(loss) per share, basic
32,615,648
9,130,231
Non-GAAP weighted-average shared used to compute non-GAAP earnings
(loss) per share, diluted
42,163,113
9,130,231
ON24, INC. Earnings (Loss) Per Share (in
thousands, except share and per share data) GAAP
Basic and Diluted Earnings (Loss) Per Share
Three Months Ended March
31,
2021
2020
GAAP basic and diluted net loss per share: Net loss
$
(2,830
)
$
(2,059
)
Less: Cumulative preferred dividends allocated to preferred
stockholders
(558
)
(1,325
)
Net loss attributable to common stockholders, basic and diluted
(3,388
)
(3,384
)
Income available to participating securities
—
—
Net loss available to common stockholders
$
(3,388
)
$
(3,384
)
Weighted average common stock outstanding, basic and diluted
32,615,648
9,130,231
Basic and diluted net loss per share of common stock
$
(0.10
)
$
(0.37
)
Non-GAAP Earning (Loss) Per
Share
Three Months Ended March
31,
2021
2020
Non-GAAP basic earnings (loss) per share: Net loss available to
common stockholders
$
(3,388
)
$
(3,384
)
Less: Cumulative preferred dividends allocated to preferred
stockholders
558
1,325
Add: Stock based compensation
4,994
403
Non-GAAP earnings (loss) attributable to common stockholders, basic
and diluted
2,164
(1,656
)
Non-GAAP weighted-average shares used to compute
non-GAAP earnings (loss) per share, basic
32,615,648
9,130,231
Non-GAAP weighted-average shares used to compute non-GAAP earnings
(loss) per share, diluted
42,163,113
9,130,231
Non-GAAP earnings per share of common stock: Non-GAAP earnings
(loss) per share, basic
$
0.07
$
(0.18
)
Non-GAAP earnings (loss) per share, diluted
$
0.05
$
(0.18
)
ON24, INC. Reconciliation of GAAP Cash Flow from
Operating Activities to Free Cash Flow (in thousands)
(Unaudited)
Three Months Ended March
31,
2021
2020
Net cash provided by (used in) operating activities:
$
3,704
$
1,329
Less: Purchases of property and equipment
(520
)
(97
)
Free cash flow
$
3,184
$
1,232
ON24, INC. Revenue (in thousands) (Unaudited)
Three Months Ended March
31,
2021
2020
Digital Experience Platform Subscription and other platform
$
42,858
$
19,316
Professional services
7,164
4,402
Total digital experience platform
$
50,022
$
23,718
Legacy Subscription and other platform
$
52
$
611
Professional services
25
417
Total legacy revenue
$
77
$
1,028
Revenue Subscription and other platform
$
42,910
$
19,927
Professional services
7,189
4,819
Total revenue
$
50,099
$
24,746
© 2021 ON24, Inc. All rights reserved. ON24 and the ON24 logo
are trademarks owned by ON24, Inc., and are registered in the
United States Patent and Trademark Office and in other
countries.
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version on businesswire.com: https://www.businesswire.com/news/home/20210512005947/en/
Media Contact: Roger Villareal press@on24.com Investor
Contact: Maili Bergman investorrelations@on24.com
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