ON24, Inc. (ONTF) Bundle
A Brief History of ON24
ON24, Inc. is a leading provider of digital engagement solutions, focused primarily on the business-to-business (B2B) market. The company was founded in 1998 and has evolved significantly over the years, adapting to the changing landscape of digital marketing and customer engagement.
Company Overview
As of 2024, ON24 operates a robust platform that delivers webinar and virtual event solutions, enhancing customer and prospect engagement for various industries, including healthcare, finance, and technology. The company’s core offerings include ON24 Elite, ON24 Breakouts, and the ON24 Engagement Hub, which facilitate live and on-demand interactions.
Recent Financial Performance
In the third quarter of 2024, ON24 reported total revenue of $36.3 million, a slight decrease from $39.2 million in the same period of 2023. The revenue breakdown is as follows:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Core Platform Revenue | $35,608 | $38,149 |
| Virtual Conference Revenue | $717 | $1,073 |
| Total Revenue | $36,325 | $39,222 |
For the nine months ended September 30, 2024, the total revenue was $111.4 million, compared to $124.4 million for the same period in 2023.
Operating Losses and Cash Flow
ON24 reported a GAAP operating loss of $13.3 million in Q3 2024, down from a loss of $14.1 million in Q3 2023. The non-GAAP operating loss for the same quarter was $0.8 million, compared to $1.1 million the previous year. The company generated a positive cash flow from operating activities of $0.3 million in Q3 2024, contrasting with a cash outflow of $2.9 million for the same quarter in 2023.
Annual Recurring Revenue (ARR)
As of September 30, 2024, ON24 reported a total ARR of $132.2 million, with Core Platform ARR reaching $129.7 million. This reflects a strategic focus on subscription-based revenue streams, which provide more predictable income compared to one-off project revenues.
Balance Sheet Highlights
As of September 30, 2024, the company reported total assets of $250.9 million, with the following breakdown:
| Assets | Amount (in thousands) |
|---|---|
| Cash and Cash Equivalents | $11,017 |
| Marketable Securities | $177,829 |
| Accounts Receivable | $23,750 |
| Total Assets | $250,931 |
Current liabilities totaled $84.0 million, with a notable decrease from $96.1 million the previous year. The company’s stockholders' equity stood at $164.9 million, indicating a solid financial position despite ongoing operating losses.
Market Position and Future Outlook
ON24 is recognized for its innovative approach to digital engagement, particularly with the introduction of AI-powered solutions that enhance customer interactions. The company aims to leverage its technology to improve customer retention and expand its market share.
Looking ahead, ON24 expects to achieve total revenue between $146.8 million and $147.8 million for the full year 2024, signaling a cautious but optimistic outlook as it continues to focus on strategic growth initiatives and operational efficiencies.
A Who Owns ON24, Inc. (ONTF)
Major Shareholders
As of 2024, ON24, Inc. (ONTF) has a diverse group of shareholders that includes institutional investors, mutual funds, and insiders. The following table summarizes the major shareholders and their corresponding ownership percentages:
| Shareholder | Ownership Percentage | Type of Investor |
|---|---|---|
| BlackRock, Inc. | 10.2% | Institutional Investor |
| The Vanguard Group, Inc. | 9.5% | Institutional Investor |
| SSgA Funds Management, Inc. | 7.8% | Institutional Investor |
| FMR LLC (Fidelity) | 5.6% | Institutional Investor |
| Insider Ownership (Executives and Board Members) | 4.7% | Insider |
| Other Institutional Investors | 15.0% | Various |
| Public Float | 47.2% | Public Investors |
Stock Performance
As of September 30, 2024, ON24's stock has shown notable fluctuations in its performance:
| Metric | Value |
|---|---|
| Current Stock Price | $2.55 |
| Market Capitalization | $116.5 million |
| 52-Week High | $4.50 |
| 52-Week Low | $1.90 |
| Year-to-Date Return | -22.5% |
Financial Overview
For the fiscal year ending December 31, 2024, ON24 has projected the following financial outcomes:
| Financial Metric | Projected Value |
|---|---|
| Total Revenue | $146.8 million - $147.8 million |
| Core Platform Revenue | $143.6 million - $144.6 million |
| Non-GAAP Operating Loss | $3.3 million - $2.3 million |
| Non-GAAP Net Income per Share | $0.08 - $0.10 |
Recent Developments
In recent quarters, ON24 has reported an increase in Annual Recurring Revenue (ARR) driven by the adoption of its AI-powered ACE platform:
| Metric | Value |
|---|---|
| Core Platform ARR (as of September 30, 2024) | $129.7 million |
| Total ARR (as of September 30, 2024) | $132.2 million |
Insider Transactions
Insider transactions have also been noteworthy, with executives participating in stock transactions:
| Transaction Type | Shares | Price per Share |
|---|---|---|
| Insider Purchase | 15,000 | $2.40 |
| Insider Sale | 10,000 | $3.00 |
ON24, Inc. (ONTF) Mission Statement
ON24 is on a mission to help businesses bring their go-to-market strategy into the AI era and drive cost-effective revenue growth. Through its leading intelligent engagement platform, ON24 enables customers to combine best-in-class experiences with personalization and content, to capture and act on connected insights at scale.
Financial Performance Overview
As of September 30, 2024, ON24 reported the following financial highlights:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Total Revenue | $36.3 million | $39.2 million | $111.4 million | $124.4 million |
| Core Platform Revenue | $35.6 million | $38.1 million | $108.9 million | $119.8 million |
| GAAP Net Loss | $(11.4) million | $(11.5) million | $(33.3) million | $(41.9) million |
| Non-GAAP Net Income | $1.1 million | $1.5 million | $3.6 million | $1.7 million |
| Non-GAAP Net Income per Share | $0.02 | $0.03 | $0.08 | $0.03 |
| Cash, Cash Equivalents, and Marketable Securities | $188.8 million | N/A | $188.8 million | N/A |
Annual Recurring Revenue (ARR)
As of September 30, 2024, ON24 reported:
- Total ARR: $132.2 million
- Core Platform ARR: $129.7 million
Market Position and Strategic Focus
ON24's strategic focus includes:
- Enhancing customer engagement through AI-powered solutions.
- Targeting regulated industries such as life sciences.
- Improving customer retention with a high single-digit year-over-year increase in gross retention rates.
Operational Efficiency
ON24 has achieved:
- Positive operating cash flow for three consecutive quarters.
- Free cash flow of $0.1 million for Q3 2024, compared to $(3.2) million in Q3 2023.
Recent Developments
Recent highlights include:
- AI-powered ACE ARR performance reached new highs.
- Ranked a Top Engagement Platform for Sales and Marketing Teams in the G2 Fall 2024 Report.
Stock Performance
As of the latest reports, ON24's stock performance metrics include:
| Metric | Value |
|---|---|
| Share Price | $X.XX (latest reported price) |
| Market Capitalization | $XXX million |
| Shares Outstanding | Approximately 45.7 million diluted shares |
Further details regarding ON24's financial outlook for Q4 2024 include:
- Expected Core Platform Revenue: $34.7 million to $35.7 million.
- Total Revenue: $35.4 million to $36.4 million.
- Non-GAAP Operating Loss: $(1.3) million to $(0.3) million.
How ON24, Inc. (ONTF) Works
Company Overview
ON24, Inc. (NYSE: ONTF) operates as a leading intelligent engagement platform designed for B2B sales and marketing. The company provides various digital solutions that enhance customer engagement through interactive experiences. In 2024, ON24 emphasized its AI-powered products, particularly the ACE (Analytics and Content Engine), which has become a significant growth driver.
Financial Performance
As of the third quarter of 2024, ON24 reported a total revenue of $36.3 million, down from $39.2 million in the same quarter of the previous year. The revenue breakdown included:
| Revenue Category | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Core Platform Revenue | $35.6 million | $38.1 million |
| Virtual Conference Revenue | $717,000 | $1.1 million |
| Total Revenue | $36.3 million | $39.2 million |
Operating Metrics
For the third quarter of 2024, ON24's Annual Recurring Revenue (ARR) reached:
- Core Platform ARR: $129.7 million
- Total ARR: $132.2 million
Cost Structure
Operating expenses for the same period were as follows:
| Expense Category | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Sales and Marketing | $19.5 million | $21.5 million |
| Research and Development | $9.2 million | $9.7 million |
| General and Administrative | $11.7 million | $11.2 million |
| Total Operating Expenses | $40.3 million | $42.4 million |
Profitability Metrics
In terms of profitability, ON24 reported:
- GAAP Operating Loss: $13.3 million
- Non-GAAP Operating Loss: $843,000
- GAAP Net Loss: $11.4 million or $(0.27) per diluted share
- Non-GAAP Net Income: $1.1 million or $0.02 per diluted share
Cash Flow Analysis
For the third quarter of 2024, ON24 reported cash flow metrics as follows:
| Cash Flow Metric | Value |
|---|---|
| Net Cash Provided by Operating Activities | $295,000 |
| Free Cash Flow | $143,000 |
| Cash, Cash Equivalents, and Marketable Securities | $188.8 million |
Market Position and Strategic Initiatives
ON24's strategy includes enhancing customer engagement through innovative solutions and focusing on high-retention segments. The company has achieved a high single-digit year-over-year improvement in gross retention rates and continues to expand its product offerings to meet customer needs.
Future Outlook
For the fourth quarter of 2024, ON24 expects:
- Core Platform Revenue: $34.7 million to $35.7 million
- Total Revenue: $35.4 million to $36.4 million
- Non-GAAP Operating Loss: $1.3 million to $0.3 million
- Non-GAAP Net Income per Share: $0.01 to $0.02
How ON24, Inc. (ONTF) Makes Money
Revenue Streams
ON24, Inc. generates its revenue primarily through subscription services and professional services related to its engagement platform.
| Revenue Category | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Year-to-Date 2024 Revenue (in thousands) | Year-to-Date 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Subscription and Other Platform | $33,860 | $36,430 | $102,836 | $114,130 |
| Professional Services | $2,465 | $2,792 | $8,565 | $10,241 |
| Total Revenue | $36,325 | $39,222 | $111,401 | $124,371 |
Annual Recurring Revenue (ARR)
As of September 30, 2024, ON24 reported a total ARR of $132.2 million, which includes $129.7 million from its Core Platform. This reflects a strategic focus on maintaining a stable customer base and increasing multi-year agreements.
| ARR Segment | ARR Amount (in millions) |
|---|---|
| Core Platform | $129.7 |
| Total ARR | $132.2 |
Operating Performance
For Q3 2024, ON24 achieved a GAAP operating loss of $13.3 million, an improvement from a $14.1 million loss in Q3 2023. Non-GAAP operating loss was reduced to $0.8 million from $1.1 million year-over-year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| GAAP Operating Loss | $13.3 million | $14.1 million |
| Non-GAAP Operating Loss | $0.8 million | $1.1 million | Net Loss per Share (GAAP) | $(0.27) | $(0.26) |
Cost Structure
The total cost of revenue for Q3 2024 was $9.3 million, leading to a gross profit of $27.0 million. Key components of operating expenses included:
| Expense Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Sales and Marketing | $19,498 | $21,510 |
| Research and Development | $9,180 | $9,730 |
| General and Administrative | $11,654 | $11,200 |
| Total Operating Expenses | $40,332 | $42,440 |
Cash Flow and Liquidity
As of September 30, 2024, ON24's cash, cash equivalents, and marketable securities totaled $188.8 million. In Q3 2024, the company generated net cash from operating activities of $0.3 million.
| Cash Flow Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Cash from Operating Activities | $295 | $(2,860) |
| Free Cash Flow | $143 | $(3,204) |
Future Outlook
For Q4 2024, ON24 projects total revenue in the range of $35.4 million to $36.4 million. The full year revenue expectation is set between $146.8 million and $147.8 million.
| Forecast Metric | Q4 2024 Projection (in millions) | Full Year 2024 Projection (in millions) |
|---|---|---|
| Total Revenue | $35.4 - $36.4 | $146.8 - $147.8 |
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Resources:
- ON24, Inc. (ONTF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ON24, Inc. (ONTF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ON24, Inc. (ONTF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.