NYSE$ONTF

ON24 Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Announced first quarter 2023 financial results, showing progress towards profitability and revenue of $43.1 million.

ON24 reported a decrease in revenue and an increased GAAP operating loss compared to the first quarter of 2022, but is on track to reach break-even non-GAAP EPS by Q2 and targeting break-even non-GAAP EBITDA by Q4 2023. The company's total revenue for the first quarter was $43.1 million, a decrease of 11% year-over-year. Despite facing temporary economic pressure, ON24 believes it is well-positioned to capture market share and deliver profitable growth.

  • Core Platform ARR of $149.2 million as of March 31, 2023, a decrease of 4% year-over-year.
  • Total revenue was $43.1 million, a decrease of 11% year-over-year.
  • GAAP Operating Loss was $19.9 million, compared to GAAP operating loss of $15.2 million in the first quarter of 2022.
  • Net cash used in operating activities was $4.2 million, compared to $6.8 million used in operating activities in the first quarter of 2022.

Headline financials

Total Revenue

$43.1M

Previous: $48.5M-11.2%
EPS (adj)

-$0.04

Previous: -$0.13+69.2%
Total ARR

$156M

Previous: $168M-7.2%
Core Platform ARR

$149M

No prior period
Capital Expenditures

-$178K

Previous: -$984K+81.9%
Free Cash Flow

-$17.8M

Previous: -$16.5M-7.9%
Net Income

-$17.6M

Previous: -$15.5M-13.6%
Operating Income

-$19.9M

Previous: -$15.2M-31.5%
Gross Profit

$29.9M

Previous: $35.5M-16.0%
Cash & Equivalents

$101M

Previous: $97.5M+3.4%
Total Assets

$402M

Previous: $462M-12.9%
Stock-Based Comp

$10.1M

Previous: $9.51M+6.5%

Revenue & EPS history

ON24 · Revenue · Quarterly

$43.1M

Q1 2023-11.2%vs Q1 2022
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

ON24 · $43.1M total across 2 segments · Q1 2023

  • Core Platform
    $41.2M
  • Virtual Conference
    $1.86M

Forward guidance

For the second quarter of 2023, ON24 expects total revenue of $41.1 million to $42.1 million and Non-GAAP net income per share of $0.00.

Tailwinds

  • Core Platform Revenue, including services, to be in the range of $39.5 million to $40.5 million.
  • Total revenue of $41.1 million to $42.1 million.
  • Non-GAAP operating loss of $2.4 million to $1.8 million.
  • Non-GAAP net income per share of $0.00 per share, or break-even EPS, using approximately 50.5 million diluted shares outstanding.
  • Restructuring charge of $1.5 million to $2.3 million, excluded from the non-GAAP amounts above.

Headwinds

  • While many marketing budgets are facing temporary economic pressure, resulting in greater deal scrutiny and softness in our key customer verticals which has impacted our near-term top-line
  • GAAP Operating Loss was $19.9 million, compared to GAAP operating loss of $15.2 million in the first quarter of 2022.
  • GAAP Net Loss was $17.6 million, or $(0.37) per diluted share, compared to GAAP net loss of $15.5 million, or $(0.32) per diluted share in the first quarter of 2022.
  • Total ARR of $155.6 million as of March 31, 2023, a decrease of 7% year-over-year.
  • Core Platform ARR of $149.2 million as of March 31, 2023, a decrease of 4% year-over-year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-4.1%

Avg return

Earnings day

-3.0%

Avg return

5 days after

-3.5%

Avg return

30 days after

29%

7 / 24 earnings

Positive

+14.1%

Q3 2025

Best reaction

-31.5%

Q2 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025-0.1%+0.1%+0.9%
Q3 2025+14.1%+11.4%+20.4%
Q2 2025+3.8%+10.6%+15.9%
Q1 2025+0.6%+14.6%+17.2%
Q4 2024-4.1%-8.9%-11.1%
Q3 2024-0.8%-1.7%+0.0%
Q2 2024+1.2%+3.4%+1.7%
Q1 2024-6.5%-4.4%-15.8%
Q4 2023-9.5%-6.4%-11.7%
Q3 2023+2.0%+7.3%+16.9%
Q2 2023-14.4%-15.4%-17.3%
Q1 2023-1.1%-3.3%-8.6%
Q4 2022-19.0%-16.1%-13.2%
Q3 2022+4.3%+7.8%+4.3%
Q2 2022+0.3%-1.3%-9.6%
Q1 2022-6.7%-12.0%-2.8%
Q4 2019-1.9%+17.3%+9.2%
Q4 2021-9.6%-14.6%-11.6%
Q3 2020-2.2%+2.3%-0.7%
Q3 2021-1.7%-5.7%-4.9%
Q2 2020-1.5%-6.8%-5.2%
Q2 2021-31.5%-32.5%-34.0%
Q1 2021-12.8%-12.0%-4.8%
Q4 2020-2.2%-4.5%-19.5%
Q1 2020
Q3 2019

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