NYSE$ONTF

ON24 Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Announced second quarter 2024 financial results, exceeding profitability targets for the 5th consecutive quarter and generating positive free cash flow for the 2nd consecutive quarter.

ON24 reported Q2 2024 financial results, exceeding guidance on both top and bottom lines and delivering positive free cash flow. The company saw improvement in gross retention and growth in AI-powered ACE ARR.

  • Total revenue reached $37.3 million.
  • Profitability targets were exceeded for the 5th consecutive quarter.
  • Positive free cash flow was generated for the 2nd consecutive quarter.
  • Sequential improvement in gross retention was achieved.

Headline financials

Total Revenue

$37.3M

Previous: $42.1M-11.3%
EPS

-$0.27

Previous: $0.04-775.0%
Capital Expenditures

-$1.53M

Previous: -$732K-108.7%
Free Cash Flow

-$12.7M

Previous: -$13.6M+6.5%
Net Income

-$11.2M

Previous: -$12.8M+13.0%
Operating Income

-$13.1M

Previous: -$15.8M+17.2%
Gross Profit

$27.8M

Previous: $29.9M-6.9%
Cash & Equivalents

$15.5M

Previous: $25.2M-38.4%
Total Assets

$259M

Previous: $321M-19.2%
R&D Expense

$9.08M

No prior period
Stock-Based Comp

$12.1M

Previous: $11.6M+4.1%

Revenue & EPS history

ON24 · Revenue · Quarterly

$37.3M

Q2 2024-11.3%vs Q2 2023
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

ON24 · $40.5M total across 1 segment · Q2 2023

  • Core Platform
    $40.5M

Forward guidance

For the third quarter of 2024, ON24 expects total revenue of $35.0 million to $36.0 million and a non-GAAP operating loss of $2.3 million to $1.3 million.

Tailwinds

  • Core Platform Revenue, including services, to be in the range of $34.2 million to $35.2 million.
  • Total revenue of $35.0 million to $36.0 million.
  • Non-GAAP net loss per share of $(0.01) to non-GAAP net income per share of $0.01 using approximately 42.0 million basic and diluted shares outstanding and 46.0 million diluted shares outstanding, respectively.
  • Core Platform Revenue, including services, to be in the range of $141.7 million to $144.5 million for the full year 2024.
  • Total revenue of $145.0 million to $147.8 million for the full year 2024.

Headwinds

  • Non-GAAP operating loss of $2.3 million to $1.3 million.
  • Restructuring charge of $0.4 million to $0.7 million, excluded from the non-GAAP amounts above.
  • Non-GAAP operating loss of $4.5 million to $3.0 million for the full year 2024.
  • Variability of stock-based compensation expense may have a significant, and potentially unpredictable, impact on future GAAP financial results.
  • Variability of restructuring and transaction expenses may have a significant, and potentially unpredictable, impact on future GAAP financial results.

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 Q2 2024

Historical avgQ2 2024

-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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