On November 7, 2023, ON24 Inc (ONTF, Financial), a leading B2B digital engagement platform, released its financial results for the third quarter ended September 30, 2023. The company reported total revenue of $39.2 million, surpassing its profitability targets for the quarter. ON24 Inc (ONTF) also announced the launch of its new AI-powered solution, ACE, "Analytics and Content Engine," and continued its capital return program, returning approximately $25 million to stockholders in Q3.
Financial Performance Overview
ON24 Inc (ONTF, Financial) achieved a Core Platform revenue, including services, of $38.1 million, contributing to the total revenue of $39.2 million. The company's Annual Recurring Revenue (ARR) for its Core Platform stood at $136.5 million as of September 30, 2023, with total ARR reaching $140.2 million. The GAAP Operating Loss was reduced to $14.1 million from $14.8 million in the third quarter of 2022. Notably, the Non-GAAP Operating Loss improved significantly to $1.1 million, compared to a loss of $3.6 million in the same period last year.
ON24 Inc (ONTF, Financial) also reported a GAAP Net Loss of $11.5 million, or $(0.26) per diluted share, which is an improvement from a net loss of $14.4 million, or $(0.30) per diluted share, in Q3 2022. The Non-GAAP Net Income was $1.5 million, or $0.03 per diluted share, a positive shift from a non-GAAP net loss of $3.3 million, or $(0.07) per diluted share, in the prior year's quarter. Adjusted EBITDA stood at $0.1 million.
Balance Sheet and Cash Flow
ON24 Inc (ONTF, Financial) ended the quarter with $213.7 million in cash, cash equivalents, and marketable securities. Net cash used in operating activities was $2.9 million, an improvement from $3.5 million used in the same quarter of 2022. The company's free cash flow was negative $3.2 million for the quarter, which is also an improvement compared to negative $4.2 million in Q3 2022.
Future Outlook
For the fourth quarter of 2023, ON24 Inc (ONTF, Financial) expects Core Platform Revenue to be in the range of $35.8 million to $36.8 million, with total revenue projected between $36.8 million and $37.8 million. The company anticipates a Non-GAAP operating loss of $1.4 million to $0.8 million and a Non-GAAP net income per share of $0.01 to $0.02. ON24 Inc (ONTF) has raised its full-year 2023 guidance, now expecting Core Platform Revenue to be between $155.6 million and $156.6 million, and total revenue to range from $161.2 million to $162.2 million.
Sharat Sharan, co-founder and CEO of ON24, expressed confidence in the company's strategic growth pillars and the launch of ACE, which is expected to drive the next generation of customer experiences. Sharan highlighted the company's internal progress and stability in the renewal base as reasons for the raised full-year guidance and optimism for growth in 2024.
ON24 Inc (ONTF, Financial) continues to differentiate itself as an enterprise-grade, secure platform, achieving ISO certifications and gaining traction with highly regulated industries. The company was recognized for its solution offering and customer satisfaction by Research in Action, a third-party tech analyst firm.
Investors and analysts are encouraged to review the full financial details and listen to the webcast of the earnings call for further insights into ON24 Inc (ONTF, Financial)'s performance and strategic initiatives.
For more detailed financial information and reconciliations of non-GAAP financial measures to their most directly comparable GAAP measures, please refer to the tables at the end of the press release.
Explore the complete 8-K earnings release (here) from ON24 Inc for further details.
