Achieved Total Revenue of $37.3 million
Exceeded profitability targets for 5^th consecutive quarter
Generated positive free cash flow for 2^nd consecutive quarter
Drove sequential improvement in gross retention
Experienced growth ARR uplift from momentum of early adopters of the ON24 next gen platform and AI-powered offerings

ON24 (NYSE:ONTF), an intelligent engagement platform for B2B sales and marketing, today announced financial results for the second quarter ended June 30, 2024.

"I am pleased with our Q2 results, as we exceeded guidance on the top and bottom line and delivered positive free cash flow. I am encouraged by another quarter of improvement in gross retention, which is trending much better than the average rates we have seen for each of the past three years," said Sharat Sharan, co-founder and CEO of ON24. "Continued momentum of our next generation platform drove our AI-powered ACE ARR to the high teens as a percentage of growth ARR. We remain focused on driving profitable growth and establishing ourselves as the AI platform for intelligent digital engagement."

Second Quarter 2024 Financial Highlights

Revenue:
- Revenue from our Core Platform, including services, was $36.5 million.
- Total revenue was $37.3 million.
ARR:
- Core Platform ARR of $131.0 million as of June 30, 2024.
- Total ARR of $133.7 million as of June 30, 2024.

GAAP Operating Loss was $13.1 million, compared to GAAP operating loss of $15.8 million in the second quarter of 2023.
Non-GAAP Operating Loss was $0.3 million, compared to non-GAAP operating loss of $0.9 million in the second quarter of 2023.
GAAP Net Loss was $11.2 million, or $(0.27) per diluted share, compared to GAAP net loss of $12.8 million, or $(0.28) per diluted share in the second quarter of 2023.
Non-GAAP Net Income was $1.5 million, or $0.03 per diluted share, compared to non-GAAP net income of $2.1 million, or $0.04 per diluted share in the second quarter of 2023.
Adjusted EBITDA was $0.8 million.
Cash Flow: Net cash provided by operating activities was $1.4 million, compared to $4.3 million used in operating activities in the second quarter of 2023. Free cash flow was $0.9 million for the quarter, compared to $(4.9) million in the second quarter of 2023.
Cash, Cash Equivalents and Marketable Securities totaled $193.8 million as of June 30, 2024.

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.

Recent Business Highlights:

Drove sequential and YoY Core ARR growth in Q2 in life sciences and financial services verticals.
Thousands of ON24 customers and prospects gathered for annual virtual user conference, The ON24 Experience, on June 11 – 14, where industry-leading enterprises, including Autodesk, Guardian, SAP and UCB, were named winners of the 2024 ON24 Digital Engagement Excellence Awards for delivering exceptional customer experiences and significant revenue impact.

Financial Outlook

For the third quarter of 2024, ON24 expects:

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 operating loss of $2.3 million to $1.3 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.
- Restructuring charge of $0.4 million to $0.7 million, excluded from the non-GAAP amounts above.

For the full year 2024, ON24 now expects:

Core Platform Revenue, including services, to be in the range of $141.7 million to $144.5 million.
Total revenue of $145.0 million to $147.8 million.
Non-GAAP operating loss of $4.5 million to $3.0 million.
Non-GAAP net income per share of $0.05 to $0.08 per share using approximately 45.5 million 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 877-497-9071 or 201-689-8727.

A webcast and management's prepared remarks for today's call 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.

Definitions of Certain Key Business Metrics

Core Platform: The ON24 Core Platform products include:

ON24 Elite: live, interactive webinar experience that engages prospective customers in real-time and can be made available in an on-demand format.

ON24 Breakouts: live breakout room experience that facilitates networking, collaboration and interactivity between users.

ON24 Forums: live, interactive experience that facilitates video-to-video interaction between presenters and audiences.

ON24 Go Live: live, interactive video event experience that enables presenters and attendees to engage face-to-face in real-time and can also be made available in an on-demand format.

ON24 Engagement Hub: always-on, rich multimedia content experience that prospective customers can engage anytime, anywhere.

ON24 Target: personalize and curate, rich landing page experience that engages specific segments of prospective customers to drive desired action.

ON24 AI-powered ACE: the next generation AI-powered analytics and content engine.

Annual Recurring Revenue ("ARR"): ARR is calculated as the sum of the annualized value of our subscription contracts as of the measurement date, including existing customers with expired contracts that we expect to be renewed. Our ARR amounts exclude professional services, overages from subscription customers and Legacy revenue.

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 (loss), non-GAAP net income (loss), Adjusted EBITDA, and free cash flow in evaluating our operating performance. We define non-GAAP operating income (loss) as net income (loss) excluding, interest expense, other (income) expense, net, provision for income taxes, stock-based compensation, amortization of acquired intangible assets, shareholder activism related costs, restructuring costs, impairment charges for underutilized real estate, and certain other costs. We define non-GAAP net income (loss) as net income (loss) excluding stock-based compensation, amortization of acquired intangible assets, shareholder activism related costs, restructuring costs, charges for underutilized real estate, and certain other costs. We define Adjusted EBITDA as net income (loss) excluding interest expense, other (income) expense, net, provision for income taxes, depreciation and amortization, amortization of acquired intangible assets, amortization of cloud implementation costs, stock-based compensation, restructuring costs, impairment charges for underutilized real estate, and shareholder activism related costs. 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 (loss), non-GAAP net income (loss), and Adjusted EBITDA 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 (loss), non-GAAP net income (loss), and Adjusted EBITDA 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 tool for comparison.

We do not provide a quantitative reconciliation of the forward-looking non-GAAP financial measures included in this press release to the most directly comparable GAAP measures due to the high variability and difficulty to predict certain items excluded from these non-GAAP financial measures; in particular, the effects of stock-based compensation expense, and restructuring and transaction expenses. We expect the variability of these excluded items may have a significant, and potentially unpredictable, impact on our future GAAP financial results.

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," "target," "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 execution of our capital return program, the size of our market opportunity, the success of our new products and capabilities, including our new AI-powered Analytics and Content Engine, 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 attract new customers and expand sales to existing customers, decline in our growth rate; fluctuation in our performance, our history of net losses and expected increases in our expenses; competition and technological development in our markets and any decline in demand for our solutions; our ability to expand our sales and marketing capabilities and otherwise achieve our growth; the impact of the resumption of in-person marketing activities on our customer growth rate; 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 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.

ON24 provides industry-leading companies, including 3 of the 5 largest global technology companies, 3 of the 5 top global asset management firms, 3 of the 5 largest global healthcare companies and 3 of the 5 largest global industrial companies, with a valuable source of first-party data to drive sales and marketing innovation, improve efficiency and increase business results. Headquartered in San Francisco, ON24 has offices globally in North America, EMEA and APAC. For more information, visit www.ON24.com.

ON24, INC. Condensed Consolidated Balance Sheets (Unaudited) (in thousands)

	June 30, 2024			December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	15,485		$	53,209
Marketable securities		178,317			145,497
Accounts receivable, net		24,025			37,939
Deferred contract acquisition costs, current		11,932			12,428
Prepaid expenses and other current assets		6,246			4,714
Total current assets		236,005			253,787
Property and equipment, net		5,344			5,371
Operating right-of-use assets		2,269			2,981
Intangible asset, net		984			1,305
Deferred contract acquisition costs, non-current		13,391			15,756
Other long-term assets		1,019			1,102
Total assets	$	259,012		$	280,302
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	2,014		$	1,914
Accrued and other current liabilities		14,627			16,907
Deferred revenue		66,007			74,358
Finance lease liabilities, current		—			127
Operating lease liabilities, current		2,856			2,779
Total current liabilities		85,504			96,085
Operating lease liabilities, non-current		1,101			2,483
Other long-term liabilities		1,560			1,517
Total liabilities		88,165			100,085
Stockholders' equity
Common stock		4			4
Additional paid-in capital		498,574			485,291
Accumulated deficit		(327,391	)		(305,513	)
Accumulated other comprehensive income (loss)		(340	)		435
Total stockholders' equity		170,847			180,217
Total liabilities and stockholders' equity	$	259,012		$	280,302

ON24, INC. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data)

	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Revenue:
Subscription and other platform	$	34,147		$	38,336		$	68,976		$	77,700
Professional services		3,202			3,750			6,100			7,449
Total revenue		37,349			42,086			75,076			85,149
Cost of revenue:
Subscription and other platform⁽¹⁾⁽⁴⁾		7,032			9,066			14,378			18,955
Professional services⁽¹⁾⁽⁴⁾		2,506			3,134			4,942			6,451
Total cost of revenue		9,538			12,200			19,320			25,406
Gross profit		27,811			29,886			55,756			59,743
Operating expenses:
Sales and marketing⁽¹⁾⁽⁴⁾		19,457			22,628			39,531			47,045
Research and development^(1)(2)(4)		9,081			10,930			18,190			22,029
General and administrative^(1)(3)(4)		12,332			12,105			23,568			26,383
Total operating expenses		40,870			45,663			81,289			95,457
Loss from operations		(13,059	)		(15,777	)		(25,533	)		(35,714	)
Interest expense		10			33			21			62
Other income, net		(2,305	)		(3,193	)		(4,582	)		(5,765	)
Loss before provision for income taxes		(10,764	)		(12,617	)		(20,972	)		(30,011	)
Provision for income taxes		411			230			906			426
Net loss		(11,175	)		(12,847	)		(21,878	)		(30,437	)
Net loss per share:
Basic and diluted	$	(0.27	)	$	(0.28	)	$	(0.53	)	$	(0.65	)
Weighted-average shares used in computing net loss per share:
Basic and diluted		41,991,996			45,866,022			41,652,834			46,581,527

(1)

Includes stock-based compensation as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
		2024		2023		2024		2023
Cost of revenue
Subscription and other platform	$	687	$	709	$	1,355	$	1,494
Professional services		129		144		250		296
Total cost of revenue		816		853		1,605		1,790
Sales and marketing		3,338		3,555		6,396		6,612
Research and development		2,246		2,363		4,374		4,384
General and administrative		5,676		4,834		10,038		8,940
Total stock-based compensation expense	$	12,076	$	11,605	$	22,413	$	21,726

(2)		Research and development expense includes amortization of acquired intangible asset of $138 thousand and $276 thousand for the three and six months ended June 30, 2024, respectively, and $135 thousand and $277 thousand for the three and six months ended June 30, 2023, respectively, in connection with the Vibbio acquisition in April 2022.
(3)		General and administrative expense includes fees related to shareholder activism of $210 thousand and $2,656 thousand for the three and six months ended June 30, 2023, respectively. We did not incur such fees in the three and six months ended June 30, 2024.
(4)		The results of operations for the three and six months ended June 30, 2024 and 2023 includes restructuring costs, which primarily represent severance and related expense due to restructuring activities, and impairment charge on our headquarters' lease, as follows:

	Three Months Ended June 30, 2024						Six Months Ended June 30, 2024
	Severance and related Charges		Lease Impairment Charge		Total		Severance and related Charges		Lease Impairment Charge		Total
Cost of revenue
Subscription and other platform	$	21	$	—	$	21	$	213	$	—	$	213
Professional services		1		—		1		13		—		13
Total cost of revenue		22		—		22		226		—		226
Sales and marketing		330		—		330		1,005		—		1,005
Research and development		—		—		—		112		—		112
General and administrative		149		—		149		339		—		339
Total restructuring costs	$	501	$	—	$	501	$	1,682	$	—	$	1,682

	Three Months Ended June 30, 2023						Six Months Ended June 30, 2023
	Severance and related Charges		Lease Impairment Charge		Total		Severance and related Charges		Lease Impairment Charge		Total
Cost of revenue
Subscription and other platform	$	720	$	89	$	809	$	1,505	$	89	$	1,594
Professional services		50		101		151		104		101		205
Total cost of revenue		770		190		960		1,609		190		1,799
Sales and marketing		597		208		805		1,808		208		2,016
Research and development		340		472		812		1,113		472		1,585
General and administrative		52		339		391		282		339		621
Total restructuring costs	$	1,759	$	1,209	$	2,968	$	4,812	$	1,209	$	6,021

ON24, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Cash flows from operating activities:
Net loss	$	(11,175	)	$	(12,847	)	$	(21,878	)	$	(30,437	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1,221			1,375			2,454			2,792
Stock-based compensation expense		12,076			11,605			22,413			21,726
Amortization of deferred contract acquisition cost		3,752			3,951			7,595			7,844
Provision for allowance for doubtful accounts and billing reserves		576			798			1,201			1,699
Non-cash lease expense		388			444			779			941
Accretion of marketable securities		(1,428	)		(1,885	)		(2,935	)		(3,711	)
Lease impairment charge		—			1,209			—			1,209
Other		35			28			70			156
Change in operating assets and liabilities:
Accounts receivable		3,922			1,339			12,713			10,744
Deferred contract acquisition cost		(2,305	)		(2,717	)		(4,734	)		(6,263	)
Prepaid expenses and other assets		635			1,221			(1,743	)		(848	)
Accounts payable		478			882			344			(471	)
Accrued liabilities		1,014			(1,658	)		(2,888	)		(2,747	)
Deferred revenue		(7,110	)		(6,707	)		(8,351	)		(8,994	)
Other liabilities		(691	)		(1,354	)		(1,514	)		(2,123	)
Net cash provided by (used in) operating activities		1,388			(4,316	)		3,526			(8,483	)
Cash flows from investing activities:
Purchase of property and equipment		(490	)		(554	)		(1,528	)		(732	)
Purchase of marketable securities		(52,328	)		(76,234	)		(126,421	)		(195,825	)
Proceeds from maturities of marketable securities		53,127			77,260			91,648			276,470
Proceeds from sale of marketable securities		—			—			4,360			9,321
Net cash provided by (used in) investing activities		309			472			(31,941	)		89,234
Cash flows from financing activities:
Proceeds from exercise of stock options		241			629			994			884
Proceeds from issuance of common stock under ESPP		367			546			367			546
Payment for repurchase of common stock		(5,006	)		(22,586	)		(10,276	)		(33,306	)
Payment of cash dividend		—			(49,872	)		—			(49,872	)
Repayment of equipment loans		(36	)		(60	)		(72	)		(131	)
Repayment of finance lease obligations		(44	)		(531	)		(127	)		(942	)
Net cash used in financing activities		(4,478	)		(71,874	)		(9,114	)		(82,821	)
Effect of exchange rate changes on cash, cash equivalents and restricted cash		(24	)		99			(197	)		229
Net decrease in cash, cash equivalents and restricted cash		(2,805	)		(75,619	)		(37,726	)		(1,841	)
Cash, cash equivalents and restricted cash, beginning of period		18,377			100,947			53,298			27,169
Cash, cash equivalents and restricted cash, end of period	$	15,572		$	25,328		$	15,572		$	25,328
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets:
Cash and cash equivalents	$	15,485		$	25,158		$	15,485		$	25,158
Restricted cash included in other assets, non-current		87			170			87			170
Total cash, cash equivalent and restricted cash	$	15,572		$	25,328		$	15,572		$	25,328

ON24, INC. Reconciliation of GAAP to Non-GAAP Results (Unaudited) (in thousands, except share and per share data)

Reconciliation of gross profit and gross margin
	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
GAAP gross profit	$	27,811		$	29,886		$	55,756		$	59,743
Add:
Stock-based compensation		816			853			1,605			1,790
Restructuring costs		22			770			226			1,609
Impairment charge		—			190			—			190
Non-GAAP gross profit	$	28,649		$	31,699		$	57,587		$	63,332
GAAP gross margin		74	%		71	%		74	%		70	%
Non-GAAP gross margin		77	%		75	%		77	%		74	%

Reconciliation of operating expenses
	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
GAAP sales and marketing	$	19,457		$	22,628		$	39,531		$	47,045
Less:
Stock-based compensation		(3,338	)		(3,555	)		(6,396	)		(6,612	)
Restructuring costs		(330	)		(597	)		(1,005	)		(1,808	)
Impairment charge		—			(208	)		—			(208	)
Non-GAAP sales and marketing	$	15,789		$	18,268		$	32,130		$	38,417

GAAP research and development	$	9,081		$	10,930		$	18,190		$	22,029
Less:
Stock-based compensation		(2,246	)		(2,363	)		(4,374	)		(4,384	)
Restructuring costs		—			(340	)		(112	)		(1,113	)
Impairment charge		—			(472	)		—			(472	)
Amortization of acquired intangible asset		(138	)		(135	)		(276	)		(277	)
Non-GAAP research and development	$	6,697		$	7,620		$	13,428		$	15,783

GAAP general and administrative	$	12,332		$	12,105		$	23,568		$	26,383
Less:
Stock-based compensation		(5,676	)		(4,834	)		(10,038	)		(8,940	)
Restructuring costs		(149	)		(52	)		(339	)		(282	)
Impairment charge		—			(339	)		—			(339	)
Fees related to shareholder activism		—			(210	)		—			(2,656	)
Non-GAAP general and administrative	$	6,507		$	6,670		$	13,191		$	14,166

ON24, INC. Reconciliation of GAAP to Non-GAAP Results (in thousands, except share and per share data) (Unaudited)


Reconciliation of net loss to non-GAAP operating loss
	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Net loss	$	(11,175	)	$	(12,847	)	$	(21,878	)	$	(30,437	)
Add:
Interest expense		10			33			21			62
Other income, net		(2,305	)		(3,193	)		(4,582	)		(5,765	)
Provision for income taxes		411			230			906			426
Stock-based compensation		12,076			11,605			22,413			21,726
Amortization of acquired intangible asset		138			135			276			277
Restructuring costs		501			1,759			1,682			4,812
Impairment charge		—			1,209			—			1,209
Fees related to shareholder activism		—			210			—			2,656
Non-GAAP operating loss	$	(344	)	$	(859	)	$	(1,162	)	$	(5,034	)

Reconciliation of net loss to Adjusted EBITDA
	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Net loss	$	(11,175	)	$	(12,847	)	$	(21,878	)	$	(30,437	)
Add:
Interest expense		10			33			21			62
Other income, net		(2,305	)		(3,193	)		(4,582	)		(5,765	)
Provision for income taxes		411			230			906			426
Depreciation and amortization		1,083			1,240			2,178			2,515
Amortization of acquired intangible asset		138			135			276			277
Amortization of cloud implementation costs		35			37			71			74
Stock-based compensation		12,076			11,605			22,413			21,726
Restructuring costs		501			1,759			1,682			4,812
Impairment charge		—			1,209			—			1,209
Fees related to shareholder activism		—			210			—			2,656
Adjusted EBITDA	$	774		$	418		$	1,087		$	(2,445	)

Reconciliation of net loss to non-GAAP net income
	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Net loss	$	(11,175	)	$	(12,847	)	$	(21,878	)	$	(30,437	)
Add:
Stock-based compensation		12,076			11,605			22,413			21,726
Amortization of acquired intangible asset		138			135			276			277
Restructuring costs		501			1,759			1,682			4,812
Impairment charge		—			1,209			—			1,209
Fees related to shareholder activism		—			210			—			2,656
Non-GAAP net income	$	1,540		$	2,071		$	2,493		$	243

ON24, INC. Reconciliation of GAAP to Non-GAAP Results (in thousands, except share and per share data) (Unaudited)

Reconciliation of GAAP to Non-GAAP basic and diluted net income (loss) per share

	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
GAAP basic and diluted net loss per share:
Net loss	$	(11,175	)	$	(12,847	)	$	(21,878	)	$	(30,437	)
Weighted average common stock outstanding, basic and diluted		41,991,996			45,866,022			41,652,834			46,581,527
Net loss per share, basic and diluted	$	(0.27	)	$	(0.28	)	$	(0.53	)	$	(0.65	)

	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Non-GAAP basic and diluted net income per share:
Net loss	$	(11,175	)	$	(12,847	)	$	(21,878	)	$	(30,437	)
Add:
Stock-based compensation		12,076			11,605			22,413			21,726
Amortization of acquired intangible asset		138			135			276			277
Restructuring costs		501			1,759			1,682			4,812
Impairment charge		—			1,209			—			1,209
Fees related to shareholder activism		—			210			—			2,656
Non-GAAP net income	$	1,540		$	2,071		$	2,493		$	243
Non-GAAP weighted-average common stock outstanding
Basic		41,991,996			45,866,022			41,652,834			46,581,527
Diluted		45,802,883			50,716,390			45,713,706			51,120,544
Non-GAAP net income per share of common stock:
Basic	$	0.04		$	0.05		$	0.06		$	0.01
Diluted	$	0.03		$	0.04		$	0.05		$	—

ON24, INC. Reconciliation of GAAP to Non-GAAP Results (in thousands) (Unaudited)


Reconciliation of GAAP Cash Flow from Operating Activities to Free Cash Flow

	Three Months Ended June 30,						Six Months Ended June 30,
		2024			2023			2024			2023
Net cash provided by (used in) operating activities:	$	1,388		$	(4,316	)	$	3,526		$	(8,483	)
Less: Purchases of property and equipment		(490	)		(554	)		(1,528	)		(732	)
Free cash flow	$	898		$	(4,870	)	$	1,998		$	(9,215	)

ON24, INC. Revenue (in thousands) (Unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
		2024		2023		2024		2023
Core Platform
Subscription and other platform	$	33,479	$	37,000	$	67,539	$	74,811
Professional services		3,006		3,460		5,761		6,855
Total core platform revenue	$	36,485	$	40,460	$	73,300	$	81,666

Virtual Conference
Subscription and other platform	$	668	$	1,336	$	1,437	$	2,889
Professional services		196		290		339		594
Total virtual conference revenue	$	864	$	1,626	$	1,776	$	3,483

Revenue
Subscription and other platform	$	34,147	$	38,336	$	68,976	$	77,700
Professional services		3,202		3,750		6,100		7,449
Total revenue	$	37,349	$	42,086	$	75,076	$	85,149

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ON24 Announces Second Quarter 2024 Financial Results