ON24 Announces Fourth Quarter and Full Year 2022 Financial Results
ON24 (NYSE: ONTF) reported Q4 and FY 2022 financial results, showing efforts to accelerate profitability amid challenging market conditions. Core Platform ARR totaled $152.6 million, down 3% YoY, while total revenue decreased 11% to $46.6 million. A significant capital return program of $100 million includes a $0.50 per share special dividend and share buybacks. Despite GAAP net losses widening to $(12.1) million, the company anticipates reaching breakeven non-GAAP EPS by Q2 2023, two quarters ahead of expectations. For Q1 2023, revenue guidance is set at $42.0 to $43.0 million, reflecting expected declines in ARR.
- Introduced a $100 million capital return program to enhance shareholder value.
- Expecting breakeven non-GAAP EPS in Q2 2023, ahead of previous guidance.
- Core Platform ARR growth in life sciences and professional services verticals.
- Core Platform ARR decreased by 3% YoY, indicating revenue challenges.
- Q4 total revenue fell 11% YoY to $46.6 million.
- Professional Services revenue dropped significantly, down 36% YoY.
- Accelerating path to profitability in FY 2023
-
Deemphasizing Virtual Conference product and focused on Core Platform -
Launching
capital return program comprising$100 million per share special cash dividend and approximately$0.50 through a combination of accelerated share repurchase and share buyback program$75 million
“In Q4 we were pleased to deliver improvement in our Core Platform’s in-period gross dollar retention metrics and ARR growth in the life sciences and professional services verticals, however, we were impacted in the technology and manufacturing verticals given the current macroeconomic environment, which had a larger impact on our ARR results,” said
“We are simultaneously taking decisive steps to accelerate our path to profitability and expect to achieve breakeven, non-GAAP EPS in the second quarter of 2023, two quarters ahead of our initial expectations. We are making significant adjustments to our cost structure through employee and non-employee related cost reductions. We are intensely focused on delivering long-term shareholder value, and our confidence in our strategy and outlook is underscored by our recently announced new
Fourth Quarter 2022 Financial Highlights
-
Core Platform ARR of
as of$152.6 million December 31, 2022 , a decrease of3% year-over-year. -
Total ARR of
as of$159.6 million December 31, 2022 , a decrease of7% year-over-year. -
Revenue:
-
Revenue from our Core Platform, including services, was
, a decrease of$44.2 million 7% year-over-year. -
Total revenue was
, a decrease of$46.6 million 11% year-over-year. -
Subscription and Other Platform Revenue was
, a decrease of$42 million 7% year-over-year. -
Professional Services Revenue was
, a decrease of$4.5 million 36% year-over-year.
-
Revenue from our Core Platform, including services, was
-
GAAP Operating Loss was
, compared to GAAP operating loss of$13.6 million in the fourth quarter of 2021.$9.6 million -
Non-GAAP Operating Loss was
, compared to non-GAAP operating loss of$3.5 million in the fourth quarter of 2021.$1.8 million -
GAAP Net Loss attributable to common stockholders was
, or$12.1 million per diluted share, compared to GAAP net loss attributable to common stockholders of$(0.25) , or$9.5 million per diluted share in the fourth quarter of 2021.$(0.20) -
Non-GAAP Net Loss was
, or$2.0 million per diluted share, compared to a non-GAAP net loss of$(0.04) , or$1.7 million per diluted share in the fourth quarter of 2021.$(0.03) -
Cash Flow: Net cash used in operating activities was
, compared to$7.6 million used in operating activities in the fourth quarter of 2021. Free cash flow was negative$4.5 million for the quarter, compared to negative$8.9 million in the fourth quarter of 2021.$5.6 million -
Cash,
Cash Equivalents and Marketable Securities totaled as of$328.1 million December 31, 2022 .
Full Year 2022 Financial Highlights
-
Revenue:
-
Revenue from our Core Platform, including services, was
, a decrease of$177.8 million 3% year-over-year. -
Total revenue was
, a decrease of$190.9 million 6% year-over-year. -
Subscription and Other Platform Revenue was
, a decrease of$171.8 million 2% year-over-year. -
Professional Services Revenue was
, a decrease of$19 million 31% year-over-year.
-
Revenue from our Core Platform, including services, was
-
GAAP Operating Loss was
, compared to GAAP operating loss of$59.6 million in 2021.$23.6 million -
Non-GAAP Operating Loss was
, compared to non-GAAP operating income of$18.9 million in 2021.$2.1 million -
GAAP Net Loss attributable to common stockholders was
, or$58.2 million per diluted share, compared to GAAP net loss attributable to common stockholders of$(1.23) , or$24.8 million per diluted share in 2021.$(0.57) -
Non-GAAP Net Loss was
, or$17.6 million per diluted share, compared to a non-GAAP net income of$(0.37) , or$1.4 million per diluted share in 2021.$0.03 -
Cash Flow: Net cash used in operating activities was
, compared to$20.5 million gained in operating activities in 2021. Free cash flow was negative$5.2 million for the year, compared to$24.2 million in 2021.$1.6 million
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.
As previously announced on
The Board and management are committed to reviewing ON24’s capital allocation initiatives on an ongoing basis and may determine to augment these programs as the Company sees how the next few quarters progress.
The Company notes that its capital return authorization does not constitute a legal obligation to issue dividends or repurchase shares. The timing, amount of any dividend, number of shares repurchased, and prices paid for the repurchased shares under this program will be at the discretion of management and will depend on market conditions as well as regulatory limitations, including applicable blackout period restrictions.
Full Year 2022 Customer Metrics
As of
-
Core Platform Dollar-based Net Retention (NRR) was
90% -
Core Platform Dollar-based NRR for Enterprises (customers with over 2,000 employees) was
93% -
Multi-Year Contracts:
41% of total ARR comprises multi-year contracts -
Multi-Product Customers:
36% of customers using two or more products
Recent Business Highlights:
-
Record-high rates of engagement across the
ON24 platform in 2022 with number of unique interactions per attendee at record levels - Experienced mid-single digit percentage growth in Core Platform ARR from customers in the life sciences and professional services verticals
- Q4 2022 marked highest level of the year in total Core Platform ARR contribution from multiyear contracts and new products launched in 2022
- Experienced notable customer expansions in Q4 with average Core Platform ARR per customer at its highest level in 2022
Financial Outlook
“Our outlook for 2023 reflects the expectation for continued macro uncertainty resulting in greater budget scrutiny from customers, particularly in the technology vertical, which accounts for over one-third of our Core Platform ARR, which we expect will impact our Core Platform ARR growth in Q1 and Q2,” said
For the first quarter of 2023,
-
Core Platform Revenue, including services, to decline to
10% -7% and be in the range of to$40.2 .$41.2 million -
Total revenue of
to$42.0 .$43.0 million -
Non-GAAP operating loss of
to$5.4 .$4.4 million -
Non-GAAP net loss per share of
to$(0.08) using approximately 47.5 million basic and diluted shares outstanding.$(0.06) -
Restructuring charge of
to$3.8 , excluded from non-GAAP amounts above.$4.3 million
For the full year 2023,
-
Core Platform Revenue, including services, to decline to
10% -7% and be in the range of to$160 .$165 million -
Total revenue of
to$165 .$170 million -
Non-GAAP operating loss of
to$11.0 .$8.0 million -
Non-GAAP net loss per share of
to$(0.08) using approximately 45.7 million basic and diluted shares outstanding.$(0.01) -
Restructuring charge of
to$3.8 , excluded from non-GAAP amounts above.$4.3 million
Conference Call Information
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.
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
We use non-GAAP operating income (loss) and non-GAAP net income (loss) 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) and non-GAAP net income (loss) 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.
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,” “convert,” “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, the impact of the COVID-19 pandemic and vaccines on the way people do business, 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; the decline in our growth rate; the success of our new products and capabilities; 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 manage our growth; the impact of the COVID-19 pandemic; 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
About
© 2023
|
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(in thousands) |
|||||||
(Unaudited) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
26,996 |
|
|
$ |
164,948 |
|
Marketable securities |
|
301,125 |
|
|
|
217,609 |
|
Accounts receivable, net |
|
43,757 |
|
|
|
46,117 |
|
Deferred contract acquisition costs, current |
|
13,136 |
|
|
|
11,921 |
|
Prepaid expenses and other current assets |
|
6,281 |
|
|
|
8,467 |
|
Total current assets |
|
391,295 |
|
|
|
449,062 |
|
Property and equipment, net |
|
7,212 |
|
|
|
8,780 |
|
Operating right-of-use assets |
|
5,606 |
|
|
|
— |
|
Intangible asset, net |
|
1,979 |
|
|
|
— |
|
Deferred contract acquisition costs, non-current |
|
17,773 |
|
|
|
20,887 |
|
Other long-term assets |
|
1,608 |
|
|
|
1,760 |
|
Total assets |
$ |
425,473 |
|
|
$ |
480,489 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
4,611 |
|
|
$ |
3,123 |
|
Accrued and other current liabilities |
|
18,465 |
|
|
|
19,011 |
|
Deferred revenue |
|
83,453 |
|
|
|
96,225 |
|
Finance lease liabilities, current |
|
1,554 |
|
|
|
1,768 |
|
Operating lease liabilities, current |
|
2,648 |
|
|
|
— |
|
Total current liabilities |
|
110,731 |
|
|
|
120,127 |
|
Finance lease liabilities, non-current |
|
91 |
|
|
|
1,648 |
|
Operating lease liabilities, non-current |
|
5,040 |
|
|
|
— |
|
Other long-term liabilities |
|
1,650 |
|
|
|
3,624 |
|
Total liabilities |
|
117,512 |
|
|
|
125,399 |
|
Stockholders’ equity |
|
|
|
||||
Common stock |
|
5 |
|
|
|
5 |
|
Additional paid-in capital |
|
562,555 |
|
|
|
550,839 |
|
Accumulated deficit |
|
(253,727 |
) |
|
|
(195,519 |
) |
Accumulated other comprehensive loss |
|
(872 |
) |
|
|
(235 |
) |
Total stockholders’ equity |
|
307,961 |
|
|
|
355,090 |
|
Total liabilities and stockholders’ equity |
$ |
425,473 |
|
|
$ |
480,489 |
|
|
|
|
|
|
|||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||
(in thousands, except share and per share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Subscription and other platform |
$ |
42,029 |
|
|
$ |
44,988 |
|
|
$ |
171,841 |
|
|
$ |
175,876 |
|
Professional services |
|
4,538 |
|
|
|
7,046 |
|
|
|
19,031 |
|
|
|
27,737 |
|
Total revenue |
|
46,567 |
|
|
|
52,034 |
|
|
|
190,872 |
|
|
|
203,613 |
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
Subscription and other platform(1)(3) |
|
9,561 |
|
|
|
9,018 |
|
|
|
39,241 |
|
|
|
33,400 |
|
Professional services(1)(3) |
|
3,677 |
|
|
|
3,713 |
|
|
|
13,544 |
|
|
|
13,965 |
|
Total cost of revenue |
|
13,238 |
|
|
|
12,731 |
|
|
|
52,785 |
|
|
|
47,365 |
|
Gross profit |
|
33,329 |
|
|
|
39,303 |
|
|
|
138,087 |
|
|
|
156,248 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Sales and marketing(1)(3) |
|
25,003 |
|
|
|
28,082 |
|
|
|
109,599 |
|
|
|
104,063 |
|
Research and development(1)(2)(3) |
|
11,186 |
|
|
|
9,613 |
|
|
|
44,102 |
|
|
|
34,835 |
|
General and administrative(1)(3) |
|
10,770 |
|
|
|
11,221 |
|
|
|
43,969 |
|
|
|
40,940 |
|
Total operating expenses |
|
46,959 |
|
|
|
48,916 |
|
|
|
197,670 |
|
|
|
179,838 |
|
Loss from operations |
|
(13,630 |
) |
|
|
(9,613 |
) |
|
|
(59,583 |
) |
|
|
(23,590 |
) |
Interest expense |
|
36 |
|
|
|
62 |
|
|
|
181 |
|
|
|
464 |
|
Other (income) expense, net |
|
(2,331 |
) |
|
|
54 |
|
|
|
(2,514 |
) |
|
|
487 |
|
Loss before provision for (benefit from) income taxes |
|
(11,335 |
) |
|
|
(9,729 |
) |
|
|
(57,250 |
) |
|
|
(24,541 |
) |
Provision for (benefit from) income taxes |
|
795 |
|
|
|
(220 |
) |
|
|
958 |
|
|
|
(285 |
) |
Net loss |
|
(12,130 |
) |
|
|
(9,509 |
) |
|
|
(58,208 |
) |
|
|
(24,256 |
) |
Cumulative preferred dividends allocated to preferred stockholders |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(558 |
) |
Net loss attributable to common stockholders |
$ |
(12,130 |
) |
|
$ |
(9,509 |
) |
|
$ |
(58,208 |
) |
|
$ |
(24,814 |
) |
Net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
$ |
(0.25 |
) |
|
$ |
(0.20 |
) |
|
$ |
(1.23 |
) |
|
$ |
(0.57 |
) |
Weighted-average shares used in computing net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
|
47,996,905 |
|
|
|
47,752,653 |
|
|
|
47,486,225 |
|
|
|
43,562,604 |
|
(1) Includes stock-based compensation as follows: |
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Cost of revenue |
|
|
|
|
|
|
|
||||||||
Subscription and other platform |
$ |
835 |
|
$ |
707 |
|
$ |
3,375 |
|
$ |
1,897 |
||||
Professional services |
|
171 |
|
|
134 |
|
|
676 |
|
|
382 |
||||
Total cost of revenue |
|
1,006 |
|
|
841 |
|
|
4,051 |
|
|
2,279 |
||||
Sales and marketing |
|
3,318 |
|
|
3,179 |
|
|
14,304 |
|
|
8,806 |
||||
Research and development |
|
2,033 |
|
|
1,523 |
|
|
7,958 |
|
|
4,402 |
||||
General and administrative |
|
3,078 |
|
|
2,312 |
|
|
12,230 |
|
|
10,163 |
||||
Total stock-based compensation expense |
$ |
9,435 |
|
$ |
7,855 |
|
$ |
38,543 |
|
$ |
25,650 |
(2) |
Research and development expense for the three and twelve months ended |
|
(3) |
Includes restructuring costs, which primarily represent severance and related expense due to restructuring activities, as follows. |
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Cost of revenue |
|
|
|
|
|
|
|
||||||||
Subscription and other platform |
$ |
— |
|
$ |
— |
|
$ |
363 |
|
$ |
— |
||||
Professional services |
|
— |
|
|
— |
|
|
27 |
|
|
— |
||||
Total cost of revenue |
|
— |
|
|
— |
|
|
390 |
|
|
— |
||||
Sales and marketing |
|
564 |
|
|
— |
|
|
1,146 |
|
|
— |
||||
Research and development |
|
25 |
|
|
— |
|
|
86 |
|
|
— |
||||
General and administrative |
|
— |
|
|
— |
|
|
37 |
|
|
— |
||||
Total restructuring costs |
$ |
589 |
|
$ |
— |
|
$ |
1,659 |
|
$ |
— |
||||
|
|||||||||||||||
Condensed Consolidated Statements of Cash Flows |
|||||||||||||||
(In thousands) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(12,130 |
) |
|
$ |
(9,509 |
) |
|
$ |
(58,208 |
) |
|
$ |
(24,256 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
1,463 |
|
|
|
1,169 |
|
|
|
5,416 |
|
|
|
4,592 |
|
Stock-based compensation expense |
|
9,435 |
|
|
|
7,855 |
|
|
|
38,543 |
|
|
|
25,650 |
|
Amortization of deferred contract acquisition cost |
|
3,815 |
|
|
|
3,943 |
|
|
|
15,665 |
|
|
|
15,248 |
|
Provision for allowance for doubtful accounts and billing reserve |
|
715 |
|
|
|
1,667 |
|
|
|
1,918 |
|
|
|
2,943 |
|
Non-cash lease expense |
|
487 |
|
|
|
— |
|
|
|
1,962 |
|
|
|
— |
|
Other |
|
(1,069 |
) |
|
|
312 |
|
|
|
(1,083 |
) |
|
|
503 |
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
(13,259 |
) |
|
|
(10,986 |
) |
|
|
482 |
|
|
|
(443 |
) |
Deferred contract acquisition cost |
|
(3,726 |
) |
|
|
(4,828 |
) |
|
|
(13,766 |
) |
|
|
(18,775 |
) |
Prepaid expenses and other assets |
|
2,303 |
|
|
|
741 |
|
|
|
2,298 |
|
|
|
(4,617 |
) |
Accounts payable |
|
1,270 |
|
|
|
972 |
|
|
|
1,533 |
|
|
|
(1,247 |
) |
Accrued liabilities |
|
1,399 |
|
|
|
(811 |
) |
|
|
30 |
|
|
|
2,311 |
|
Deferred revenue |
|
2,424 |
|
|
|
5,040 |
|
|
|
(12,807 |
) |
|
|
3,985 |
|
Other non-current liabilities |
|
(695 |
) |
|
|
(57 |
) |
|
|
(2,444 |
) |
|
|
(705 |
) |
Net cash (used in) provided by operating activities |
|
(7,568 |
) |
|
|
(4,492 |
) |
|
|
(20,461 |
) |
|
|
5,189 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Purchase of property and equipment |
|
(1,297 |
) |
|
|
(1,124 |
) |
|
|
(3,697 |
) |
|
|
(3,564 |
) |
Acquisition, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
(2,495 |
) |
|
|
— |
|
Purchase of marketable securities |
|
(86,095 |
) |
|
|
(28,766 |
) |
|
|
(297,405 |
) |
|
|
(235,805 |
) |
Proceeds from maturities of marketable securities |
|
72,407 |
|
|
|
8,778 |
|
|
|
194,372 |
|
|
|
20,179 |
|
Proceeds from sale of marketable securities |
|
20,244 |
|
|
|
— |
|
|
|
20,244 |
|
|
|
— |
|
Net cash used in investing activities |
|
5,259 |
|
|
|
(21,112 |
) |
|
|
(88,981 |
) |
|
|
(219,190 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
Proceeds from initial public offering, net of underwriting discounts |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
353,397 |
|
Proceeds from exercise of stock options |
|
318 |
|
|
|
1,232 |
|
|
|
2,785 |
|
|
|
5,514 |
|
Proceeds from issuance of common stock under ESPP |
|
749 |
|
|
|
1,054 |
|
|
|
1,582 |
|
|
|
1,054 |
|
Payment of tax withholding obligations related to net share settlements on equity awards |
|
— |
|
|
|
(1,607 |
) |
|
|
(1,756 |
) |
|
|
(3,608 |
) |
Payment for repurchase of common stock |
|
(7,319 |
) |
|
|
(7,228 |
) |
|
|
(29,127 |
) |
|
|
(7,228 |
) |
Repayment of equipment loans and borrowings |
|
(69 |
) |
|
|
(65 |
) |
|
|
(270 |
) |
|
|
(22,597 |
) |
Repayment of finance lease obligations |
|
(433 |
) |
|
|
(419 |
) |
|
|
(1,832 |
) |
|
|
(2,304 |
) |
Payment of offering costs |
|
— |
|
|
|
(233 |
) |
|
|
— |
|
|
|
(3,714 |
) |
Net cash (used in) provided by financing activities |
|
(6,754 |
) |
|
|
(7,266 |
) |
|
|
(28,618 |
) |
|
|
320,514 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(301 |
) |
|
|
31 |
|
|
|
186 |
|
|
|
185 |
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
(9,364 |
) |
|
|
(32,839 |
) |
|
|
(137,874 |
) |
|
|
106,698 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
36,533 |
|
|
|
197,882 |
|
|
|
165,043 |
|
|
|
58,345 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
27,169 |
|
|
$ |
165,043 |
|
|
$ |
27,169 |
|
|
$ |
165,043 |
|
|
|||||||||||||||
Reconciliation of GAAP to Non-GAAP Results |
|||||||||||||||
(in thousands, except share and per share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Reconciliation of gross profit and gross margin |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
GAAP gross profit |
$ |
33,329 |
|
|
$ |
39,303 |
|
|
$ |
138,087 |
|
|
$ |
156,248 |
|
Add: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
1,006 |
|
|
|
841 |
|
|
|
4,051 |
|
|
|
2,279 |
|
Restructuring costs |
|
— |
|
|
|
— |
|
|
|
390 |
|
|
|
— |
|
Non-GAAP gross profit |
$ |
34,335 |
|
|
$ |
40,144 |
|
|
$ |
142,528 |
|
|
$ |
158,527 |
|
GAAP gross margin |
|
72 |
% |
|
|
76 |
% |
|
|
72 |
% |
|
|
77 |
% |
Non-GAAP gross margin |
|
74 |
% |
|
|
77 |
% |
|
|
75 |
% |
|
|
78 |
% |
Reconciliation of operating expenses |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
GAAP sales and marketing |
$ |
25,003 |
|
|
$ |
28,082 |
|
|
$ |
109,599 |
|
|
$ |
104,063 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
(3,318 |
) |
|
|
(3,179 |
) |
|
|
(14,304 |
) |
|
|
(8,806 |
) |
Restructuring costs |
|
(564 |
) |
|
|
— |
|
|
|
(1,146 |
) |
|
|
— |
|
Non-GAAP sales and marketing |
$ |
21,121 |
|
|
$ |
24,903 |
|
|
$ |
94,149 |
|
|
$ |
95,257 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP research and development |
$ |
11,186 |
|
|
$ |
9,613 |
|
|
$ |
44,102 |
|
|
$ |
34,835 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
(2,033 |
) |
|
|
(1,523 |
) |
|
|
(7,958 |
) |
|
|
(4,402 |
) |
Restructuring costs |
|
(25 |
) |
|
|
— |
|
|
|
(86 |
) |
|
|
— |
|
Amortization of acquired intangible asset |
|
(149 |
) |
|
|
— |
|
|
|
(434 |
) |
|
|
— |
|
Non-GAAP research and development |
$ |
8,979 |
|
|
$ |
8,090 |
|
|
$ |
35,624 |
|
|
$ |
30,433 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP General and administrative |
$ |
10,770 |
|
|
$ |
11,221 |
|
|
$ |
43,969 |
|
|
$ |
40,940 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
(3,078 |
) |
|
|
(2,312 |
) |
|
|
(12,230 |
) |
|
|
(10,163 |
) |
Restructuring costs |
|
— |
|
|
|
— |
|
|
|
(37 |
) |
|
|
— |
|
Non-GAAP General and administrative |
$ |
7,692 |
|
|
$ |
8,909 |
|
|
$ |
31,702 |
|
|
$ |
30,777 |
|
|
|||||||||||||||
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) income |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net loss |
$ |
(12,130 |
) |
|
$ |
(9,509 |
) |
|
$ |
(58,208 |
) |
|
$ |
(24,256 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
36 |
|
|
|
62 |
|
|
|
181 |
|
|
|
464 |
|
Other (income) expense, net |
|
(2,331 |
) |
|
|
54 |
|
|
|
(2,514 |
) |
|
|
487 |
|
Provision for (benefit from) income taxes |
|
795 |
|
|
|
(220 |
) |
|
|
958 |
|
|
|
(285 |
) |
Stock-based compensation |
|
9,435 |
|
|
|
7,855 |
|
|
|
38,543 |
|
|
|
25,650 |
|
Amortization of acquired intangible asset |
|
149 |
|
|
|
— |
|
|
|
434 |
|
|
|
— |
|
Restructuring costs |
|
589 |
|
|
|
— |
|
|
|
1,659 |
|
|
|
— |
|
Non-GAAP operating (loss) income |
$ |
(3,457 |
) |
|
$ |
(1,758 |
) |
|
$ |
(18,947 |
) |
|
$ |
2,060 |
|
Reconciliation of net loss to non-GAAP net (loss) income |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net loss |
$ |
(12,130 |
) |
|
$ |
(9,509 |
) |
|
$ |
(58,208 |
) |
|
$ |
(24,256 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
9,435 |
|
|
|
7,855 |
|
|
|
38,543 |
|
|
|
25,650 |
|
Amortization of acquired intangible asset |
|
149 |
|
|
|
— |
|
|
|
434 |
|
|
|
— |
|
Restructuring costs |
|
589 |
|
|
|
— |
|
|
|
1,659 |
|
|
|
— |
|
Non-GAAP net (loss) income |
$ |
(1,957 |
) |
|
$ |
(1,654 |
) |
|
$ |
(17,572 |
) |
|
$ |
1,394 |
|
|
|
|
|
|
|
|
|
Reconciliation of net loss attributable to common stockholders |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net loss attributable to common shareholders |
$ |
(12,130 |
) |
|
$ |
(9,509 |
) |
|
$ |
(58,208 |
) |
|
$ |
(24,814 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Cumulative preferred dividends allocated to preferred shareholders |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
558 |
|
Stock-based compensation expense |
|
9,435 |
|
|
|
7,855 |
|
|
|
38,543 |
|
|
|
25,650 |
|
Amortization of acquired intangible asset |
|
149 |
|
|
|
— |
|
|
|
434 |
|
|
|
— |
|
Restructuring costs |
|
589 |
|
|
|
— |
|
|
|
1,659 |
|
|
|
— |
|
Non-GAAP net (loss) income attributable to common stockholders |
$ |
(1,957 |
) |
|
$ |
(1,654 |
) |
|
$ |
(17,572 |
) |
|
$ |
1,394 |
|
GAAP net loss per share, basic and diluted |
$ |
(0.25 |
) |
|
$ |
(0.20 |
) |
|
$ |
(1.23 |
) |
|
$ |
(0.57 |
) |
Non-GAAP net (loss) income per share, basic |
$ |
(0.04 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.37 |
) |
|
$ |
0.03 |
|
Non-GAAP net (loss) income per share, diluted |
$ |
(0.04 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.37 |
) |
|
$ |
0.03 |
|
Shares Used in GAAP Per Share Calculations: |
|
|
|
|
|
|
|
||||||||
GAAP weighted-average shares used to compute GAAP net loss per share, basic and diluted |
|
47,996,905 |
|
|
|
47,752,653 |
|
|
|
47,486,225 |
|
|
|
43,562,604 |
|
Shares Used in Non-GAAP Per Share Calculations: |
|
|
|
|
|
|
|
||||||||
Non-GAAP weighted-average shares used to compute non-GAAP net (loss) income per share, basic |
|
47,996,905 |
|
|
|
47,752,653 |
|
|
|
47,486,225 |
|
|
|
43,562,604 |
|
Non-GAAP weighted-average shares used to compute non-GAAP net (loss) income per share, diluted |
|
47,996,905 |
|
|
|
47,752,653 |
|
|
|
47,486,225 |
|
|
|
51,503,021 |
|
|
|||||||||||||||
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 loss per share |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
GAAP basic and diluted net loss per share: |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(12,130 |
) |
|
$ |
(9,509 |
) |
|
$ |
(58,208 |
) |
|
$ |
(24,256 |
) |
Less: Cumulative preferred dividends allocated to preferred stockholders |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(558 |
) |
Net loss attributable to common stockholders, basic and diluted |
$ |
(12,130 |
) |
|
$ |
(9,509 |
) |
|
$ |
(58,208 |
) |
|
$ |
(24,814 |
) |
Weighted average common stock outstanding, basic and diluted |
|
47,996,905 |
|
|
|
47,752,653 |
|
|
|
47,486,225 |
|
|
|
43,562,604 |
|
Basic and diluted net loss per share of common stock |
$ |
(0.25 |
) |
|
$ |
(0.20 |
) |
|
$ |
(1.23 |
) |
|
$ |
(0.57 |
) |
Reconciliation of GAAP to non-GAAP net (loss) income per share |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Non-GAAP basic and diluted net (loss) income per share: |
|
|
|
|
|
|
|
||||||||
Net loss attributable to common stockholders |
$ |
(12,130 |
) |
|
$ |
(9,509 |
) |
|
$ |
(58,208 |
) |
|
$ |
(24,814 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Cumulative preferred dividends allocated to preferred stockholders |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
558 |
|
Stock-based compensation |
|
9,435 |
|
|
|
7,855 |
|
|
|
38,543 |
|
|
|
25,650 |
|
Amortization of acquired intangible asset |
|
149 |
|
|
|
— |
|
|
|
434 |
|
|
|
— |
|
Restructuring costs |
|
589 |
|
|
|
— |
|
|
|
1,659 |
|
|
|
— |
|
Non-GAAP net (loss) income attributable to common stockholders, basic and diluted |
$ |
(1,957 |
) |
|
$ |
(1,654 |
) |
|
$ |
(17,572 |
) |
|
$ |
1,394 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP weighted-average shares used to compute non-GAAP net (loss) income per share, basic |
|
47,996,905 |
|
|
|
47,752,653 |
|
|
|
47,486,225 |
|
|
|
43,562,604 |
|
Non-GAAP weighted-average shares used to compute non-GAAP net (loss) income per share, diluted |
|
47,996,905 |
|
|
|
47,752,653 |
|
|
|
47,486,225 |
|
|
|
51,503,021 |
|
Non-GAAP net (loss) income per share of common stock: |
|
|
|
|
|
|
|
||||||||
Non-GAAP net (loss) income per share, basic |
$ |
(0.04 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.37 |
) |
|
$ |
0.03 |
|
Non-GAAP net (loss) income per share, diluted |
$ |
(0.04 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.37 |
) |
|
$ |
0.03 |
|
|
|||||||||||||||
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 |
|
Twelve Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net cash (used in) provided by operating activities: |
$ |
(7,568 |
) |
|
$ |
(4,492 |
) |
|
$ |
(20,461 |
) |
|
$ |
5,189 |
|
Less: Purchases of property and equipment |
|
(1,297 |
) |
|
|
(1,124 |
) |
|
|
(3,697 |
) |
|
|
(3,564 |
) |
Free cash flow |
$ |
(8,865 |
) |
|
$ |
(5,616 |
) |
|
$ |
(24,158 |
) |
|
$ |
1,625 |
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Revenue |
|||||||||||||||
(in thousands) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Core Platform |
|
|
|
|
|
|
|
||||||||
Subscription and other platform |
$ |
39,952 |
|
$ |
41,456 |
|
$ |
160,772 |
|
$ |
160,482 |
||||
Professional services |
|
4,223 |
|
|
6,069 |
|
|
17,029 |
|
|
23,312 |
||||
Total core platform revenue |
$ |
44,175 |
|
$ |
47,525 |
|
$ |
177,801 |
|
$ |
183,794 |
||||
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Subscription and other platform |
$ |
2,077 |
|
$ |
3,532 |
|
$ |
11,069 |
|
$ |
15,394 |
||||
Professional services |
|
315 |
|
|
977 |
|
|
2,002 |
|
|
4,425 |
||||
Total virtual conference revenue |
$ |
2,392 |
|
$ |
4,509 |
|
$ |
13,071 |
|
$ |
19,819 |
||||
|
|
|
|
|
|
|
|
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
Subscription and other platform |
$ |
42,029 |
|
$ |
44,988 |
|
$ |
171,841 |
|
$ |
175,876 |
||||
Professional services |
|
4,538 |
|
|
7,046 |
|
|
19,031 |
|
|
27,737 |
||||
Total revenue |
$ |
46,567 |
|
$ |
52,034 |
|
$ |
190,872 |
|
$ |
203,613 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230228005694/en/
Media Contact:
press@on24.com
Investor Contact:
investorrelations@on24.com
Source:
FAQ
What was ON24's total revenue for Q4 2022?
How much is ON24's special cash dividend per share?
What is ON24's expected revenue guidance for Q1 2023?
What was the GAAP net loss for ON24 in Q4 2022?