ON24 Announces Third Quarter 2022 Financial Results
ON24 reported third-quarter 2022 results with total revenue of $47.6 million, a 4% decline year-over-year. The Annual Recurring Revenue (ARR) stands at $165.6 million, witnessing a 1% decrease influenced by foreign currency effects. The company improved its cost structure, achieving approximately $16 million in annual run-rate savings. A net loss of $14.4 million was recorded, equating to $(0.30) per share. For Q4 2022, ON24 anticipates revenue between $45.7 million and $46.7 million and aims for a substantial reduction in non-GAAP losses.
- Achieved approximately $16 million in annual run-rate savings.
- Expansion with several customers; average ARR per customer near record high.
- Strengthened leadership team by appointing two new executives.
- Total revenue decreased by 4% year-over-year.
- Professional services revenue declined by 25% year-over-year.
- GAAP operating loss increased to $14.8 million from $9.3 million year-over-year.
-
Total Revenue of
$47.6 million -
ARR of
, FX impact of negative$165.6 million $0.5 million -
Drove meaningful improvement in cost structure since Q2 with approximately
in run-rate savings$16M - Bolstered executive leadership team with two key hires
“In the third quarter, we saw exciting expansions with some of our customers, meaningfully improved our cost structure, and deepened our leadership bench with the appointment of two new go-to-market executives,” said
Third Quarter 2022 Financial Highlights
-
ARR of
as of$165.6 million September 30, 2022 , a decrease of1% year-over-year. Foreign currency had an approximate negative impact in the quarter to ARR.$0.5 million -
Revenue:
-
Total revenue was
, a decrease of$47.6 million 4% year-over-year. -
Subscription and Other Platform Revenue was
, a decrease of$43.3 million 1% year-over-year. -
Professional Services Revenue was
, a decrease of$4.3 million 25% year-over-year.
-
Total revenue was
-
GAAP Operating Loss was
, compared to GAAP operating loss of$14.8 million in the third quarter of 2021.$9.3 million -
Non-GAAP Operating Loss was
, compared to non-GAAP operating loss of$3.6 million in the third quarter of 2021.$1.4 million -
GAAP Net Loss attributable to common stockholders was
, or$14.4 million per diluted share, compared to GAAP net loss attributable to common stockholders of$(0.30) , or$9.4 million per diluted share in the third quarter of 2021.$(0.20) -
Non-GAAP Net Loss was
, or$3.3 million per diluted share, compared to a non-GAAP net loss of$(0.07) , or$1.6 million per diluted share in the third quarter of 2021.$(0.03) -
Cash Flow: Net cash used in operating activities was
, compared to$3.5 million used in operating activities in the third quarter of 2021. Free cash flow was negative$0.9 million for the quarter, compared to negative$4.2 million in the third quarter of 2021.$1.6 million -
Cash,
Cash Equivalents and Marketable Securities totaled as of$341.8 million September 30, 2022 .
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 / Industry Recognition
-
Appointed two new leaders to ON24’s management team;
Jason Olkowski as Chief Customer Success Officer andCallan Young as Chief Marketing Officer. - Experienced strong expansion with a number of customers and average ARR per customer near record high.
-
Introduced new capability and features across the
ON24 platform to increase audience engagement, capture more buyer insights, enhance analytics and data, and provide advanced data integrations with leading CRM and marketing automation solutions.
Financial Outlook
For the fourth quarter of 2022,
-
Total revenue of
to$45.7 .$46.7 million -
Non-GAAP operating loss of
to$4.5 .$3.5 million -
Non-GAAP net loss per share of
to$(0.08) using approximately 48.3 million basic and diluted shares outstanding.$(0.06) -
Restructuring charge of
to$1.0 , excluded from Non-GAAP amounts above.$1.3 million
For the full year 2022,
-
Total revenue of
to$190 .$191 million -
Non-GAAP operating loss of
to$20.1 .$19.1 million -
Non-GAAP net loss per share of
to$(0.41) using approximately 47.7 million basic and diluted shares outstanding.$(0.39) -
Restructuring charge of
to$2.1 , excluded from Non-GAAP amounts above.$2.4 million
Conference Call Information
A webcast 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
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 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, 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 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
© 2022
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(in thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|||||
Assets |
|
|
|
|||||
Current assets |
|
|
|
|||||
Cash and cash equivalents |
$ |
36,367 |
|
|
$ |
164,948 |
|
|
Marketable securities |
|
305,457 |
|
|
|
217,609 |
|
|
Accounts receivable, net |
|
31,213 |
|
|
|
46,117 |
|
|
Deferred contract acquisition costs, current |
|
12,018 |
|
|
|
11,921 |
|
|
Prepaid expenses and other current assets |
|
8,375 |
|
|
|
8,467 |
|
|
Total current assets |
|
393,430 |
|
|
|
449,062 |
|
|
Property and equipment, net |
|
8,129 |
|
|
|
8,780 |
|
|
Operating right-of-use assets |
|
6,011 |
|
|
|
— |
|
|
Intangible asset, net |
|
1,931 |
|
|
|
— |
|
|
Deferred contract acquisition costs, non-current |
|
18,980 |
|
|
|
20,887 |
|
|
Other long-term assets |
|
1,824 |
|
|
|
1,760 |
|
|
Total assets |
$ |
430,305 |
|
|
$ |
480,489 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|||||
Current liabilities |
|
|
|
|||||
Accounts payable |
$ |
4,283 |
|
|
$ |
3,123 |
|
|
Accrued and other current liabilities |
|
17,058 |
|
|
|
19,011 |
|
|
Deferred revenue |
|
81,029 |
|
|
|
96,225 |
|
|
Finance lease liabilities, current |
|
1,762 |
|
|
|
1,768 |
|
|
Operating lease liabilities, current |
|
2,676 |
|
|
|
— |
|
|
Total current liabilities |
|
106,808 |
|
|
|
120,127 |
|
|
Finance lease liabilities, non-current |
|
300 |
|
|
|
1,648 |
|
|
Operating lease liabilities, non-current |
|
5,628 |
|
|
|
— |
|
|
Other long-term liabilities |
|
1,685 |
|
|
|
3,624 |
|
|
Total liabilities |
|
114,421 |
|
|
|
125,399 |
|
|
Stockholders’ equity |
|
|
|
|||||
Common stock |
|
5 |
|
|
|
5 |
|
|
Additional paid-in capital |
|
559,381 |
|
|
|
550,839 |
|
|
Accumulated deficit |
|
(241,597 |
) |
|
|
(195,519 |
) |
|
Accumulated other comprehensive loss |
|
(1,905 |
) |
|
|
(235 |
) |
|
Total stockholders’ equity |
|
315,884 |
|
|
|
355,090 |
|
|
Total liabilities and stockholders’ equity |
$ |
430,305 |
|
|
$ |
480,489 |
|
|
|||||||||||||||
Condensed Consolidated Statements of Operations |
|||||||||||||||
(in thousands, except share and per share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Subscription and other platform |
$ |
43,271 |
|
|
$ |
43,601 |
|
|
$ |
129,812 |
|
|
$ |
130,888 |
|
Professional services |
|
4,304 |
|
|
|
5,761 |
|
|
|
14,493 |
|
|
|
20,691 |
|
Total revenue |
|
47,575 |
|
|
|
49,362 |
|
|
|
144,305 |
|
|
|
151,579 |
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
Subscription and other platform(1)(3) |
|
10,120 |
|
|
|
8,718 |
|
|
|
29,680 |
|
|
|
24,382 |
|
Professional services(1)(3) |
|
3,182 |
|
|
|
3,349 |
|
|
|
9,867 |
|
|
|
10,252 |
|
Total cost of revenue |
|
13,302 |
|
|
|
12,067 |
|
|
|
39,547 |
|
|
|
34,634 |
|
Gross profit |
|
34,273 |
|
|
|
37,295 |
|
|
|
104,758 |
|
|
|
116,945 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Sales and marketing(1)(3) |
|
26,553 |
|
|
|
26,591 |
|
|
|
84,596 |
|
|
|
75,981 |
|
Research and development(1)(2)(3) |
|
11,324 |
|
|
|
9,114 |
|
|
|
32,916 |
|
|
|
25,222 |
|
General and administrative(1)(3) |
|
11,164 |
|
|
|
10,851 |
|
|
|
33,199 |
|
|
|
29,719 |
|
Total operating expenses |
|
49,041 |
|
|
|
46,556 |
|
|
|
150,711 |
|
|
|
130,922 |
|
Loss from operations |
|
(14,768 |
) |
|
|
(9,261 |
) |
|
|
(45,953 |
) |
|
|
(13,977 |
) |
Interest expense |
|
42 |
|
|
|
65 |
|
|
|
145 |
|
|
|
402 |
|
Other (income) expense, net |
|
(463 |
) |
|
|
106 |
|
|
|
(183 |
) |
|
|
433 |
|
Loss before provision for (benefit from) income taxes |
|
(14,347 |
) |
|
|
(9,432 |
) |
|
|
(45,915 |
) |
|
|
(14,812 |
) |
Provision for (benefit from) income taxes |
|
40 |
|
|
|
(32 |
) |
|
|
163 |
|
|
|
(65 |
) |
Net loss |
|
(14,387 |
) |
|
|
(9,400 |
) |
|
|
(46,078 |
) |
|
|
(14,747 |
) |
Cumulative preferred dividends allocated to preferred stockholders |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(558 |
) |
Net loss attributable to common stockholders |
$ |
(14,387 |
) |
|
$ |
(9,400 |
) |
|
$ |
(46,078 |
) |
|
$ |
(15,305 |
) |
Net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
$ |
(0.30 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.97 |
) |
|
$ |
(0.36 |
) |
Weighted-average shares used in computing net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
|
47,640,200 |
|
|
|
47,101,200 |
|
|
|
47,357,711 |
|
|
|
42,149,108 |
|
(1) |
Includes stock-based compensation as follows: |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Cost of revenue |
|
|
|
|
|
|
|
||||||||
Subscription and other platform |
$ |
849 |
|
|
$ |
607 |
|
|
$ |
2,540 |
|
|
$ |
1,190 |
|
Professional services |
|
165 |
|
|
109 |
|
|
505 |
|
|
248 |
||||
Total cost of revenue |
|
1,014 |
|
|
|
716 |
|
|
|
3,045 |
|
|
|
1,438 |
|
Sales and marketing |
|
3,597 |
|
|
|
2,364 |
|
|
|
10,986 |
|
|
|
5,627 |
|
Research and development |
|
2,019 |
|
|
|
1,235 |
|
|
|
5,925 |
|
|
|
2,879 |
|
General and administrative |
|
3,273 |
|
|
|
3,516 |
|
|
|
9,152 |
|
|
|
7,851 |
|
Total stock-based compensation expense |
$ |
9,903 |
|
|
$ |
7,831 |
|
|
$ |
29,108 |
|
|
$ |
17,795 |
|
(2) |
Research and development expense for the three and nine months ended |
(3) |
Includes restructuring costs, which primarily represent severance and related expense due to restructuring activities, as follows. |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Cost of revenue |
|
|
|
|
|
|
|
||||||||
Subscription and other platform |
$ |
363 |
|
|
$ |
— |
|
|
$ |
363 |
|
|
$ |
— |
|
Professional services |
|
27 |
|
|
— |
|
|
27 |
|
|
— |
||||
Total cost of revenue |
|
390 |
|
|
|
— |
|
|
|
390 |
|
|
|
— |
|
Sales and marketing |
|
582 |
|
|
|
— |
|
|
|
582 |
|
|
|
— |
|
Research and development |
|
61 |
|
|
|
— |
|
|
|
61 |
|
|
|
— |
|
General and administrative |
|
37 |
|
|
|
— |
|
|
|
37 |
|
|
|
— |
|
Total restructuring costs |
$ |
1,070 |
|
|
$ |
— |
|
|
$ |
1,070 |
|
|
$ |
— |
|
|
|||||||||||||||
Condensed Consolidated Statements of Cash Flows |
|||||||||||||||
(In thousands) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(14,387 |
) |
|
$ |
(9,400 |
) |
|
$ |
(46,078 |
) |
|
$ |
(14,747 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
1,407 |
|
|
|
1,129 |
|
|
|
3,953 |
|
|
|
3,423 |
|
Stock-based compensation expense |
|
9,903 |
|
|
|
7,831 |
|
|
|
29,108 |
|
|
|
17,795 |
|
Amortization of deferred contract acquisition cost |
|
3,833 |
|
|
|
3,803 |
|
|
|
11,850 |
|
|
|
11,305 |
|
Provision for allowance for doubtful accounts and billing reserve |
|
456 |
|
|
|
67 |
|
|
|
1,203 |
|
|
|
1,276 |
|
Non-cash lease expense |
|
474 |
|
|
|
— |
|
|
|
1,475 |
|
|
|
— |
|
Other |
|
(344 |
) |
|
|
166 |
|
|
|
(14 |
) |
|
|
191 |
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
8,096 |
|
|
|
2,026 |
|
|
|
13,741 |
|
|
|
10,543 |
|
Deferred contract acquisition cost |
|
(2,672 |
) |
|
|
(4,355 |
) |
|
|
(10,040 |
) |
|
|
(13,947 |
) |
Prepaid expenses and other assets |
|
1,572 |
|
|
|
1,720 |
|
|
|
(5 |
) |
|
|
(5,358 |
) |
Accounts payable |
|
(51 |
) |
|
|
(778 |
) |
|
|
263 |
|
|
|
(2,219 |
) |
Accrued liabilities |
|
(1,624 |
) |
|
|
96 |
|
|
|
(1,369 |
) |
|
|
3,122 |
|
Deferred revenue |
|
(9,745 |
) |
|
|
(2,714 |
) |
|
|
(15,231 |
) |
|
|
(1,055 |
) |
Other non-current liabilities |
|
(373 |
) |
|
|
(485 |
) |
|
|
(1,749 |
) |
|
|
(648 |
) |
Net cash (used in) provided by operating activities |
|
(3,455 |
) |
|
|
(894 |
) |
|
|
(12,893 |
) |
|
|
9,681 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
||||||||
Purchase of property and equipment |
|
(726 |
) |
|
|
(706 |
) |
|
|
(2,400 |
) |
|
|
(2,440 |
) |
Acquisition, net of cash acquired |
|
— |
|
|
|
— |
|
|
|
(2,495 |
) |
|
|
— |
|
Purchase of marketable securities |
|
(99,690 |
) |
|
|
(162,558 |
) |
|
|
(211,310 |
) |
|
|
(207,039 |
) |
Proceeds from maturities and paydowns of marketable securities |
|
59,867 |
|
|
|
8,237 |
|
|
|
121,965 |
|
|
|
11,401 |
|
Net cash used in investing activities |
|
(40,549 |
) |
|
|
(155,027 |
) |
|
|
(94,240 |
) |
|
|
(198,078 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
|
||||||||
Proceeds from initial public offering, net of underwriting discounts |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
353,397 |
|
Proceeds from exercise of stock options |
|
729 |
|
|
|
2,487 |
|
|
|
2,467 |
|
|
|
4,282 |
|
Proceeds from issuance of common stock under ESPP |
|
— |
|
|
|
— |
|
|
|
833 |
|
|
|
— |
|
Payment of tax withholding obligations related to net share settlements on equity awards |
|
— |
|
|
|
— |
|
|
|
(1,756 |
) |
|
|
(2,001 |
) |
Payment for repurchase of common stock |
|
— |
|
|
|
— |
|
|
|
(21,808 |
) |
|
|
— |
|
Repayment of equipment loans and borrowings |
|
(68 |
) |
|
|
(54 |
) |
|
|
(201 |
) |
|
|
(22,532 |
) |
Repayment of finance lease obligations |
|
(427 |
) |
|
|
(501 |
) |
|
|
(1,399 |
) |
|
|
(1,885 |
) |
Payment of offering costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,481 |
) |
Net cash provided by (used in) financing activities |
|
234 |
|
|
|
1,932 |
|
|
|
(21,864 |
) |
|
|
327,780 |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
211 |
|
|
|
46 |
|
|
|
487 |
|
|
|
154 |
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
(43,559 |
) |
|
|
(153,943 |
) |
|
|
(128,510 |
) |
|
|
139,537 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
80,092 |
|
|
|
351,825 |
|
|
|
165,043 |
|
|
|
58,345 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
36,533 |
|
|
$ |
197,882 |
|
|
$ |
36,533 |
|
|
$ |
197,882 |
|
Supplemental disclosures of cash flow data: |
|
|
|
|
|
|
|
||||||||
Cash paid for taxes, net of refunds |
$ |
75 |
|
|
$ |
217 |
|
|
$ |
353 |
|
|
$ |
359 |
|
Cash paid for interest |
$ |
33 |
|
|
$ |
86 |
|
|
$ |
120 |
|
|
$ |
489 |
|
|
|||||||||||||||
Reconciliation from GAAP to Non-GAAP Results |
|||||||||||||||
(in thousands, except share and per share data) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Reconciliation of gross profit and gross margin |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
GAAP gross profit |
$ |
34,273 |
|
|
$ |
37,295 |
|
|
$ |
104,758 |
|
|
$ |
116,945 |
|
Add: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
1,014 |
|
|
|
716 |
|
|
|
3,045 |
|
|
|
1,438 |
|
Restructuring costs |
|
390 |
|
|
|
— |
|
|
|
390 |
|
|
|
— |
|
Non-GAAP gross profit |
$ |
35,677 |
|
|
$ |
38,011 |
|
|
$ |
108,193 |
|
|
$ |
118,383 |
|
GAAP gross margin |
|
72 |
% |
|
|
76 |
% |
|
|
73 |
% |
|
|
77 |
% |
Non-GAAP gross margin |
|
75 |
% |
|
|
77 |
% |
|
|
75 |
% |
|
|
78 |
% |
Reconciliation of operating expenses |
|||||||||||||||
|
Three Months Ended |
Nine Months Ended |
|||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
GAAP sales and marketing |
$ |
26,553 |
|
|
$ |
26,591 |
|
|
$ |
84,596 |
|
|
$ |
75,981 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
(3,597 |
) |
|
|
(2,364 |
) |
|
|
(10,986 |
) |
|
|
(5,627 |
) |
Restructuring costs |
|
(582 |
) |
|
|
— |
|
|
|
(582 |
) |
|
|
— |
|
Non-GAAP sales and marketing |
$ |
22,374 |
|
|
$ |
24,227 |
|
|
$ |
73,028 |
|
|
$ |
70,354 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP research and development |
$ |
11,324 |
|
|
$ |
9,114 |
|
|
$ |
32,916 |
|
|
$ |
25,222 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
(2,019 |
) |
|
|
(1,235 |
) |
|
|
(5,925 |
) |
|
|
(2,879 |
) |
Restructuring costs |
|
(61 |
) |
|
|
— |
|
|
|
(61 |
) |
|
|
— |
|
Amortization of acquired intangible asset |
|
(148 |
) |
|
|
— |
|
|
|
(285 |
) |
|
|
— |
|
Non-GAAP research and development |
$ |
9,096 |
|
|
$ |
7,879 |
|
|
$ |
26,645 |
|
|
$ |
22,343 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP General and administrative |
$ |
11,164 |
|
|
$ |
10,851 |
|
|
$ |
33,199 |
|
|
$ |
29,719 |
|
Less: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
(3,273 |
) |
|
|
(3,516 |
) |
|
|
(9,152 |
) |
|
|
(7,851 |
) |
Restructuring costs |
|
(37 |
) |
|
|
— |
|
|
|
(37 |
) |
|
|
— |
|
Non-GAAP General and administrative |
$ |
7,854 |
|
|
$ |
7,335 |
|
|
$ |
24,010 |
|
|
$ |
21,868 |
|
|
|||||||||||||||
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 |
|
Nine Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net loss |
$ |
(14,387 |
) |
|
$ |
(9,400 |
) |
|
$ |
(46,078 |
) |
|
$ |
(14,747 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
42 |
|
|
|
65 |
|
|
|
145 |
|
|
|
402 |
|
Other (income) expense, net |
|
(463 |
) |
|
|
106 |
|
|
|
(183 |
) |
|
|
433 |
|
Provision for (benefit from) income taxes |
|
40 |
|
|
|
(32 |
) |
|
|
163 |
|
|
|
(65 |
) |
Stock-based compensation |
|
9,903 |
|
|
|
7,831 |
|
|
|
29,108 |
|
|
|
17,795 |
|
Amortization of acquired intangible asset |
|
148 |
|
|
|
— |
|
|
|
285 |
|
|
|
— |
|
Restructuring costs |
|
1,070 |
|
|
|
— |
|
|
|
1,070 |
|
|
|
— |
|
Non-GAAP operating (loss) income |
$ |
(3,647 |
) |
|
$ |
(1,430 |
) |
|
$ |
(15,490 |
) |
|
$ |
3,818 |
|
|
|
|
|
|
|
|
|
Reconciliation of net loss to non-GAAP net (loss) income |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net loss |
$ |
(14,387 |
) |
|
$ |
(9,400 |
) |
|
$ |
(46,078 |
) |
|
$ |
(14,747 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation |
|
9,903 |
|
|
|
7,831 |
|
|
|
29,108 |
|
|
|
17,795 |
|
Amortization of acquired intangible asset |
|
148 |
|
|
|
— |
|
|
|
285 |
|
|
|
— |
|
Restructuring costs |
|
1,070 |
|
|
|
— |
|
|
|
1,070 |
|
|
|
— |
|
Non-GAAP net (loss) income |
$ |
(3,266 |
) |
|
$ |
(1,569 |
) |
|
$ |
(15,615 |
) |
|
$ |
3,048 |
|
Reconciliation of net loss attributable to common stockholders |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net loss attributable to common shareholders |
$ |
(14,387 |
) |
|
$ |
(9,400 |
) |
|
$ |
(46,078 |
) |
|
$ |
(15,305 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Cumulative preferred dividends allocated to preferred shareholders |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
558 |
|
Stock-based compensation expense |
|
9,903 |
|
|
|
7,831 |
|
|
|
29,108 |
|
|
|
17,795 |
|
Amortization of acquired intangible asset |
|
148 |
|
|
|
— |
|
|
|
285 |
|
|
|
— |
|
Restructuring costs |
|
1,070 |
|
|
|
— |
|
|
|
1,070 |
|
|
|
— |
|
Non-GAAP net (loss) income attributable to common stockholders |
$ |
(3,266 |
) |
|
$ |
(1,569 |
) |
|
$ |
(15,615 |
) |
|
$ |
3,048 |
|
GAAP net loss per share, basic and diluted |
$ |
(0.30 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.97 |
) |
|
$ |
(0.36 |
) |
Non-GAAP net (loss) income per share, basic |
$ |
(0.07 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.33 |
) |
|
$ |
0.07 |
|
Non-GAAP net (loss) income per share, diluted |
$ |
(0.07 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.33 |
) |
|
$ |
0.06 |
|
Shares Used in GAAP Per Share Calculations: |
|
|
|
|
|
|
|
||||||||
GAAP weighted-average shares used to compute GAAP net loss per share, basic and diluted |
|
47,640,200 |
|
|
|
47,101,200 |
|
|
|
47,357,711 |
|
|
|
42,149,108 |
|
Shares Used in Non-GAAP Per Share Calculations: |
|
|
|
|
|
|
|
||||||||
Non-GAAP weighted-average shares used to compute non-GAAP net (loss) income per share, basic |
|
47,640,200 |
|
|
|
47,101,200 |
|
|
|
47,357,711 |
|
|
|
42,149,108 |
|
Non-GAAP weighted-average shares used to compute non-GAAP net (loss) income per share, diluted |
|
47,640,200 |
|
|
|
47,101,200 |
|
|
|
47,357,711 |
|
|
|
50,630,225 |
|
|
|||||||||||||||
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 |
|
Nine Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
GAAP basic and diluted net loss per share: |
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(14,387 |
) |
|
$ |
(9,400 |
) |
|
$ |
(46,078 |
) |
|
$ |
(14,747 |
) |
Less: Cumulative preferred dividends allocated to preferred stockholders |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(558 |
) |
Net loss attributable to common stockholders, basic and diluted |
$ |
(14,387 |
) |
|
$ |
(9,400 |
) |
|
$ |
(46,078 |
) |
|
$ |
(15,305 |
) |
Weighted average common stock outstanding, basic and diluted |
|
47,640,200 |
|
|
|
47,101,200 |
|
|
|
47,357,711 |
|
|
|
42,149,108 |
|
Basic and diluted net loss per share of common stock |
$ |
(0.30 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.97 |
) |
|
$ |
(0.36 |
) |
Reconciliation of GAAP to non-GAAP net (loss) income per share |
|||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Non-GAAP basic and diluted net (loss) income per share: |
|
|
|
|
|
|
|
||||||||
Net loss attributable to common stockholders |
$ |
(14,387 |
) |
|
$ |
(9,400 |
) |
|
$ |
(46,078 |
) |
|
$ |
(15,305 |
) |
Add: |
|
|
|
|
|
|
|
||||||||
Cumulative preferred dividends allocated to preferred stockholders |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
558 |
|
Stock-based compensation |
|
9,903 |
|
|
|
7,831 |
|
|
|
29,108 |
|
|
|
17,795 |
|
Amortization of acquired intangible asset |
|
148 |
|
|
|
— |
|
|
|
285 |
|
|
|
— |
|
Restructuring costs |
|
1,070 |
|
|
|
— |
|
|
|
1,070 |
|
|
|
— |
|
Non-GAAP net (loss) income attributable to common stockholders, basic and diluted |
$ |
(3,266 |
) |
|
$ |
(1,569 |
) |
|
$ |
(15,615 |
) |
|
$ |
3,048 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP weighted-average shares used to compute non-GAAP net (loss) income per share, basic |
|
47,640,200 |
|
|
|
47,101,200 |
|
|
|
47,357,711 |
|
|
|
42,149,108 |
|
Non-GAAP weighted-average shares used to compute non-GAAP net (loss) income per share, diluted |
|
47,640,200 |
|
|
|
47,101,200 |
|
|
|
47,357,711 |
|
|
|
50,630,225 |
|
Non-GAAP net (loss) income per share of common stock: |
|
|
|
|
|
|
|
||||||||
Non-GAAP net (loss) income per share, basic |
$ |
(0.07 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.33 |
) |
|
$ |
0.07 |
|
Non-GAAP net (loss) income per share, diluted |
$ |
(0.07 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.33 |
) |
|
$ |
0.06 |
|
|
|||||||||||||||
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 |
|
Nine Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Net cash (used in) provided by operating activities: |
$ |
(3,455 |
) |
|
$ |
(894 |
) |
|
$ |
(12,893 |
) |
|
$ |
9,681 |
|
Less: Purchases of property and equipment |
|
(726 |
) |
|
|
(706 |
) |
|
|
(2,400 |
) |
|
|
(2,440 |
) |
Free cash flow |
$ |
(4,181 |
) |
|
$ |
(1,600 |
) |
|
$ |
(15,293 |
) |
|
$ |
7,241 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20221109005405/en/
Media Contact:
press@on24.com
Investor Contact:
investorrelations@on24.com
Source:
FAQ
What were ON24's Q3 2022 financial results?
What is ON24's Annual Recurring Revenue (ARR) as of Q3 2022?
What is ON24's expected revenue for Q4 2022?
What is the projected non-GAAP net loss per share for ON24 in Q4 2022?