Q2 2024 ON24 Inc Earnings Call Transcript
Key Points
- ON24 Inc (ONTF) delivered Q2 revenue and non-GAAP EBIT above guidance, achieving positive adjusted EBITDA and positive non-GAAP EPS for the fifth consecutive quarter.
- The company reported positive free cash flow for the second consecutive quarter.
- Revenue from the core platform, including services, was $36.5 million, with total revenue at $37.3 million.
- Gross retention rates improved sequentially, with significant reductions in churn and downsells.
- AI-powered ACE solution showed strong traction, with ARR from AI-powered ACE growing to the high teens as a percentage of growth ARR.
- Total revenue from the core platform decreased by 10% year over year.
- ARR related to the core platform decreased by $2.2 million compared to Q1 2024.
- Professional services revenue decreased by 15% year over year.
- The macroeconomic environment remains challenging, impacting marketing budgets and new purchasing commitments.
- Forecasting ARR more than one quarter ahead remains difficult due to the uncertain macro environment.
Greetings, and welcome to the ON24 second-quarter 2024 earnings conference call. (Operator Instructions). As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Sayo Denloye, Investor Relations. Please, go ahead.
Hello and good afternoon, everyone. Welcome to ON24 second-quarter 2024 earnings conference call. On the call with me today are Sharat Sharan, Co-Founder and CEO of ON24; and Steve Vattuone, Chief Financial Officer of ON24.
Before we begin, I would like to remind everyone that some information provided during this call will include forward-looking statements regarding future events and financial performance, including guidance for the third-quarter and full-fiscal year 2024, as well as certain third-quarter and full-year non-GAAP projections.
These forward-looking statements are subject to known and unknown risks and uncertainties that could adversely affect ON24's future results and cause these forward-looking statements to be
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