ON24, Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting a decline in revenue and ongoing strategic adjustments. For the three months ended September 30, 2024, the company generated revenue of $36.3 million, a decrease of 7% from $39.2 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $111.4 million, down 10% from $124.4 million year-over-year. The decline in revenue is attributed to reduced customer budgets, a shift back to in-person marketing post-COVID-19, and competitive pressures.
Despite the revenue drop, ON24 managed to reduce its net loss for the third quarter to $11.4 million, slightly better than the $11.5 million loss reported in Q3 2023. For the nine-month period, the net loss was $33.3 million, compared to $41.9 million in the prior year. The company’s gross profit for Q3 2024 was $27.0 million, with a gross margin of 74%, up from 72% in the previous year, indicating improved cost management.
Total current assets decreased to $230.7 million as of September 30, 2024, from $253.8 million at the end of 2023, primarily due to a significant reduction in cash and cash equivalents, which fell to $11.0 million from $53.2 million. However, marketable securities increased to $177.8 million, up from $145.5 million at year-end 2023.
ON24 has implemented a strategic cost reduction plan, which included workforce reductions and vendor spending cuts, resulting in total restructuring costs of $486,000 for Q3 2024 and $2.2 million for the nine months. The company anticipates incurring additional restructuring costs in Q4 2024.
In terms of product development, ON24 continues to focus on enhancing its platform with AI capabilities, launching the ON24 AI-powered Analytics and Content Engine (ACE) in January 2024. The company reported a decrease in Annual Recurring Revenue (ARR) to $132.2 million as of September 30, 2024, down from $136.5 million in March 2024, reflecting customer churn and decreased demand for its Virtual Conference product.
The company also amended its revolving credit facility in August 2024, reducing its borrowing capacity from $50 million to $25 million, with no amounts drawn as of September 30, 2024. The interest rate on the facility decreased to 8.00% from 8.50% at the end of 2023.
Overall, ON24 is navigating a challenging market environment while focusing on cost management and product innovation to drive future growth.
About ON24 INC.
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