ON24, Inc.

and welcome please note that the live and interactive webcast of today's call may be accessed via the investor relations section of the company's website at www.investors.on24.com upon completion of the prepared remarks we will open the call for questions which may be submitted via the webcast portal or the dial in line please note that this call is being recorded At this time, I would like to turn the conference over to Nate Pollock, Vice President of Investor Relations. Please go ahead.

Thank you. Hello, and good afternoon, everyone. Welcome to ON24's fourth quarter and full year 2021 earnings conference call. On the call with me today are Sherrod Sherron, co-founder and CEO of ON24, and Steve Adoni, 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 first quarter and full fiscal year of 2022. These forward-looking statements are subject to known and unknown risks and uncertainties. ON24 cautions that these statements are not guaranteed at future performance. All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statement to reflect the events that occur after this call. Please refer to the company's periodic SEC filings and today's financial press release for factors that could cause our actual results to differ materially from any forward-looking statements. We'd also like to point out that on today's call, we will report both GAAP and non-GAAP results. We use these non-GAAP financial measures to evaluate our ongoing operations and for internal planning and forecasting purposes. Non-GAAP financial measures are presented in addition to and not as a substitute for financial measures calculated in accordance with GAAP. To see the reconciliations of these non-GAAP financial measures, please refer to today's financial press release. I will now turn the call over to Sharad. Sharad?

Thank you and welcome everyone to ON24's fourth quarter and full year 2021 financial results conference call. Thank you for joining us. On today's call, I'll share some 2021 highlights, review our Q4 results, address some near-term factors relevant to our outlook, and outline our priorities for fiscal 2022. Looking back, 2021 was the most pivotal year in the company's history. I'm proud to share some of the numerous milestones we achieved in terms of business accomplishments and financial results. Across our platform, our customers delivered hundreds of thousands of immersive digital experiences to tens of millions of attendees, which helped them drive measurable business results. We saw attendee engagement with tools such as polling, content, surveys, and other buying signals increase more than 30% year over year. Total revenue increased by 30% year-over-year to $203.6 million. Subscription and other platform revenue increased by 43% year-over-year to $175.9 million. And we generated positive free cash flow for the year. Our investments in new geographies such as Japan and Germany are paying off with international revenue growth of 43% year-over-year. We are a market leader serving over 2,100 global customers, including 366 with ARR over $100,000, representing 21% year-over-year growth in that cohort. Our wallet share continues to grow, with average ARR per customer 47% higher than the end of 2019. As a sign of our increased strategic positioning, we now have 19 customers with ARR over $1 million, representing 36% year-over-year growth in that cohort. Customers are also increasingly making longer-term commitments to our platform with multi-year contracts comprising 35% of our ending ARR compared to 29% at the end of 2020. We made early inroads with our partner channel with new bookings contribution, increasing from low single digits in Q1 to high single digits by Q4. Lastly, we doubled down on R&D investment and the pace of innovation in 2021, launching two new experience additions to our platform, Breakouts and GoLive, and introducing the next generation of our flagship product, Webcast Elite. Our platform approach is resonating with customers, evident by the fact more than 35% of our customers have two or more products compared to 30% in 2020 and 17% in 2019. We are keeping up the drumbeat on product innovation and will continue to bring new products to the market. Let me briefly highlight some of our exciting wins within the fourth quarter. One of the largest healthcare membership organizations with over 100,000 members runs hundreds of sponsored webinar experiences per year as a key revenue stream. Previously, they had been using a legacy vendor that lacked data insights and analytic capabilities. Realizing that they could deliver more value to their sponsors, they turned to ON24 for our deep engagement data and AI-driven analytics. including a prospect engagement profile, which will be integrated into their Salesforce marketing cloud. This was a highly strategic six-figure platform deal, which included Belief, Engagement Hub, and Breakout Rooms, and has provided substantial ROI to the customer. In Germany, we landed a six-figure win with a leading building and construction software company that had been using a legacy vendor to drive demand generation with approximately 500 global webinar experiences per year. We displaced this legacy vendor based on our real-time integrations across the customer's MarTech stack, user experience, and world-class services and support. One of the world's largest oil field services companies has been using ON24 for both demand gen and thought leadership as their end users and buyers are increasingly moving to digital. In the fourth quarter, they expanded with us to cover four of their divisions and more than crippling their annual span. The power of our data, real-time integrations, and enterprise-scale reliability, privacy, and compliance were the deciding factors for this customer expansion. Lastly, we signed the largest single deal in our history, a three-year global enterprise-wide subscription agreement with an existing customer in the pharmaceutical industry. Given the scope, the customer had a global RFP, and we won based on the scale of our platform, deep integrations across their entire marketing stack, and best-in-class compliance and support. Let me review high-level results from the fourth quarter. For the fourth quarter, we reported total revenue of $52 million at the high end of our guidance range. Subscription and other platform revenue in the quarter was $45 million, representing an increase of 9% year over year against a very challenging comparable of 115% growth in the year-ago period. Professional services revenue was $7 million, a decrease of 41% year-over-year and in line with our expectations that we provided last quarter. Net new ARR was $4.2 million, resulting in ending ARR of $171.4 million. And we posted a non-GAAP operating loss of $1.8 million for the quarter ahead of our guidance. While we had solid Q4 financial results, we have also experienced some recent challenges which are impacting our Q1 and full year outlook. As we previously discussed, we believe Q1 2022 marks the last COVID-influenced renewal quarter, and this cohort comprises a significant portion of large deal renewals, which included expansions throughout COVID that are renewing for the first time. During January, as it became clear the world was moving from pandemic to endemic, we have seen a handful of customers with large expansions since the beginning of 2020 reassess their post-pandemic digital budgets. While we had forecasted some rationalization to take place, our visibility into these specific customers' post-pandemic needs was limited. For context, it is important to note that these select customers had expanded by as much as three times during COVID, and their annual spend still stands an average meaningfully higher than Q1 2020. Let me share an example. One of our customers is a leading international exhibition organizer, which runs thousands of physical and digital events for leading B2B brands. When the physical conference world was shut down, this customer turned to ON24 to run thousands of digital experiences with amazing success and increase their spend by three times since Q1 2020. As we move to a post-pandemic world, The customer has begun to shift some events back to in-person, but will continue to use ON24 for its digital strategy, committing to a multi-year, seven-figure annual investment with spend still two times higher than pre-COVID. Our Q1 outlook reflects the impact of the higher-than-anticipated rationalization and the full-year incorporates our early view on post-pandemic digital budgets. Looking ahead, We believe that Q1 will mark the trough for 2022. By far, our largest challenge in 2021 was the first-time renewal cohort, which was four times the dollar value of first-time renewals in 2019 and had a churn rate that was approximately double that of first-time renewals in 2019. We see an improving customer profile for first-time renewals with a lower representative share in future cohorts and also believe that many customers have now adjusted their prior expansions accordingly to align with their post-pandemic needs. As a signpost, gross retention for pre-2020 cohorts has been stable. which gives us confidence that overall retention will begin to trend upwards in 2022 as we move past the last of these COVID-influenced cohorts. Steve will provide more details on our outlook later on this call. Moving forward, we are also proactively making improvements in areas of our business to re-accelerate growth and continue towards our path of reaching 500 million of ARR and beyond. To help achieve this, we have set four key priorities for fiscal 2022. One, enhancing our customer success and retention capabilities. Two, scaling our go-to-market for better operational leverage. Three, improving our multi-product sales motion in the enterprise segment. And four, delivering upon our robust product innovation roadmap. Turning to our first priority, enhancing our customer success and retention capabilities. Since the end of 2019, the On24 customer base has grown by more than 50%, and our ARR renewal base has more than doubled. Over the years, we've built a solid foundation of a customer success function. But as we become a more strategic partner to customers, it is crucial that we have a best-in-class customer success motion. After taking a closer look, we have identified enhancements that can be made to the function and which are now underway in order to create a better integrated customer journey. We believe the first 90-day experience for a new ON24 customer is critical. Recently, we have revamped our onboarding program to ensure that the handoff between sales and the CSM is more seamless and we are better enabling the customer so we deliver faster time-to-value. As our product team continually makes new enhancements to our platform, guiding our customers to adopt the full breadth of the platform, including our leading integrations, must be a top priority across the organization. We are expanding the team to improve coverage ratios as well as bringing in new senior talent with experience at scale to drive best practices and operational rigor. Combined, we believe that these changes will improve our overall retention rate in the quarters ahead. Moving to our second priority, scaling our go-to-market for better operational leverage. In fiscal 2021, we saw steady growth in business sourced from our partner channel, increasing from low single-digits percentage of new bookings in Q1 to high single-digits by Q4. To continue our momentum and scale ON24 to the next level, we believe that it is critical to strengthen our ecosystem of partners across interactive agencies, large strategic marketing cloud platform players, ISVs, and system integrators, with each having an important role in our long-term success. Last week we announced the launch of the on 24 partner network, creating an ecosystem of leading solutions and technology partners and formalizing how we integrate co market and co sell together. This ecosystem will broaden our reach, extend our product and service offerings and drive leverage in our go to market model in the months ahead. we'll be enabling our partners on the ON24 platform, building more integrations, and driving pipeline. Our goal is to grow partner bookings over time to a 20% or higher contribution. This is not something that happens overnight, but the early progress we have made formalizing partnerships with over 40 partners gives us confidence in the long-term partner leverage opportunity. Now to our third priority, improving our sales motion in the enterprise segment. Today we count approximately 20% of the Fortune 1000 as customers and still have massive white space to further penetrate the enterprise. As I mentioned last quarter, we are focused on a multi-product sales motion for enterprise acquisition, which is leading to larger, more complex deals. These deals require a more focused consultative selling approach to elevated levels of the organization compared to a single product sales motion to practitioners that worked in our earlier years. As such, we are making improvements to more effectively enable our enterprise sales team with the right resources for this type of sales motion. That not only makes them more successful, but also makes the enterprise customers excited to engage with us in consultative ways. Turning to our fourth priority, product innovation. In 2022, we are focused on continuing to execute against a robust product innovation roadmap across each of the three pillars of our platform. Webinar marketing, virtual events, and personalized content experiences. Our vision is anchored by delivering a system of engagement for marketing and sales teams to create digital experiences that engage audiences, turn engagement data into insights, and use those insights to drive results. Within our virtual events pillar, Go Live is the newest solution and released at the end of December. It's a self-service, multi-session video and networking event experience that maximizes social networking and audience participation. Organizations can build complete end-to-end external or internal events such as roadshows, user groups, virtual pop-ups, customer and partner summits, town halls or company meetings using pre-built templates and an easy-to-use and engaging interface. First-party engagement data continues to be the foundation of each of our products of our platform, and ON24 Go Live registrant event activity and attendee engagement is captured along with other ON24 experiences into a single dashboard and prospect engagement profile. We have received positive market feedback and expect this product to ramp in the coming quarters as we build awareness in the market and throughout our customer base. According to a recent McKinsey report, two-thirds of corporate customers intentionally now reach for digital or remote over in-person engagement when given a choice, and they're doing so at every stage of the purchasing journey. As a result, sales and marketing teams are dealing with a new set of buyer expectations to garner attention in a crowded field. To adapt to this new world, we believe creating personalized digital experiences at scale is table stakes to break ahead from the pack, but must go beyond contact name and logo. We believe it should be driven by first-party data insights. Throughout the year, we will be releasing enhancements to our AI-driven personalization capabilities, whether our customers are targeting known or unknown individuals. Our platform will be able to tailor personalization experiences by, among other things, account to the specific organization, contact to a specific role, call to actions and content, and buyer intent and segmentation. This is all backed by first-party data and insights collected from every ON24 digital experience. These personalization enhancements will empower our customers with a deeper understanding of buyer preferences and deliver real-time personalized experiences directly within our platform. To sum up, I continue to be optimistic as ever about our future. We have experienced tremendous growth in a short period of time with our ARR increasing by 123% over the past two years. While we are now moving into a post-pandemic world, a powerful transformation continues to be underway in the B2B world. Across industries, sales and marketing for B2B organizations is rapidly moving towards digital channels, and there is an increasing need for a digital engagement platform that leverages data and insights to drive revenue growth. We are focused on improving areas of our business and remain confident of both our long-term growth opportunity and ability to re-accelerate growth in the coming quarters. ON24 is a growth business against the backdrop of powerful secular trends and a large TAM. With that, I'll hand it over to our CFO, Steve Batuani, to walk you through our Q4 results in more detail and provide our outlook.