ON24, Inc.

Good afternoon and welcome. Please note that the live and interactive broadcast 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. Please note that this call is being recorded. At this time, I would like to turn the conference over to Lauren Sloan, investor relations for ON24. Please go ahead.

Thank you. Hello, and good afternoon, everyone. Welcome to On24's first quarter 2022 earnings conference call. On the call with me today are Sharath Charan, co-founder and CEO of On24, and Steve Attaloni, 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 in financial performance, including guidance for the second quarter and fiscal year of 2022. These forward statements are subject to known and unknown risks and uncertainties. ON24 cautions that these statements are not guarantees of 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 in 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 reconciliation of these non-GAAP financial measures, please refer to today's press release. I will now turn the call over to Chirag. Chirag, go ahead.

Thank you and welcome everyone to ON24's first quarter 2022 Financial Results Conference call. We appreciate you joining us. On today's call, I'll review our Q1 results, highlight progress on our financial 2022 priorities, and share how we are evolving our platform for a post-pandemic world to help unify digital engagement and first-person data for enterprises across the globe. Our team is laser-focused on the strategic priorities that are laid out last quarter, and we believe that the new products we have brought to market in the last two quarters will be instrumental in increasing new business acquisition and improving customer retention. Let me begin with providing high-level results from the first quarter. For the first quarter, we reported total revenue of $48.5 million, Subscription and other platform revenue was $43.5 million, and professional services revenue was $5 million. Ending ARR was $167.7 million, representing an increase of 3% year over year. As a reminder, ON24 ARR grew 90% in Q1 2021 from the year before, and over the last three years, our ARR CAGR is 38%. We believe ARR has reached a cross consistent with our previous communication and expect to see improvement in net new ARR in Q2 and throughout the year. As a reminder, the Q1 renewal cohort comprised a significant portion of large deal renewals, and we saw a handful of customers rationalize large expansions that took place during COVID that are up for renewal for the first time. The repeat customer cohort, which now comprises the largest portion of our business, continues to be stable with the churn from non-renewing customers similar to pre-COVID levels. Of the top 25 customer contracts up for renewal in the quarter, we did not lose any customer that was with us prior to Q1 2020. Our net ARR growth rate for this group of customers over two years ending Q1 2022 was over 70%. Looking past Q1, we anticipate churn within the first time customer cohort should improve as we move past the last of these COVID-influenced cohorts. On the other hand, as the Ukraine-Russia war unfolded, we saw softness in new bookings within our EMEA region driven by the heightened macro uncertainties. EMEA has been an important growth vector for us, representing a little under 20% of our revenue in 2021 and outpacing the growth of our overall business in 2021. While we do not have any direct exposure to Russia or Ukraine, we believe it is prudent to assume that the current level of macro uncertainty, particularly in EMEA, will continue throughout the year. In addition, we are still in a period where customers are assessing their post-pandemic digital budgets. As a result, we revised our full year 2022 outlook to reflect the potential impact to our business. Steve will discuss this in more detail. Despite this uncertainty, we believe we continue to have a strong market position and continue to land new customers and expand with existing customers, showcasing that our digital engagement platform, particularly the first-party data it generates, is becoming a key driver to the success of an organization's revenue growth strategy. Attendee engagement, as measured by length of attendance and number of console interactions, reached another record high in Q1. Looking ahead to the remainder of 2022 and beyond, our strategic growth agenda is focused on evolving our digital engagement platform for a post-pandemic world. Our customers are changing how they use our platform, and we are changing our platform to address the needs of our customers. We've launched two new products in the last two quarters, which significantly expands our platform. While it is early in the product lifecycle, you've already closed a number of these deals and are seeing one of the fastest ramp in new products pipeline for these products. We also completed a tuck-in acquisition of Vibio, which will allow us to integrate additional video capability across our platform. And we have added two new seasoned board members who have deep operational expertise and will help guide us on our go-to-market execution. We believe that as organizations rapidly accelerated their digital transformation over the past few years, almost every aspect of their go-to-market motion, from sales to demand generation to partner enablement, has shifted to a digital-first engagement strategy. But as each function may use disparate tools with varying levels of reliability, it can result in issues with accessibility and compliance. inconsistent branding, and levels of engagement, and generate limited to zero first-party insights. This may result in a pattern of fractured digital experiences. Even more problematic, these fractured experiences may be siloed and disconnected, resulting in fractured data that we believe is challenging for anyone in the business to use. Our vision is to help businesses unify their sales and marketing digital engagement and first-party data. with a platform that powers all digital experiences, live, always-on, personalized, or hybrid, across their go-to-market functions. One unified platform for demand generation, field marketing, customer advisory boards, product marketing, and partner enablement. Our annual user conference on 24Xperience is scheduled for tomorrow. It will gather thousands of our customers, prospects, and partners across the globe. We will showcase the evolution of our platform and highlight the success of our standout customers, including close to 70 who nominated themselves for the ON24 Experience Awards. Among the winners are companies like Home Depot, Humana, Varian, Pegasystems, SAP, Topdesk, and Infineon. who are using On24 experiences to transform their sales and marketing. On our Q4 call, we laid out four key priorities for 2022. One, enhancing customer success and improving retention across our platform. Two, driving an aggressive product roadmap for a post-pandemic world. Three, enhancing our enterprise sales motion with multi-product deals. Four, strengthening our partner ecosystem and integrations, gaining operational leverage, and further enterprise penetration and adoption. Now, I'll share the progress we've made against each priority during Q1. Beginning with customer success. To improve customer success, we've increased our coverage ratios and brought on new senior talent. Our onboarding program has been completely revamped, and we've added new offerings to further shorten our customers' time to value. We've also improved the availability of data integration services and are building out a solution consulting team who can help our prospects and customers architect a comprehensive implementation of multiple products on our platform. These efforts are beginning to bear fruit, and we expect that our overall retention rate should improve in the quarters ahead. Now, let me discuss progress on our aggressive product roadmap for a post-pandemic world. In listening to our customers, we heard a consistent pain point. The need for a new type of live experience solution in the market that had all the branding, audience engagement, and first-party data of our flagship live experience product on 24 Elite, but also enabled the audience to participate in live two-way video-to-video discussions. That's why we recently launched our newest product on 24 Forums that joins our portfolio of experience products and unifies engagement and data. This is an ideal experience for executive engagement, roundtable discussions, expert-led trainings, and professional advisory groups. We are already seeing promising traction for forums with our customer base, including a Q1 expansion deal with one of the nation's largest healthcare and insurance providers. We originally landed this customer back in 2020 when they came to us with their top-down initiative to build a unified digital engagement strategy for their enterprise customers and individual members. Since then, we've grown our footprint within this customer, spanning a total of seven business divisions and powered their entire go-to-market digital engagement strategy from their lead gen and sales calls to their member enrollment and wellness programs. In Q1, we added a new business division in a $100K-plus deal that includes the entire suite of ON24 experiences. Forums, Elite, Breakouts, Go Live, Target, and Engagement Hub, growing the account by five times in ARR over two years. Our ON24 Go Live product, which we recently launched, delivers the audience and participation of forums, but at a larger scale for multi-session, multi-day virtual conferences. We have closed a number of deals and expect it to ramp in the coming quarters. In addition to our two new live experience products, Forums and Go Live, we are continuing to enhance our always-on and personalized experience capabilities. Last month, we announced the acquisition of video software solution, Vibio, which will put video content creation in the hands of every salesperson and marketer to drive greater personalization and keep their own 24 content working for them longer and in new ways. Vibio will be first integrated with our engagement hub and target products and deepens the value of having unified engagement and first-party data. We believe that our new products, along with our Vibio acquisition, provide us new use cases and buying centers to address and further evolve our platform for a post-pandemic world by extending ON24's footprint in additional sales and marketing use cases. As the digital experiences expand across use cases, they are becoming more interconnected. This is important as the more experiences our customers can create and engage their audience with, the more first-person data they're able to collect and derive key insight and value from. In fact, with our portfolio of six digital experience solutions, each have over 20 engagement and conversion tools within them. The ability to generate and take action on your first-party data is even greater. Now, Then we discussed our progress in driving multi-product deals and bundling within the enterprise. Over the past months, we've been enabling our reps on a multi-product sales motion and better integrating our solution consultant team into deals to architect a holistic digital strategy for customers. We are seeing early success with this motion. The number of customers with two or more products is currently in the mid-30s, and I'm optimistic. that we will see an increase in this metric, especially with the recent launch of our two new products. Let me share just two of the multi-product wins. One of the world's leading semiconductor and software providers was seeking a better way to engage their audience of highly technical buyers. In Q1, the team put together an end-to-end strategy for this customer and closed a multi-product deal, including 124 Elite, Breakouts, and Engagement Hub. The customer is now able to deliver ongoing educational content to their high-value customers and bring them together as a community. All the data is captured by ON24 Intelligence and ON24 Connect, providing the customers vital signs and they can use to drive upsell and cross-sell opportunities. Another multi-product win was with the leading HR and payroll services company, who was concerned with declining rates of engagement and demand for their top strategic accounts. To reimagine the digital experiences with greater interactivity and personalization, the customer purchased ON24 Elite and Target to build high-touch, high-value content journeys for their prospects. With ON24 Intelligence and Connect, they're able to understand the accounts with buying intent and surface those insights immediately to their sales teams. We believe that landing with multiple products allows us to access elevated levels of an organization and demonstrates the power of a unified digital engagement strategy. Our multi-product solutions are not just for the enterprise. In Q1, we saw a wave of fast growth, fast companies in the upper end of our commercial business come on board. Here are three 50k plus wins. One of our wins was with a leading product analytics software company who, after the recent IPO, needed an upgrade from an event management point solution to a crew digital engagement strategy. They purchased On24 Elite and Engagement Hub and are using us to run their field marketing events and ongoing demand generation programs. Another win came from a unicorn SaaS platform for employee experience who wanted to consolidate all of their go-to-market engagement on a single platform with live, always-on, and personalized experiences. We now power their demand gen, product marketing, marketing operations, and field marketing teams with our integrated solution that includes On24 Elite, Breakouts, Engagement Hub, and Target. Finally, we added an emerging productivity platform who came to us to help supercharge their lead generation as they move to their next growth stage. Our ability to deliver ongoing webinar experiences combined with interactive discussions and capture all the data along the way is why they chose ON24 Elite and Breakouts. As these customers grow, we believe the need for our platform will, too. We've seen our customers continue to make long-term commitments to us as the percentage of our ARR and multi-year agreements ended Q1 at the highest level ever and sequentially up from Q4 2021. Finally, we are strengthening our partner ecosystem and integrations, further differentiating our platform and allowing us to gain operational leverage. With the launch of the ON24 partner network earlier this year, We are creating an ecosystem of leading solutions and technology partners and formalizing how we integrate, co-market, and co-sell together. We believe this ecosystem will broaden our reach, extend our product and service offerings, and drive leverage in our go-to-market model. As I previously mentioned, our goal is to grow partner-influenced bookings over time to a 20% or higher contribution. Over the past quarter, we have been enabling our partners on the ON24 platform, building more integrations and driving pipeline. In March, we held our Momentum Partner Summit, where we had over several thousand people register across partners, customers, and prospects. This quarter, We recently developed a more advanced integration with HubSpot that enables customers to fully leverage the first-party engagement data we generate from ON24 and providing more ways for sales and marketing to take action from our data. One of our Q1 wins with a Boston-based biotech company highlights the potential of our partner network and integrations. This customer is introducing a new drug to market and needed to rapidly build out their digital force engagement strategy to engage and influence healthcare professionals for the first time. Task qualified leads to their sales team and showcase their advanced research and thought leadership content to the industry. Our deep integration with Viva dropped them to 124 and resulted in a multi-year, multi-product deal over 100K consisting of ON24 Link, Breakouts, Engagement Hub, and Target to deliver an ongoing and differentiated set of first-party insights directly to the system that their sales reps use. Before handing the call over to Steve, I wanted to take a moment to welcome our two new board members Tony Zingale brings 40 years of enterprise software experience and his guidance will be instrumental as we continue to transform our sales operation to scale our go-to-market opportunity. Anil Arora is a FinTech and marketing pioneer and brings over 25 years of experience in leading product, marketing, and leadership across technology, financial services, and consumer goods industries. I'm particularly excited by the new additions to our board and the guidance they will provide as we evolve our platform to drive ongoing, continuous engagement across the customer lifecycle. I'd also like to thank Holger Stott for his tenure on our board and his contributions to our company over the years. With that, I'll hand it over to our CFO, Steve Valtelloni, to walk you through our Q1 results in more detail and provide our outlook.