US LNG exports surge but will buyers in China turn up?
Introduction & Market Context
ON24 Inc (NYSE:ONTF) recently presented its August 2025 investor slides, highlighting the company’s strategic focus on AI-powered engagement solutions amid a challenging financial landscape. The presentation comes after ON24 reported mixed Q1 2025 results with an EPS miss of -$0.01 against an expected $0.02, though revenue slightly exceeded forecasts at $34.7 million. The company’s stock has seen a 4.06% decline to $4.73 as of August 7, 2025, significantly below its 52-week high of $7.04.
The digital engagement platform provider is positioning itself to capitalize on significant market trends, including the increasing digitization of B2B interactions. According to data presented by ON24, approximately 80% of B2B sales interactions between suppliers and buyers will occur in digital channels by 2025.
As shown in the following chart highlighting key digital transformation trends:
Executive Summary
ON24 reported Total (EPA:TTEF) ARR of $127.1M as of June 30, 2025, maintaining positive cash flow and a non-GAAP gross margin of 77%. The company serves 1,566 total customers, with 304 customers contributing more than $100K in ARR. Notably, 51% of ARR comes from multi-year agreements, and 66% from customers exceeding $100K in annual recurring revenue.
The key metrics slide reveals the company’s current financial position and customer metrics:
ON24’s customer base includes major enterprises across various sectors, with notable clients such as Salesforce (NYSE:CRM), Microsoft (NASDAQ:MSFT), Siemens (ETR:SIEGn), Fidelity, Abbott, RSM, Deloitte, Thomson Reuters (NYSE:TRI), and LexisNexis. This diverse client portfolio demonstrates the company’s cross-industry appeal and enterprise-grade capabilities.
The company’s customer base spans multiple industries as shown here:
Strategic Initiatives
ON24’s primary strategic focus is its evolution into an AI-powered engagement platform. The company is positioning its offering as a comprehensive solution combining experiences, engagement, and personalization, all powered by first-party data and AI capabilities.
The following image illustrates ON24’s intelligent engagement platform structure:
The company is emphasizing its data advantage as a key differentiator. ON24 collects extensive engagement data, including basic lead qualification information, enhanced marketing analytics, and advanced content performance metrics. This data powers personalized experiences and enables more effective marketing and sales efforts.
ON24’s data advantage is illustrated in this comprehensive overview:
The AI strategy is central to ON24’s future growth plans. The company is implementing AI across three key areas: data analytics, personalized experiences, and automated content creation. This approach aims to scale marketing impact through an integrated cycle of insights and content.
The AI-powered strategy is visualized in this diagram:
ON24 has built an extensive partner ecosystem, integrating with over 30 technology partners to enhance its platform capabilities and drive ROI. These integrations span CRM systems, marketing automation platforms, and other complementary technologies.
The partner ecosystem is showcased in this comprehensive overview:
Detailed Financial Analysis
ON24’s financial metrics show a company in transition. While maintaining positive cash flow, the company faced challenges in Q1 2025 with an EPS miss. The presentation reveals that ON24 has been steadily increasing its average core platform ARR per customer from approximately $70K in FY20 to around $80K in Q2’25, indicating success in expanding relationships with existing customers.
The company has also made significant progress in securing multi-year agreements, which grew from 29% of ARR in FY20 to 51% in FY24. Similarly, the percentage of customers with two or more products increased from 30% in FY20 to 39% in FY24, demonstrating improved cross-selling capabilities.
ON24 has successfully diversified its revenue streams beyond the technology sector. In 2019, technology companies represented 39% of revenue, which decreased to 30% by 2024. During the same period, life sciences grew from 14% to 20% of revenue, indicating successful vertical expansion.
The company’s customer base is heavily weighted toward larger enterprises, with 77% of revenue coming from companies with more than 1,000 employees. This focus on enterprise customers aligns with ON24’s strategy of securing larger, more stable contracts.
ON24 estimates its total addressable market (TAM) at $42 billion, evenly split between the US and international markets. This substantial market opportunity provides significant room for growth if the company can execute effectively on its strategic initiatives.
The global TAM is visualized in this market sizing chart:
Forward-Looking Statements
Looking ahead, ON24 is focused on maintaining positive free cash flow while investing in AI capabilities to drive future growth. The company’s 2025 focus areas include marketing engagement, HCP education, partner engagement, and advisor/client engagement in financial services.
The platform’s enterprise-scale capabilities, including 99.9% uptime and robust security certifications, position ON24 to continue serving large organizations with mission-critical engagement needs. The company processes over 1 billion data points annually, providing a strong foundation for its AI-powered personalization efforts.
Despite the positive outlook presented in the slides, investors should note the discrepancy between the optimistic tone of the presentation and recent financial performance. While ON24 emphasizes growth opportunities and technological advancement, the company’s Q1 2025 results showed a 7% year-over-year decrease in core platform revenue, highlighting ongoing challenges in the current market environment.
CEO Shiraz Shiran’s comment from the Q1 earnings call that "We are very close to turning this number positive" regarding profitability suggests cautious optimism, though the company acknowledges macroeconomic uncertainties that could impact near-term performance.
As ON24 continues its strategic pivot toward AI-powered engagement solutions, investors will be watching closely to see if these initiatives can translate into improved financial performance and a return to growth in the coming quarters.
Full presentation:
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.