Q3 2025 ON24 Inc Earnings Call

Will follow the formal presentation, if anyone should require operator assistance during the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded I will now turn the conference over to Lauren Sloane of Investor Relations. Thank you and you may begin.

Thank you Hello, and good afternoon, everyone. Welcome to our 24 third quarter 2025 earnings conference call on the call with me today are <unk> co founder and CEO of non 24, and Steve That's money Chief financial officer of non 24.

Sharat Sharan: With a focus on lowering our sales and marketing spending over the next two years and actively deploying AI within our organization to lower costs and streamline operations, we expect to deliver improved profitability in 2026 and beyond. Our goal is to return to ARR growth next year with a more profitable operating model. With that, Sharat and I will open the call up for questions. Thank you. We will now be conducting a question-and-answer session. Please press Star 1 on your telephone keypad if you would like to ask a question. The confirmation tone will indicate your line is in the queue. You may press Star 2 if you would like to remove your question from the queue. For participants using any speaker equipment, it may be necessary to pick up your handset before pressing the Star keys. Our first question comes from Rob Oliver with Baird.

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 fourth quarter and fiscal year 2025, as well as certain fourth quarter and full year non-GAAP protection.

These forward looking statements are subject to known and unknown risks and uncertainties that can adversely affect on 24, its future results and cause. These forward looking statements to be inaccurate, including our ability to grow revenue attract new customers and expand sales to existing customers.

Speaker #1: Greetings. Welcome to ON24's third quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

Speaker #1: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to Lauren Sloane of Investor Relations.

Access of our new product and capability and our ability to achieve our business strategies growth our process for evaluating indications of interests or other future events or conditions, such as the impact of adverse economic conditions and micro economic deterioration.

Speaker #1: Thank you, and you may begin.

Sharat Sharan: You may proceed with your question. Great. Thanks, Operator. Good afternoon. First question for me is around, Sharat, I think you called out nearly 20% of customers paying for your AI solutions. That's a really impressive number. I was hoping to get a sense from you guys of what sort of potential uptick you're seeing from that, recognizing it's still early, but that's a pretty sizable chunk. I just wanted to get a sense of how that's impacting contracts, whether that's contributing to that and continuously improving ACV number at enterprise. Any color there would be helpful. I just had a quick follow-up for Steve as well. Yeah. Rob, as you said, we now have one in five customers that is paying for our AI solutions. This number, as a percentage of revenue, is continuing to increase every quarter.

Speaker #2: Thank you. Hello, and good afternoon, everyone. Welcome to ON24's third quarter 2025 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.

On 24, it 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 statements reflect events that occur after this call.

Speaker #2: 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.

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.

Speaker #2: Including guidance for the fourth quarter and fiscal year 2025, as well as certain fourth 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 inaccurate.

We'd also like to point out that on today's call. We will report GAAP and non-GAAP results.

We use these non-GAAP financial measures to evaluate our ongoing operation and for internal planning and forecasting purposes.

Speaker #2: Including our ability to grow revenue, attract new customers, and expand sales to existing customers, the success of our new products and capabilities, and our ability to achieve our business strategies, growth, our process for evaluating indications of interest or other future events, or conditions such as the impact of adverse economic conditions and macroeconomic deterioration.

non-GAAP financial measures are presented in addition to and not as a substitute for financial measures calculated in accordance with GAAP.

Let's see a reconciliation of these non-GAAP financial measure please refer to today's financial press release.

Sharat Sharan: We expect it will continue to increase in Q4 and in future quarters. This also provides a significant white space as we move forward. We have recently announced our AI Translate and AI Propel Plus offerings. Our AI Translate allows our customers to take a webinar and convert that into 30 different languages and campaigns. AI Propel Plus is a brand new, modern, intuitive AI-powered solution that can easily turn every webinar or digital event into an omnichannel, multi-touch campaign or engagement. These two offerings, in addition to AI Aids now, will continue to provide increased momentum and to grow penetration with our AI offerings. You asked a question about already our AI solutions are, if you look at our expansion agenda after our content marketing solutions, they are number two in terms of where they fall in.

I will now turn the call over to shop. Please go ahead.

Thank you and welcome everyone to.

So the 124 third quarter, maybe 25 earnings call.

Speaker #2: 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.

I appreciate you joining us today.

With me is Steve <unk>, our Chief Financial Officer.

First let me touch on Q3 results.

From a P&L perspective, I'm happy to share that we delivered a strong Q3.

Speaker #2: 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.

With revenue and profitability above the high end of our guidance and had a strong performance on gross margins and free cash flow.

Speaker #2: We'd also like to point out that on today's call, we will report GAAP and non-GAAP results. We use these non-GAAP financial measures to evaluate our ongoing operations and for internal planning and forecasting purposes.

We ended Q3 with $144 $5 million in total Iraq.

While we expected Q3 to be seasonally soft.

You did see some unexpected impact the growth here at in Q3 from slower new growth bookings.

Sharat Sharan: My hope and expectation is sometime next year they will cross to become the largest driver of expansion for ON24. We expect our ASP on that number to increase with the additional products. We also expect the penetration, a number of customers to increase. The other thing is this is also helping us both from a retention point of view. It is helping us from an expansion point of view. Also, close to 40% to 50% of our new deals are including AI offerings still. That is an important thing as we move forward. As we move, yeah, I've talked about AI Propel Plus. I talked about AI Translate. As we move forward, we continue to focus on our agentic AI and AI search discoverability agenda also. All this that we are doing, Rob, is building on our strengths in first-party data.

Speaker #2: Non-GAAP financial measures are presented in addition to and not as a substitute for financial measures calculated in accordance with GAAP. To see a reconciliation of these non-GAAP financial measures, please refer to today's financial press release.

And the life Sciences vertical.

In Q3, we did see some deal slippage many of which have already closed in Q4.

Speaker #2: I will now turn the call over to Sharat. Please go ahead.

Importantly, we expect significantly better and our performance in Q4 compared to Q3.

Speaker #3: Thank you. And welcome, everyone, to the ON24 third quarter 2025 earnings call. I appreciate you joining us today. With me is Steve Vattuone, our Chief Financial Officer.

Which will set us up well for a stronger 2026.

There are a few commercial highlights that I would like to share.

First we recently signed a major new partnership with Linkedin, which I will discuss shortly.

Speaker #3: First, let me touch on Q3 results. From a P&L perspective, I'm happy to share that we delivered a strong Q3. With revenue and profitability above the high end of our guidance and had a strong performance on gross margins and free cash flow.

Second we continue to see strong performance from our AI offerings.

Close to one in five of our customers is paying for our AI offerings.

And we expect this number to increase into Q4 and future quarters.

Sharat Sharan: We have over a billion engagement minutes annually on our platform, and we have hundreds of thousands of webinar experiences on our platform. In the age of AI, both content and first-party data will win. The last thing I want to also mention, which we will also mention on the call, is that we are not only doing this for our customers, but we are also leveraging agents and others internally in the business. That's what gives us confidence about some of the stuff that we talked about on sales and marketing. Hope that helps. Yeah, that does help. That actually was going to be part of my second question for Steve, was around, clearly, it sounds, Steve, like you guys are, some of that really nice improvement on the sales and marketing and efficiency is coming from AI.

Speaker #3: We ended In Q3, we did see some deal slippage, many of which have already closed in Q4. Importantly, we expect significantly better ARR performance in Q4 compared to Q3.

Speaker #3: Q3 with 124.5 million dollars in total ARR. While we expected Q3 to be seasonally soft, we did see some unexpected impact to growth ARR in Q3 from slower new growth bookings including in the life sciences vertical.

Especially with the launch of two new packages.

Ill translate and propel Bliss.

And third win backs from Boomerang customers, especially in regulated industries continue.

While our Q3 in our performance was below expectations. We are excited that our customer base continues to adopt more of our products and we continue to see an increase in customers using two or more products.

Speaker #3: Which will set us up well for a stronger 2026. There are a few commercial highlights that I would like to share. First, we recently signed a major new partnership with LinkedIn, which I will discuss shortly.

That metric also hitting an all time high at the end of Q3.

In addition, we are seeing customers come back more and more to our platform with the average score <unk> per customer.

Sharat Sharan: I wondered if you could give us a little bit more color around how much is that tech innovation, how much of that is that low-hanging fruit internally, how much of it is potentially headcount? You guys have made some nice progress, not just stabilizing the business, but also growing at the higher ARR accounts at the enterprise level. I guess two-part question. One, some more color around the components of that go-to-market efficiency. Secondly, how do you do that in a way where you make sure you don't disrupt kind of the improvement that you guys have been showing at the upper end of the client range? Thanks very much. Sure. Let me go ahead and answer both of those questions for you. First off, we have streamlined our go-to-market organization over the past few years.

Reaching over 80000.

In Q3.

Speaker #3: Second, we continue to see strong performance from our AI offerings, close to one in five of our customers is paying for our AI offerings.

And the percentage of our IRR and multiyear contracts was the highest ever at the end of Q3.

Next I will discuss the exciting announcement, we recently made between on 24 in Linden to drive the next generation of event marketing.

Speaker #3: And we expect this number to increase into Q4 and future quarters, especially with the launch of two new packages, AI Translate and AI Propel Plus.

This partnership brings together on 24.

The premier B to be intelligent engagement platform and link them towards largest professional net.

Speaker #3: And third, win-backs from Boomerang customers, especially in regulated industries, continued. While our Q3 ARR performance was below expectations, we are excited that our customer base continues to adopt more of our products, and we continue to see an increase in customers using two or more products, with that metric also hitting an all-time high at the end of Q3.

This integration is a game changer for our customers that will enable them to not only multiply event promotion on Linkedin, but also drive additional audiences through there on 2014.

Ultimately.

Our collaboration will completely transform digital events by providing customers with seamless workflows that pushed on 24 events directly into Linda and events.

Sharat Sharan: We've reduced our sales and marketing quarterly spending from about $25 million in mid-2022 to less than $15 million a quarter in Q3. That's a reduction of about $10 million per quarter, or $40 million annually, over that period. In terms of how we'll lower the expense going forward, we have been deploying AI within our organization to increase efficiency, and we'll continue to do that. That includes using our own products to be more efficient. We're also looking at reallocating resources within our go-to-market organization to focus on the areas with the highest growth potential, which are currently in the regulated industries, particularly in financial services and professional services. Life sciences, while currently under some macro pressure, is also an area where we have historically been strong, and we will continue to invest there.

Speaker #3: In addition, we are seeing customers commit more and more to our platform, with the average core ARR per customer reaching over 80,000 at the end of Q3.

Frictionless registration that sink event registration data directly from Linden registration forms directly to 124.

And expanded audience suites, promoting one clinical events with high quality audiences on thickness.

Speaker #3: And the percentage of our ARR in multi-year contracts was the highest ever at the end of Q3. Next, I will discuss the exciting announcement we recently made between ON24 and LinkedIn to drive the next generation of event marketing.

The integration will be rolled out in several phases and ultimately this partnership will turn digital events into powerful connected campaigns that will drive business forward for both our customers and new prospects alike.

Speaker #3: This partnership brings together ON24, the premier B2B intelligent engagement platform, and LinkedIn, the world's largest professional network. This integration is a game changer for our customers that will enable them to not only multiply event promotion on LinkedIn, but also drive additional audiences to their ON24 emails.

Now I will discuss the product innovation that is centered around AI.

We continue to make significant enhancements with our AI enabled offerings.

Sharat Sharan: Lastly, we'll continue to look at ways to be more efficient and do more with less, which has allowed us to lower our sales and marketing spending over the past number of years, and we'll continue to do that. We can do all this while maintaining the right number of go-to-market resources, and that'll allow us to return to ARR growth in 2026. Great, thanks very much. Our next question comes from Michael Rackers with Needham & Company. You may proceed with your question. Hi, this is actually Scott Scapberg. I guess last questions here. Sharat, I wanted to start with the deal slippage you mentioned from Q3 to Q4.

Recently announced on 24, propel plus a brand new modern imputed forward solution that can easily turn every webinar or digital event into an omnichannel multi touch campaign are engaged.

Speaker #3: Ultimately, our collaboration will completely transform digital events by providing customers with seamless workflows that push ON24 events directly into LinkedIn events, frictionless registration that syncs event registration data directly from LinkedIn registration forms directly to ON24.

At the core of propel plus is that if our analytics and content engine, which as a reminder, enables our customers to repurpose webinars and other digital events into derivative content, including short video clips blog posts nurture assets, which enable.

Speaker #3: And expanded audience reach, promoting ON24 events with high-quality audiences on LinkedIn. The integration will be rolled out in several phases, and ultimately, this partnership will turn digital events into powerful connected campaigns that will drive business forward for both our customers and new prospects alike.

A multiplier campaign.

Yeah propel plus is powered by 120 <unk> first party engagement data all of which can be synced into CRM and marketing automation systems for use in re targeting and lookalike audience match.

Sharat Sharan: Sounds like you closed a number of those transactions already in the quarter, which is obviously good, but wanted to see, was there any commonalities with some of these deals that slipped in and out of Q3 and into Q4, or was it more, I guess, random in nature? I think, Scott, where we saw a little challenge in Q3, if you look at the pipeline, this is especially in the new business side, we saw a little less urgency in closing a deal from proposal plus to closure. I think Q3 tends to be seasonally, summer quarter, seasonally softer. We saw deals move from discovery to proposal plus. The proposal plus to closure, we saw them, we saw $6,000, $7,000 worth of deals that slipped into Q4. Like I said, about 60%, 65% of those deals have already closed in Q4. That gives us a good sense.

Speaker #3: Now, I will discuss our product innovation that is centered around AI. We continue to make significant enhancements with our AI-enabled offerings. Recently announced, ON24 AI Propel Plus: a brand new, modern, intuitive, AI-forward solution that can easily turn every webinar or digital event into an omnichannel multi-touch campaign or engagement.

And for those enterprise customers driving global engagement customers compare our product capabilities on 24 Grand slate.

Our multilingual translation offering which allows customers to localize every piece of content.

So they can seamlessly launched the campaign in over 60 countries.

Imagine, taking a single webinar or virtual event.

Speaker #3: At the core of AI Propel Plus is our AI-powered analytics and content engine, which, as a reminder, enables our customers to repurpose webinars and other digital events into derivative content, including short video clips, blog posts, nurture assets, which enable a multiplier campaign effect.

Converting all elements of that including registration pages lobby pages, webinar, and all derivative content and over 60 languages.

As an example.

One of the largest global technology companies expanded its use of 124 to localize and scale its digital event program across multiple markets.

Speaker #3: AI Propel Plus is powered by ON24's first-party engagement data, all of which can be synced into CRM and marketing automation systems for use in retargeting and lookalike audience matching.

The team needed a faster more efficient way to translate and publish localized content for regional audiences without relying on external vendors.

Sharat Sharan: That's what we saw predominantly on the new business side. The install-based business was fine. We did expect it to be a seasonally softer quarter, so that's what happened. We also did see some pressure in the pharma business. Now, that has been a great business for us throughout, but in the last six to nine months, we've seen some short-term pressure in the pharma business. That being said, as we talked about it, our average core ARR per customer reached its highest level ever at over $80,000 per customer. The percent of ARR and multi-year agreements hit an all-time high, and the percentage of customers using two or more products also hit an all-time high. Now, as I look at it, let me just also give you a color on Q4 ARR. Steve talked about it.

With on 24 is built in translation and automation capabilities the.

Speaker #3: And for those enterprise customers driving global engagement, customers can pair our AI product capabilities with ON24 Translate. Our multilingual translation offering, which allows customers to localize every piece of content so they can seamlessly launch their campaigns in over 60 countries.

The company can now localized over 4500 events annually and.

In 12 languages.

Ensuring consistent branding SaaS.

Faster campaign timelines.

And deeper engagement in key international markets.

Speaker #3: Imagine taking a single webinar or virtual event, converting all elements of that, including registration pages, lobby pages, webinar, and all derivative content in over 60 languages.

Next I.

I will share a couple of new power technology solutions that.

And then we will be launching soon.

First.

One click social publishing a capability that will help marketers repurpose and refine their content across social media channels.

Speaker #3: As an example, one of the largest global technology companies expanded its use of ON24 to localize and scale its digital event program across multiple markets.

This AI powered solutions will further support our customers' ability to create and post short form video clips across major social media channels like Youtube linked.

Sharat Sharan: Q4, it's hard to kind of provide guidance on ARR in itself. Q4 is even harder because it's such a back-and-forth quarter. We've given a wider range of 0.5% to -1%, but we believe we are within striking distance of getting to positive ARR. We expect this to be one of the best gross retention quarters in Q4 in the last four to five years. We expect continued momentum from our AI offerings, both from new and expansion business. We also expect that the LinkedIn partnership will also start helping us drive improved new business and customer retention. We will continue to see momentum in win-backs and continuing traction in regular industries. Yes, we have some work to do, but we've made some significant progress and enhancements in our business. Sharat, very helpful there. Thank you.

Speaker #3: The team needed a faster and more efficient way to translate and publish localized content for regional audiences without relying on external vendors. With ON24's built-in translation and automation capabilities, the company can now localize over 4,000 500 events annually in 12 languages.

Lindon.

Facebook and.

<unk> X with one click of a button.

Second is our focus on AI agents.

These on 24, AIA agents will help customers automatically set up events with the right registration and login pages to ensure the experiences tailored to the right target audience.

Speaker #3: Ensuring consistent branding, faster campaign timelines, and deeper engagement and key international markets. Next, I will share a couple of new AI-powered technology solutions that we will be launching soon.

And for our global customers, we're going to support agenda video translation that will convert videos into multiple languages, while maintaining the speakers voice.

And delivery.

Sharat Sharan: On the LinkedIn partnership, I just wanted to connect on that, I guess. When you look at that, is that, I mean, the way you kind of described it sounds like a channel, something for your customers to be able to tap into from a distribution perspective. Is there any monetization opportunity with that, or is it really just more about enhancing the platform to improve customer kind of retention and stickiness and make it even more attractive? Thank you. Yeah. I think there are stages to that. Let me just explain this. It's bigger than you may be thinking right now as we launch the various phases. This will literally drive the next generation of event marketing. We are the only webinar platform, maybe digital engagement platform, that LinkedIn has done this collaboration with.

Even synchronize lips to speech to provide a global footprint for presentations.

Speaker #3: First, OneClick Social Publishing, a capability that will help marketers repurpose and refine their content across social media channels. This AI-powered solution will further support our customers' ability to create and post short-form video clips across major social media channels like YouTube, LinkedIn, Facebook, and X, with one click of a button.

Another area is agenda video clip optimization, which will allow our customers to identify and develop different types of video clips.

Using an erythroid a chat interface to refine the video output of video clips and determined the clips relevance for different use cases.

These video clips will also support dynamically configured layouts, such as vertical or corporate as well as horizontal or landscape orientations and be designed for social media sharing the magnify program reach and engagement.

Speaker #3: Second, is our focus on AI agents. These ON24 AI agents will help customers automatically set up events with the right registration and lobby pages to ensure the experience is tailored to the right target audience.

Finally, and most importantly, we are focused on AI and LLM search discovery ability.

Sharat Sharan: I believe this is going to be a game changer for our customers. This partnership will ultimately transform digital events. What this allows you to do is if you are publishing an event in ON24, you can literally seamlessly drive audiences from LinkedIn to come into that event. You can publish events directly on LinkedIn in just a few clicks, and then quickly promote and capture registrants to drive seamless registration. This is just the first phase of our integration. As we move forward, what you will see, in the first phase, yes, it is going to be more about retention. It's going to be more about new customers. Just imagine now that customers can get through LinkedIn ads automatically for the event that they are doing. They can drive 10, 20, 50, 100 registrants right from the LinkedIn channel seamlessly.

Speaker #3: And for our global customers, we're going to support agentic AI video translation that will convert videos into multiple languages while maintaining the speaker's voice, tone, and delivery.

As Llm's take a bigger role as default search engines on 24 will use AI to help our clients create a deep reservoir of.

Fresh LLM search optimized and discoverable content.

Speaker #3: Even synchronized lips to speech to provide a global footprint for presentations. Another area is agentic AI video clip optimization, which will allow our customers to identify and develop different types of video clips using an iterative chat interface to refine the video output of video clips and determine the clip's relevance for different use cases.

Our AI discoverable at these solutions will help customers optimize content for LLM indexing and readability.

Enhancing landing pages and summarizing content using the right HTML and Java script markup and information architecture.

Sales and marketing go to market has been transformed.

And on 24 isn't the driver to seek to become the AI enabled engagement platform.

Speaker #3: These video clips will also support dynamically configured layouts, such as vertical or portrait, as well as horizontal or landscape orientations, and be designed for social media sharing to magnify program reach and engagement.

Empowers business users do more with less and achieve measurable results.

Sharat Sharan: In subsequent phases, what we'll be able to do here, Scott, we'll be able to leverage our first-party engagement data. With LinkedIn, we'll be able to allow that they will allow lookalike audiences from LinkedIn. We provide them some data to say, these are the people that we want. They'll provide lookalike audience data, and that will be able to provide those very specific audiences into the events of our customers. That will be monetizable. We'll have a monetizable skew on that that will impact our top line. We are very excited about the potential of this partnership and its impact to our growth in 2026 and beyond. Very helpful. Thanks for taking my questions. Our next question comes from DJ Hines with Canaccord Genuity. You may proceed with your question. Hey, guys. This is Luke on for DJ. Thanks for taking the question.

I am proud.

In its latest report <unk>, the world's largest and trusted marketplace for software based on user reviews ranked on 24 is the number one leader.

Speaker #3: Finally, and most importantly, we are focused on AI and LLM search discoverability. As LLMs take a bigger role as default search engines, ON24 will use AI to help our clients create a deep reservoir of fresh LLM search-optimized and discoverable content.

In the enterprise grade for webinar platforms as measured by market presence and customer satisfaction.

We see this recognition by G tube as proof that our AI driven engagement engine is delivering ROI to customers at scale.

Speaker #3: Our AI discoverability solutions will help customers optimize content for LLM indexing and readability. Enhancing landing pages and summarizing content using the right HTML and JavaScript markup and information architecture.

Next.

I wanted to discuss our continued momentum and customer win backs from boomerang customers, especially in the regulated industry verticals.

There are a couple of examples.

A leading provider of retirement and investment management solutions selected on 'twenty four to enhance and scale its retirement plan education programs.

Speaker #3: Sales and marketing go-to-market is being transformed, and ON24 is in the driver's seat to become the AI-enabled engagement platform that empowers business users to do more with less and achieve measurable results.

Sharat Sharan: Maybe to start, could you just tell us a little bit more about this AI search discoverability agenda you laid out, the vision there, what those products will entail and look like, and what you think you can achieve there? Yeah. Some of this is early look, and I don't want to disclose everything, but let me share some of this information just at a high level. When our customers do event, they are registration pages. They have lobby pages. They do the webinar. Now they get the derivative content. They get the blogs, takeaways, all their transcripts. They get all the video key moments and all that kind of information. Now, as you know, what the LLMs do, they basically scour places like the search and different places, and they develop a foundation.

Previously managing a large number of recurring sessions through a legacy provider.

Speaker #3: I am proud that in its latest report, G2, the world's largest and trusted marketplace for software based on user reviews, ranked ON24 as the number one leader in the enterprise grid for webinar platforms, as measured for market presence and customer satisfaction.

The team faced challenges with manual workflows and limited personalization.

On 24.

They can now automate post event engagements integrate insights into their CRM and deliver personalized participant experiences at scale.

Another example of a win back was from the Big pharma space.

Speaker #3: We see this recognition by G2 as proof that our AI-driven engagement engine is delivering ROI to customers at scale. Next, I want to discuss our continued momentum and customer win-backs from Boomerang customers, especially in the regulated industry verticals.

Biopharmaceutical leader with John on 24 to elevate its digital HCP engagement strategy and move beyond basic web conferencing tools.

The team needed a compliance interactive and data rich platform that could support life education and integrate directly with its CRM and Veeva systems.

Sharat Sharan: Now, what we are going to be able to do, if you're doing like 100, 200, 300, 400 webinars, we'll provide you things like, of course, things like transcripts, but all other things. As you structure your content on the ON24 platform, we'll make it, and once it is done, we'll make it available to you, whether it's on demand, and others. All that content can be indexed by the LLMs, okay? It's discoverable by the LLMs, indexed by the LLMs. Remember, you are no longer talking about a live event that is done on an event basis. You're talking about really continuous engagement, all the other content. You'll be able to take all your video content, publish it to YouTube, and other stuff.

Speaker #3: Here are a couple of examples. A leading provider of retirement and investment management solutions selected ON24 to enhance and scale its retirement plan education programs.

With 124, we now deliver immersive fully branded experiences with interactive features all while capturing first party engagement data that drives more informed follow up.

Speaker #3: Previously managing a large number of recurring sessions through a legacy provider, the team faced challenges with manual workflows and limited personalization. With ON24, they can now automate post-event engagement, integrate insights into their CRM, and deliver personalized participant experiences at scale.

Finally.

Let's turn to how we are using AI to drive efficiencies in our own organization.

We generated positive free cash flow for the seventh consecutive quarter and expect to drive further progress on profitability in 2026.

Sharat Sharan: There will be an ability to take all that content, index that into the LLM so that they become part of the search, okay? Hopefully, that makes sense. There is a lot more work that we are doing in that regard. Again, with all the content, 130,000 experiences that we have on the platform, and then all the other derivative content, imagine, especially with translations, we have, imagine we have the 130,000 experiences on the platform, and each experience converts into 15 more derivative contents of different languages and other stuff. Imagine you've got over 2 million pieces of content across the platform. Now, how do you make it so that it is indexable by the LLMs? How do you make it very easy so that it's searchable by the LLMs? That's an area that we are very focused on. Excellent. Very helpful.

Speaker #3: Another example of a win-back was from the Big Pharma space, a global biopharmaceutical leader with joint ON24 to elevate its digital HCP engagement strategy and move beyond basic web conferencing tools.

Specifically, we are leveraging AI to increase efficiency and operations and moving forward. We're actively focused on deploying AI tools within the company to improve productivity, especially in sales and marketing and to drive higher profit margins.

Speaker #3: The team needed a compliant interactive and data-rich platform that could support live education and integrate directly with its CRM and Viva systems. With ON24, they now deliver immersive fully branded experiences with interactive features, all while capturing first-party engagement data that drives more informed follow-up.

We are targeting a double digit improvement in sales and marketing expenses as a percentage of revenue in the next two years.

Currently sales and marketing as a percentage of revenue is in the low <unk>.

And we expect to reduce this to the mid thirties and.

In 12 months.

And to the low thirties in two years.

With the benefits of AI.

We believe we can better align our overall expense structure without compromising our innovation roadmap and go to market success.

Speaker #3: Finally, let's turn to how we are using AI to drive efficiencies in our own organization. We generated positive free cash flow for the seventh consecutive quarter and expect to drive further progress on profitability in 2026.

Sharat Sharan: Maybe just a quick follow-up. As we think about this LinkedIn partnership, you've described it as a multi-phase approach. Just how should we be thinking about the timeline and the various phases and when that will be complete? I think you should be thinking in terms of the first phase is this year. Phase two will launch approximately by the end of the year, which is going to be much more typing of the partnership. By Q1, you will start to see elements which will be monetizable in the platform. You should assume by February, we'll be able to launch things like the lookalike audiences that will be monetizable by ON24 for our customers. That's where we believe that is going to move forward.

To sum up.

We believe we are well positioned to capture the growth opportunity in our market by bringing innovation to our industrial.

Speaker #3: Specifically, we are leveraging AI to increase efficiency and operations and moving forward, we are actively focused on deploying AI tools within the company to improve productivity, especially in sales and marketing, and to drive higher profit margins.

We are making on 24, the AI enabled engagement platform that empowers business users to do more with less to achieve measurable results.

We continue to see impressive win backs as boomerang clients graves the power of the onto one platform to automate post event engagement.

Speaker #3: We are targeting a double-digit improvement in sales and marketing expenses as a percentage of revenue in the next two years. Currently, sales and marketing as a percentage of revenue is in the low 40s.

Integrate insights into their CRM and deliver personalized participant experiences at scale.

We are excited about the enhanced solutions, we can deliver to our customers through our partnership with Linkedin.

Speaker #3: And we expect to reduce this to the mid-30s in 12 months and to the low 30s in two years. With the benefits of AI, we believe we can better align our overall expense structure without compromising our innovation roadmap and go-to-market success.

And the expansion of our AI solutions, including a gentex yeah.

Sharat Sharan: By the end of Q1, I expect the integration to be extremely tight between ON24 and LinkedIn to really provide meaningful capability to our customers and start to provide an inflection on our top line. Excellent. Thank you. Our next question comes from Elinda Lee with William Blair. You may proceed with your question. Thank you for taking my question here. Just a quick one to start off. Since changing, updating the go-to-market motion into more of an enterprise focus, has the new go-to-market motion performed? How has it performed compared to your expectations so far? Yeah. Elinda, when we talk about the go-to-market motion, there are multiple parts to that. Again, it's more enterprise focus. We deliberately made a thing about being focused more on regular industries like financial services, life sciences, and professional services. I'll just provide you some information.

We look forward to driving the company to profitable growth.

In 2026.

Before I turn it over to Steve I wanted to provide an update.

Speaker #3: To sum up, we believe we are well-positioned to capture the growth opportunity in our market by bringing AI innovation to our industry. We are making ON24 the AI-enabled engagement platform that empowers business users to do more with less to achieve measurable results.

The company has received indications of interest for a potential acquisition of the company.

The board is evaluating the indications of interest with Goldman Sachs its financial adviser.

There can be no assurances as to the outcome of this process.

Speaker #3: We continue to see impressive win-backs as Boomerang clients crave the power of the ON24 platform to automate post-event engagement, integrate insights into their CRM, and deliver personalized participant experiences at scale.

The purpose of our call today is our third quarter results and we ask that you keep your questions focused on this topic.

Now I will turn it over to Steve.

Thank you Sharon and good afternoon, everyone.

I'm going to start with our third quarter 2025 results and will then discuss our outlook for the fourth quarter 2025, and full year of 2025.

Speaker #3: We are excited about the enhanced solutions we can deliver to our customers through our partnership with LinkedIn, and the expansion of our AI solutions including Agentic AI.

Total revenue for the third quarter, which includes revenue from our virtual conference product was $34 6 million.

Speaker #3: We look forward to driving the company to profitable ARR growth in 2026. Before, I turn it over to Steve; I wanted to provide an update.

Sharat Sharan: I mean, our regular industries business is about 50% of our business now, okay? Four or five years back, that was about 33% or 34% of our business. Now, I know we are having some short-term headwinds in the life sciences business. If you look at our financial services business, which is about 20%, and if you add our professional services business, which also has national and state regulations, so it's part of the regular industries, those two businesses, which are 35%, are growing mid-single digits year over year. They're also very high gross retention businesses, close to 90%. Essentially, I think that execution and really tightening up our focus on financial services and life sciences has helped.

Total subscription and other platform revenue was $32 million.

Total professional services revenue was $2 $6 million, representing approximately 8% of total revenue.

Speaker #3: The company has received indications of interest for a potential acquisition of the company. The board is evaluating the indications of interest with Goldman Sachs, its financial advisor.

Revenue from our core platform, including services in Q3 of 2025 was $34 million moving.

Moving onto IRR.

<unk> represents the annualized value of all subscription contracts at the end of the period and excludes professional services and Overages.

Speaker #3: There can be no assurances as to the outcome of this process. The purpose of our call today is our third-quarter results and we ask that you keep your questions focused on this topic.

Total <unk> at the end of Q3 was $124 $5 million and they are related to our core platform was $122 4 million.

Speaker #3: Now, I will turn it over to Steve.

As Sean discussed earlier, while we did see some softness and deal slippage in our growth business during a seasonally softer summer quarter, including in the life Sciences vertical.

Speaker #2: Thank you, Sharat, and good afternoon, everyone. I'm going to start with our third-quarter 2025 results, and we'll then discuss our outlook for the fourth quarter 2025 and full year 2025.

Sharat Sharan: Also, tightening up our focus on the go-to-market as we are focused on our strategic accounts and the next-year accounts, both from a customer success, from a marketing, and sales point of view, has helped us significantly. We expect to continue to basically do that. As we move forward, you will see us continue to emphasize our AI-based offerings. You will see us continue to focus a lot more on the regulated industries. This is also being seen in cases of the win-backs. We are seeing whether it's in the regulated industries or otherwise. I'll give you an example of a customer win-back.

We see many positive signs in our business and we expect to improve our performance in Q4, which I'll cover when I discuss guidance.

Speaker #2: Total revenue for the third quarter, which includes revenue from our virtual conference product, was $34.6 million. Total subscription and other platform revenue was $32 million.

Now, let me cover some of our customer metrics.

Our continued focus on larger enterprise customers has resulted in improvements in a number of our customer metrics. Our continued focus on enterprise customers resulted in our average core <unk> per customer, reaching its highest level ever at over $80000 per customer.

Speaker #2: Total professional services revenue was $2.6 million representing approximately 8% of total revenue. Revenue from our core platform, including services in Q3 of 2025, was $34 million.

Our strategy of moving customers to longer term commitments has resulted in the percentage of our multi year agreements hitting another all time high at the end of Q3.

Speaker #2: Moving on to ARR, ARR represents the annualized value of all subscription contracts at the end of the period and excludes professional services and overages.

Sharat Sharan: A leading provider of retirement and investment management solutions left us to go to one of the collaboration tools, and they came back to us because when they went there, they do a lot of recurring sessions, and they could not do those through a legacy provider. The team faced challenges with manual workflows and limited personalization. With ON24, they can now automate post-event engagement, integrate insights into their CRM, and deliver personalized participant experiences at scale. As we move forward, and I think we've talked about the sales and marketing efficiency, you will see us double down even more in that category. Well, another question here. With the new CMO joining early in the year here, how has the transition been in terms of the onboarding of the new CMO, David Lee?

This number was 51% at the end of 2024 and increased sequentially each quarter in 2025.

Speaker #2: Total ARR at the end of Q3 was $124.5 million, and ARR related to our core platform was $122.4 million. As Sharat discussed earlier, while we did see some softness and deal slippage in our growth business during a seasonally softer summer quarter, including in the life sciences vertical, we see many positive signs in our business, and we expect to improve ARR performance in Q4, which I will cover when I discuss guidance.

Our emphasis on increasing the deployment of our product set including our new AI enabled products within our customer base has shown results in Q3, the percentage of our customers using two or more products hit an all time high having increased sequentially every quarter in 2025.

As Sean discussed almost one in five of our customers are now using and paying for our AI solutions, a number which has continued to grow sequentially each quarter of the past seven quarters since the beginning of 2024.

Speaker #2: Now, let me cover some of our customer metrics. Our continued focus on larger enterprise customers has resulted in improvements in a number of our customer metrics.

Speaker #2: Our continued focus on enterprise customers resulted in our average core ARR per customer reaching its highest level ever at over $80,000 per customer. Our strategy of moving customers to longer-term commitments has resulted in the percentage of our ARR in multi-year agreements hitting another all-time high at the end of Q3.

In Q3, the $100000 above customer cohort represented approximately two thirds of our total IRR consistent with last quarter with 294 customers in this cohort the.

Sharat Sharan: What are the strategies here in terms of, as you guys are focusing more on the AI products and features and capabilities to your customers in your conversations with sales teams? If you could give more color on that. Yeah. I think David has joined; it's been some time since he joined now in our business. That's kind of a lifetime. So he's very well ramped up. When we look at our teams, go-to-market teams, Elinda, David has a head of demand generation. Now, we also changed that position, and there is a really good VP, demand generation, that he brought on. He also brought on a VP, corporate marketing, that's really driving a lot of our agenda on LinkedIn and other stuff. He's got other people like VP, product marketing.

The total customer count at the end of Q3 was 521.

Before turning to expense items and profitability I would like to point out that I will be discussing non-GAAP results going forward are.

Speaker #2: This number was 51% at the end of 2024 and increased sequentially each quarter in 2025. Our emphasis on increasing the deployment of our product set, including our new AI-enabled products within our customer base, has shown results.

Our non-GAAP results exclude stock based compensation restructuring charges impairment charges for real estate amortization of acquired intangibles shareholder activism related costs certain legal costs related to litigation regarding our 2021, IPO as well as certain other items.

Speaker #2: In Q3, the percentage of our customers using two or more products hit an all-time high, having increased sequentially every quarter in 2025. As Sharat discussed, almost one in five of our customers are now using and paying for our AI solutions, a number which has continued to grow sequentially each quarter of the past seven quarters since the beginning of 2024.

Our GAAP financial results, along with a reconciliation between GAAP and non-GAAP results can be found within our earnings release.

Our gross margin in Q3 was 76%.

Sharat Sharan: Now, the corporate marketing and demand generation leaders are very closely tied with the sales teams and the customer success team. That's become a very important part of our agenda. The focus on LinkedIn, the focus on they're doing campaigns for financial services and regulated industries. They're doing campaigns on the expansion team and for AI-based offerings. Again, I think the go-to-market team is working very, very closely. David and his team are quite ramped up, and that gives us confidence that we can, as we move forward, be more efficient in the sales and marketing spend and also continue to deliver our growth numbers. Awesome. That's helpful. Thank you. Ladies and gentlemen, this concludes our question-and-answer session and does conclude today's teleconference as well. Thank you for your participation. Please disconnect your lines and have a wonderful day.

Our year to date gross margin through Q3 was 77%, which is consistent with our gross margin for the 2025 fiscal year.

Now moving onto operating expenses.

Sales and marketing expense decreased in Q3 to 14 4 million compared to $15 9 million in Q3 last year.

This represents 42% of total revenue compared to 44% in the same period last year and 43% last quarter.

Our sales and marketing expenses have decreased in absolute dollars as a percentage of revenue both year over year and from last quarter as we continue deploying AI tools to increase efficiency.

R&D expense in Q3 was $6 6 million.

Compared to $6 7 million in Q3 last year.

This represents 19% of total revenue compared to 18% in the same period last year and 19% last quarter.

We have continued to invest in product innovation for our platform, including AI enabled features that utilize our first party data advantage.

G&A expense in Q3 was $5 8 million.

Compared to $6 2 million in Q3 last year.

This represents 17% of total revenue compared to 17% in the same period last year and last quarter.

We have taken actions to reduce our G&A spending as a result, our G&A expenses in absolute dollars have decreased as compared to the same period last year and last quarter as we have continued to streamline our G&A functions.

Moving on to our bottom line performance and cash flow metrics Apo.

Operating loss for Q3 was <unk> 4 million or.

our sales and marketing expenses have decreased in absolute dollars, as a percentage of Revenue both year-over-year and from last quarter, as we continue deploying AI tools to increase efficiency,

Or a negative 1% operating margin compared to an operating loss of zero point $8 million and a negative 2% operating margin in the same period last year.

R&D expense and Q3 was 6.6 million compared to 6.7 million in Q3 last year.

Net income in Q3 was $1 2 million or <unk> <unk> per share based on approximately $45 1 million diluted shares outstanding this.

This represents 19% of total revenue, compared to 18% in the same period last year and 19% last quarter.

This compares to net income of $1 1 million or <unk> <unk> per share in Q3 last year using approximately $45 6 million diluted shares outstanding.

We have continued to invest in product Innovation for our platform, including AI enabled features that utilize our first-party data advantage.

We delivered positive adjusted EBITDA in Q3, and delivered our seventh consecutive quarter of positive free cash flow.

G&A expense in Q3 was 5.8 million compared to 6.2 million in Q3 last year.

This represents 17% of total revenue compared to 17% in the same period last year and last quarter.

Our free cash flow in Q3 was positive $2 $7 million, excluding cash outflows related to our restructuring efforts shareholder activism fees and certain other legal costs, which collectively totaled <unk> 5 billion in Q3 2025.

We have taken actions to reduce our GNA spending and as a result, our GNA expenses and absolute dollars have decreased as compared to the same period last year and last quarter, as we have continued to streamline our GNA functions.

Moving on to our bottom line, performance, and cash flow metrics.

Our free cash flow in Q3, including all of these items was positive $2 $2 million compared to positive <unk> 1 million in Q3 of last year.

Cash provided by operations in Q3 was $2 5 million compared to cash provided by operations of zero point $3 million in Q3 last year.

Operating loss for Q3 was 0.4 million or a negative 1% operating margin compared to an operating loss of 0.8 million and a negative -2%. Operating margin in the same period last year.

Net. Incoming, Q3 was 1.2 million or 3 cents per share. Based on approximately 45.1 million diluted shares outstanding.

I would like to provide an update on the $50 million capital return program, we announced in May of this year.

In Q3, we utilized approximately $7 million for share repurchases under this program and a further $2 4 million thus far in Q4 under this program.

This compares to net income of $1.1 million, or $0.02 per share, in Q3 last year, using approximately 45.6 million diluted shares outstanding.

Since we launched this program in May we have utilized a total of approximately $13 8 million under this program.

We delivered positive adjusted ebitonmo.

Our free cash flow.

This share repurchase program. Following the completion of three earlier capital return programs are three earlier capital return programs collectively returned $191 million to shareholders.

Our balance sheet remains strong with approximately $175 million of cash and investments at the end of Q3.

In Q3 was positive 2.7 million, excluding cash outflows related to our restructuring efforts, shareholder activism fees and certain other legal costs, which collectively total 0.5 billion in Q3 2025.

Now turning to our guidance.

Regarding Q4 guidance, we expect Q4 total revenue, which includes our virtual conference product in the range of $33 9 million to $34 5 million and core platform revenue, including services in the range of $33 3 million to $33 9 million.

Our free cash flow, Q3 including all of these items was positive. 2.2 million compared to positive 0.1 million in Q3 of last year.

Cash provided by operations in Q3 was 2.5 million compared to cash provided by operations of 0.3 million in Q3 last year.

Professional services is expected to represent approximately 8% of total revenue.

I would like to provide an update on the $50 million Capital return program. We announced in May of this year.

We expect our gross margin to be 76% to 77% in Q4.

We expect a non-GAAP operating loss in the range of zero point $8 million to zero point $2 million.

In Q3 we utilize approximately 7 million for share repurchases under this program and a further 2.4 million thus far in Q4 under this program.

And non-GAAP net income per share of <unk> <unk> per share to <unk> <unk> per share using approximately $44 8 million diluted shares outstanding.

Since we launched this program in May, we have utilized a total of approximately $13.8 million under this program.

In Q4, we also expect to be adjusted EBITA positive.

Our three earlier capital return programs collectively returned $191 million to shareholders.

We expect a restructuring charge of <unk> 5 million to <unk> 8 million in Q4 related to our ongoing cost reduction efforts, which is excluded from the non-GAAP amounts provided above.

of cash and Investments at the end of Q3,

Now, turning to our guidance.

Amortization of acquired intangibles shareholder activism costs and certain other legal costs and certain other items are excluded from the Q4 non-GAAP amounts provided above.

Now I would like to provide our outlook for IRR.

We expect to see meaningful improvement in our performance in Q4 as compared to Q3.

Regarding Q4 guidance. We expect Q4 total revenue which includes our virtual conference product in the range of 33.9 million to 34.5 million and core platform Revenue, including services in the range of 33.3 million to 33.9 million.

We expect to end the year with the strongest gross retention in 2025 and expect our gross bookings to deliver a strong performance.

Professional Services is expected to represent a proximately 8% of total revenue.

We expect our gross margin to be 76% to 77% in Q4.

That being said it is early in the quarter in Q4 tends to be a backend loaded quarter. So we are providing a wider range for Q4 core <unk> performance and.

In Q4, we expect court our performance to range from a decrease of 1% to an increase of zero point $5 million as compared to Q3 levels.

We expect a non-gaap operating loss in the range of 0.8 million to 0.2 million and non-gaap net income per share of 1 cent per share to 2 cents per share using approximately 44.8 million diluted shares outstanding.

In Q4 we also expect to be adjusted ebata positive.

For a virtual conference product, we expect the IRR to be $2 million at the end of 2025.

Now turning to our annual guidance for 2025 for.

For the full year, we expect total revenue to be in the range of $138 6 million to $139 2 million.

We expect a restructuring charge of 0.5 million to 0.8 million in Q4 related to our ongoing cost reduction efforts, which is excluded from the non-gaap amounts provided above.

Amortization of acquired intangibles, shareholder activism costs.

Professional services is expected to represent seven 5% to 8% of total revenue.

Certain other legal costs and certain other items are excluded from the Q4 non-GAAP amounts provided above.

We expect core platform revenue, including services to be in the range of $136 million to $136 6 million.

We expect to see a meaningful improvement in our performance in Q4 as compared to Q3.

We expect a non-GAAP operating loss in the range of $4 2 million to $3 6 million and non-GAAP net income per share of <unk> <unk> per share to <unk> <unk> per share using approximately 45 million diluted shares outstanding.

We expect to end the year with the strongest gross retention in 2025 and expect our growth bookings to deliver a strong performance.

That being said, it is early in the quarter in Q4 tends to be a back-end loaded quarter. So we are providing a wider range for Q4. Core our performance.

We expect gross margins for the year to be 76% to 77%.

We expect to be adjusted EBITA positive in Q4 and for 2025.

In Q4, we expect core our performance to range from a decrease of 1% to an increase of 0.5 million as compared to Q3 levels.

Excluding any incremental non-GAAP expenses, we expect to deliver positive free cash flow in 2025, our second consecutive year of positive free cash flow.

For our virtual conference product, we expect the ARR to be million dollars at the end of 2025.

Now, turning to our annual guidance for 2025.

Restructuring charges and amortization of acquired intangibles shareholder activism costs certain other legal costs and certain other items are excluded from our full year non-GAAP amounts provided above.

For the full year, we expect total revenue to be in the range of $138.6 million to $139.2 million.

As Sean discussed we are making progress in improving our go to market strategy, which has allowed us to lower our sales and marketing spending as we exit 2025 and head into 2026.

Professional Services is expected to represent 7.5 to 8% of total revenue.

We expect core platform Revenue, including services, to be in the range of 136 million to 136.6 million.

We're actively deploying AI tools at <unk> 24 to improve efficiency and streamline our operations, including in the go to market functions.

We are very focused on improving our profitability and expect to lower our sales and marketing expenses as a percentage of revenue by mid single digits by the end of next year and by double digits. In the next two years. This should bring our sales and marketing expenses as a percentage of revenue down to the mid thirties, and 12 months and low.

we expect a non-gaap operating loss in the range of 4.2 million to 3.6 million and non-gaap net income per share of 5 cents, per share to 6 cents per share using approximately 45 million diluted shares outstanding,

We expect gross margins for the year to be 76 to 777%.

We expect to be adjusted ebata positive in Q4 and for 2025.

<unk> in two years.

We expect these cost reductions will flow to the bottom line and increase our profitability in 2026 and beyond.

Excluding any incremental non-gaap expenses. We expect to deliver positive free cash flow in 2025 our second consecutive year of positive free cash flow.

In summary in Q3, we made significant progress on our strategic roadmap, while delivering P&L results above guidance, we expect to deliver better performance in Q4, driven by improved gross retention performance increased AI penetration in our customer base.

Restructuring charges and amortization of acquired intangibles shareholder activism costs, certain other legal costs and certain other items are excluded from the full year, non-gaap amounts provided above.

New business performance for regulated industries, and our exciting new partnership with Linkedin.

Estra discussed, we are making progress in improving our go to market strategy, which has allowed us to lower our sales and marketing spending as we exit 2025, and head into 2026.

We expect to deliver positive adjusted EBITA for Q4 and 2025.

We are actively deploying AI tools at on24 to improve efficiency and streamline our operations.

With a focus on lowering our sales and marketing spending over the next two years and actively deploying AI within our organization to lower costs and streamline operations, we expect to deliver improved profitability in 2026 and beyond.

Including in the go-to-market functions.

Our goal is to return to R&R growth next year with a more profitable operating model.

With that shrunk and I will open the call up for questions.

We are very focused on improving our profitability and expect to lower our sales and marketing expenses as a percentage of revenue by mid-single digits by the end of next year and by double digits in the next two years. This will bring our sales and marketing expenses as a percentage of revenue down to the mid-30s in 12 months and low 30s in two years.

Thank you we will now be conducting a question and answer session.

Please press star one on your telephone keypad, if you would like to ask a question. The confirmation tone will indicate your line is in the queue. You May press star two if you would like to remove your question from the queue for participants using any speaker equipment. It may be necessary to pick up your handset before pressing the star keys.

We expect these cost reductions will flow to the bottom line and increase our profitability in 2026 and beyond.

In summary in Q3 we made significant progress on our strategic roadmap while delivering p&l results above guidance.

Our first question comes from Rob Oliver with Baird.

We expect to deliver better our performance in Q4 driven by improved gross retention performance. Increased AI penetration in our customer base.

You May proceed with your question.

Great. Thanks, operator, good afternoon.

New business performance from regulated Industries and our exciting new partnership with LinkedIn.

First question for me is around Sharon I think you've called out nearly 20% of customers paying for your AI solutions that that's a really impressive number one.

For Q4 in 2025.

Hoping to get a sense from you guys.

What sort of potential uptick.

Youre seeing from that recognizing it's still early but that's a.

With a focus on lowering our sales and marketing spending over the next two years and actively deploying AI within our organization to lower costs and streamline operations, we expect to deliver improved profitability in 2026 and beyond.

Pretty sizable chunk and so just wanted to get a sense of.

Our goal is to return to ARR growth next year, with a more profitable operating model.

How that's impacting contracts, whether that's contributing to that that continues.

With that, I will open the call for questions.

Continuously improving ACB number of enterprise any color there would be helpful and I just had a quick follow up for Steve as well.

Thank you. We will now be conducting a question and answer session.

Yes.

Rob as you said.

One in five customers that was paying for it yes.

And this number as a percentage of revenues from beginning to increase every quarter. We expect it will continue to increase in Q4.

Please press star 1 on your telephone keypad, if you would like to ask a question, a confirmation tone will indicate your line is in the queue. You may press star 2. If you would like to remove your question from the queue, for participants using, any speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

And in future quarters, and this also provides a significant wide space as we move forward and now we have recently announced our EA translated at propel plus all things now air France that allows the customers take a webinar and convert that into 40 different languages and campaigns and AI for bulk plus is a brand new modern intuitive forwards.

Our first question comes from Rob, Oliver with beard.

You may proceed with your question.

And that again easily done every webinar or this event into an omnichannel multi touch campaign or engagements. So these two offerings. In addition to its now will continue to provide increased momentum and to grow penetration with our AI offerings.

Great, thanks operator. Uh, good afternoon. Um, the first question for me is around, uh, Sharon, I think you called out nearly 20% of customers uh, paying for your AI Solutions. That's that's a really impressive number. It was 1 hop hoping to get a sense from you guys of you know uh what sort of potential uptick uh you're seeing from that you know recognizing it's still early but that's a pretty sizable chunk. And so just wanted to get a sense of you know how that's impacting.

You asked a question about <unk>.

Already our AI solutions are if you look at our expansion agenda. After our content marketing solutions. They are number two in terms of where they fall in in my open expectation is sometime next year. They will cross to become the largest driver of all fall off expansion 424, we expect our ASP.

Contracts. Whether that's contributing to that. Um, that in continuously improving ACV, number and enterprise culture. There would be helpful, and I just had a quick follow-up for Steve as well.

Yeah. Uh Rob as you as you said, we now have 1 in 5 customers that who's paying for our AI Solutions.

On that number to increase would be the additional products. We also expect the penetration of number of customers to increase now. The other thing is this is also helping us both from a retention point of view. It is helping us from an expansion point of view and also close to 40% to 50% up on new deals all including AI offerings.

So that is an important thing as we move forward now as we talk about <unk> plus I talked about the airplanes lately.

As we move forward, we continue to focus on our agenda, yeah, Yeah search this comparable that the agenda also.

And so all of those that we are doing Rob is building on our strengths and first party data we have over 1 billion engage in minutes annually on our platform and we have hundreds of thousands of webinar experiences on our platform and in the age of both content and first party data will win and the last thing I want to also mentioned, which is ultra mentioned on the call.

And this number, as a percentage of Revenue is continuing to increase every quarter. We expect it to continue to increase in Q4 uh and and in future quarters, and this also provides a significant wide space as we move forward. And now, we have recently announced our AI translate and AI Propel plus offerings. Now, ai Transit allows the customers to take a webinar and convert that into 30 different languages and campaigns. And AI Propel plus is a brand new, modern intuitive AI forward solution that can easily turn every webinar or additional event into an omni Channel, multi touch campaign or engagement. So these 2 offerings in addition to aih now will continue to provide increased momentum and and to grow penetration with our AI offerings.

But we're not only doing this for our customers, but we are also leveraging agents and others and normally in the business and that's what gives us confidence about some of the stuff that we talked about on sales and marketing.

Uh, you asked the question about how, you know, already our AI Solutions are. If you look at our expansion agenda after our content marketing solutions, they are number two in terms of, uh, where they fall in, and my hope and expectation is sometime next year they will cross to become the largest driver of, uh, of, uh, expansion for ON24. We expect our ASP on that number to...

Hope that helps.

Yes that does help and that would actually was going to be part of my second question for Steve was around you know clearly it sounds Steve like you guys are.

Some of that really nice improvement.

On the sales and marketing and <unk>.

Efficiency is coming from AI I wondered if you could give us a little a little bit of more color around.

How much is that tech innovation, how much of it is that low hanging fruit internally how much of it is potentially head count and then you guys have made some nice progress.

Not just stabilizing the business, but also <unk>.

Growing at the higher <unk> accounts at the enterprise level. So I guess two part question one.

So more color around the components of that.

Go to market efficiency and secondly, how do you do that in a way where you can make sure you don't disrupt kind of the improvement that you guys have been showing.

The upper end of that other client range, thanks very much.

Increase with the additional additional products. We also expect the penetration a number of customers to increase. Now, the other thing is this is also helping us both from a retention point of view. It is helping us from an expansion point of view and also close to 40 to 50% of our new deals are are, including AI offering still. So that is an important thing as we move forward. Now, as as we move, yeah, I've talked about AI Propel plus. I talked about AI translate, as we move forward, we continue to focus on our agentic, Ai and AI search discoverability agenda. Also, uh, and so all this that we are doing Rob is building on our strengths and first-party data. We have over a billion engagement minutes, annually on our platform and we have hundreds of thousands of webinar experiences on our platform and in the age of AI, both content and first-party data will win. And the last thing I want to also mention, which are we also mentioned on the call that we are not only doing this for our customers, but we are also leveraging agent.

Sure. Let me go ahead and answer both of those questions for you. So first off we have to streamline our go to market organization over the past few years.

And others internally in the business. And that's what gives us confidence about some of the stuff that we talked about on sales and marketing. Hope that helps

Against our sales and marketing quarterly spending from about $25 million in mid 2022.

Our quarter to less than $50 million a quarter in Q3, so that's a reduction of about $10 million per quarter or $40 million annually over that period now in terms of how we'll lower the expense going forward. When we have been deploying AI within the organization to increase efficiency and we'll continue to do that that includes using our own products.

Yeah, that does help and that actually was going to be part of my second question for Steve was around, you know, clearly it sounds Steve like you guys are you know some of that really nice Improvement um on the sales and marketing and uh efficiency is is coming from AI, you know, I wondered if you could give us a little a little bit of a more color around, you know.

To be more efficient.

We're also looking at reallocating resources within our go to market organization to focus on the areas with the highest growth potential.

Which are currently in the regulated industries, particularly in financial services professional services life.

Life Sciences, while currently under some macro impacts of that pressure.

It is also an area, where we have historically been strong and we will continue to invest there.

Lastly, we will continue to look at ways to be more efficient and do more with less which has allowed us to.

How do you do that in a way where you make sure you don't disrupt kind of the improvement that you guys have been showing at the upper end of the other client range? Thanks very much.

Our sales and marketing spending over the past.

A number of years and we'll continue to do that we can do all this while maintaining the right number of go to market resources and that will allow us to return to our growth in 2026.

Sure. Let me go ahead and, uh, answer both of those questions for you. So first off, we have streamlined our go-to-market organization over the past few years, and we...

Great. Thanks very much.

Okay.

Our next question comes from Michael Rackers with Needham You May proceed with your question.

Hi, This is actually Scott Berg.

Okay.

I guess lots of questions here Schrott wanted to start with the deal slippage you mentioned from Q3 to Q4, it sounds like you've closed a number of those transactions already in the quarter, which is obviously good but wanted to see what was there any commonalities with some of these deals that slipped into <unk>.

Reduced our sales and marketing quarterly spending from about 25 million dollars in mid 2022 to, uh, a quarter to less than 50 million dollars, a quarter in that Q3. So that's a reduction of about 10 million per quarter or dollars annually over that period. Now, in terms of how we'll lower the expense going forward, we have been deploying AI within our organization to increase efficiency and we'll continue to, uh, to do that. That includes using our own products to be, you know, more efficient. We're also looking at reallocating resources within our go to market organization to focus on the areas with the highest growth potential.

Out of Q3 and into Q4 was it more I guess random in nature.

I think Scott when we saw although the challenge in Q3.

If you look at the pipeline and this is especially in the new business side.

We saw them.

Little less.

Oh Regency and closing a deal from proposal plus.

Closed sooner I think.

And lastly, we'll we'll continue to look at ways to be more efficient and do more with less, which is allowed us to, um, you know, lower our sales and marketing spending over the past number of years. And we'll continue to do that. We can do all this while maintaining the right number of go to market resources and um that'll allow us to return our growth and in 2026.

Q3 tends to be seasonally a summer quarter seasonally softer we saw or deals moved from discovery to proposal lesser proposal plus the closure we saw them.

Great. Thanks very much.

Our next question comes from Michael Rackers with NEM. You may proceed with your question.

You saw six $700000 worth of deals that debt.

Lift into Q4, and like I said about 60% to 65% of those deals have already closed in and Q4, but that gives us gives us a.

Hi. This is actually Scott Berg. Um,

Both <unk> and so that's what we saw.

And then as you go into new business site, our installed base business was fine we did expect it to be a seasonally softer quarter. So so that's what happened we also did see.

I I guess lots of questions here. Sure, I wanted to start with, uh, the deal slipping you mentioned from Q3 to Q4. Sounds like you closed. The number of those transactions already in the quarter, which is obviously good. But wanted to see, was there any commonalities with some of these deals that slipped into, you know, in out of Q3 and into Q4 or was it more? I guess random in nature.

Some.

Some pressure in the pharma business now that has been a great business for us.

Toward but in the last six to nine months, we've seen some short term pressure and.

In the pharma business that being said as we as we talked about it our average score ALR per customer reached its highest level ever at over 80000 per customer yet.

I I think Scott where we saw a little challenge in Q3, uh, if if you look at the pipeline espec, this is especially in the new business side. Uh, we didn't, we saw

A little less.

Uh,

Multiyear agreements hit an all time high.

Yes, and the percentage of customers using two or more products also had been all done. So now as I look at let me just also give you a color on the Q4 <unk>.

And as Steve talked about in Q4, when it's hard to provide guidance on ALR in itself in Q4 is even harder because it's such a back end loaded quarter. So we've given a wider range of one five to minus 1%, but we believe we are within striking distance of getting to positive in <unk>.

We expect this to be one of the best gross retention quarters in Q4 in the last four to five years. We expect continued momentum from our AI of all things both from new and expansion business and we also expect that the Linden partnership will also start helping us drive improved new business and customer retention and we will continue to see momentum and win backs.

And continuing traction in regulatory industry. So yes, we have some work to do but we've made some significant progress and enhancements in our business.

urgency in closing, a deal from proposal plus to closure. I think, uh, you know, it's Q3 tends to be seasonally summer quarter, seasonally software, we saw deals move from Discovery to proposal plus, the proposal, plus, to closure, we saw them. Uh, uh, you know, we saw 6 700 000 worth of deals that that, uh, slipped into Q4. And, like I said, about 60, 65% of those deals have already closed in, in in, in Q4 that, that, that gives us gives us, uh, a good sense. And so that's what we saw predominantly on the new business side, we are install based business was fine. We did expect it to be a seasonally software quarter. So so, uh, so that's what happened. We also did see, uh, some, uh, some pressure in the Pharma business. Now that has been a great business for us, uh, throughout. But in the last 6, to 9 months, we've seen some short-term pressure in in in the Pharma business.

Very helpful. There. Thank you and then on the Lincoln partnership I just wanted to connect on that I guess when you look at that as is is that I mean, we kind of described it sounds like a channel something for your customers to be able to tap into from a distribution perspective, but is there any miner.

Business that being said, as we as we talked about it our average score error per customer reaches its highest level ever at over 80,000 per customer the percent of our and multi-year, agreements hit an all-time high. Uh, yeah. And uh the percentage of customers using 2 or more products also hit hit an all-time high. So now as I look at, let me just also give you a color on Q4 are

Physician opportunity with that or is it really just more about enhancing the platform to improve customer retention and stickiness and make it even more attractive. Thank you.

Yeah, I think that stages to that so let me just explain because it's bigger than you may be thinking right now because we launched the various phases, but this will literally drive the next generation of <unk> marketing and we are the only webinar flat.

Platform, maybe digital engagement platform that <unk> has done this collaboration with and I believe this is going to be a game changer for our customers and visible.

This partnership will ultimately transform diesel events.

So what that allows you to do is if you if you're publishing an event and on 24, you can literally seamlessly drive audiences from link then the comment about events you can publish events directly on Linden in just a few clicks and then quickly for more than captured registrants to drive seamless legislation and this is just the first.

And and Steve talked about it Q4, you know, it's hard to kind of provide guidance on ARR in itself and Q4 is even harder because it's such a back-end loaded core. So we've given a wide range of 0.5 to minus 1%, but we believe we are within Striking Distance of getting the positive. Are we expect this to be 1 of the best gross retention quarters in Q4 in the last 4 to 5 years? Uh we expect continued momentum from our AI offerings, both from new and expansion business. And we also expect that the Linden partnership will also start helping us drive. Improved new business and customer retention, and we will continue to see momentum and win backs and continued interaction and regular industry. So, uh, yes, we have some work to do but we've made some significant progress and enhancements in our business.

Sure. Very, uh,

Careful there. Thank you. And then on the uh, link.

Partnership.

Phase of our integration as we move forward, what you will see.

And first phase, yes, it is going to be more about retention, it's going to be bought about new customers, but just imagine now that customers can get to Linkedin ads automatic before that even that they are doing they can drive 10, 20, 5100 registrants right from the Linkedin channels seamlessly, but in subsequent sales of what we'll be able to do here Scott we'll be able to.

Like a, a channel, something for your customers, to be able to tap into from a distribution perspective. But is there any monetization opportunity with that or is it really just more about enhancing the platform, you know, to improve, uh, customer kind of retention stickiness and and make it even more attractive. Thank you.

yeah, I I

I think that stages to that. So let me just explain this and it's, it's

Leverage our first party engagement data.

And with that we'll be able to allow that they were not all lookalike audiences on linear and so we provide them. Some data is it. These are the people that we want then provide lookalike audience data and that that wouldn't be able to provide those very specific audiences into the events of our customers now that wouldn't be monetize monetize SKU on that that would be.

then then you may be thinking like right right now as we launch the various phases, but, you know, this will literally Drive the next generation of even marketing and we are the only webinar,

Platform maybe this engagement platform that LinkedIn has done uh this collaboration with. And I believe this is going to be a game changer for our customers and this will I this partnership will ultimately transform digital events.

Our topline and we are very excited about the potential of this partnership and its impact to our growth in 2026 and beyond.

Very helpful. Thanks for taking my questions.

Our next question comes from D. J Hynes with Canaccord Genuity you May proceed with your question.

Hey, guys. This is Luke on for DJ Thanks for taking the question.

So maybe to start could you just tell us a little bit more about this AI search.

Governor ability you've done that you've laid out.

Vision, there what those products once they all look like.

Uh, so what this allows you to do is if you, if you are publishing an event in on 24, you can literally seamlessly Drive audiences from LinkedIn to come into that event. You can publish events directly on LinkedIn in just a few clicks and then quickly promote and capture registrants to drive seamless registration. And this is just the first phase of our integration as we move forward, what you will see. Uh, so in first phase, yes, it is going to be more about uh retention. It's going to be more of a new customers but just imagine now that customers can get through Linkedin ads automatically for the event that they are doing. They can drive 10, 20, 50, 100 registrants, right? From the LinkedIn Channel seamlessly. But in,

And what you think you can achieve there.

Yes. So some of this is an early look and I don't want to disclose everything but.

Consequences? What we'll be able to do here, start, we'll be able to leverage our first-party engagement data.

Let me share.

Some of this information just at a high level.

Customers do event.

Our registration page into their lobby pages. They did a webinar now they get their content they get the blood staple is all of that.

<unk> scripts, they get all the video key moments in those and all that kind of information.

Now.

And with LinkedIn, we'll be able to allow that they will allow lookalike audiences from LinkedIn. So we provide them some data—say, these are the people that we want—they provide lookalike audience data, and that will be able to provide those very specific audiences into the events of our customers. Now, that will be monetized. We'll have a monetizable view on that that will impact our top line. We are very excited about the potential of this partnership and its impact on our growth in 2026 and beyond.

As you know what the Llm's do they basically smaller places like the salt and the index.

Very helpful. Thanks for taking my questions.

Different places and they develop.

Nation now what we are going to be able to do if youre doing like 100 to one or 10 at 400 Webinars.

Our next question comes from DJ Hines with Canaccord Genuity. You may proceed with your question.

Why do you think like of course things like transfers, but all other things as you as you structure your content on the on 24 pack platform, we make it.

And once it is done we'll make it available to you with an on demand and others. So all of that content can be indexed by the elements. Okay. So its discoverable by the <unk> index by the Elena just wonder you are no longer talking about a live event that is done on an even basis you are talking about really continuous engagement all the other content.

Hey guys, this is Luke on for DJ, thanks for taking the question. Uh so so maybe to start. Could you just tell us a little bit more about this AI search, uh, discoverability agenda, you laid out.

you know, the vision there, what those products will entail and look like and what you think you can achieve their

Yeah, so, uh, some of this is early look, and I don't want to disclose everything, but

They're able to take all your video content publisher to Youtube and other stuff. So there'll be an ability to take all of that content index that that entity LLM. So that they become part of the search okay.

Hopefully hopefully that makes sense and so there is a lot more work that we're doing and embed regards again with all the content 130000 <unk>.

Let me share some of this information. Just as a high level, you know, when our customers do events, they are, uh, registration pages, their lobby pages, they do the webinar. Now they get their derivative content, they get the blogs, takeaways, all their transcripts. They get all the video key moments and all that kind of information right now.

Experiences that we have on the platform and all and then all the other derivative.

With especially with translations, we have imagine you have the 130000 experiences on the platform and each experienced converts into 15.

More.

Derivative content different languages, and other stuff I imagine you've got over.

Yeah.

2 million pieces of content across the platform and now how do you make it so that it is indexed by the LLM, how do you make it very easy so it's searchable by the element that's an area that we are very focused on.

Excellent very helpful and maybe just a quick follow up as we think about the Clinton partnership.

Craig described it as a multi phased approach.

How should we be thinking about the timeline and the various phases and when that will be complete.

I think you shouldn't be thinking in terms of the first phase is is this year.

As as you know, what the llms do? They they basically scour places like the search and and and they and they, you know, different places and and they develop a a foundation. Now, what we are going to be able to do if you are doing like, 100 200, 300 400 webinars, uh, we'll provide you things. Like, of course, things like transcripts, but all other things, as you as you structure, your content on the on 24 P platform, we make it, you know. And once it is done, we'll make it available to you. Whether it's an on demand, and others. So, all that content can be indexed by the LMS, okay? So it's discoverable by the LMS index by the LMS. Remember you are no longer talking about a live event that is done on an event basis. You're talking about really continuous engagement, all the other content, you'll be able to take all your video content publish it to YouTube and other stuff. So there will be an ability to take all that content index that, that into the llm, so that they become part of the search.

<unk> will launch approximately by the end of the year, which is going to be much more tightening of the partnership and by Q1, you'll start to see elements, which will be monetized in the platform you should assume by February we'll be able to launch things like the lookalike audiences that wouldn't be monetize able by.

Okay, uh hopefully hopefully that makes sense and so there is a lot more work that we are doing in in that regards again with all the content 130,000 uh experiences that we have on on on on the platform and all and then all the other derivative content. Imagine with especially with translations, we have imagine we have that 130,000 experiences on the platform and each experience converts into 15 more.

<unk> <unk> 24.

For our customers. So that's where we believe that is going to that is going to move forward and by the end of Q1 I expect the integration to be extremely tight now between 24 and link them to really provide meaningful.

Derivative contents or of different languages and other stuff. Imagine you've got over uh

You know.

Capability to our customers and start to provide an inflection on a bump lines.

2 million pieces of content across the platform and now how do you make it? So that it is indexable by the llms? How do you make it very easy so that it's searchable by the llms, that's an area that we are very focused on.

Excellent. Thank you.

Okay.

Our next question comes from Linda Li with William Blair. You May proceed with your question.

Up as as we think about this LinkedIn partnership, you know, you've described described it as a multi-phase approach, just how, how should we be thinking about the timeline in the various phases and when that will be complete?

Awesome. Thank you for taking my questions. Yes, just a quick one to start off since changing and updating the go to market motion into Martha enterprise focus.

When you go to market motion before like how has it performed compared to your expectations. So far.

Yeah. So when we talk about the go to market motion.

There are multiple parts to do that again, it's more enterprise focused. It's also we were deliberate made the thing about being focused on more on regulated industries like financial services Life Sciences, and professional services I'll just provide you.

Some information I mean.

Yes.

Our regulated industries business is about 50% of our business now okay. Four to five years back that was about 30 33, 34% of our business now I know.

I I I think you should be thinking in terms of the first phase is is this year, uh, Phase 2 will launch approximately by the end of the year, uh, which is going to be much more typing of, of the partnership. And by q1, you will start to see Elements, which will be monetizable in the platform you should assume by February, we'll be able to launch things like the lookalike audiences. That will be monetizable by by on24, uh, for, for our customers. So, that's where we believe that is going to, that is going to move forward. And by the end of q1, I expect the integration to be extremely tight between, uh, on 244 and Linkedin to really provide meaningful, uh, capability to our customers and start to provide an inflection on our Top Line.

We are having some short term headwinds in the life Sciences business, but if you look at our financial services.

Excellent, thank you.

Which is about 20% and if you add our professional services business, which also has a national and state.

Our next question comes from Linda Lee with William Blair. You may proceed with your question.

Regulation, so it's part of the regulated industries.

Those two are those two businesses, you've got 35% are growing mid single digits year over year. They are also very high gross retention businesses closed close to 90%. So well so essentially I think that execution and really tightening up our focus on financial services and life Sciences and health also tightening up of <unk>.

Awesome. Thank you for taking my question here. Um this quick 1 to start off since changing updating the go to market motion into more of an Enterprise Focus as the new go to market motion performed. Like how has it been performed compared to your expectations so far?

Yeah, so Elena when we talk about the go to market motion,

On the go to market as we are focused on our strategic accounts in the next year accounts, both from a customer success from from.

Our marketing and sales point of view has helped us.

US significantly and we expect to continue to basically do that.

Uh, there are multiple parts to uh to that. Again, it's more Enterprise Focus. It's also we we delivered made a thing about being focused on more on regularly Industries like Financial Services life sciences and Professional Services. I'll I'll just provide you uh some some information. I mean uh

As we move forward you will see us continue to emphasize our AI based offerings you will see us continue to focus a lot more on the regulated industries.

And and.

And this will also being seen in cases of the win backs. We are seeing whether it's in the regulated industries or otherwise I'll give you. An example of a customer win back.

A leading provider of retirement and investment management solutions left us to go to go to one of the collaboration tools and they came back to us because when the rent that they could do a lot of recurring sessions and they cannot do those four legacy provider. The team faced challenges with manual workflows unlimited personalization with all 24, they can now auto.

Our regular Industries business is about 50% of our business now, okay. 4 or 5 years back, that was about 30 333 34% of our business. Now, I know, uh, we are having some short-term headwinds in the Life Sciences business, but if you look at our financial services business which is about 20% and if you add our Professional Services business which also has uh National and State uh regulations so it's part of the regular Industries.

Post event engagement integrate insights into the CRM and deliver personalized participant experiences at scale. So as we move forward and I think you've talked about the sales and marketing efficiency, you won't see us double down even more.

In that category.

And another question here Western New CMO, joining early in the year here.

How has <unk>.

How is the transition and then in terms of the on boarding of business, yet CMO James Lee and also what are the strategies here in terms of that.

You guys are focusing more on.

The AI products and features and capabilities to your customers in your conversations with sales team is if you could give more color on that.

Those 2, those 2 businesses, which are 35% are growing mixed single digits here over here, they're also very high gross Redemption, uh, businesses close, close to 90%. So uh, so essentially, I think that execution and really tightening up our focus on financial services and Life Sciences as health. Also, tightening up our focus on the go to market as we are focused on a strategic accounts. And the next year accounts, both from a customer success from from a, uh, from a marketing and sales point of view, has has helped us, uh, us us us significantly. And we expect to continue to basically do that, you know, as we move forward you will see us continue to emphasize our AI based offerings, you will see us continue to focus a lot more on the regulated Industries. Uh and and you you know and this is also being seen in cases of the wind backs. We are seeing whether it's in the regulated Industries or or otherwise I'll give you an example of a customer who went back.

Yeah, I think David has joined.

It's been sometime since he joined now.

In our business that is kind of a lifetime.

Barry will ramp up and when we look at our team's go to market teams Linda.

David has.

Ahead of demand generation now we also got to change that position and there is a really good VP demand generation that he brought on he also broaden our VP corporate marketing, that's really driving a lot of our agenda on Linkedin and other stuff and you've got other people like VP of product marketing now.

A leading provider of retirement and Investment Management Solutions left us to go to a go to 1 of the collaboration tools and they came back to us because when they went there they could they do a lot of recurring sessions and they could not do those through a legacy provider. The team faced challenges with manual workflows and limited personalization with all 24. They can now automate post event engagement integrate, insights into their CRM and deliver personalized participant experiences at scale. So as we move forward, and I think we've talked about the sales and marketing efficiency, you will see us

It doubled down, even more in in, in that category.

Corporate marketing and demand generation leaders are very closely tied with the sales teams and the customer success team. So that's become a very important part of our agenda. So the focus on linked in the focus on they're doing campaigns for financial services and regulated industries. So they're doing four campaigns on the expansion team.

people, and another question here, um, with the

Um, how has how has the transition been in terms of the onboarding of the new CMO, David Lee, and also how what are the strategies here in terms of have? You guys are focusing more on on?

And for AI based offerings. So again I think the go to market team is working very very closely.

David and his team are quite ramped up.

Um, the AI products and features and capabilities to your customers. Um, in your conversations with sales teams, if you could give more color on that,

That gives us confidence that we can as we move forward to be more efficient in the sales and marketing spend and also continue to deliver our growth numbers.

Awesome Thats helpful. Thank you.

Ladies and gentlemen, this concludes our question and answer session and does conclude today's teleconference. As well. Thank you for your participation. Please disconnect your lines and have a wonderful day.

Yeah, you know, I think David has joined, uh, it's been sometime since he joined now, uh, in in, in our business, that's kind of a lifetime. So he's, he's, he's very well ramped up. And when we look at our teams, go to market teams, and that it's, it's David has, uh,

And there there's a really good VP demand generation that he brought on. He also brought a VP corporate marketing that's really driving. A lot of our agenda on LinkedIn and other stuff and we, you know, he's got other people like VP product marketing. Now, we corporate marketing and demand generation leaders are very closely tied with the sales teams and the customer success team. So that's been become a very important part of our agenda, so the focus on LinkedIn. The focus on they're doing campaigns for financial services and regulated Industries. So, uh, they're doing 4 campaigns on the expansion team, uh, and for AI based offering. So again I think the go-to market team is is working very, very closely. Uh David and his team are quite ramped up and that gives us confidence that we can as we move forward, be more efficient in the sales and marketing spend and also continue to deliver our growth numbers.

Awesome. That's helpful. Thank you.

Ladies and gentlemen, this concludes our question-and-answer session and today's teleconference as well. Thank you for your participation. Please disconnect your lines and have a wonderful day.