ONTF - Earnings call 4 2020

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Operator

Good afternoon and welcome. Please note that the live webcast of today's call may be accessed via the Investor Relations of the company's website at investors.on24.com. [Operator Instructions] Please note that this call is being recorded. At this time, I'd like to turn the conference over to Maili Bergman with the Blueshirt Group. Please go ahead.

Maili Bergman

you. Thank afternoon, good everyone. and Hello to Quarter Earnings Call. Fourth Welcome XXXX Conference ONXX's

today call Sharan, and Financial the with are of Chief Vattuone. Steve On me Officer, ONXX; CEO Sharat and the Founder

remind and of performance, capabilities our other our markets and sales such solutions, would include words are to, fluctuation timing are the economic otherwise that such as contain project, may forward-looking differences statements statements. predictions sales future limited not any ONXX could These forward-looking and trends, trends, These no to may including, our customers, believes, events, predictions referred risks trends. with the impact company's our customers to everyone I expectations, expressly financial future or statements statements, COVID-XX attract any, and obligation ability anticipates, in competition pandemic, growth, the to and expand that and information identified update to as will, benefits, existing of operating or our expand new estimates this such in forward-looking to outlook, These about Factors provided statements include, today, limitation, expected global any the as contribute assumes cause and only demand forward-looking and to such reflect our of such some ability if risks intends without expected beliefs, substantial manage are risks. to the in guidance. to statements filings. decline forward-looking call and in associated for during marketing ONXX's and but subject SEC of business like results,

should forward-looking periodic description which and uncertainties, review the in filings, today's could detailed including release. impact statements, these a press identified risks risks ONXX's financial of SEC For you

in press and that accordance and use of financial to forecasting will release. With will to a addition like to today's planning out financial not ongoing over Sharat? for To to reconciliation non-GAAP also non-GAAP operations We as measures, call financial these point and financial GAAP. non-GAAP presented measures to results. with financial report evaluate are GAAP our measures the internal both please call, today's Sharat. in and purposes. refer we that, Non-GAAP measures on I see calculated turn now the substitute for these We

Sharat Sharan

our our a successful to many Results Thank In first ONXX. the are fourth Financial Conference very you, for all welcome, future. We know partners usual This for of customers, in and of million we XXX% as have strong QX, Thank vision Quarter IPO also quarter, this we growth and Maili, thank to and future. publicly ARR. share then year-over-year, I'll fourth which first than of our ARR for XXXX differentiators and listeners time tremendous fiscal XXXX a with capped the ONXX, to just quick a delivered had year year $XXX.X ending financial summary spend results QX getting little who key more a first has employees, Since platform, on company. and XXXX and us. I our growth and our excited and we traded Fourth February. for of Full great investors quarter part everyone, the XXXX Call, for and is of our year for in our a joining want together, a been being tremendous you call journey, ONXX's are

fourth operating which drove XXX% our quarter. in million. business million non-GAAP cash Experience Digital to quarter $XX.X grew time, $XX million we total demonstrated of year-over-year significant Platform fourth and revenue flow free of leverage, the for income $XX same Our At a the in

business, XXXX, $XXX.X for our growth million in Experience year Digital For we our revenue Platform revenue. the with closing full achieved of of fiscal year XX%,

and back like I'd take a step Now to our share story.

tell me how let ago, For you people had got epiphany. know here. we I years X don't an us, who

Facebook, engaging is on Social These digital and were transforming platforms so BXC deliver platforms much Instagram which marketing. time like why experiences, them. YouTube consumers media experience highly and enjoy spending

experiences, of largest X largest sales customers, manufacturing so understand into deliver in to I'm companies webinar companies interested. engagement, sure that ONXX These largest customers. technology highly always-on in digital industrial emergence makes all person and precisely companies, conferences that X Personalizes highly experience these global buying the for BXB media engage actionable the through that in customers' like include world first they're about the today, platform content result, effective between takes much engaging platform that care deeply platform ads most nothing experiences enables to you including seeing X I prospects to The we their forward this advertising. And and to a integrating allow of largest decided you of businesses of recognized of through and to and able prospects your know this data a scale. to intent, interactive personalized banks, engagement, by companies. Fast of data. ecosystem. Today, digital ONXX us global at of to experience first-person when multimedia audience into that digital that convert all seeing the there X and U.S. in use world's that that thousands companies virtual with relate our experiences products health largest the X and can which data scrolling platform feed we digital could the favorite marketing and a global are ways most some delivers companies, social experiences X As our was experience companies. the AI-driven of BXB And and to realize that's consumer build the of and in AI-driven millions converts businesses deep platform X our which go the as within data count world. creates for personalization X

] to opportunity digital is we estimate that for norm. the of We've And worldwide They and several months. gone the XX and currently There sales TAM to able enabling channels. are will digital buyers marketing transformation usual. upending there interactions been Due the between that engagement also other by been to has the of to sales get digital to richness part be in appear predicts for large BXB of expect see as global no billion and digital the reach, now in that our $XX very shifts a years market to and as have us. digital transformation have in grow come And to XX% going pandemic, them strategies. Gartner the engagement data XX and over through XXXX, clear increasingly the platform. have to suppliers almost and us companies customers We tectonic to through back this our business traditional is annually years. [ now it's

lines. junk. their speak customers endless a and work BXB and This the and are bait just racing In scale same to happening shop much endless buyers, BXB prospective in strategies like return engage stop like are. The salesperson. our automated that the spam, all BXC are with sales you This GDPR. click past buyer other is a before simply When their it stepping meet for they with ad to has creating you and automation options at a choose used a and so you to is with transformation to their technologies BXB offer poor archaic investment. spam, self-educated in them your spamming and world, do on to even don't these go-to-market car, synonymous and countries Marketing and e-mails where and well become that colors research addition, is the ever model adapt into and companies regulations companies marketing personalization lack so

era we time BXB in of by automation that for era is The of ONXX, marketing over. it's At believe engagement engagement. here. is and era sales is new led a The

us X to engagement problems, solve come customers Our and to data.

look across kinds you sales tactics, are If of some engaging. and marketing different

over for per a that a that the single do prospects. but the attendee. We scales prospects of more cloud-based customers it is E-mail our endless our XXX% ability experiences platform world points one minutes XX powered network multiplier can single retention you our minutes average, just averages comes ONXX provide because driving delivers even creates are we've data XX comes to is effect click, for you A effect a customers our data. Physical A because not creates That experiences. and every year-over-year. our doing live you spans, that engagement in. that than live increase engagement experience create solution sales. In XXX marketing data. download, monthly, short engages XXX,XXX divine. And and delivering minutes professionals almost of of average expensive XX and We where In audiences X more when engagement. That's system single platform a that delivering on for attendees, engage ONXX of no that's are but can each to something of experiences, today's if alone and people year. XXXX, events deliver view, more match engagement entire experiences provide more Some of Most year the experience. there's That X.X hundreds believe do a both. of about you marketing over creates ONXX per data network designed a believe totaling billion don't to of thousands stands the multiplier a or you they're our a and experiences on also spam. than platform across customers. capture. engaging, Over engage, That digital million purpose-built for more engagement data

talk Connect. the and platform Now ONXX ONXX specifically ONXX let's There Intelligence more X experiences, are about our components: products. and

flagship are and backed immersive, experience ONXX content X hyper-relevant, experience Target, webinar by curated live Engagement personalized, digital ONXX is Virtual experience. Every products: Conference, our rich ONXX events always-on media scalable product; a layer, Elite, our experiences. multimedia experience product; of are They ONXX First, On interactive content suite ONXX Hub, Intelligence. analytics product product; ONXX a a ONXX the

these we first-person of develop they personalize individual insights friction relevant next buyers from polls customer And that XXX-degree with This all the questions accelerating engine, to customers revenue. into data, prospect's AI and ask they analytics sauce. run is the and insights. every the through forward, clues one platform. relevant which view business to turn they automatically experience. ONXX answer fuel reducing As of propels generate download, to to interest history from This recommend the the secret experience taking engage content activity, the and content our the We a they conversion engagement the rich next, recapture those them lifetime experiences,

we ecosystem the customers. through Finally, available in data sales our make ONXX of and marketing Connect, the

marketing built CRM, the and have business real-time leading automation intelligence near We with tools. deep all integrations

our the through of aside, with an alliance that do It As webcast some note are listening and a and small platform our of right our using to you relations our true them to revenues, not platform. fraction are important demonstrate investor our these of QX of now, many power type Systems. calls earnings of is

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is and Xx One events. pipeline compared companies infrastructure of the largest to in-person cloud networking more generating

large Another the is X/X incomparable global average just And number from its XX%, a of to deal services size at software engaged increased firm cost. professional prospects Xx by XXX has of in-person Fortune by their increasing company events. results

growth Let information me share vectors. some our about

customer drive to expansion. capacity new customer sales adding and acquisition we're First,

Second, entering to in our offering. new ]. new Japan R&D to we're we investing finally, And and overall develop DOC and markets, products add continue organization our platform are international including to [

a share me let with Now few customer from QX. you wins

company, health that its top pharmaceutical enterprise European scientific our platform to research. Experience their as care a professionals ongoing customers, ONXX share solution webinar One selected engage of through global Digital the worldwide series

we world the North life over the continue by tremendous to Europe our ARR with South from $XXX,XXX Middle to for geographies start, sciences expand contract used is integration across being potential and purpose-built This product lines. the landing is us in there as and in growth to the America the are America We to platform, big organizations and to support differentiator East. A was CRM. across global customer

capitalist digital and venture to Another win is multinational using our multilingual global investment platform in from top for firm customer QX comes webinars. A events Japan. achieve reach and

a languages support us is with geographies to plus ability and factor multinational Our XX/X across and large for multiple winning provide support enterprises. big differentiator XX

to our fourth top a from financial consumer power to the quarter, company, customers, Fortune services the of ONXX webinar line expanded One we of insurance to for and to market go our insurance the business risk. In XXX every globe using entire uses solution commercial across from chose global full and holistic enterprise-grade the make customer us our cases. our sales standard because their that engagement platform our provides needs. use and product to organization portfolio platform for of their multiple leverage scale This and data-driven security, marketing

As landing a upsell. we result, are acquisition customers high with X-figure ARR spend for their customer that are excited generating and us by XXXX wrap customer in has XXX% the pipeline business customer in benefits expansion The with since achieving seeing level. To our both about their are the and customer increased new our momentum undeniable. existing we impressive and up, are a business at sales and originally platform

As enables ideally digital-first a hybrid positioned business with are we of for that customers. a we move world, growth our into forward believe that engagement we data-rich system

our experience, on can about Steve product vision, you that, over our hear results walk I'll and for you. where ONXX it us in hand April our all from virtual I the our explore Finally, our join to With to invite portfolio. more Thank CFO, conference, Vattuone, through more XX you detail. ONXX's platform learn of customers to you QX

Steve Vattuone

and you, Sharat, good afternoon, Thank everyone.

get would delivered cloud-based to generated we I Experience discussing quarter, from like is business. to I into we that and our look the of sell revenues through our our key metrics through at results minute model a financial Digital measure is majority software. our that subscriptions fourth The Platform, which Before for our spend

subscriptions our and in also usage fees platform. Revenue platform as is a term. our this contract our over overage customer's part conjunction fees overage of on We with ratably which related revenue, are of recognized recognized built customers'

to the majority advance. X in years generally are billed are contracts length, X Our in and annually

renewals increases. As annual many auto is typical and our of with SaaS have in businesses, price contracts built

part revenue services, nature. is of professional performed. and which in bulk generate are as these of bundle subscription are also the recurring of are We sold This services implementation our services. primarily consist services The recognized support at often from time revenue and

which or seasonal in I'll elaborate We revenue professional our customers focus new our bit Digital a software revenue, shrinking platform. very focus revenue Our ARR subscription, business services today. And we they capacity revenue more professional reflects businesses. as their our small our associated revenue to excludes Platform of includes strategic annual expand ability a and key with ARR, indicator revenue footprint on revenue, our revenue it's and customers on to a consists portion across as this which so is services. our services and stopped fully existing both users, in future momentum of events on in nature, and other additional associated and our land Platform our potential. we which customers finally, a more believe add and legacy new from products, recurring becomes managed revenue, We Digital Experience within moment. Overall, and selling Experience platform of XXXX, offering growth

multiyear agreements We are signing larger our win who believe us. our also with to growth the ability ARR in customers reflects

of As customers multiyear from with of was December ARR agreements. XX, XX%

Now turning our to results.

fourth are our pleased million, quarter for $XX.X Total fourth Total quarter to strong Digital was a of for XXX% very increase with was XXXX. the was and we to an QX of $XX.X $XX.X revenue revenue compared XXXX of fourth of million, capped year ONXX. increase results, the compared mentioned, growth very which XXX% Platform other increase quarter an XXX% of an for Experience revenue platform fourth million, XXXX. the Sharat As year-over-year. of quarter Subscription

and this QX strong services services utilizing for fourth as revenue representing of platform, more this very was of is number be quarter revenue of we on XX% services XXX% an $XX but services saw are revenue. our of around to the The materialize for the platform. revenue. are platform. million, can our lighter our the for which fourth customers seasonably in we new of usage higher depending X% fourth professional frequently professional As includes with the particularly expect total with increase year-over-year, quarter, typically quarter customer be a our customers using reminder, seasonally generally more usage of will X% overages, have We revenue Professional

ARR of ARR growth the services The the an Moving represents excludes underpinned to annualized contracts and and increase period Total on ARR. ARR December of was XX XXX% X professional value all is at of as million, by of $XXX.X end of subscription overages. the drivers. year-over-year. primary our

First is additional opportunity as expansion our customer usage our within they base capacity. our existing of with increased and users platform

we customers of Second one than increasing our purchasing see number is products. of more

the of at of quarter, XX% XXXX. of compared our or end customers the products of XX% end As purchased fourth X the to more

with a entering we share end, customers, new us, with are is that discussed which growth. To And XX% into agreements fourth growth is representing increase the of who X,XXX customer a fourth, Third the driver quarter approximately multiyear acquisition key customers in year-over-year. ago. of ARR of moment finished I

added upsell greater growth we XXX% give runway we of ARR of a year-over-year, which existing our within ongoing our These our in suite existing to than ability factors addition, confidence In us our enterprise demonstrates larger demonstrates XXX to customers. experiences with have customers significant and traction customer with $XXX,XXX, base. customers representing

Moving on to retention. net

high pandemic. strong We net Our of to to our as XXXX was and rapid close of But expansion compared adoption retention XXX% NRR XXXX as the due an we out QX retention platform pleased QX to XXXX. net saw are expansion. amid rate the with exceptionally of XXX% the

the see as XXXX. these normalization to wrap of we NRR expect course in We quarters over some COVID

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

up very services pace In rapid was approximately throughout reconciliation and results, hiring, QX headcount, financial we much revenue non-GAAP found XX and growth, a margin earnings slower. our of success and experienced our be customer percentage can XXXX, between XX%, with in GAAP QX GAAP year-over-year. and points results along was Our in release. Gross

we gross very result, a and XXXX margin in As specifically demonstrated in high QX.

expect our As margin to gross in in near term. our growth this business to we the the ahead, we reduce scale support quarters

Turning improvement now total to expand This XX% compared and This XX% digital to to expense last for was sales in support we in million year. to $X.X COVID. R&D in sales force $XX.X in last XX% million million was an our QX demand year. as QX XX% operating revenue, of QX We year. experiences of represents to fourth expenses. Sales year. to of compared versus QX and invest in in in marketing last intend increased marketing $X.X same last the million compared $XX.X expense the quarter revenue period total post represents

Given outstanding. Free a shares last competitive that improvement our versus XX-plus XX% R&D our QX to was last year. year. Operating XX% revenue XX%, income million XX last Net than more compares using and compared flow $X.X the income a X.X QX. quarter compared increasing year. million of per year. versus in million plan was negative compared $X.XX diluted $XX.X net margin what percent QX was G&A advantage, last the G&A drive QX to $XX.X to we our negative share share revenue point in in quarter $X.XX flow in year. of in XX% per year XX.X $X.X revenue was on last million QX in shares in a year. R&D to the we margin to cash in diluted efforts million negative million per of quarter spend This period compared of same XX% the using invested points outstanding. Free last to basic improvement $X.X relative XX%, loss million cash share last an expense was current fourth was of compared was $X.X Operating for loss million of to

include cash, investments. occurred which balance with equivalents proceeds not in the $XXX the quarter. our net sheet. year bounce in million the ended and to cash short-term This million $XX.X We the Turning first from does in IPO,

XXX now compared at investments we're full-time business. And end growth In which the employees continued year we headcount XXX turning terms as had reflects XXXX. of to of the the XX% the headcount, guidance. making finally, with This demonstrates we we ended of to the in full-time scale employees,

continue benefiting from for data-rich need Sharat feel extremely management a driving trends we As positioned the discussed, well platform. the digital to

the coming in confident the guidance offer in year are some context time, growth to of off ability would expansion like are business explosive We the before drive numbers. a same on ahead. for to our our sustainable our and getting we quarters At into

customers the footprint a our already at momentum new are when as seeing halt. business of revenue. came turned and with meetings adding at an a exceptional existing We COVID ARR clients began ONXX driving for we pace rapid XXXX, strong accelerant us more and to engage to our across in became While potential businesses customers, to expanding growth physical beginning with

at will normalized begin Looking ahead of exceptional a growth these lapping this rate. of quarters we year, more

While early from of our we we stages engagement normalization see expectation some continue growth. will guidance our to XXXX, the customers see reflects in fantastic that our in

I In percentage our been as discussed addition, earlier, see services in the mid-teens versus XX% in historically of in Services total revenue. professional we revenue QX. as seasonality a meaningful revenue has

revenue in We see in professional services a to quarter. decrease expect first our the sequential

expect Looking of range $X year-over-year the we will given and $X.XX a income range the a With quarter year to shares of expect XXXX, using guidance of of million this the range revenue background, non-GAAP XXXX, to And are $X.XX represents million, are or providing million share of growth the margin very the of $X.X in year X% per first tighter quarter. forward which diluted loss much non-GAAP XX%; results pleased will end outstanding. In going I million to approximately first quarter $XXX.X $X.XX look $X per momentum million the we the $XXX.X represents approximately $X on to building we first non-GAAP and share to in of range XX X%; of fourth to to we call or our non-GAAP summary, margin quarter we the company. million for operating of that XX.X of to and a year-over-year the of with in as diluted in basic in growth $XX XX%; up relative the questions. be share of public EPS call to negative operating using $XX.X to specifically, XX% the Operator? $X for of timing for that, than per forward to to million in the million which X%, outstanding. this X% full XX% million, at With a and range and revenue million Sharat our shares in open loss

Operator

take We'll Sterling Instructions] Auty JPMorgan. with question from our [Operator first

Sterling Auty

how quarter? you characterize your I'm curious, adoption, And would your new drive what post new pandemic? customer customer further adoption as to get the especially are you during strategies

Sharat Sharan

This is Sharat.

XX% enterprise Our our business, is focused got and and we've on focus, business of enterprise teams Sterling, in commercial, Sterling. commercial very and

the we from quarter, give So on and new we saw both from people teams, North America but EMEA. you those logos of new the also commercial, example. and for tremendous within on one momentum only significantly not enhanced number I'll

company is a expand electronics companies enterprise X business, also One the use And and was of their brought billion products in we Elite, focus of bought out for of kind of their $X key on products: consumer Their to Target. the was Hub the in of pipeline but really based accounts. they XXXX our Engagement that Chicago.

XXXX. last to momentum generated on key on side the enterprise strong Sterling, we close and really side for year, these of the become go as us potential expansion the both and into new XXX customers we again, So commercial business and

Operator

from our Goldman take with Sachs. Merwin now next question Chris We'll

Christopher Merwin

you versus these are their pandemic, talking customers. a relates that you to strategy mean does customers? you're And the does bit changes renewing can And I renewals, relationship? as existing to just talk think about state eye like? what beyond, go about as ask as What about it through in they host look plans existing webinars XXXX all any assuming how wanted that you an with their seeing there's towards customers and And from ultimately, to your some about of conferences? normalcy for what

Sharat Sharan

of Thank I'll move different And some also. Steve because to locations, so Steve Chris. and take in I everyone, for -- and are the questions probably you, them just

our So that can don't asked. question first then who why is I'll part I customers the what Steve, it talk second engagement give you normalcy Chris, of how the the of about take the all and with -- part the And question doing? to and like about

are we overall, our momentum. very So with pleased continued

a We our are future, our well. us. spending trends which growth I also is is How customers. hybrid upsell on said, no And us, going engagement. max. want QX, Companies companies physically see continuing is This international with XX as see strong have Expansion pipeline, we're engagement from money There do more future deals, are a to telling Based pretty it seeing spent any markets. With and gone want are back?" do in sizes said permanent they fantastic about -- of coming seeing -- I'm that And that, doing At X/X a customers -- we signing XX% that multiyear end change. are back. deals was are add what go and of I customers to XX% are Steve, through XX the he also And it's out of add? years data to to the color we're higher. companies, software multiyear. to CMOs back. I'll rich you months. conversion and out more to of they've overall, get this they engagement, the one seen of the reach, transformation in that the the one you hard platform, of Once me, example of So XXX cloud he anything the of go deal you Fortune of give generating of said, I "Sharat, the of company. largest an

Steve Vattuone

Yes.

strong in out, point factored expect our we NRR in -- we very Our was the NRR XXX%, our in NRR I'll guidance that's and well, strong as to provided. and that QX, QX be

reduction, really volatility quarters. we the seeing a of We customer lap we see strong But very and this will point, we're year see continuing. engagement some not at this as COVID much

Operator

We'll question move next Baird. on to our Oliver from with Rob

Robert Oliver

customers you said that. had X leads mentioned response studies we -- mentioned of Merwin's that hybrid very XX% Steve. because follow-up Chris quick I to and the from events attendees they about hybrid then there, thought was for your about guys the in then I world -- was Sharat, just mean, that's how color case conversion see question I of you, are and to that talked as I you Sharat, for that talking curious you because you to the quality virtual one Schneider pandemic. you with a helpful before Electric, where love you

on more thinking resonating cases curious, monetization those have into just customers of expansion, I'm how customers and as those use So gotten negotiations about are with current just you hybrid? guys how ROI are

Sharat Sharan

make you mean was thank numbers question. -- I right? the if Rob, just to I Electric, before pandemic, their you mentioned Schneider sure want -- for the

Robert Oliver

That quite of that they were to events really obviously, these where them, they virtual at the hosting live a recall, I rate, and quality they attention events virtual -- us getting I they customer these very, conversions Yes. to saw seemed encouraging leads they very which because on high events had was pre-pandemic. because, that were -- top if on caught our said

Sharat Sharan

the And that. Rob, so for and thank take Yes. question, you me let

digital transformation. operating We strategy for was the -- well, had with business last premise As digital profitable. we working we companies pre-pandemic. -- on QX working and Rob, XX%. of year, their were their and XX% our the In mean, grew our engagement been them margins, foundation in gross I we of you were know, doing very with we've years And

been I platform then X they who able are I'd probably more the using are before parts. mean, break ones doing results, those and have hit, the new -- different to events. see the this So are Those customers pandemic been they have the as physical has into who the and

and get you back. or close you I company, more that and past, they're the that doing once have you more and engagement gave, deals, get example the more know to were there doing ones exposed once XX% more new exposed to. And a because the the they reach and size you're the if the the -- think get been is networking the the reach, now like you cloud data who going no -- more in that Xx ones lot get XXx deal you fact I

the about are by doing a that also, cohort trend be over forward. thing. the of going new sales people more. I I trend done is, the it why major digital to whole really who have channels, remarks. also to who platform digital highlight one we talked of happening are stuff according to my as pre-pandemic. of seen the have people Gartner, in and use do that was is marketing move But to customers, going other value and going we And that's a would and here XX% There's are So it more XXXX,

to going only that's accelerated. get Now

not that it's was this happening before. So not

of you'll think engagement. as moves a acceleration significant the world more hybrid I see towards

Robert Oliver

That's a really helpful. And then, Steve, one you. quick just for

that normalization NRR, talk how throughout You I you about or comment I might the and about, Could missed made guess, of trajectory the in throughout cadence a year? it look like XXXX. the

Steve Vattuone

our modeling. ARR conservative Yes. with prudent and being, our giving I XXXX we mean And not the Yes. we XXX% our our NRR I as call, the little were XXX% think way really say NRR will in and we've I'll we're in of specific is enterprise. developed about guidance. forward-looking pre-pandemic, guidance business, to is our was for than more about enterprise XX% a provided, it

think some as So for about to quarters should the the you great modeling, it give if there's and prudent to and us. there's year COVID be we through guideposts that would get here. And this upside lap that

Operator

move And to next question on we'll Sandler. with from Brent Bracelin then our Piper

Brent Bracelin

there opportunity enterprises What's visibility is getting the of us customers? installed as existing you tied could like then pipeline look if logos, Sharat pipeline, with net it follow-up bulk like of pipeline is additional or strong And I of hub? in there? more upsells could you to touch customer of base. well. if on engagement the to through what you I really it really, real and And the look back healthy pipeline if year, of seems for new is at last then just if and you guess just sort the That's the for one a Could this Is going Sharat, I the XX% any walk Steve. with only having around products? the products, customers logos as upsell at and obviously, X year, post the the really if into the resonating opportunity COVID. new But look kind new

Sharat Sharan

Yes.

Brent, that So was right?

Brent Bracelin

Brent, yes.

Sharat Sharan

So Brent, pipeline. seeing momentum continued are we in our

the can size new and net track, quarter, of of Our as pipeline pipeline we for total on you course, imagine, -- both week. the the every

capacity the in on upsell one very expansion to So there, and leadership And same strong we also sales we increasing for added seeing that are business more sales that. and for added did last momentum we kind on our capability the focused both of the capacity, time, and things our enterprise we year a lot our of is significantly too. business. At capacity, commercial

XX% we As We on -- customers products. all last to year are with you close so having ended of our said fronts. multiple attacking

over XX% our you Elite ARR. of about As is know,

I going -- our the and in gave grow last expansion is there percentage increase newer are Elite but the pretty by the continue followed newer continue almost the provide example newer, took other very They focus products. because they're because you regarding expect you of Elite, doing of to products -- the Engagement XX% Hub they plus and will significantly. faster, it's this a is products to year, to just off Virtual an year decrease we XX% a and Target. lot Elite well. I to as in multiple And very, also talk I increase. around by total to of Conferences when think was of followed a the products. I same mean about perspective, A --

Elite company summits Hub the bought focused bat Chicago another virtual and off Our products gave multiple in products. you example that Conferences. for and X bought month more bought is acquisition right mid-market of based of gate. out consumer and this Engagement team the off bringing really right within company the There a electronics is that more I Virtual

So that are through attacking that we and Is kind also our the channel. of time, same basically are expansion we seeing helpful? it upsell At momentum.

Brent Bracelin

it. Got

like both the side helping profits around sales adds expand, operating It are capacity sounds this on the mean sounds and guess, which million hire. generated for it to you Steve, logos I year. I both encouraging. helpful certainly really is is like new follow-up ability those your $XX you the absolutely So of yes, there. -- sides of business, the

is you're to your just having some guiding a in of good It the hiring success on kind the an the hire. been you right how sales current how slight around And side, you employees. to investments. get are ability and new those aggressively operating but love now environment? hiring update make my sounds to difficult You're onboarding as loss in question like has here it And

Steve Vattuone

Yes. Sure.

see going us numbers, of very in from on to where the shaping QX for with been that, As past and really year. you we're at new how successful headcount we've if successful we're this is it's terms in up onboarding and hiring business quarter the employees, and can growing And another happy that's hiring helpful. and be

Brent Bracelin

Absolutely...

Sharat Sharan

on also add very Steve products thing Brent, what sales other year, on heavily to both saw Steve well. on about capacity and focus we so we thing was to what -- the was Just enablement. as And the quite saying, doing this we're pretty we that early last got hiring momentum

with but So so saying. quite so are what far, a are I far, it's pleased we challenge, know we

Brent Bracelin

that the that's glad here and Well, good into I'm continues momentum Great. QX. to hear,

Operator

Berg on move to from We'll question our with Needham. next now Scott

Scott Berg

shoots. is X obviously, the first pre-scripted Congrats your data. that engagement, saw. on guess, the X again, second good I remarks, the had to you of me. problems out is highlighted and back quarter you Sharat, for One

how the per if of notable as or or were, change? months platform? say, levels usage the pandemic specifically same of the on side, is engagement you measure you on any looking customers couple they their at QX, a I look on levels were do in On their I'm first basis they or their guess or the what customer the of And platform after usage newer engagement at engagement better engagement or notice

Sharat Sharan

sure make understand question. me I Let the

think do question this engagement we I compared the quarter. is to see how the QX,

Scott Berg

Correct.

Sharat Sharan

So platform I is it, and significant seasonally expect. both our momentum QX in would to QX quarter -- but the strong -- as continued you we just think are on seeing QX call QX. engagement strongest our and generally

But weakest For we back the the pretty from very, January. seasonally it many is -- see is, up engagement or QX is the companies, reason people come is is quarter. because platform people very strong. slowest because our and And going and ramped that the and

trade as generally than it's the trade to our tendency other I and want of want going I So also virtual being make here, than -- is -- just business world are physical. events less I to important. pandemic, usual a maintaining the think is ARR. one make conferences show highlight comment to do the think which want the when about that momentum. I physical XX% thinking all of tendency virtual and to a seasonality, there's people about There physical or post shows back

business. small a that's So of portion our

] much do expect have that digital We we a doing platform well larger well. extends continue been very pre-pandemic experience [ to to has this is to going that

Scott Berg

outside Got it. here. perspective, big a of more follow-up you've nuanced big of Obviously, this year. level a a got But mass you pipeline. Sharat, adding talked seen increase -- Helpful. capacity And then sales about nuanced a you demand just from on force, blunt

channels? going to this call opportunity anything it. sales little may mentioned or bit. that from Are else new of there year But you're opportunities not did a last to out new address a You maybe You kind really new there you is that year? need Japan target to

Sharat Sharan

and are think talk on, me I started areas focused let focusing X, last the year. we about X on we that

You talked with about start me let international markets, so that.

Japan momentum year, seeing good some but are year entering Southern early and EMEA we good, this the international of at -- some -- also early really in And also deals. Europe. we is year. Our momentum, entered APAC And and we end are Germany last we this

strong. we sustain proof, will as -- really we'll be of course, that think I but

part velocity. on our focus which which team, really acquisition, is more expand; new Second customer is is of land focusing more the enterprise and commercial, and

is I've new in significantly we're add upsells, there. very we're others. and Expansion and engineering fourth So our we thing in capacity organization, features, adding about. And then product -- on focused modules talked investing much and the product

is accessibility this example, an Elite to give Just product. product, addition quarter, insight. What an launched we adds is flagship which you it and data for advanced this our our enterprise does

we've features, enterprise and basis. captioning live added bundle a insight on on-demand advanced that global for and data like customers things plus our So

pretty So those are seeing attack you're areas X the X going keep to aggressively. that or us

Operator

then William Suri move Bhavan question with from our We'll to next on Blair.

Bhavan Suri

to Let good really my a on update I investment touch want here. add priorities. on me congrats quarter

of the plays that of X other as types next, you've about was we to R&D. scale past in the X feel in like, across sets. partners the you to importance as of the talked you about the terms I out ramped where years how say, I'd in terms look sales and things love So have de and think partners on are business minimis, touched understand contribution, partners. of one the to But product might in of which today, you've you

Sharat Sharan

chat. good Bhavan, to

for of I think and our that's It as leverage most -- in our XX%, major business right you -- of it's area business. you focus said, direct, me. frankly, shows now is a the

are we focused on think I there, Bhavan. categories X

are we CRM. We're Adobe more first marketing, very the and sciences is the deep that category that have. channel. the We built from right the The very Marketos, so the sales Eloquas, focused third-party integrations pipeline life -- now with and we integrations, now driving in adding

on I've driving that. focused So just a got VP that's one.

that's pipeline. of on an area focus but So again, in its infancy

focused one we agency are building is an channel. The other on

many want that are experience, engagement virtual for platform. basically virtual companies then really looking to we this get in platform, and As expand

at we agencies, sales mid-level of So whether focus. and level move Again, stages they increased forward. are significant area early very that's marketing smaller but agencies an or as

Bhavan Suri

I Sharat, No, agree. certainly Yes.

more ] I complex product [ think compatibility virtual into of much amazing. these be the will experiences

the think do But at Steve, and been is I touch I I for it is want on you. of the this know times. to it's way -- I couple partner up brought a look count. if it. to approach customer

year? you Do more you year customers in last last about You Now salespeople. Average were got do towards ] you've that trend of quarter. [ think think quarter, like this going XX adds the last -- XX XXX forward? How XX. added average we'll

productivity. more got You've

think more what's You've customer for in of got But new good on what's us to focus of expectation or adds? number then that. terms through level your a

Sharat Sharan

one want take ]? you [ do to Steve, that

Steve Vattuone

on ahead I per we forward-looking haven't and guidance go mean really se. I'll disclosed Yes. customer that. take count

the our QX. at of that in will report with And very it's line with pleased expectations. We how we're end it's I going, and trending say will

Operator

move next DJ our to Hynes Canaccord. we'll from then And with question on

David Hynes

run Congrats with in being any results. platform, to Scott ask on I our mean to last rates months. Sharat, want change X webinar kind X to which asked webinars engagement customers. how took seen right, by over are the I if many of you've participation about the the

think and wonder spend there's I among fatigue investors virtual any if mean your some setting future might for in customers. that what

be would So any thoughts helpful. there color or

Sharat Sharan

Yes.

I think, DJ, good chat to with you.

happened think panic course, QX last last year, look and were I at year, right? And in QX you mode stuff, if spikes you the what at look very in and who demand. you if stopped people and of physical so DJ, other world just in saw high

level It's to as happens, intensity. possible. happened, just as it's QX sustain that hard Now not QX of

people conversion XXX about people. conversion, about XX%, had I not as to had those number. On -- time, good you our certainly many really at is think that ballpark. as registered somewhere for a sustainable feel that's people platform, XX% rate that based we If on and QX XX a join, if QX, registration, XX% So around in conversion people XX changed

to beginning thing. of the by very year, are the It's people what see that. have kind the clear, we call think I end fatigue a of did Zoom people

people the that compared was conversion but there, activity normalized are So is of on of we little things to some have the what peak The COVID. are that -- it that of course, not in impact a any seeing rates, of doing.

David Hynes

yes. more strategic Yes, question. And maybe Helpful. sense. Makes then a

leading today, that there how the build mean Is platforms thinking all out marketing are of there. any guys to So any automation I evolution aspiration in-house? on functionality guys workflow front? that about out the into integrate you you

Sharat Sharan

kind We commodity, It's say -- I it of a has have that that not wouldn't much, business little. thought that's about become, available DJ. but widely

on focus example, leading the engagement intelligence. the lot more and more also see CRM. life more signals, invest artificial deals. -- we platforms. then really integrating add Strategically, and with life That's more experience us they important the you in layer. I our we in us more going we ONXX and a be buying close more layer, sciences also think more to Intelligence very will probably engagement, How can to more us to you'll more platform, integrate for so, -- and drive see more going the And more -- are we the deeply currently, are the sciences as data for in

focused We're So like and deeply to with and is enablement more on marketing platform. things strategy sales integrate there also CRM, from really more a automation them. our

Outreach others. You have and and like SalesLoft companies

platforms looking We our profiles at we those right into customer are are also. integrating providing our --

So as our to wider our integration data going our is deeper engagement in with platforms really of focus opposed own integration, those there.

David Hynes

hoping perfect sense, would Yes. Makes was I answer. and you

Operator

take KeyBanc Capital now Kurtz question with our Alex final from We'll Markets.

Alexander Kurtz

have to about products Congrats strategy. what outlook. obviously to on of the you talk and such a your the Sharat, data a differentiator It's in do relative you just quarter key take minute some wanted which to of I What piece up functionality on other market. the should competitive see year's this data in ramp you are key investors the in it as the the platform? to plans for and expect that investments

Sharat Sharan

you. to from good Alex, hear

parts. X So

talk making the me Let investments about and area. we are

analytics adding it. AI-driven to data separate, significantly platform. So It's key ONXX there parts all, we scientists the I -- and X engineering focused on integration the are analytics intelligence. the are keep headcount, of on and And more first the the

X X doing there we things are are or that So there.

profiles Engagement do experience we the Virtual there the are about Right more is, Target, across different siloed. platforms: we the just a when platforms. thing to little we are platform, are of One trying be Elite, are we provide First all to profiles may others, that as sure people talk the all, Hub, now, one, of make trying X that and they Conferences.

is making across Sharat part. are there Sharan the That's sure we all profile engagement platforms. So of first the across the one

Secondly, across we our all platform. buying are signals these adding

to are major with -- So book how a area meeting? us. want of a for can we directly you you meeting that's If book the that customer, focus

the learning. layer, AI our machine is Third

your have explosion take platform. interest you the to of the take go Engagement to the based the you I to on part make after want sure Hub live data sure to webinar, -- next to and our to you With making or of becomes you on platform, take webinar, to content in our that, every recommended that ubiquitous that experience

things, no goes data there from another again, across the sure ends, the So those X continue different the that to to buying enhance are the signals making dead the platforms, it engagement on platform. and one to recommendation integrating

Operator

question-and-answer conclude remarks. for the over And to closing today's back additional or does conference like turn session. I'd management that to any

Sharat Sharan

personally for call for XX being you today. take to you, has all Thank very I to all us earning put customers, to of know, everyone, that Thank trust transformative on are and the thank Thank It our and focus opportunity work we the every continue for going and appreciate your to in been, dedication; you as really you hard day. to a of months employees. you the ONXX, our want last and much. on

Operator

thank conclude your may participation, today's And that and you We disconnect. does for now conference. you

ON24 (ONTF) 17 Mar 212020 Q4 Earnings call transcript