ONTF - Earnings call transcript Q1 2021

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Operator

Good afternoon and welcome. Please note that the live interactive webcast of today's call may be accessed via the Investor Relations section of the company's website at www.investors.on24.com. Upon completion of the prepared remarks, we will open the call for questions, which may be submitted via the webcast portal or the dial-in line. Please note that this call is being recorded. At this time, I'd like to turn the conference over to Maili Bergman with The Blueshirt Group. ahead. go Please

Maili Bergman

and quarter Hello everyone. to Welcome Thank earnings good conference first XXXX call. ONXX's you. afternoon

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

for presented our periodic like will both for internal We these see identified and and evaluate uncertainties, also and measures to Sharat. point For I report call measures, release. non-GAAP you Non-GAAP review press out use a financial on the turn measures risks to impact purposes. accordance are GAAP of including should a filings operation we non-GAAP to call, substitute could now will these detailed these forward-looking reconciliations We'd financial measures the SEC planning financial over with press To financial description statements, that today's non-GAAP financial in today's in which to release. risks financial addition ONXX as today's ongoing please refer in the calculated forecasting to of and not GAAP. Sharat? results.

Sharat Sharan

Thank you, welcome Thank Maili. to you joining financial ONXX's And us. quarter call. results first everyone XXXX conference for

on and a call today, an provide information and of update momentum. our I'll quick finish a annual with then for our guidance. our product our For our over to quarter turning I'll conference of QX, our review share to business of exceeding strong XXXX financial results pleased it for the results XXXX, high announcements to first end the first I'm Steve recap report of quarter before financials. financial

the For for XXX% compared the million same quarter, year. we first delivered last up revenue $XX.X period of

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

sales allow on that with into digital prospects getting experiences, These virtual who deeply which to of audience into customer at actionable content scale. and conferences five their recognized of data background to AI engage spend world I personalizes and thousands of converts to takes within that experiences Today, in largest to experiences, ONXX and companies enables businesses businesses count that marketing The the platform many we driven by most ecosystem. platform and we of ONXX multimedia As the three largest data, companies, customers. webinar ONXX. makes integrating interactive healthcare first digital customers millions industrial companies. the include platform our always prospects the the the five manufacturing of of engagement, companies, have our listeners four person just some including of experience our that some to largest world's global three as discussing convert are a largest U.S. the technology of time five global know plan global that the ONXX, delivers banks, and five three largest

over a that is expect $XX digital very grow estimate market this opportunity and have billion We annually tenant currently we worldwide as increasingly be large to to norm. the

sales. more that's a that than to data and A platform attendee for of delivering experiences, XXX single engagement per delivers engagement experience just customers purpose-built a Our provide XX points live year. over attendees, experience. of of delivers ONXX system ONXX marketing Many averages minutes engagement is for of of engagement. prospects. single seconds our of hundreds with don't of We audiences and each thousands experiences deliver of XX hours

rich body the cloud-based impact. AI flywheel creates it comes engagement with additional of of engage platform The for the driving their the a with better and increasing prospects data driven experience first This stands is is customers line. That core effect engine business our through next data. engagement, our further the they platform provide data can the We and prospects ONXX experiences, engagement. what today. overall system personalize these believe to alone data, the the As is that and at person delivering our deeper better when our

are more talk ONXX There Now our and three front. Intelligence components, about platform key ONXX Connect. Experiences, ONXX in specifically let's

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

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

integrations combine Enterprises and near typically and intelligence have leading intelligence We do tools. that real-time we CRM, holistic AI many sets marketing multiple providers different need built It automation with deep what rich experiences, driven We our with business integrations data, approach, experiences us engine. platform would apart. customer interactive an multimedia is do.

scale. platform of at on all we platform across customer Our the integrated the puts delivering are of enterprise. critical a also while That engagement a our epicenter global provides and supporting solution this enterprise single requirements

Now the future is looking all digital forward, we about engagement. believe hybrid first

form, not be new a they it digital-first used events will to just This strategy. augment and normal, there gentlemen, back. our physical in and is come better complement a While going some is is Ladies will back way. no

are for strong incredible quarter us drive at how that first have to just what future today. they we Our digital-first our our the revenue results achieving. look the new and are customers telling We proof results normal is now are

has prospects platform. years plus and of top world's One of ARR and software engaged their the company customer has millions several been XXXK through over a customers CRM our

value. in thousands marketing market, The and and more demand of across virtual use greater webinar events different contract engagement and experiences generation, more Conferences XX experiences to In Elite in in ONXX and digital deal increase the Virtual a increase do, marketing pipeline resulted digital XXX% field product XXX% strategy Thirdly, XXXX, a a languages. they ROM. in teams average deliver their in their XX their almost sourced size, XX% increase create digital and

long-term company enablement and how digital sales ARR a Another business customer live a and to experiences ONXX pipeline one to to peer-to-peer and is conferences, We're Elite increase and manufacturing digital the of They drive engagement powered healthcare Target. leading hubs Engagement created content and biopharmaceutical with direct engagement leadership, XXX%. XXXK new We our which with each physicians exchanges and experiences, thousands to pipeline XXX% of multiple thousands on-demand We by digital their scientific leads month, Healthcare company virtual including a units prospects hundreds engage XXXX using of how customers and channel their in digital exploration a multinational into seminars needed enable Hub. units, power Hub in increase We alone. world just industrial first innovation. Energy, platform moving thought the of sales medical reimagine Engagement provide is of professionals and on-demand led of business build Elite, to plus conglomerate. including could for ONXX by

new seeing industry and cases like pharmaceutical our first customers from great the even in vertical within we and industries, momentum see digital, new we manufacturing March. pharmaceuticals, in acquired where quarter, retail this we're various increasingly As becomes use

the educate and comes For they've the and of digital as multi-product improvement contractors tips streams. important purchase. for Elite, home to even largest nation's part company's wins coupons of is content, using way. Hub and home is got deliver in-store Virtual contractor Conference an revenue example, online which from in one Engagement retailers They're our and This platform in of using strategy ONXX homeowners QX Improvement our one consumer the do-it-yourself and individual digital-first and engage deliver

create international Elite, long QX reach in divisions follow-the-sun more. using land the accelerating a of capabilities system audiences. and gas support, our one internal sales oil to and sales chose ONXX with engagement gas the capacity already their we and traction target of working global technology Target unit We XXxX giving chemical from and company hard who Hub, with expand came Engagement and us and They're had greater expansion to traditionally to are motion land-and-expand been Another multilingual accelerate largest and ONXX oil business of to to line.

their footprint Hub, our enablement all services and which four multinational and quarter, EMEA This Elite, uses North in grown Target America. equipment leading and channel company, to ONXX digital Engagement we've a power APAC, Japan-based Virtual strategy within IT Conference

deep and to Now to we experiences and audience the finally, developing areas. every engagement next personalized dynamic we ecosystem experiences journeys attention we and data. the innovation. At digital powerful make and data committed We topic let's the individual AI member ONXX, all key Two, available built to engagement marketing of and three in effective and truly first collect we continuously engine audience customers. level of for recently are our person across innovating our power offer the create to signals buying sales first and continue announcements drive person of that One, to platform. the to unique made shift capture

tools near rich deep announcements have and have intelligence We CRM, marketing automation ecosystem. real-time further and new business we important and made this many the leading area our integrations to add several in integrations recent with expand

at the latest and a engagement. our digital look take innovations of let's building Now level next

attendee to created sales attendee, been and The have demand is that and finally today. attendees bidirectional for ONXX why attendee, ONXX between Elite ONXX video on available we We seeing growing Breakouts. presenters engagement and Breakouts

engagement We more are even flexibility the to experience. enabling customers webinar audience our beyond live within and at have

can enable entry You for breakout seamless to do peer-to-peer into networking. attendees rooms

have can enable deal You engagement of world redefining is you customer from is products moderated exciting truly can including delivering matter additional subject across immediate great interest one-on-ones a our base. very soon conversion. digital-first in Conference Virtual ONXX reps video interactive, with again and that our a and offer. this accelerating session be This product will two-way a Q&A experienced Once has new sales experts with capability sessions, with

seeing prospects system AI and Next, engage our marketing too. their for as customers, platform integrations demand primary and with our customers conversational chat use for as to are often we sales

of Our first market conversational leader the time is this Drift. in of AI, integration

Now sales with their event live our and teams. integration, customers webinar connect immediately seamless through our prospects can

and of visit and we keynotes, demograms network complements can existing product key conferences, our With our with digital Breakouts, experts or continue which watch product. agendas, other multi-session market, Targeted to group attendees. online and training commercial Conference the of own shows, customers introduction their other Virtual next enterprise engagement. Audiences our stand conference create events. can explore introduction Conversational for Another level conference up is virtual the growth, Pro, trade virtual quickly AI, deliver sponsors,

AI AI on dynamic vast data AI recommendations ONXX of member. April audience a area specifically every unique through engine individual creates new engine around for to content based leverages is second our recommendation history millions inform engine. engine engagement across unique our individual user journeys personalized delivery. personalized AI of that we to collected launched innovation powerful consuming ONXX The creates role of The a XX, Based points the interest. tailored content, Experiences content of On

matched uniquely to first-person that our Our customers to engine will take automatically AI each next are and enable to level by powered or digital data process. with continue journeys generate lead experiences the individual

With the product of area We Connect, third of the real-time take our marketing connected near ecosystem. The sales our ecosystem available the are data made action. engagement in integration. real-time engagement we platform to with most customers enabling deep digital enhancements and delivering ONXX data is customers,

for event, and with marketing marketers life Veeva better built have sales actions leading customers with capture inform Together events, will a of and market. marketing Veeva two announced trigger deep In points We an science sales. will integration Elite recently We solution Integrating end-to-end CRM and industries, automation of and teams we information and important single many The engagement enabled view our provide ONXX CRM across marketing into and level CRM, integration. audience of to to the player healthcare leading experience tools. doing the give announced the attendance I'm and also life sales integrations the registration with work impact to every and about ONXX in planning, the of we measuring sciences of engagement. integration activities various extend new deep our intelligence digital professionals. business pharmaceutical data tools. and new integrations are and we with digital events executing Veeva, excited with we engagement ecosystem to engagement to

lead we much pace so engagement take CRM will has already Outreach, our Our on With a of system, person joins immediate for We class automation of sales Oracle ONXX today data and insights sales are ONXX partnering engagement. customer we prioritize look platform. can engaging our the XXX-degree motions first prospect to Marketo, commitment others able supports formula. enterprise on one real-time to you an such increasing leading further. and critical in teams innovation rich, we force, data as platform as integrated SAP, sales with most sales across central engagement near action This personalize it we others. platforms remain integration, to view this leading CRM on many in and update on so become are to progress Adobe There the is return creating be experience with and area. with sales to the our working data our to now more This new Connect tools to including dynamic, scalable, to take step forward Eloqua marketing true integration providing digital this that is continuing increase

me some about information let share growth rate. Now our

capacity to expansion sales new drive acquisition, adding are upsell. and we First, customer

investing Second, develop add DACH for to are we we very seeing the customer upsell. we and wrap platform customer Japan are excited entering R&D To in up, and existing new continue overall international markets to including acquisition are our and and products expansion to and customer finally about new momentum new our we both are also. organization

on-demand is companies I ONXX and off us. convert platform attendees to Our watch. the of thousands just enables millions came conference, today We of you available join had virtual It to prospects of all thousands very Experience. of customers. successful We a encourage

our replay banner the at You find on-demand the link homepage on can to onXX.com.

are included story the the the participation ONXX. are customers are Zendesk. conference link Salesforce, The customers webinar. The earnings generating the GE, sales impressive and they presenting The on have Looker, Information customer and business our SAP, pipeline platform was of that undeniable. also included achieving in they shared have results that National our benefits call with We in the Honeywell, and Services using achieving Fidelity the highlight Google and

Vattuone, walk rich Thank I'll engagement in a results for we to growth over CFO, hand move the our digital-first positioned our our enables we it that customers. system that With are believe As you. with first QX you hybrid to Steve more that, into through forward digital detail. of we ideally world, data business

Steve Vattuone

everyone. Sharat you and Thank good afternoon

Platform of Sharat very through Digital revenue. quarter As our delivered is which Experience I'm mentioned, our to revenue results. that results we sell of our going are subscriptions pleased generated discussion to is first with the The with we cloud-based start majority software. our from

from stopped which new XXXX. X.X% we from which Platform generate services legacy revenue and support and in revenue to our primarily offering, selling revenue of of also professional in services. revenue XXXX our Digital customers consist excludes is product QX, We Experience implementation

$XX.X Our revenue compared XXX% of XXXX. an million for to the first QX quarter increase was of

Platform first was of and to Our increase increase Experience the XXXX. an year-over-year. quarter revenue quarter other XXXX million, $XX revenue $XX.X Subscription compared Digital for million, an XXX% XXX% platform the first was of of

depending of representing X% X% quarter was but revenue, usage our revenue. As in can customer year-over-year to a of $X.X XX% fluctuate the on overages increase reminder, total around generally Services platform XX% seasonality. which our this million, and first an are Professional includes revenue of of

As we for a the seasonally for services quarter, quarter is typically low first professional last mentioned quarter us.

revenue percentage total during up We a mid-teens revenue expect as to of the this QX. in be

XX% and the A underpinned million, We customers of ended ARR. $XXX.X as customers is XX% represents customers our increase continuing well key customer Services annualized add to year-over-year. of Moving representing footprint the both expand customer growth and products. strong at as ARR contracts QX, at of value customers end new existing additional usage a they with our XXXX subscription year-over-year. period driver new ARR the end platform on as and growth of of to the of ARR our acquisition, pace users, to all XXXX across and in by quarter of is continued first which is XXXX of our both our The an acquisition. reflects growth Professional the products at of capacity land our ability strategic ARR within overages. ARR Total existing businesses. more QX, becomes their and new expand excludes

ongoing the with of of year-over-year. we In representing ARR XXX XXX% our customers. or the with $XXX,XXX more larger at growth customers This addition, enterprise demonstrates quarter, traction first had end of

continue we base speed of for our leverage will runway providing a ongoing experiences existing our to confident are to customer growth. long We upsell

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

results compensation, as non-GAAP as exclude stock-based items. certain Our well other

intend this near in ago Our and release. and our earnings invest reconciliation gross fiscal expect we representing to in in XX% to a margin quarter can compared We non-GAAP of Gross XX% business million, scaling along $XX.X GAAP year in XXXX the GAAP throughout results between period. term. with margins the in results gross a found be result, as reduce a financial to the profit to continue the was

operating in Sales year. marketing intend $X.X QX $XX.X in year. million in quarter to $XX.X increased to million to QX QX now an expense digital and This last We period continue to the last represents million year. year. was in expense expenses. in last investing $X total XX% marketing to and compared Turning was for revenue, last the to revenue This improvement first XX% in million compared of same support of our in XX% QX XX% sales demand R&D experience. compared versus total represents

R&D our expense to XXXX, R&D. versus last to through revenue XX% and in increased in we the move XX% in year invest million G&A continue absolute past was for was have we year. spending $X.X quarter the million $X.X revenue of as first dollars the year. We compared of last over G&A intend to quarter

million million our expense $X.X a revenue. Operating X.X% or increased operating to have expect G&A with expenses of was compared the a a to income percentage during G&A being percentage a Our margin decrease publicly as operating of traded million time, for $X.X revenue we associated X.X $X.XX QX shares or on our Over net QX diluted QX loss year. an company. as costs the of income period $X.X per a or This diluted million basic X.X% diluted shares based $X.XX average to last XX.X same compares $X.X using outstanding. share last during in in and year or million approximately loss share outstanding. negative of million was per Net weighted

Cash to million $X.X in from quarter cash balance and ended first in the flow million sheet Turning the cash, quarter last in in the Free million short-term flow. margin million to QX operations X% in and cash year. $X.X year. in flow first compared in quarter flow QX year. equivalents $XXX to $X.X was investments. to We with last the million cash last $X.X was compared QX Free compared cash X% was QX

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

$XXX.X the the we is range using revenue are these of million operating X% share continued our to positioned the areas or the for results net well with per and million it of second a And for XX%, of are in XX early per and and expect earnings especially of positive $XX.X $XXX.X of shares which high shares of our to we We income off per same business non-GAAP per the with to XX per growth in growth and benefit growth loss $XX.X and we to in A all and to of or explosive million we using quarter share At Non-GAAP million engagement per the customer income to share of negative $X.XX made existing are the year operating non-GAAP factors of represents $X $X.XX $X of new expect a pleased have revenue million summary, loss the year-over-year from X.X%. non-GAAP income $X.XX in positive full outstanding. of very QX functional of XX.X $X from the a the COVID-related outstanding. loss business, QX using in share our to represents which to and customers. with range diluted of diluted per million year share margin outstanding time, in margin million in range In expansion to of basic in non-GAAP pleased share momentum XX% basic are range X QX. investments approximately approximately company. XXXX, loss $X.XX to coming of year-over-year a diluted X% renewals operating Balancing our million share operating shares XXXX, we XX% XX%. to million X% million year in the peak

benefit will trends questions. need the call I data We Sharat the and Operator? expect for the our that, open to from driving to digital platform. rich continue engagement for With

Operator

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

Sterling Auty

Yes, I sense late drill guys. to the who companies. you left think you and the the the I customers what selling we questions Because quarter, of a added already do give that is they thanks hi one in wanted is ONXX industries get who to the digitally, us new on can who's to right, that during represent comers and sized platform? are come what

Steve Vattuone

Sterling really in that greater terms the increased at $XXX,XXX We a is net I'll new QX had quarter or with more and one. our XX Steve, good XXX end customer than with ARR that customers XX growth. by customers QX. this are and ahead X,XXX of go start in added and Yes, customers to We of ended

So we're to continue very adding new we pleased with customers. and make the progress

added obviously disclose on count. lot good in seeing In customers verticals. terms we QX, guidance, that at seeing of don't very a we're and momentum. customer large of but end really forward-looking We'll of we're that the report multiple it We

Sharat Sharan

entertainment we and across our Sterling, on board. manufacturing, seeing what sciences, traction technology. are We media Steve Just and ICP financial focus on focus life really said to services, professional we just to the services, add

five doubled they one they top us They've very, QX. with side, significantly. they on like it, May North manufacturing would they've ARR of run us their things Engagement last their capital were increased used company guys Virtual Hub spend, I and spend you pharmaceutical, and expect we the in Elite, be financial of we leading they Of largest year market the their and last services the are XXXK banks good the traction. to and rate in in that very came technology but in space customer course, with worked increased a closed is mean I'll they This America, year, Conferences. give example seeing an spend you

very we I space So, we of are on that a in seeing are that's seeing also gave pharmaceutical the basis. that, momentum Veeva global example with across category integration the important a

Sterling Auty

then And us expansion around own the just a maybe color virtual being a mentioned big get typically little out you end you bit experience you give generation you that this event the conference each and what help, this conference more some for of that Great. is lead experience and what of did up you - your customer year? coming year, your

Sharat Sharan

Sterling we this did and physically generally in first the past, digitally. So have done year really is this we these the experiences

things attended was customer people part virtual, was there then key XX, They started customers, people more one that we new about it are of to in another of who of action. the lot customers, in a course day as stories. one It right, this one-day I about able events very this we've to at see other for America. And see About North peers see We North is had - days this and one X.X X,XXX had will going two so APAC, from from and EMEA the be hug, conference customers them been were It We year, their been probably event. four of do and attended to in it people of been important do bear almost it these the our about is Because able one we X.X existing doing - almost done would was are this. over a another America, to do. what XX and thing that, X, EMEA and did like a learn or to Typically, think and the can this see. there platform, later X,XXX year. they get are always we acquisition time. demos. we that's One educated in kept always and XX/X new we APAC of three mark it over can

did previously. Now do more going a conference of that hybrid a we more move this we'll forward, than to situation are little going we probably to frequently

Operator

hear we'll Sachs. from with Next, Goldman Chris Merwin

Chris Merwin

my Thanks for question. taking

going additions probably as general just these You it? well. heard not don't admit I talked Breakouts multi-product I about the is think still customers you I and net but motion know, contributing cross-sell retention dollar think that in I about new think how in the talk But don't - script. some I others or speak some I very missed can you are heard and early and I product yet, to

just the can those in metrics us how comment please you cross-sell if just you maybe can and So update motion Thanks. general going? on or is

Sharat Sharan

And of the you So take the first second the question. part. can Steve, let take me part

we terms upsell really the are and So that saw Chris QX. in in excited we expansion of

how by for lot our this there's excitement it Breakouts, from in continued a excited are QX, product. of base has specifically We about customer

XXX But Now only peer-to-peer interactions, into of with can engaging signals networking in engagement buying to not who a interacting one-on-one and and live data and now can thousands experience. group people you meeting. are reach you move

So from that it you sales takes deal. marketing funnel down driven the further to close

we So uplift, it, is there Chris. expect mean early. yes, to of launched it and provide this I and just is a lot we but excitement

a it is and of our expansion Steve? our part this cadence. So is part major expansion of early, but and upsell another

Steve Vattuone

we also you'd talked asked time. multiproduct Chris, I about the about think metric Yes, last NRR so and

but start me strong basis, NRR, quarter So NRR we very had quarterly as report don't with on on a NRR. really expected we let for a

of to ever being our pre-COVID levels our NRR are than expect per XXX% about highest something enterprise to was NRR continued up to enterprises, higher return average customer go in with to do that five it's closer We And points our QX over ARR seven to been. business. Our time. typically our XX% that business pre-COVID

XX% multiple products. with we and really with with customers customers increase for to the of XX% products in in the terms the saw cross-sells, are XXXX pleased we In two-plus

a QX, year, area. to Now, to have number this two say rate at with we're expect but it's I or the products we increase did continued it we're more disclose and we don't with going progress that during pleased our that increase really customers not really that quarterly, metric of can in

Chris Merwin

And Thank Okay, it integrations. is like question, another other the remarks around great. theme you. maybe in seems one

you just time? that does that points can early, or you trying Thanks. within couple being into platform for how again maintains understand more I about like maybe, from about is mentioned here suite for but then captured, terms separately impact to a outreach the think about probably being directly the other integrations your the the an pain I talk over customers bit having CRM companies you guess data increasing and the often is the platform with we And Drift, that's know, all? this in secondly database a solved customers going And Just kind that's I that of with broadly. of into think with are customer platforms? - is improved go the a to stickiness these that the ONXX data stickiness

Sharat Sharan

is integrations within much and whether and and Eloqua, for from ecosystem of or millions of Marketo extremely, others customer better, systems, deep it's more that most this whether - happens. of our Sharat, engagement of Adobe sales these So of signals spent and generally a when much we and us just Chris, is ours, ecosystem ARR XX% kind buying it's we of a some marketing important overall is stickiness one the of those very important part. our within integrated SAP, extremely is integrations see robust data Salesforce, so - building third-party that

that us, created basic take the data but sciences just integration, in very XX, almost So, not only points this of all we near integration it's we real-time the XX Veeva engagement the important engagement. announced life space different and is we've to

and to uses. is a ready real-time we marketing in that saying. So the customer close our prospect ecosystem buy information I'm go when almost to are to a that days, and sales through XX salesperson to - they want ready when buy

a trying people. integrate that, we data ecosystem. - marketing our within so not sales be and and to integrated data the customer sales If make our they've silo, are Salesforce, it's to our got we available Marketo, in got it's So they've marketing if

So helps stickiness significantly. clearly very it

in their profile have is example and that what about sales that others within platform called and prospect particular profile. the everything they engagement Now we we this, a Outreach. is within are of a the XXX-degree prospect to are we're we do and tool. are they prospect provide Outreach, something a on that engagement trying enablement and Outreach enable It's view first, done, of our integrating They what SDRs doing

comes and they up, following more engagement come platform are people the and a into sales the the deeper to in that conversations. that integrating one-on-one about and go adding direction in that with Drift SDRs want can sales engagement move converse they of we the into Things more that are perspective, so people funnel when know Drift, about value. So lot again platform. the customer If

is to point a it are integration, important extremely are stickiness side, the these it platform all view, those brings making value transform continues data sales of customers that and but part other from integrations, customers. So our one extremely, engagement and marketing our from integrations our also doing the the sure for of on also the to the we

Operator

with Baird Oliver next question. Rob our has

Rob Oliver

taking for for you questions. my I Thanks That to had one Sharat start.

language your both we user guys some particular you well of their about international touch the go-to-market multinationals as dealer side some in kind as they're distributor wanted Honeywell of to know the product on event wake and investments big [indiscernible], I talk ONXX. using Just, companies, and how in on side making where model big like redefining and saw in on are the those and I just

for as So I'm guys using addition look curious as expansion that you these of And within accounts, new of are already had then a that quick I follow-up the with that you at about expansion Steve. the a existing corporations? know some talk true multinational languages how for of we accounts are driver

Sharat Sharan

think built companies, and focus for on. platform commercial Yes, Rob, multilingual privacy I accessible, where that's enterprises this we global we great reliable, have scalable, enterprise compliant,

because time, and prepared give of to an that globally when a been our that's largest talked for I a brought of they example industrial companies. of is ours bring how one of manufacturing my They've customer these but customer, you the the that long expand. want the multinationals to example so customer, bring once in we focus customer expand Japan-based we and about remarks the customer we really And also and several in over for they into engineering, more going than division physical, more divisions in all one of digital experiences committed the that XXXX multiple towards chain, live more these forward. as people parts really first supply engagement of so expanded more audiences those, - even of to attendees. the it, Europe the a And first divisions of these X,XXX there guys hybrid are in gravitate their are

and that's expanding focus when key a that's across the somebody you the part from but is we talk DACH our our then very we So heard virtual in languages really focus also others, world might bring what and that or is Germany, about conference.

scale, what to headache as out heard languages, enterprise multiple you and So conference their they're too. with our scale at we to in provide important a compliant that's what that's trying very prospects privacy of take part and their customers probably engage the

Rob Oliver

thought how stuff for economy. about relative just to curious great, and a various in and globally you you, still thought then about on of that's I guidance? Steve, the terms for just you COVID Thanks return helpful guys. Sharat. assumptions guys color in what in we're Okay, quick as the there had for and you a just the any the you guidance year, Thank of at know curious impact stages the rest lockdown of one for the embedded

Steve Vattuone

Sure.

forward see this our annual at best as going business we view point. guidance Our reflects the

that's and guidance to and our seeing QX high level also Sharat, you customer that board to a continue the to We're customers engagement Our anything that? with our in well. want the do very of across us engage with add results reflected quite provided we've customers and

Sharat Sharan

base skews. are did do we ahead get quarter we and to you toughest very did always far. and by We we as to guidance some if we want and we in are think that's is upsell, a I we new customer it by significant strong because from year QX, factored we COVID if the in that is - renewal largest early in look buying expansion guidance. also the in seeing but we our trends factored that QX, wins The something do at No, a at look comp see Rob don't year, have related magnitude QX on our our our QX, so within

Operator

hear now with Bracelin We'll Brent Sandler. from Piper

Brent Bracelin

on more little cycle. to drill a as renewal close the I are a towards and hybrid? are Just renewal like down customers we an existing of and on guess, pivoting Just may today. heavily get to to go going Sharat, of us bit view be of peak engaging going conversations some there it's going? the with that renewal conversations lead-gen early else? to early completely get the something there want Are and be the How are customers walk look how customer I virtual, some How reopening? those any reality shifting existing or how through what not customers you're to trying these more conversations physical messages

Sharat Sharan

parts Yes, Brent. in so let me it answer two

in continued So hybrid the QX. been permanent thrilled first There and what future the saw on is customer in are behavior. has we with of engagement. engagement change that us, our telling all, customers that in has a are we about QX And based

spent year, of people point, hospital, X% QX their give with they accelerated tell in it of this And As from digital, interacted with example year, country. X% up QX a their I'll - a XXXX, that's in their spent higher. the or platform of there spite more HMOs it's - you, did, the data in last one moving they they but time in cadence is is I'll attendees sales they our to you us. on of into people the spend increased a moved what largest hybrid

by are companies average of CRM marketing source XXX%, increased with largest of I In XX%, the by one their my that deal those by that we conversations hearing So, talked are again many our about contract the and XXX%. value customers. size prepared remarks, again

up impact, these was companies. So it - the are with that of factored those year minority for there being and QX but accounts we've of renewal, - these that in accounts of we always is didn't in going many last downsizing of a that and that kind COVID-related That for know no expect our in buying business guidance. peak showing we back said, some

So, we that's what And prepared are that. for already in. we've factored

Brent Bracelin

look up If is there. XX% at certainly my really capacity. and around And color - it's QX. I just I sales marketing just a sales investments, think last that's Good, into one then year-over-year helpful

of couple quarters? have coverage you relative about forward in relative go color marketing adding you capacity the how going this last heavily kind kind to and at How kind investments to to of additional feeling much over do any just more QX? investing exiting talked of to You of in additional sales are here, point, relative the plan here

Sharat Sharan

right. Yes, - so we were year, last Brent We really behind were - caught.

of also was that and So productivity part significantly numbers the stuff. and other increased

are - for adding year to we are the planning this we trying and So capacity. catch up

expect a sales we've more. added number we significant and of year, that capacity So add this added to marketing we've

QX some to ramp and the reducing focus are those of international, we in started that year, will that a because not going end been including the that commercial hired should we people of really assuming that's expect six to nine people new the the we're on markets. and by done months second part areas we last enterprise, ramp we of think but yet, I and generally to when start has

are will areas to more traction. seeing the on side, we international expect we good add think the more people side. to continue add are I I continue will people that we on commercial those

Brent Bracelin

and Totally cohort good certainly in numbers new customer uptake seeing a there. makes XXX,XXX pretty sense you're

is it all like So that I sounds QX, working at least here so strategy in thanks. That's had.

Operator

Blair. William Bhatia We'll Arjun now with from hear

Arjun Bhatia

on bit process model, sales of Yes, if you purchasing the go-to-market maybe more the Pro. in higher Conference us my taking just that can you're a things And commercial on segment? needs from Sharat this or are moving motion market maybe change or the to this after of the you presence? established And newer to Virtual one do an to it's the if little - results I a follow-up thank sales with velocity that for going think last questions, something remind market a side you've had down is part see what you

Sharat Sharan

Arjun, second two think address people so right and in got let of see commercial We the and of into them down. Pro, - related me up we to you Virtual related what really customers on the go categories I and call the questions, part XXX one X,XXX both it we various So the is to a Conference TAM one so and is commercial down we market. so, is commercial break large which very to

are in market. that investing we So

As be that we with product also going the to is Breakouts, that are bring I think to an take the market. Elite going in now to that product important we

engagement we market for than data but system So, market. potential not see of higher in our the the SMB SMB rich - the using business se, the per little

a have pretty products. strong all see our sells that there. and we basis that team we So, a on are And potential we team expanding global

Conference commercial Virtual Virtual The hand related the little is - Pro, require price about more in product Now to holding a lower. our think market, is a I Enterprise wanted business XX% point of our palatable than more also business. our - little Virtual Conference did Conference Virtual overall Enterprise then the Arjun we

reduce not a I'm completely making middle point, still commercial more it's but level our it's it price kind So SMB of version point compared a self-service, a point. it's not and somewhere sure market. for of in good the it's and before the to price the but self-service entry lot

Arjun Bhatia

to need us core offering going to purchase? totally different platform? the the the Breakout customers touch part that I would add-on? help on that's like announcement seemed be very you're Okay, of that pricing is and how curious an certainly pricing something Is that just helpful. can it in a Is there. exciting model very if resonate market, seemed And understand that that, the Just

Sharat Sharan

Yes, taken uplift and the it's Elite, to Arjun, an - can't pricing have as their subscription. I out we I it's existing think, model, like disclose but

as subscription, to out, workspace so as an if are early, still it's and somebody but trying figure a and a thing to $XX,XXX that that selling we're uplift we okay. it's an logins, that kind So has subscription two one subscription add-on, of

different we thing in Now but different that the as the products, have. the virtual in tack launches a approach is conferencing, we take this may

expansion our customers and to as we So going uplift cadence to all with and upsell of an are this. from market

Operator

Enders will come KeyBanc. Our Steve final from with question

Steve Enders

the in guess driving deals of how my another probably term ago. platform from this year and question. progressing months for the conversations taking saying earlier are longer these I into an point first at Hi, the about it on a renewal multi-year long-term big question great, couple either for opportunity push follow-up you're those But thanks I customers? wanted of that a with facilitating or from use usage to

Sharat Sharan

Steve, do you want take that?

Steve Vattuone

Yes, ahead and I that. go can take

then deal of to asked terms start questions the question other the I'll - one. pivot me the was with kind you that, In two it of let multi-year

going. multi-year pleased in those to in trending So to with in what fashion is quarterly, significantly. are in count provide customer really the growing XXXX, deals, similar it how saw how don't our a we very even of second of we're We but guidance on report terms half with ARR

continue customers the and our them. long-term So we we're with value really see with to in continue strategic multi-year sign our to pleased how deals offering

of that's In the happy and renewal opportunity, terms reflected our with are we're guidance. at where in things

both of buying a downsizing As Sharat are in accounts do these minority mentioned, We QX of these was for of last accounts. year factored was always peak the renewal. of and some COVID-related up And XX% growth and expect many churn a that was last coming quarter tough that's to provided XXXX we explosive are a year us. rate guidance which our guiding growth compare plus again we quarter and in year-over-year this off for into of a and

continue to our how we of in and wins about about excited customer with great we're the see We're going. engagement So level new our customers. really excited that's QX

Steve Enders

And a far? so make wondering things quarter, of you kind follow-up, you quick hear. some I how of that to great I'm progressing in that's channel, Okay, that and just agency but just wouldn't last know the mentioned

Sharat Sharan

from investment. I in kind think, We channel of life base, also ISV little is progress, executive you starting only a sciences important Veeva more Yeah, an category. mean expectation we the as to I Steve, the hope are things another these a pipeline in take there hired we We the know with announcement so one. related upside is drive but here. making low is are our while so to EMEA,

So this has multi-quarter way, got Steve. a run

but So us we take a will keep will few this you updated, quarters.

Steve Enders

taking for thanks great question. Okay my

Sharat Sharan

here move forward. upside mean so as only is we I Because there starting we are low,

Operator

additional question-and-answer over Sharat for turn I Sharan today's the conclude remarks. would will closing to any session. That now call

Sharat Sharan

everyone you, See joining quarter. next you Thank for us Thank today. you.

Operator

today's concludes you disconnect. you This now call. for Thank may your participation,

ON24 (ONTF) 13 May 212021 Q1 Earnings call transcript