ON24's Q1 2025: Navigating Contradictions in Macroeconomic Outlook, Sales Strategy, and Customer Retention

Earnings DecryptMonday, May 19, 2025 3:19 am ET
2min read
Macroeconomic uncertainty and market conditions, marketing and sales strategy, customer retention and growth, macroeconomic impact and sales strategy, customer retention and churn improvement are the key contradictions discussed in ON24's latest 2025Q1 earnings call.



Revenue and ARR Trends:
- reported core platform revenue of $34.2 million and total revenue of $34.7 million for Q1 2025, experiencing a 7% year-over-year decrease.
- The decline is attributed to macroeconomic uncertainty, impacting customer buying decisions and outcomes.

Customer Success and Retention:
- The company achieved the highest in-period gross retention in the last four years, with significant win-backs, indicating improved customer satisfaction and engagement.
- This is due to ON24's focus on customer satisfaction and retention efforts, as well as the successful integration of AI-powered capabilities.

AI Innovation and Adoption:
- ON24 continues to roll out AI innovation, with over 30% of customers using AI capabilities, and low teens percentage of customers paying for these solutions.
- The adoption is driven by the need for AI integration in sales and marketing strategies, enhancing customer engagement and experience.

Enterprise Sales Initiatives:
- ON24 delivered its best enterprise new business performance in Q1, led by new North America sales leadership.
- The focus on enterprise solutions and improved go-to-market execution contributed to this success, despite macroeconomic challenges.