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Earnings To Watch: ON24 (ONTF) Reports Q1 Results Tomorrow


Anthony Lee /
2023/05/08 5:05 am EDT
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Virtual events software company (NYSE:ONTF) will be announcing earnings results tomorrow afternoon. Here's what to expect.

Last quarter ON24 reported revenues of $46.6 million, down 10.5% year on year, in line with analyst expectations. It was a weak quarter for the company, with a decline in gross margin and full year guidance missing analysts' expectations.

Is ON24 buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting ON24's revenue to decline 12.3% year on year to $42.5 million, a further deceleration on the 3.21% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.

ON24 Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1.72%.

Looking at ON24's peers in the sales and marketing software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Momentive delivered top-line growth of 1.57% year on year, missing analyst estimates by 0.11% and Braze reported revenues up 40.1% year on year, exceeding estimates by 3.05%. Both companies (Momentive and Braze) traded flat on the results. Read our full analysis of Momentive's results here and Braze's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 6.57% over the last month. ON24 is down 0.23% during the same time, and is heading into the earnings with analyst price target of $9.5, compared to share price of $8.65.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.