ON24 Earnings: What To Look For From ONTF

Jabin Bastian /
2022/02/28 7:01 am EST

Virtual events software company (NYSE:ONTF) will be announcing earnings results today after market hours. Here's what investors should know.

Last quarter ON24 reported revenues of $49.3 million, up 15.9% year on year, beating analyst revenue expectations by 2.76%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a decline in gross margin.

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 3.04% year on year to $51.6 million, a significant deceleration on the 122% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.09 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 since going public on average by 2.3%.

Looking at ON24's peers in the sales and marketing software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. ZoomInfo (NASDAQ:ZI) delivered top-line growth of 59.1% year on year, beating analyst estimates by 7.02% and The Trade Desk (NASDAQ:TTD) reported revenues up 23.6% year on year, exceeding estimates by 1.52%. ZoomInfo traded down 4.28% on the results, The Trade Desk was down 1.24%. Read our full analysis of ZoomInfo's results here and The Trade Desk'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 7.13% over the last month. ON24 is down 8.14% during the same time, and is heading into the earnings with analyst price target of $26, compared to share price of $15.12.

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.