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

Kayode Omotosho /
2022/05/09 7:43 am EDT

Virtual events software company (NYSE:ONTF) will be announcing earnings results tomorrow after the bell. Here's what to look for.

Last quarter ON24 reported revenues of $52 million, down 2.34% year on year, in line with analyst expectations. It was a slow quarter for the company, with the guidance for both the next quarter and the full year below analyst estimates.

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 5% year on year to $47.5 million, a significant deceleration on the 102% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.15 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 2.01%.

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. Freshworks delivered top-line growth of 42.2% year on year, beating analyst estimates by 5.91% and Qualtrics reported revenues up 40.6% year on year, exceeding estimates by 3.06%. Freshworks traded down 0.52% on the results, and Qualtrics was up 4.31%. Read our full analysis of Freshworks's results here and Qualtrics's results here.

The technology sell-off has been putting pressure on stocks since November and software stocks have been swept alongside with it, with share price down on average 18.1% over the last month. ON24 is down 10.1% during the same time, and is heading into the earnings with analyst price target of $20.7, compared to share price of $12.01.

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.