ON24 (ONTF) Reports Q3: Everything You Need To Know Ahead Of Earnings

Jabin Bastian /
2022/11/08 2:18 am EST

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

Last quarter ON24 reported revenues of $48.2 million, down 7.44% year on year, beating analyst revenue expectations by 2.03%. It was a weak quarter for the company, with declining revenue and underwhelming guidance for the next quarter.

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 4.05% year on year to $47.3 million, a further deceleration on the 15.9% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 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 2.02%.

Looking at ON24's peers in the sales and marketing software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. ZoomInfo delivered top-line growth of 45.5% year on year, beating analyst estimates by 3.27% and Zeta reported revenues up 32.2% year on year, exceeding estimates by 7.94%. ZoomInfo traded down 12.00% on the results, Zeta was up 5.26%. Read our full analysis of ZoomInfo's results here and Zeta's results here.

Tech stocks have had a rocky start in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 6.47% over the last month. ON24 is down 17.2% during the same time, and is heading into the earnings with analyst price target of $12.30, compared to share price of $7.45.

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.