Virtual events software company (NYSE:ONTF) will be announcing earnings results tomorrow afternoon. Here's what to look for.
Last quarter ON24 reported revenues of $48.4 million, down 3.2% year on year, beating analyst revenue expectations by 2.08%. It was a weak quarter for the company, with a full year guidance missing analysts' expectations and a slow revenue growth.
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 9.29% year on year to $47.2 million, a significant deceleration from the 43.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.16 per share.
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 Q2 earnings results, giving us a hint of what we can expect. ZoomInfo delivered top-line growth of 53.5% year on year, beating analyst estimates by 4.96% and Freshworks reported revenues up 37.4% year on year, exceeding estimates by 2.95%. ZoomInfo traded up 10.5% on the results, and Freshworks was down 3.01%. Read our full analysis of ZoomInfo's results here and Freshworks's results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 8.2% over the last month. ON24 is up 4.85% during the same time, and is heading into the earnings with analyst price target of $13.3, compared to share price of $10.36.
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The author has no position in any of the stocks mentioned.