Virtual events software company (NYSE:ONTF) will be reporting earnings tomorrow after market close. Here's what to expect.
Last quarter ON24 reported revenues of $43.1 million, down 11.2% year on year, beating analyst revenue expectations by 1.24%. It was a weaker quarter for the company, with full-year revenue guidance missing analysts' expectations.
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This quarter analysts are expecting ON24's revenue to decline 14.1% year on year to $41.4 million, a further deceleration on the 7.44% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0 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 1.55%.
With ON24 being the first among its peers to report earnings this season, we don't have anywhere else to look at to get a hint at how this quarter will unravel for software stocks, but there has been positive sentiment among investors in the segment, with the stocks up on average 2.7% over the last month. ON24 is down 2.36% during the same time, and is heading into the earnings with analyst price target of $9.0, compared to share price of $8.3.
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The author has no position in any of the stocks mentioned.