ON24 (ONTF) Q4 Earnings: What To Expect

Virtual events software company (NYSE:ONTF) will be reporting results tomorrow after market hours. Here’s what you need to know.

ON24 beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $36.33 million, down 7.4% year on year. It was a very strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.

Is ON24 a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting ON24’s revenue to decline 9% year on year to $35.79 million, improving from the 15.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.02 per share.ON24 Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ON24 has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.5% on average.

Looking at ON24’s peers in the sales and marketing software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. AppLovin delivered year-on-year revenue growth of 44%, beating analysts’ expectations by 8.6%, and Freshworks reported revenues up 21.5%, topping estimates by 2.7%. AppLovin traded up 24.1% following the results while Freshworks’s stock price was unchanged.

Read our full analysis of AppLovin’s results here and Freshworks’s results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the sales and marketing software stocks have shown solid performance, the group has generally underperformed, with share prices down 2.8% on average over the last month. ON24 is down 8.8% during the same time and is heading into earnings with an average analyst price target of $7.67 (compared to the current share price of $6.10).

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