William Blair analyst Arjun Bhatia has reiterated their neutral stance on ONTF stock, giving a Hold rating on November 8.
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Arjun Bhatia’s rating is based on a combination of factors that reflect both the challenges and potential opportunities for ON24. The company’s third-quarter core platform revenue exceeded expectations slightly, but the annual recurring revenue (ARR) saw a decline, which was a concern. This decline was attributed to slower growth in new bookings, deal slippage, and specific challenges in the life sciences sector. Despite some positive signs, such as strong enterprise momentum and recovery of previous customers, the overall ARR outlook remains uncertain.
Management has expressed optimism for ARR growth into 2026, and there have been efforts to reduce sales and marketing expenses through improved go-to-market strategies and the use of AI tools. However, with revenue still on the decline and ARR being unpredictable, Bhatia is cautious and seeks more evidence of a stable and growing top-line performance before upgrading the rating. The stock’s valuation, while discounted compared to peers, does not yet provide a clear path to sustained growth, leading to the Hold rating being maintained.
In another report released on November 8, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $5.00 price target.