ON24’s Hold Rating Maintained Amidst Macroeconomic Uncertainties and Delayed ARR Growth

Needham analyst Scott Berg has reiterated their neutral stance on ONTF stock, giving a Hold rating yesterday.

Scott Berg has given his Hold rating due to a combination of factors impacting ON24’s financial performance. The company’s first-quarter results were generally in line with expectations, showing modest revenue and profitability outperformance. However, macroeconomic uncertainties have affected sales cycles, leading management to delay the timeline for returning to positive Annual Recurring Revenue (ARR) growth.
Despite these challenges, there was a positive development in the ARR per customer metric, which increased for the first time in several years, driven by customer expansions and new acquisitions. Nevertheless, the overall outlook remains cautious as the company faces potential quarterly ARR contractions. As a result, Berg maintains a Hold rating, seeking further validation of a return to ARR growth before considering a more favorable recommendation.

In another report released yesterday, Canaccord Genuity also maintained a Hold rating on the stock with a $5.00 price target.

Based on the recent corporate insider activity of 102 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ONTF in relation to earlier this year.