On24 jumps as company says it has received ‘indications of interest’

Shares of On24 (ONTF) jumped in morning trading after the company reported third quarter results and said the company has received “indications of interest” for a potential acquisition. For the third quarter, On24 reported earnings per share of 3c and revenue of $34.6M, exceeding consensus estimates of 1c and $33.87M, respectively. “We are pleased to deliver Q3 results above guidance. We made progress on our strategic priorities, including our AI-driven agenda, our continued focus on regulated industries for new business, and driving efficiency in our go-to-market engine to increase profitability,” co-founder and CEO Sharat Sharan said in a statement. Looking ahead, On24 forecast Q4 EPS of 1c-2c on revenue of $33.9M-$34.5M, compared to estimates of 2c and $34.23M, and fiscal 2025 EPS of 5c-6c on revenue of $138.6M-$139.2M, compared to estimates of 4c and $138.16M. On its quarterly earnings conference call, Sharan acknowledged that On24 has received “indications of interest” for a potential acquisition of the company. The board is evaluating the indications of interest with Goldman Sachs, its financial adviser, the CEO said, adding that “there can be no assurances as to the outcome of this process.” Following the earnings report and call, Canaccord raised the firm’s price target on On24 to $6 from $5 and keeps a Hold rating on the shares. The firm said the quarter was a bump in the road to recovery as this is generally a seasonally slower quarter for the firm, but softer-than-expected ARR was primarily a function of new growth bookings, which was particularly tangible in the Life Sciences vertical, an area of recent strength for the firm. Meanwhile, Baird raised the firm’s price target on On24 to $6 from $5 and keeps a Neutral rating on the shares. The firm updated its model following mixed Q3 results and questioned whether it could be a potential takeover target. In morning trading, shares of On24 are up 13.4% to $5.68.