ON24 (ONTF) AI Stock Analysis

• Market Cap: $213.65M
• Dividend Yield: N/A
• Average Volume (3M): 163.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• Revenue Growth: -6.88%
• EPS Growth: 15.83%
• Country: US
• Employees: 437
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 42,306,290
• 10 Day Avg. Volume: 181,890
• 30 Day Avg. Volume: 163,719
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.25
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 0.50
• Enterprise Value/Ebitda: -1.42
• 1Y Price Target: $5.25
• Price Target Upside: 0.38% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 54 Neutral
• Price Target: $5.50 ▲(5.16% Upside)

ON24's overall stock score reflects significant financial challenges, with declining revenues and persistent losses impacting profitability. Despite a strong equity position and positive earnings call sentiment, the stock's bearish technical indicators and challenging valuation environment weigh heavily on its score. Positive strides in AI adoption and enterprise metrics offer some optimism for future growth.

Positive Factors

Customer Retention

ON24 continues to win back customers that churned, with a record high of returns to sign multiyear contracts in the quarter.

Earnings

Second-quarter core platform revenue was above expectations, and ARR per customer reached an all-time high of over $80,000, up 2.1% year-over-year.

Growth

Customers are increasingly turning to ON24’s AI capabilities to enable enhanced personalization and content creation, which management is optimistic can return the company to growth.

Negative Factors

Churn and Downsells

Management noted significant downsells in the quarter, which has been ON24’s Achilles heel, as customers continue to right-size investments post-COVID.

Market Conditions

The evolving impact of tariffs and broader economic headwinds led to more cautious buying behavior late in the quarter, particularly across international and commercial segments.

Profitability

Revenue is still declining and there is no profitability support as ON24 spends more than 40% of revenue on sales and marketing.

ON24 Business Overview & Revenue Model

Company Description

ON24, Inc. provides a cloud-based digital experience platform that enables businesses to convert customer engagement into revenue through interactive webinar, virtual event, and multimedia content experiences worldwide. The company provides ON24 Experience products, such as ON24 Elite, a live and interactive webinar experience; ON24 Breakouts, a live breakout room experience that facilitates networking, collaboration and interactivity between users; ON24 Go Live, a live, interactive video event experience that enables presenters and attendees to engage face-to-face in real-time; ON24 Virtual Confrence, a live and large scale virtual event experience; ON24 Engagement Hub, a rich multimedia content experience; and ON24 Target, a personalized and curated rich multimedia content experience, as well as solutions; ON24 Intelligence, an analytics backbone that captures first-person data to power the insights, benchmarking, reporting, and artificial intelligence and machine learning engine; and ON24 Connect, an ecosystem of third-party application integrations. It also offers professional services, such as experience management, monitoring, premium support, and implementation and other services. The company sells its products through direct sales. It serves technology, financial services, healthcare, industrial and manufacturing, professional services, and business-to-business information service industries. The company was formerly known as NewsDirect, Inc. and changed its name to ON24, Inc. in December 1998. The company was incorporated in 1998 and is headquartered in San Francisco, California.

How the Company Makes Money

ON24 generates revenue through a subscription-based model, where clients pay for access to its platform and services. The company offers various pricing tiers based on the level of service, number of users, and features required by the customer. Additionally, ON24 earns money through professional services, which include training, event management, and support to help customers maximize their use of the platform. Strategic partnerships with other technology providers enhance ON24's offerings and expand its customer reach by integrating with marketing automation, CRM, and other business software tools. This interconnected ecosystem facilitates customer acquisition and retention, contributing to ON24's revenue growth.

ON24 Financial Statement Overview

Summary

ON24 faces challenges with declining revenues and profitability, impacting its income statement. Despite a stable balance sheet with low leverage, the decrease in assets and equity raises concerns. Cash flow improvements in TTM offer some optimism, but historical volatility suggests the need for operational improvements to sustain positive trends.

Income Statement

ON24's income statement shows a consistent decline in revenue over the last few years, with a significant drop from $203.6M in 2021 to $145.1M in TTM. The company has been unable to achieve profitability, as evidenced by negative net income and declining EBIT margins. The gross profit margin remains relatively high at around 74.2% for TTM, but net profit margins are negative due to high operating expenses.

Balance Sheet

ON24 maintains a strong balance sheet with a low debt-to-equity ratio of 0.02. The equity ratio is solid at 62.5%, indicating a healthy capital structure with a significant portion of assets financed by equity. However, the consistent decline in stockholders' equity and total assets suggests potential concerns regarding asset utilization and financial stability.

Cash Flow

The cash flow statement shows a positive turnaround in free cash flow from negative figures in 2023 to a positive $3.4M in TTM. Operating cash flow to net income ratio is also positive, indicating some improvement in cash generation. However, the volatility in cash flows and historical negative free cash flow highlight potential operational challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	143.07M	148.08M	163.71M	190.87M	203.61M	156.94M
Gross Profit	106.47M	110.07M	119.48M	138.09M	156.25M	123.61M
EBITDA	-37.80M	-36.66M	-45.34M	-49.69M	-19.48M	24.89M
Net Income	-36.26M	-42.16M	-51.79M	-58.21M	-24.26M	20.75M
Balance Sheet
Total Assets	235.12M	250.95M	280.30M	425.47M	480.49M	156.72M
Cash, Cash Equivalents and Short-Term Investments	179.56M	182.74M	198.71M	328.12M	382.56M	61.24M
Total Debt	2.04M	3.39M	5.39M	9.24M	3.99M	28.09M
Total Liabilities	85.10M	91.54M	100.08M	117.51M	125.40M	146.52M
Stockholders Equity	150.02M	159.41M	180.22M	307.96M	355.09M	10.20M
Cash Flow
Free Cash Flow	4.58M	2.56M	-14.38M	-24.16M	1.63M	36.51M
Operating Cash Flow	7.26M	4.81M	-12.20M	-20.46M	5.19M	37.54M
Investing Cash Flow	37.22M	-19.45M	162.31M	-88.98M	-219.19M	970.00K
Financing Cash Flow	-22.26M	-23.27M	-124.18M	-28.62M	320.51M	804.00K

ON24 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.23
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONTF, the sentiment is Positive. The current price of 5.23 is above the 20-day moving average (MA) of 5.05, below the 50-day MA of 5.26, and below the 200-day MA of 5.78, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 54.67 is Neutral, neither overbought nor oversold. The STOCH value of 65.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ONTF.

ON24 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$36.26B	7.13	-7.26%	1.97%	7.76%	-8.61%
EB	61 Neutral	$243.56M	―	-11.81%	―	-11.54%	-54.32%
IMMR	58 Neutral	$232.61M	2.75	35.11%	5.18%	3828.94%	129.01%
ONTF	54 Neutral	$213.65M	―	-22.60%	―	-6.88%	15.83%
EGHT	51 Neutral	$252.28M	―	-18.25%	―	-0.73%	67.98%
NUKK	―	$26.61M	0.25		―	―	―
LAW	54 Neutral	$296.36M	―	-36.64%	―	4.05%	-100.64%

ON24 Corporate Events

ON24 Elects New Directors at Annual Meeting

On June 20, 2025, ON24, Inc. held its Annual Meeting of Stockholders, during which Ronald Mitchell and Anthony Zingale were elected as Class I directors to serve until the 2026 annual meeting. Additionally, the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified.

The most recent analyst rating on (ONTF) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on ON24 stock, see the ONTF Stock Forecast page.