ON24 (ONTF) AI Stock Analysis

• Market Cap: $248.20M
• Dividend Yield: N/A
• Average Volume (3M): 200.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: -6.23%
• EPS Growth: 28.57%
• Country: US
• Employees: 437
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 42,282,394
• 10 Day Avg. Volume: 174,243
• 30 Day Avg. Volume: 200,742
• PEG Ratio: 0.49
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 1.82
• P/FCF Ratio: 105.17
• Enterprise Value/Market Cap: 0.28
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 0.67
• Enterprise Value/Ebitda: -2.68
• 1Y Price Target: $6.00
• Price Target Upside: 10.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4
• EPS Forecast (FY): 0.04
• Revenue Forecast (FY): $138.17M

• Rating: 59 Neutral
• Price Target: $6.00 ▲(10.09% Upside)

ON24's overall stock score reflects a mix of financial challenges and positive strategic developments. The company's strong technical indicators and positive earnings call sentiment are offset by valuation concerns and ongoing profitability issues. Strategic partnerships and AI initiatives provide a positive outlook, but financial performance remains a significant risk.

Positive Factors

AI Product Expansion

The growth in AI product adoption enhances ON24's competitive edge, driving future revenue through innovative offerings and customer engagement.

Strategic Partnerships

The LinkedIn partnership strengthens ON24's market position, providing a platform for expanded reach and integration, which can boost long-term growth.

Cash Flow Improvement

Consistent positive cash flow indicates strong financial management, providing resources for reinvestment and supporting operational stability.

Negative Factors

Declining Revenue

Declining revenue suggests challenges in maintaining market share and customer retention, potentially impacting long-term financial health.

Profitability Issues

Ongoing profitability issues highlight operational inefficiencies, which may hinder the company's ability to sustain growth and investor confidence.

ARR Performance Challenges

Challenges in ARR growth indicate potential difficulties in acquiring new customers or expanding existing accounts, affecting future revenue streams.

ON24 Business Overview & Revenue Model

Company Description

ON24 (ONTF) is a leading digital engagement platform that specializes in providing businesses with tools to create and manage webinars, virtual events, and other digital experiences. The company primarily operates within the technology sector, focusing on solutions that enhance customer engagement, lead generation, and data analytics for marketing and sales teams. ON24's core products include its webinar platform, digital experience solutions, and analytics tools that help organizations connect with their audiences and drive meaningful interactions.

How the Company Makes Money

ON24 generates revenue primarily through subscription-based models, where clients pay for access to its webinar and digital engagement platforms. The company offers various pricing tiers based on the features and volume of usage, which can include options for large-scale events and additional analytics capabilities. Key revenue streams include subscription fees from existing customers and new client acquisitions. Additionally, ON24 may engage in partnerships with other technology and marketing firms, enhancing its service offerings and expanding its customer base, which in turn contributes to its earnings. The company also benefits from upselling and cross-selling opportunities within its existing client accounts.

ON24 Financial Statement Overview

Summary

ON24 is facing financial challenges with declining revenues and persistent losses. Despite a strong gross profit margin and low leverage, the negative net profit margin and return on equity highlight profitability issues. Cash flow improvements are a positive sign, but operational inefficiencies need addressing for sustainable growth.

Income Statement

ON24's income statement reveals a challenging financial situation. The company has experienced declining revenues over the past few years, with a negative revenue growth rate of -1.20% in the TTM period. Gross profit margins remain relatively strong at around 74%, but the net profit margin is negative, indicating ongoing losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies and challenges in achieving profitability.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.0136 in the TTM period, indicating low leverage and a conservative capital structure. However, the return on equity is negative, suggesting that the company is not generating sufficient returns on shareholders' equity. The equity ratio is stable, but the company's overall financial health is impacted by its inability to generate profits.

Cash Flow

Cash flow analysis indicates some positive trends, with a significant improvement in free cash flow growth of 44.07% in the TTM period. However, the operating cash flow to net income ratio is low, suggesting limited cash generation from operations relative to net losses. The free cash flow to net income ratio is positive, indicating some ability to generate cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	141.35M	148.08M	163.71M	190.87M	203.61M	156.94M
Gross Profit	105.35M	110.07M	117.44M	138.09M	156.25M	123.61M
EBITDA	-26.20M	-36.66M	-45.34M	-49.69M	-19.48M	24.89M
Net Income	-31.23M	-42.16M	-51.79M	-58.21M	-24.26M	20.75M
Balance Sheet
Total Assets	224.79M	250.95M	280.30M	425.47M	480.49M	156.72M
Cash, Cash Equivalents and Short-Term Investments	175.17M	182.74M	198.71M	328.12M	382.56M	61.24M
Total Debt	1.37M	3.39M	5.39M	9.24M	7.41M	28.09M
Total Liabilities	80.46M	91.54M	100.08M	117.51M	125.40M	146.52M
Stockholders Equity	144.32M	159.41M	180.22M	307.96M	355.09M	10.20M
Cash Flow
Free Cash Flow	6.60M	2.56M	-14.38M	-24.16M	1.63M	36.51M
Operating Cash Flow	9.50M	4.81M	-12.20M	-20.46M	5.19M	37.54M
Investing Cash Flow	48.52M	-19.45M	162.31M	-88.98M	-219.19M	970.00K
Financing Cash Flow	-21.40M	-23.27M	-124.18M	-28.62M	320.51M	804.00K

ON24 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 5.45 is below the 20-day moving average (MA) of 5.73, below the 50-day MA of 5.55, and above the 200-day MA of 5.37, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 50.31 is Neutral, neither overbought nor oversold. The STOCH value of 24.59 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
OPFI	67 Neutral	$927.53M	-13.88	9.19%	―	9.63%	-112.71%
EB	64 Neutral	$435.61M	-20.17	-11.81%	―	-11.54%	-54.32%
SMRT	62 Neutral	$393.54M	-5.94	-25.48%	―	-24.30%	-181.62%
LAW	62 Neutral	$521.18M	-8.43	-41.00%	―	6.33%	-66.34%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONTF	59 Neutral	$248.20M	―	-20.20%	―	-6.23%	28.57%
NRDY	48 Neutral	$213.56M	-3.41	-120.79%	―	-9.86%	0.87%

ON24 Corporate Events

ON24 Reports Q3 2025 Financial Results and Strategic Progress

ON24 announced its financial results for the third quarter of 2025, reporting a total revenue of $34.6 million and a significant improvement in operating and net losses compared to the previous year. The company highlighted its strategic progress in AI-driven initiatives, collaboration with LinkedIn for event marketing, and achieving positive cash flows for the seventh consecutive quarter, reinforcing its leadership in the industry.