ON24 (ONTF) AI Stock Analysis

• Market Cap: $231.91M
• Dividend Yield: N/A
• Average Volume (3M): 227.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -8.39%
• EPS Growth: 7.79%
• Country: US
• Employees: 437
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 42,475,166
• 10 Day Avg. Volume: 319,198
• 30 Day Avg. Volume: 227,762
• PEG Ratio: -0.05
• Price to Book (P/B): 1.33
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.96
• Enterprise Value/Market Cap: 1.69
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 3.65
• Enterprise Value/Ebitda: -2.45
• 1Y Price Target: $5.00
• Price Target Upside: -8.42% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• Price Target: $5.50 ▲(0.73%Upside)

ON24's overall stock score reflects significant challenges with declining revenues and profitability, despite a strong balance sheet and recent positive cash flow trends. Technical indicators suggest stabilization, but valuation remains unattractive. The earnings call highlighted important operational improvements, yet concerns about revenue and ARR persist.

Positive Factors

AI Initiatives

AI initiatives continue to play a key role in driving growth, as customers increasingly turn to the solution to enable enhanced personalization and content creation, ultimately boosting engagement.

Customer Retention

ON24 continues to win back customers that churned, with many returning to sign multiyear contracts.

Enterprise Performance

ON24 delivered its best enterprise new logo performance and saw the highest dollar value of ARR from win-back customers in five years.

Negative Factors

Economic Headwinds

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.

Macro Uncertainty

Management stated that it is already seeing an impact from macro uncertainty and has lowered its full-year guidance to bake in a layer of conservatism given the lack of visibility.

Spending Rationalization

Risks include continued spending rationalization from existing customers, greater churn, limited profitability, competition, and an evolving market.

ON24 Business Overview & Revenue Model

Company Description

ON24, Inc. (ONTF) is a leading cloud-based digital experience platform that helps businesses connect with their audiences, generate leads, and drive revenue through interactive webinars, virtual events, and multimedia content experiences. The company primarily operates within the technology and marketing sectors, providing solutions that enable organizations to create data-rich, engaging digital experiences tailored to enhance customer engagement and measure content performance in real-time.

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's financial performance is challenged with declining revenues and negative profitability. A strong balance sheet with low leverage and recent positive cash flow are positives, but historical volatility and asset declines pose concerns.

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	145.09M	148.08M	163.71M	190.87M	203.61M	156.94M
Gross Profit	107.58M	110.07M	119.48M	138.09M	156.25M	123.61M
EBITDA	-41.80M	-36.66M	-45.34M	-49.69M	-19.48M	24.89M
Net Income	-40.16M	-42.16M	-51.79M	-58.21M	-24.26M	20.75M
Balance Sheet
Total Assets	245.78M	250.95M	280.30M	425.47M	480.49M	156.72M
Cash, Cash Equivalents and Short-Term Investments	180.98M	182.74M	198.71M	328.12M	382.56M	61.24M
Total Debt	2.70M	3.39M	5.39M	9.33M	3.99M	28.09M
Total Liabilities	92.05M	91.54M	100.08M	117.51M	125.40M	146.52M
Stockholders Equity	153.73M	159.41M	180.22M	307.96M	355.09M	10.20M
Cash Flow
Free Cash Flow	3.40M	2.56M	-14.38M	-24.16M	1.63M	36.51M
Operating Cash Flow	6.08M	4.81M	-12.20M	-20.46M	5.19M	37.54M
Investing Cash Flow	25.41M	-19.45M	162.31M	-88.98M	-219.19M	970.00K
Financing Cash Flow	-22.89M	-23.27M	-124.18M	-28.62M	320.51M	804.00K

ON24 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 5.46 is above the 20-day moving average (MA) of 5.44, above the 50-day MA of 5.22, and below the 200-day MA of 5.93, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 53.74 is Neutral, neither overbought nor oversold. The STOCH value of 68.57 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
IMMR	65 Neutral	$256.26M	3.03	35.11%	2.28%	3828.94%	129.01%
EGHT	63 Neutral	$275.59M	―	-24.28%	―	-1.87%	61.90%
Sector *	63 Neutral	$33.22B	5.73	-11.55%	1.90%	5.54%	-20.14%
EB	61 Neutral	$258.90M	―	-9.90%	―	-6.52%	-2.19%
ONTF	58 Neutral	$231.91M	―	-24.47%	―	-8.39%	7.79%
LAW	53 Neutral	$268.16M	―	-33.75%	―	3.84%	-76.01%

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.

ON24 Announces $50 Million Share Repurchase Program

On May 7, 2025, ON24 announced a new $50 million share repurchase program, highlighting its belief that the business is undervalued. The company reported financial results for the first quarter of 2025, achieving a total revenue of $34.7 million and marking its fifth consecutive quarter of positive operating and free cash flow. ON24 continues to focus on profitable growth, with improvements in gross retention rates and customer winbacks. The company also introduced new AI-powered capabilities and launched a marketing campaign to reinforce its market position.