ON24 (ONTF) AI Stock Analysis

• Market Cap: $222.11M
• Dividend Yield: N/A
• Average Volume (3M): 106.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• Revenue Growth: -6.88%
• EPS Growth: 15.83%
• Country: US
• Employees: 437
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 42,306,290
• 10 Day Avg. Volume: 100,301
• 30 Day Avg. Volume: 106,369
• 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: 0.24
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 0.50
• Enterprise Value/Ebitda: -1.42
• 1Y Price Target: $5.00
• Price Target Upside: -8.26% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $5.50 ▲(0.92% Upside)

ON24's overall stock score is primarily influenced by its financial performance challenges, including declining revenues and persistent losses. Technical analysis and valuation present additional concerns, with bearish momentum and a negative P/E ratio. However, the positive sentiment from the earnings call, highlighting strategic initiatives and operational discipline, provides some optimism for future growth.

Positive Factors

AI Innovation

The adoption of AI-powered ACE solutions by a mid-teens percentage of customers indicates growing commitment to AI innovations, which can enhance ON24's competitive edge and drive future growth by offering advanced capabilities to clients.

Enterprise Customer Growth

The increase in high-value enterprise accounts reflects ON24's success in penetrating lucrative market segments, which can lead to sustained revenue growth and strengthen its market position.

Operational Discipline

Achieving positive adjusted EBITDA and free cash flow for six consecutive quarters underscores ON24's operational discipline, enhancing its financial stability and ability to invest in growth initiatives.

Negative Factors

Declining Revenue

A decline in revenue growth indicates challenges in maintaining business momentum, which could affect ON24's ability to scale and compete effectively in the market.

Negative Profit Margins

Negative profit margins highlight significant profitability issues, which may limit ON24's ability to reinvest in its business and sustain long-term growth.

ARR Performance Challenges

Marginally negative ARR performance suggests difficulties in maintaining recurring revenue streams, potentially impacting ON24's financial predictability and growth prospects.

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 faces significant financial challenges, with declining revenues and persistent losses impacting profitability. While the company maintains a strong equity position and low leverage, its ability to generate returns on equity is hampered by ongoing losses. Cash flow shows some improvement, but operational inefficiencies need to be addressed to enhance financial stability and growth prospects.

Income Statement

ON24's income statement reveals a challenging environment with declining revenues and negative profit margins. The TTM data shows a revenue decline of 1.39% and a net profit margin of -25.34%, indicating significant profitability issues. The gross profit margin remains relatively strong at 74.42%, but the negative EBIT and EBITDA margins highlight operational inefficiencies. The company needs to address these challenges to improve financial health.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.0136, indicating minimal leverage. However, the return on equity is negative at -23.09%, reflecting the company's inability to generate profits from its equity base. The equity ratio is not explicitly provided, but the overall stability is supported by a solid equity base despite profitability challenges.

Cash Flow

Cash flow analysis indicates some positive trends, with a free cash flow growth rate of 34.58% in the TTM period. However, the operating cash flow to net income ratio is low at 0.088, suggesting limited cash generation relative to net losses. The free cash flow to net income ratio is more favorable at 0.631, showing some ability to convert earnings into cash, but overall cash flow performance remains constrained by operational losses.

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: Negative
• Last Price: 5.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONTF, the sentiment is Negative. The current price of 5.45 is above the 20-day moving average (MA) of 5.44, below the 50-day MA of 5.58, and below the 200-day MA of 5.49, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 36.04 is Neutral, neither overbought nor oversold. The STOCH value of 10.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ONTF.

ON24 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OPFI	60 Neutral	$844.25M	―	2.48%	―	9.63%	-112.71%
ONTF	54 Neutral	$222.11M	―	-22.60%	―	-6.88%	15.83%
SMRT	53 Neutral	$263.30M	―	-25.48%	―	-24.30%	-181.62%
LAW	52 Neutral	$369.83M	―	-41.00%	―	6.33%	-66.34%
NRDY	48 Neutral	$180.22M	―	-105.81%	―	-10.85%	-15.09%
EB	47 Neutral	$216.16M	―	-11.81%	―	-11.54%	-54.32%

ON24 Corporate Events

On24, Inc. Reports Strong Q2 Earnings with Positive Outlook

The recent earnings call for On24, Inc. painted a generally positive picture, highlighting strong revenue performance and customer growth, alongside positive cash flow and EBITDA. While the company acknowledged some challenges in ARR performance, which was slightly negative, they also noted expectations of a seasonal decline in Q3. Nevertheless, positive developments in AI adoption and enterprise metrics, coupled with strategic initiatives, are setting a solid foundation for future growth.

On24, Inc.’s Stock Concentration Poses Risks to Shareholder Interests and Market Stability

On24, Inc. faces significant business risks due to the concentration of its stock ownership, which is controlled by executive officers, directors, and major shareholders holding over 55% of the outstanding shares as of February 28, 2025. This concentration allows these stockholders to wield considerable influence over corporate decisions, potentially misaligning with the interests of minority shareholders and impacting the stock’s trading price. Additionally, the company’s 2025 Repurchase Program may further limit stock liquidity and increase price volatility. Any shift in this concentrated ownership could unpredictably affect trading volume and stock price stability.

ON24, Inc. Reports Strong Q2 2025 Financial Results

ON24, Inc. is a leading intelligent engagement platform specializing in B2B marketing, sales, and customer engagement solutions, with a strong focus on leveraging AI to enhance customer interactions and drive revenue growth.