ON24 (ONTF) AI Stock Analysis

• Market Cap: $235.94M
• Dividend Yield: N/A
• Average Volume (3M): 170.80K
• 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: 268,482
• 30 Day Avg. Volume: 170,799
• 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: 0.30
• 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: 54 Neutral
• Price Target: $6.00 ▲(10.09% Upside)

ON24's overall stock score reflects financial challenges with declining revenues and profitability issues, despite strong gross margins and low leverage. Technical indicators are mixed, and valuation remains a concern with a negative P/E ratio. However, positive earnings call guidance and strategic growth initiatives provide some optimism for future performance.

Positive Factors

AI Product Expansion

The growth in AI product adoption signifies ON24's ability to innovate and meet evolving customer needs, enhancing its competitive edge.

Major Partnership with LinkedIn

The LinkedIn partnership enhances ON24's digital event marketing capabilities, potentially expanding its customer base and market reach.

Positive Cash Flow

Consistent positive cash flow indicates strong cash management and operational efficiency, supporting long-term financial stability.

Negative Factors

Declining Revenue

Ongoing revenue decline challenges ON24's growth prospects and may impact its ability to invest in future opportunities.

Negative Profit Margins

Negative profit margins highlight profitability issues, which could hinder ON24's ability to sustain operations without external funding.

Pressure in Life Sciences Vertical

Macroeconomic pressures in key verticals like life sciences may limit ON24's growth in these sectors, affecting overall revenue.

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 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: 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 5.45 is above the 20-day moving average (MA) of 5.38, below the 50-day MA of 5.53, and above the 200-day MA of 5.39, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.38 is Neutral, neither overbought nor oversold. The STOCH value of 64.93 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	62 Neutral	$842.90M	―	9.19%	―	9.63%	-112.71%
SMRT	62 Neutral	$329.21M	―	-25.48%	―	-24.30%	-181.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ONTF	54 Neutral	$235.94M	―	-20.20%	―	-6.23%	28.57%
EB	54 Neutral	$253.80M	―	-11.81%	―	-11.54%	-54.32%
LAW	53 Neutral	$369.83M	―	-41.00%	―	6.33%	-66.34%
NRDY	48 Neutral	$234.17M	―	-120.79%	―	-9.86%	0.87%

ON24 Corporate Events

ON24’s Earnings Call: Strategic Growth Amid Challenges

ON24’s Earnings Call Highlights Strategic Growth and Challenges

ON24 Reports Strong Q3 2025 Financial Results

ON24, Inc. is a prominent player in the B2B marketing sector, offering an intelligent engagement platform that aids marketing, sales, and customer-facing teams in enhancing their outreach and engagement strategies. The company has recently announced its financial results for the third quarter of 2025, showcasing a total revenue of $34.6 million and marking the seventh consecutive quarter of positive operating and free cash flow. ON24 is also raising its full-year 2025 revenue and bottom-line guidance, highlighting its strategic advancements, including a new collaboration with LinkedIn aimed at revolutionizing event marketing.

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.

The most recent analyst rating on (ONTF) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on ON24 stock, see the ONTF Stock Forecast page.

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.