ON24 (ONTF) AI Stock Analysis

• Market Cap: $228.52M
• Dividend Yield: N/A
• Average Volume (3M): 122.28K
• 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: 77
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 42,475,166
• 10 Day Avg. Volume: 170,859
• 30 Day Avg. Volume: 122,283
• PEG Ratio: -1.92
• Price to Book (P/B): 1.47
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 90.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $5.33
• Price Target Upside: -2.38% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 55 Neutral
• Price Target: $5.50 ▲( 0.73% Upside)

ON24's overall stock score is primarily impacted by its significant financial performance challenges, including declining revenue and profitability. The stable balance sheet and recent cash flow improvements provide some optimism, but operational volatility remains a risk. Technical indicators show mixed signals, and valuation metrics are weak due to negative earnings. The earnings call presents both opportunities and challenges, with some positive developments offset by revenue and ARR declines.

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 Acquisition

The company is seeing notable improvements in win-backs from boomerang customers, new customer acquisition, and expansion.

Negative Factors

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.

Revenue Decline

Revenue is still declining and there is no profitability support, prompting analysts to look for further proof of sustained top-line stabilization and a return to growth.

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 subscriptions to its digital experience platform. The company offers a range of pricing plans based on the number of users, the features required, and the scale of the virtual events. These subscriptions typically involve multi-year agreements, providing ON24 with a recurring revenue stream. Additionally, ON24 may earn revenue from professional services offered to help clients optimize their use of the platform and from strategic partnerships that enhance the platform's capabilities and reach.

ON24 Financial Statement Overview

Summary

ON24 demonstrates a strong balance sheet with low leverage, but the company is struggling with profitability as reflected in its income statement. The improvement in cash flow is a positive development, though the company needs to address its revenue and profit decline to enhance financial stability and performance.

Income Statement

ON24's revenue has been declining, with a notable decrease from 2023 to TTM (Trailing-Twelve-Months). The gross profit margin remains relatively stable but the net profit margin is negative due to sustained net losses. The company faces challenges in achieving EBIT and EBITDA profitability, indicating ongoing operational inefficiencies.

Balance Sheet

ON24 maintains a strong equity position with a low debt-to-equity ratio, indicating a conservative use of leverage. However, the return on equity is negative due to ongoing net losses. The equity ratio is robust, reflecting a strong asset base relative to liabilities.

Cash Flow

The company has improved its free cash flow position recently, but the growth is from a low base. Operating cash flow has turned positive in the TTM, which is a positive sign, but the free cash flow to net income ratio remains weak due to persistent losses.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
148.08M	163.71M	190.87M	203.61M	156.94M
	Gross Profit
110.07M	119.48M	138.09M	156.25M	123.61M
	EBIT
-50.66M	-54.14M	-59.58M	-23.59M	21.84M
	EBITDA
-36.66M	-45.34M	-49.69M	-19.48M	24.89M
	Net Income Common Stockholders
-42.16M	-51.79M	-58.21M	-24.26M	20.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
182.74M	198.71M	328.12M	382.56M	61.24M
	Total Assets
250.95M	280.30M	425.47M	480.49M	156.72M
	Total Debt
3.39M	5.39M	9.33M	3.99M	28.09M
	Net Debt
-11.54M	-47.82M	-17.66M	-160.95M	-30.16M
	Total Liabilities
91.54M	100.08M	117.51M	125.40M	146.52M
	Stockholders Equity
159.41M	180.22M	307.96M	355.09M	10.20M
Cash Flow		Free Cash Flow
2.56M	-14.38M	-24.16M	1.63M	36.51M
	Operating Cash Flow
4.81M	-12.20M	-20.46M	5.19M	37.54M
	Investing Cash Flow
-19.45M	162.31M	-88.98M	-219.19M	970.00K
	Financing Cash Flow
-23.27M	-124.18M	-28.62M	320.51M	804.00K

ON24 Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 5.46
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ONTF, the sentiment is Neutral. The current price of 5.46 is above the 20-day moving average (MA) of 5.02, above the 50-day MA of 5.06, and below the 200-day MA of 6.02, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 63.62 is Neutral, neither overbought nor oversold. The STOCH value of 84.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ONTF.

ON24 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$11.29B	10.07	-7.05%	2.96%	7.47%	-10.75%
LAW	60 Neutral	$238.97M	―	-33.75%	―	3.84%	-76.01%
EB	58 Neutral	$217.67M	―	-9.90%	―	-6.52%	-2.19%
IMMR	56 Neutral	$235.85M	2.79	35.11%	1.22%	3828.94%	129.01%
ONTF	55 Neutral	$228.52M	―	-24.47%	―	-8.39%	7.79%
EGHT	51 Neutral	$219.93M	―	-24.28%	―	-2.23%	19.48%
NUKK		$105.64M	―		―	―	―

ON24 Corporate Events

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.