ON24 (ONTF) AI Stock Analysis

• Market Cap: $228.09M
• Dividend Yield: N/A
• Average Volume (3M): 179.95K
• 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: 83
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 42,475,166
• 10 Day Avg. Volume: 192,242
• 30 Day Avg. Volume: 179,950
• 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: 1.72
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 3.65
• Enterprise Value/Ebitda: -2.45
• 1Y Price Target: $5.00
• Price Target Upside: -5.66% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 50 Neutral
• Price Target: $5.50 ▲(3.77%Upside)

ON24's overall score reflects significant financial performance challenges with declining revenue and profitability. Technical indicators are bearish, and the valuation is under pressure due to negative earnings. However, the company shows resilience with a strong balance sheet and strategic initiatives to enhance shareholder value, including AI innovation and stock repurchase.

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.

Share Repurchase

ON24 announced a new $50M share repurchase program, adding to the nearly $200M already repurchased to date.

Negative Factors

Customer Spending

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

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 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
	EBIT
-48.15M	-50.66M	-54.14M	-59.58M	-23.59M	21.84M
	EBITDA
-41.80M	-36.66M	-45.34M	-49.69M	-19.48M	24.89M
	Net Income Common Stockholders
-40.16M	-42.16M	-51.79M	-58.21M	-24.26M	20.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
180.98M	182.74M	198.71M	328.12M	382.56M	61.24M
	Total Assets
245.78M	250.95M	280.30M	425.47M	480.49M	156.72M
	Total Debt
2.70M	3.39M	5.39M	9.33M	3.99M	28.09M
	Net Debt
-24.09M	-11.54M	-47.82M	-17.66M	-160.95M	-30.16M
	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: Negative
• Last Price: 5.30
• 50DMA: Positive
• 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 5.3 is below the 20-day moving average (MA) of 5.49, above the 50-day MA of 5.12, and below the 200-day MA of 5.95, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 46.42 is Neutral, neither overbought nor oversold. The STOCH value of 16.60 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 *	62 Neutral	$11.91B	9.99	-7.22%	4.96%	7.31%	-8.91%
EB	61 Neutral	$241.64M	―	-9.90%	―	-6.52%	-2.19%
LAW	57 Neutral	$248.70M	―	-33.75%	―	3.84%	-76.01%
IMMR	56 Neutral	$246.21M	2.91	35.11%	2.37%	3828.94%	129.01%
EGHT	51 Neutral	$248.57M	―	-24.28%	―	-2.23%	19.48%
ONTF	50 Neutral	$228.09M	―	-24.47%	―	-8.39%	7.79%
NUKK		$62.02M	0.64		―	―	―

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.