ON24 (ONTF) AI Stock Analysis

• Market Cap: $243.68M
• Dividend Yield: N/A
• Average Volume (3M): 156.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.05
• 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: 154,140
• 30 Day Avg. Volume: 156,563
• 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: 0.22
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 0.50
• Enterprise Value/Ebitda: -1.42
• 1Y Price Target: $5.00
• Price Target Upside: -13.19% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 56 Neutral
• Price Target: $6.00 ▲(4.17% Upside)

ON24's overall stock score is influenced by significant financial challenges, including declining revenues and persistent losses. However, positive earnings call sentiment and technical indicators showing short-term bullish momentum provide some optimism. Valuation remains a concern due to negative earnings and lack of dividends.

Positive Factors

AI Innovation

The adoption of AI-powered ACE solutions by a mid-teens percentage of customers indicates ON24's commitment to innovation and positions it well for future growth in digital engagement technologies.

Enterprise Customer Growth

The growth in high-value enterprise customers demonstrates ON24's ability to attract and retain large clients, strengthening its market position and revenue potential.

Cash Flow Management

Achieving positive adjusted EBITDA and free cash flow for six consecutive quarters highlights ON24's operational discipline and ability to generate cash, supporting long-term financial stability.

Negative Factors

Declining Revenue

Declining revenues pose a challenge to ON24's profitability and growth prospects, necessitating strategic adjustments to reverse this trend and sustain long-term business health.

Profitability Issues

Negative profit margins indicate significant profitability issues, which can hinder ON24's ability to reinvest in growth and innovation, impacting its competitive position.

ARR Performance

Marginally negative ARR performance reflects challenges in maintaining consistent revenue streams, which could affect ON24's long-term financial stability and growth trajectory.

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 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: Positive
• Last Price: 5.76
• 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 5.76 is above the 20-day moving average (MA) of 5.58, above the 50-day MA of 5.29, and above the 200-day MA of 5.66, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 60.39 is Neutral, neither overbought nor oversold. The STOCH value of 76.52 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
EB	65 Neutral	293.36M	-13.84	-9.15%	―	-11.54%	-54.32%
IMMR	63 Neutral	239.41M	2.83	28.27%	5.14%	3828.94%	129.01%
ONTF	56 Neutral	$243.68M	―	-22.60%	―	-6.88%	15.83%
EGHT	52 Neutral	289.10M	-13.01	-16.57%	―	-0.73%	67.98%
LAW	49 Neutral	394.53M	-6.82	-41.02%	―	4.05%	-100.64%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

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.