Virtual events software company (NYSE: ONTF) will be reporting results tomorrow afternoon. Here’s what to look for.
ON24 beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $36.68 million, down 6.8% year on year. It was a slower quarter for the company, with full-year EPS guidance missing analysts’ expectations.
Is ON24 a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting ON24’s revenue to decline 9.3% year on year to $34.23 million, improving from the 12.4% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ON24 has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.7% on average.
Looking at ON24’s peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 35.6%, beating analysts’ expectations by 4.1%, and Freshworks reported revenues up 18.9%, topping estimates by 2.1%. Zeta’s stock price was unchanged after the results, while Freshworks was up 2.9%.
Read our full analysis of Zeta’s results here and Freshworks’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 15% on average over the last month. ON24’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $7.33 (compared to the current share price of $4.71).
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