What To Expect From ON24’s (ONTF) Q3 Earnings

Virtual events software company (NYSE:ONTF) will be reporting earnings tomorrow after market close. Here’s what you need to know.

ON24 beat analysts’ revenue expectations by 3.2% last quarter, reporting revenues of $37.35 million, down 11.3% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ billings estimates.

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 9.2% year on year to $35.62 million, improving from the 17.6% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at $0 per share.

The majority of analysts covering the company have 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 2.3% on average.

Looking at ON24’s peers in the sales and marketing software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. GoDaddy delivered year-on-year revenue growth of 7.3%, meeting analysts’ expectations, and VeriSign reported revenues up 3.8%, in line with consensus estimates. GoDaddy traded up 3.1% following the results while VeriSign was down 2.1%.

Read our full analysis of GoDaddy’s results here and VeriSign’s results here.

There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 7% on average over the last month. ON24 is up 1.2% during the same time and is heading into earnings with an average analyst price target of $7.67 (compared to the current share price of $6.12).

Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.