Financial News

ON24 (ONTF) Q3 Earnings Report Preview: What To Look For

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Digital engagement platform ON24 (NYSE: ONTF) will be reporting earnings this Monday after market hours. Here’s what to look for.

ON24 beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $35.33 million, down 5.4% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

Is ON24 a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting ON24’s revenue to decline 6.8% year on year to $33.85 million, in line with the 7.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.

ON24 Total Revenue

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 2.8% 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. AppLovin delivered year-on-year revenue growth of 17.3%, beating analysts’ expectations by 4.5%, and Integral Ad Science reported revenues up 15.6%, topping estimates by 3.4%. AppLovin’s stock price was unchanged after the resultsand Integral Ad Science’s price followed a similar reaction.

Read our full analysis of AppLovin’s results here and Integral Ad Science’s results here.

Investors in the sales and marketing software segment have had steady hands going into earnings, with share prices flat over the last month. ON24 is down 7.3% during the same time and is heading into earnings with an average analyst price target of $5 (compared to the current share price of $4.94).

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