Baird analyst Rob Oliver has revised the price target for On24 (ONTF, Financial), reducing it from $7 to $5. Despite this adjustment, the analyst maintains a Neutral rating on the stock. The revision comes as the company updates its model in the wake of its first-quarter results, amidst a challenging macroeconomic environment that affects the outlook.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for ON24 Inc (ONTF, Financial) is $7.00 with a high estimate of $9.00 and a low estimate of $5.00. The average target implies an upside of 48.31% from the current price of $4.72. More detailed estimate data can be found on the ON24 Inc (ONTF) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, ON24 Inc's (ONTF, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for ON24 Inc (ONTF, Financial) in one year is $6.44, suggesting a upside of 36.44% from the current price of $4.72. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the ON24 Inc (ONTF) Summary page.
ONTF Key Business Developments
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ON24 Inc (ONTF, Financial) launched AI Powered Ace, which accounted for over 20% of growth ARR bookings within a year.
- The percentage of customers using two or more products reached an all-time high of close to 40%.
- Gross retention for 2024 improved to its highest level in the last three years.
- ON24 Inc (ONTF) achieved positive free cash flow of $2.6 million in 2024, compared to negative $14.4 million in 2023.
- The company consistently met and exceeded margin and profitability targets, with non-GAAP gross margin improving from 75% in 2023 to 77% in 2024.
Negative Points
- Q4 revenue from the core platform decreased by 6% year over year.
- Total ARR at the end of Q4 decreased by $2.3 million from Q3, in line with guidance.
- Professional services revenue decreased by 13% year over year.
- Operating loss for Q4 was $0.4 million, compared to operating income of $0.2 million in the same period last year.
- The company experienced two significant downsells in Q4, impacting ARR performance.
