GURUFOCUS.COM » STOCK LIST » USA » NYSE » ON24 Inc (NYSE:ONTF) » Definitions » Gross Margin %
Switch to:

ON24 Gross Margin %

: 72.43% (As of Jun. 2022)
View and export this data going back to 2021. Start your Free Trial

Gross Margin % is calculated as gross profit divided by its revenue. ON24's Gross Profit for the three months ended in Jun. 2022 was $34.9 Mil. ON24's Revenue for the three months ended in Jun. 2022 was $48.2 Mil. Therefore, ON24's Gross Margin % for the quarter that ended in Jun. 2022 was 72.43%.


The historical rank and industry rank for ON24's Gross Margin % or its related term are showing as below:

ONTF' s Gross Margin % Range Over the Past 10 Years
Min: 69.55   Med: 73.29   Max: 78.76
Current: 74.24


During the past 4 years, the highest Gross Margin % of ON24 was 78.76%. The lowest was 69.55%. And the median was 73.29%.

ONTF's Gross Margin % is ranked better than
80.14% of 2492 companies
in the Software industry
Industry Median: 45.54 vs ONTF: 74.24

ON24 had a gross margin of 72.43% for the quarter that ended in Jun. 2022 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for ON24 was 0.00% per year.


ON24 Gross Margin % Historical Data

The historical data trend for ON24's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

ON24 Annual Data
Trend Dec18 Dec19 Dec20 Dec21
Gross Margin %
69.83 69.55 78.76 76.74

ON24 Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 77.22 75.55 75.53 73.31 72.43

Competitive Comparison

For the Software - Application subindustry, ON24's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

ON24 Gross Margin % Distribution

For the Software industry and Technology sector, ON24's Gross Margin % distribution charts can be found below:

* The bar in red indicates where ON24's Gross Margin % falls into.



ON24 Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

ON24's Gross Margin for the fiscal year that ended in Dec. 2021 is calculated as

Gross Margin % (A: Dec. 2021 )=Gross Profit (A: Dec. 2021 ) / Revenue (A: Dec. 2021 )
=156.2 / 203.613
=(Revenue - Cost of Goods Sold) / Revenue
=(203.613 - 47.365) / 203.613
=76.74 %

ON24's Gross Margin for the quarter that ended in Jun. 2022 is calculated as


Gross Margin % (Q: Jun. 2022 )=Gross Profit (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=34.9 / 48.238
=(Revenue - Cost of Goods Sold) / Revenue
=(48.238 - 13.301) / 48.238
=72.43 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


ON24  (NYSE:ONTF) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

ON24 had a gross margin of 72.43% for the quarter that ended in Jun. 2022 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


ON24 Gross Margin % Related Terms

Thank you for viewing the detailed overview of ON24's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


ON24 Business Description

ON24 logo
Traded in Other Exchanges
N/A
Address
50 Beale Street, 8th Floor, San Francisco, CA, USA, 94105
ON24 Inc provides a cloud-based digital experience platform that enables businesses to convert customer engagement into revenue through interactive webinar experiences, virtual event experiences, and multimedia content experiences. The company derives revenue from subscription agreements with customers for accessing the platform and related services. Geographically, it derives a majority of revenue from the United States.
Executives
Arora Anil director C/O YODLEE, INC., 3600 BRIDGE PARKWAY 2ND FLOOR REDWOOD CITY CA 94065
Zingale Anthony director C/O SERVICEMAX, INC. 4450 ROSEWOOD DR., #200 PLEASANTON CA 94588
Presidio Management Group Vii L L C 10 percent owner 2735 SAND HILL ROAD MENLO PARK CA 94025
Federman Irwin director, 10 percent owner 2735 SAND HILL ROAD MENLO PARK CA 94025
Tansey Casey M 10 percent owner 2735 SAND HILL ROAD MENLO PARK CA 94025
Usvp Entrepreneur Partners Vii B L P 10 percent owner 2735 SAND HILL ROAD MENLO PARK CA 94025
Usvp Entrepreneur Partners Vii A L P 10 percent owner 2735 SAND HILL ROAD MENLO PARK CA 94025
2180 Associates Fund Vii L P 10 percent owner 2735 SAND HILL ROAD MENLO PARK CA 94025
Us Venture Partners Vii L P 10 percent owner 2735 SAND HILL ROAD MENLO PARK CA 94025
Goldman Sachs Group Inc 10 percent owner 200 WEST STREET NEW YORK NY 10282
Gssg Holdings Llc 10 percent owner 200 WEST STREET NEW YORK NY 10282
Special Situations Investing Group Ii, Llc 10 percent owner 200 WEST STREET NEW YORK NY 10282
Goldman Sachs & Co. Llc 10 percent owner 200 WEST STREET NEW YORK NY 10282
Rho Ventures Iii Holdings Llc 10 percent owner 152 W. 57TH STREET 23RD FLOOR NEW YORK NY 10019
Canaan Equity Aggregator Llc 10 percent owner 1624 MARKET STREET, SUITE 226 PMB 29471 DENVER CO 80202

ON24 Headlines

From GuruFocus

Other Sources

Why On24 Stock Just Crashed 29%

By Fool 2021-08-11

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)