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ON24 Beneish M-Score

: -2.87 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for ON24's Beneish M-Score or its related term are showing as below:

ONTF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.87   Med: -2.75   Max: -2.02
Current: -2.87

During the past 4 years, the highest Beneish M-Score of ON24 was -2.02. The lowest was -2.87. And the median was -2.75.


ON24 Beneish M-Score Historical Data

The historical data trend for ON24's Beneish M-Score 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
Beneish M-Score
- - -2.02 -2.82

ON24 Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - -2.68 -2.82 -2.87

Competitive Comparison

For the Software - Application subindustry, ON24's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score Distribution

For the Software industry and Technology sector, ON24's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where ON24's Beneish M-Score falls into.



ON24 Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of ON24 for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.866+0.528 * 1.0542+0.404 * 0.9686+0.892 * 1.1081+0.115 * 1.2257
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3563+4.679 * -0.0672-0.327 * 1.0906
=-2.87

* 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.

This Year (Mar22) TTM:Last Year (Mar21) TTM:
Total Receivables was $44.3 Mil.
Revenue was 48.492 + 52.034 + 49.362 + 52.118 = $202.0 Mil.
Gross Profit was 35.548 + 39.303 + 37.295 + 40.245 = $152.4 Mil.
Total Current Assets was $427.2 Mil.
Total Assets was $462.1 Mil.
Property, Plant and Equipment(Net PPE) was $15.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.6 Mil.
Selling, General, & Admin. Expense(SGA) was $151.4 Mil.
Total Current Liabilities was $120.1 Mil.
Long-Term Debt & Capital Lease Obligation was $8.1 Mil.
Net Income was -15.479 + -9.509 + -9.4 + -2.517 = $-36.9 Mil.
Non Operating Income was -0.177 + -0.054 + -0.106 + -0.211 = $-0.5 Mil.
Cash Flow from Operations was -6.77 + -4.492 + -0.894 + 6.871 = $-5.3 Mil.
Total Receivables was $46.2 Mil.
Revenue was 50.099 + 53.286 + 42.589 + 36.32 = $182.3 Mil.
Gross Profit was 39.405 + 43.239 + 33.969 + 28.358 = $145.0 Mil.
Total Current Assets was $457.4 Mil.
Total Assets was $487.7 Mil.
Property, Plant and Equipment(Net PPE) was $9.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.6 Mil.
Selling, General, & Admin. Expense(SGA) was $100.7 Mil.
Total Current Liabilities was $120.4 Mil.
Long-Term Debt & Capital Lease Obligation was $3.6 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(44.323 / 202.006) / (46.188 / 182.294)
=0.21941427 / 0.25337093
=0.866

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(144.971 / 182.294) / (152.391 / 202.006)
=0.79525931 / 0.75438848
=1.0542

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (427.209 + 15.427) / 462.128) / (1 - (457.437 + 9.072) / 487.748)
=0.04217879 / 0.04354503
=0.9686

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=202.006 / 182.294
=1.1081

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(3.587 / (3.587 + 9.072)) / (4.639 / (4.639 + 15.427))
=0.28335572 / 0.23118708
=1.2257

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(151.38 / 202.006) / (100.719 / 182.294)
=0.74938368 / 0.55250859
=1.3563

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((8.121 + 120.082) / 462.128) / ((3.641 + 120.428) / 487.748)
=0.27741881 / 0.25437111
=1.0906

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-36.905 - -0.548 - -5.285) / 462.128
=-0.0672

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

ON24 has a M-score of -2.87 suggests that the company is unlikely to be a manipulator.


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

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