Stock Story -
Virtual events software company (NYSE:ONTF) will be reporting results tomorrow after market close. Here's what investors should know.
ON24 (NYSE:ONTF) beat analysts' revenue expectations by 2% last quarter, reporting revenues of $37.73 million, down 12.4% year on year. It was a mixed quarter for the company, with a solid beat of analysts' billings estimates but a decline in its gross margin.
Is ON24 a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting ON24's revenue to decline 14% year on year to $36.2 million, a further deceleration from the 12.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 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 2.1% on average.
Looking at ON24's peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 32.6%, beating analysts' expectations by 7.2%, and Freshworks (NASDAQ:FRSH) reported revenues up 20%, topping estimates by 3%. Zeta traded up 11.9% following the results while Freshworks was down 5.8%.
Read the full analysis of Zeta's and Freshworks's results on StockStory.
Growth stocks have seen elevated volatility as investors debate the Fed's monetary policy, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share prices down 3.7% on average over the last month. ON24 is down 1.7% during the same time and is heading into earnings with an average analyst price target of $8.3 (compared to the current share price of $5.8).
