ON24, Inc. (NYSE:ONTF) Analysts Just Slashed This Year's Revenue Estimates By 13%

One thing we could say about the analysts on ON24, Inc. (NYSE:ONTF) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the consensus from seven analysts covering ON24 is for revenues of US$167m in 2023, implying a chunky 13% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$191m of revenue in 2023. The consensus view seems to have become more pessimistic on ON24, noting the substantial drop in revenue estimates in this update.

See our latest analysis for ON24

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 13% by the end of 2023. This indicates a significant reduction from annual growth of 19% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 12% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - ON24 is expected to lag the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for ON24 this year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of ON24 going forwards.

Looking to learn more? We have estimates for ON24 from its seven analysts out until 2024, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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