ON24, Inc. (NYSE:ONTF) Just Released Its Full-Year Earnings: Here's What Analysts Think

There's been a notable change in appetite for ON24, Inc. (NYSE:ONTF) shares in the week since its yearly report, with the stock down 12% to US$5.56. ON24 reported revenues of US$148m, in line with expectations, but it unfortunately also reported (statutory) losses of US$1.01 per share, which were slightly larger than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for ON24

After the latest results, the consensus from ON24's five analysts is for revenues of US$139.8m in 2025, which would reflect a small 5.6% decline in revenue compared to the last year of performance. Losses are predicted to fall substantially, shrinking 23% to US$0.78. Before this latest report, the consensus had been expecting revenues of US$139.5m and US$0.73 per share in losses. So it's pretty clear consensus is mixed on ON24 after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a modest increase to per-share loss expectations.

The consensus price target held steady at US$7.33, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on ON24, with the most bullish analyst valuing it at US$9.00 and the most bearish at US$6.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 revenue is expected to slow, with a forecast annualised decline of 5.6% by the end of 2025. This indicates a significant reduction from annual growth of 1.1% over the last five 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. It's pretty clear that ON24's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at ON24. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$7.33, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on ON24. Long-term earnings power is much more important than next year's profits. We have forecasts for ON24 going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for ON24 that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.