ONTF

TMT


Presented:10/11/2021
Price:$19.09
Cap:$0.89B
Current Price:$6.22
Cap:$0.26B

Presented

Date10/11/2021
Price$19.09
Market Cap$0.89B
Ent Value$1.26B
P/E Ratio270.4x
Book Value$7.81
Div Yield0%
Shares O/S46.65M
Ave Daily Vol894,299
Short Int5.55%

Current

Price$6.22
Market Cap$0.26B
ON24, Inc. provides webcasting and video communications solutions. It offers webinar-based marketing solutions that drive demand generation and customer engagement. The firm's products include ON24 Platform, ON24 Webcast Elite, ON24 Engagement Hub, ON24 Target, ON24 Intelligence, ON24 Connect, and ON24 Virtual Conference. The company was founded by Sharat Sharan and William Ryan Bales on January 8, 1998 and is headquartered in San Francisco, CA.

Publicly traded companies mentioned herein: Adobe Inc (ADBE), Dragoneer Growth Opportunities Corp II (DGNS), Five9 Inc (FIVN), Goldman Sachs Group, Inc. (GS), ON24 Inc (ONTF), Salesforce.com Inc (CRM), SAP SE (SAP GR), ServiceNow Inc (NOW)

Highlights

The presenter is long shares of ON24 Inc (ONTF), a provider of cloud-based virtual event and webinar software, thinking the company is attractively valued and misunderstood by investors. ONTF IPO’d in February 2021 at $50 per share and and now trades at ~$19 per share as growth decelerated and management lowered Q2 revenue guidance. While ONTF faces difficult comps in the next two quarters, the company has a stronger customer base than investors appreciate and will benefit from secular tailwinds, leading him to believe the company should grow revenue ~20% over the next few years. Using these assumptions, he targets 80% - 100% upside in ONTF. 

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Idea Discussion

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