ONTF

ON24 Inc

TMT


Presented:02/28/2023
Price:$9.64
Cap:$0.46B
Current Price:$6.22
Cap:$0.26B

Presented

Date02/28/2023
Price$9.64
Market Cap$0.46B
Ent Value$0.10B
P/E RatioN/A
Book ValueN/A
Div Yield0%
Shares O/S48.05M
Ave Daily Vol392,447
Short Int1.65%

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 (ADBE), ON24 Inc. (ONTF), Salesforce Inc. (CRM), ServiceNow Inc. (NOW)

Highlights

The presenter is long shares of enterprise software company ON24 Inc. (ONTF), and thinks it can double from the current share price, with many levers to profitability. The company reported Q4 and FY22 earnings on February 28th and the stock traded down ~19% in the following trading session. ONTF is a 390mm market cap company trading at a 66mm EV & 2.5x sales which should profile as a strategic acquisition target for larger companies such as Adobe or Salesforce, who may be looking for sales and marketing themed product enhancement. Manufacturing companies seeking programs with customer engagement could also be interested in strategic M & A. From a fundamental perspective, the larger digital transformation trends that have accelerated ON24’s business over the past few years are still unfolding, and the company is aligned with several market trends that will provide tailwinds to the business once the macro pressure eases. These include the modernization of sales and marketing and their move to digital channels to drive pipeline and revenue growth; transition of B2B businesses toward self-education and research online before engaging with sales; and the importance of first-party data as compliance and privacy regulations become increasingly restrictive.ON24 competes in the global digital marketing software industry, which is expected to reach $152 billion in 2027. The company estimates that the current total addressable market for its solutions is approximately $42 billion worldwide annually, with the company being in the early stages of this market opportunity.

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Idea Discussion

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