8 Best Video Conferencing Stocks To Buy According to Analysts

5. ON24, Inc. (NYSE:ONTF) 

Number of Hedge Fund Holders: 16

Analysts Upside Potential: 14.38%

ON24, Inc. (NYSE:ONTF) is a company that specializes in providing a cloud-based intelligent engagement platform designed to enhance how businesses interact with their audiences through digital experiences. Their primary focus is on helping sales and marketing teams engage potential customers effectively by utilizing data-driven insights and personalized content.

The core offering of the company is its Intelligent Engagement Platform, which integrates various tools for webinars, virtual events, and content marketing. The platform leverages AI technology to provide insights that help businesses understand their audience better and optimize their marketing strategies. Some of the key offerings of the platform include ON24 Elite, which is a live, interactive webinar experience that allows for real-time engagement between presenters and attendees, and ON24 Forum, which facilitates video-to-video interactions, enhancing the connection between speakers and the audience.

The company reported third-quarter results for fiscal 2024 on November 7th. Revenue for the quarter came in at $36.33 million, which was a 7.39% decrease year-over-year. Although the revenue decreased, however, it was above analysts’ expectations by $0.7 million.

Management noted that the company exceeded profitability targets for the sixth consecutive quarter, indicating consistent financial improvement. Moreover, the quarter also marked the 3rd consecutive quarter of positive free cash flow generation, with net cash from operating activities at $0.3 million.

Moreover, there was a high single-digit year-over-year improvement in gross retention rates resulting in total ARR reaching $132.2 million. Looking ahead management of ON24, Inc. (NYSE:ONTF) expects revenue between $35.4 million and $36.4 million for the fourth quarter with substantial revenue coming from its core platform.