SAN FRANCISCO—Steven Vattuone, the Chief Financial Officer of ON24 Inc. (NYSE:ONTF), recently sold 4,383 shares of the company's common stock. The transaction, which took place on November 20, was conducted under a Rule 10b5-1 trading plan. The shares were sold at a weighted average price of $6.2861, with the sale price ranging from $6.24 to $6.36, totaling $27,551.
Following this sale, Vattuone retains ownership of 583,591 shares in the company. The sale was made to cover tax withholding obligations related to the vesting of restricted stock units.
In other recent news, ON24 reported its third quarter 2024 financial results, with revenue surpassing its guidance at $36.3 million. The company also marked its sixth consecutive quarter of positive adjusted EBITDA, with free cash flow standing at $2.1 million. Despite a slight quarter-over-quarter decline in core platform Annual Recurring Revenue (ARR), ON24's AI-powered ACE solution is gaining traction, contributing to new customer acquisitions and retention.
The company has set its sights on achieving full-year profitability by 2025 and expects to return to ARR growth in the same year, driven by AI innovations and a stable customer base. ON24's future outlook includes a projected total revenue between $35.4 million and $36.4 million for Q4, and core platform revenue between $143.6 million and $144.6 million for the full year 2024.
However, the company anticipates a sequential reduction of core ARR in Q4 by 1% to 2%. Despite this, ON24 reported its best performance in three years and remains cautiously optimistic about its growth and profitability in the upcoming year. These are among the recent developments for ON24, as it continues to focus on its strategic initiatives and enterprise markets.
InvestingPro Insights
To provide additional context to Steven Vattuone's recent stock sale, it's worth examining some key financial metrics and insights from InvestingPro for ON24 Inc. (NYSE:ONTF).
According to InvestingPro data, ON24 has a market capitalization of $269.06 million. The company's revenue for the last twelve months as of Q3 2024 stands at $150.74 million, with a revenue growth rate of -11.82% over the same period. This aligns with an InvestingPro Tip indicating that analysts anticipate a sales decline in the current year.
Despite the revenue decline, ON24 maintains a strong balance sheet. An InvestingPro Tip highlights that the company holds more cash than debt, which could provide financial flexibility in challenging times. Additionally, ON24's liquid assets exceed its short-term obligations, suggesting a solid liquidity position.
It's noteworthy that while the company was not profitable over the last twelve months, with an operating income margin of -32.08%, analysts predict that ON24 will be profitable this year, according to another InvestingPro Tip. This positive outlook may explain why management, including CFO Vattuone, continues to hold significant stakes in the company despite occasional sales for tax purposes.
Investors seeking a more comprehensive analysis can access additional insights on InvestingPro, which offers 7 more tips for ON24, providing a deeper understanding of the company's financial health and market position.
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