Photo Credit: Gerd Altmann from Pixabay

According to a recent report, the global digital experience platform market is expected to grow at 12% CAGR from $10.11 billion in 2021 to reach $25.03 billion by 2029. San Francisco-based ON24 (NYSE: ONTF) continues to expand its footprint in the market through its product upgrades.

ON24’s Financials

Recently, ON24 announced its second-quarter financials. Revenues for the quarter fell 7% to $48.2 million, ahead of the market’s forecast by 1.82%. Adjusted loss was $0.14 per share, ahead of the market’s estimates of a loss of $0.16 per share.

By segment, Subscription revenues fell 3% to $43.1 million and Professional service revenues fell 33% to $5.2 million.

Among key metrics, ARR increased 2% over the year to $167.8 million at the end of the quarter.

For the third quarter, ON24 expects revenues of $47-$48 million and a loss per share of $0.17-$0.15. For the current year, ON24 expects revenues of $191-$195 and a loss per share of $0.57-$0.51. The market forecast revenues of $47.9 million and a loss of $0.15 per share for the quarter and revenues of $193.15 million and a loss of $0.61 per share for the year.

ON24’s Product Upgrades

Recently, ON24 announced new updates to ON24 Elite Explore, its webinar solution, to make it even easier for marketers to create engaging, intuitive, and impactful experiences for their audiences. The new updates were launched to increase audience engagement, capture more buyer insights, enhance reporting, and provide advanced data integrations with leading CRM and marketing automation solutions. These updates include an enhanced webinar production and design experience with new events, create, overview, and archive pages to make it easier to set up, manage, and search for events. New layouts allow marketers to customize registration and lobby pages, the ability to adjust the appearance of engagement tools, recording tools to import media and stitch clips together to create a cohesive recording, and the ability to enable a cookie consent banner to give registrants and attendees the ability to opt-in to cookies and manage their preferences.

ON24’s Market Opportunity

According to Gartner, 80% of B2B sales interactions will happen through digital channels by 2025. ON24’s focus is on first-party data and insights, which are made actionable through its deep integrations on its digital engagement platform. It experienced huge adoption during Covid. Currently, people are eager to meet in person and it is experiencing a reverse trend. Things look brighter as per the long term Gartner view.

ON24 believes that it has a market opportunity of $44 billion globally. As organizations continue to move toward digital, this opportunity is likely to grow. It is banking on the expansion of its products in its portfolio to help reach this market.

It is already seeing adoption of these new products with its customer base adding multiple products and making multi-year commitments. ON24’s first-party engagement data plays a central role in their go-to-market execution strategy, achieving meaningful results, such as significantly increasing marketing pipeline and increasing their average deal size. The key to its win was the ability to provide seamless integrations with their tech stack and provide a 360-degree view of all their first-party engagement data across every ON24 experience, something collaboration tools were not able to do.

But ON24 is not immune to the current economic conditions. It recently announced cost reduction plans that include reducing headcount by approximately 5% from mid-Q2 levels.

Its stock is trading at $8.94 with a market capitalization of $424.5 million. It reached a 52-week high of $23.59 in August last year and a 52-week low of $8.54 in May.

More By This Author:

Decacorns: Analysis Of Gusto’s Acquisitions
Decacorns: Faire Brings Small Retailers Together To Compete With Big Players
Decacorns: Devoted Health Focuses On Simplifying Medicare Insurance