What Happened:

Shares of virtual events software company (NYSE:ONTF) jumped 5% in the morning session after The company reported first quarter revenue, gross margin, free cash flow, and earnings per share that surpassed analysts' estimates. Revenue and EPS guidance for the next quarter were roughly inline with Consensus but full year revenue guidance was lowered. Overall, it was a fine quarter coupled with weak outlook, but given the stock's move, it seems that there was some expectation for a reduced full year guide, making for a better-than-feared quarter. After the initial pop the shares cooled down to $8.69, up 1.05% from previous close.

What is the market telling us:

ON24's shares are somewhat volatile and over the last year have had 26 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

ON24 is up 2.48% since the beginning of the year, but at $8.69 per share it is still trading 32.4% below its 52-week high of $12.85 from May 2022. Investors who bought $1,000 worth of ON24's shares at the IPO in February 2021 would now be looking at an investment worth $122.71.

Is now the time to buy ON24? Access our full analysis of the earnings results here, it's free.