Virtual events software company (NYSE:ONTF) will be announcing earnings results tomorrow afternoon. Here's what to look for.

ON24 beat analysts' revenue expectations by 5.6% last quarter, reporting revenues of $39.34 million, down 15.5% year on year. It was a strong quarter for the company, with an impressive beat of analysts' billings estimates.

Is ON24 a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting ON24's revenue to decline 14.1% year on year to $37 million, a further deceleration from the 11.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ON24 has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.1% on average.

Looking at ON24's peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Sprout Social delivered year-on-year revenue growth of 28.7%, meeting analysts' expectations, and VeriSign reported revenues up 5.5%, in line with consensus estimates. Sprout Social traded down 40.1% following the results while VeriSign was also down 4%.

Read our full analysis of Sprout Social's results here and VeriSign's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share prices down 3.1% on average over the last month. ON24 is down 6.6% during the same time and is heading into earnings with an average analyst price target of $8.7 (compared to the current share price of $6.61).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.