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Zoom Competitor ON24 to IPO

By Danny Vena - Feb 3, 2021 at 1:43PM

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The webinar specialist joins a hot market for IPOs.

ON24, a company that offers an interactive webinar and virtual event experiences platform, has offered up further details about its imminent initial public offering (IPO). The platform has been described by one analyst as "Zoom (ZM -1.32%) meets AI."

In a recent regulatory filing with the Securities and Exchange Commission (SEC), ON24 said its business-to-business digital experience platform provides live, interactive webinars that increase engagement among prospective customers, focusing on "converting customer engagement into revenue." ON24 uses an AI-driven system to help fuel ongoing interest, increase personalization, and help convert interested parties into customers. 

A person participating in a video conference with four participants.

Image source: Getty Images.

For the year ended Dec. 31, 2019, ON24 generated revenue of $89.1 million, up 8% year over year, resulting in a net loss of roughly more than $17.5 million. The company made significant financial progress last year, however, due in part to the pandemic. During the nine months ended Sep. 30, 2020, revenue climbed 59% to $103.7 million, while the company erased its red ink, producing net income of $11.2 million, much improved from a loss of $14 million in the prior-year period. 

The company plans to list its shares on the New York Stock Exchange using the ticker "ONTF." ON24 offered 6.3 million shares, while a number of early investors will sell an additional 2.3 million shares, though the company won't receive any proceeds from the sale of those additional shares. ON24 initially planned to price its shares between $45 and $50 per share. Strong demand led the company to price shares at $50, at the high end of its range, raising roughly $316 million, and valuing the company at more than $2.2 billion. 

ON24 also said that funds affiliated with Tiger Global Management have expressed an interest in purchasing $75 million in shares at the IPO price in a private placement. 

Shares are expected to begin trading today.

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