Webcasting firm ON24 Inc. found strong support on its debut on the New York Stock Exchange today as its share price popped almost 42%.
ON24 went into its IPO with its shares priced at $50 per share with an offering of 8.56 million shares of common stock. Its share price hit a high of $79.40 before closing regular trading at $70.82.
Founded in 1998, ON24 offers webinar-based marketing solutions that are designed to make it easy to create, scale and personalize engaging experiences that drive measurable business growth. Along with support for webinars, the company also helps conduct virtual events and multimedia experiences along with a range of intelligence and support services.
In the age of COVID-19, ON24 has seen its business surge. The company booked a 59% jump in revenue, to $103.7 million, in the first nine months of 2020. The company is also profitable, with net income of $11.2 million over the same period.
“We believe the pandemic has fundamentally (and serendipitously) benefited ON24’s product-market fit given the trends in internet-based B2B selling with virtual conferences, webinars and adoption of video conferences,” MKM Partners analyst Rohit Kulkarni said in a note to investors.
The obvious comparison to ON24 is Zoom, but Chief Executive Officer Sharat Sharan told MarketWatch that although Zoom is a “great company,” the difference is that ON24 is “purpose-built for marketing and engagement.”
ON24 is also notable given its age — 23 years old. It last raised venture capital funding in 2016.
ON24 was not alone in going public today. Telus International (Cda) Inc., a digital consulting business, was spun off from Canadian telco Telus Corp., dual-listing on the NYSE and Toronto Stock Exchange.
Telus International floated at $25 per share and rose as high at $33.10 before closing regular trading at $30.40, up 22%. The company offers a range of digital services including app development, fraud protection, social media monitoring, contact services and chatbots, with more than 600 clients including Google LLC, Uber Technologies Inc. and TikTok.
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