Group 1 - Investors have reacted negatively to earnings reports this season, leading to significant declines in stock prices for companies with poor outlooks [1] - OneStream, a finance software company, has seen its shares drop sharply despite reporting strong performance [1] - Gary Alexander, an analyst with extensive experience in technology and startups, has been contributing insights on industry trends since 2017 [1]

Earnings Q4 2024 February 2025 Disclaimer This presentation is made by OneStream, Inc. (the "Company," "we," "our" or "we") and contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this presentation may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "int ...

Financial Data and Key Metrics Changes - OneStream reported a 31% year-over-year revenue growth for 2024, reaching $489 million, with subscription revenue growing 41% to $428 million [13][47] - The company achieved a free cash flow of $59 million for the year, representing a 12% free cash flow margin [54] - In Q4, total revenue grew 29% year-over-year to $132 million, with subscription revenue increasing 35% to $119 million [48][49] - The company ended 2024 with an ARR of $568 million and a total RPO exceeding $1 billion [47][51] Business Line Data and Key Metrics Changes - Subscription revenue was the primary driver of growth, with a 41% increase year-over-year [13] - Professional Services and Other revenue remained stable at $7 million in Q4, as the company transitions more implementations to partners [49] - The international revenue grew 38% year-over-year to $155 million, with Q4 international revenue increasing 49% to $46 million [47][50] Market Data and Key Metrics Changes - The strengthening of the U.S. dollar by approximately 6% negatively impacted some financial metrics by about 2% [46][47] - The company reported a 98% gross retention rate, indicating strong customer loyalty and satisfaction [14][42] Company Strategy and Development Direction - OneStream is focused on digital transformation in finance, emphasizing the need for a unified cloud-based platform [18][20] - The company is expanding its Finance AI portfolio and introducing new products like CPM Express and ESG Reporting solutions [21][25] - The strategic partnership with Microsoft is seen as a key growth driver, enhancing both technological and go-to-market capabilities [120][122] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about demand for OneStream's solutions despite macroeconomic uncertainties and geopolitical challenges [11][12] - The company anticipates strong subscription revenue growth and continued innovation in 2025, with guidance for total revenue between $583 million and $587 million [58][59] - Management highlighted the importance of maintaining high customer retention rates and leveraging existing customer relationships for future growth [70][73] Other Important Information - OneStream received FedRAMP High authorization, allowing it to work with various government agencies, which is expected to unlock additional opportunities [31][139] - The company introduced 12 new innovations in 2024, enhancing the value proposition for customers [14][16] Q&A Session Summary Question: Demand for modern consolidation and planning solutions - Management noted that the realization of the need for reliable data and simplified ecosystems is driving demand for their core solutions [66][70] Question: Impact of FX and other non-currency headwinds - Management clarified that FX impacts were significant, but general uncertainty in the market also contributed to elongated sales cycles [78][90] Question: Changes in pricing and packaging - Management explained that the new pricing and packaging structure is designed to facilitate the introduction of new products and improve customer purchasing experiences [81][84] Question: Federal government opportunity post-FedRAMP High authorization - Management expressed confidence in the potential for growth in the federal sector, despite existing uncertainties [109][138] Question: Attach rate for Sensible ML Solutions - Management indicated excitement about the increasing attach rate for their AI solutions, reflecting strong market interest [144]

Financial Performance - Total revenue for Q4 2024 was $132.5 million, representing a 29% year-over-year increase[4] - Subscription revenue for Q4 2024 reached $118.6 million, an increase of 35% year-over-year[4] - For the fiscal year 2024, total revenue was $489.4 million, a 31% increase year-over-year[4] - Subscription revenue for the fiscal year 2024 was $428.2 million, reflecting a 41% year-over-year increase[4] - Total revenue for Q4 2024 reached $132.475 million, a 29.1% increase from $102.594 million in Q4 2023[32] - Subscription revenue grew to $118.608 million in Q4 2024, up 35.4% from $87.583 million in Q4 2023[32] Operating Income and Loss - GAAP operating loss for Q4 2024 was $47.4 million, compared to a profit of $0.2 million in Q4 2023, resulting in a GAAP operating margin of (36%) compared to 0% in Q4 2023[4] - Non-GAAP operating income for Q4 2024 was $8.7 million, up from $1.4 million in Q4 2023, with a non-GAAP operating margin of 7% compared to 1% in Q4 2023[4] - Non-GAAP operating income for Q4 2024 was $8,680,000, compared to $1,391,000 in Q4 2023, indicating a significant improvement[37] - The non-GAAP operating margin for Q4 2024 was 7%, up from 1% in Q4 2023, reflecting enhanced operational efficiency[38] Net Income and Loss - Net loss attributable to OneStream, Inc. for Q4 2024 was $31.449 million, compared to a net income of $2.751 million in Q4 2023[32] - Non-GAAP net income for Q4 2024 was $11,581,000, compared to $3,934,000 in Q4 2023, showing a positive trend in profitability[39] - The company reported a net loss per share of $0.19 for Q4 2024, compared to a net loss per share of $1.23 for the year ended December 31, 2024[40] Cash Flow and Liquidity - Free cash flow for Q4 2024 was $24.7 million, compared to $26.6 million in Q4 2023[4] - The company reported a net cash provided by operating activities of $25.138 million for Q4 2024, compared to $26.795 million in Q4 2023[36] - The net cash provided by operating activities for the year ended December 31, 2024, was $61,152,000, a significant increase from $21,265,000 in 2023[41] - Free cash flow for Q4 2024 was $24,697,000, slightly down from $26,573,000 in Q4 2023, but still demonstrating strong cash generation capabilities[41] - Cash and cash equivalents increased significantly to $544.174 million as of December 31, 2024, from $117.087 million at the end of 2023[36] Expenses - Operating expenses surged to $135.956 million in Q4 2024, compared to $71.900 million in Q4 2023, reflecting a 89% increase[32] - Equity-based compensation expenses totaled $52.582 million in Q4 2024, significantly higher than $1.183 million in Q4 2023[34] - Equity-based compensation expense for Q4 2024 was $52,582,000, compared to $1,183,000 in Q4 2023, indicating increased stock-based compensation[39] - The employer taxes on employee stock transactions were $1,904,000 for Q4 2024, with no costs reported in Q4 2023[39] - The amortization of acquired intangible assets was $275,000 for Q4 2024, with no costs reported in Q4 2023, indicating potential acquisitions or intangible asset recognition[37] Assets and Liabilities - Total assets rose to $823.221 million by December 31, 2024, compared to $361.559 million in 2023, marking a 128% increase[30] - Total current liabilities increased to $312.175 million in 2024, up from $232.370 million in 2023, indicating a 34.3% rise[30] Innovations and Recognition - OneStream introduced 15 new innovations in 2024, including advancements in its Finance AI portfolio[5] - OneStream was recognized as a leader in the Gartner Magic Quadrant for Financial Planning Software for the third consecutive year[9] Guidance - The company provided guidance for Q1 2025, projecting total revenue of $130 million and a non-GAAP operating margin of (9%)[12]

Core Insights - OneStream, Inc. reported a transformative year in 2024, achieving a 35% year-over-year growth in subscription revenue during Q4 and becoming free cash flow positive and non-GAAP profitable [4][8] - The company introduced 15 new innovations in 2024, particularly enhancing its Finance AI portfolio, and plans to launch new products in 2025 [4] Financial Highlights Fourth Quarter 2024 - Total revenue reached $132.5 million, a 29% increase year-over-year - Subscription revenue was $118.6 million, reflecting a 35% year-over-year growth - GAAP operating loss was $47.4 million, compared to a profit of $0.2 million in Q4 2023, resulting in a GAAP operating margin of (36%) [8][27] - Non-GAAP operating income was $8.7 million, with a non-GAAP operating margin of 7% [8][31] - Free cash flow for the quarter was $24.7 million, down from $26.6 million in Q4 2023 [8][32] Fiscal Year 2024 - Total revenue for the year was $489.4 million, a 31% increase year-over-year - Subscription revenue totaled $428.2 million, marking a 41% increase year-over-year - GAAP operating loss was $319.5 million, compared to a loss of $30.5 million in 2023, with a GAAP operating margin of (65%) [8][27] - Non-GAAP operating income was $1.2 million, with a non-GAAP operating margin of 0% [8][31] - Free cash flow for the year was $58.5 million, compared to $18.7 million in 2023 [8][32] Recent Developments - OneStream completed a secondary offering of 17,250,000 shares in November 2024, with no proceeds retained by the company [7][9] - The company launched several AI-powered solutions, including GenAI and machine learning capabilities, aimed at improving forecasting accuracy and speed [8] - OneStream strengthened its partnership with Microsoft, enhancing integrations with Office 365 and launching a Certified Power BI connector [8] Industry Recognition - OneStream was recognized as a Leader in the Gartner Magic Quadrant for Financial Planning Software for the third consecutive year [8] - The company was also named a leader in IDC's Record to Report MarketScape and received high ratings in ISG Software Research's Business Planning Buyers Guide for 2024 [8]

Core Insights - OneStream, Inc. will report its financial results for the fourth quarter and full-year 2024 on February 11, 2025, after market close [1] - The company will host a conference call and webcast on the same day at 4:30 p.m. ET to discuss these results [2] Company Overview - OneStream is a leading enterprise finance management platform that modernizes the Office of the CFO by unifying core finance and operational functions [1][3] - The platform integrates financial and operational data, utilizes AI for enhanced decision-making, and empowers CFOs to drive business strategy [2][3] - OneStream has over 1,500 customers, including 15% of the Fortune 500, and collaborates with more than 250 partners [4]

Group 1 - OneStream (NASDAQ: OS) is expected to sustain rapid growth, leading to a potential premium stock valuation [1] - The author emphasizes a diverse investment approach, incorporating fundamental, technical, and momentum investing strategies [1] Group 2 - The article serves as a platform for tracking investment ideas and connecting with like-minded investors [1]

Goldman Sachs analyst Adam Hotchkiss initiated coverage on OneStream, Inc. OS with a Buy rating and a price target of $37.Hotchkiss says that OneStream’s consistent revenue growth and high retention since FY23, despite a challenging environment for software, highlight the strength of its core CPM offering.The analyst notes OneStream’s unified CPM platform presents a durable demand opportunity as companies increasingly prefer horizontal, extensible, and innovative solutions.This shift is driven by the need t ...

BIRMINGHAM, Mich., Nov. 27, 2024 /PRNewswire/ -- OneStream, Inc. ("OneStream") (Nasdaq: OS) announced today that in connection with the previously announced underwritten public offering of 15,000,000 shares of its Class A common stock, which closed on November 18, 2024, the underwriters have exercised in full their option to purchase an additional 2,250,000 shares of Class A common stock at the public offering price of $31.00 per share, less underwriting discounts and commissions. Of the additional shares, ...

BIRMINGHAM, Mich., Nov. 14, 2024 /PRNewswire/ -- OneStream, Inc. ("OneStream") (Nasdaq: OS) announced today the pricing of the previously announced underwritten public offering of 15,000,000 shares of its Class A common stock, at a public offering price of $31.00 per share, of which 9,006,948 shares will be sold by selling stockholders and 5,993,052 shares will be sold by OneStream as part of a non-dilutive "synthetic secondary" transaction (the "Synthetic Secondary"). In addition, the underwriters have a 3 ...