Core Insights - A report from Bank of America Securities (BofA) indicates a significant medium-term increase in software spending driven by AI agents, despite current market caution regarding generative AI adoption and monetization [1] - BofA projects that spending on agentic AI technology could reach $155 billion by 2030, which is three times higher than most current industry analyst estimates [2] Industry Analysis - Agentic functionality is seen as a crucial factor for AI monetization, potentially leading to sustainable and measurable productivity improvements in the workforce [3] - BofA estimates that global knowledge worker wages across seven major occupation categories total $18.6 trillion annually, with a projection that agents could perform 10% of workflows by 2030, translating to $1.9 trillion in automation-driven value [4] Market Potential - If software vendors capture approximately 8% of the automation-driven value, this would result in global agentic AI spending of $155 billion, equating to a 12 times return on investment for customers [5] - Surveys indicate that 64% of organizations plan to pursue agentic AI initiatives by 2025, although many are still in the early stages of deployment [5][6] Adoption Trends - As of January 2025, 53% of organizations are in the exploration stage of agentic AI initiatives, 25% are in the pilot stage, and only 6% are in production [6] - Key job functions expected to adopt agentic technologies first include customer service, marketing, sales, and software development [6] Key Beneficiaries - Notable companies identified as key beneficiaries of AI include Microsoft Corp, Salesforce, ServiceNow, Intuit, HubSpot, GitLab, and OneStream, all of which have significant customer datasets and data management capabilities [7][8] - These companies are expected to begin monetizing their AI features and products around calendar 2026 [8]

OneStream (OS) Conference Summary Company Overview - **Company Name**: OneStream - **Industry**: Software, specifically focused on Corporate Performance Management (CPM) solutions - **Public Status**: Went public approximately one year ago Key Points and Arguments Company History and Growth - OneStream was founded in 2012 by former employees of Upstream and Hyperion, aiming to create a cloud-native platform for financial consolidation, planning, reporting, and analysis [2][6] - The company transitioned to a Software as a Service (SaaS) model after receiving investment from KKR in 2019, growing from $35 million in Annual Recurring Revenue (ARR) to over $600 million [6][7] - The total addressable market (TAM) for legacy software replacement is estimated to be over $10 billion, indicating significant growth potential [10] AI Investment and Applications - OneStream has been investing in AI for six years, focusing on purpose-built solutions rather than generic AI applications [11][12] - The "Sensible AI Forecasting" solution has reportedly improved forecast accuracy by 25% while reducing time spent by 75% [13] - AI applications have driven a 30% increase in R&D efficiency and have been integrated into support and training areas to enhance customer experience [15][16] Sales Strategy and Market Readiness - The AI business has seen a 50% year-over-year growth, with a dedicated sales team for AI now in place [27][28] - Customers are increasingly interested in AI solutions, especially those with clear ROI, although some CFOs remain cautious due to past disappointments with AI projects [22][23] - OneStream's sales strategy includes leveraging existing customer relationships to drive demand for both AI and core products [30] Product Development: CPM Express - CPM Express was launched to simplify implementation for commercial customers, allowing them to get up and running in 8 to 12 weeks [36][37] - The product is designed for companies seeking best practices and is not limited to smaller businesses; it can also serve enterprise customers [44] Competitive Landscape - OneStream's primary competitor is Oracle, along with SAP and Anaplan in the financial close consolidation and planning space [46] - The competitive landscape has remained relatively stable, with OneStream focusing on differentiating its platform through extensibility and integration capabilities [48] Partner Channel and Federal Opportunities - Over 90% of OneStream's implementations involve partners, highlighting the importance of the partner ecosystem [51] - OneStream is certified as FedRAMP High, allowing it to serve federal government clients, which currently represent 5-6% of revenue [53] Additional Important Insights - The company emphasizes the need for a single source of truth in financial reporting to reduce discrepancies among departments [49] - OneStream's platform allows for low-code and no-code configurations, enhancing user accessibility and report generation [49] - The company maintains a gross retention rate of over 98%, indicating strong customer satisfaction and loyalty [42]

Core Viewpoint - The Schall Law Firm is investigating OneStream, Inc. for potential violations of securities laws, focusing on whether the company made false or misleading statements or failed to disclose important information to investors [1]. Group 1 - The investigation is aimed at protecting the rights of investors who may have suffered losses due to the company's actions [1]. - The Schall Law Firm specializes in securities class action lawsuits and shareholder rights litigation, representing investors globally [2].

Group 1 - Financial software is identified as a mission-critical component for businesses, emphasizing its importance in operations [1] - The article does not provide specific investment recommendations or advice, highlighting the independence of the author's opinions [2]

OneStream (OS) FY Conference Summary Company Overview - OneStream is a software company that specializes in corporate performance management (CPM) solutions, providing a single platform for budgeting, planning, forecasting, financial close, and consolidation [3][4] - The company has grown significantly from $35 million in Annual Recurring Revenue (ARR) to approximately $600 million, with employee count increasing from around 300 to 1,600 [4] Key Points and Arguments Business Model and Market Position - OneStream's platform is designed to replace legacy systems, providing a single source of truth for financial data, which enhances accuracy and trust in reporting [15][20] - The company has a 98% gross retention rate, indicating strong customer satisfaction and loyalty [20][22] - OneStream's approach to consolidation is technically challenging, which creates a competitive moat against other planning applications [10][11] Customer Engagement and Satisfaction - The company emphasizes customer satisfaction, aiming for every customer to act as a reference for potential clients [22][24] - OneStream's software is integrated with various data sources, including ERP systems like SAP and Oracle, as well as operational data from platforms like Salesforce [29][30] Market Opportunities - There is a significant opportunity for OneStream to capture market share from legacy CPM systems, with only 5% penetration in this segment [33][40] - The ongoing ERP migration cycle presents a chance for OneStream to modernize the office of the CFO without requiring a complete ERP replacement [32][33] Competitive Landscape - OneStream competes primarily against Oracle Hyperion and SAP, with a notable focus on displacing legacy systems [47][48] - The company has introduced CPM Express, a pre-configured version of its software aimed at simplifying implementation and expanding its market reach [41] Technological Advancements - OneStream has integrated AI capabilities into its platform, enhancing forecasting accuracy and scenario analysis for CFOs [49][50] - The introduction of Genesis, a no-code/low-code development tool, allows for rapid application development and integration of new features [58] Financial Performance and Outlook - The company experienced deal slippage in Q4 but reported a strong recovery in Q1, with the highest sales pipeline ever recorded [66][70] - Attendance at the user conference exceeded expectations, indicating strong customer engagement and interest in OneStream's offerings [70][73] Additional Important Insights - OneStream's strategy includes replacing multiple systems for clients, with an average of two to six systems replaced per customer [54] - The company is focused on being the platform for the office of the CFO, similar to how other software companies have positioned themselves for different business functions [56] - The acquisition of three applications for $3.7 million is part of OneStream's strategy to enhance its product offerings and provide more value to customers [63][64]

Core Viewpoint - Onestream (OS) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to buying or selling actions that affect stock prices [4]. Recent Performance and Outlook for Onestream - For the fiscal year ending December 2025, Onestream is expected to earn $0.09 per share, reflecting a -35.7% change from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Onestream has increased by 80%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - The upgrade of Onestream to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].

Core Insights - OneStream announced enhancements at its Splash 2025 user conference, including new Productivity Tools, a certified Power BI Connector integration with Microsoft Fabric, and the release of Version 9 of the OneStream Platform [1][2][4] Product Enhancements - The new Productivity Tools aim to help finance teams operate more efficiently, reducing reliance on technical resources and providing deeper insights with less effort [2][9] - The Power BI Connector for Microsoft Fabric allows users to combine and analyze OneStream data with other enterprise sources, enhancing insights across the business [3] - Version 9 of the OneStream Platform focuses on performance, scalability, and analytics, enabling customers to streamline financial operations and navigate uncertainty confidently [4] Company Overview - OneStream is positioned as a leading enterprise finance management platform that unifies financial and operational data, embedding AI for improved decision-making and productivity [5][6] - The company serves over 1,600 customers, including 17% of the Fortune 500, and has a vision to be the operating system for modern finance [7]

Core Insights - OneStream has launched four new SensibleAI capabilities aimed at enhancing finance teams' forecasting, insights, and productivity [1][4][12] - The SensibleAI solutions are integrated throughout the OneStream platform, addressing planning, forecasting, close processes, and reporting [1][12] SensibleAI Capabilities - SensibleAI Agents are AI-powered chat assistants that facilitate data retrieval, analysis, visualization, and task execution within existing workflows [5][6] - SensibleAI Studio offers over 30 AI routines for teams with limited data science expertise, enabling anomaly detection and performance optimization [7][8] - SensibleAI Account Reconciliations automate the reconciliation process, improving compliance and reducing manual effort [11] - SensibleAI Forecast combines machine learning and generative AI to enhance forecasting accuracy by over 25% and reduce cycle times by more than 85% [12][13] Market Context - A recent survey indicated a significant skills gap in finance, with 89% of finance students feeling prepared to use AI, compared to only 54% of senior professionals [2] - The pressure on finance leaders is increasing due to economic volatility and rising expectations for strategic insights [4]

Group 1 - The stock markets have rebounded significantly from post-April lows, suggesting a favorable environment for investors to reassess their holdings based on valuation metrics [1] - Gary Alexander has extensive experience in the technology sector, having worked on Wall Street and in Silicon Valley, which informs his insights into current industry trends [1] - Alexander has been a contributor to Seeking Alpha since 2017 and has been featured in various web publications, indicating his established presence in the investment community [1]

Financial Data and Key Metrics Changes - Total revenue grew 24% year over year to $136 million [26] - Subscription revenue increased 31% year over year to $125 million [26] - Free cash flow reached a record $36 million, representing a 26% free cash flow margin [27] - Non-GAAP net income was $6.7 million, with non-GAAP earnings per share at $0.04 [29] - Total RPO grew 24% year over year to $1.1 billion [28] Business Line Data and Key Metrics Changes - License revenue decreased 40% year over year to $4 million due to customer SaaS conversions [26] - Professional services and other revenue was $8 million, slightly above expectations [26] - Sensible AI Forecast bookings grew over 50% year over year [17] - CPM Express product saw solid bookings growth of over 50% year over year in the commercial business [16] Market Data and Key Metrics Changes - International business revenue grew 40% year over year, representing more than 30% of total revenue [27] - More than 60% of business came from new customers, indicating strong market demand [27] Company Strategy and Development Direction - The company aims to be the operating system for modern finance, focusing on agility in financial operations [24] - Continued investment in finance AI portfolio and product innovations, including ESG reporting and planning solutions [16][17] - The strategy includes democratizing access to enterprise-level platforms through products like CPM Express [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic turbulence and emphasized the importance of system modernization [9][12] - The company reiterated its 2025 revenue growth guidance of 20% year over year, while slightly increasing profitability outlook [30] - Management acknowledged potential deal headwinds due to tightening budgets and ongoing customer conversions to SaaS impacting license revenue [30] Other Important Information - The company plans to participate in upcoming conferences to showcase its product innovations [5] - Organizational changes were made to enhance leadership for growth, with key functions reporting directly to the CEO [24] Q&A Session Summary Question: Clarification on demand issues and guidance - Management noted that while leading indicators are positive, they are being cautious due to macroeconomic uncertainties [38] Question: Insights on CPM Express product performance - Management confirmed that CPM Express is resonating well with customers, providing faster onboarding to the OneStream platform [44] Question: Revenue guidance and deployment assumptions - Management indicated that macroeconomic announcements have led to a cautious approach in revenue guidance, despite a strong sales pipeline [48][49] Question: Trends in end market bookings - Over 60% of business came from new customers, with a focus on legacy replacements driving bookings growth [52] Question: Federal spending outlook - Management expressed optimism about federal business, highlighting the need for modernization in legacy software [66] Question: Pricing and packaging changes - The new pricing strategy aims to simplify customer contracts and align with the value of new offerings [70] Question: Customer growth potential in 2025 - Management sees multiple growth vectors, including interest in AI and a focus on the commercial segment [105]