Financial Data and Key Metrics Changes - Subscription revenue increased by 27% year-over-year to $141 million, while total revenue grew by 19% year-over-year to $154 million [19] - License revenue declined by 64% year-over-year to $4 million due to contract rationalization and successful SaaS conversions [19] - Professional services and other revenue rose by 38% year-over-year to $9 million, driven by demand for consulting services [19] - Free cash flow for Q3 was $5 million, exceeding expectations, and total equity-based compensation expense was $25 million [22][23] Business Line Data and Key Metrics Changes - International revenue grew by 37% year-over-year, representing 34% of total revenue, with strong legacy replacement momentum in Europe [4][20] - Billings increased by 20% year-over-year to $178 million, with trailing 12-month billings growing by 21% [20][22] - AI bookings were up 60% year-over-year, indicating strong demand for AI solutions [22] Market Data and Key Metrics Changes - The company saw exceptional new business growth in the AMEA region, while the U.S. experienced strong add-on business, partially offsetting federal new business weakness [21] - The federal business renewed all but one agency customer, with optimism about future opportunities in the federal sector [5][28] Company Strategy and Development Direction - The company is focused on leading the finance AI era, emphasizing the importance of modernizing financial systems and leveraging AI for improved business performance [8][18] - OneStream aims to provide purpose-built applied AI solutions, enhancing the role of CFOs as strategic partners [8][9] - The introduction of Sensible AI Studio and Sensible AI agents is expected to drive significant value for customers by automating tasks and providing insights [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver unparalleled value for customers, partners, and shareholders, supported by a strong product portfolio and pipeline [18][24] - The company raised its 2025 growth and profitability outlook, expecting total revenue for Q4 to be between $156 million and $158 million [24] Other Important Information - The company was recognized as a leader in the 2025 Record to Report Buyers Guide by ISG Research, achieving high scores in customer and product experience [5] - The company plans to embed Sensible AI agents throughout workflows to assist with data interrogation and reporting [12] Q&A Session Summary Question: Insights on federal dynamics and renewals - Management noted that only one federal contract was lost due to agency discontinuation, and they remain optimistic about future federal opportunities [26][28] Question: AI deployment trends among customers - Management confirmed strong interest in AI, particularly in Sensible AI Forecast and other AI applications, indicating a growing embrace of AI in finance [29][30] Question: Confidence in 2026 growth targets - Management highlighted strong performance in AMEA and the U.S. commercial business, contributing to optimism for 2026 [32][33] Question: Risks around government shutdown - Management acknowledged challenges due to the government shutdown but expressed confidence in their FedRAMP High certification and ability to serve government agencies [63][64]

Financial Data and Key Metrics Changes - Total revenue grew 26% year over year to $148 million, with subscription revenue increasing 30% year over year to $134 million [26] - Free cash flow for Q2 was $29 million, up 281% compared to the previous year [27] - Non-GAAP net income was $9 million in the quarter compared to a loss of $5 million in the prior year [29] Business Line Data and Key Metrics Changes - The core finance platform continues to drive the majority of revenue growth, with strong subscription revenue growth contributing significantly [7] - Professional services and other revenue increased by $500,000 compared to last year [27] - The early momentum of the recently launched CPM Express offering is enabling quicker access to the platform for customers [9][23] Market Data and Key Metrics Changes - International business revenue grew 34% year over year, contributing 33% to total revenue [27] - More than 60% of bookings came from new customers, indicating strong market demand [27] - The North American commercial business performed well, driven by the growth of the CPM Express product [22] Company Strategy and Development Direction - The company focuses on product and AI innovations to capitalize on market momentum and build long-term value [6] - The strategy includes a shift towards operational planning beyond the office of the CFO, leveraging advanced AI capabilities [38] - The introduction of the Genesys architecture aims to simplify customer experiences and drive revenue through new solutions [13][100] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for the US Federal and public sector business despite near-term uncertainties [30][46] - The company has the largest pipeline ever at this point in the year, indicating strong future growth potential [30] - Management acknowledged the challenges in the federal government sector but remains confident in the long-term opportunities [48] Other Important Information - The company introduced several advanced AI innovations at the SPLASH conference, including Sensible AI Forecast and Sensible AI Studio [10][14] - The company is focused on providing predictable outcomes and building trust in AI solutions among CFOs [85] Q&A Session Summary Question: Expansion outside the Office of the CFO - Management discussed the strategy to drive expansion into operational planning and highlighted the upcoming ESG product as an example of targeted use cases [36][40] Question: Federal Government Contracts and Guidance - Management provided insights on the federal government’s modernization efforts and the potential migration to SaaS, balancing optimism with caution regarding Q3 guidance [43][46] Question: Macro Environment and Deal Delays - Management acknowledged the strong Q2 performance while recognizing some uncertainty in the macro environment but expressed confidence in executing the pipeline [52][55] Question: CPM Express and Sales Enablement - Management emphasized that CPM Express is part of the productization strategy aimed at delivering quicker value to customers and noted positive sales momentum [58][62] Question: AI Monetization and Pricing Strategy - Management outlined the hybrid pricing strategy for AI solutions and emphasized the importance of low friction processes for customer adoption [70][74] Question: Competitive Mode and AI Disruption - Management reassured that OneStream's sophisticated financial intelligence system is insulated from AI disruption, emphasizing the need for trust and transparency in financial applications [77][82] Question: Trust and Adoption of AI Solutions - Management highlighted the importance of productizing AI solutions to provide predictable outcomes and build trust among CFOs [84][86] Question: Federal Business Pipeline and Interest - Management confirmed that the pipeline for federal business continues to build, with indications of interest increasing despite current uncertainties [105]

Core Insights - OneStream is hosting its flagship user conference, OneStream Splash, from May 13 to 15, 2025, in Nashville, TN, focusing on AI-driven innovation in finance [1] - The event will feature over 2,300 finance leaders and technical professionals, making it the largest Splash event to date [3] - OneStream aims to empower finance leaders to navigate uncertainty and improve productivity through AI solutions tailored for finance [2][4] Event Highlights - The conference will include over 80 breakout sessions across eight tracks, covering topics such as Financial Planning & Forecasting and Real-World AI Use Cases [4] - Keynote sessions will feature insights from OneStream CEO Tom Shea on the future of finance in the AI era and how finance leaders can leverage AI and automation [4] - The Wave Technical Program will provide hands-on labs and practical sessions for deploying OneStream solutions using no-code tools [4] Success Stories and Leadership - The event will showcase firsthand stories from finance leaders at companies like Endeavour Energy and Gibson, highlighting the use of OneStream for modernizing planning and reporting [4] - Reshma Saujani, founder of Girls Who Code, will discuss leadership and growth, emphasizing the importance of embracing bravery in building future leaders [4] - The Women in Finance program will spotlight female finance leaders, offering inspiration and real stories of ambition and advocacy [4] Innovation and Collaboration - An expanded Innovation Hall will feature interactive experiences, including partner showcases and live product demos, aimed at fostering collaboration [4] - Attendees will have opportunities to engage with OneStream experts and explore AI-driven solutions in finance [4][5] - The conference is supported by various global advisors and implementation partners, enhancing the collaborative environment [5] Company Overview - OneStream is recognized as a leading enterprise finance management platform that unifies financial and operational data, embedding AI for improved decision-making [6][7] - The company serves over 1,600 customers, including 17% of the Fortune 500, and aims to be the operating system for modern finance [8]