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OneStream (OS) Growth Outlook Resilient as Subscription Momentum Offsets Market Pressures
Yahoo Finance· 2025-09-19 18:49
OneStream Inc. (NASDAQ:OS) is one of the best low-priced technology stocks to buy right now. The company has come under pressure in 2025, with shares down more than 30% year-to-date, despite delivering fundamentally robust results. In its second-quarter results, the company reported revenue of $148 million, up 26% from the prior year, driven by a 30% increase in subscription revenue. The free cash flow margin came in at 20%, underscoring strong execution. Management modestly raised full-year revenue guida ...
OneStream (NasdaqGS:OS) 2025 Conference Transcript
2025-09-11 00:27
OneStream Conference Call Summary Company Overview - **Company**: OneStream (NasdaqGS:OS) - **Industry**: Corporate Performance Management (CPM) Software Key Points and Arguments Company Background and Founding - OneStream was founded to address the technical debt and complexity associated with multiple legacy financial reporting products, particularly those from Oracle, SAP, and IBM [4][5][6] - The founding thesis was to create a unified platform that rationalizes various financial processes into a single system, allowing for extensibility and integration of new functionalities [7][9] Platform Extensibility - The OneStream platform is likened to a smartphone, where core functionalities (e.g., consolidation, planning) are built-in, and additional applications can be developed without third-party technology [9][10] - The introduction of applications like Account Reconciliation and ESG reporting demonstrates the platform's ability to adapt to customer needs and market trends [12][10] Market Position and Competitive Advantage - OneStream targets large, sophisticated businesses, leveraging its history with Hyperion to establish credibility in complex financial environments [14][15] - The company has grown to 1,700 customers, including major brands like Costco and General Motors, by consolidating multiple systems into a single financial processing engine [15] - The introduction of CPM Express aims to accelerate implementation times and provide best practice solutions for new customers, enhancing scalability [16][51] AI Integration and Future Strategy - OneStream is focused on integrating AI into its platform, with products like SensibleAI Forecast and AI Studio gaining traction among customers [46][47] - The company emphasizes the importance of connecting AI capabilities to its financial data backbone, ensuring reliable and actionable insights [24][25] - The competitive landscape includes potential threats from AI-native companies, but OneStream believes its established workflows and data integrity provide a significant moat [18][19][24] Financial Performance and Guidance - OneStream has consistently achieved over 20% growth in subscription revenue, with a positive outlook for future growth driven by AI adoption and market conditions [45][46] - The company acknowledges short-term headwinds in government contracts due to regulatory changes but remains confident in its long-term strategy [49][50] Customer Profile and Product Usage - Most customers begin with core functionalities like planning or consolidation, with many moving towards AI solutions as they recognize the operational benefits [58][59] - The company aims to educate the market on AI's potential, which is seen as a barrier to faster adoption [48] Future Priorities - The CEO expresses excitement about the productization strategy and the integration of AI, viewing these as transformative for the company's growth and customer satisfaction [61] Additional Important Insights - The company is developing a plug-and-play architecture to streamline implementations, which is expected to enhance customer onboarding and satisfaction [15][16] - OneStream's ability to handle complex financial calculations, such as intercompany transactions and joint ventures, sets it apart from generic analytic tools [39][40] This summary encapsulates the key discussions and insights from the OneStream conference call, highlighting the company's strategic direction, market positioning, and future growth opportunities.
OneStream (OS) 2025 Conference Transcript
2025-09-04 13:52
OneStream (OS) 2025 Conference Summary Company Overview - **Company**: OneStream - **Event**: Citi Global TMT Conference - **Date**: September 04, 2025 Key Points Company Performance and Public Status - OneStream has been public for over a year, and the experience has met expectations, providing increased visibility and performance scrutiny, which strengthens the company [3][4][5] Innovation and Product Development - The company has seen record commercial pipeline growth, driven by innovations such as the Sensible AI portfolio and agile financial analytics [4][6] - OneStream's platform allows for close consolidation, planning, and reporting in a single data model, which is unique in the market [6][10] - AI innovations, particularly the Sensible AI Forecast, have shown significant momentum, with a case study indicating a customer saved $2.5 million and reduced forecasting time from ten days to one day [8][9][30] Federal Government Opportunities - The federal sector presents a significant opportunity for modernization, with many legacy systems still in use [13][14] - The government is cautious about moving to the cloud, which could impact revenue recognition for OneStream [14][15] Market Dynamics and Competitive Landscape - The financial transformation market is experiencing an upgrade cycle as on-premise ERP vendors push customers to the cloud, creating opportunities for legacy replacement [17][18] - Oracle remains OneStream's largest competitor, but win rates against major competitors have remained stable [20][21] - Concerns exist regarding the consolidation of ERP systems potentially limiting OneStream's opportunities; however, the company believes its unique capabilities will continue to provide value [22][24][27] AI Strategy and Use Cases - OneStream's AI capabilities are being leveraged for anomaly detection and enhanced forecasting, with a focus on accuracy and curated data [32][33] - The company is exploring monetization strategies for AI solutions, utilizing a hybrid pricing model that accommodates customer preferences [34][35] Sales and Organizational Changes - Recent changes in sales leadership were primarily for regulatory compliance, with no significant structural changes in the organization [56][57] - A dedicated AI sales force is being developed, focusing on integrating AI capabilities into the sales process [58][59] Financial Performance and Growth Strategy - OneStream aims to increase gross margins to 80% in the near to midterm, with ongoing investments in infrastructure and cost-saving measures [70][71] - The company is also exploring new geographic markets to drive top-line growth while maintaining a focus on margin improvement [69][70] Customer Engagement and Implementation - The introduction of CPM Express allows for faster implementation times (8-12 weeks) for smaller customers, enhancing expansion opportunities [45][48][52] - Customers are increasingly adopting consumption-based pricing models, reflecting a broader industry trend [39][40] Additional Insights - OneStream's internal use of AI has led to increased productivity in engineering and customer support, showcasing the effectiveness of its own products [64][65] - The company emphasizes the importance of maintaining customer trust and transparency in pricing discussions [43][44] This summary encapsulates the key insights and developments discussed during the OneStream conference, highlighting the company's strategic direction, market opportunities, and innovative capabilities.
OneStream, Inc.(OS) - 2025 Q2 - Earnings Call Transcript
2025-08-07 21:30
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]
OneStream (OS) Conference Transcript
2025-06-03 21:20
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]
美洲新兴软件:第一季度业绩中浮现的关键主题:重新审视首要投资观点;买入OS、VERX、WAY
Goldman Sachs· 2025-05-28 04:55
Investment Rating - The report maintains a "Buy" rating for OneStream (OS), Vertex (VERX), and Waystar (WAY) based on increasing conviction following Q1 results and recent events [5][6][13]. Core Insights - The median stock in the SMID-cap software coverage is down approximately 15% year-to-date, contrasting with the S&P 500's decline of about 1%. Despite this, Q1 results were generally better than feared, with no companies lowering the high-end of their FY revenue guidance [17][19]. - The report emphasizes that management messaging has become crucial for share performance, with companies that provided clear guidance being rewarded, while those with less clarity faced negative reactions [37][39]. Key Themes Emerging from Q1 Results 1. Revenue performance was better than expected, with median revenue coming in about 1% ahead of consensus expectations [18][22]. 2. Profitability margins exceeded consensus by approximately 1.3%, although full-year outlooks remained largely unchanged [27][29]. 3. Management commentary was critical, influencing share performance more than formal guidance in some cases [37][38]. 4. Buyer behavior remained stable despite macro uncertainty, with some companies emphasizing faster time-to-value to address budget scrutiny [42][44]. 5. AI strategies are gaining focus, with companies beginning to discuss their AI roadmaps more deliberately [45][46]. Sub-Sector Takeaways - **Vertical Software**: Stocks are down about 10% year-to-date but have shown resilience with a median revenue and profitability performance coming in 2% and 9% ahead of consensus expectations, respectively [49][51]. - **Back Office Software**: Stocks are down approximately 10% year-to-date but have improved by about 16% since Q1 results, with median revenue and profitability also exceeding expectations [52][53]. - **Front Office Software**: Stocks have seen a significant decline of around 29% year-to-date, but median revenue and profitability were 1% and 6% ahead of guidance, respectively [54][56].
OneStream (OS) FY Conference Transcript
2025-05-14 18:00
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]
OneStream, Inc.(OS) - 2025 Q1 - Earnings Call Transcript
2025-05-08 21:32
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]
OneStream, Inc.(OS) - 2025 Q1 - Earnings Call Transcript
2025-05-08 21:30
Financial Data and Key Metrics Changes - Total revenue grew 24% year over year to $136 million [22] - Subscription revenue increased 31% year over year to $125 million [22] - Free cash flow reached a record $36 million, representing a 26% free cash flow margin [23] - Non-GAAP net income was $6.7 million, with non-GAAP earnings per share at $0.04 [26] - Total RPO grew 24% year over year to $1.1 billion [25] Business Line Data and Key Metrics Changes - License revenue decreased 40% year over year to $4 million due to customer SaaS conversions [22] - Professional services and other revenue was $8 million, slightly above expectations [22] - Sensible AI Forecast bookings grew over 50% year over year [14] - CPM Express product saw solid bookings growth of over 50% year over year [13] Market Data and Key Metrics Changes - International business revenue grew 40% year over year, representing more than 30% of total revenue [23] - More than 60% of business came from new customers [23] - The company ended the quarter with 1,646 total customers, up 16% year over year [23] Company Strategy and Development Direction - The company aims to be the operating system for modern finance, focusing on agility in financial operations [20] - There is a strong emphasis on AI capabilities to enhance financial performance and forecasting accuracy [11][12] - The launch of ESG reporting and planning solutions aligns with the growing demand for sustainability reporting [14][89] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic turbulence and emphasized the importance of system modernization [6][9] - The company reiterated its 2025 revenue growth guidance of 20% year over year, while slightly increasing profitability outlook [28] - Management acknowledged potential deal headwinds due to tightening budgets and ongoing customer conversions to SaaS impacting license revenue [27] Other Important Information - The company plans to participate in upcoming conferences to showcase its product innovations [3] - Organizational changes were made to enhance innovation and growth functions [20] Q&A Session Summary Question: Clarification on demand issues and guidance - Management noted that leading indicators are positive, with the strongest sales pipeline ever, but prudence is warranted due to market uncertainty [34][36] Question: Insights on CPM Express product performance - Management confirmed that CPM Express is resonating well with customers, providing faster onboarding to the OneStream platform [40][42] Question: Revenue guidance and deployment assumptions - Management indicated that macroeconomic announcements have led to cautious guidance, despite a strong sales pipeline [46][47] Question: Trends in end market bookings - Over 60% of business came from new customers, with a focus on legacy replacements driving bookings growth [50][51] Question: Federal spending outlook - Management remains optimistic about federal business, viewing OneStream as a modernization play for legacy software [65] Question: Pricing and packaging changes - The new pricing strategy aims to simplify customer contracts and align with the value of new offerings [67][68] Question: Sensible AI forecast growth and impact - Management highlighted significant improvements in forecasting accuracy and reduced effort, leading to increased interest in the product [71][74] Question: International market performance - Management reported strong growth in international markets, attributing it to strategic foundational deals and investments [78][80] Question: Customer use cases and consumption-based pricing - Management noted that as customers adopt more use cases, it leads to material opportunities for ARR growth [83][85]