OneStream (OS) Q2 2025 Earnings Call August 07, 2025 04:30 PM ET Speaker0Thank you for standing by and welcome to OneStream's Second Quarter Fiscal Year twenty twenty five Earnings Conference Call. At this time, participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Annie Lechen, Vice President of Investor Relations and Strategic Finan ...

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]