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]
OneStream, Inc.(OS) - 2024 Q4 - Earnings Call Transcript