OS - Earnings call transcript Q4 2024 | OneStream, Inc. Class A Common Stock

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Operator

Welcome to the OneStream's Fourth Quarter Fiscal Year 2024 Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded.

And now I'd like to introduce your host for today's program, Annie Leschin, Vice President of Investor Strategic Finance. Please go ahead, ma'am.

Annie Leschin

Thank you, operator. everyone. afternoon, Good fourth call. OneStream's full XXXX year Welcome quarter conference earnings to and

Joining our today Tom call me the on is our Bill Shea; CFO, Co-Founder Koefoed. and CEO, and

year posted on Investor announcing quarter our an The along at our issued earnings press is and presentation. Relations release full today earlier XXXX investor.onestream.com, fourth with website results

quarter XXXX, Now remind everyone to on the forward are call statements December let that related statements XX, XX, me looking, for guidance ending year ending first the today's and some of March including XXXX. the

to statements are and Forward-looking assumptions uncertainties, and factors. subject known unknown risks, other

Some SEC the with or law. filed as greater the statements in ended XXXX, quarter of forward-looking on X, on update including detail file XXXX. time from obligation documents new report to except September time, whether XX, events by we otherwise, are we as these SEC no with information, risks November We our to for undertake in XX-Q which described quarterly future any the of a result the required Form

financial call non-GAAP also isolation similarly may comparable be from be measures measures for most non-GAAP measures. to today, substitute will companies. their are in referenced non-GAAP other These directly and GAAP The reference of we should not comparable to certain today's on they call titled our measures, considered limitations During our measures. not or a

press most in our GAAP website. performance performance. be presentation measures by on and can Our management directly the liquidity indicative regarding operating ongoing believes that this provide found and our the in measures our Reconciliations earnings core information our non-GAAP certain comparable non-GAAP Relations afternoon's be supplemental may of release expenses measures to posted the excluding Investor of that not meaningful

on at conference know Before I website. Conference made Tom, Morgan will our Media presentation available live on replay Stanley's let to Technology, over Relations just we the our and you we Telecom X, stream turn and March XXXX. of Investor be to will that attending A wanted it be

Now I'll turn it over to Tom.

Thomas Shea

for us you everyone, joining today. thank Welcome, and

to and cash for our ended of XXXX This with year what going OneStream solid seeing touch value our outlook milestone was the to business that platform and was a engine, year-over-year portfolio, a XX% we're performance quarter the revenue significant market fourth provide innovation testament I'm XXXX. the growth our our results, with customers. on in to incredible flow. finance a our strong the strength and including reflecting we provide AI

new and once our the affected Our climate, year-end. events, opportunities solid resilience including the of of demonstrates finish at the business combination challenges. sudden the U.S. A again and dollar presented that election, U.S. year in geopolitical strength the ongoing

impacted some macro sector. vast push majority additional of the requirements around which caused tariffs, have of companies our First, the regulations, year. This uncertainty X multinational public large included into public deal. deals and sector reporting a markets, significant and scrutiny deal new primary and closed The

long-term heading of focus: and of Overall, AI. year into for demand our OneStream and we momentum X some near-term remain opportunity. despite remains with important financial the excited this, quarter, solid change significant and in will talk even shortly. And as of also the about Bill rates we metrics our are some in Second, exchange the about third, impacted foreign the and commercial are areas sector in reported results confident headwinds, finance strong, optimistic the

in million financial subscription of of retention at Splash during again results our of our in for revenue year-over-year. conference was were expansion User reported is the our at from of our to in one growth part European May Splash platform, and utility and providing let profitability. OneStream solution-based more rolled and U.S. year, Unlocking recently, September. years additional creating value and we out another a most generating More customers, give conference installed by non-GAAP this the User platform the revenue sales were in X value in free opportunities our strong on-ramps driven the more XX% in some kickoff from aligned our transformative expansion base. achieving operating packaging number grew of history. which for solution, our We you XXXX, Finance cash wants bedrock the including Now ecosystem. XX% machine our innovations to partner simplifying We the strong initial customers year-over-year, primarily which customers new the me XXXX, story. that stickiness year, buy XX the We how market highlights that We sales also introduced learning. once only offerings flow XX% OneStream quadrupled and to using is our and the supporting value OneStream's while AI total sensible gross the positive and company. We of bookings reinforcing derive January, Yet, $XX

planning For the Office just planning to processes Research, IDC's And worldwide Magic CFO need. finally, and of record the more of illustrating we a of completed support was in report the assessment. third leader second consecutive vendor by half ISG, the and year. a power for formerly offering recognized successful Quadrant financial software. Gartner's operational leader In And Ventana month, business secondary a OneStream the in we our IPO platform named to year, were leader as in last the in

to a business the which single reinforced to our trends have Number we CFOs trend cloud-based opportunities. modernize driving corporate two, past speaks digital CFO on more and Finance from for for need to driving found the applied OneStream's that The number AI needs the of the in business ability informed by decision-making to solutions and X/X to greater success. and growing as cases was common has a breadth Number with scope inform are CEOs of further more forecast the to and as This plan view map. without three, of results finance need use the our real than recognized in the XXXX prioritizing data trends transformation and to road impact the data financial our enterprise. make strategic ML new address financial data technical and operational platform that transitioning purpose-built platform and to faster, and need comprehensive unique need data source business. unify evolve this finance's a an business initiative X the empower value depth our for of extend continue Accelerate confidence one, for the the for truth AI provide across as are the advance of accuracy finance single unified enabling trends long-term study, All These decisions. platform becoming to the reporting truly future and Three expanding essential reinforce customers of finance. is to market for underpin development CFO reporting every unified quicker, with drive forecasting embedded and And of solutions employee partner and product new to on operational and their model. and planning, adding improved industry, platform and debt. our

year history. really OneStream complex I our has that even XXXX, to us made the progress a and needs scale. real competitive which at analytics advantage, most data, we in the innovative about in I'm the excited processing meet believe was most environments allowing of the

sales delivering financial Our of fully the with initial ability our BI integrated in solution on market of management a the finance and value customers certified for with users delivering in new assembly is CPM OneStream with for data Elevating overarching and do which to ESG Improvement solutions, platform. empowering CFO. we include broader with updated to industry-leading planning project on the centralized implementation a positive connector. sales had with report reporting these with offerings all office and gathering Microsoft We offerings, Power of data top platform. performance AI success this Express. advanced incredible customers. the new And packaging, the built set rich pricing Providing of reflect purpose-built and time narrative reception our combined the the reported, our to OneStream a are

core version comes initiatives. capabilities our is Let couple these configuration. prebuilt of that financial X fully time to details planning, cost. up me simplifies X core running reports in close a new to activities all solution with weeks, CPM finance and and and on processes core reporting enable with faster up and speed customers some guided a provide across predictable This and important Express a predefined on implementation PPM prepackaged It functionalities, value. of significantly for

to Express drive core CPM expect going We globally customer growth forward. new platform

of information critical ESG for To their their accurate of This become do need and own for not value account about is we've rest to their this, entire has companies only operations the Europe. particularly a must but reporting with multinational complete organizations, These for in chains. align planning. need reporting area Another and innovation they talked ESG.

are help Given reporting OneStream's record, CFOs meet book role core to of as we positioned ESG the requirements. well

even elements by robust plan to we launching offering Additionally, enhance to be more in new XXXX. this

finance to portfolio. Turning our AI

accelerates average, at product including user services explainability products end a important We new fourth to banks, combined and number reported financial We cycles You've and for had and planning and XXX businesses. reporting, adapt adapt its outperformed ranging formulas a Pillar business. adopters, global by and forecasting. has edge multibillion-dollar these a leveraging leverage firms. X solution changing We investment as our in one our our to in to of reported trust of poised factors accuracy ESG verticals. customers We improves the improvements support product, XXXX. the company. forecasting, higher significant platform and about a power finance customers Sweden, heard geographies platform FP&A profits. additional a approach, well-known speeding to plan rethink initial services business and global to SML, insights coming from largest institution have offer XX%, customers another our public while We to in accuracy as quarter leading consistently that manufacturers, projects. the have offered Brazil, By fundamentally for forecast learning impact legacy science customers, in the established and to bank the accuracy currently and revolutionize XXXX, enterprise and This saw while continued and retailers consumer machine education transitioning and AI enabling added approach array customer outcomes And first Southeast. which have us Crediting AI-driven frequency the time education on delivering dynamics takeaway our forecast XX market financial for competitive offering more its including OneStream business, maximize customers. with to more data their value, into XX%. of conditions adoption. AI in wins higher midsized of higher reporting XXXX to capabilities. efficiency strengthen of have in harnessing commercial across needed is to drive company. planning otherwise landed proprietary over ability to multibillion-dollar have for transformative and X had to we providing wide OneStream's a enhancements the value In with Customers our we installations while to and and enhancements allows of talk growth ability than with Tax transparency it known are further forecast believe a to to OneStream in them major custom the value our sensible ESG applied and growth We customers SML's their over even dynamic early potential lot a banks SML macroeconomic sector Fortune enhances to their win

standards Speaking handled authorization, as of agencies, with who Impact federal officials. high requiring FedRAMP work highest government. our the coordination has agencies levels data. most highly well mission-critical and considerable the I'm classified sensitive addition and This and by close platform milestone sector, investments, state, road these It level and is the to with announce thrilled certification the to operating that January of as federal enables to of all in local Defense long including cycles certifications XX, government OneStream a engineering the security received public to Level Department us X of significant effective those

many to land continue each and needs with immediate and long We term. drivers, great customers, unique both

stood that Let me fourth a in quarter. into just a more the few dive bit detail on out

OneStream they bank are other businesses on plan more a storage have division, company of single, and limiting at operational Not for severely This leading entire various to list. of order and view accurate every will systems banks, more the use of their data overall each relational for financial services organization. and unified in We their of unify cubes financial their and separate data level financials. planning view investment organization. accurate analysis reporting, across unlike the financial customer our the the data for consolidation to They to have and multiple

focus and weeks and We now them SPM, compare on management able compensation and performance An large had company SPM sales improve the a system of software platform extension OneStream better built doing. need years technologies. display, as to the customer the long-time efficiency OneStream much using do our consolidation, dashboard decision scenarios have an manufacturer with had X Generac, each role account was financial multiple reporting, with in multinational incentive reconciliations a in reconciliations. nearly fact capabilities the of pivotal consolidations, to ESG, the depth crucial been data of XXX This forecasting. single a see also on natural a tax to process the making, a solutions with the other a From there, of profitability In This environmental planning, their was into by value global With a account a sales are and as including and while that move technical system, This a forecast. and for this Phase for game-changing multiyear company and seamless independent success Several SPM, vendor. unified Phase will systems, platform. is product and customer, looks platform as much and first the was modern X.X the The user for OneStream dispute processes. for and Generac, consistent debt. users so Beginning visibility management of the been SML in has on was CPM their on their quality sale that that and to existing played footprint. robust platform impressed create of replacing the We large migrating by Infinity's legacy territory ability allows platform, our deal our they to planning Infinity to acquisitive reconciliations. to their of X a we large X OneStream's visibility on a deploy and reporting. resolution account signed have single adopt do forecasting, reducing integrated helps business dynamic how in that saving simultaneously is specializing

SML they a operates With ML serve. Their internal SML their from like across is to revenue their platform and in the and forecasting OneStream complexity. their Finally, from I'd with to forecast. ability to financial the It to for solution drivers to cloud a OneStream's and with is external first to I providers expand without in business XX-week and over lines a leader customer biased. of ensure what forecasting focus XX%. time-consuming to wrestling produce learning confidence faster, by ] rather this SML, What share and customers. forecast its their errors. elected hope achieved close introducing into is They they technology while decisions how insights leading What steer to forecast. XX% [ is bias and line cost the empowers apart forecast manufacturers. decision-making The incorporating to the multiple higher hours accuracy than the across used processes We on SML develop experience planning, device the customer their of level They forecast indicators precision this effort resonates reduced gave seamlessly reduce consolidation, of accuracy, power in distribution. which harness for reduction customers in removed data each transforming countries process teams countless was This to forecast machine know data-driven suboptimal producing forecasting global sets spending business. smarter at without prior complex, technologies often make to integrate data providing over business with and technical cutting-edge country finance and management XX%

gross excited strategy. a success growth. retention multiproduct of continued We is and about XXXX, OneStream's heart key component our Our the our of XX% enter at

new year, innovations our with infinitely the and We're exchange and with applications the demand from extensible last We our packaging about SPM. to Express are drive greatest our platform. along announced to enable early to value customers we've seen for our new market XX like bringing CPM pricing solution excited

to continue finance are to strategy new against our addition, our effectively growth, differentiate these library AI. operating become we In finance. levers By build the portfolio AI of AI out and including we system our executing for modern and products, Gen adding multiple

And possible. to making thank hard-working the a in this dedicated, employees tireless want heartfelt their for our I all efforts world finally, you to around send of

Now to financials. the for Bill call let over me turn the

William Koefoed

Tom. for thank joining Good you afternoon, Thanks, today's everyone, and call.

As our solid then with impressive flow like end dive growth some year. QX and a had cash with XXXX. for to I'd into XXXX start both Tom mentioned, guidance strong today QX QX an free we with and our capping and revenue and on results commentary

our The note RPO begin, XX% of bill billings. U.S. metrics XX and negatively for convert sudden These of in it and ARR, by U.S. dollar September annually currency financial business international, is local is include customers and most I important X% to strengthening QX XX, of by to from international the of recognition. to approximately impacted revenue Before that we roughly growth some X%. our dollar December our

cash the $XXX million $XXX million. start to to some $XXX with revenue key flow XX% accomplishments. than achieved to We at of to ARR XX% year-over-year operating million to grew Let's end XX% billion. in $XXX XXXX margin. and which XX% cash increased million We year surpassed revenue free million subscription $XX revenue international non-GAAP $X generated profitability, we free and We RPO $XXX million. greater represents We flow,

revenue We million, increased year-over-year, fourth in quarter. Subscription the revenue to $XXX $XXX at license revenue $X and year-over-year the quarter. to total XX% grew million for to came million. XX% Turning

that We we to for quarter. million XXXX model. conversions the toward continue to to as quarter, SaaS and other Professional the continue in see revenue strong SaaS $X expect progress XXX% was licenses we into business term from services trend and a

software As of OneStream we going our continue at transition services implementations we similar forward. professional rate a to more to remain run partners, to expect

thrilled XXXX. XX% XX% we've $XX in revenue to million. This International representing revenue grew quarter, progress International business, We're made the our of total our year-over-year with with

X,XXX we ended with customers For the come year-over-year. XX% business from year, XX% we over our saw year customers, of the up and new total

retain retention and customers of a continue dollar basis. net to expand gross XX% XXX% existing Billings million XX% with We $XXX and quarter, our the and XX% record up trailing base year-over-year XX-month to on a retention. grew fourth in

total XX-month our was up increased Our CRPO billion. XX% and $X.X year-over-year, year-over-year to RPO XX%

As billings, impacted noted, and CRPO by QX negatively RPO FX. were

margin Our non-GAAP gross with non-GAAP was year. the and versus software gross was year margin mix compared XX% prior year, with last to QX last XX%, license due XX%, consistent

optimize infrastructure quarter solutions expect core opportunities innovating to operating spending Fourth primarily work and as AI we X% we see the for costs was on due or income increased the improvement and continue the non-GAAP platform operating continue We to over R&D million higher to our the quarter. in our finance term. expenses long Non-GAAP year-over-year, operating margin XX% margin $X ahead.

for million. non-GAAP income the income For $XX We and the was non-GAAP share full with $X.XX. year, quarter were operating million per of net earnings $X non-GAAP profitable were

the million, $XX and for expense equity-based share compensation the quarter $X.XX. and compensation year, expense Total was net were million full $XXX $XX per was full the year, equity-based for For earnings non-GAAP was non-GAAP income million. fourth

year fiscal generated equivalents. the million. bringing fourth flow free and with our end $XX -- our XXXX cash $XXX We fiscal to quarter, $XX of cash year flow, we of million million cash the year cash free ended For

objectives with In Customers the while top AI view to line data summary, and achieving platform our results invest future. of OneStream XXXX, operational unified the a and for strong for financial choose continue to provide management performance delivered we continuing key capabilities. on bottom to and analytical,

generating to expect We and outlook. guidance driving review growth to opportunity the and Now and subscription flow. products our factors our while launching market let market cash me revenue key robust remain on strong about new enthusiastic move

drive strong XX% compounding highlighting our growth, Importantly, in investment success. customer to our continued retention gross continues

As we fourth conversion we discussed strong in quarter. to see last the continue SaaS quarter, rates

While it for component license this going we our total focus is as long-term company. a expect revenue, XXXX. reminder, roughly the revenue into a is the professional for Also services success flat to our of a of near-term be headwind

our total for X% in continued impacting international subscription strength growth. in dollar, has with which is outlook higher predominantly foreign than our currency XX% QX, expect XXXX. to outpace revenue the roughly growth revenues of We revenue coupled from The transacted business, U.S. coming

With Non-GAAP minus expected year total $XXX million $X.XX. operating is to guidance million. approximately expected to to $X.XX X%. to million fiscal X% $XXX will to for be revenue be between is, per is expected our plus share million. XXXX be Non-GAAP be to between that, Equity-based margin compensation $XXX $XXX is to earnings

XXXX Guidance expected is $XXX margin minus is is for as $X.XX to Total to Equity-based million. Non-GAAP operating X% $XX million $XX share to compensation be between QX to to expected minus per is to be Non-GAAP minus between be to to be expected follows: million. earnings minus between X%. expected QX for is revenue $X.XX. $XXX million

closing, efficient our new ability growth. OneStream In business of platform enabling the and and to packaging and innovations is rafted streamlined new drive on-ramps driving strength CPM to core our pricing the

pleased ahead are XXXX. excited with our in We the opportunities XXXX results about and

operator. it Now to over the let's turn

Operator

comes [Operator Instructions] Our Securities. of John Guggenheim from line from DiFucci first the question

John DiFucci

to for to respectful and So want Did say be X follow-up. or guys, I X actually have just X you X question I to Tom. you question. limit yourself

Thomas Shea

We question. said X

John DiFucci

Okay, okay.

for I going you Tom Bill, thanks Okay. asked ask customers. listen, Tom, examples with to no it. this ask one if I'm later those can a question.

people, context demand us normal" improving like in and guess solutions, challenged well, seem happening, really modern some other hear list we about from priority "new might Our that We don't up like statement us, more that be to "back-office" general talk companies you to which planning why work have field but many talk a software enterprise I consolidation you high like doing to of customers' about surprising guys more of recent the was to broadly, quarter, lot been a like to like global in picked many SIs. it. considering especially for that on quarters. you this especially did can on be talked applications that enterprise -- have when the

Thomas Shea

John. Thanks,

So of talking answer and has financial I'll on with heart providing of foundation, this confidence. solution, X finance is, I'll a bit cover you capabilities little start to Every call have question main off And every with manufacture a providing core just that first needs. a points. team company, at to the they a our we're the by time are company to produce to that off statements

And that so at the we're heart of discussion.

However, at transformative these when time, talk to same processes. this, are the decision-making I

of that, making realization talked go been mentioned large is down And think they're onboard can ether the of and way, so about that the in in as when the the systems kicking a to calls a But you past that right and there's critical. have the you to and XXXX a the lot we've implementations can't as decision road. keep enterprises I

keep have you to ecosystem You data. working your reliable as CFO, make and simplify that have sure a to

that and underpinning growing customer retention, forming core base for all about And that that that retaining and show by exceed to the the really, And relationships able and and changed that the are being looking we cases. degree us, business. having think about the and to and foundation it as work to is forming we've you're customer hard focused we do to all, very that of gets really really years think valuable the if at of very, this and asking really, that again, foundational those and So success durable base. business, our we're expanding them once our up heart the customers, customers, on And look in hasn't of that been about to of it. number about really model in we XX%, That's lifetime leverage and that growth at help question core really high we're then XX I do value as bedrock, two, X. from foundation I a asset have us is, important think when And at our talking you ability model. customer it, many growth to day that talk we're type have they established that

So being our out showing solution evolving to platform. that also but faster make can sure with we on with exchange our more on-ramps rent focused on structure marketplace we're pricing we partner really, to and adapt really and of and the value with give our more packaging that that also and them them get

future as that gave, up that's customers. that for holding talked these important we very is creating an for we've saying and the other and customers the information customers. we But about that developing a data and examples that's ultimately and saying, then is the mentioned, have And [indiscernible] really we about I a some about relationships AI that these We But don't if foundation are I gross think really they important CPM That's long-term and Express of faster raw this, on-ramp The message just would journey to like thing large to and transformative third so an So really, think solution. showing with actually projects AI -- the underpins that we're involved opportunity that one those in. XX% that when equal us I these what these these retention amount plus thing my OneStream. for for optimism and massive forward. that continuing going have was focus. the portfolio and we is complete what I an optimism another And customers. about you talk for curating about say enough piece are of for

a untied it. have to advantage information value most the to years, AI look about actually and to And going around important. very is we out think like and play this all take ability X out talk So of of platform have their of this to the we the this in to of if customers get what's AI, chatter financial have out and and out investments

will And building so that applications. power CFO's an that we feel AI-driven asset we're really help

Operator

Hotchkiss line next our comes of Goldman from Sachs. And from Adam question the

Adam Hotchkiss

bit Bill, know times. these delineate much deal a we closings you comment a some other from and headwinds as FX hear little I you number mentioned elongations. of talked maybe versus Could about headwinds, how sales an you and near-term FX today of non-currency comment like that companies cycle was meant of

want Just of comments so pieces for some adjusting the to those currency understand much.

William Koefoed

X% little and probably strengthened a thank is some you of XX% by September bit you about as our the business more, that Adam, about as finance FX, and FX and mentioned Yes. roughly impact, know, January. our of December between About know, candidly trucks you. XX, international I strengthened impacted in But [indiscernible] the X%.

to next let's the Operator, go question.

Operator

our next comes Chris from of the line Morgan from Quintero question Stanley. And

Christopher Quintero

I to the changes. your comments packaging around on up follow wanted

you're mean And the Just NOI to expectations basis? in What And on changes curious details there? of type for kind impact quarter? any of can there more what go of making? was that any a

Thomas Shea

Chris.

that So you -- talking the we've and is about multiproduct a really and in to strategy. really on us because delivery really multi-solution Express pricing we're reason we wanted packaging hear embarked bring

a reliable to evolution do way. And to sales new this introduced machine a it understandable As We've these performance durable redo, package this customers a sensible isn't our you've really heard offerings it allows an and in or learning, pricing. management, it's how about talked buy us, that in This is reset throughout alluded XXXX. have we've ESG. about we complete

so this new an us this we've working this kickoff to been our efficient gear innovations towards mechanism having we've allows all sales geared It's year. that market the already bring to and that And launched at on. towards,

were and SPM, I an new market innovation if is, as strong pressure those products lot will, XXXX, now talked testing, that for And CPM structure so operationalized such those are this here you a about of the some being how packaging or single test XXXX. we in of and Express, into

So towards been that part of a it's of number working a been [indiscernible]. the strategy for we're long-term -- we've

William Koefoed

Operator, please. next question

Operator

from line Next Murphy JPMorgan. question the Mark comes from of

Mark Murphy

B And $XX out value million as I'm QX pushed you we forecasted what that curious of Tom, the is as why $XX headwinds or be dollar cause just a of tariffs was close to rough closing well, but business there? thinking in you same something the of vast referenced, and should those million I like to to January. those Part on have were a think one majority the them If of they the said deals are question. closed push, the

be? I organizations is come why there's and feeling mean, that what business. around that clarity these are giving now So would tariffs to include

Thomas Shea

that. start, I'll on I'll Bill up and follow let then

think So the pushes saw you headwinds. about or the that we if

after think the call. alluded last I we earnings

macroeconomic the or about spectrum cautiously So the the geopolitical and terms general, in of look, just in what's we're optimistic in happening conditions. in in market

not deal tariffs, spend. alluding So another specifically see businesses have of a uncertainty that that to talking great but significant multinational uncertainty we're about we're in is which market

are Mark, that, when so about think headwinds. you definite those And

a there weak that QX if QX. -- 'XX a sorry, you're and so 'XX strong at in And weak dive 'XX I'll I'm strong a to, the QX XXXX a bit revenue, and difference alluding sorry, as really strong looking depth you're and Bill more let talking change a deltas -- you're again, XXXX, looking QX there in a about XQ was you're -- 'XX -- at ARR, and as in between into -- this were really

closer a to those going you're numbers that take we you to that it the have. that lot the and you're bring to see X going delta that If movements aligns together,

the year. this quarter -- we inverse had this So that again, of in we had

XX% the you that, clear are $X evidence up but up. We're We're And seeing that selling these hope -- so at are about there still transformational were of this deals. excited the selling demand. headwinds that million legitimate prospect we economic as headwinds. we're is And business, of Again, certainly our look year. large very deals we're

William Koefoed

as first generally, our would customers, in week mentioned, wasn't -- get deals in public actually the deal tariffs, February, one including to it that, required in customers, that urgency done with specific to of large And what add kind thankfully signature. that referenced. some Tom the thing saw of some sector was Tom cases, there an And just signed of certainty. just additional of general that January particularly Yes. by kind Mark, these It I and wasn't QX. just we just

able thanks So that I the appreciate clarification we offer. and to the question for were

please. Operator, next question

Operator

of Bank from the from question America. of Next line Koji Ikeda comes

Koji Ikeda

ask to I growth the potential for XXXX. on wanted

ARR. items want think the key I and when And at revs of XX% and in revenue growth is And grew so SaaS really total subscription focus I to when total on look extent, XX% your deck, at revenue, XXXX I that here, kind to an ARR. too. and I look subs like and ARR extrapolate could you that ARR, of component

for the like to it to the and if XX% XXs, and growth Total puts some in of -- for takes ARR accelerate subscription growth. ARR high XXXX So at here XXXX? growth day the XX% understand for to revenue the off of not grow really looks XXXX end trying

Thomas Shea

I of net -- what appropriately on Look, offered we've obviously, going conversions. at great working a you et growing quantitative the referenced. growth of level. guidance was we revenue, which on of side, I op And been I new on, total the cetera, for you thanks I by we've mentioned, ARR would But to think been Koji, say margin, start ARR, that. working on I'm some degree saying would some really that. is hard as SaaS on the revenue

as specific we subscription really we number. on we faster revenue expect than do don't remarks, working as And as mentioned guidance grow subscription hard in revenue, but I grow that to to offer we're fast my total So revenue can. obviously

So thanks for that.

Operator

Company. from question from Scott & Berg the line next of Our comes Needham

Unknown Analyst

guys both high are Scott given This is FedRAMP you pressure looking government for and year the Berg. How this authorization? opportunity spending the Black Ian at federal on

Thomas Shea

Scott. Thanks,

recently continue really look for FedRAMP strong and term the and and really then to because play, long moderate we opportunity invested win feel right? an to a we FedRAMP some quite our So for for to offering time efficiency more that a at have us, achieving and as big value right we're we still We've government. high offer

out market. the but that all we that not strategy change that in and our see potential So does headwinds there and long-term investment at are there, certainly

Operator

Wolfe of question line Alex the Zukin Research. comes next from Our from

Unknown Analyst

that for Maybe how much guidance? given And understand how that [indiscernible] geopolitical bit concern macro. been is buying you embedded Alex. has into importantly, This in more backdrop here you've has a taken been just the environment? around in certainty help us Can little more context in account of and calibrate the the the

Thomas Shea

any start maybe the urgency commentary he and general government large see can. any said -- So lack we off would we saw I'll think mall I financial think Bill to and When a buying, is we to it think. halts, Bill about a then I what we're consider didn't bit the of add abrupt little wants way in well QX, but for

And remember CFO, So I around some sensitive profile multinationals -- the the think of buyer. it uncertainty see are like. look pretty a feeling we might reflects around own around is you to think sell we sell that I to and in trade their cost particular, who what

you're particular, little a if their probably growing And so sense uncertainty of going it a we're own if and feel to first. coming bit a there's into in in CFO business

So kind out. wanted to a I that That's just of that's point something reality.

and our our down we executing giving feel offering product, guidance positive, our our heads prudent We're we're and keeping -- about strategy. game. are So again,

to all deliver the that this have year. the innovations lined market we and and and feel things So about the the up products to we bring great

to also strategy going control. So things we guidance on and for the but and execution prudent our ultimately, some can't -- we're offer just focus that

Operator

line Truist question Tillman the from Securities. Terry next Our comes from of

Terrell Tillman

else and point at market? from relationship relates that could a And they're market, helping business. standpoint my an seems you question like go inflection So then to the go in technologically to to primarily Microsoft talk go-to-market anybody about both the

Thomas Shea

that. take I'll Terry. Thanks,

the So are time, you really that our BI Connector to we're from we solution set see in and well. about we the to we be as BI our thrilled same well for sense Power Microsoft there brought a The to operational to seeing our in customer and us big sell -- that and CIL really obviously, broader and core and looking that ability can as relationship certified connectivity that combination continue, Power partner, becomes increasingly At important Microsoft relationship as and in we're we the bring AI you expand financial, opportunistic as analytics. market.

partnership, initiatives jointly we marketing and marketing So but a from not multiple that technical. perspective have only in

that thrilled well. Mike, into as and And that leaning so we're is we're Microsoft really

use And terms the experts to are as in so I what I of Artisan will. are you always CPM always historically. leaning GSIs product investing as a -- I experts the markets important terms foundational that the They're in multiplier, we're would that's refer we're our can channel -- looking in. partners, those our if core say an relationship in And then of to

as have also see, our on prior the well. was that that can partner SPM, partners developed you implementation solutions like Infinity As exchange to who an solutions

ecosystem I So That's value the we I at [indiscernible] powers more sunset, noting worthwhile -- the you're our seeing the of asset again, a us. this as and all as delivering them very continue customer more but remaining gross and XX% opportunity retention, customers empowers we're really that for to customers, this think attractive. increase in beginning, and then I say asset of it's they're to successful that and what that's to us giving alluded

on So in facilitating fronts. of and all we're those leaning investing and

Operator

Enders comes of Citi. Steve from line question next Our from the

Steven Enders

that's for It side it. wanted lower a I bit guess ask as little the year. well to on margin maybe of I looks like for the in coming

maybe what's think can you the maybe through incremental are or on accounted So coming for being where help outlook? maybe just margin from us investments

William Koefoed

Thanks, Steve. I'll take that one.

things. partnership is software and a people, to on we've Microsoft. X, customers. efficiency continue under also, drive our some value associated We're some improvements performance versions with migrating X of technology a mentioned, which think been which that perspective, So a And from from ago, migrating we bit that. we've prior to driven and I we announced Tom has a couple for got to version as there's the strong little innovate One platform costs for customer with migration customers our relationship years our strong of that

the does Tom as asset, implications. we but does think the talked benefit, margin long-term about, huge -- important, Tom our but for customers it's store have talked company, have a data is that which we're drivers that massive of on amount working gross before, to about the that is seeking through some the and are OneStream success obviously, One of both some just platform, of the

We for our but So my in think that as we're XX% efficient, advantage about. are remarks, talked take be and customers the continue keeping working that assets want opportunities of that mentioned Tom we that, to to I there's long-term through retention to it. that think value driving gross we more

question. great So

Operator

of from James. Brian question the line next Peterson from Our comes Raymond

Brian Peterson

maybe think the that customers Bill, customer versions we and of we where us going could should for the still are migration about terms sense of on you conversion pretty Any on that's in know that XXXX. update are how well. base. I through older

William Koefoed

the Yes. Page it's by Brian, Thanks give number had the summer, you you on here, as ARR for in did type I all for last contract by X. actually customers in of legacy asked deck, -- did annual I slide the question. on

questions So are you XX% can the was term-based X%. perpetual. that's one on licenses get a sense, on still think that. There's the percent And earlier of there's that They're still. I on

we're that to So and SaaS, to work do get we're conversion XX% over on but to we're have happy that on it's that next -- it's so few work on still some we the going XXX%, years. the that

summer. gave So your we And appreciate responsiveness to from hopefully, question that. the I'll last I that appreciate

Operator

question Sandler. from Brent from of line Bracelin the Piper next comes Our

Brent Bracelin

more are Bill, I commercial AI a double on to into little uncertainty uncertainty? But portion commentary us this click to this appreciate I year. actually or finance the comes revenue wanted year sector. public Can grow, decline expecting be going area remind government That public to you bullish on products the flat seems And sector? you what remain of that? from given that an

William Koefoed

the I many mentioned, that FedRAMP that to multiyear, with the high. investment bullish FedRAMP actually to we high. There's significant not companies get with along FedRAMP the for very super we be that Tom are question. government opportunity Thanks is mean, on high. have ahead this we're that a made

think uncertainty OneStream And offers helping But us there. so within for think do that efficiency back be efficiency support really our opportunity that there's effective at there. overall to we the earlier Obviously, can we government. and additional commentary, unlocks federal government

offering. in that look, Tom sector win the have the question. But off had that we advantages public for as going a early earlier, to XXXX, hard overall we're no, and continue to we to that our -- benefits so have here And mentioned thanks work we're software we and -- play the with with

Operator

comes Loop of Our Markets. next line question Mark the Capital from Schappel from

Mark Schappel

solutions. Bill, just increasing, if seeing it discuss I Directionally, is sensible same? staying attach you're your ML you for wondering the the could was rate

William Koefoed

I'm answer he's this to take let going Tom This excited one. to -- is that.

Thomas Shea

thesis to to market a the say we look do statistics Well, that reference pleased OneStream's year do business in we for continue of And really customer as with going Part collecting. the market to that bring I has we thank we're as validation. what this, we to every have can XXXX business you progression you to were that they're hear -- question. the the launched of we be at business product that a -- performance from will and we they that -- the products is say do. as over the of a in the ago, that of that

every going is to as eventually, sample use to got and to is improve or customer some across cases good shape continue a use this in feel this every to refer at as we form set going, a want the we've is this going it why that's multiple way, customer look -- those transformative that to industries, product we in -- we term. So long

want fanatical That's product why our it. So we're processes and capabilities these they going want done, their I we'll our we advanced I actually advanced they keep be on reiterating more retention just gross to them finance AI delight their help better and and keep working use have the as get once they to stay on products ultimately core that. innovating, about to well. if become more And in because customers, to so that again, keep opportunity we're

for rate potential about excited excited. of the I'm that So attach the product, very

Operator

TD from comes final the today then for Our line Wood of question from Cowen. Derrick

Unknown Analyst

the any Jared Dundon an could changes on del displacement Wood. seeing legacy and greenfield for On is on you're activity, market? in Derek update you provide This

William Koefoed

Sorry, legacy of in terms replacement?

Unknown Analyst

greenfield vendors and the Displacing then well. legacy as side on

Thomas Shea

team, give their it it to to the and to world in but our to all by maturity way the it's out. is that them much as a same Fortune their market grow what business and again, platform, that the that a shape same packaged that have businesses you of cases, really all you want lots to opportunity don't So examples -- you at we're a a replaced. of of include, look that of pulling from us has with learned we multiple as necessarily rationalize. aimed look looking the core in then companies can And software not about what is that's biggest change form finance sizes to X. with of working continuing any they're through of prescriptive being some the have take earlier at as see about you What's reiterating for maturity, that and or if It's their as with sort And doesn't we're that's much to to CPM seeing that. in businesses number this, we as those my aimed product lot platform. the to some in are hear faster don't greenfields. on-ramp that of a That after, That almost talk faster not be Express, of as to with a as get new the we solution. legacy the idea the important we on-ramp is do the go are products the remarks And in at do off we've the time,

a of single platform. easier When it been of summary, legacy markets an really to at to rationalize get allows of long-term In able part debt. to that a CPM that covering low best to our at the it's has off technical continuing data kind our innovate being show we're us with and -- be to is growth we're as ramp, and and replacement same product provide innovate. of I on the new on it's plan. way value is part all customers. they're of excited. So And continuing our them say attractive to We're easier that model CPM in help as the show on-ramp a individuals newer use -- and time, if for way those onto our to to to

William Koefoed

participating. that's So everybody our up wrap to going really appreciate I call.

Stanley at early be conference March. Morgan in will the We

to we week. And obviously time of we reach hope So out our great there. rest of please company. the Thank And if see everybody's support hope to like -- set Please you'd -- them us. appreciate up a you with have you to you.

Operator

Thank This you, today's gentlemen, conclude ladies for and your in program. participation conference. does the

You may disconnect. now Good day.

OneStream, Inc. Class A Common Stock (OS) 11 Feb 252024 Q4 Earnings call transcript