Ryan Krieger

Ryan Krieger, on for Alex Zukin, asked about early learnings from OneStream's AI monetization strategy since the Splash conference and any adjustments being made.

Answer

CEO & President Tom Shea detailed the multi-faceted pricing strategy: a hybrid, usage-based model for Sensible AI Forecast; a platform-tiered model for Sensible AI Studio; and a usage-based model currently being validated for Sensible AI agents. He stressed the overarching goal is to create a low-friction, predictable pricing process for customers to easily adopt the AI capabilities.

Ryan Krieger from Wolfe Research asked about bookings trends, specifically the mix between legacy system replacements and non-core solutions, and whether new products like SensibleAI and CPM Express are increasing the non-core mix.

Answer

CFO Bill Koefoed noted that over 60% of business comes from new customers, creating future upsell opportunities. CEO Tom Shea added that customers typically start with core financial needs, then move to operational analytics, and finally to AI, creating a full-circle journey that leverages the entire platform.

Ryan Krieger asked for additional color on the strong Net Retention Rate (NRR) this quarter, requesting a breakdown of the contribution from pricing versus solution expansion. He also asked for the outlook on NRR for the remainder of the year.

Answer

CFO Jill Klindt confirmed the NRR was a high point, driven primarily by the successful upsell of additional solutions into the existing customer base. She noted that while price increases are a factor, the majority of the uplift consistently comes from expansion sales. For the rest of the year, she stated that a rate of 110% or higher is still considered a good result, as the metric can fluctuate with currency and the mix of new versus expansion sales.

Ryan Krieger asked if the cautious buying behavior was concentrated in specific verticals or regions and inquired about Workiva's pricing philosophy and its use as a growth lever.

Answer

CEO Julie Iskow responded that the cautious behavior was broad-based and not specific to any geography or solution. On pricing, she explained that the primary philosophy is to deliver value by cross-selling and up-selling additional solutions, rather than relying on aggressive price increases, although routine increases on renewals are now standard practice.

Ryan Krieger of Wolfe Research asked if the healthier buying environment showed particular strength in specific verticals or geographies. He also inquired if the record bookings were influenced by one-time dynamics or pull-forwards from Q4.

Answer

CEO Julie Iskow stated the company saw broad-based demand across its entire solution portfolio and all geographies. CFO Jill Klindt confirmed there was no pull-forward of deals from Q4, attributing the strong results to solid execution and a positive buying environment that persisted through Q2 and Q3.

Ryan Krieger, on for Alex Zukin, asked about AI adoption, specifically the per-employee-per-month (PEPM) uplift from AI deals, and which other AI features are gaining traction beyond the Copilot.

Answer

CEO David Ossip reported a strong 50% attach rate for the AI assistant (formerly Copilot) on new deals. He highlighted that Dayforce's single database architecture provides a distinct advantage, allowing AI to be embedded 'everywhere.' The company is launching a series of new AI agents for HR, payroll, and talent throughout the year, creating further upsell opportunities across its nearly 7,000 customers.

Ryan Krieger asked how the ACV uplift from the new pricing model is tracking against its 1-2% growth target and how to think about the Net Retention Rate (NRR) trajectory for the rest of the year.

Answer

CFO Patrick Villanova confirmed they are on pace, and slightly ahead of schedule, to achieve the 1-2% growth expansion from the new pricing model over their 3-5 year target. Regarding NRR, he reiterated confidence in the path from the current 104% toward their long-term target of 109%, expecting a consistent, though not perfectly linear, uptick.

Ryan Krieger asked if the strong performance of the strategic product portfolio is the new normal and whether the record free cash flow in the quarter was influenced by any one-time events.

Answer

CFO Mark Partin confirmed the record free cash flow was not due to any anomalies but was a result of strong profitability and operational execution. Regarding strategic products, he stated the current mix of 25-30% of sales is the right balance, with future increases dependent on landing large, multi-product digital transformation deals. Co-CEO Owen Ryan added that this trend should continue as they guide customers through their transformation journey, though large intercompany deals could create some volatility.