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OI

OneStream, Inc. (OS)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $132.5M (+29% YoY), with subscription revenue $118.6M (+35% YoY); OneStream delivered non-GAAP profitability and strong free cash flow, capping FY24 at $489.4M revenue (+31% YoY) and $58.5M FCF .
  • Versus Q3 guidance, OneStream significantly beat Q4 targets: revenue exceeded the $127–$129M range, non-GAAP operating margin reached 7% versus 0–2%, and non-GAAP EPS was $0.07 vs guidance $0.01–$0.03; FY24 revenue and profitability also landed above guidance ranges .
  • Management highlighted FX headwinds (USD strength ~6% in Q4) that reduced growth metrics (ARR, RPO, billings) by ~2%, and increased deal scrutiny at large multinationals/public sector that pushed some deals into early Q1; most have since closed .
  • FY25 outlook embeds USD strength: total revenue $583–$587M, non-GAAP operating margin -1% to +1%, non-GAAP EPS $0.01–$0.09; Q1’25 revenue $130–$132M with non-GAAP operating margin -9% to -7%; catalysts include accelerating Finance AI adoption, FedRAMP High authorization, and deeper Microsoft integrations .

What Went Well and What Went Wrong

What Went Well

  • Subscription momentum and profitability: “we posted 35% year-over-year subscription revenue growth in the fourth quarter, and were free cash flow positive and non-GAAP profitable” .
  • AI and product innovation drove customer wins and attach: “customers… reported initial forecast accuracy improvements of over 20%, while speeding forecast cycles by more than 80%” via Sensible ML; OneStream showcased 15 innovations in 2024, including CPM Express and ESG solutions .
  • KPI strength and international expansion: Q4 billings hit a record $167M, 12‑month CRPO +36% YoY, total RPO $1.1B; international revenue grew 49% YoY and now 32% of revenue; gross and net dollar retention were 98% and 113%, respectively .

What Went Wrong

  • FX headwinds reduced reported growth by ~2% in ARR/RPO/billings; USD strengthened ~6% from Sep 30 to Dec 31 .
  • Deal scrutiny and elongated approvals at large multinationals/public sector reduced urgency; several Q4 deals slipped but “the vast majority” closed in Jan/early Feb, including a notable public sector win .
  • GAAP profitability impacted by equity-based compensation: Q4 SBC was $52.6M (FY24 $316.4M), driving Q4 GAAP operating loss of $47.4M and FY GAAP operating loss of $319.5M; software gross margin fell to 76% from 78% last year due to license mix .

Financial Results

Revenue and Profitability (Quarterly)

MetricQ2 2024Q3 2024Q4 2024
Total Revenue ($M)$117.5 $129.1 $132.5
Subscription Revenue ($M)$103.1 $110.7 $118.6
License Revenue ($M)$6.9 $11.7 $7.0
Professional Services & Other ($M)$7.5 $6.7 $6.9
GAAP Operating Loss ($M)$(11.6) $(255.2) $(47.4)
GAAP Operating Margin (%)(10%) (198%) (36%)
Non-GAAP Operating Income ($M)$(8.7) $5.5 $8.7
Non-GAAP Operating Margin (%)(7%) 4% 7%
Non-GAAP Gross Margin (%)N/A71% 70%
Free Cash Flow ($M)$7.7 $1.3 $24.7
GAAP Basic EPSN/A$(1.06) $(0.19)
Non-GAAP EPSN/AN/A$0.07

Notes: Q4 non-GAAP EPS and operating margin slightly differ between press and call due to rounding (non-GAAP op income $8.7M vs ~$9M, FCF $24.7M vs ~$25M) .

Segment Revenue Mix (Quarterly)

Revenue Segment ($M)Q2 2024Q3 2024Q4 2024
Subscription$103.1 $110.7 $118.6
License$6.9 $11.7 $7.0
Professional Services & Other$7.5 $6.7 $6.9

Key KPIs

KPIQ3 2024Q4 2024
Billings ($M)$149 $167
12‑month CRPO (YoY)+41% +36%
Total RPO ($B)$0.997 $1.1
ARR ($M)N/A$568
Total Customers1,534 1,601
Gross Retention (%)N/A98%
Net Dollar Retention (%)N/A113%
International Revenue ($M)N/A$46 (Q4)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent/ActualChange
Total RevenueQ4 2024$127M–$129M $132.5M Beat
Non-GAAP Operating MarginQ4 20240%–2% 7% Beat
Non-GAAP EPSQ4 2024$0.01–$0.03 $0.07 Beat
Equity-Based CompensationQ4 2024$50M–$55M $52.6M Within
Total RevenueFY 2024$484M–$486M $489.4M Beat
Non-GAAP Operating MarginFY 2024(2%)–(1%) 0% Beat
Non-GAAP EPSFY 2024$0.06–$0.08 $0.14 Beat
Equity-Based CompensationFY 2024$315M–$320M $316.4M Within
Total RevenueQ1 2025N/A$130M–$132M Initiated
Non-GAAP Operating MarginQ1 2025N/A(9%)–(7%) Initiated
Non-GAAP EPSQ1 2025N/A$(0.04)–$(0.02) Initiated
Equity-Based CompensationQ1 2025N/A$45M–$50M Initiated
Total RevenueFY 2025N/A$583M–$587M Initiated
Non-GAAP Operating MarginFY 2025N/A(1%)–1% Initiated
Non-GAAP EPSFY 2025N/A$0.01–$0.09 Initiated
Equity-Based CompensationFY 2025N/A$125M–$135M Initiated

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
Finance AI (Sensible ML)Expanded AI roadmap; initial customer successes and 15 innovations unveiled across Splash/Wave Reported >20% accuracy gains, >80% cycle time reductions; 40+ ESG customers; continued SML expansion and new AI library/GenAI roadmap Improving
Macro/FXStable demand; IPO-related SBC in Q3; billings strong; marketing/pricing investments ramping USD strength (~6%) cut ~2% off ARR/RPO/billings; deal scrutiny and slower sign-offs in large MNCs/public sector, most moved to Jan/Feb Deteriorated (near-term)
Public Sector & FedRAMPSignificant Q3 government wins (DLA, large DC agency) FedRAMP High authorization achieved, enabling more sensitive workloads; early 2025 public sector win Improving
Microsoft PartnershipCertified Power BI connector and deeper integrations “Deeper integrations” into Office 365; leveraging MSFT channel/tech co‑marketing Improving
Pricing & PackagingEarly work on streamlined packaging Solution-based packaging launched at sales kickoff; operationalizing CPM Express/SPM in 2025 Improving
SaaS ConversionSeveral Q3 term-to-SaaS conversions; 80% ARR on SaaS Continued strong conversions; focus on 100% SaaS over time Improving
Regional Trends~30% revenue from international (Q3) International revenue grew 49% YoY; 32% of total FY revenue Improving

Management Commentary

  • CEO: “2024 was one of the most transformative years in our history, with the introduction of 15 new innovations, highlighted by our growing Finance AI portfolio” .
  • CFO on FX: “the sudden strengthening of the U.S. dollar by roughly 6%... negatively impacted some of our financial growth metrics by approximately 2%” .
  • CEO on demand: “despite some near-term headwinds, demand for OneStream remains strong, and we are optimistic heading into the year” .
  • CFO on margins: “non-GAAP software gross margin was 76%, compared with 78% last year due to license mix… we continue to optimize infrastructure costs” .
  • CEO on FedRAMP: “effective January 25, the OneStream platform has received FedRAMP high authorization” .

Q&A Highlights

  • FX vs operational headwinds: Management quantified ~2% FX drag on growth metrics and noted a lack of urgency rather than halted demand at large customers; most delayed deals closed early Q1 .
  • Packaging/NRR: New packaging supports multiproduct strategy (SML, SPM, ESG) and efficient go‑to‑market; designed to streamline expansion within the base .
  • ARR/SaaS mix/growth: Subscription revenue expected to grow faster than total revenue; ~80% ARR on SaaS with continued conversions targeted toward 100% over time .
  • Public sector trajectory: FedRAMP High unlocks more federal opportunities; despite budget uncertainty, OneStream’s efficiency value proposition remains compelling .
  • Margin outlook: Investments include migrating customers to v8 and supporting large data storage demands; expect long-term efficiency improvements while maintaining retention .

Estimates Context

  • Wall Street consensus from S&P Global was unavailable at the time of analysis due to data access limits. As a result, formal comparisons to consensus EPS/revenue estimates are not provided.
  • Nonetheless, OneStream’s Q4 results materially exceeded its own guidance ranges (revenue, non-GAAP operating margin, and non-GAAP EPS), suggesting upward pressure on near-term consensus trajectory absent FX headwinds .

Key Takeaways for Investors

  • Clear beat vs guidance across Q4 and FY24, with subscription growth and non-GAAP profitability/FCF underscoring operating leverage and demand resilience despite FX .
  • Near-term caution embedded in FY25 outlook (USD strength, public sector/multinational approval cadence) should temper top-line expectations; monitor FX and government procurement velocity .
  • Finance AI momentum and multiproduct packaging (SML, CPM Express, ESG, SPM) are strategic growth levers, likely to drive attach and expansion in the installed base .
  • Public sector exposure is a medium-term upside call option post-FedRAMP High; track federal deals and partner execution .
  • Continued SaaS conversions (80% ARR on SaaS) support durable, recurring growth and cross-sell of AI/features; expect license mix to weigh near-term software gross margin but aid long-term quality of revenue .
  • Watch billings/CRPO/RPO and retention metrics (98%/113% in Q4) for forward demand signals; these remain robust even with FX headwinds .
  • Trading lens: near-term volatility around FX/public sector may create entry points; catalysts include AI product launches, Microsoft integration depth, and improved macro clarity; sustained beats vs internal guidance have historically supported upside .

Sources

  • Q4 2024 Form 8-K and Exhibit 99.1 earnings press release
  • Q4 2024 earnings call transcript
  • Q3 2024 press release and call
  • Q2 2024 press release