Onestream, Inc. Class A ((OS)) has held its Q4 earnings call. Read on for the main highlights of the call.
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The latest earnings call from Onestream, Inc. Class A conveyed a generally positive sentiment, underlined by robust revenue and subscription growth, high customer retention rates, and noteworthy product innovations. Despite these strengths, the company acknowledged challenges stemming from macroeconomic factors and foreign exchange fluctuations, which have influenced certain financial metrics.
Revenue Growth and Cash Flow
OneStream reported impressive financial performance with a 29% year-over-year revenue growth for Q4 and 31% for the full year 2024. Furthermore, the company generated $59 million in free cash flow and achieved non-GAAP operating profitability, signaling strong financial health and efficient management.
Strong Subscription Revenue and Gross Retention
The company highlighted a 41% year-over-year increase in subscription revenue and a 98% gross retention rate. These figures suggest strong customer satisfaction and suggest that OneStream’s platform remains highly attractive and effective for its users.
Innovation and Product Expansion
OneStream introduced 15 new innovations, including Finance AI solutions and CPM Express for quicker implementations. The company also achieved FedRAMP High authorization, paving the way for expansion into federal government sectors, showcasing its commitment to innovation and market expansion.
Successful IPO and Industry Recognition
The company completed a successful IPO and was recognized as a leader in both Gartner’s Magic Quadrant and IDC’s assessments. These accolades reinforce OneStream’s strong market position and industry leadership.
Macroeconomic and Geopolitical Challenges
The earnings call also touched upon uncertainties related to tariffs and geopolitical tensions, which have affected deal closures, particularly impacting large multinational and public sector markets.
Foreign Exchange Impact
The company reported that significant changes in foreign exchange rates negatively impacted financial metrics such as ARR and RPO by approximately 2%, posing challenges to the financial outlook.
Near-term License Revenue Headwinds
OneStream’s transition towards a 100% SaaS model presents a near-term headwind for license revenue, which has affected overall revenue growth. This strategic shift, while challenging in the short term, is expected to align with broader industry trends.
Forward-looking Guidance
Looking ahead, OneStream provided guidance for the first quarter ending March 31, 2025, and the fiscal year ending December 31, 2025. For fiscal year 2025, the company anticipates total revenue between $583 million and $587 million, with a non-GAAP operating margin ranging from minus 1% to plus 1%. Earnings per share are expected to be between $0.01 and $0.09, with equity-based compensation estimated at $125 million to $135 million. For Q1 2025, anticipated total revenue is between $130 million and $132 million, with a non-GAAP operating margin from minus 9% to minus 7% and earnings per share from minus $0.04 to minus $0.02. Part of this guidance considers the strong U.S. dollar’s impact on international business.
The earnings call from OneStream, Inc. Class A highlighted a positive trajectory in revenue and subscription growth, backed by high customer retention and strategic innovations. However, the company remains vigilant of macroeconomic challenges and foreign exchange impacts. As OneStream progresses towards a SaaS-focused model, its forward-looking guidance reveals optimism tempered with caution, reflecting both the opportunities and hurdles it faces in the near future.
