8-K: OneStream Reports Strong Q2 2024 Results, Revenue Up 36% Year-Over-Year

OneStream announced a 36% year-over-year increase in total revenue for the second quarter of 2024, driven by a 44% surge in subscription revenue.

Summary

• OneStream reported its financial results for the second quarter of 2024, ending June 30, 2024.
• Total revenue reached $117.5 million, a 36% increase compared to the same quarter last year.
• Subscription revenue was a significant driver, growing by 44% year-over-year to $103.1 million.
• The company's GAAP operating loss improved to $11.6 million, compared to a $16.2 million loss in Q2 2023.
• Non-GAAP operating loss also improved, coming in at $8.7 million, compared to $13.3 million in the prior year.
• OneStream completed its IPO on July 25, 2024, raising net proceeds of $352.9 million.
• The company is providing guidance for Q3 2024 with total revenue expected to be between $123 million and $125 million and a non-GAAP operating margin between -2% and 0%.
• For the full year 2024, total revenue is projected to be between $476 million and $480 million, with a non-GAAP operating margin between -5% and -1%.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to strong revenue growth, improved operating losses, and a successful IPO. The company's future outlook is also positive, although it includes a non-GAAP operating loss. The company is also winning workplace awards which is a positive sign.

Positives

• The company experienced strong revenue growth, with total revenue up 36% year-over-year.
• Subscription revenue saw a significant increase of 44% year-over-year.
• Both GAAP and non-GAAP operating losses improved compared to the same quarter last year.
• OneStream achieved positive cash flow from operations and free cash flow for the third consecutive quarter.
• The successful IPO generated substantial net proceeds of $352.9 million.
• The company received multiple workplace awards, indicating a positive work environment.

Negatives

• The company still reported a GAAP operating loss of $11.6 million for the quarter.
• The company still reported a non-GAAP operating loss of $8.7 million for the quarter.
• The company is forecasting a non-GAAP operating loss for the full year 2024.

Risks

• The company's forward-looking statements are subject to known and unknown risks and uncertainties.
• The company's actual results may differ materially from those anticipated in forward-looking statements.
• The company is unable to predict with reasonable certainty the amount and timing of adjustments used to calculate non-GAAP financial measures, particularly related to stock-based compensation.

Future Outlook

OneStream is providing guidance for Q3 2024 with total revenue expected to be between $123 million and $125 million and a non-GAAP operating margin between -2% and 0%. For the full year 2024, total revenue is projected to be between $476 million and $480 million, with a non-GAAP operating margin between -5% and -1%.

Management Comments

• Tom Shea, CEO of OneStream, stated that the strong top-line growth underscores the company's continued momentum.
• Tom Shea also noted that CFOs are being asked to strategically guide businesses towards growth in a volatile economic environment.
• The CEO believes OneStream is well-positioned to empower the Office of the CFO with the operating system for modern finance.

Industry Context

OneStream's results reflect a broader trend of companies seeking to modernize their finance functions, particularly in the face of economic uncertainty. The demand for unified financial and operational data platforms is increasing, and OneStream is positioning itself to capitalize on this trend.

Comparison to Industry Standards

• OneStream's 36% year-over-year revenue growth is strong compared to the broader enterprise software market, which typically sees growth in the low to mid-teens.
• Companies like Anaplan and Workday, which also offer cloud-based financial planning solutions, have reported similar growth rates in their subscription revenues, indicating a competitive but growing market.
• The improvement in OneStream's operating loss margins, while still negative, is a positive sign compared to other high-growth SaaS companies that often prioritize revenue growth over immediate profitability.
• The successful IPO and the $352.9 million in net proceeds provide OneStream with a significant capital base to invest in further growth and product development, which is a key differentiator compared to some of its privately held competitors.

Stakeholder Impact

• Shareholders will likely view the strong revenue growth and improved operating losses positively.
• Employees may be encouraged by the company's recognition as a top workplace.
• Customers may benefit from the company's continued investment in product development and innovation.
• Suppliers and partners may see increased opportunities for collaboration and growth.

Next Steps

• OneStream will host a conference call for analysts and investors to discuss its financial results.
• The company will participate in the Citi 2024 Global TMT Conference on September 5, 2024.
• The company will participate in the Goldman Sachs Communacopia & Technology Conference on September 11, 2024.
• The company expects to file its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, with the SEC on or around the date of the press release.

Key Dates

Keywords

OneStream, Financial Results, Q2 2024, Subscription Revenue, Operating Loss, IPO, Software, Finance Management, Cloud Platform, Non-GAAP, Revenue Growth