OneStream, Inc. Class A Common Stock (OS) 7 Nov 24 2024 Q3 Earnings call transcript

In OneStream's recent earnings call for the third quarter of 2024, the company showcased its robust financial performance, highlighting a 39% year-over-year growth in subscription revenue and a return to free cash flow positivity. The call, led by VP of Investor Relations and Strategic Finance, Annie Leschin, Co-Founder and CEO, Tom Shea, and CFO, Bill Koefoed, provided insights into the company's strategic initiatives, market trends, and future outlook.

Key Themes and Trends

OneStream's third quarter results reflect a strong performance, with the company demonstrating a focus on innovation and strategic partnerships. The company's subscription revenue grew by 39% year-over-year, and it returned to free cash flow positivity, underscoring its financial health and operational efficiency.

OneStream's platform, which combines financial and operational data with analytical and performance management capabilities, continues to gain traction in the market. The company's unified view of financial and operational data is particularly attractive to CFOs, who are increasingly being tasked with driving strategic value for their organizations. This trend was echoed in the findings of OneStream's finance 2035 initiatives, which highlighted the need for a cloud-native CPM solution to provide a single view into financial and operational data across the enterprise.

Market Opportunities and Strategic Partnerships

OneStream's success is underpinned by its ability to address key market trends, such as the digitization of finance and the need for CFOs to transition from reporting to strategic decision-making. The company's cloud-native CPM solution is well-positioned to meet these demands, with its unified data model and advanced AI capabilities.

OneStream's strategic partnerships have been instrumental in driving its growth. The company's recent user conference in Copenhagen showcased its expanding partnerships with BDO, Ilumya, and AMCO, all of which are built atop the OneStream platform. These partnerships demonstrate OneStream's commitment to continually adding value to its customers' investments and its focus on driving innovation and market leadership.

Investor and Analyst Questions

During the Q&A session, key shareholders and investors asked insightful questions about OneStream's market positioning, competitive landscape, and future growth prospects. These interactions provided valuable insights into the concerns and expectations of influential stakeholders, shedding light on the company's relationship with its investors and the importance of its strategic initiatives.

Looking Ahead

OneStream's third quarter earnings call underscores its strong financial performance and strategic vision. The company's focus on innovation, market opportunities, and strategic partnerships positions it well for future growth. As it continues to expand its product offerings and deepen its market presence, OneStream is poised to capitalize on the evolving needs of the finance function and drive sustainable value for its customers.