OneStream, Inc. Q1 FY2025 earnings call

• 2025 started strongly with 24% revenue growth and 26% free cash flow margin. - Saw momentum for SensibleAI machine learning product and commercial business. - Recognized as a Leader in Financial Close and Consolidation Solutions by Gartner and a Leader in Financial Performance Management solutions by BARC for the third and fifth consecutive years respectively. - Launched CPM Express, ESG Reporting & Planning, and updated pricing/packaging. - International business had 40% revenue growth with a large European retail group signing a multiyear engagement. - SensibleAI Forecast bookings grew over 50% year-over-year. - Focus on unified platform, Finance AI, and infinite extensibility to help companies navigate market complexities.

Total revenue for the first quarter was $136 million, representing a 24% year-over-year growth. Subscription revenue increased 31% year-over-year to $125 million. License revenue was $4 million, down 40% due to customer SaaS conversions. Professional Services and Other revenue was $8 million. The international business had a 40% year-over-year revenue growth, accounting for more than 30% of total revenue. Billings increased 30% year-over-year to $154 million, and trailing 12-month billings were up 24%. Total RPO grew 24% year-over-year to $1.1 billion.

• Reiterated 2025 revenue guidance of 20% year-over-year growth. - Q2 2025 total revenue expected $140 million to $142 million, non-GAAP operating margin 2% to 0%, non-GAAP net income per share 0 cents to $0.2, stock-based compensation $30 million to $35 million. - Full-year 2025 total revenue expected $583 million to $587 million, non-GAAP operating margin 0% to 2%, non-GAAP net income per share $0.05 to $0.13, stock-based compensation $120 million to $130 million.

• Heightened macroeconomic uncertainty with potential slowdown in spending, deal headwinds, and downsells due to budget tightening and government restructuring. - Ongoing customer conversions to SaaS impacting license revenue. - FX rate variability as a potential tailwind/headwind depending on trend.

Q: John DiFucci from Guggenheim Securities asked about potential demand issues and leading indicators.

A: Bill Koefoed responded that leading indicators are positive, had the strongest sales pipeline ever, but was cautious due to macro uncertainty.

Q: Adam Hotchkiss from Goldman Sachs asked about CPM Express and time to value.

A: Tom Shea responded that CPM Express is for faster onboarding and enables AI integration with faster time to value.

Q: Koji Ikeda from Bank of America asked about revenue guide changes.

A: Bill Koefoed stated they are being cautious due to macroeconomic announcements but leading indicators are positive.

Q: Ryan Krieger from Wolfe Research asked about end market bookings trends.

A: Bill Koefoed and Tom Shea discussed legacy replacements, new customers, and AI as drivers of bookings.

Q: Brent Bracelin from Piper Sandler asked about sales pipeline recovery.

A: Bill Koefoed said sales team is focused and disciplined with strong pipeline.

Q: Sonak Kolar from J.P. Morgan asked about federal spending.

A: Bill Koefoed was optimistic about federal business as an efficiency play but noted Q3 is renewal quarter.

Q: Steve Enders from Citi asked about pricing and packaging changes.

A: Tom Shea said it's an evolution to be easy to do business with and capture value of new offerings.

Q: Terry Tillman from Truist Securities asked about SensibleAI Forecast tipping point.

A: Tom Shea discussed validation and excitement around SensibleAI Forecast with upcoming AI portfolio announcements.

Q: Siti Panigrahi from Mizuho asked about international pipeline.

A: Tom Shea talked about investments in international markets and long-term growth potential.

Q: Chris Quatrochi from Morgan Stanley asked about ESP solution feedback.

A: Tom Shea said ESG is an example of platform extensibility with customer leverage on core work.

Q: Brian Peterson from Raymond James asked about AI in customer conversations.

A: Tom Shea said AI is part of every sales pitch as it's foundational to OneStream's message.

Q: Nick Goldman from Scotiabank asked about past learnings and macro adjustments.

A: Tom Shea said focus on discipline and efficient growth regardless of macro conditions.

Q: Patrick Scholes from Baird asked about margin guide changes.

A: Bill Koefoed said slower hiring growth and strategic CFO role helped margins.

Q: Derrick Wood from TD Cowen asked about net new customer growth.

A: Tom Shea talked about multiple growth vectors including AI and commercial side.

Q: Daniel Jester from BMO Capital Markets asked about partner investments.

A: Tom Shea discussed healthy partner community and acquisition of partner generated solutions.

Q: Andrew DeGasperi from BNP Paribas asked about federal executive order.

A: Bill Koefoed said OneStream is well-positioned for federal modernization due to FedRAMP High certification.

Q: Mark Schappel from Loop Capital Markets asked about international demand and competition.

A: Tom Shea talked about interest in modernization in Europe and strong positioning with product announcements.