OneStream, Inc. Q2 FY2025 earnings call

• Strong subscription revenue growth of 30% year-over-year and total revenue growth of 26% year-over-year. - Record attendance at Splash user conference and product/AI innovations like SensibleAI Forecast, Studio, and Agents. - Genesis plug-and-play architecture is generally available, with interest from customers and partners. - International business had strong performance with 34% year-over-year revenue growth. - Continued to see over 60% of bookings from new customers. - Ended the quarter with nearly 1,700 customers, up 14% year-over-year.

Total revenue for the second quarter of 2025 grew 26% year-over-year to $148 million. Subscription revenue increased 30% year-over-year to $134 million. License revenue declined $900,000 compared to the prior year, while professional services and other revenue was up $500,000. International business had revenue growth of 34% year-over-year, contributing 33% to total revenue. Ended the quarter with nearly 1,700 customers, up 14% year-over-year. Billings increased 20% year-over-year to $151 million and 23% on a trailing 12-month basis. Total RPO grew 21% year-over-year to $1.2 billion. Q2 non-GAAP gross margin was 70% compared with 69% last year, non-GAAP operating income was $1.6 million, and non-GAAP net income was $9 million.

• Increased full-year 2025 revenue guidance to between $586 million to $590 million. - Q3 2025 total revenue expected to be between $147 million to $149 million, subscription revenue growth at least 25% year-over-year, billings between $160 million to $162 million, free cash flow breakeven to slightly negative, non-GAAP operating margin 0% to 2%, non-GAAP net income per share $0.01 to $0.03. - Full-year 2025 non-GAAP operating margin expected to be between 1% to 3%, non-GAAP net income per share between $0.07 to $0.15.

• Forward-looking statements subject to known and unknown risks, uncertainties, assumptions, etc. - Uncertainty in U.S. federal public sector spending and restructuring impacting Q3 revenue growth. - Macro environment uncertainties affecting deal delays and ERP migrations.

Q: John DiFucci from Guggenheim Securities asked about go-to-market steps to drive expansion outside the office of the CFO.

A: Tom Shea discussed focusing on targeted use cases, showcasing ESG product leveraging AFA technologies, and productization via plug-and-play architecture.

Q: Chris Quintero from Morgan Stanley asked about macro environment.

A: Bill Koefoed stated strong Q2 performance, strong pipeline, and confidence in executing pipeline in the second half.

Q: Adam Hotchkiss from Goldman Sachs asked about CPM Express.

A: Tom Shea talked about CPM Express underpinning productization strategy, fast implementation, and positive sales enablement.

Q: Koji Ikeda from Bank of America asked about SaaS propensity and CPM Express in guidance.

A: Bill Koefoed mentioned contemplating federal contracts migrating to SaaS and CPM Express's role in speed of implementation.

Q: Alex Zukin from Wolfe Research asked about AI monetization.

A: Tom Shea discussed hybrid pricing structures for AI solutions like SensibleAI Forecast, Studio, and Agents, with usage and platform-oriented pricing.

Q: Brent Bracelin from Piper Sandler asked about AI model disruption.

A: Bill Koefoed stated AI is an accelerant, not replacing application layer, and CFOs need trust and transparency.

Q: Steve Enders from Citi asked about go-to-market approach with AI portfolio.

A: Tom Shea talked about productizing solutions, demonstrating extreme value on use cases, and trust/transparency with agents.

Q: Scott Berg from Needham & Company asked about North American enterprise business performance.

A: Bill Koefoed mentioned over 60% new business from new customers, and add-ons up 10% per customer.

Q: Terrell Tillman from Truist Securities asked about Genesis as revenue opportunity and billings.

A: Tom Shea discussed Genesis having pathways to revenue through content blocks, new solutions, and marketplace/ISV participation; Bill Koefoed explained billings guidance as TTM analysis.

Q: Rob Oliver from Baird asked about federal business pipeline.

A: William Koefoed and Tom Shea discussed strong pipeline, FedRAMP High certification, and focus on state/local/higher ed in public sector.

Q: Brian Peterson from Raymond James (John on) asked about FX impact.

A: William Koefoed discussed FX impact on prior periods and potential tailwind in 2026 if dollar remains weak.

Q: Jake Roberge from William Blair asked about agentic offerings feedback.

A: Tom Shea talked about strong feedback, agents in structured and unstructured data buckets, and harmonizing value across use cases.