OneStream Reports Strong Growth in Q2 2024 Financial Results

OneStream Announces Second Quarter 2024 Financial Results By Investing.com

, /PRNewswire/ -- OneStream, Inc. (Nasdaq: OS), the leading enterprise Finance management platform that modernizes the Office of the CFO by unifying core finance and operational functions -- including financial close, consolidation, reporting, planning and forecasting, today announced financial results for its second quarter ended . Second Quarter 2024 Financial Highlights "Our strong top line growth in the second quarter underscores our continued momentum in the first half of the year, including achieving positive cash flow from operations and free cash flow for the third quarter in a row," said , CEO of OneStream. "Our growth trajectory reflects what's happening in the world of Finance today. CFOs are being asked to strategically guide the business towards growth against an economically volatile backdrop. We are in a solid position to empower the Office of the CFO with the operating system for modern finance and we remain committed to helping Finance leaders around the world effectively steer their businesses." OneStream is providing the following guidance for the third quarter of 2024 and the full year 2024: OneStream has not provided a reconciliation of its forward outlook for non-GAAP operating margin and non-GAAP net loss per share to their most directly comparable GAAP financial measures in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. OneStream is unable to predict with reasonable certainty the amount and timing of adjustments that are used to calculate these non-GAAP financial measures, particularly related to stock-based compensation and its related tax effects. Earnings Webcast Information OneStream will host a conference call for analysts and investors to discuss its financial results for the second quarter of 2024 and its outlook for the third quarter of 2024 and full year 2024 today at / . A webcast replay will be available on the Investor Relations Section of OneStream's website following the call. Upcoming Conferences Sessions offering a webcast will be available on the Investor Relations section of the OneStream website at https://investor.onestream.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. Forward-looking statements contained in this press release include, but are not limited to, the financial outlook for total revenue, non-GAAP operating margin and non-GAAP net loss per share provided for the third quarter ending and the year ending . Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors. Some of these risks are described in greater detail in our Prospectus dated , filed with the Securities and Exchange Commission (the "SEC") on , and in the other documents we file with the SEC from time to time, including our Quarterly Report on Form 10-Q for the quarter ended , which we expect to file with the SEC on or around the date of this press release. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause our actual results to differ materially from those contained in any forward-looking statements we may make. These factors may cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by our forward-looking statements. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not rely on these statements or regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified timeframe, or at all. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Non-GAAP Financial Measures In addition to GAAP financial measures, this press release includes non-GAAP financial measures that we use to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. These non-GAAP financial measures include non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss per share and free cash flow, and their respective definitions are presented below. There are limitations to the non-GAAP financial measures included in this press release, and they may not be comparable to similarly titled measures of other companies. The non-GAAP financial measures included in this press release should not be considered in isolation from or as a substitute for their most directly comparable GAAP financial measures. Our management believes that our non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and when planning, forecasting and analyzing future periods. For a reconciliation of the non-GAAP financial measures presented for historical periods to their most directly comparable GAAP financial measures, please see the tables captioned "Reconciliation of Non-GAAP Financial Measures" included at the end of this press release. We encourage you to review the reconciliation in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future periods, we may exclude similar items, may incur income and expenses similar to these excluded items and may include other expenses, costs and non-recurring items. Non-GAAP Operating Loss We define non-GAAP operating loss as loss from operations adjusted for non-cash, non-operational and non-recurring items, including equity-based compensation expense and amortization of acquired intangible assets. Non-GAAP Operating Margin We define non-GAAP operating margin as non-GAAP operating loss as a percentage of total revenue. Non-GAAP Net Loss Per Share We define non-GAAP net loss as net loss adjusted for non-cash, non-operational and non-recurring items, including equity-based compensation expense and amortization of acquired intangible assets. We define non-GAAP net loss per share as non-GAAP net loss divided by weighted-average shares outstanding. Free Cash Flow We define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment. Presentation of Financial Measures This press release presents historical results, for the periods presented, of OneStream Software LLC, the predecessor of OneStream, Inc. for financial reporting purposes. The financial results of OneStream, Inc. have not been included in this press release as it had no material assets or liabilities and no material business transactions or activities during the periods presented. Accordingly, these historical results do not purport to reflect what the results of operations of OneStream, Inc. or OneStream Software LLC would have been had the IPO and related reorganization transactions occurred prior to such periods. About OneStream OneStream is how today's Finance teams can go beyond just reporting on the past and Take Finance Further by steering the business to the future. It's the leading enterprise finance platform that unifies financial and operational data, embeds AI for better decisions and productivity, and empowers the CFO to become a critical driver of business strategy and execution. We deliver a comprehensive cloud-based platform to modernize the Office of the CFO. Our Digital Finance Cloud unifies core financial and broader operational data and processes and embeds AI for better planning and forecasting, with an extensible architecture, so customers can adopt and develop new solutions, achieving greater value as their business needs evolve. With over 1,400 customers, including 15% of the Fortune 500, more than 250 go-to-market, implementation, and development partners and approximately 1,400 employees, our vision is to be the operating system for modern finance. To learn more, visit onestream.com.

OneStream Announces Second Quarter 2024 Financial Results - OneStream (NASDAQ:OS)

BIRMINGHAM, Mich., Sept. 3, 2024 /PRNewswire/ -- OneStream, Inc. OS, the leading enterprise Finance management platform that modernizes the Office of the CFO by unifying core finance and operational functions -- including financial close, consolidation, reporting, planning and forecasting, today announced financial results for its second quarter ended June 30, 2024. Second Quarter 2024 Financial Highlights Total Revenue: $117.5 million, an increase of 36% year-over-year.Subscription Revenue: $103.1 million, an increase of 44% year-over-year.GAAP Loss from Operations and Operating Margin: GAAP operating loss was $11.6 million compared to a loss of $16.2 million for the second quarter of 2023, and GAAP operating margin was (10)% compared to (19)% for the second quarter of 2023.Non-GAAP Operating Loss and Non-GAAP Operating Margin: Non-GAAP operating loss was $8.7 million compared to a loss of $13.3 million for the second quarter of 2023, and non-GAAP operating margin was (7)% compared to (15)% for the second quarter of 2023. "Our strong top line growth in the second quarter underscores our continued momentum in the first half of the year, including achieving positive cash flow from operations and free cash flow for the third quarter in a row," said Tom Shea, CEO of OneStream. "Our growth trajectory reflects what's happening in the world of Finance today. CFOs are being asked to strategically guide the business towards growth against an economically volatile backdrop. We are in a solid position to empower the Office of the CFO with the operating system for modern finance and we remain committed to helping Finance leaders around the world effectively steer their businesses." Recent Developments and Business Highlights Initial Public Offering. On July 25, 2024, the Company completed its initial public offering (the "IPO") of 28,175,000 shares of Class A common stock, including shares sold by the Company and the selling stockholders, and the full exercise of the underwriters' option to purchase additional shares. Net proceeds to OneStream from the offering were $352.9 million after deducting underwriting discounts and commissions.Splash User Conference. A record-breaking crowd at the OneStream Splash annual user conference in Las Vegas witnessed the unveiling of a dozen new innovations, including Advanced Narrative Reporting, a certified Microsoft Power BI Connector, a rapid-deployment CPM Express, expanded Sensible AI and Machine-Learning capabilities, and new partner solutions built atop the OneStream platform, including Infinity Sales Performance Management.OneStream Workplace Awards. OneStream was named a 2024 Inspiring Workplaces in both North America and in the United Kingdom. These awards come on the heels of being named a USA Today 2024 Top Workplace. Financial Outlook OneStream is providing the following guidance for the third quarter of 2024 and the full year 2024: Q3'24 FY24 Total Revenue $123M - $125M $476M - $480M Non-GAAP Operating Margin (2)% - 0% (5)% - (1)% Non-GAAP Net Loss per Share $(0.01) - $0.01 $(0.05) - $0.01 OneStream has not provided a reconciliation of its forward outlook for non-GAAP operating margin and non-GAAP net loss per share to their most directly comparable GAAP financial measures in reliance on the unreasonable efforts exception provided under Item 10(e)(1)(i)(B) of Regulation S-K. OneStream is unable to predict with reasonable certainty the amount and timing of adjustments that are used to calculate these non-GAAP financial measures, particularly related to stock-based compensation and its related tax effects. Earnings Webcast Information OneStream will host a conference call for analysts and investors to discuss its financial results for the second quarter of 2024 and its outlook for the third quarter of 2024 and full year 2024 today at 4:30 p.m. Eastern time / 1:30 p.m. Pacific time. A webcast replay will be available on the Investor Relations Section of OneStream's website following the call. Date: Tuesday, September 3, 2024 Time: 4:30 p.m. ET / 1:30 p.m. PT Webcast: https://investor.onestream.com Upcoming Conferences Citi 2024 Global TMT Conference Thursday, September 5, 2024 at 3:50 p.m. ET / 12:50 p.m. PTGoldman Sachs Communacopia & Technology Conference Wednesday, September 11, 2024 at 11:10 a.m. ET / 8:10 a.m. PT Sessions offering a webcast will be available on the Investor Relations section of the OneStream website at https://investor.onestream.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this press release may be forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. Forward-looking statements contained in this press release include, but are not limited to, the financial outlook for total revenue, non-GAAP operating margin and non-GAAP net loss per share provided for the third quarter ending September 30, 2024 and the year ending December 31, 2024. Forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other factors. Some of these risks are described in greater detail in our Prospectus dated July 23, 2024, filed with the Securities and Exchange Commission (the "SEC") on July 24, 2024, and in the other documents we file with the SEC from time to time, including our Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, which we expect to file with the SEC on or around the date of this press release. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause our actual results to differ materially from those contained in any forward-looking statements we may make. These factors may cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by our forward-looking statements. Furthermore, if our forward-looking statements prove to be inaccurate, the inaccuracy may be material. In light of the significant uncertainties in these forward-looking statements, you should not rely on these statements or regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified timeframe, or at all. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Non-GAAP Financial Measures In addition to GAAP financial measures, this press release includes non-GAAP financial measures that we use to help us evaluate our business, identify trends affecting our business, formulate business plans and make strategic decisions. These non-GAAP financial measures include non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss per share and free cash flow, and their respective definitions are presented below. There are limitations to the non-GAAP financial measures included in this press release, and they may not be comparable to similarly titled measures of other companies. The non-GAAP financial measures included in this press release should not be considered in isolation from or as a substitute for their most directly comparable GAAP financial measures. Our management believes that our non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when analyzing historical performance and liquidity and when planning, forecasting and analyzing future periods. For a reconciliation of the non-GAAP financial measures presented for historical periods to their most directly comparable GAAP financial measures, please see the tables captioned "Reconciliation of Non-GAAP Financial Measures" included at the end of this press release. We encourage you to review the reconciliation in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future periods, we may exclude similar items, may incur income and expenses similar to these excluded items and may include other expenses, costs and non-recurring items. Non-GAAP Operating Loss We define non-GAAP operating loss as loss from operations adjusted for non-cash, non-operational and non-recurring items, including equity-based compensation expense and amortization of acquired intangible assets. Non-GAAP Operating Margin We define non-GAAP operating margin as non-GAAP operating loss as a percentage of total revenue. Non-GAAP Net Loss Per Share We define non-GAAP net loss as net loss adjusted for non-cash, non-operational and non-recurring items, including equity-based compensation expense and amortization of acquired intangible assets. We define non-GAAP net loss per share as non-GAAP net loss divided by weighted-average shares outstanding. Free Cash Flow We define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment. Presentation of Financial Measures This press release presents historical results, for the periods presented, of OneStream Software LLC, the predecessor of OneStream, Inc. for financial reporting purposes. The financial results of OneStream, Inc. have not been included in this press release as it had no material assets or liabilities and no material business transactions or activities during the periods presented. Accordingly, these historical results do not purport to reflect what the results of operations of OneStream, Inc. or OneStream Software LLC would have been had the IPO and related reorganization transactions occurred prior to such periods. About OneStream OneStream is how today's Finance teams can go beyond just reporting on the past and Take Finance Further by steering the business to the future. It's the leading enterprise finance platform that unifies financial and operational data, embeds AI for better decisions and productivity, and empowers the CFO to become a critical driver of business strategy and execution. We deliver a comprehensive cloud-based platform to modernize the Office of the CFO. Our Digital Finance Cloud unifies core financial and broader operational data and processes and embeds AI for better planning and forecasting, with an extensible architecture, so customers can adopt and develop new solutions, achieving greater value as their business needs evolve. With over 1,400 customers, including 15% of the Fortune 500, more than 250 go-to-market, implementation, and development partners and approximately 1,400 employees, our vision is to be the operating system for modern finance. To learn more, visit onestream.com. Investor Relations Contacts INVESTOR CONTACT Anne Leschin VP, Investor Relations and Strategic Finance OneStream [email protected] MEDIA CONTACT Victoria Borges Media Relations Contact OneStream [email protected] CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except unit amounts) (Unaudited) As of June 30, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 140,515 $ 117,087 Accounts receivable, net 92,913 107,308 Unbilled accounts receivable 29,588 31,519 Deferred commissions 19,113 17,225 Prepaid expenses and other current assets 9,375 13,098 Total current assets 291,504 286,237 Unbilled accounts receivable, noncurrent 1,817 2,009 Deferred commissions, noncurrent 41,344 41,030 Operating lease right-of-use assets 17,237 18,559 Property and equipment, net 10,730 10,266 Intangible assets, net 3,117 -- Goodwill 9,071 -- Other noncurrent assets 4,869 3,458 Total assets $ 379,689 $ 361,559 Liabilities and members' equity Current liabilities: Accounts payable $ 24,663 $ 8,274 Accrued compensation 25,446 22,436 Accrued commissions 5,961 10,158 Deferred revenue, current 193,519 177,465 Operating lease liabilities, current 3,017 2,505 Other accrued expenses and current liabilities 9,950 11,532 Total current liabilities 262,556 232,370 Deferred revenue, noncurrent 3,330 5,141 Operating lease liabilities, noncurrent 16,118 17,522 Other noncurrent liabilities 167 -- Total liabilities 282,171 255,033 Commitments and contingencies Members' equity: Convertible preferred units 209,733 209,733 Members' capital: common units 75,649 71,573 Accumulated other comprehensive loss (900) (625) Accumulated deficit (186,964) (174,155) Total members' equity 97,518 106,526 Total liabilities and members' equity $ 379,689 $ 361,559 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands) (Unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues: Subscription $ 103,133 $ 71,843 $ 198,820 $ 135,921 License 6,905 6,652 13,084 13,444 Professional services and other 7,463 8,009 15,888 15,958 Total revenue 117,501 86,504 227,792 165,323 Cost of revenues: Subscription 26,515 17,939 49,621 33,881 Professional services and other 10,460 10,784 21,382 20,610 Total cost of revenue 36,975 28,723 71,003 54,491 Gross profit 80,526 57,781 156,789 110,832 Operating expenses: Sales and marketing (1) 52,216 46,744 100,525 94,015 Research and development (1) 19,952 13,226 36,876 25,755 General and administrative (1) 19,929 14,058 36,339 28,785 Total operating expenses 92,097 74,028 173,740 148,555 Loss from operations (11,571) (16,247) (16,951) (37,723) Interest income, net 1,661 1,046 3,297 1,569 Other income (expense), net 2,391 5 1,491 (1,822) Loss before income taxes (7,519) (15,196) (12,163) (37,976) Provision for income taxes 331 175 646 470 Net loss $ (7,850) $ (15,371) $ (12,809) $ (38,446) (1) Includes equity-based compensation expense as follows: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Cost of professional services and other $ -- $ -- $ -- $ 15 Sales and marketing 918 1,894 1,274 3,123 Research and development 1,149 105 1,254 309 General and administrative 652 933 1,304 2,213 Total equity-based compensation $ 2,719 $ 2,932 $ 3,832 $ 5,660 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) Six Months Ended June 30, 2024 2023 Cash flows from operating activities: Net loss $ (12,809) $ (38,446) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 1,545 1,460 Bad debt expense 1,560 814 Noncash operating lease expense 1,394 1,410 Amortization of deferred commissions 9,492 7,724 Equity-based compensation 3,832 5,660 Other noncash operating activities, net (2,037) 1,690 Changes in operating assets and liabilities: Accounts receivable, net 14,957 13,403 Deferred commissions (11,694) (10,697) Prepaid expenses and other assets 2,637 (5,766) Accounts payable 14,133 (3,282) Deferred revenue 14,242 24,088 Accrued and other liabilities (3,598) 784 Net cash provided by (used in) operating activities 33,654 (1,158) Cash flows from investing activities: Purchases of property and equipment (1,100) (1,444) Acquisition of business, net of cash acquired (7,594) -- Sales of marketable securities -- 87,247 Net cash (used in) provided by investing activities (8,694) 85,803 Cash flows from financing activities: Payments of deferred offering costs (1,045) -- Principal payments on finance lease obligation -- (46) Proceeds from exercise of common unit options -- 247 Repayments of borrowings on revolving credit facility -- (3,500) Net cash used in financing activities (1,045) (3,299) Effect of exchange rate changes on cash and cash equivalents (487) 201 Net increase in cash and cash equivalents 23,428 81,547 Cash and cash equivalents - Beginning of period 117,087 14,687 Cash and cash equivalents - End of period $ 140,515 $ 96,234 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) Non-GAAP Operating Loss Three Months Ended June 30, 2024 2023 (in thousands) Loss from operations $ (11,571) $ (16,247) Equity-based compensation expense 2,719 2,932 Amortization expense 183 -- Non-GAAP operating loss $ (8,669) $ (13,315) Non-GAAP Operating Margin Three Months Ended June 30, 2024 2023 (in thousands) Operating margin (10) % (19) % Equity-based compensation expense 2 % 3 % Amortization expense -- -- Non-GAAP operating margin(1) (7) % (15) % (1) Non-GAAP operating margin may not foot due to rounding. Free Cash Flow Three Months Ended June 30, 2024 2023 (in thousands) Net cash provided by operating activities $ 8,114 $ 798 Purchases of property and equipment (410) (1,024) Free cash flow 7,704 (226) Net cash used in investing activities $ (8,004) $ (1,024) Net cash used in financing activities $ (694) $ (19) View original content to download multimedia:https://www.prnewswire.com/news-releases/onestream-announces-second-quarter-2024-financial-results-302237149.html SOURCE OneStream, Inc. Market News and Data brought to you by Benzinga APIs