Onestream Aims for 20% Revenue Boost by 2025 as Finance AI Demand Soars

Mei 13, 2025 Posting Komentar

Insights from the Earnings Call: OneStream, Inc. (OS) First Quarter of 2025

Management View

CEO Tom Shea pointed out a robust beginning to 2025, noting a 24% rise in overall revenue along with a free cash flow margin of 26%. He underscored their ability to remain resilient despite economic hurdles and stressed the growing significance of updating systems for chief financial officers and finance teams alike.
The SensibleAI Forecast, which is part of the company’s machine learning offerings, saw more than 50% increase in yearly bookable orders compared to the previous period. This solution plays a crucial role within OneStream’s Financial AI lineup and continues to be seamlessly incorporated into client processes.
The firm launched its CPM Express offering, designed to provide speedy deployment options for companies of all sizes with the intent to expand their clientele.
An important global achievement was marked by a major European retailer switching to OneStream's system for their outdated technology, which helped boost the international division’s revenue by 40% compared to the previous year.
The CFO, Bill Koefoed, announced a total revenue of $136 million for the quarter, with subscription income totaling $125 million and setting a new high for free cash flow at $36 million. Additionally, over 30 percent of this revenue came from overseas markets.

Outlook

The management restated their forecast for 2025, aiming for a total revenue ranging from $583 million to $587 million, which marks a 20% increase compared to the previous year. They also tweaked the non-GAAP operating margin guidance upwards slightly.
Regarding Q2 of 2025, the forecasted revenues are projected to range from $140 million to $142 million, with expectations for non-GAAP net income per share to fall within the $0.00 to $0.02 interval.
Major factors contributing to growth encompass the enlargement of the Finance AI lineup and the advancement of the CPM Express offering, alongside targeted investments in global markets.

Financial Results

The total income for the first quarter of 2025 amounted to $136 million, where the earnings from subscriptions saw an increase of 31% compared to the previous year, totaling $125 million.
The company achieved a record free cash flow of $36 million, which corresponds to a 26% free cash flow margin.
The non-GAAP net income for the quarter amounted to $6.7 million, translating into earnings per share of $0.04.
Global earnings experienced a substantial increase of 40% compared to the previous year, indicating effective expansion into international markets.

Q&A

John DiFucci from Guggenheim Securities questioned the company’s conservative approach to guidance. In response, CFO Koefoed acknowledged the encouraging signs within the sales pipeline yet stressed the importance of being cautious because of the current economic uncertainties.
Adam Hotchkiss from Goldman Sachs inquired about the uptake of CPM Express. The CEO, Shea, responded that the product’s quick time-to-value strategy has garnered positive feedback and matches customers' needs for effective solutions.
Terry Tillman from Truist Securities challenged the growth projections for SensibleAI Forecast. The CEO, Shea, emphasized the revolutionary impact of AI-powered tools in finance, pointing out rising acceptance rates and an expanding user base as primary markers of their successful performance.

Sentiment Analysis

Experts voiced worries over economic unpredictability; however, they also recognized the firm's robust lineup of products and innovative developments as favorable counterbalances.
The management kept an assured stance, highlighting expansion possibilities within Financial Artificial Intelligence and global sectors. CEO Shea reaffirmed the organization’s enduring objectives along with their strict operating protocols.
In comparison to the prior quarter, the management's outlook expressed measured hopefulness, concentrating on implementation despite outside difficulties.

Quarter-over-Quarter Comparison

The revenue growth slowed down from 29% in the fourth quarter of 2024 to 24% in the first quarter of 2025, which can be attributed to seasonal patterns and broader economic conditions.
Global income expansion stayed strong at 40% year-over-year, maintaining its previous trends.
The management's attitude changed somewhat, putting more focus on broad economic caution and smart investment strategies.
Analysts kept their attention on AI-driven solutions and expanding into global markets as primary factors for growth, consistent with the trends from the previous quarter.

Risks and Concerns

Management highlighted possible obstacles for deals and financial limitations because of economic instability and governmental changes.
Continuing customer transitions to Software as a Service (SaaS) are anticipated to affect license income. Additionally, changes in currency exchange rates could pose a threat to revenues from outside the country.
Experts voiced worries about the conservative revenue forecasts and what this might suggest for overall economic trends.

Final Takeaway

In the first quarter of 2025, OneStream demonstrated significant advancement, primarily due to expansion in its Financial AI offerings and overseas sectors. The firm restated its aim to achieve a revenue increase of 20% for the year 2025 and underscored potential areas like systems upgrades and predictive analytics powered by artificial intelligence. Even with economic headwinds, OneStream’s targeted financial commitments and substantial project lineup set the stage for sustained development within the contemporary finance sector.

Review the complete earnings call transcript here.

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