Summary
OneStream reported total revenue of $117.5 million for FY2024 Q2, up 35.8% from the prior-year quarter. Year-to-date revenue reached $227.8 million, up 37.8% from the prior-year period. Gross profit increased 39.4% to $80.5 million in the quarter and 41.5% to $156.8 million for the six months. Gross margin rose to 68.5%, up 1.7 percentage points from the prior-year quarter. Operating loss narrowed to $11.6 million, and operating margin improved to negative 9.8%, up 8.9 percentage points. Net loss narrowed to $7.9 million. For the six months, operating loss narrowed to $17.0 million, and net loss narrowed to $12.8 million. The company said growth came from new customer additions and expansion within existing accounts.
Cash generation improved. Operating cash flow was $8.1 million in the quarter and $33.7 million for the six months, up from negative $1.2 million in the prior-year six-month period. Capital expenditures were $0.4 million in the quarter and $1.1 million year to date, down 23.8% from the prior-year six-month period. Free cash flow, a non-GAAP measure, was $7.7 million in the quarter and $32.6 million for the six months, compared with negative $0.2 million and negative $2.6 million in the prior-year periods. Deferred revenue, current portion, was $193.5 million at June 30, 2024. OneStream ended the quarter with 1,482 customers, up 19% from 1,248 a year earlier. The company said the operating cash flow increase was driven by working capital changes, including lower accounts receivable and higher deferred revenue, partially offset by higher deferred commissions.
Non-GAAP operating loss was $8.7 million in the quarter and $12.9 million for the six months, compared with $13.3 million and $32.1 million in the prior-year periods. The company attributed higher operating expenses to headcount growth, increased outside services, and IPO-related costs. In May 2024, OneStream acquired the remaining equity interests of DataSense LLC to strengthen AI and machine learning capabilities. The acquisition contributed a $2.4 million gain on remeasurement of the previously held equity interest. The IPO closed on July 25, 2024, after the quarter ended, raising net proceeds of $402.9 million. OneStream also highlighted a hybrid cloud model and a partner ecosystem of more than 250 go-to-market, implementation, and development partners. The company is increasingly leveraging partners to deliver implementation services, which can affect professional services revenue and margins.
Management's outlook centers on shifting more revenue to SaaS contracts and scaling the business. The company expects revenue from SaaS contracts to make up an increasing portion of total revenue over time. It plans to keep investing in sales and marketing, research and development, and general and administrative functions, while expecting those costs to decrease as a percentage of total revenue over time. Risks include the need to attract, retain, and train sales personnel, grow the partner ecosystem, execute internationally, and keep innovating on the platform. The Tax Receivable Agreement requires cash payments equal to 85% of applicable tax savings and could weigh on liquidity. The credit facility includes a maximum indebtedness-to-recurring-revenue ratio of 0.50 to 1.00 and a $50.0 million liquidity requirement. OneStream also has a $210.2 million remaining commitment under a five-year data center, cloud, and IT services agreement. The company is an emerging growth company and has elected to use the extended transition period for certain accounting standards.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2024 | Q1 FY2024 | QoQ | Q2 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $117.5M | — | — | — | — |
| Gross profit | $80.5M | — | — | — | — |
| Gross margin | 68.5% | — | — | — | — |
| Research & development | $20.0M | — | — | — | — |
| Sales & marketing | $52.2M | — | — | — | — |
| General & administrative | $19.9M | — | — | — | — |
| Total operating expenses | $92.1M | — | — | — | — |
| Operating income (loss) | -$11.6M | — | — | — | — |
| Operating margin | -9.8% | — | — | — | — |
| Net income (loss) | -$7.8M | — | — | — | — |
| Net margin | -6.7% | — | — | — | — |
Risks
OneStream is investing in AI-enabled solutions, including the May 2024 DataSense acquisition, but competitors may have more advanced AI and machine learning capabilities and products. Failure to develop or implement AI technology, or competitors incorporating AI more quickly, could impair its ability to compete and harm operating results.
Sales cycles are long and unpredictable, averaging four to eight months and sometimes extending over years for large enterprises. Large individual sales are a significant proportion of overall sales, making quarterly revenue timing difficult and potentially causing results to miss expectations.
The business depends on customers renewing subscriptions and adding users, and current and future AI capabilities may reduce or replace customers' need for employees who are potential users of the platform. If customers do not renew, renew on less favorable terms, or do not add users, revenue and financial condition would be adversely affected.
OneStream faces intense competition from legacy providers such as Oracle, SAP and Infor and point providers such as Anaplan, Blackline, Wolters Kluwer and Workday. Many competitors have greater resources, larger sales budgets, broader customer relationships and more advanced AI capabilities.
The platform is delivered using cloud infrastructure owned and operated by Microsoft, and OneStream relies on a limited number of third-party data centers. Disruptions, capacity constraints, or failure to maintain the Microsoft relationship or required capacity could cause service shortfalls, customer credits, or significant transfer costs.
The Tax Receivable Agreement requires OneStream, Inc. to pay TRA Members 85% of applicable tax savings, and payments are expected to be substantial. These obligations could negatively impact liquidity, require debt financing, and deter mergers or changes of control.
Sales to U.S. federal, state, local and foreign government entities and highly regulated organizations are subject to FedRAMP certification, audits, budget cycles, longer implementation cycles and contract termination rights. Any change in FedRAMP certification or failure to comply could delay or limit government sales.
Revenue growth depends on strategic relationships with go-to-market and implementation partners, including Accenture, IBM, KPMG and PwC. Partners may offer competing products or work with competitors, and failure to train or retain partners could harm customer support and implementation.
OneStream depends on executive officers and key employees, especially co-founder and CEO Mr. Shea, and faces intense competition for experienced sales personnel and engineers with AI and machine learning skills. The loss of key employees or inability to attract and retain qualified personnel could harm growth.
The legal, regulatory and policy environment around AI is evolving rapidly, including the White House executive order and pending EU AI Act. New obligations could require significant changes to AI use, limit or restrict AI technology, and expose OneStream to legal liability or reputational harm.
KKR holds a majority of voting power and has consent rights over change in control and CEO hiring or termination while it owns at least 25% of common stock. The certificate of incorporation renounces corporate opportunities for KKR and its affiliates, creating potential conflicts of interest.
Lock-up agreements and market standoff restrictions expire at the opening of trading on the second trading day after public release of earnings for the quarter ending September 30, 2024. Sales of substantial shares after expiration, or the perception of such sales, could cause the market price of Class A common stock to decline.
MD&A reports total revenue rose 35.8% in FY2024 Q2 vs FY2023 Q2 and customers grew 19% year over year, but risk factors state recent rapid growth may not be sustainable or indicative of future growth. If OneStream fails to attract new customers, retain existing customers, or accurately forecast growth, revenue may grow more slowly than expected.
SaaS KPIs
All quarters →Free Cash Flow
Total Customers
Remaining Performance Obligations
Summary, forecast, risks and KPIs are extracted from OneStream, Inc.'s SEC filings for Q2 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.