OneStream Reports Strong Fourth Quarter Growth and Strategic Innovations for 2024

OneStream's Fourth Quarter and Fiscal Year 2024 Financial Results

OneStream, Inc. (Nasdaq: OS), a leader in enterprise finance management, recently announced its financial results for the fourth quarter and fiscal year ending December 31, 2024. The company reported notable achievements, illustrating a solid performance amidst the expanding demand for integrated financial solutions.

Fourth Quarter Performance Highlights

In Q4 2024, OneStream achieved total revenue of $132.5 million, reflecting a 29% increase compared to the same quarter the previous year. A significant driver of this growth was subscription revenue, which amounted to $118.6 million, marking a 35% year-on-year rise. However, despite this revenue profusion, OneStream reported a GAAP operating loss of $47.4 million, a stark contrast to a slim operating income of $0.2 million witnessed in Q4 2023. This loss was largely attributed to equity-based compensation expenses, exceeding $52 million this quarter compared to just over $1 million last year.

Additionally, the non-GAAP operating income for the quarter stood at $8.7 million, an increase from $1.4 million in the same period last year, translating to a non-GAAP operating margin of 7%. With net cash provided by operating activities at $25.1 million, OneStream's fourth quarter results highlight the company's ongoing endeavors to enhance its operational profitability.

Fiscal Year 2024 Overview

For the entire year of 2024, OneStream reported total revenue of $489.4 million, a 31% increase from 2023, driven primarily by a remarkable 41% surge in subscription revenues totaling $428.2 million. Nonetheless, annual GAAP operating losses escalated to $319.5 million from $30.5 million in 2023, resulting in a GAAP operating margin of negative 65%. This significant loss also included a record $316.4 million in equity-based compensation expenses.

In a more optimistic light, OneStream's non-GAAP operating income for the fiscal year was $1.2 million compared to a loss of $22.2 million in 2023, marking a considerable turnaround for the company's operational efficiency. The net cash provided by operating activities reached $61.2 million for the year, showcasing improved liquidity.

Innovations Driving Future Growth

Tom Shea, CEO of OneStream, emphasized that 2024 was transformative for the company, marked by the launch of 15 new innovations, particularly in the realm of Finance AI. These innovations include tools like GenAI and machine learning solutions designed to assist finance leaders in generating real-time forecasts from reliable enterprise data.

Among other groundbreaking developments, OneStream introduced its CPM Express, which features a pre-built functionality designed to streamline reporting and forecasting processes. The company also expanded its collaboration with Microsoft to deepen integrations within the Office 365 Suite, enhancing financial reporting capabilities.

Furthermore, at the Wave Developer Conference held in November 2024, OneStream unveiled AI-driven anomaly detection and scenario modeling features, aimed at amplifying accuracy in financial data management.

Industry Recognition and Market Positioning

OneStream's innovative strides have not gone unnoticed, as the company secured its position as a Leader in the Gartner Magic Quadrant for Financial Planning Software for the third consecutive year. Additionally, it received accolades in IDC's Record to Report MarketScape, recognizing its robust AI roadmap and reporting strength.

As OneStream navigates the future, its recent achievements not only reflect its market-leadership potential but also underscore its commitment to equipping finance teams with advanced tools designed to drive business strategy and execution more effectively.

Financial Outlook

Looking ahead, OneStream has provided preliminary guidance for FY 2025 and the first quarter of 2025, projecting total revenue between $583 million and $587 million, with expected non-GAAP operating margins improving substantially. The company anticipates making significant strides in turning its operational results around while continuing to innovate its product offerings in the financial management space.

In conclusion, OneStream's Q4 report paints a promising picture of growth fueled by innovation, effective financial strategies, and a clear path toward enhanced profitability, setting the stage for a groundbreaking year in 2025.