On February 11, 2025, OneStream Inc (OS, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and fiscal year ending December 31, 2024. OneStream Inc, a leading AI-enabled software platform, provides a unified approach to financial and operational data management, offering corporate leaders enhanced control and agility.
Performance Overview
OneStream Inc reported a significant increase in total revenue for both the fourth quarter and the full fiscal year 2024. The company achieved a total revenue of $132.5 million in Q4, marking a 29% year-over-year increase. Subscription revenue, a key growth driver, rose by 35% to $118.6 million. For the fiscal year, total revenue reached $489.4 million, a 31% increase from the previous year, with subscription revenue climbing 41% to $428.2 million.
Challenges and Financial Metrics
Despite robust revenue growth, OneStream Inc faced challenges with its operating income. The company reported a GAAP operating loss of $47.4 million for Q4, compared to an operating income of $0.2 million in the same quarter of 2023. This resulted in a GAAP operating margin of -36%, a decline from 0% in the previous year. The fiscal year GAAP operating loss was $319.5 million, significantly higher than the $30.5 million loss in 2023, primarily due to increased equity-based compensation expenses.
Financial Achievements
OneStream Inc's non-GAAP financial metrics showed improvement. The non-GAAP operating income for Q4 was $8.7 million, up from $1.4 million in Q4 2023, with a non-GAAP operating margin of 7%. For the fiscal year, the company achieved a non-GAAP operating income of $1.2 million, reversing a loss of $22.2 million in 2023. These achievements highlight the company's ability to manage operational efficiency amidst rising costs.
Key Financial Statements
The company's balance sheet reflected a strong cash position, with cash and cash equivalents increasing to $544.2 million as of December 31, 2024, from $117.1 million at the end of 2023. Total assets grew to $823.2 million, while total liabilities were $332.3 million. The company's free cash flow for the fiscal year was $58.5 million, up from $18.7 million in 2023, indicating improved cash management.
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Total Revenue | $132.5M | $102.6M | $489.4M | $374.9M |
| Subscription Revenue | $118.6M | $87.6M | $428.2M | $302.9M |
| GAAP Operating Loss | ($47.4M) | $0.2M | ($319.5M) | ($30.5M) |
| Non-GAAP Operating Income | $8.7M | $1.4M | $1.2M | ($22.2M) |
| Free Cash Flow | $24.7M | $26.6M | $58.5M | $18.7M |
Industry Recognition and Innovations
OneStream Inc was recognized as a leader in the Gartner Magic Quadrant for Financial Planning Software for the third consecutive year. The company introduced several innovations, including AI-powered solutions for real-time forecasting and a new integrated business planning product. These advancements position OneStream as a key player in the financial software industry.
“Capping a year of incredible innovation and solid execution, we posted 35% year-over-year subscription revenue growth in the fourth quarter, and were free cash flow positive and non-GAAP profitable,” said Tom Shea, CEO of OneStream.
Analysis and Outlook
OneStream Inc's strong revenue growth and strategic innovations underscore its potential in the financial software market. However, the significant GAAP operating losses highlight the challenges of managing high operational costs, particularly equity-based compensation. The company's guidance for 2025 indicates continued focus on revenue growth and operational efficiency, with projected total revenue between $583 million and $587 million and a non-GAAP operating margin ranging from -1% to 1%.
Overall, OneStream Inc's financial results reflect a company in transition, balancing growth with the need to manage costs effectively. The company's strategic initiatives and industry recognition position it well for future success, provided it can address its operational challenges.
Explore the complete 8-K earnings release (here) from OneStream Inc for further details.
