An analyst at Stephens, Brett Huff, has adjusted his price target for OneStream (OS, Financial), raising it from $27 to $30. Huff maintains an Overweight rating on the stock. Despite current market trends that may not favor cautious guidance, Huff believes OneStream's first-quarter report marks progress in redirecting investor attention to the company's attractive fundamental strengths. This indicates confidence in OneStream's business trajectory.
OS Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- OneStream Inc (OS, Financial) achieved a total revenue growth of 24% in Q1 2025.
- The company reported a strong free cash flow margin of 26%.
- Subscription revenue increased by 31% year over year, indicating strong demand for their services.
- OneStream's international business saw a 40% year-over-year revenue growth, highlighting its global expansion success.
- The company launched new product innovations, including ESG reporting and planning solutions, and a CPM express offering for rapid implementation.
Negative Points
- License revenue decreased by 40% compared to last year due to customer fast conversions.
- There is heightened uncertainty in the broader markets, which may lead to deal headwinds and potential downsells.
- Ongoing customer conversions to SaaS continue to impact license revenue negatively.
- The macroeconomic environment is causing some companies and government agencies to slow or pause spending.
- There is a cautious outlook for the rest of the year despite strong current results, reflecting potential demand issues.
