Wedbush analyst Daniel Ives has adjusted the price target for OneStream (OS, Financial), bringing it down from $40 to $35. This change reflects a lower valuation multiple, yet the analyst maintains an Outperform rating on the stock. OneStream recently announced its results for Q1 2025, surpassing expectations across all key performance indicators. Additionally, the company has raised its full-year 2025 guidance, signaling confidence in its ability to maintain steady demand for its platform despite ongoing macroeconomic uncertainties.
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.
