Truist has increased its price target for OneStream (OS, Financial) from $27 to $31 while maintaining a Buy rating on the shares. This decision comes after the company reported an impressive first-quarter earnings beat. OneStream's management highlighted key achievements, including a significant increase in SensibleAIForecast and a 50% rise in commercial business bookings. Additionally, their international business grew by 40%, and more than 60% of their revenue is now derived from new customers. These developments have bolstered confidence in the company's growth prospects.
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.
