An analyst from Mizuho, Siti Panigrahi, has increased the price target for OneStream (OS, Financial) from $30 to $33, maintaining a positive outlook on the company's shares. This adjustment follows the recent Splash user conference where OneStream showcased its advancements in product development. The company is making strides in artificial intelligence, strengthening its position as a leader in AI solutions for financial executives. These new tools are expected to enhance the capabilities of CFO offices, solidifying OneStream's competitive edge in the AI domain.
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.
