OneStream, Inc. Class A Common Stock (OS) 3 Sep 242024 Q2 Earnings call transcript

Good afternoon, ladies and gentlemen. Thank you for joining OneStream Second Quarter 2024 Earnings Conference Call.

As a reminder, this call is being recorded and will be available for replay from the Investor Relations section of our website following the call. [Operator Instructions] I will now pass the call over to Annie Leschin, Vice President. Please go ahead.

operator. you, Thank everyone. Good afternoon, OneStream's Second Conference to XXXX Quarter Call. Welcome Earnings

release the Joining CFO, our press our quarter Investor call along posted Co-Founder at an today on issued Bill our earlier results and The Relations our are on and earnings today me highlights is second Shea; CEO, Koefoed. investor.onestream.com website announcing with Tom presentation.

in weeks. started, like that to participate know to we upcoming the everyone Before X let I'd in we get conferences plan

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Just a July the XX, Results with section GAAP preliminary revenue, and on for reminder non-GAAP registration the of operating SEC our Recent certain Operating IPO free disclosed statement under estimates QX loss, filed XXXX. operating flow including we that results, and previously cash

quarters. these the already As their impact a financials financial QX projected result, future have we and results. please that and results and historical actual Today, are contemplated note on complete providing

me remind everyone forward XX, statements are and September call related quarter ending let including year XX, XXXX. third of December some the statements the today's the looking, on to XXXX, the ending guidance that for Now

known Forward-looking other factors. uncertainties, statements are and to risks and subject unknown assumptions and

statements we events by the except a of our of required June risks on documents XX, any no quarter to XX, the as SEC with with ended quarterly law. XXXX. result July July in for other forward-looking are undertake XXXX, greater on future obligation as or described the XX, detail information, and SEC Some report including We filed update these new to otherwise, file time, XX-Q Form dated in whether our from prospectus XXXX, time in

also The measures a measures measures, directly to today's non-GAAP other substitute for referenced measures. will not GAAP call companies. should limitations most our are to they considered certain measures. During non-GAAP in and of comparable their similarly or non-GAAP reference we titled from financial not financial be There today, may our call be comparable on isolation

measures Our investor afternoon's liquidity management Reconciliations can regarding and by core most release earnings non-GAAP measures be operating measures our not indicative supplemental this believes that information the press in our that of highlights our directly provide to of comparable expenses performance performance. on meaningful excluding non-GAAP our ongoing presentation be may certain our and posted found the GAAP website.

I'll to call turn over Tom? Tom. the Now

our a you Annie. you, and for public Welcome, call earnings us afternoon everyone, Thank company. as this first thank for joining

excited I'd opportunity quarter you And We some are our the review how second we story, are to strong performance spend I our the CFO the ahead. of office of to and how bit a thought about modernizing OneStream, sharing you. for got here, time with we new those

of X positioned and departments, against and this number must they to We're CFOs the stronger strategic a in The to all XX% but rationalize future. accomplished attendance. We and their an invest platform record So we business. investing largest revenue meet XX% key let's and reporting our the quarter. to platform's We May, ever consecutive past XX% with positive is an in important And year-over-year, to convinced uncertain acknowledging say third themselves ideally are a based conference of introduced exceptional their where performance modernize ability backdrop, understand and modernizing this beyond point solutions cash to opportunity trends. start driver macro because that highlights innovations become of challenging visibility need. a is for we increased subscription level improving in that remain insight financial market of few possibly user from quarter. on year-over-year. our this flow hosted With OneStream the the on QX still times grew were architecture and fortunate just customers We saw Splash environment. improving increase positioning our of a total revenue even finance them, multiple for our than provide importance in ever go

leading First, underway, with transformation departments play trust it's and while embrace been innings. have still early the catch-up finance slow transformation. in digital digital own their is the Finance and fully to to cloud, them

the we areas, percent of IT that including and only sales, believe a have their transformation last While occurred have for thus cloud from other decades, digitizing HR been finance far. operational applications environments small X legacy

to begun a departments believe to is recognize enterprise. across we platform have a cloud-based the provide unified and a ultimately CFOs it and into time view Now for before that data accept the operational more the just financial single cloud finance of matter need

focus increasingly Second, system. CEO like are tasked the This CFOs effort. were more this static to to Board and help of of strategic work reporting Today's requirements of the complement CFO. meet requires dynamic the execution. imperative in business planning the reporting strategic, operational more Historically, and business and operations nature steer to and and CFOs are changing is to provide finance to sole being being closely traditional and quarterly financials the with drive a insights CFOs have ERP becoming tools the integrating with books with asked the closing

across a and data their and operational agility unified excel. is and operational to view provides into enterprise, which the CFOs financial organizations platform Our enabling

an workers opportunity Third, and value performance. the business increase is of to knowledge ML AI,

more natural of trends, value are managing evolution. operational, and It's increasing of with Together more multitude system level exceptional teams, duties reliably can for financial cloud-based developed that of the just their and wanting to finance, providing As our functions data and the the accurate our run real-time insight unifying customers provide. To efficiently. able is are who AI OneStream customers. even workers modern at efficient knowledge these platform to ML, and require help their respond to to financial companies platform reporting to core an on provide both accurate OneStream's operating management a become Boards analysis, financial CEOs their

AI-driven operational CPM; and performance Our planning core applications; finance X performance addresses and or platform growth applied forecasting primary management. solutions and areas: financial core

We standards. extensible addressing thus of leveraging consolidation dimensionality single reporting And replacement controls strength without any Ingesting alone detail by core extending flexibility represents planning capability legacy system, almost finance platform, and estimate providing that systems, unifies enterprise. this existing and reporting. only core single modern legacy unique needs began data solutions, to from OneStream additional the our at in solutions with a functions report converted ERP unlike plan opportunity, legacy corporate roughly business the our of close billion to financial source a and and market small and units, on standards it finance unique the across and to a far. for truth and levels locations the $XX cloud a delivers with We impacting percentage finance

utility through security. the to This velocity, opens true and functional a innovation value our of data that specific and software our for our leverage Solutions model continued is applications software streams, available customers. revenue write expansion atop to higher expanding OneStream door new faster time platform and greater and our customers on build industry platform to partners enables to leading common Exchange, or software, a to solutions

they outside our become more to core. Second, problems us OneStream, asking diverse reliant as solve on more customers began new,

their operations financial and to solely As beyond we matching past helping original are core additional improve transaction streamlining our providing mandate a traditional and operational sales and important ESG, value planning account steering far like financial and flows, reporting an enterprise. planning and operations. By solutions and exceeding day-to-day speeding customers the we result, like CPM with business planning now performance processes role actually across expanded extending moved in management, optimizing reconciliation workforce playing and

single of our truth for operations position as Importantly, firmly our source moving a into solidified customers.

also office our AI of solutions enhance to held the our bring Third, ago, We intent AI. building encompasses We extensibility platform into packaged with to to a since and coding transformational saw AI of our this and began of the decisions. key learning the AI the decade for processes inception. machine approach nearly financial potential CFO

requiring machine is value which investment. ML sensible significant in created customers, forecasting cases, improvement generating, for purpose-built improve repeatable, a demand Our in transparent product data forecasting Sensible significant to so The their without was analysis data ROI resources. measurable first for companies learning, and their many significant demand leverage could AI which a finance of real-time and was science is

While days, an the become product proven early in important differentiator been still ML platform. customers our multiple has market and our of at

our same of and We from are generated AI road customer ML We the leveraging continue total over as more we'll approximately develop over outside it. XX coming developing we countries in which about in U.S. map, customers with X,XXX currently hear the by serve to Sensible XX% revenue transparency trust

vertical. blue-chip base represents major every virtually Our customer

planning financial management, translating AI-driven in progress our or how wins to and and in performance areas, turn applied solutions, of finance is CPM, tangible X me some operational solutions performance core and core customer QX. let Now our with latest our results growth and into forecasting

largest we important the and point of relationship also in manufacturers our from ML. More every with that the the aligns retention. The example This this platform. depth our platform advanced vision, journey core a with extensibility differentiator. for devices our hearing financial point the historically our more a we Sensible X-figure platform X Microsoft. signed ongoing solutions we streamline as On core customer. and power reporting number trend to eventually, replaced of our analytics X attracts is of and consolidation, reflected are of new to solutions also It's that as as full case, and the with X analysis an medical systems both close, customers GenAI our our of of of present with platform deal from CPM, win customers strategic retains Sensible One an to ML is strong utilized. In with well disparate we increasingly the including replaced average, customers Sensible

also services this and ML ML. a supplier worldwide. and products customer signed to contractors our our core and Sensible Sensible offerings, reporting financial new military encompassing Another defense of X-figure consolidation, This AI CPM management and quarter deal customer including a was

planning we and the a they their discussions more. begin Looking This with of and ahead, plan phase. is first, in example add core how do do great our to financial analysis customers, second then

I banking Finally, in France, group with largest we had the highlight to BPCE. Groupe quarter second win want this a

replace to and is number over X of technology a our for customers, XX customers once stated May continuing and came X our and effort enable This to systems attracted to record in One reasons that was a solution. again deal consolidation our with beachhead users with the further X,XXX of the conference million is enabling Splash us. win modern a prospects. the customers OneStream's bank's user This pivotal unified around with core key X-figure foundational chosen service our objective and engage CPM region from globe. In

customers. on focused is conference our about everything know, you As

performance the satisfaction, only are goal OneStream year's customer shared beginning OneStream. At platform at no we serves future. to the as more at leveraging also Every deliver to the about XX not than strategically different. Our utilizing very platform but was We have that the their innovations XX we reference ever today one start the from how business product customer where XXX% excited a were customers is for particularly to and the they Splash, shared delivered steer to most time. this event,

Let me a couple note. give you of

trusted within First, BI allows from no-code and provides to OneStream that data BI. consume finance and seamless Microsoft our operational Power financial quickly certified a Power integration connector connect Microsoft's leaders

OneStream narrative risk financial advanced unifies of and helping spreadsheets narrative data, centralizing data. validated reduce and is assembly that charts of capability streamlines customers linked reporting narrative time the our an to including Capabilities report save and reporting intelligent into and hours automating and are books gathering key report errors. creation, all Second,

of commercial core With simplifying configuration, consolidation, simplified version creates prepackaged across targets product the financial up finance activities speeding and our Third, Express including prebuilt flows, Express functionality, reports our reporting CPM and CPM and processes a forecasting. our predefined CPM function. capabilities, and core budgeting, guided customers,

platform, across in solution eliminates Finally, approach leaders momentum mid-September a and FP&A and of business in the steer demonstrating towards Infinity OneStream at finance Wave silos unified We Sales The analyze Copenhagen solution November. misaligned Conference PartnerPlace helps partner empowers announced forward Performance to performance to revenue our the in extensibility Management growth. OneStream. our data enterprise. and Splash at manage EMEA look user and Developer teams new This continuing the new the objectives we plan, and on sales built conference

and turn detailed Now our me for to for balance year. a of Bill call more the about the QX let over the discussion outlook

Tom. Thanks,

completed our me just IPO to to comments call. echo excited about we Let Tom's how are welcome our have earnings successful QX you and to

model. our full to like I'd call, review that, our After QX end quick first the with a guidance and our QX begin our and is year. this with for financials I'll As of through walk then

expect We remainder with at revenue convert of which from scale. support which comes associated business, percent impressive our implementation, continues cloud term-based we revenue SaaS as to to large Currently, model, as show have subscription highly customers post-contract to comes other a customer our subscription and computing to includes a our fees. SaaS contracts, predictable we revenue The and and of growth services services continue training. license renewals, decline from as consulting revenue well software professional which

Our offers can position. best-in-class to cash growth industry-leading of also expansion free consistent visibility. invest flow and significant in in our retention as the maintain model even The we our array and predictability drive our leverage continue platform

turn So the let's quarter. to

on XX, of our in QX disclosed filed and section Annie July filed procedures mentioned XX, as as XXXX, XXXX, estimated we part SEC the with results ranges S-X and all not As earlier, the had quite prospectus our of finished on review. July we close in our IPO preliminary recent development of

from quarter partner to year. are million. services to that total the work. in XX% XX% the We the QX pleased represented driven $X for came revenue other range. Total year-over-year year-over-year continued Subscription of expanding revenue International increased $XXX Professional in XX% ecosystem revenue implementation was of X% the end revenue our for and was quarter by revenue million. our down GAAP the million, grew revenue. primarily second at roughly $XXX actual leverage high results This of last

be of existing both growth, with from by expansions customers came strong new XX% which our to come. gross coupled expect years is key logo of we our also growth as for Consistent business quarters, than revenue new quarter continues many this more a to with differentiator. engine customers, to enabling retention, prior ongoing drive That our

million up to year-over-year. increased to year-over-year. obligations, ARR. RPO, to was year-over-year the those, XX% value months $XXX customers We Of year-over-year XX% the with XX% XX XX commitments making greater $X XX% long-term X,XXX in increased quarter customers, customers Remaining billings had performance million. over Our ended up $XXX CRPO total than demonstrating million, or of OneStream.

year, revenues second margin execution. last XXX increased XX% put for for points Our up year-over-year. from basis about reflecting non-GAAP was to QX recurring efficiency growth programs and Non-GAAP gross XX% in quarter, and the expenses improve the place of operating

our the prioritized leverage manage business growth We efficient and continue to operating have for and spending accordingly.

loss of to $XX XXX operating an $X the million X%, loss for last QX This non-GAAP in Our year. a quarter non-GAAP improvement compared quarter was million basis of year. for from the a to last translated negative point operating margin

We after third were in having million exercise We general balance $XXX commissions, which Class of underwriting in cash million deducting purposes. the million the quarter million common be our cash for stock, we generated roughly ended the our including the shares full increased corporate over-allotment free and For $X flow option. with We consecutive used to by the cash will sold end, equivalents. Subsequent selling shares $XXX and positive completed quarter, XX.X the we quarter company by shareholders IPO. sold and QX. A underwriter's and of discounts

reminder just earlier guidance, give on QX comments I Annie's our a results. Before of

cash recent As for section income and on S-X dated XXXX, XXXX, flow. July results and part revenue, SEC with estimated our of preliminary of disclosed the filed XX, the QX we IPO operating July development prospectus XX, our

As in these such, future results expectations have our already outlook. contemplated

the quarter. factors should for you our when me outlook review Let of some mind the in keep considering third

U.S. predominantly deals generally third whose fiscal requirements. license end First, that large years per recognized their renewals, revenue These by reminder contract September. agencies just is quarter with impacted are annually the a multiyear government in our term

term significant XXXX. revenue a that X-year license large license QX in in renewal had resulted Additionally, in XXXX, we

expect marketing Next, sales for to percentage in areas, strategy. including a our QX, revenue, we increase key and we invest as of while branding

approximately compensation area nonrecurring $XXX investment important as and out us, anticipate Solutions ML an $XXX AI currently Exchange. remains charges we R&D and IPO. QX, the stock-based efforts million expand to which We of Additionally, to related million for of build in especially million the is $XXX our

flow the efficient to fiscal be for Finally, to expect year. cash full we and free positive growth drive

Our guidance is for QX follows. as XXXX

in earlier, headwinds expect to We I to revenue million be growth to is the term net more XX% is share at due but $X.XX total expected Non-GAAP per loss plus operating noted than QX, revenue to to expected $X.XX. margin revenue $XXX to be for expected $XXX continue to million. minus subscription QX license be X% minus Non-GAAP X%. to is

Total operating follows. is expected for X%. $X.XX minus loss to year is net minus to XXXX to guidance be be Non-GAAP $X.XX. be million XXXX million. Our is full is Non-GAAP $XXX per $XXX minus expected to to share margin as revenue X% expected to

turn well is closing, OneStream about too I as aware just and Matching of company back the our share optimistic public to visibility the the of OneStream. excitement need platform all leaves the enjoy for with wanted incredibly become the I Tom market. increased the us CFOs strategic call a Before about am I accelerating believe to focused. to for my we to his more I demand capabilities ahead. positioned meet opportunity operationally very

Now to turn Tom. call let the me back

and of many in the want we the plan ambitious as over our customers recognize to and past OneStream. with solid you to to incredible as IPO the including moment OneStream global story. When and amazing world. our clear exciting I shared this our Thanks, be weeks met founding partners start achievements, possible months, the IPO be to their without start Bill. commitment, successful team well you and chapter the From a that of most hard OneStream's loyalty. none recent want around of I our for as we the take thank work very to for would we next and a XXXX, a

to commitments future make lose want AI the and those CEO, of continue that to decisions. we platform to shown continue investments ML our I in ensure such job industry-leading sight we important out with and is As long-term investments have foresight the and and drive never making be to building sure products as solutions. my right we our focus

Thank As about getting I proud optimistic believe are achievements as am I date, been OneStream's we to and more started. our just future, of never I've you.

now over operator. Thanks, turn things And we'll to the Tom.

from first from Quintero Stanley. Instructions] the [Operator question Morgan line comes of Our Chris

looks positions in on Congrats here. to hear Awesome. lot beachhead solid Europe. in of deal that job a also a open quarter great first you Really It have France. about like

of there hear accelerate curious for and much be deal growth an unlock how So to this you the to hiring in can Europe?

Thanks, Chris. an France establishing, this because very for a is and it large multiple industry, a especially exciting as deal is again -- and excited consolidator us the that position large as you Yes, in OneStream, market a solutions. opportunity of our for establishes know, about banking we're

scale So this we you see in are Europe. in can -- I've calls other a at of that point mentioned

business definitely So we we're XX% with of there. investing -- coming of U.S., heavily our the outside

so momentum segment to and again, just it invest to the And opportunity that business adds grow of continue for region. that for and the the to us

from next line our John Securities. Guggenheim comes from DiFucci the of question And

my to of So about OneStream. -- in question's for you Tom. in Tom, front opportunity trying of the think front

You said organization the early still in finance is innings. digitization of

and where consolidation what financial that's using Like is you're hard we try on. of at figure know I'll of something to simply that and are can field. close? for companies and referring much opportunity triangulate how Excel to But competition the Now that people much out? how we opportunity for is the -- in greenfield, And because to Gartner to like call really IDC look talked we we've us planning all in things

big still John. Thanks, actually That's really a opportunity.

more to the some number overlay of in that ERPs company. like You'd on that their make the their top actually they the together the way to put resources companies surprised rely static can still at can of that in information on get of way Excel be sense, manage

together organizations meaning if have to get the having your these X, rid realization really with to X you're along pull solutions information, that challenged. that they different are opportunity solutions so of many well, and X, of So as the required you that point large existing have replacement

opportunity, those that no onesie-twosie, realization greenfield the really in plus of estimate a all up, place, you only range. to not if that TAM So you be with the sort we $XX in large add of system billion something end that buying plus the up

That sense. Hey, adds of up. and all guys. listen, lot on makes all nice a we've done work And job, it, it

John. Thank you,

next of question the Citi. line Enders And from Steve our from comes

I ago? guess at asking ML of think But the Great. that. maybe Okay. was Splash related to kind help opportunity few months conference Splash us maybe about thinking a I excitement maybe about of off know near-term that's a you're from the how there the can the you opportunity. about and of that Sensible come opportunity pipeline lot

Sure.

market from you pipeline. at and momentum So we've but and that helping their as fit, we build customers coming really validation Splash the now stories build have said, it's are the saw we're early that live days, customer sharing these really as to success we excited proven are us product that

the So ways it's company it when benefiting term, now. we that a think about right there's near from X

our to but Machine we've to have that we deliver are as we do a it really them opening in helping opportunities net sense our advantage convey to do to in things Learning we're through show significant suite them they customers, that area. to our alluded remarks, be have a do them advanced the that sales an them in core, analytics also the new the able First, that product in help journey approach Sensible help competitive seeing integrated our

analytic the so next opportunity to represents of the capabilities. are on And and same for for are ready take it that important that growth. really us upsell their advance companies platform that's existing lever time, an step own At to an that

well. that seeing motion we're so And as

trusted, have that give but excited I X and are that in to just are this applied that And to Learning on this really AI we're leverage get So to are a we're there's that our strategy repeatable, building highlight, our and that build characteristics AI really entire that momentum defined value our core not can around customers we're that is our Machine only wanted into, seeing near term, again product. proposition. we from Sensible auditable Sensible products portfolio, leaning

of next from Mark from And line question our the Murphy comes JPMorgan.

of in -- CIOs in replacing which can partners most typically the And we networking, OneStream then you and And mandate feels consolidate you've I you're on systems are this onto we're today it's how CFOs. deployment. stat noticing ever best that X natively products X quick Can the it you them determining to have it to follow-up. platforms those new recall than Tom, to point those incremental stronger into to legacy And our the build creating true at among then got opportunity? for are whether adjacencies MarketPlace? having OneStream build versus the a maybe speak

Great.

They the I an mixture. think when have cubes, serve, analytic So financial looking opportunity. to There isn't down businesses really this of legacy. system legacy the types that any they're what complex point The at caused really multiple It's Phase or mix enemy closest out you for systems sense whether multiple consider and we're sort X It really a a sophisticated by complexity comes existing operations. isn't or -- new down could the you that of thereof. because It with solutions. fairly It related -- given comes one the of any look the to solution. usually a are particular at the brand an might business that incremental point you OneStream. makes think there, when and see solution be about replacement, we

rationalizing that the is it's being for opportunity. force So us, the

really So that is of when is about this. we the it really think underpinning that, --

on what And either the X Okay. SAP particular or quarters. Was a incremental for just or then I mid-market who than mix XX. competitors. then quick other replacing, the change speak number? whether traction in within adds, Hyperion the drove Can you're prior any customer it It you follow-up of had looks And to the XX, stronger overseas? that

the that adds. XX become that a -- from we're expect our mid-market or lower is that that for kind number focus about our mix If million excited unreliable to market away we also think the redirect and see going at as customers at CPM because increase as So get leverage your that future $X you. of or kind in we number an but talking you're little that, of on about customers about Express it in of segment the excess rather in products. to look I I'd number customer on we're we an bit of the adding we more turn focus level,

So for we learned enterprise our both it's can that way enterprise in in segment. taking middle give large me, really where more knowledge the the really main the and in we've emerging about value packaging success, where company success that increasing the to we the this built then we're areas, large and at that companies these a

out what might in going less change that as -- project I'm customers. of we the on So to focused look like to to count actual customers over time, you're we get X rather X,XXX than because years I see think,

those be areas. still counts -- up, a to healthy needs and You're it's both going see customer to to going of be of go kind mix

line And Koji our next question of comes Bank from Ikeda America. of from the

wanted ask a to the public the especially of about I here. at look the one argue CFO, one of differentiation could I the out with platform. this might oldest a be becoming ERPs. there, on When company question software office categories of Congrats the

term. nuts of would OneStream the that really And defensible voice, bolts hear over the to platform the some platform, long the think made of Tom, love you the from here about and your platform so

Sure.

a foundation just a level representation we're of ERP there. all me real around physical quick static ERP business. a Let as sort think Really set so just more provide of of a

OneStream recorded that you a in of of platform really involved or when think turning of model that's by And logical you that's into the and think so ERP a being view data align that business run way data helps so that's management goal and and it the they what a again, a a really into that can is. information the execute in actually team turn

that unified take set is to or these where the leverage integrated or ability and customers that set to technologies only that of what platform, browser, that single distinguishing extensible integrated also further, to top to different full engine so started described industry for top planning that layer ourselves the really the the engine, in work property then that hard experience even Excel, of statutory taking the build built intellectual allows to data. But owned us with really unique that having are in It we in do building uniquely integrated just required, It's that horizontal, which model the data we view us both data so that -- we characteristic. call capabilities our the intellectual And the deploy the being engines doesn't Now gives us step capital our that it information? either other data not can to of then that partners more a development AI a fully all truly data build. engine, solutions, or the defensible the can that that modeling on that -- external letting commitment environment, by what able platform, engine, is -- vertical on that I presentation uniquely creating factors, workflow surrounding integrated that customer call on into it, technology. And that create get but another off you customers. I into tied that like allows integration a model, dimensionality our system this turn it that we and/or unified and position on unified form are have

on competitive us platform. see durable pieces as growth this really those those top a sustainable a long give model continue long-term as and advantage we opportunities create So to of or

line next from Peterson Raymond our And of the comes James. question Brian from

quarter. strong a on Congrats

product, that up wanted After that that deals? is at the are embracing expect is impacting of that on Or rates Thinking the it's Sensible in good something just adoption really customers you from high of new curve I level a where some follow on that that see of to So something the to attach presentations existing extensibility? about new Splash, sitting comes logos. out ML.

are partnering on upsell focused in from getting definitely were looking those as pressure analytics seeing message new I we be helping were -- because journey, us. on efficient, earlier, management co-develop -- customers to are you for are more going mentioned see very, it that originally, Directors an and Boards to attach sales the increasingly cycle little -- this digitization, largely bit us as of and from they're this advanced. I more the were important that So it that a customers with we But very how those advanced teams, net it's become on they're the become getting

important our overall new so be we're well. process of sales as And it part seeing an net

both. seeing the that are of without on see upfront some without purchases optimistic we were to current that projects value did at doing So proof-based I'm we're saw on that you having the we deals success establishing in proof customers. go equally the through and because we the quarter, Splash And or the of of these with foundation our

comes the Altmann of question from line next Nick Our from Scotiabank.

get different a maybe to commercial to I way. commercial-focused it as started I playing a kind asking I circle sense to But long to motion guys question not you a go-to-market mean ago. Tom, opportunity but too out. of is the in wanted DiFucci's John how back wanted

exciting You've running quicker. customers and had announcements help up get and feature commercial some product that

how just medium So growth when how look about relative the overall is talk trended out commercial of factor over can algorithm? a to maybe the motion And commercial to expectations? you term, has the you big

Sure.

customers, between of, let's up but ago. in are sort the we've team, base call of large ending a us of X,XXX it, lines see we're now, really a the customer enterprise some of look best think serve along that our of kind have and So platform company. companies days, focus XX,XXX really at early We we're it customer right you as the call that do And the thinking really large it, now, we about other thinking as it's business. which we thinking looking -- let's starting at the dedicated split sales are created look at this at about X,XXX the what customer. customer the around, about future to to differences over we we We're thinking how do We we where range. and right it year emerging we are in have the on like

forward the it's great And really with product. a that move so I CPM opportunity for and take us think to Express

and really, implementations for up, seen So best-in-class prestigious the it's we've to we've brands take really proud the we're large many show that an us expertise because of. done important opportunity that so

and be onboard now and has X, companies, excited the have aspire used that is sort customers I'm to the growing to that off and right can the get if platform some because to of these future of prescriptive they team software Our go level, train all there is to the most with to fact that. way Fortune communicate the share at information, that our OneStream be don't that large are we they emerging we what these about can companies. And

So approach they're giving way the and through we talk then adding really and quickly of move on on, our we value them them the great them without are deliver a bring the changing along and journey store-based experience value software, or them just that and about. exchange where they can that all more a the lot meeting

And our from question Terry the Truist from line Tillman of comes Securities. next

commercial the me or bit from I we could want on go replacement little as enterprise Actually, not the opportunity for but enterprise if this XQ on to know side. to And you the results. at can. and I but side, is talk well IPO if Bill, strong maybe Tom back side that don't a the Congrats the more

because of kind about the cycle would think how lot curve you the potentially, Fortune this replacement contract of about legacy there's migration think Or front vendor? know just accounts. the the of of cycle. do know you renewals of for replacement tilted to because things see AI, cloud? it this know year things Is pretty an the replacements. You about where actual cycle? linear for like could the like I you of this Maybe ERP How XXX a more these end this every love get to you duration

at really way feel a that look it's Terry. that take I only big we're we The X% penetrated, that, I'll opportunity. Sure, it, again, so just to reiterate,

what mechanisms change different a disposition, timing that ERP It is in Like there's of establishing could these life so all, year long technology be within All different of and are it these cycles the a terms trigger that's questions a companies value of or that end there's and we going financial -- look deals, customers about they things calling transformation just with up -- XX-year trigger of really the they up vendors. And the with accelerate. we an at journeys have are relationships themselves of comfortable we're on when rollover, company so XX-plus that it. A there's around influences. a In happening deals these get of -- lot and different at they come other times, as be feeling and these to can these start is of it's more it can lots part it, is that to are been a an sort it tangent. an priorities, open what shift -- to table start these anything from cloud. get different or they lots to acquisition you relationship, to or look said,

the driver. a -- It's It's they're I data the are And especially a we're we've to types still whatever that large for customers and all the workloads again, that is. looking to that lot and the more -- mentioned, now these -- centers serving, were customer answering that thing transformation, there's meet the cloud. not As economically that cloud these at of moving it. were at that reason scale they had been type know that's of at types another driving ready on specific of viable enterprise, companies I'm wherever not at contribute. digitization, we journey still this That's AI, not

from the And of comes line Research. from Alex Zukin Wolfe our next question

from first out quarter layer kind any maybe Bill, if geos And a big surprised saw or anything in generating you, that events go enthusiasm? on Tom or or successful you Congrats really incremental customer the just you about XQ, quarter, IPO just obviously funnel there demand how your of deeper. you're you that in Splash given that the kind maybe the perspective, -- the cohorts linearity of of you? or think Were were top for kind general you gives interesting gate. saw Maybe verticals your or seeing that of funnel maybe, pipeline of that and one in much environment the

trend again, of about excited already banking. about And deals Yes, that seeing in have continue about I foundational that say this investments way in presence excited foundationally, I really investments, that And of We're some see we're When we to continue platform. the really deals. of garner are growing the from of EMEA value means I'm these the the you larger customers. excited million-dollar larger really attracting we terms mentioned. people to that had

and to And to forward, think normal. overall, think growing I like environment I so me when business I feels call these about moving the and opportunities what demand about the

say so that of seeing sales level normal contracting mean are approvals, just expectations. normal of I normal, level And cycles we're that I when

anomalous just -- balance, say there. of of environment. we're across towards both there's operating There's the a a basis, pockets [ weakness anything seeing it's I ] then quality on a not we're So And would would like on little that and we maybe kind global pretty calibrating generally, I aligned And U.S. strength say more, say EMEA business in I'd to but feel overall, the others.

our question And the from of line comes Berg Scott Company. Needham next & from

results to spending forward, here. enthusiasm category for look recently. right this you now? as I is deals there in in have of of fantastic up universe other quarter But of your last you're there quarters Tom been sure your software or office drives Nice at CFO quarter, that of, if going look draw guess, not at the want for what from as and this seeing guess than Bill be couple sectors coverage because I better to seen a anything the in maybe the pipeline you hold this. now of the our more kind we've of I'm kind terms take resilient

that pressures the Thanks. the corporate Yes. really XX this doing of in just and into general on -- of having years understanding job CFO, will and provide have go context reprieve this finance the there's kind spent and office my no I ever. again,

think rapidly they're and times, so what changing macro there's in off seen these recent sure I -- make macro now we've more that truly a the history of we've think modernizing time as they constant And to adapt pressure. the with and pandemic, And lived can the in over here environment. you're coming I that that believe current companies to seeing it's turbulent

a that for of component components So which statutory what's into I our it. proof business high saw, it's of to a to to That burden is I couple enthusiasm everyone important there's we There's think what deliver. a have understand. means statutory about that there. think there's an -- we go component There's good

but Our numbers also creates have a numbers be continuous right, do your fuel and numbers that be to creates have to your read. have because to report to have or and need -- a you moat statutory they you

to there's that the So that CFOs then also become always this feeling business. perpetual need, but to partners there's strategic have

heart kind -- wake element there valuable. a in steer other the digital to a of as -- was information that that I doesn't painted, I've is cop just the critical. There bit to I because you like say. That corporate corporate I'm I I cloud it's think and partner, changed was that but the office rambling in had I the just that's strategic general little are because wasn't opportunity. of you're the -- know this some more also and that little has this here. making of forward a idea of generation really more corporate it's you When sure really, it, a it's not -- cloud, that people areas. And of then in right, like is the a for transformation more feeling no can But so digitization, there's wasn't be we bit this a is And finding And that longer that I there was acceptable. solutions, was really is up other this platform the that the a important of motion cop the is CFOs point mean -- I finally used this first at to context company of CFO felt on curator really what of finance, is

office You starting you the so I pieces business. have platform, time with see the again, of to be a how the that can work real to invest rationalize CFO this to idea work of a think, in it's you're eliminating And together. redundant truly these that partner

question Piper next of from Bracelin from comes And the Brent line our Sandler.

point You consolidation savings? Bill, and talk enterprise OneStream modernization, QX release. very through the flash about moving to there? summer, few what on follow-up list. And savings drive driver solutions I'm X IPO I this wondering, I talking and the then, the know X software Tom, there's could ask X keep But up as by how over just over from we're going important a environment, you is saw the XX%. replacements that to is these pipeline growing only the because cost and firms replacing. to you're weeks just you through the the build CRPO priority cost in triggers

of little Yes, I'll a we're take reiterate Tom's that commentary we bit in normal the just environment. like a feel I'd beginning.

Our pipeline is building.

we the excited that the really of half working for the hard guidance building pipeline given and would the team's obviously and year, the second year, of we're expect, gave on the you you pipeline. As about half second closing

a second a we're org you've well in, our execute feel I about positioned branding he's new meeting, original for of who think of year year. And of -- and a CMO we're that done we think our to positioning. I up Tim's I seen good in you those the at really And and I come job, think the think some were we ago. and half show in hired

when just able higher right? not point organization, and you're your about X licensing -- with cost. a for think burn about in when at kind the not expect When And potential would to job the You're I'm be deal, multiple cost but a Great. to of solutions, definitely selling kind when you done, I'll the in out but we're you're always to follow savings, eliminating at cycles and opportunity of savings. reducing for looking a talking morning value, just also actually you up looking meaning get deals quality actually more till you're the the your deliver lower on team

that, in, focused deliver of a economics. technical sure go conscious really on team we helping savings very, the understood and the And is we the very understood. and customer when understand how customer So the to our we're at making debt are value is actually the right that deliver reduce can value value --

the question from Matt of our VanVliet line And BTIG. from comes next

if with you the several last quarter you know [indiscernible] this sort the just how us of maybe what otherwise I large mentioned sector [indiscernible]. looks normalize, ] coming help other contract public year. quarter especially I fundamentals And mentioned look any in us the like strong on ahead. understand in But both subscription pipeline just the for third you might of then growth. sort the details quarter help you the can up [ the underlying you growth of [indiscernible] business? in guess quarters and

kind Matt, of little in Yes, you're cutting out and a bit.

answer question it. to your going I'm I as heard So best

respect I public to think was sector. with half first the

sector. a excited that. public have and significant about We're very We growing

SaaS kind starting however, public of were do that. What doing now the As a deals, one on-prem in is seeing, public we're whereas sector see an finance mentioned, them years for is of you sector deals. we're the number QX teams to important ago

shows a obviously, of then whereas the revenue if term-based obviously a QX. you lot over so that up have historically, accelerated rec for ratably And the the do in deal, of you rev contract, term

very we to a But that's excited consider. something be to about it. great So have going team and

remarks to you continue more kind reiterate that just in terms a that's question. I'd prepared at would think I have growth in Great commented subscription of revenue we expect in and XX% I number of than QX, about. my normalization. that

next Derrick TD from our comes of line question the Cowen. And Wood from

when will you, some Express? or upselling that for how cross-selling larger coming with and to the of years. growth the see per the execution And how that guess do nice ARR you X.X more that customer new time seeing of landing this introduction last of double-digit base? when and in couch looking Bill, to Or over changing been able take from impact? some I CPM is algorithm of wins have much much you've meaningful Are much customer kind back deal sizes is you

would that $X have are we Great us Yes. over paying now I million. mean, reiterate, question. XX over I customers

as obviously, was that obviously increases So then a per would reiterate size that bit little what I the deal. average Tom grows, number saying.

Express, have its days. think and in but average number see the early I of Express of which bit we want CPM We obviously kind launch accelerate a CPM significant a headwind quickly, of obviously that very of accelerate on a still per be that mid-market size to we is would number already, customers with really want to deal.

that and enterprise those the try businesses we guys executing, and on. over Express So quite I to, time, performing. obviously well of this think, how with communicate on business help built days we'll to point, different I excited about the at you each really are is look, think, But CPM we're early pretty

And our Rob next question from Baird. Oliver comes the line of from

on for one just you Solution Exchange. Tom, the

about we're think I X.X years.

have great. revenue where I the rolled be there around seen you revenue upside for you of launch think you thoughts can 'XX talked the would of streams. kind base within percolating for expanding curious, I'd And metrics terms be with or and new perhaps And either in that developer since share can you things it didn't expect guys was Exchange stickiness Splash anecdotes, about out. you've officially it you what guys seen Solutions Any customers, of productize. opportunities or

that. to love on expand I'd Yes,

broader but now create we company the platform, solutions, The decided Splash was kind MarketPlace to very to solutions what company, our OpenPlace. We introduced management company, are and meaning the had sales OneStream a call partner-related a on this performance exit software their was on solutions. our solutions of we're portfolio solution, as relationship base. of encouraging. developed their next to on beginning actually we've at now the the notable to had over -- we ISV this which Solution announced think meant because decided platform product we I bring to up, internally an everybody create call since product -- OneStream CFO their next-generation created had Exchange an the Solution sold partner Exchange, a that That's have the have we our create of had as horizontal well as XXX -- was and really, really customer that of

it. software the great So about that's go-to-market again, this to for partner And learn that active as that all flow talk the through as the well see creating providing we we as a about motions as us see AI our economics MarketPlace. think we around the then and portfolio, as we prototype those from products

I So hear AI everything other or talking around the about products, horizontal mechanism ML, Sensible surface Sensible us portfolio they through MarketPlace. OneStream around the the

we of right go to a in after it's at there's to expand And areas slow leverage. do little go idea term in that that, of have pace. is that overall to it you strategy. expansion go it into here talk it. potential and the this our that want you a thoughtful refine be want make We platform sure make and a that has lot accelerate one fast, -- then thoughtful right And very way then sure driving, go about you So though. that to we that and a to we element and you critical where look you It's the the refine racecar

really about at. in the the I extensible you what first-class infinitely excited see is solutions our where more say mean are So we're And we're when I of think I some about really that, that learn you can MarketPlace, about that platform. as

I'd back today's Leschin to for like question-and-answer the Annie of remarks. session program. further any And conclude the this to hand does program

our Thanks attending upcoming conferences that again. next you to for be weeks. so thanks, in we'll operator, X hope and joining today. everyone, see Thanks us the at much, We

in does conclude gentlemen, ladies program. today's for This Thank your you, conference. and participation the

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