OneStream, Inc. Class A Common Stock (OS) 7 Nov 242024 Q3 Earnings call transcript

Good day and Welcome to OneStream's Third Quarter 2024 Financial Results Conference Call. [Operator Instructions]

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Annie Leschin, VP, Investor Relations and Strategic Finance. Please go ahead.

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

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

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

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

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

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

core certain management that that ongoing not expenses performance. excluding performance may measures our our liquidity provide non-GAAP and meaningful indicative Our by believes operating our supplemental information regarding be of

Relations press can presentation and highlights our website. found of the Reconciliations measures afternoon's Investor most on GAAP to non-GAAP release our posted be comparable the in this directly measures earnings

Tom? over Now to it Tom. I'll turn

capabilities we another third review We're performance to [indiscernible] data again pleased by our financial of analytical us Annie, strong team during and the and and one you, thank Thank The performance. results. joining complexity vision further. a all operational financial against With take eliminating with CFO finance unified for execution quarter to solid combining you for showed is once outlined management platform, IPO. this to afternoon consolidated OneStream our the you view report for

revenue grew and XX% quarter third once subscription free the flow We again year-over-year positive. cash in were

our of growth. on hosted we've far other year, innovations Copenhagen, the introduced of expanded slate investment this this durable the where continued and also achievements, second user we new year. progress Splash thus We of successful to all reflects our conference drive Among EMEA

visibility macroeconomic affairs continues invest the to headlines, state become a and CFO While the economic last strategic relative requirement consistent a environment modernizing business, We to the quarter. industry become or compete to geopolitical of regardless of the we finance the OneStream, allow at to market grab need of to environment. believe improve driver has function and saw a to in core effectively

I need early The quickly this cloud-native operational and very other the view to CPM are which trend the This driving initiatives of our will To core the in X review, trends echoed was begun launched drove finance has solution that to still first, market touch us quarter. upon factors shortly. today. XXXX findings digitally Finance create a data across more a areas, provide this CFOs process enterprise. in because far is single recognize so the behind into More still cloud-based transform. it for platform many But started financial transformation. it a operational to the and the

insight financial operating level functions, of that providing and Finance system analysis. to an and exceptional unifies multitude demand departments begun a an have even accept of

enables the start With the factors CFOs these asked for all from towards do of the business. manage on CFOs OneStream's more, uncertainty the future. are today to real just performance to and being from geopolitical reporting regulatory, strategic face macroeconomic, and businesses steering to to driving Second, past financial business transitioning platform value

operational and and performance. more business the plan ML to model. and better unifies increasing on decisions AI data informed common and one value The make processes of knowledge and AI workers faster. OneStream and Finally, using financial are data platform embedded

trends success bringing innovative expand development X to through addressing Our functionality in these platform. rapid And centered ability its successfully our product has these both new and always on and extensible technologies market. to consistently our

And reports, in our we These history. and most of bringing this documents our critical has introduced innovations, what to our X audit [indiscernible] builds periods new which EMEA total narrative been conference introduced streamline user place. upon include, access we in company's capabilities one advanced year believe one navigation capping XX, the narrative center, in to the September, bookmarks to reporting one, and I innovative

we AI helps that is include anomalies detection, a This consolidation for reporting. part and of offerings our prepackaged Two, to Applied cleansing finance leaders detect method anomaly AI-powered expanded Finance AI data OneStream's scenario machine growing sensible includes of once sensible AI sensible AI and which includes portfolio, forecasting and planning. which library, collection learning, Gen routines, sensible AI AI we're prepackaged a including

exchange Three, all evidence tax offerings to unified Ilumya inherent criteria availability announced as the support showcased atop within the Pillar solutions and continued OneStream OneStream built reporting. regulatory Pillar from on of platform data X further tax we leveraging AMCO, of and all X solutions expanded OneStream it. the BDO platform, innovation both the at

evolving utility With of and investments. Solution adding customers' our continually these to to have now and on our XXX value OneStream new for offerings, Exchange, global demonstrating we ongoing the commitment our needs support solutions organizations,

you base. us many years, these primarily focus can to driving coming the on our In into innovations expect install

we Even leadership. continue further technology as our to investing

turn me to customers. our let Now

how to inspire leveraging our analytics with to about the talking. our let From they experiences the working the team conference our sharing user of we unique to great and that asking are and peers questions OneStream productivity to next innovation. One is customers drive through things with on

weren't me heard. to you share us Copenhagen, a examples of join of who let For couple quick those able in of we what

have their X tax our the Building Pillar our with OneStream recently with company. logistics during their OneStream's along keynote and applications, have upon with Let platform. that presentation our they me continued to use their expand begin XX-year and demonstrated large consolidation they developed and enthusiasm financial ESG a the we Their matching and of added solutions. partnership [indiscernible] unified forecasting solution, shipping for how intercompany transaction of use reporting

Today, they over grow, expand customers core support to and entities the and our is there growth to strategy. with globally, is plenty use using at durable continuing to long-standing of are X,XXX of value OneStream room legal

the Another ensuring customer the on forecasting, stage retailers X,XXX largest quantity, in one right right with Their and over of of location. product, the employees. with accuracy turns Europe in X,XXX the on their locations in right the success

excited and they are do in satisfaction begun to with and that thus ML successful far us just joined few deploying using examples see next. planning Today, they they have of consolidation excitement, and of advance are to a value, what and to These OneStream. share their a sensible forecasting Onstream's journey journey we're proof financial successful Copenhagen following customers their

over have count We new XX joined total our customers to X,XXX. this customer OneStream quarter, bringing

of important becoming me worldwide. a how Let platform wins demonstrate companies just couple to governments and that our highlight is

important I'll start with a few are wins in among which QX. government always agencies,

reporting, added government to multiple which for monitoring. a Washington, organization we was truth legacy as source D.C., large quarter, siloed in replace looking agency single of and This a The planning picked applications. Onstream

older X budget solutions formulation not enterprise-wide legacy We this agency. their level point error-prone execution. for detail used manual provide did These and to will ago a solutions effectively of the decade needed implemented be more than manage replacing

for civilian as in fuel plans after Defense this to Users Logistics well. financial Defense their upgrade hurricanes. employees, the the dollar This staff other With a their will meals, has consolidate providing agency government deal. quarter OneStream budget in and things, important reporting and agencies planning, was results. that agency, that, supplies execution Logistics budget is significantly support combat processes Agency all selected very utilize The the will Agency XX,XXX DoD, over [indiscernible] and now to OneStream a requests, execution provided multimillion agency another the countries. largest and foreign is among logistics OneStream

DLA CPM, now the automated support For of core financial more OneStream's DLA expensive license statement the will a budget using and be an combination with formulation. than contractor has Utilizing and a been a for statements costs. SaaS preparing preparation decade, the annual producing creating programming all providing to reconciliations, automate from financial complete federal able everything financial a budget, its and lowering simultaneously planning and DoD accurate while performing to report, consolidated

reporting the took and processes and EMEA. the position France statement legacy tool, solutions, regulatory to legacy a scope the a to of in added the company as financial consolidation natural standards, to of solid the data requirements. its We current opportunity in changing world finance leader our of obsolescence market Continuing rethink [indiscernible], in outdoor current model Facing its in enjoyed also light build we on successor the quarter advertising.

of as future system discussed deal foundational BPCE performance improve credibility to replacing is provide and solidifying and The win, will adapt solution ESG changing reporting the significant a to them consolidation, Group with flexible support a requirements. regulatory only disclosure JCDecaux Similar also such quarter, not needs the and OneStream's tool in legacy and implementation but win region. a the our management last

on last which to is way. unlike I Having leading inputs their implemented their accurate a less SML a a improve has finance by that half while the stakeholders revenue an XX-day sensible of hour, Fortune companies, they With utilizing process a other different than and SML, forecasting from explanations over all more more XX inventory, required XXX now forecast customer the their in manufacturer, meaningful roughly forecast. Not to equipment is One highlight want ML accuracy in company and than process forecast our generates period. both impact providing indicators XX%.

in AI their is is we've transparency drive that message more drive than is multiple our best The we point Applied customer company my Finance market done. scalable view adoption growing acceptance most custom of the of I business many creates AI. Part is to productization from our This has these one in results, SML of by the speed continue to applied building vantage solution as will now time across product of decision-making at strategy teams. and also call currently and driving approach value be deploying as market build that enhance confidence way to from recognition reinforces value across the by science what here our and business from educating the experience segments, kind the a market. [indiscernible] always our This Encouraged the performance. the bigger

XXXX our dialogue of This with benefit office strategic a the on role we importance out emphasis Finance on to initiative. academia, and business month, the of is investment fact-based this partnership announced to we Earlier finance launch foster leaders CFO. economists, our marketing evolving and rapidly the the Finally, function. continue a building in from and our of

hold Our initial future. businesses played the large both research how XX by external critical next the shaping elevating and forces at that what are role for impacting years in examines and CFOs

by defined business CFOs, the of regulatory premium broader will that role know technology-powered The driving all well survey a what community will growth. be X,XXX expected CFO a decisions. strategic the a investors, line convergence found decade of in and also on that take CEOs, business where the investment making Based next confidence studies be investment on of a and more research gains, executives of the CFO their company's to likely put and strategy on CFO in reaffirmed you too a

also strategic AI become a technologies, of the study and business finance view with on urgency The will these grow. especially the and sense take office a what for competitive. new to investments likely legacy to [indiscernible] prioritized and modernizing strategy validated driver CEOs of their survey remain of CFOs making our stack, CFO

finance with using foundation CFOs, research as discussions roundtable this leaders. global for series other a are We CEOs and a of

look business the to community conversation. put in senior forward as steps among XXXX We dialogue OneStream's to of take finance the our at additional we forefront the visibility raising executives, platform fostering

to employees hard the ideas, innovative turn for to success. I call dedication their Before customer work Bill, our let just thank over and me

incredible our sharing Our OneStream. that partners customers their achieve helping for results confidence our investors for commitment and in and

me over let turn the Now Bill. to call

today's thank and joining call. everyone, afternoon, Good Tom. Thanks, for you

our generated past cash flow Tom cash we and quarters, subscription free And free solid both in have with both million to a mentioned, positive ability over QX flow. had positive We cash $XX over flow. growth environment. and we with As X turned pleased revenue drive free the cash growth We're in flow strong free this XXXX. in

total grew in million year-over-year Overall, revenue QX. XX% $XXX to

at revenue million increased $XX Our to subscription year-over-year. more License came than to with in model compared million $XX in and subscription revenue million year-over-year growth as year. business show QX continued impressive XX% ARR last XX% $XXX scale at increased

quarter, this continued ones see conversions to also a including SaaS term than of greater number from We $XXX,XXX. to with significant X licenses ARR

progress expect trend continue QX We and to SaaS as XXX% business that in XXXX towards we model. a

OneStream lower million $X.X our of compared more strategically and transition revenue at services expected to revenue than Professional them. Professional was in services as of with other $X.X implementations continued success last due came year. software the million we partners to

revenue going a forward. professional should you run services expect such, similar As rate

focus revenue than global Billings came $XXX total International our represent new continues QX. year-over-year. total on reflecting a XX% ended year-over-year of growing our XX% XX% revenue, with business of X,XXX customers continued customers, quarter roughly We million. our XX% to from to increased in More record business. the up

variety look XX-month billings to basis, encourage at of grew a factors, a timing, you As due we trailing to a where reminder, on billings XX%. including

XX-month was to grew year-over-year. up Our $XXX obligations XX% CRPO year-over-year million. remaining performance Total XX%

margin improvements. compared revenue the to due XX% last was XX% Our by QX efficiency strong to non-GAAP offset license gross year,

long optimize and to continue term. our work to We over improvement margin the infrastructure expect

increased $XXX invest charge timing year-over-year expense the as connection part was spending was increased operating non-GAAP was This strategically million durable growth a due modifications we we the third outstanding quarter lower year-over-year and the to in to for recognized our of expenses drive that business. to charge our continue R&D of made Total quarter new equity-based of due with in Third which $XXX IPO. million, the IPO. to expenses. we as compensation than to part products XX% effective options XX% onetime expected in IPO-related

operating Non-GAAP $XX.X income million. net $X operating or margin Non-GAAP in million the was was X% quarter. income

million cash For quarter, trailing with million. and flow, the we of XX over equivalents. cash ended flow free We million months cash free to $X bringing third our the $XXX $XX quarter generated in cash

Now guidance. turning to

us traditionally largest is our for one quarter. important as an is bookings seasonal quarter fourth Our

guidance is QX as XXXX Our follows. for

to to expected compensation per approximately to Non-GAAP operating be income to Stock-based be to Total million be between revenue expected is margin $X.XX. to share will positive be QX $XXX million million. $XXX is Non-GAAP for to million. expected $X.XX $XX breakeven net is $XX X%.

revenue to $XXX XXXX our and also revenue million. both Total to year full profitability. We are raising expected guidance for is for $XXX million be

Stock-based to SaaS of guidance consensus implementations to transition be leaves the to XXXX. negative majority operating aren't Non-GAAP between we while strategy of the to partners, providing this X%. $X.XX. to is Non-GAAP will approximately expected net with accelerated be Wall with to compensation share rates Street for XXXX million. finally, be expected margin per quarter, us our conversion together income year current combination comfortable negative million $XXX to X% is $XXX And $X.XX our full

Tom. to back it turn let's Now

expand brand. the the Thanks, platform increasing are the Bill. from importance the marketing map are will road we making today are to to for every The hear me view product the message and efforts to of our our growth it we our quarter years foundation grow brand in come. long-term investments the global is in laying you taking our Be our building OneStream or business and advancing pipeline,

[Operator from Instructions] comes with Quintero Stanley. Our first question Morgan Chris

of replacement cycle. a the on over seems lot work I coming migration and about like years. in your the acceleration on there's done opportunity ask EOP Congrats as solid quarter super to an upcoming go topic wanted be to it you going We've through this here. this

that to type hear can out? having your of relates to do what or multiple think will proposition standardize it world, then potentially in Will one curious of ERP think ERP will kind it world single they resonate be So still as value on companies still you you a scenario? and one play it thoughts ERPs

Thanks, Chris.

really, the use of looks about or proposition really offering to that that layer that we comfortable and like X or customers. in No matter this what So have a business. because ERP they super flexible they to their we manage we're value think cycle lot, if kind we're are the X

in world, in what's on the of you ERP the about happening business if the what's really talking recording think you're oriented around So business. is the a that physical of about going view

you And manage to us, we're how your or that for so critical business. allows that layer you model run

you the you're that need -- not that if multiple ERPs, So only the if ERP, applies single flexibility a flexibility. need but you're you standardization, or

comfortable ERP from investment. amplify customers the So help value we're really they we get their that

with Our next JPMorgan. Mark question comes from Murphy

Congrats.

of I'm maybe at So you're a experience. that's because it's future to proof is different And if Office the way. ML with do little is and you wondering sensible or some they talking some making adeptly capabilities Tom, moment. and peers quite the of having very tough business a finding migration you they that to the your point platform they a have sensing viewing in these dislodge cloud that into as where they tipping common a as or SAP knowledge of more difference. hear Finance so we feels not the of architecture are should get just be the OneStream It everyone like is performing are from Oracle OneStream

you're do of why having success? think you Just kind better that

are possible. Thanks, as Mark. an thinking great companies be That's opportunity to Really for as we question. about this a as offering transformative

with when additional OneStream, like requirements legacy-based you the revolution. point the is got a The your play, different surrounded larger able years. core of help with happens that a company platform lot financial to be a in solutions lot bring OneStream that become efficient to that So so case this of which they you message you think about to delivering a is if over that's maybe we solutions having you're at in that AI can participate can that financial very solutions customer the

I become You in can and participate with think more really in that's market and the more customers general. optimal. resonating having And finance with

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

cloud Hyperion offering. it what maybe Hyperion like digging this And hearing on year against past the on deeper, wanted year. than little a been get Hyperion's maybe question we've and today totally ask one And more here the that over ago, a versus specifically I on-prem, to the competitive has fuels I from specifically environment. how gotten I versus competitive one asked better partner because cloud cloud? but about advantage bit

replacement me XX makes over like the to to next just it begin XX could So what that Hyperion look wonder cycle months.

So is continue. differentiation kind of about giving confidence OneStream of there could you pace takeaways your will you the cloud versus EPM that's anything share this Hyperion strong

Sure.

that those So and But rates. keep competitive one that in trying the as win always and the we advantage. react really of feel easy replicate. to we we're approaches. first sure like And us from is That's leaning even really look is that those happens fact consistency a not sort something something very makes there, to that line this, competition and are better, seeing code. hard. the of keep on that's platform, And we're siloed a certainly, at we we we're lot that of cloud make with see to of the single And our companies it's you that

So even starting improve ground their our as or by methodology functionality product. particular fortified We other to approach. adapt this still companies platform-based have and are that's high

continuously to as that we're lead And sure make innovating endeavoring well. so and and -- being functional that we're

-- So on we're sure at a very, we us all that not brushing pace making always all, again, innovating -- focused competitors in so what very we're ahead. and doing and at are we all our take broad that keeps

Our Steve comes next from with Citi. question Enders

looking Wondering base going principle conversations that and some want what deep the in on you're the pipeline Okay. of customer seeing. opportunity how like and or widespread are ask if how I current the uptake today? is new to maybe across AI the the

that. share Happy to Sure.

current the that thrilled successes to we're having really So those but at share at that also build we're successes our momentum we SML, only customers conferences. those with our from of ability were not sort showcase user have the getting,

place, important education and forefront customers statements, ourselves the an large there's more to interest. we're are, I to AI So they at but my alluded in importantly, of see and much of to that And how more and we our just technologies -- these process needs more educating advantage see how take offer. as very a can starting

along about really have achieve them different, sort customers that you that such about that's something education of move touchless spectrum. So try to process helping when and a if market, you you in as again, forecast, think help to making a think a invest build

We're so educate we're continue prove we that it's really and to customers. innings, early opportunity. in comfortable the an And help and our ourselves outsized

John Our next from DiFucci question comes Guggenheim with Securities.

My to sort Koji's the it's -- and and you questions, question platform a about. Tom, follow-up is one that Chris of and talked topic for Tom,

some looked a in associate growth speak we the and we've now is the in of have and for understood market think too, field, more you're consolidation we of like, and and -- of close, lot lot with you that seeing that getting seeing momentum for the in we people I including legacy independent I to and we're they're the with that traction first of at people far investors more But planning are. right you. conversations a that the mean, as yes, the replacement financial as operational sort benefit

like we're and close company core set how the company. surprised And you planning one the a principles future, today? for in one the even financial That's in your that major that financial consolidation sort how have of your seen You've actually of of market? was independent you success it planning actually you're buy is just And a closed competitors a talk -- traditionally that leg up given at for close up planning getting. it's a traction -- about looks can much little more like but too, seeing maybe

you great. maybe talk If would can about be that that,

talk make It's to globally every out could solve one John. is excited already and great Finance. to that actually because finance that's set And a about complicated. has to Corporate dear own business alluded that sure question. I'm -- really my and we core that Thanks, this it's you something complexity as near Sure. the And evolving we in help, at is to, problems or time

to you're and Officer, But what core, out Financial the core, the efficient do to all things you Accounting CFO, get business planning, the can I'm more because can correctly. and them and and calls go Head we more to they they I do financial be with consolidation help we be they start the help account which be the once every when that about that's of drive business. have do also how at sales the we they the customers, Planning, say talk you're you Chief them strategic to speaking strategic really at to has reconciliation, and is you things do, We know And plans optimization how why this to want operational need definition of to objectives leverage on and help created but on able like customers, new the and call the lend to what's so hearing I OneStream when become have can then idea the happening a made value the is the investment make that link the and and analytics financial them future business and much they've you core, getting and the in that can them more being become I partner really real and the metrics these outsized and actually and what manage feel sure and take forward. supplement information you're there's to to this company your interest that's and that why drive drive capability, operationally CPM is efficient your and ultimately opportunity why holistically

with comes question Bracelin next from Our Sandler. Brent Piper

momentum opportunity. Great to into Tom, the to I see the double-click government wanted here. build

penetration disclosed, you've think, XX% Fortune in think the XXX. I logo I

as your of kind think you can government the with solutions. about What does new here. What maybe mean for replacing talked the you agency you opportunity kind penetration opportunity leaning And -- legacy in penetration You about government? of size government that agency gas the scope whole a is the firm? large guys of best in

it's posture within a of defense proven Thank very sizable right actually and reaching product planning sector the you. business. business ourselves have the a agency you're that making point in security when versus in of right an and with differences the and and the the public that you terms align opportunity, we're sure agencies thinking have we've across where way processes a right revenue-generating multiple Yes, in you multiple sectors we as with aligned --

these more of landing building by more early of as we've So but a it's and company types significant innings, marquee momentum been agencies.

that we're the of trying exactly, feel based so business focusing to quantify on. well we segment success very without having to our continuing feel And on continuing be a to it and important that positioned we'll our that commitment and grow we it's

Our with from next Wolfe Zukin Alex Research. question comes

seeing comment what being of on kind of businesses, interesting? the the to there past the start retention, just general, of and of customers comments, you're and maybe more bit power how quarter. get the Are now arguably the in previous you Maybe a any seeing making election the environment than that year? plans we just demand are companies into the little are end you as stand quarters changing that in what of verticals that in What transformational periods then out velocity about AI. kind trended net given linearity seeing you the of particularly And as any in Bill, kind in

Bill then I'll let there. respond start and

you election some consistent eye positive, looks a new team as right be and being of is life but CEO what some In We've this of demand a bit terms a hear most wondering think, every we're an seen than Obviously, not think little hopeful word. the the so hours sales that, on seeing than environment. personal my maybe it, I the everyone, past, and up for like demand sort being looking -- our transformational, just other very like. are old. transformational appetite XX would leading It's the environment. for interactions -- got in involvement and know management a of more people same. fresh and seeing to Definitely, am aspirational that and a going from were that just kind seeing to be of I quarter into cycles, say and it's CFOs more I consistent clears, relief point we [indiscernible] uncertainty at this of this now, we will I in

more exciting CFOs, and that So learning. especially forward-leaning very an see, machine trend more I see interested in that's we as

the a of from on the it's especially is get that of inferencing it. days early early opportunity to a they some way also generative AI as a information and but planning There of still that the there, perspective, -- types with very then can get the inflect top adopter see significant they this CFOs

that. about early we say still excited we're that. And So it's seeing are would days yes, trending. But I

I And second while not in half the couple and which quarterly same the of on of told least. trend it's to code a Alex, years comments XX% And past new get for to NRR the basis, roadshow. during you we're ZIP of my going mentioned upsell, question. bookings been the in were has your answer roughly that as an we kind at XX% the

Peterson James. with next from Raymond Our comes Brian question

hit some I of top color of successes to know any on wanted could that's from love on I'm or the I stepped up investments? there. you to curious some funnel the get year. your XSo pipeline, say those what early-stage this investments. marketing Would

take us launched sales our early just our have environment. kind I'd -- cycle. that think reasonably saw Finance gen brand of specific and It's I a of start still we did our campaign you Obviously, further. one. demand take that seen long say revitalize some you've seen the you've earlier investments. spring us I'll increasing we logo, gen days. demand We Yes. this around

time. early there kind also and days, its really of packaging, we're itself quarter people would again, hoped So certainly, in also commented again the it's pipeline over is is -- I on doing on we opportunity see I last days. significant that what we manifest say, will and our focusing still which but it think also some but pricing early some had that

question capital. with comes Mark Schappel from next Our Loop

was the us question if you relatively Express. have I just with the on out could how near-term you're wondering I pipeline about help for thinking opportunity product? new the around a CPM

Sure.

about that meet our the segment on sort of excited them to really journey. of and on and CDM their really really, ability focus at business where they're I'm So commercial Express

seeking if it call early So the Express or but offering are more is large more capabilities sure that we've process that And and we're really of working coming year we've away take the CPM them within for I'll focused become that is in by our -- you practices great that address that to still testing, been the market their fit to where and these it, segment. of product really enterprise in with position over several days, sort is, a share best or the encouraged more in I'm It's and very processes with what making match them. ramping that been to customers configuration financial companies on right even of mature we're that that, configuration will, from able we're product segment. again, becoming

this With customer. an it better It's same way the but onboarded the opportunity up can the lot in analytics that software biggest efficient use capability. companies platform world. choice and the do that in of that offering that as core of for a onto opens get them an being to

separate excited on-ramp really offering a base. It's journey, that. about not early code feel It's an I I'm Again, have off not So don't it's because that get it's that days product. you unique a it's the of. same but in really the to --

Our next question comes from Nick Scotiabank. Altmann with

OneStream, the sort do over of platform the that's to where fit what of and EMEA. developers a for you the focus be term. talked you I durable kind into about the core And will help And shape you conference? the week. just here? just durability Splash the medium outline conference picture, wanted into profile guys of the developers about the to ask alluded Tom, picture? growth and the Awesome. then focus how developers a more Can overall next growth Where kind of developer do fit Wave

one technology. This never get of my favorite things Sure. to talk to ask. is about I

that the is that extensible. infinitely product, there's built the idea we what's it's So that again, a at platform foundation look environment really the to whole development in and we unique meaning

a never We OneStream. software of to can needs. out with customer their going adapt to So run is

of would the has that person in So problems make sort partner to all of more to the domain kind of one a citizen looking at our companies sort solve come more knowledge use that's developer what exchange an sure stream to expanding for of that make producing really flavors, for place. to consider company-specific lot something partner, of can X a as in and a example, their wants our application we they developers partner that that flex cases

has then that maybe integrated sort company somebody developer on but OneStream. of have the user. more of to individual, to And that the somebody power going an replatform than not systems kind software computer looking ISV, scientists full vendor, on average of of created finally, -- So that's just you more a a is

for make define development their creators or those our underlying our a get is of a to out leveraging the do platform, most at technologies to we of of trying really OneStream problem can like they help and get or journey they're call Wave, conference seeking integrated the of we're as up all technical what and maybe stream types for So start for a addressed customer one set platform. the different company solve engines head that on them understand that by within them the a how

this OneStream, those that for intellectual Solution can you an within So ultimately, understand about surface of produces really can we real the reproducible business talk such growth, that bring to Exchange platform value if and development we for people ultimately that and durable capability those value our the the problems, into because property. us better closer turn our for advantage gives that contributor products better and customer that

next with Berg comes Needham Scott from Company. Our & question

are Tom, coverage XX%, for that an us our the covered universe of space. your in revenues SaaS growing which outlier most nearly is

in profitability term? think Can some draw short actually is at faster? You business demand to level grow more the healthy the quarter. could the spend investments? you to manage more in the you right Do the environment Or bear this really

going I'm bit. a to question. questions the into last Great X that tie little

thinking and and to looking helping our responding really been and our of we've more then We've about spend of interest problems, can as OneStream packaging put going customers' and set finance deeper more it. pricing then in and at it. been operations. this and diverse that behind and helping So the solve the them them and the challenges marketing shifting operational integration we solve product

have to longer-term make product trying that growth. looking into sure that, and invest evolution you the XXXX, sort at we us expect of to of can journey, So as I the expanded this more greater starting that been XXXX really are fueling

And time, also on focus same R&D. continuing at the to

us You AI continue we're to in can on innovations that our as heavily platform. well the core journey delivering invest expect the as to

analytics. wanted of we're And and and there an I positioned framework just an really this those on more is you that financial with together, I've have make pieces that put that mentioned AI I side it's that to think business. opportunity the think of we call, last sure feel the for the and the efficient invest this expanded us investment. well the in operational to We really analytics view way we I vision altogether, core company as and So

Our Cowen. next question comes TD from Derrick Wood with

seen driven for billings Bill, really renewals heading outsized in I growth comp. you of had considering was have performance out call directional the we've tough strongest billings an any quarter? sequential us bookings billings impressive this And anything for QX. a it -- that terms would so And growth in to was think the would into factors of strength around timing or you this flag

or would a that say Yes. in actually We extraneous was there. our is I billings there we bit super -- I happy and expected. was did was would there say would change no with were than did we What had and duration. was collect no bit We I just There nothing little bill collect What little performance. faster. better say, a

some want on at the sometimes that flow end past. say, effective we'll that free next it saw have And in quarter, the also you've But quarters but "Hey, of they'll think seen until outperformance we quarter. quarter, will the probably deals cash we we'll You I don't the that become in to demonstrated. sign

had desire really for to This customers away. quarter, a strong start our we right

And in a outperformance bit for of drove sure. so that QX,

with for calling happy So anyway, out. and thanks we're it it,

question Terry with next Tillman from Truist Our comes Securities.

single actually the be but might it Yes. congratulations. I'll echo It's question, a X parts.

that. Sorry about

in now got with all to growing faster how I this side, public, your partner want than the growth competitors, you're our your you've I really on and notoriety. scale mean, First know partners What making the they're the And of related are to question investments you, are and Bill. up? what responding. then for prior new doors they're kind is the second opening part

cash collections free quarter of free you it the still the terms strong, flow? sounded were see for In but flow, being strongest cash XQ do seasonally like

Thanks, Terry.

have grow long-term and support community, and about we the investing as in on to to that really important an relationships So referral our creates invest overall, is as of in tend mechanism customers, well ways and so scale enables It thinking buyers how it something also continuing to grow continue different partners very partners these to us. investing that a are that community our are constantly the really trusted because long-term part success for with to it. them.

creating increase seeing over platform. that's not by only we're general, of our our the We a the the partners, partner delivery evidenced projects on the XXX our in across on taken investment also direct have in In products investing. the as but interest by which exchange, board, being in partner place community now in partners is the section property intellectual in many

have community the opportunity long-term lot general. So closely can the in when we GSIs I us also to in about to it. work we for continue take all those to pieces, more more feel and and like good continuing and that with terms more for up do I a of feel more I opening

flow, seasonal in biggest just generally quarter. terms be our QX is will highest And of QX our cash bookings free quarter. Obviously,

free in while nice that year had QX, flow -- cash so last realize I a quarter. And we

expect be forward, I this we cash do think free going positive flow to and quarter.

the forward, seasonal should Going flow you highest cash QX expect quarter. be to generally

question comes Rob next Oliver Our Baird. with from

offer, You can you commentary given awareness of guys there's quarter. in be this. beginning platform, there. be when other are the called what it guess, opportunity upsell conversions just for SaaS you're talk sensible guys conversions a or sort curious painful about and ML in And can the the prepared more companies seeing CFO when and a the discussions, obviously Tom, large sometimes to about it's out whether a those few more the move I'd what about doing OneStream to growing to when Exchange consider the I But these happen. opportunities they of your broadly do, these remarks strategic at Solutions in the be cross-sell nature talk

ways, Yes, customers. are once newer that's in some lot opportunity innovations driving even our those a great always and of a offerings of

a only position is platform learning AI you us. machine For are if with sensible available the example, SaaS-based in

that so a drove significant actually And quarter. of those this few conversions a in

the part a transition. someone definitely doing And so is interested is conversation in is that of when SaaS

OneStream a to the customer Power of quarter. went and And BI added our learning, at significant BI On it machine SaaS actually top as though, on on of Power top just conversion. converted another sensible example, of this of connector first they ahead point

cases can that as compute So department value add new having we platform -- more we And necessarily really conversations does to because this as to you're with into you having we're IT longer change get when offer value, equation. take talking expect, -- not to we or the seek and no resources. we our as an conversation use to because our have entire seeing, the in we're more control customers. SaaS to would opportunity to new they're and the seek look as about we it

overall it's opportunity So an seek that maximize. we to

Jester comes BMO Our Daniel next with from Markets. question Capital

in earlier about conversation wanted circle planning to I the one to back opportunity.

using today, organization of tools. having the it some base have are you're customer percentage capital think you people If prevalent your different that might planning, about those customers is of There that how maybe planning. planning, sales both be

how harness being customer. And sell opportunity? to the multiple the often really solutions going full of inside you you're wondering I'm to so a planning are forward, able silos how thinking in planning about And some to unlocking the

Sure.

usually opportunity when a sort we within of or capability their maturity a an a customer, thinking. model we think company about that is within think about planning, CFO So a there has

really hear And use sell core. so you'll -- this me we word

being core that company things level, then the those, other planning jump and go some some of don't the you to operational the must-have. side. both they consolidation right next just a so They and And proficient the financial When of the becomes financial mentioned. at to

salary planning around more granular So wages. thinking such or about the hourly items as line you'll start

and planning what will cash, Then through. process. out customer you an So in a into goes that's sophistication when you'll that's that is go they planning more or evolution that more depth as your But happen solution capital engage people layers and mentioned. another might

of talk when value the greater capability. that we the for that we've about a lot our having replacing to So and journey achieve able that's deliver for way helping solutions always them and -- been define multiple and really customer customers, it's

then your get underlying about wages, talking And you into into with is salaries, trends is operational journey. that's are the you do were AI and your we start even your getting capital, predicting we when then the operational beyond that that. What cash those when your trends what monitoring ultimate

they on excited opportunity once why so committed to rationalize strategic our and many we been the able when that we at about them help sharing that for journey the growth that's can help a very customers feel become we it, that journey organization, know we with can business. and to we we've a take we're can can look strong customers because lot, how the So we them that of their us, to why better have them and ultimately customer that really started, a value retention we a even achieve that detailed have have that we're finance a have really and we feel, again, We proposition have value. -- the and very demonstrating

can that So all journey we our the customers something planning continue I think as that opportunity develop defining you've platform. for in described, is to through really the all, that, the we're with

showing back I'm like further now to to time. turn it for no this management I at questions would remarks. closing

very soon. all much. you look and Thank us, seeing forward you for joining we to Thank you

This call. Thank for participating. concludes today's conference you

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