OneStream (OS) Q2 2024 earnings summary

Executive summary

• Q2 2024 total revenue grew 36% year-over-year to $118 million, with subscription revenue up 44% to $103 million and customer base expanding to 1,482 globally.

• Achieved positive free cash flow for the third consecutive quarter, with free cash flow margin at 7%.

• Completed IPO in July 2024, raising between $350 million and $409.6 million in net proceeds, with Class A shares trading on Nasdaq.

• Platform innovation and AI/ML capabilities, including Sensible ML and the DataSense LLC acquisition, are driving competitive differentiation.

• SaaS contracts now account for the majority of revenue, with over 90% of new customers on SaaS since 2023.

Financial highlights

• Total GAAP revenue for Q2 was $118 million, up 36% year-over-year; subscription revenue reached $103 million, up 44% and representing 88% of total revenue.

• Non-GAAP gross margin was 69%, with software gross margin at 76%.

• Non-GAAP operating loss was $8.7 million to $9 million, improving from a $13 million loss last year; non-GAAP operating margin improved to -7%.

• Free cash flow for Q2 2024 was $8.1 million, with $33.7 million provided by operating activities in H1 2024.

• Cash and equivalents at quarter-end were $140.5 million, increasing post-IPO.

Outlook and guidance

• Q3 2024 revenue guidance is $123–$125 million; non-GAAP operating margin expected between -2% and 0%.

• Full-year 2024 revenue guidance is $476–$480 million; non-GAAP operating margin between -5% and -1%.

• Expects to remain free cash flow positive for the full fiscal year.

• Management expects SaaS revenue to continue increasing as a share of total revenue.

• International expansion and investment in R&D, especially AI-enabled solutions, remain strategic priorities.