OneStream (OS) Q2 2024 earnings summary

Executive summary

• Q2 2024 total revenue rose 36% year-over-year to $118 million, with subscription revenue up 44% to $103 million and customer base reaching 1,482, up 19% year-over-year.

• 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 expansion into AI/ML, including the acquisition of DataSense LLC, are driving competitive differentiation and customer retention.

• International revenue accounted for 31% of total revenue, with significant momentum in EMEA and banking verticals.

Financial highlights

• Q2 2024 total revenue: $117.5–$118 million, up 36% year-over-year; subscription revenue: $103–$103.1 million, up 44% and representing 88% of total revenue.

• Gross margin improved to 69% from 67% in Q2 2023; software gross margin reached 76%.

• Non-GAAP operating loss was $8.7–$9 million, with non-GAAP operating margin improving to -7%.

• Net loss for Q2 2024 was $7.9 million, compared to $15.4 million in Q2 2023.

• Free cash flow for Q2 2024 was $8.1 million; cash and equivalents at quarter-end were $140.5–$141 million.

Outlook and guidance

• Q3 2024 revenue guidance: $123–$125 million; subscription revenue growth projected at over 35%.

• Q3 non-GAAP operating margin expected between -2% and 0%; non-GAAP net loss per share between -$0.01 and +$0.01.

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

• Anticipates being free cash flow positive for the full fiscal year.

• Expects a non-recurring stock-based compensation charge of $260 million in Q3 related to the IPO.