OneStream (OS) IPO Overview and Company Insights

OneStream Inc. (OS), a tech company incorporated in Delaware, is set to launch its initial public offering (IPO) on the Nasdaq Global Select Market under the symbol "OS". This article will provide a comprehensive overview of OneStream's IPO details, the company's operations, and relevant information for potential investors.

Company Overview

OneStream Inc. operates as a holding company with its primary business operations carried out through its subsidiary, OneStream Software LLC, based in Michigan. The company specializes in providing innovative corporate performance management (CPM) solutions designed to unify financial processes, drive data integrity, and streamline planning and reporting.

IPO Details

OneStream Inc. is offering 24,500,000 shares of its Class A common stock at an initial price range of $17.00 to $19.00 per share. This includes 18,054,333 shares offered by OneStream and 6,445,667 shares offered by selling stockholders. The company has applied to list its Class A common stock on the Nasdaq Global Select Market under the symbol "OS".

Key Figures:

Total Shares Offered: 24,500,000
Price per Share: $20 (from estimated range of $17.00 - $19.00)
Gross Proceeds: Up to $465,500,000
Underwriting Discounts: Details provided in the full prospectus
Net Proceeds to OneStream: To be used for purchasing LLC Units of OneStream Software LLC and other strategic purposes

Operations and Market Position

OneStream Software LLC, the operating arm of OneStream Inc., offers CPM solutions that cater to enterprises seeking to modernize their finance functions. The company's flagship product, OneStream XF, is an intelligent finance platform that aims to unify budgeting, planning, financial close and consolidation, reporting, and analytics.

Financial Overview

OneStream Inc. is classified as an "emerging growth company," which allows it to benefit from reduced public company reporting requirements. While this status offers flexibility, it also means that investors might receive less comprehensive disclosures compared to larger, more established firms.

Financial Performance:

Revenue: OneStream has demonstrated strong revenue growth over the past few years. The company generated $101.6 million in revenue for the fiscal year ended December 31, 2023, up from $75.4 million in 2022, reflecting a year-over-year growth of 34.7%.
Profitability: The company is currently not profitable, reporting a net loss of $27.8 million in 2023, compared to a net loss of $20.6 million in 2022. The losses are attributed to significant investments in research and development, sales, and marketing to fuel future growth.
Expenses: Key expense areas include:
Research and Development: $35.2 million in 2023, up from $27.1 million in 2022.
Sales and Marketing: $48.9 million in 2023, up from $35.7 million in 2022.
General and Administrative: $18.3 million in 2023, up from $15.4 million in 2022.
Cash Flow: OneStream maintains a solid cash flow from operations, supported by its growing customer base and recurring revenue model. The company reported $25.3 million in cash flow from operations in 2023, an increase from $19.2 million in 2022.
Balance Sheet: As of December 31, 2023, OneStream had $72.8 million in cash and cash equivalents, with total liabilities amounting to $42.7 million.

Risks and Considerations

Investing in OneStream's IPO involves several risks:

Market Competition: The technology and CPM sectors are highly competitive, with numerous established players and new entrants continually emerging.
Regulatory Risks: Operating as a publicly traded company brings regulatory scrutiny and compliance requirements that could impact operations.
Profitability: The company's ongoing investments in growth and development affect short-term profitability, posing a risk to investors seeking immediate returns.

OneStream Inc.'s IPO presents a promising opportunity for investors interested in the corporate performance management sector. However, potential investors must consider the competitive landscape, regulatory environment, and the company's current lack of profitability. Detailed due diligence and review of the full prospectus are essential for making an informed investment decision.

FAQs

What is the ticker symbol for OneStream's IPO?

OneStream will be listed on the Nasdaq Global Select Market under the symbol "OS".

How many shares are being offered in the IPO?

OneStream is offering 24,500,000 shares of Class A common stock at $17.00 to $19.00 per share.

What are the primary risks associated with investing in OneStream?

Key risks include market competition, regulatory compliance, and the company's current lack of profitability due to significant investments in growth.

What is the financial outlook for OneStream?

OneStream, classified as an "emerging growth company," offers substantial growth potential but involves higher risks due to ongoing investments in development and expansion, along with market uncertainties.

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