OneStream Software LLC, a well-respected provider of financial software solutions, has submitted its application for an initial public offering (IPO) to be listed on the prestigious Nasdaq stock exchange. The company intends to make 24.5 million shares available to potential investors at a price range of $17 to $19 per share. This offering will consist of 18.1 million shares from OneStream and the remainder from its existing shareholders. If the IPO achieves the higher end of the target, it is projected to raise $465.5 million, valuing the company at an impressive $4.4 billion.
Based in Birmingham, Michigan, OneStream specializes in offering a cutting-edge cloud platform designed to streamline the day-to-day operations of corporate finance departments. Its software boasts a wide array of functionalities that expedite routine accounting tasks, including the critical process of reconciliation to ensure the accuracy of ledger entries. Additionally, the platform offers advanced analytics features that empower finance teams to forecast the potential impact of future business decisions on the bottom line.
A notable feature of OneStream’s platform is its ability to simplify the management of companies’ financial data. By consolidating accounting data from various sources such as spreadsheets and CRM platforms into a centralized repository, the company claims to deliver up to 80% reduction in data management costs. Furthermore, OneStream has developed over 90 applications that build upon its core features, catering to diverse use cases such as expediting financial data entry.
With an impressive clientele that includes corporate giants such as UPS Inc. and Toyota Motor Corp., OneStream generated $375 million in revenue in 2023, marking a significant increase from $279 million in the previous year. Moreover, the company has made notable progress towards profitability, successfully narrowing its annual loss from $65.5 million in 2022 to $28.9 million in 2023.
In its IPO filing, OneStream disclosed its commitment to make substantial investments in research and development, particularly focusing on artificial intelligence (AI). The company recently acquired DataSense for $7.7 million to bolster its AI capabilities and has introduced features such as Sensible ML, an AI tool that helps finance teams anticipate future events like shifts in customer demand.
Presenting compelling reasons for potential investors to consider purchasing its shares, OneStream has highlighted considerable growth opportunities in its international business, with only 30% of its revenue stemming from outside the U.S. in 2023. Moreover, the company believes that expanding its partner ecosystem will further augment its revenue.
Despite a lower valuation compared to its previous funding round three years ago, the forthcoming IPO is expected to be a significant milestone for OneStream. Leading the offering are prominent entities such as Morgan Stanley, JPMorgan Chase & Co., and KKR’s capital markets unit, with T. Rowe Price Investment Management Inc. expressing keen interest in acquiring up to 15% of the shares offered. Following the public offering, OneStream shares will be traded on the Nasdaq under the ticker symbol “OS.”
The announcement of the company’s IPO signifies a pivotal moment in its trajectory and reflects its ambitious plans for expansion and innovation. As it ventures into the next phase of its growth, OneStream is poised to further solidify its position as a leading provider of financial software solutions.