OneStream's Triumphant IPO: A Transformative Milestone for the Financial Software Powerhouse

In a landmark move, financial software vendor OneStream has successfully transitioned into a publicly traded company, making its debut on the Nasdaq stock exchange. This IPO marks a significant milestone in the company's remarkable journey, which has seen it evolve from a startup formed around 2010 to a leading provider of comprehensive financial management solutions for enterprises worldwide.

Unlocking the Future: OneStream's Transformative IPO Paves the Way for Continued Growth and Innovation

Diversifying the Financial Management Landscape

OneStream's offerings extend far beyond the traditional boundaries of Corporate Performance Management (CPM) or Enterprise Performance Management (EPM) solutions. The company has developed a robust suite of applications that cater to the diverse needs of finance professionals, ranging from ESG reporting and financial consolidation to planning, budgeting, and lease accounting. This breadth of capabilities positions OneStream as a versatile and indispensable partner for organizations seeking to streamline their financial operations and gain a competitive edge.

Pioneering AI-Powered Financial Insights

OneStream's commitment to innovation is exemplified by its ongoing work in the realm of artificial intelligence and machine learning. The company has been at the forefront of developing AI-powered applications that empower finance teams to make more informed decisions. The Polaris case study, where OneStream collaborated with the outdoor vehicle manufacturer to enhance demand forecasting, showcases the company's ability to demystify the complexities of machine learning and deliver tangible business benefits.

Exponential Growth and Expanding Reach

The numbers speak for themselves – OneStream has experienced remarkable growth in recent years, expanding its customer base from around 300 in May 2019 to over 1,400 today. This impressive 20% year-over-year growth is further bolstered by the company's surpassing of the 0 million Annual Recurring Revenue (ARR) milestone in 2023, up from 0 million in 2022 and 0 million in 2021. The IPO's success is a testament to OneStream's ability to consistently deliver value to its growing customer base, solidifying its position as a trusted partner in the financial software landscape.

Strengthening Partnerships and Ecosystem

OneStream's IPO has also catalyzed the expansion of its partner ecosystem, with leading professional services firms such as KPMG, BDO, PwC, and The Hackett Group joining forces to create a diverse array of product extensions, integrations, and solutions. This collaborative approach not only enhances the capabilities of the OneStream platform but also ensures that customers have access to a comprehensive suite of services and support to address their unique financial management needs.

Navigating the IPO Landscape

The IPO process itself has been a strategic and well-executed endeavor for OneStream. The company's decision to use a portion of the net proceeds to purchase newly issued common units, while also facilitating a synthetic secondary transaction to allow existing shareholders to monetize their holdings, demonstrates a thoughtful approach to managing the transition to public ownership. The involvement of renowned investment firms like Morgan Stanley, J.P. Morgan, and KKR further underscores the market's confidence in OneStream's growth potential.

Maintaining Continuity and Control

Despite the significant liquidity event, OneStream's leadership and operational structure are expected to remain largely unchanged in the near term. The continued involvement of KKR, the company's largest shareholder, and the strategic alignment of the management team suggest a smooth transition, ensuring that customers can expect a seamless continuation of the high-quality services and innovative solutions they have come to rely on.

Capitalizing on Favorable Market Conditions

The timing of OneStream's IPO appears to be well-aligned with the current state of the stock market, which is at record highs. While the company's valuation may be slightly lower than its previous capital raise, this is a common occurrence in the volatile world of venture capital valuations. Nonetheless, the IPO represents a significant milestone for OneStream, with the potential for continued growth and success in the years to come.

Rewarding Key Stakeholders

The IPO has undoubtedly created substantial value for several key stakeholders, including KKR, OneStream's founder Tom Shea, and employees with stock options. The private equity firm's investment in the company has paid off handsomely, with the valuation of OneStream quadrupling in the five years since its initial involvement. This success story underscores the potential for well-executed strategic partnerships to drive remarkable growth and value creation.