- OneStream Software, known for corporate finance applications, files for an IPO on Nasdaq.
- Plans to offer 24.5 million shares priced between $17 to $19 each.
- Company aims to raise up to $465.5 million, valuing it at $4.4 billion.
- Birmingham-based firm specializes in cloud platforms for finance teams, enhancing accounting efficiency and offering robust analytics.
- Highlights include data consolidation capabilities promising an 80% reduction in management costs.
- Over 1,400 clients including UPS Inc. and Toyota Motor Corp., generating $375 million revenue last year.
- Significant progress towards profitability, narrowing losses from $65.5 million to $28.9 million.
- Emphasizes AI integration, with recent acquisition of DataSense for $7.7 million.
- Plans to expand international business and partner ecosystem for future growth.
Main AI News:
OneStream Software LLC, a company specializing in corporate finance applications, has officially filed for an initial public offering (IPO) on the Nasdaq stock exchange. The IPO is set to offer 24.5 million shares at a price range of $17 to $19 per share. OneStream intends to sell 18.1 million shares, while the remaining shares will come from existing shareholders. If the IPO achieves the higher end of its price range, it is projected to raise approximately $465.5 million, valuing the company at around $4.4 billion.
Headquartered in Birmingham, Michigan, OneStream is renowned for its cloud platform tailored for corporate finance teams. The platform is designed to streamline essential accounting processes, such as reconciliation, and offers robust analytics capabilities to forecast the impact of business decisions on financial outcomes. A key selling point of OneStream’s platform is its ability to consolidate data from various sources, including spreadsheets and CRM platforms, into a unified repository, thereby simplifying data management and potentially reducing costs by up to 80%.
Beyond its core features, OneStream has expanded its capabilities with over 90 applications developed internally or in partnership with others. These applications extend the platform’s functionality to accelerate tasks like financial data entry, further enhancing its appeal to corporate clients.
With a substantial client base exceeding 1,400 companies, including major enterprises like UPS Inc. and Toyota Motor Corp., OneStream reported revenue of $375 million last year, up from $279 million in 2022. The company also made significant strides towards profitability, narrowing its annual loss from $65.5 million in 2022 to $28.9 million in the most recent fiscal year.
In its IPO filing, OneStream emphasized its commitment to future growth through substantial investments in research and development, particularly in artificial intelligence (AI) technologies. The acquisition of DataSense for $7.7 million underscores its strategy to enhance AI capabilities within its platform, building on existing features such as Sensible ML, which aids finance teams in predicting future events like changes in customer demand.
Looking ahead, OneStream sees substantial opportunities in expanding its international footprint, as only 30% of its revenue came from outside the United States in 2023. By broadening its partner ecosystem, the company aims to create new avenues for revenue growth and further consolidate its market position.
Despite the IPO valuing OneStream at up to $4.4 billion, a decrease from its $6 billion valuation in its previous funding round three years ago, the offering marks a significant milestone for the company and its majority shareholder, KKR. KKR, which acquired its stake in OneStream at a $1 billion valuation in 2019, stands to make a notable exit through this public offering.
The IPO is being led by prominent financial institutions including Morgan Stanley, JPMorgan Chase & Co., and KKR’s capital markets unit, with T. Rowe Price Investment Management Inc. already indicating interest in purchasing up to 15% of the shares offered. Following the IPO, shares of OneStream will trade under the ticker symbol “OS” on the Nasdaq stock exchange, signaling a new phase of growth and opportunity for the company in the global marketplace.
Conclusion:
OneStream Software’s decision to go public with a Nasdaq IPO at a valuation of $4.4 billion reflects strong investor confidence in its innovative cloud-based solutions for corporate finance. With a robust client base and a strategic focus on AI development, the company aims to capitalize on global expansion opportunities and strengthen its position in the competitive market of financial software solutions.
