Q2 2024 OneStream Inc Earnings Call

Okay.

Speaker Change: Good afternoon, ladies and gentlemen, thank you for joining one stream second quarter 2044 earnings Conference call. As a reminder, this call is being recorded and will be available for replay from the Investor Relations section of our website. Following the call. After the Speakers' remarks, there will be a question and answer session.

Speaker Change: If you'd like to participate you'll need to press star one on your phone. If your question has been answered and you'd like to remove yourself from the queue simply press star one again.

Speaker Change: Ask that you please limit yourselves to one question each I will now pass the call over to Andy List Vice President. Please go ahead.

Andy List: Thank you operator, good afternoon, everyone welcome to <unk> second quarter 2024 earnings Conference call.

Speaker Change: Joining me on the call today.

Speaker Change: Our cofounder and CEO, Tom <unk> and our CFO.

Speaker Change: The press release announcing our second quarter results issued earlier today and posted on our Investor Relations website at Investor <unk> Dot com.

Speaker Change: Along with an earnings highlights presentation.

Speaker Change: Where we get started I'd like to let everyone know that we plan to participate in two conferences in the upcoming weeks.

Speaker Change: First a city 2024 Global TMT Conference in New York on September five and the second is the Goldman Sachs <unk> and Technology conference in San Francisco on September 11th.

Speaker Change: Just a reminder.

Speaker Change: Previously disclosed preliminary estimates for certain Q2 operating results, including revenue GAAP and non-GAAP operating loss and free cash flow and in our recent operating results section of our IPO registration statements filed with the SEC on July 15 2024.

Operator: Good afternoon, ladies and gentlemen.

Operator: Thank you for joining OneStream's second quarter-2044 earnings conference call. As a reminder, this call is being recorded and will be available for replay from the investor-relations section of the website following the call. After the speaker's remarks, there will be a question and answer session. If you'd like to participate, you'll need to press Star 1-1 on your phone. If your question has been answered and you'd like to remove yourself from the queue, simply press Star 1-1 again. We ask that you please limit yourselves to one question each.

Speaker Change: As a result, please note that historical and projected financials have already contemplated these results and their impact on future quarters.

Speaker Change: We are providing the complete an actual Q2 financial results.

Speaker Change: Now, let me remind everyone that some of the statements on today's call are forward looking including statements related to the guidance for the third quarter ending September 32024, and the year ending December 31 2024.

Speaker Change: Forward looking statements are subject to known and unknown risks and uncertainties assumptions and other factors.

Annie: I will now pass the call over to any less vice-president. Please go ahead. Thank you, operator. Good afternoon, everyone. Welcome to OneStream's second quarter-2024 earnings conference call. Joining me on the call today are our co-founder and CEO Tom Shea and our CFO, Bill Coved. The press release announcing our second quarter results issued earlier today is posted on our investor-relations website at investor.oneStream.com, along with an earnings highlights presentation. Before we get started, I'd like to let everyone know that we plan to participate in two conferences in the upcoming weeks.

Speaker Change: Some of these risks are described in greater detail in our prospectus dated July 23, 2024 filed with the SEC on July 24, 2024 and in other documents, we file with the SEC from time to time, including our quarterly report on Form 10-Q for the quarter ended June 32024.

Speaker Change: We undertake no obligation to update any forward looking statements, whether as a result of new information future events or otherwise except as required by law.

Annie: The first is City's 2020 Global TMT Conference in New York on September 5th, and the second is the Goldman Sachs, Communicopia, and Technology Conference in San Francisco on September 11th. Just a reminder that we previously disclosed preliminary estimates for certain Q2 operating results, including revenue, gap-and-non-gap operating loss, and free cash flow. Under the recent operating results section of our IPO registration statement filed with the SEC on July 15th, 2024. As a result, please note that historical and projected financials have already contemplated these results and their impact on future quarters.

Speaker Change: During our call today, we will also reference certain non-GAAP financial measures there are limitations to our non-GAAP financial measures and they may not be comparable to similarly titled measures of other companies.

Speaker Change: The non-GAAP measures referenced on todays call should not be considered in isolation from or substitute for their most directly comparable GAAP measures.

Speaker Change: Our management believes that our non-GAAP measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance.

Speaker Change: Reconciliations of our non-GAAP measures to the most directly comparable GAAP measures can be found in this afternoon's press release and the highest earnings highlights presentation posted on our Investor website.

Annie: Today, we are providing the complete and actual Q2 financial results. Now that we remind everyone that some of the statements on today's call are forward-looking, including statements related to the guidance for the third quarter, ending September 30th, 2024, and the year-ending December 31, 2024. Forward-looking statements are subject to known and unknown risks and uncertainties, assumptions and other factors. Some of these risks are described in greater detail in our perspective stated July 23rd, 2024, filed with the SEC on July 24th, 2024.

Tom: Now I'll turn the call over to Tom Tom.

Thank you Amy and welcome everyone and thank you for joining US this afternoon for our first earnings call as a public company.

Tom Tom: We are excited to review our strong second quarter performance with you.

Tom Tom: And for those of you new to our story I thought I'd spend some time sharing a bit about wondering how we got here. How we are modernizing the also the CFO and the opportunity ahead.

Speaker Change: So let's start with a few key highlights from the quarter.

Speaker Change: Q2, total revenue increased 36% year over year and subscription revenue grew 44% year over year, we were cash flow positive for a third consecutive quarter.

Annie: And in other documents, we file with the SEC from time to time, including our quarterly report on form 10Q for the quarter-ended June 30th, 2024. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except it's required by law. During our call today, we will also reference certain non-gap financial measures. There are limitations to our non-gap financial measures, and they may not be comparable to similarly titled measures of other companies.

Speaker Change: We hosted our largest ever last user conference in May where we introduced a record number of platform innovation.

Speaker Change: 20% increase in attendance.

Speaker Change: All of this against an improving they're still challenging macro environment.

Annie: The non-gap measures referenced on today's call should not be considered in isolation from or substitute for their most directly comparable gap measures. Our management believes that our non-gap measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance. Reconciliation of our non-gap measures to the most directly comparable gap measures can be found in the soft news press release, and the high-earning highlights presentation posted on our investor website.

Speaker Change: With this backdrop CFO understand they must invest to modernize their financial architecture and go beyond just reporting on past performance to become a strategic driver of the business.

Speaker Change: The one stream platforms ability to rationalize multiple point solutions and provide an exceptional level of insight is ideally positioned to meet this need we're fortunate to say that even in uncertain times and possibly because of them. Our customers are acknowledging the importance of investing in modernizing their finance.

Speaker Change: Departments, improving visibility and positioning themselves for the future.

Tom Shea: Now it's from the call over to Tom. Thank you, Annie.

Speaker Change: We remain convinced that our market opportunity is stronger than ever based on three important trends.

Tom Shea: Welcome, everyone, and thank you for joining us this afternoon for our first earnings call as a public company. We are excited to review our strong second quarter performance with you. And for those of you new to our story, I thought I'd spend some time sharing a bit about OneStream. How we got here, how we are modernizing the office of the CFO and the opportunity ahead. So let's start with a few key highlights from the quarter.

Speaker Change: While digital transformation and finance is underway, it's still in the early inning.

Speaker Change: <unk> finance departments have been slow to fully embrace and trust the cloud, leaving them to play catch up with their own digital transformation, while other operational areas, including sales and HR have been digitizing their environments for the last two decades, we believe that only a small percent of cloud transformation from legacy.

Tom Shea: Q2 total revenue increased 36% year over year and subscription revenue grew 44% year over year. We were cash well positive for our third consecutive quarter. And we hosted our largest average class user conference in May, where we introduced a record number of platform innovations and saw a 20% increase in attendance. We accomplished all this against an improving and still challenging macro environment. With this backdrop, CFOs understand they must invest to modernize their financial architecture and go beyond just reporting on past performance to become a strategic driver of the business.

Speaker Change: Finance applications have occurred thus far.

Speaker Change: Now that finance departments have begun to accept the cloud and we believe it is just a matter of time before more CFO ultimately recognize the need for a unified cloud based platform to provide a single view into financial and operational data across the enterprise.

Speaker Change: Second cfos are being task, but becoming more strategic and integrating finance with operations is imperative in this effort.

Speaker Change: Historically closing the books and reporting quarterly financials were the sole focus of the CFO.

Tom Shea: The OneStream platform's ability to rationalize multiple point solutions and provide an exceptional level of insight is ideally positioned to meet this need. We're fortunate to say that even in uncertain times and possibly because of them, our customers are acknowledging the importance of investing in modernizing their finance departments and proving visibility and positioning themselves for the future. We remain convinced that our market opportunity is stronger than ever based on three important trends.

Speaker Change: Today CFO are increasingly being asked to work more closely with the CEO and board to provide strategic insight and operational planning to help steer the business and drive execution. This requires CFO to have tools like dynamic reporting to meet the requirements of changing business and complement the static nature.

Speaker Change: Sure of a traditional ERP system or.

Speaker Change: Our platform provides operational agility and a unified view into financial and operational data across the enterprise, which is enabling CFO in their organizations to excel.

Tom Shea: First, while digital transformation and finances underway, it's still in the early innings. Finance departments have been slow to fully embrace and trust the cloud, leaving them to play catch up with their own digital transformation. While other operational areas, including sales, IT and HR have been digitizing their environments for the last two decades, we believe that only a small percent of cloud transformations from legacy finance applications have occurred thus far. Now that finance departments have begun to accept the cloud, and we believe it is just a matter of time before more CFOs ultimately recognize the need for a unified cloud based platform to provide a single view into financial and operational data across the enterprise.

Speaker Change: Third AI ml as an opportunity to increase the value of knowledge workers and business performance as.

Speaker Change: As customers become efficient at managing their core financial duties and are reliably able to provide accurate reporting to their board and management team.

Speaker Change: Ceos are wining, even more analysis, both financial and operational to help run their companies more efficiently.

Speaker Change: It's just the natural evolution together with ml AI is in increasing the value of knowledge workers, who require accurate real time data that once you're into platform can provide.

Speaker Change: Respond to these trends one stream develops the operating system for modern finance unifying a multitude of financial functions on our cloud based platform and providing an exceptional level of insight to our customers our platform addresses three primary growth areas.

Tom Shea: Second, CFOs are being tasked with becoming more strategic and integrating finance with operations is imperative in this effort. Historically, closing the books and reporting quarterly financials were the sole focus of the CFOs. Today's CFOs are increasingly being asked to work more closely with the CEO and board to provide strategic insights and operational planning to help steer the business and drive execution. This requires CFOs to have tools like dynamic reporting to meet the requirements of changing business and complement the static nature of a traditional ERP system.

Speaker Change: Core finance solutions or core CPM.

Speaker Change: Financial and operational planning and performance applications.

Speaker Change: Applied AI, driven forecasting and performance management.

Speaker Change: We began by addressing core finance solutions, leveraging our unique legacy and strength in financial closing consolidation and extending to planning and reporting ingesting data from almost any ERP system. Once a unified core finance solutions on a single modern platform, providing a single source of truth across the.

Tom Shea: Our platform provides operational agility and a unified view into financial and operational data across the enterprise, which is enabling CFOs and their organizations to excel. Third, AIML is an opportunity to increase the value of knowledge workers and business performance. As customers become efficient at managing their core financial duties and are reliably able to provide accurate reporting to their board and management teams, CEOs are wanting even more analysis, both financial and operational to help run their companies more efficient.

Speaker Change: Enterprise and unlike existing legacy system, our unique expense will dimensionality capability delivers financed the reporting standards and controls it needs with the flexibility for business units functions and locations to report and plan an additional level of detail without impacting corporate standards.

Speaker Change: We estimate that this legacy replacement alone represents a roughly $10 billion market opportunity with only a small percentage converted to the cloud thus far.

Tom Shea: It's just the natural evolution. Together with ML, AI is an increasing the value of knowledge workers who require accurate real-time data that OneStream's platform can provide. To respond to these trends, OneStream develops the operating system for modern finance, unifying a multitude of financial functions on our cloud-based platform and providing an exceptional level of insight to our customers. Our platform addresses three primary growth areas, core finance solutions or core CPM, financial and operational planning and performance applications, applied AI-driven forecasting and performance management.

Speaker Change: <unk> as a true software platform that enables partners and customers to write software our software to build industry or functional specific application on top of our platform and leverage our common data model in security.

Speaker Change: This opens the door to a continued expansion of new solutions available through our solutions exchange, leading to higher innovation velocity, expanding revenue streams, greater utility and faster time to value for customers.

Speaker Change: Second as customers become more reliant on one stream they began asking us to solve new more diverse problems outside our core.

As a result, we move beyond solely helping customers improve their core financial close reporting and planning to streamlining additional financial processes like account reconciliation and transaction matching and actually steering operations.

Tom Shea: We began by addressing core finance solutions, leveraging our unique legacy and strength and financial close and consolidation and extending to planning and reporting. Injusting data from almost any ERP system, OneStream unified core finance solutions on a single modern platform, providing a single source of truth across the enterprise and, unlike existing legacy systems, our unique essential dimensionality capability delivers finance the reporting standards and controls it needs with the flexibility for business units, functions and locations to report and plan at additional levels of detail without impacting corporate standards.

By extending past traditional CPM with expanded operational solutions like sales performance management workforce planning and ESG, we are now providing value far exceeding our original mandate and playing an important role in speeding and optimizing day to day business operations and planning across the enterprise.

Importantly, moving into operations firmly solidified our position as a single source of truth for our customers.

Tom Shea: We estimate that this legacy replacement alone represents a roughly $10 billion market opportunity with only a small percentage converted to the cloud thus far. OneStream is a true software platform that enables partners and customers to write software on our software to build industry or functional specific applications a top-up platform and leverage our common data model and security. This opens the door to a continued expansion of new solutions available through our solutions exchange, leading to higher innovation velocity, expanding revenue streams, greater utility and faster times of value for customers.

Speaker Change: Third.

Speaker Change: This extensibility also encompasses our approach to AI.

Speaker Change: We saw the transformational potential of AI held for the office of the CFO since our inception.

We began coding to bring AI and machine learning into our platform nearly a decade ago.

Speaker Change: With the intent of building packaged AI solutions to enhance key financial processes and decisions.

Speaker Change: Our first purpose built finance AI product with sensible machine learning, which was created for companies could leverage real time data and analysis to improve their demand forecasting without requiring significant data science resources.

Tom Shea: Second, as customers become more reliant on OneStream, they began asking us to solve new, more diverse problems outside our core. As a result, we move beyond solely helping customers improve their core financial flows, reporting and planning to streamlining additional financial processes, like account reconciliation and transaction matching and actually steering operations. By extending past traditional CPM with expanded operational solutions like sales performance management, workforce planning and ESG, we are now providing value far exceeding our original mandate and playing an important role in speeding and optimizing day-to-day business operations and planning across the enterprise.

Speaker Change: The repeatable transparent and measurable value of sensible ml is generating in many cases, a significant improvement in demand forecasting for customers.

Speaker Change: Which is a significant ROI for their investment.

Speaker Change: While still early days, our ml product has been proven in the market at multiple customers and become an important differentiator of our platform.

Speaker Change: We are leveraging the same customer trust and transparency generated by sensible amount and developing our AI roadmap, which you will hear more about as we continue to develop it.

Okay.

Speaker Change: We currently serve over 1500 customers and approximately 45 countries with over 30% of total revenue coming from outside the U S.

Tom Shea: Importantly, moving into operations firmly solidified our position as a single source of truth for our customers. Third, this extensibility also encompasses our approach to AI. We saw the transformational potential of AI held for the office of the CFL since our inception. We began coding to bring AI and machine learning into our platform nearly a decade ago. With the intent of building packaged AI solutions to enhance key financial processes and decision. Our first purpose-built science AI product was sensible machine learning, which was created so companies could leverage real-time data and analysis to improve their demand forecasting without requiring significant data science resources.

Our blue chip customer base represents virtually every major vertical.

Speaker Change: Now, let me turn to how our progress in our three growth areas core finance solutions or core CPM financial and operational planning and performance solutions and applied AI, driven forecasting and performance management is translating into tangible results with some of our latest customer wins in Q2.

Speaker Change: One of the largest manufacturers of medical devices signed a seven figure deal for our core CPM financial close consolidation reporting and analysis as well as our sensible ml.

Speaker Change: More and more we are hearing from customers that the platform vision, including sensible ml and eventually sensible Gen. AI is an increasingly important differentiator.

Tom Shea: The repeatable transparent and measurable value of sensible ML is generating, in many cases, a significant improvement in demand forecasting for customers, which is a significant ROI for their investment. While still early days, our ML product has been proven in the market at multiple customers and become an important differentiator of our platform. We are leveraging the same customer trust and transparency generated by sensible ML and developing our AI roadmap, which we will hear more about as we continue to develop it. We currently serve over 1,400 customers in approximately 45 countries with over 30% of total revenue coming from outside the US. Our Bluetooth customer base represents virtually every major vertical.

Speaker Change: This is the extensibility of our platform as we present customers with a full journey from core to advanced analytics that both attracts and retains customers reflected in our historically strong retention.

The depth of our platform also aligns with the ongoing trend to streamline the number of disparate systems utilized.

Speaker Change: In this case, we replaced six point solutions with our platform.

Speaker Change: On average we replaced two to six point solution with every new customer.

Speaker Change: This win is also an example of the power of our strategic relationship with Microsoft.

Speaker Change: Another new sensible ml and AI customer this quarter was a supplier of products and services to military and defense contractors worldwide.

Tom Shea: Now let me turn to how our progress in our three growth areas, core finance solutions or core CPM, financial and operational planning and performance solutions, and applied AI-driven forecasting and performance management is translating into tangible results with some of our latest customer wins in Q2. One of the largest manufacturers of medical devices find a seven-figure deal for our core CPM, financial close consolidation reporting and analysis, as well as our sensible ML.

Speaker Change: This customer also signed a seven figure deal encompassing our core CPM offerings, including financial consolidation management reporting and our sensible ml.

Speaker Change: Looking ahead, they plan to add financial planning and analysis in their second phase. This is a great example of how we began discussions with our customers.

Speaker Change: First through the core and then do more.

Speaker Change: Finally, I want to highlight a win we had this quarter with the second largest banking group in France Group BPC.

Speaker Change: One of the key reasons that one streams core CPM was chosen came from the bank stated objective to replace for consolidation systems with one modern and unified solution.

Tom Shea: More and more we are hearing from customers that the platform vision, including sensible ML and eventually sensible Gen AI, is an increasingly important differentiator. It's the extensibility of our platform, as we present customers with a full journey from core to advanced analytics that both attracts and retains customers reflected in our historically strong retention. The depth of our platform also aligns with the ongoing trend to streamline the number of disparate systems utilized.

Speaker Change: This foundational win as a beachhead in a pivotal region for us this.

Speaker Change: This seven figure deal is enabling over 1000 users with our technology to service 35 million customers around the globe.

Speaker Change: In our continuing effort to engage with a further enable our customers are splashed user conference in May once again attracted a record number of customers and prospects.

Tom Shea: In this case, we replace six point solutions with our platform. On average, we replace two to six point solutions with every new customer. This win is also an example of the power of our strategic relationship with Microsoft. Another new sensible ML and AI customer this quarter was a supplier of products and services to military and defense contractors worldwide. This customer also find a seven-figure deal encompassing our core CPM offerings, including financial consolidation, management reporting, and our sensible ML. Looking ahead, they plan to add financial planning and analysis in their second phase. This is a great example of how we begin discussions with our customers, first do the core, and then do more.

Speaker Change: As you know everything about our conference is focused on customers.

Speaker Change: Our goal from the very beginning was 100% customer satisfaction and today is no different every customer serves as a reference for one stream.

Speaker Change: As splash.

Speaker Change: We're more than 80 customers shared how they are utilizing the one stream platform to deliver not only performance, but also to start leveraging the platform to strategically steer their business to the future.

Speaker Change: We were particularly excited about the 12 product innovations that we shared at this year's event.

Speaker Change: Most we have ever delivered at one time, let me give you a couple of note.

Speaker Change: First our certified Microsoft Power Bi connector provides a no code seamless integration that allows finance leaders to quickly connect and consumed trusted financial and operational data from one stream within Microsoft power bi.

Tom Shea: Finally, I want to highlight a win we had this quarter with the second largest banking group in France, Group BPCE. One of the key reasons that one dream's core CPM was chosen came from the bank's stated objective to replace four consolidation systems with one modern and unified solution. This foundational win is a beach had in a pivotal region for us. This seven-figure deal is enabling over a thousand users with our technology to service 35 million customers around the globe.

Speaker Change: Second.

Speaker Change: Our advanced narrative reporting as an intelligent capabilities that unified and streamlined financial report creation all linked to validated one stream data.

Speaker Change: Capabilities, including Centralizing narrative report Assembly and automating the gathering of key data chart and spreadsheet into narrative books are helping customers save hours of time and reduce risk and reporting errors.

Tom Shea: In our continuing effort to engage with and further enable our customers, our Splash user conference in May once again attracted a record number of customers and prospects. As you know, everything about our conference is focused on customers. Our goal from the very beginning was 100% customer satisfaction and today is no different. Every customer serves as their reference for OneStream. At Splash, we're more than 80 customers shared how they are utilizing the OneStream platform to deliver not only performance but also to start leveraging the platform to strategically steer their business to the future.

Speaker Change: Third our CPM express product create a simplified and pre packaged version of our core CPM capabilities, including financial close consolidation budgeting reporting and forecasting.

Speaker Change: With prebuilt functionality predefined reports and guide the configuration CPM express targets, our commercial customers simplifying core activities and speeding up processes across the finance function.

Speaker Change: Finally, demonstrating the extensibility of the one stream platform, we announced a new partner solution built on one stream.

Tom Shea: We were particularly excited about the 12 product innovations that we shared at this year's event. The most we have ever delivered at one time. Let me give you a couple of notes. First, our certified Microsoft Power BI connector provides a no-code seamless integration that allows finance leaders to quickly connect and consume trusted financial and operational data from OneStream within Microsoft Power BI. Second, our advanced narrative reporting is an intelligent capability that unifies and streamlined financial report creation.

Speaker Change: The new partner place solution Infinity sales performance management empowers FTAA and revenue teams to plan manage and analyze sales performance across the enterprise. This.

Speaker Change: This unified approach eliminates data silos, and misaligned objectives, and helps finance leader steer the business towards growth.

We look forward to continuing momentum at our EMEA last user conference in mid September and Copenhagen, and at our wave developer conference in November.

Speaker Change: Now, let me turn the call over to Bill for a more detailed discussion about Q2 and our outlook for the balance of the year.

Tom Shea: All linked to validated OneStream data. Capabilities including centralizing narrative report assembly and automating the gathering of key data, charts and spreadsheets into narrative books are helping customers save hours of time and reduce risk and reporting errors. Third, our CPM Express product creates a simplified and prepackaged version of our core CPM capabilities including financial flows, consolidation, budgeting, reporting and forecasting. With prebuilt functionality, predefined reports and guided configuration, CPM Express targets our commercial customers, simplifying core activities and speeding up processes across the finance functions.

Thanks, Tom let.

Bill: Let me just echo Toms comments about how excited we are to have completed our successful IPO and to welcome you to our Q2 earnings call.

Bill: As this is our first call I would like to begin with a quick review of our model after that I'll walk through our Q2 financials, and then end with our guidance for Q3 and the full year.

Bill: We have a highly predictable subscription revenue model, which continues to show impressive growth at scale.

Bill: Currently a large percent of our revenue comes from our subscription business, which includes SaaS contracts.

Post contract customer support and cloud computing fees.

Bill: The remainder of our revenue comes from term based software license renewals, which we expect to continue to decline as we convert customers to that as well as professional services and other revenue associated with implementation consulting services and training.

Tom Shea: Finally, demonstrating the accessibility of the OneStream platform, we announced a new partner solution built on OneStream. The new partner-place solution, Infinity Sale Performance Management, empowers FPNA and revenue teams to plan, manage and analyze sales performance across the enterprise. This unified approach eliminates data silos and misaligned objectives and helps finance leaders steer the business towards growth.

Bill: Our best in class gross retention rate offers consistent predictability and visibility.

Bill: Leveraging our model can also drive significant free cash flow, even as we continue to invest in the expansion of our platform and maintain our industry leading position.

Tom Shea: We look forward to continuing momentum at our MES Flash User Conference in mid-September in Copenhagen and at our Waves Developer Conference in November.

Speaker Change: So, let's turn to the quarter.

Speaker Change: As Andy mentioned earlier as part of our recent development section of the S. One filed with the SEC on July 15th 2024, and our IPO prospectus filed on July 24, 2024, we disclosed preliminary estimated Q2 results in our ranges as we had not quite finished.

Bill Coved: Now let me turn the call over to Bill for a more detailed discussion about Q2 and our outlook for the balance of the year. Thanks, Tom.

Bill Coved: Let me just echo Tom's comments about how excited we are to have completed our successful IPO and to welcome you to our Q2 earnings call. As this is our first call, I'd like to begin with a quick review of our model. After that, I'll walk through our Q2 financials and then end with our guidance for Q3 and the full year. We have a highly predictable subscription revenue model which continues to show impressive growth at scale.

Speaker Change: All of our clothes procedures and reviewed.

Speaker Change: We are pleased that our actual revenue results came in at the high end of the range.

Speaker Change: Total GAAP revenue in Q2 increased 36% year over year to $118 million since.

Speaker Change: Subscription revenue grew 44% year over year to $103 million.

Speaker Change: And professional services and other revenue for the quarter was $7 million down 7% from the second quarter last year.

Bill Coved: Currently, a large percent of our revenue comes from our subscription business, which includes SaaS contracts, post contract customer support, and cloud computing fees. The remainder of our revenue comes from term-based software license renewals, which we expect to continue to decline as we convert customers to SaaS, as well as professional services and other revenue associated with implementation, consulting services, and training. Our best-in-class growth retention rate offers consistent predictability and visibility. The leverage in our model can also drive significant free cash flow even as we continue to invest in the expansion of our platform and maintain our industry-leading position.

Speaker Change: This is driven primarily by the continued leverage of our expanding partner ecosystem for implementation work.

Speaker Change: International revenue represented roughly 31% of total revenue.

Speaker Change: Consistent with prior quarters more than 60% of our business came from new customers. This quarter as our new logo engine continues to be a key differentiator.

Speaker Change: That growth coupled with our strong gross retention is also enabling ongoing expansions by existing customers both of which we expect to drive revenue growth for many years to come.

Speaker Change: Our billings increased 23% year over year to $126 million.

Bill Coved: So let's turn to the core. As Annie mentioned earlier, as part of our recent development section of the S1 filed with the SEC on July 15, 2024, and our IPO perspective filed on July 24, 2024, we disclosed preliminary estimated Q2 results in ranges, as we have not quite finished all of our closed procedures and reviewed. We are pleased that our actual revenue results came in at the high end of the range.

Speaker Change: We ended the quarter with <unk> hundred 82, total customers up 19% year over year.

Speaker Change: As those over 80 customers at greater than $1 million in IRR.

Speaker Change: Remaining performance obligations or <unk> increased 37% year over year to $972 million, demonstrating the value of customers, making long term commitments to one stream.

Bill Coved: Total gap revenue in Q2 increased 36% year-over-year to $118 million. Subscription revenue grew 44% year-over-year to $103 million, and professional services and other revenues for the quarter with $7 million down 7% from the second quarter last year. This was driven primarily by the continued leverage of our expanding partner ecosystem for implementation work. International revenue represented roughly 31% of total revenue. Consistent with prior quarters, more than 60% of our business came from new customers this quarter, as our new logo engine continues to be a key differentiator.

Speaker Change: 12 months CRP was up 41% year over year.

Speaker Change: Our non-GAAP gross margin was 69% for the second quarter up about 200 basis points from last year, reflecting the growth of recurring revenues and programs put in place to improve efficiency and execution.

Speaker Change: non-GAAP operating expenses for Q2 increased 25% year over year.

Speaker Change: We continue to manage the business for efficient growth and operating leverage and have prioritized our spending accordingly.

Speaker Change: Our non-GAAP operating loss for the quarter was $9 million compared to a loss of $13 million in Q2 last year.

Bill Coved: That growth coupled with our strong growth retention is also enabling ongoing expansions by existing customers, both of which we expect to drive revenue growth for many years to come. Our buildings increased 23% year-over-year to $126 million. We ended the quarter with 1,482 total customers up 19% year-over-year. Of those, over EV customers had greater than $1 million in ARR. Remaining performance obligations or RPO increased 37% year-over-year to $972 million, demonstrating the value of customers making long-term commitments to one stream.

Speaker Change: This translated to a non-GAAP operating margin for the quarter of negative, 7% and 800 basis point improvement from last year.

Speaker Change: For the third consecutive quarter, we were free cash flow positive having generated $8 million in Q2.

Speaker Change: We ended the quarter with $141 million in cash and equivalents.

Speaker Change: Subsequent to the quarter end, we completed our IPO, we sold $28 2 million shares of class a common stock including shares sold by the company and selling shareholders and the full exercise of the underwriters over allotment option.

Speaker Change: We increased our cash balance by roughly $350 million after deducting underwriting discounts and commissions, which will be used for general corporate purposes.

Bill Coved: 12 months, CRPO was up 41% year-over-year. Our non-GAP growth margin was 69% for the second quarter, up about 200 basis points from last year, reflecting the growth of recurring revenues and programs put in place to improve efficiency and execution. Non-Gap operating expenses for Q2 increased 25% year-over-year. We continue to manage the business for efficient growth and operating leverage and have prioritized their spending accordingly. Our non-Gap operating loss for the quarter was $9 million compared to a loss of $13 million in Q2 last year.

Speaker Change: Before I give guidance just a reminder, amy's earlier comments.

Speaker Change: Comments on our Q2 results as part of the recent development section of our S. One data in July 15th 2024 in our IPO prospectus filed with the SEC on July 24th 2024, we disclosed preliminary estimated Q2 results for revenue.

Speaker Change: Operating income and cash flow.

Speaker Change: As such future expectations had already contemplating these results and our outlook.

Speaker Change: Let me review some of the factors you should keep in mind, when considering our outlook for the third quarter.

Bill Coved: This translated to a non-Gap operating margin for the quarter of negative 7% in 800 basis point improvement from last year. For the third consecutive quarter, we were free cash flow positive having generated $8 million in Q2. We ended the quarter with $141 million in cash and equivalent.

Speaker Change: First just a reminder, that our third quarter revenue is impacted by term license renewals.

Speaker Change: Dominantly with the U S government agencies this fiscal years and in September.

These large multiyear deals are generally recognized annually for that contract requirements.

Speaker Change: Additionally, in 2023, we had a large three year term license renewal that resulted in significant license revenue in Q3 2023.

Bill Coved: So that's the point to the quarter and we completed our IPO. We sold 28.2 million shares of plastic common stock including shares sold by the company and selling shareholders and the full exercise with the underwriters over a lot of options. We increased our cash balance by roughly $350 million after deducting underwriting discounts and commissions which will be used for general corporate purposes.

Speaker Change: Next for Q3, we expect sales and marketing to increase as a percentage of revenue, while we invest in key areas, including our branding strategy.

Speaker Change: Additionally, R&D remains an important investment area for us, especially as we expand our ml and AI efforts and build out the solutions exchange.

Speaker Change: We currently anticipate stock based compensation charges of approximately $275 million to $280 million in Q3 $260 million of which is nonrecurring related to the IPO.

Bill Coved: Before I give guidance, just a reminder of Amy's earlier comments on our Q2 results. As part of the recent development section of our S1 date in July 15th, 2024 and our IPO perspective filed with the FCC on July 24th, 2024, we disclosed preliminary estimated Q2 results for revenue, operating income and cash flow. As such, future expectations that already contemplating these results in our outlook.

Speaker Change: Finally, we expect to drive efficient growth and to be free cash flow positive for the full fiscal year.

Speaker Change: Our guidance for Q3 2024 is as follows.

Speaker Change: We expect subscription revenue growth to continue at more than 35% in Q3.

Bill Coved: Let me review some of the factors you should keep in mind when considering our outlook for the third quarter. First, just a reminder that our third quarter revenue is impacted by trim license renewals predominantly with the U.S, government agencies whose fiscal years and in September. These large multiyear deals are generally recognized annually for their contract requirements. Additionally, in 2023, we had a large three-year term license renewal that resulted in significant license revenue in Q3 2023.

Speaker Change: Is it the term license revenue headwinds I noted earlier total revenue for Q3 is expected to be $123 million to $125 million.

Speaker Change: non-GAAP operating margin is expected to be minus 2% to zero percent.

Speaker Change: non-GAAP net loss per share is expected to be minus one.

Speaker Change: Two plus one.

Speaker Change: Our full year 2024 guidance is as follows.

Speaker Change: Total revenue for 2024 is expected to be 476 million to $480 million.

Bill Coved: Next, for Q3, we expect sales and marketing to increase as a percentage of revenue while we invest in key areas including our branding strategy. Additionally, R&D remains an important investment area for us, especially as we expand our ML and AI efforts and build out the solutions exchange. We currently anticipate stock-based compensation charges of approximately $275 to $280 million in Q3, 260 million of which is non-referring related to the IPO. Finally, we expect to drive efficient growth and to be free cash flow positive for the full fiscal year.

Speaker Change: non-GAAP operating margin is expected to be minus 5% to minus 1%.

Speaker Change: non-GAAP net loss per share is expected to be minus five.

Speaker Change: <unk>.

Speaker Change: Before I turn the call back to Tom for his closing I just wanted to share my excitement about one stream and all too aware of the need for cfos to become more strategic and operationally focused I believe one statement is incredibly well positioned to meet the accelerating demand in the market.

Tom Tom: Matching our platform capabilities with the increased visibility we enjoy as a public company leaves us very optimistic about the opportunity ahead.

Tom Tom: Now, let me turn the call back to Tom.

Bill Coved: Our guidance for Q3 2024 is as follows. We expect subscription revenue growth to continue at more than 35% in Q3. But due to the term license revenue headwinds I noted earlier, total revenue for Q3 is expected to be $123 million to $125 million. NonGAP operating margin is expected to be minus 2% to 0%. NonGAP net loss per share is expected to be minus 1 cent to plus 1 cent.

Tom Tom: Thanks Bill.

Tom Tom: I'd like to take a moment to thank the global <unk> team for their incredible commitment hard work and loyalty.

Tom Tom: From our founding to our most recent achievements, including our successful IPO and a solid start to 2024, none of this would be possible without you as well as our amazing partners and customers around the world.

Tom Tom: I want to be clear that we recognize the IPO at the start of the next chapter and one stream story.

Tom Tom: When we met with many of you over the past weeks and months, we shared a very exciting and ambitious plan for one stream.

Bill Coved: Our full year 2024 guidance is as follows. Total revenue for 2024 is expected to be 476 million to $480 million. NonGAP operating margin is expected to be minus 5% to minus 1%. NonGAP net loss per share is expected to be minus 5 cent to 1 cent.

Tom Tom: As CEO my job is to ensure we never lose sight of those commitments.

And that we make the right investments to continue building out our platform with industry, leading products and solutions.

Tom Tom: I wanted to be sure the fore sight and long term focused we have shown and making important investments such as ml and AI continue to drive our future decisions.

Tom Tom: As proud as I am of one streams achievements to date I have never been more optimistic about our future and I believe we are just getting started.

Bill Coved: Before I turn the call back to Tom for his closing, I just wanted to share my excitement about OneStream. I am all too aware of the need for CFOs to become more strategic and operationally focused. I believe OneStream is incredibly well positioned to meet the accelerating demand in the market. Matching our platform capabilities with the increased disabilities we enjoy as a public company leaves us very optimistic about the opportunity ahead.

Tom Tom: Thank you.

Speaker Change: Thanks, Tom and now I will turn things over to the operator.

Speaker Change: Certainly and as a reminder, if you do have a question at this time. Please press star one on your telephone. Our first question comes from the line of Chris <unk> from Morgan Stanley. Your question. Please.

Chris: Awesome, Hey, guys. Thanks for taking my questions and congrats on a solid first quarter here.

Tom Shea: Now let me turn the call back to Tom. Thanks Bill.

Tom Shea: I want to take a moment to thank the Global OneStream team for their incredible commitment, hard work and loyalty. From our founding to our most recent achievements including our successful ICO and a solid start to 2024, none of this would be possible without you as well as our amazing partners and customers around the world. I want to be clear that we recognize the IPO as the start of the next chapter in OneStream story.

Chris: Really great to hear about that beachhead deal in France. It also looks like you have a lot of open job positions in Europe. So I'm curious to hear how much of an unlock this deal and the hiring there can be for you to accelerate growth in Europe.

Thanks, Chris Yes. This is an exciting deal for us again, because it establishes.

Speaker Change: France is a large market and a large opportunity for one stream and we're very excited about establishing especially in the banking industry.

Tom Shea: When we met with many of you over the past weeks and months, we shared a very exciting and ambitious plan for OneStream. As CEO, my job is to ensure we never lose sight of those commitments and that we make the right investments to continue building out our platform with industry leading products and solutions. I want to be sure the foresight and long-term focus we have shown in making important investments such as ML and AI continue to drive our future decisions.

Speaker Change: Our position as a consolidator of multiple solutions. So you can see us I've mentioned this in other calls that we are at a point of scale in Europe. So we with 30% of our business coming outside of the U S. We're definitely investing heavily there and so again it just adds to the momentum and the opportunity for us.

To continue to invest to grow that segment of the business.

That region.

Tom Shea: As proud as I am of OneStream's achievements to date, I have never been more optimistic about our future and I believe we are just getting started. Thank you.

Excellent. Thank you.

Speaker Change: Thanks.

Speaker Change: Thank you.

Speaker Change: Our next question.

Speaker Change: Comes from the line of John <unk> from Guggenheim Securities. Your question. Please.

Operator: Thanks Tom and now we'll turn things over to the operator. Certainly and as a reminder, if you do have a question at this time, please press star 111 on your telephone.

Speaker Change: Thank you.

John: So my question is for Tom.

John: Tom I'm trying to think about the opportunity in front of you in front of one stream you said digital Digitization of the finance organization is still in early innings.

Chris: Our first question comes from the line of quicks and tarot from Morgan Stanley. Your question please. Awesome. Hey guys, thanks for taking the questions and congrats on our first quarter here. Really great to hear about that beach head deal in France. It also looks like you have a lot of open job positions in Europe.

Competition is something we can all try to triangulate in on and we know when you look at IDC and Gartner and we've talked to people in the field, but how much.

Speaker Change: The opportunity that you are referring to is what I would call Greenfield where companies are simply using things like excel for planning and financial consolidation and close.

Tom Shea: So I'm curious to hear how much of an unlock this deal and the hiring there can be for you, Accelerate Growth in Europe. Thanks Chris. This is an exciting deal for us again because it establishes as you know, France is a large market and a large opportunity for OneStream and we're very excited about that establishing, especially in the banking industry, our position as a consolidator of multiple solutions. So you can see as I mentioned this in other calls that we are at a point of scale in Europe.

Speaker Change: How much of that opportunity because that's really hard for us to figure out.

Speaker Change: Alright.

Thanks, John that's actually still a really big opportunity you would actually be surprised that the number of companies that still rely on <unk> to overlay on top of some of their more static resources like their ERP to get information put together in a way that can make sense in the way that they can manage the company so that that along with.

Tom Shea: So with 30% of our business coming outside of the US, we're definitely investing heavily there. And so again, it just adds to the momentum and the opportunity for us to continue to invest and grow that segment of the business for that region.

Speaker Change: The existing.

Speaker Change: Replacement opportunity and the realization that so many so many of these large organizations are having that they.

Thank you.: Excellent. Thank you.

Speaker Change: They have to get rid of point solutions as well, meaning if you have.

Speaker Change: 567 different solutions required to put pull together information Youre really challenge. So if you add all those up not only the sort of the greenfield of no system in place.

John DePucci: And our next question comes from the line of John DePucci from Guggenheim Securities. Your question, please. Thank you. So my questions for Tom. Tom, I'm trying to think about the opportunity in front of OneStream. Like you said, digitization of the finance organization is still in early innings. Now competition is something we can all try to triangulate in on and we know we look at IDC and Gartner and we've talked to people in the field but how much of the opportunity that you're referring to is what I'll call Greenfield where companies are simply using things like Excel for planning and financial consolidation and close.

Speaker Change: The realization that buying onesie Twosies you end up with a really large opportunity is something that we estimate to be in that $50 billion plus Tam range.

John DePucci: Like how much of that opportunity? Because that's really hard for us to figure out. Thanks, John. That's actually still a really big opportunity. You'd actually be surprised that the number of companies that still rely on Excel to overlay on top of some of their more static resources like their ERPs to get information put together in the way that can make sense in the way that they can manage the company. So that along with the existing replacement opportunity and the realization that so many of these large organizations are having that it's they have to get rid of point solutions as well meaning if you have five, six, seven different solutions required to put pull together your information, you're really challenged.

Speaker Change: Yeah.

Speaker Change: That all makes sense.

Speaker Change: We've done a lot of work on it.

John DePucci: So if you add all those up, not only the sort of the Greenfield of no system in place plus the realization that buying one Z2 Z you end up with a really large opportunity, something that we estimate to be in that $50 billion plus tamarind. That all makes sense and we've done a lot of work on it and it all adds up. He listened nice shop guys. Thank you. Thank you, John. Thanks, John. Thank you.

Speaker Change: And I'll, let al.

I'll ask hey, listen nice job guys. Thank you.

Speaker Change: Thank you Tom Thanks, John.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Steve Enders from Citi. Your question. Please.

Steve Enders: Okay, great. Thanks for taking the questions here.

Steve Enders: I guess, maybe asking about the sense of all in all opportunity.

Steve Enders: A lot of excitement a splash on that but can you maybe help us think about how you're thinking about the kind of near term opportunity.

Related to that and maybe the pipeline opportunity.

Steve Enders: Off of the.

Last conference a few months ago.

Speaker Change: Sure. So as we said it's early days, but we're really excited that we've proven the product market fit and we have the customer validation now coming from these live live customers that are sharing their success stories as.

Speaker Change: As you saw at Splash that are really helping us to build momentum and build pipeline. So when we think about it from a near term there's two ways that it's benefiting the company right. Now first is as we've alluded to in our opening remarks, we are seeing it be a significant competitive advantage in our in our net new sales opportunities in the sense that we're really able to convey.

Speaker Change: A a journey to our customers help them do the core helping do the things that they have to do but also show them that we have an integrated approach to helping them deliver advanced analytics through our sensible machine learning product suite in that area and so that really is important.

Lever of growth at the same time it represents an upsell opportunity for us where our existing companies that are on the platform and that are ready to take that next step to advance their own analytic capabilities and so we're seeing that that motion as well. So near term, we're really excited again to get leverage on this building momentum.

Steve Enders: And our next question comes from the line of Steve Enders from City. Your question, please. Okay, great. Thanks for taking the questions here. I guess maybe asking about the sensible ML opportunity and I know there was a lot of excitement. It's flash on that but he maybe help us think about how you're thinking about the kind of near term opportunity related to that and maybe the pipeline opportunity that's come off of the off of the splash conference a few months ago.

Speaker Change: Tom that we're seeing around this product and I just wanted to highlight there is no. There is really three core characteristics in our applied AI strategy that we're leading into not only from our sensible machine learning brought our entire group sensible AI portfolio and that is we have to build products that are that are trusted that are auditable and that are repeatable.

Speaker Change: Can give our customers.

Tom Shea: Sure. So as we said, it's early days but we're really excited that we've proven the product market fit and we have the customer validation now coming from these live customers that are sharing their success stories as you saw at Splash that are really helping us to build on that on the build pipeline. So when we think about it from a near term, there's two ways that it's benefiting the company right now.

Speaker Change: Find value proposition.

Speaker Change: Okay, that's great to hear thanks for taking the question and Bill looking forward to seeing you in a couple of days.

Bill: I look forward to.

Speaker Change: Thank you.

Speaker Change: And our next question comes from the line of Mark Murphy from Jpmorgan. Your question. Please.

Tom Shea: First, as we've alluded to in our opening remarks, we are seeing it via significant competitive advantage in our net news sales opportunities in the sense that we're really able to convey a journey to our customers, help them do the core, help them do the things that they have to do, but also show them that we have an integrated approach to helping them deliver advanced analytics through our sensible machine learning products suite in that area. And so that's really an important you know, lever of growth at the same time it represents a an upsell opportunity for us for existing companies that are on the platform and that are ready to take that next step to advance their own analytic capabilities. And so we're seeing that that motion as well. So near term, you know, we're really excited again to get leverage on this building momentum that we're seeing around this product.

Mark Murphy: Thank you so much Tom.

Speaker Change: <unk>.

Speaker Change: Networking, we're noticing that mandate to consolidate onto two platforms feel stronger today than we can ever recall it among among Ceos cfos.

Speaker Change: And you've got this stat that you typically replacing two to six legacy system at.

Speaker Change: That deployment can you speak to which of those point products are creating the most incremental opportunity and then how are you determining whether it's best for one stream to build them in natively into those new adjacencies versus maybe having partners build it on the one stream marketplace and then I have a quick follow up.

Speaker Change: Great.

Speaker Change: When I think about the replacement we're really looking at this opportunity there isn't one particular solution. It really comes down to it because when you think of the types of businesses that we serve they are usually fairly sophisticated.

Tom Shea: And I just wanted to highlight there's, you know, there's really three court characteristics in our applied AI strategy that we're leaning into not only from our sensible machine learning, but our entire sensible sensible AI portfolio. And that is we have to build products that are that are trusted that are auditable and that are repeatable that can give our customers a defined value proposition. Okay, that's great to hear. Thanks for taking the question and Bill looking forward to seeing you in a couple days. Yeah, I look forward to it, too. Thank you.

Speaker Change: Business was with complex financial operations, they might have a mixture it could be multiple analytic cubes and existing legacy system and a new point solution or any mix thereof. It really comes down and you look at what are the closest related systems that makes sense to consider sort of an incremental phase one for <unk>.

Speaker Change: <unk>.

Speaker Change: The enemy isn't any given brand that you see out there other point, where legacy it's the complexity caused by the multiple solutions. So for us it is.

Mark Murphy: And our next question comes from a line of Mark Murphy from J.P. Morgan. You're a question please.

Speaker Change: Being the rationalizing of course that is the opportunity.

Tom Shea: Thank you so much, Tom. In our networking, we're noticing the mandate to consolidate onto a true platform, which feels stronger today than we can ever recall it among CIOs, CFOs. And you've got this stat that you're typically replacing two to six legacy systems at deployment. Can you speak to which of those point products are creating the most incremental opportunity and then how are you determining whether it's best for OneStream to build them in natively into those new adjacencies versus maybe having partners build it on the OneStream marketplace, then have a quick follow up.

Speaker Change: When we think about that it really is.

Speaker Change: That really is the underpinning of this.

Speaker Change: Okay.

Speaker Change: And then I had a quick follow up on the on the customer adds at 59, it looks stronger.

Speaker Change: Then for the prior five quarters can you speak to what drove drove that particular number was it incremental traction either mid market over overseas and then just.

Speaker Change: Within the 59 any change in mix of who you are replacing whether high period SVP of your other competitors.

Speaker Change: So if youre talking about the 59 customer add if we think about that I'd, rather kind of redirect your focus a little bit away from that in the future because of that mix is going to become an unreliable.

Tom Shea: Great, so when I think about the replacement, we're really looking at this opportunity, there is this one particular solution. It really comes down to because when you think of the touch of businesses that we serve, they're usually fairly sophisticated business with complex financial operations, they might have a mixture. It could be multiple analytic cubes and existing legacy system in a new point solution or any mix thereof. It really comes down and you look at what are the closest related systems that make sense to consider sort of an incremental phase one for OneStream.

For U I look at it as well.

Speaker Change: We're excited about the number of customers that we're adding in excess or at that $1 billion level, but we also expect to see an increase in the number of customers more on that on that kind of mid market or lower market segment, as we turn our focus and get leverage on our CCM Express products. So for me, it's really about success.

Speaker Change: Main areas, both the large enterprise, where we've really built the company and then this this increasing success, where we're taking the knowledge that we've learned at the large enterprise and packaging that in a way that we can give value to these emerging companies more in the middle segment. So I must focus on the actual count of.

Tom Shea: The enemy isn't any given brand that you see out there, whether a point or legacy, it's the complexity caused by the multiple solutions. So for us, it's being the rationalizing force that is the opportunity. So when we think about that, that really is the underpinning of this.

Customers, rather than because I think over time, you're going to see that change as we as we project out what we might look like in five years to get to four filed the customer youre going to see those customer counts kind of go up and it's still going to be it needs to be a healthy mix of both areas.

Tom Shea: And then I had a quick follow up on the customer ads in 59. It looks stronger than for the prior five quarter. Can you speak to what drove that particular number? Was it incremental traction, either mid market or overseas, and then just within the 59, any change in mix of who you're replacing, whether hyperion SVP or other competitors? So if you're talking about the 59 customer ads, if we think about that, I'd rather redirect your focus a little bit away from that in the future because that mix is going to become an unreliable number for you.

Speaker Change: Operator, let's go to the next question please.

Speaker Change: Certainly and our next question comes from the line of Koji Ikeda from Bank of America. Your question. Please.

Koji Ikeda: Yeah, Hey, Tom Hey, Bill. Thanks, so much for taking the question and congrats on becoming a public company here.

Koji Ikeda: Wanted to ask a question.

Speaker Change: The differentiate the differentiation of the platform when I look at the office of the CFO.

Speaker Change: One could argue this might be one of the oldest software categories out there, especially with ERP and so would love to hear from your voice Tom about some of the nuts and bolts of the platform that you think make the platform. The one stream platform really defensible here over the long term. Thank you.

Tom Shea: I look at it as we're excited about the number of customers that we're adding in access or at that million dollar level, but we also expect to see an increase in the number of customers more on that kind of mid market or lower market segment as we turn our focus and get leverage on our CCM express products. So for me, it's really about success in our main areas, both the large enterprise where we've really built the company.

Tom Tom: Sure. Let me let me provide just a real quick foundation around ERP is just so we're all level set there we really think of ERP as a sort of a more static.

Physical representation of our business.

Speaker Change: And so when you think of one stream and you think of a platform that's involved in really turning that.

Tom Shea: And then this increasing successful, we're taking the knowledge that we've learned at the large enterprise and packaging that in a way that we can give value to these emerging companies more in the middle segment. So I'm less focused on the actual count of customers rather than because I think over time you're going to see that change as we project out what we might look like in five years to get to four thousand customers. You're going to see those customer counts kind of go up and it's still going to be used to be a healthy mix of both areas.

Speaker Change: David Thats being recorded by the ERP into a logical model review other business that helps our management team align and run the data and turn it into information in a way that they can actually execute again.

Operator: Let's go to the next question please. Certainly.

Speaker Change: So that's really what the goal is now so what gives us a defensible position in being that system that can turn that data into information. It really started off with our with our full commitment to creating this uniquely unified platform, having the intellectual capital in our in our modeling engine that we call extensible demur.

Koji Akita: And our next question comes from the line of Koji Akita from Baker America. Your question please. Yeah. Hey Tom. Hey Bill. Thanks so much for taking the question and congrats on becoming a public company here. I wanted to ask a question about the differentiation of the platform. When I look at the office of the CFO, you know, what one could argue this might be one of the oldest software categories out there, especially with the ERPs.

Speaker Change: Analogy that allows us to create a single unified.

Speaker Change: View that we can not only model external statutory data, but also planning data, but then taking that a step further that unified integrated data model. We built on top of that all of the other surrounding capabilities that are required.

That's really what I call the hard work that we do for customers. It's the workflow engine. The presentation ends in the data integration engine the ability to deploy it in different form factors <unk> browser and.

Koji Akita: And so we'd love to hear from your voice Tom about some of the nuts and bolts of the platform that you think made the platform. The OneStream platform really defensible here over the long term. Thank you.

Speaker Change: The integrated AI platform fully integrated owned intellectual property tied into that so that the customer doesn't have to experience. Another technology then on top of it you layer on.

Tom Shea: Sure. Let me let me provide just a real quick foundation, you know, around ERPs just so we're all level set there. You know, really think of ERPs as sort of a more static physical representation of a business. And so when you think of OneStream and you think of a platform that's involved in really turning that data that's being recorded by the ERP into a logical model or view of the business that helps a management team align and run the data on turn it into information in a way that they can actually execute again.

Speaker Change: The development environment, which is truly the distinguishing characteristic and that is where that allows us to take that uniquely set that unique set of integrated engines that I've. Just described our technologies and get leverage on it by building these more industry horizontal like vertical solutions, either ourselves or letting our.

Speaker Change: Partners Bill and ore.

Speaker Change: Both are even customers are able to build those those pieces give us really a long term durable growth model or a sustainable competitive advantage as long as we continue to see those opportunities and create on top of this platform.

Tom Shea: So that's really what the goal is. Now, so what gives us a defensible position in being that system that can turn that data into information, it really started off with our full commitment to creating this uniquely unified platform. Having the intellectual capital in our modeling engine that we call extensible dimensionality that allows us to create this single unified view that we can not only model external statutory data but also planning data, but then taking that a step further that unified integrated data model, we built on top of that all the other surrounding capabilities that are required.

Tom Shea: That really when I call the hard work that we do for customers, it's the workflow engine, the presentation engine, the data integration engine, the ability to deploy in different form factors, Excel or browser, and the integrated AI platform, fully integrated owned intellectual property tied into that so that the customer doesn't have to experience another technology. Then on top of it, you layer on the development environment, which is truly the distinguishing characteristic and that allows us to take that uniquely set that unique set of integrated engines that I just described or technologies and get leverage on by building these more industry horizontal like vertical solutions, either ourselves or letting our partners build and or both or even customers are able to build. Those pieces give us really a long-term durable growth model or a sustainable competitive advantage as long as we continue to see those opportunities and create on top of this platform.

Speaker Change: Yes.

Speaker Change: Thank you and our next question comes from the line of Brian Peterson from Raymond James Your question. Please.

Brian Peterson: Okay, Thanks, and congrats on a strong quarter. So just wanted to follow up on sensible ml. After sitting on some of the presentations at a splash could you see that impacting new logos I get that.

Speaker Change: The adoption curve of that product is that something where you expect a high level of attach rates on new deals or is that something that comes from existing customers that are really embracing the extensibility. Thanks guys.

Speaker Change: So as I mentioned, a little bit earlier I definitely see it.

Speaker Change: Originally we were very very focused on the attach and the upsell I am sorry.

Speaker Change: Customers that we're looking for those advanced analytics that we're helping us co develop in partnering with us, but we are seeing it would be an increasingly important message in the in the net new sales cycle largely because customers that are on this digitization theyre getting this journey, they're getting pressure from management team.

Speaker Change: Teams from boards of directors as to how are you going to become more efficient become more advanced and so we're seeing it would be an important part of our overall.

Speaker Change: Net new sales process as well so I am equally optimistic on both and we are seeing in the quarter we.

We did see some some purchases at on the upfront of deals without these proof of value or without having to go through.

Speaker Change: The proof based projects that we were doing because.

Brian Peterson: Thank you and our next question comes from the line of Brian Peterson from Raymond James. Your question, please. I think you're granted a strong quarter, so it was wanted to follow up on sensible email, you know, after sitting in some of the presentations out of Splash, you could see that impacting new logos.

Speaker Change: Of the success that you saw at Splash.

Speaker Change: And the foundation that we're establishing with our current customers.

Speaker Change: Yes.

Speaker Change: Thank you. Our next question comes from the line of Nicole <unk> from Scotia Bank. Your question. Please.

Tom Shea: To get that the adoption curve of that product, is that something where you expect a high level of attachments on new deals or is that something that comes from existing customers that are really embracing the extensibility. Thanks. So, you know, as I mentioned a little bit earlier, I definitely see it. It's originally we were very, very focused on the the attached and the upsell on certain, you know, just customers that were looking for those advanced analytics that were helping us co develop and partnering with us.

Speaker Change: Awesome.

Speaker Change: Guys.

Tom I kind of wanted to circle back to John discrete cheese question, but maybe asking in a different way.

Speaker Change: But I wanted to get a sense as to how the commercial opportunities playing out I mean, you guys started to.

Speaker Change: Commercial focus go to market motion not too long ago, you have had some exciting product and feature announcement that helps commercial customers get up and running quicker. So can you maybe just talk about how the commercial motion has trended.

Tom Shea: But we are seeing it be an increasingly important message in the in the net new sales cycle largely because customers that are on this digitization, they're getting this journey, they're getting pressure from management teams from board the directors as to how are you going to become more efficient become more advanced. And so we're seeing it be an important part of our overall, not new sales process as well. So I'm equally optimistic on both and we are seeing in the quarter, we did see some some purchases at on the upfront of deals without these proof of value or without having to go through the proof base project that we were doing because of the success that you saw at flash. And the foundation that we're establishing with our current customers. Thank you.

Speaker Change: Relative to expectations and when you look out over the medium term how big of a factor is commercial to the overall growth algorithm.

Speaker Change: Sure. So as we think about it right now we look at the split in the business, we're really looking at it as you know.

Speaker Change: Thinking about the future of the company.

Speaker Change: When you look at our customer base that we have right now.

Speaker Change: We're at around this call it like let's call. It 500 customers and you'll see us kind of thinking along the lines of some of the other large platform companies ending up in that sort of let's call. It 7500 to 10000 customer range, we really are thinking.

Speaker Change: It's early days, but we're thinking about we do have a dedicated sales team, which we've created over.

Speaker Change: Over a year ago, and we really are starting to focus on how do we best serve what are the differences between the large enterprise customer in this emerging customer and so I think it's a.

Nick Coleman: Our next question comes from the line of Nick Coleman from Scotia Bank. Your question please. Awesome. Thanks guys.

Speaker Change: It's a really great opportunity for us to take that and move and move forward with the CPM Express products. So it's really really an important opportunity for us to show up safety expertise and the best the best in class implementations that we've seen because we've done so many large prestigious brands that we're proud of.

Tom Shea: Tom, I kind of wanted to circle back to John the food cheese question, but maybe asking it in a different way. But I wanted to get a sense as to how the commercial opportunities playing out. I mean, you guys started a commercial focus, go to market motion, not too long ago, you've had some exciting product and feature announcement that help commercial customers get up and running quicker. So can you maybe just talk about how the commercial motion has trended relative to expectations.

Speaker Change: Our team has the right now to share that information and be prescriptive to some of these emerging companies and what I'm. Most excited about there is the fact that we can onboard these customers that are the future and growing large companies and they don't have to get off but they don't have to get off the startup one stream platform.

Tom Shea: And when you look out over the medium term, how big of a factor is commercial to the overall growth algorithm. Thanks. Sure, so you know, as we think about it right now, we look at the split in the business, you know, we're really looking at it as, you know, thinking about the future of the company, you know, when you look at our customer base that we have right now, you know, where we're at around this called like what's called 1500 customers and you see us kind of thinking along the line to some of the other large platform companies, ending up in that sort of what's called 7500 to 10,000 customer range.

Speaker Change: Arm trained because.

Speaker Change: They aspire to go all the way to be Fortune. One our software is used at that level and we can communicate with that so we can bring them on deliver value more quickly and then move them all the way along the journey that they're on without changing the software really just giving them.

Speaker Change: A great experience and a lot of value in adding and meeting them, where they are through our store based approach or the or the exchange that we talk about.

Speaker Change: Okay.

Speaker Change: Thank you.

Speaker Change: Next question comes from the line of Terry Tillman from tourist Securities. Your question. Please.

Tom Shea: We really are thinking, you know, it's it's early days, but we're thinking about we do have a dedicated sales team, which we've created over, you know, over a year ago. And we really are starting to focus on, you know, how do we best serve what are the differences between the large enterprise customer and this emerging customer. And so I think it's a it's a really great opportunity for us to take that and move the move forward with the CPM express product.

Terry Tillman: Yes, Thanks, Congrats from me as well on the IPO and the strong <unk> results actually I wanted to go back to the replacement opportunity. If we can and I don't know if this is for Tom or bill but.

Speaker Change: Maybe you could talk a little bit more on that enterprise side, not the commercial side, but at the enterprise side, you know a lot of these fortune 500 accounts, how do you think about the actual duration of this replacement cycle was it pretty linear every year, where you know the contract renewals for the legacy vendor or potentially could you see this get tilted to the kind of the front end of.

Tom Shea: So it's really, really an important opportunity for us to show up, take the expertise and the best, the best in class. We've got implementations that we've seen because we've done so many large prestigious brands that were proud of our team has the right now to share that information and be prescriptive to some of these emerging companies. And what I'm most excited about there is the fact that we can onboard these customers that are the future and growing large companies and they don't have to get off that they don't have to get off the sort of one stream platform train because, you know, if they aspire to go all the way to be fortune one, our software is used at that level and we can communicate with that so we can bring them on deliver value more quickly and then move them all the way along the journey that they're on without changing the software really just giving them a great experience and a lot of value and adding and meeting them where they are through our store based approach or the exchange that we talk about.

Terry Tillman: Thank you and our next question comes from the line of Terry Tillman from Tua Securities. Your question, please. Yeah, thanks.

Speaker Change: This replacement cycle because of things like AI because of things like cloud, maybe theres, an ERP migration cycle, just would love to know more about how you think about this curve for the replacement. Thank you.

Speaker Change: Sure I'll take that Terry.

Terry Tillman: The way that I look at it again just to reiterate we feel that we are only 5% penetrated so it's a really big opportunity in terms of timing or what what mechanisms are calling.

Speaker Change: These deals to the table are the rollover, there's lots of different influences. It can be it can be anything from a an acquisition can trigger it a disposition.

Speaker Change: A technology shift that is tangent like you said it could be an ERP change or so there's lots of different things that triggered a lot of times, we get questions around is at an end of life that is going to accelerate all in all it really is just these companies.

There is different cycles that are happening within our company and different priorities and so it's more about they get a long.

Tom Shea: It congrats for me as well on the IPO and the strong QQ results. Actually, I want to go back to the replacement opportunity if we can and I don't know if this is for Tom or Bill but you know, maybe you could talk a little bit more on that enterprise side and not the commercial side but the enterprise side. You know, know a lot of these Fortune 500 accounts. How do you think about the actual duration of this replacement cycle?

Speaker Change: Value.

Speaker Change: We look at these deals as we're establishing a 10 plus year relationship and these customers that are on financial transformation journey I've been part of these sort of 10 year relationships with these other vendors and as they come up.

Speaker Change: Sorry, if you look at what do they start to open themselves up to feeling comfortable with the cloud as we mentioned.

Tom Shea: Is it pretty linear every year where you know the contract renewals for the legacy vendor or potentially could you see this get tilted to the kind of the front end of this replacement cycle because of things like AI, because of things like cloud maybe there's an ERP migration cycle. Just would love to know more about how you think about this curve for the replacement. Thank you.

Speaker Change: <unk> cloud for the types of customers that we've been serving especially after the large enterprise a lot of these companies had data centers that we're still at scale that we are still economically viable and are now looking at moving this type these types of workloads to the cloud thats another.

Speaker Change: Driver and again transformation Digitization AI they all contribute.

Tom Shea: I'll take that Terry. It's the way that I look at it, you know, again, just to reiterate, we feel that we're only 5% penetrated so it's a really big opportunity. In terms of timing or what you know what mechanisms are calling, you know, these deals to the to the table or the rollover, there's lots of different influences. It can be, you know, it can be anything from a acquisition can trigger it, a disposition, a, you know, a technology shift that is tangent like you said, it could be an ERP change or so there's lots of different things that trigger it.

Speaker Change: I know I'm not answering theres not a specific thing thats driving it it's more of that we're ready to meet the customer wherever they are at on the journey and whatever that reason is.

Speaker Change: Thank you and our next question comes from the line of Alex Zukin from Wolfe Research. Your question. Please.

Alex Zukin: Hey, guys. Thanks for taking the question congrats on your first successful quarter out of the gate.

Alex Zukin: Maybe just.

Just maybe tolerable for you.

Tom Shea: A lot of times we get questions around, is it an end of life that's going to accelerate? All in all, it really is just these companies, you know, there's different cycles that are happening within a company in different priorities and so it's more about they get a long, you know, value. When we look at these deals as we're establishing a 10 plus year relationship and these customers that are on financial transformation journey have been part of these sort of 10-year relationships with these other vendors than as they come up, you know, and they start to look at what they start to open themselves up to feeling comfortable with the cloud.

Alex Zukin: You think about the general demand environment that you saw in <unk> the linearity in the quarter.

Speaker Change: Maybe just go one layer deeper were there any really interesting cohorts or customer.

Speaker Change: Jos or verticals that you kind of saw that maybe surprised you and given how much.

Speaker Change: The IPO.

Speaker Change: Obviously splash.

Speaker Change: What kind of big <unk>.

Speaker Change: Generation events from a funnel perspective anything that youre seeing in your pipeline.

Speaker Change: Top of funnel.

Speaker Change: That gives you incremental enthusiasm.

Tom Shea: As we mentioned, the cloud for the types of customers that we've been serving, especially at the large enterprise, a lot of these companies had data centers that were still at scale that were still economically viable and are now, you know, looking at moving this type, these types of workloads to the cloud. That's another driver and again, transformation, digitization, AI, they all contribute. It's not, I know I'm not answering, there's not a specific thing that's driving it. It's more that we're ready to meet that customer wherever they're at on the journey and whatever that reason is.

Speaker Change: Yes, we're really excited about about banking we're excited about.

Speaker Change: The growing presence that we have in EMEA in terms of some of these foundational deal that I had already mentioned then again foundation, we I'm really excited about the way we continue to.

Speaker Change: Garner larger investments from customers when I say larger investments you continue to see this trend of attracting million dollar deals and that really means that people are seeing the value of the platform and so when I think about these opportunities and I think about growing the business and moving forward.

Alex Zoukin: Thank you and our next question comes from the line of Alex Zoukin from Wolf Research.

Speaker Change: Overall, the demand environment to me feels what I like to call normal and so when I say normalize just means that we're seeing sales cycles that are.

Tom Shea: Your question, please. Hey guys, thanks for taking the question, congrats on your first successful quarter out of you. Think about the general demand environment that you saw in 2Q, the linearity in the quarter.

Speaker Change: Normal level of approvals normal level of contracting expectations. So we're not seeing anything.

Speaker Change: <unk>, there and then generally I would say.

Speaker Change: On a global basis.

Tom Shea: You know, kind of maybe just go one layer deeper, were there any really interesting cohorts or customer or Geo's or verticals that you kind of saw that maybe surprised you and given how much, you know, the IPO and obviously splash were kind of big generating events from a perspective, anything that you're seeing in your pipeline or top of funnel that that gives you incremental. Yeah, we're really excited about about banking. We're excited about the the growing presence that we have in India in terms of some of these foundational deals that I had already mentioned.

Both I would say, there's kind of a quality across others, there's pockets of strength and weakness maybe in EMEA, a little more but overall on balance I'd say, it's pretty it's pretty aligned to the U S.

Speaker Change: We feel like we're just calibrating the business towards that operating environment.

Speaker Change: Yes.

Speaker Change: Thank you and our next question comes from the line of Scott Berg from Needham <unk> Company. Your question. Please.

Scott Berg: Hi, everyone nice quarter here.

Scott Berg: Not sure if Tom or Bill wanted to take this but we've seen spending in the office of the CFO feed more resilient holdup, another kind of sectors of our of our software coverage universe recently I guess as you look at your deals in the last quarter or maybe as you look at the pipeline going forward.

Tom Shea: And then again, foundationally, I'm really excited about the way we continue to garner larger investments from customers when I say larger investments, you continue to see, you know, this trend of attracting million dollar deals, and that really means that people are seeing the value of the platform. And so when I think about, you know, these opportunities and I think about, you know, growing the business and moving forward, you know, overall the demand environment to me feels what I like to call normal.

Speaker Change #100: Is there anything to draw from there in terms of what Youre seeing that kind of drives us enthusiasm for this category right now because your results have been fantastic for a couple of quarters.

Speaker Change #100: Thanks.

Speaker Change #100: Just provide my general context on this.

Speaker Change #101: Again, having spent 10 years in corporate finance and kind of doing this job in understanding the pressures that go onto the opposite the CFO Theres really no reprieve ever and so as we live in these more turbulent macro.

Tom Shea: And so when I say normal, I just mean that we're seeing sales cycles that are, you know, normal level of approvals, normal level of contracting expectations. So we're not seeing anything anomalous there. And then generally I would say on a global basis, you know, both I would say there's kind of a quality across how there's there's pockets of strength and weakness maybe in India a little more, but overall on balance. I'd say it's pretty it's pretty aligned to the US. And you know, we feel like we're just calibrating the business towards that operating environment. Thank you.

Speaker Change #101: There is a constant pressure and I think I think what we've seen over in recent history here with the rapidly changing macro and coming off of the pandemic I think youre now seeing companies believe that its truly time to make sure that they're modernizing and that they can they can adapt to the current environment. So I think there is an enthusiasm there there is a cut.

Speaker Change #101: Full of components that go into what we saw which I think it's important for everyone to understand.

Speaker Change #101: What's good about our business is there is a statutory component to it that statutory component means that we have a high burden of proof to deliver our numbers have to be right, but that also creates a moat and creates a continuous neither statutory fuel because you have to do you are you have to report your numbers when they have to be right. So there's always that perpetual need with them.

Scott Berg: And our next question comes from a line that's got bird from need in my company. Your question, please.

Tom Shea: Hi everyone. Nice quarter here. I'm not sure if Tom or Bill want to take this, but we've seen spending in the offices, the FO be more resilient and hold up better than other kind of sectors of our of our software coverage universe recently. I guess as you look at your deals in the last quarter, or maybe as you look at the pipeline going forward, is there anything to draw from there in terms of what you're seeing that kind of I guess drives this enthusiasm for this category right now because your results, but you know, fantastic for a couple quarters of.

Speaker Change #101: There is also <unk>.

Speaker Change #102: Fueling that CFO has to become strategic partners to the business and so it's no longer acceptable when I was when I was in corporate finance there was a little bit more of a feeling of I was a corporate cost not that I wasn't a strategic partner, but I felt a little bit more like a corporate comp as we used to say that really that.

Speaker Change #102: <unk> has changed and this idea that making sure that.

Speaker Change #102: CFO as can be.

Tom Shea: Thank you. I'll just provide my general context on this and you know have again having spent 10 years in corporate finance and kind of doing this job and understanding the pressures that go on to the office of the CFL. There's really no reprieve ever. And so as we live in these more turbulent macro times, there's a constant pressure. And I think I think you know what we've seen over in recent history here with.

Speaker Change #102: The curator of this really important information to steer the company forward is really really.

Speaker Change #102: This is critical and I think that's at the heart of it that general context that I've just painted is that.

Speaker Change #102: There is this opportunity. There is this also I know I'm kind of rambling on here, but the other element to this is.

Speaker Change #102: Before finally with the first generation of cloud.

Tom Shea: You know, they're rapidly changing macro and coming off of the pandemic. I think you're not seeing companies believe that it's. It's truly time to make sure that they're modernizing that they can they can adapt to. To the current environment. So I think, you know, there's a there's an enthusiasm there. There's a couple of components that go into what we saw, which I. I think it's important for everyone to understand there's. What's good about our business is there's a statutory component to it.

Speaker Change #102: Digital.

Speaker Change #102: <unk> digital transformation for the also the CFO with point solutions.

Speaker Change #103: Right because there wasn't a platform like you had in some of the other areas and then what you are finding as you wake up and just because it's in the cloud doesn't mean that it's more valuable.

Speaker Change #103: You have to rationalize how these pieces worked together and I think again, you're starting to see this this idea that it's time to invest in the also the CFO with a real platform eliminating redundant work. So that you can truly be a partner of the business.

Tom Shea: That statutory component means that we have a high burden of proof to deliver our numbers have to be right. But that also creates a mode and creates a continuous need or statutory fuel, because you have to do your know you have to report your numbers and they have to be right. So there's always that perpetual need. But then there's also this feeling that. CFO has to become strategic partners to the business.

Brent <unk>: Thank you and our next question comes from the line of Brent <unk> from Piper Sandler Your question. Please.

Brent <unk>: Thank you good afternoon, Bill I know, we're only five weeks removed from the IPO and the Q2 flash release, but could you just talk through the pipeline build over the summer what you saw there and then Tom as a follow up on these triggers to drive.

Tom Shea: And so it's no longer acceptable when I was when I was in corporate finance, there was a little bit more of a feeling of I was a corporate cop. Not that I wasn't a strategic partner, but I felt a little bit more like a corporate cop as we used to say that really that motion has changed and this idea that making sure that I, you know, CFOs can be the. The curator of this really important information to steer the company forward is is really really is critical and I think that's at the heart of it that general context that I've just painted is that you know there's this opportunity there's this also you know I know I'm kind of rambling on here, but the other element to this is people are finally the first generation of cloud.

Tom Tom: To drive replacement and modernization.

Speaker Change #105: How important is cost savings you keep talking about the consolidation in two to six point solutions that you are replacing I'm. Just wondering in this environment is the cost savings driver by moving to one stream going up the priority list I ask because theres very few enterprise software firms growing.

Speaker Change #106: CRP over 40%.

Speaker Change #107: Yes, I'll take the beginning.

Speaker Change #107: Just reiterate a little bit of Toms commentary that we feel like we're in a normal environment.

Speaker Change #108: Our pipeline is building as you would expect.

Tom Shea: Digitalization digital transformation for the office of the CFO was point solution, right? Because there wasn't a platform like you had in some of the other areas and then what you're finding is you wake up and just because it's in the cloud doesn't mean that it's more valuable. You have to rationalize how these pieces work together and I think again you're starting to see this idea that it's time to invest in the office of the CFO with a real platform eliminating redundant work so that you can truly be a partner in the business.

Speaker Change #109: Given the guidance that we gave you for the second half of the year, we're really excited about the second half of the year and the teams.

Speaker Change #110: Team's working hard on.

Speaker Change #110: Obviously building pipeline and closing pipeline.

Speaker Change #111: I think it is.

Speaker Change #111: B who are at.

Speaker Change #112: And our original Org meeting, we hired a new CMO about a year ago and Tim has come in and I think he's done a really good job and you've seen some of that show up in our branding and positioning and I think we're I think we feel we're well positioned to execute in the second half of the year.

Bill Coved: Thank you and our next question comes from the line of Brent Braseland from Piper Sandler, your question please. Thank you good afternoon.

Derek Wood: Bill I know only five weeks move from the IPO and in the Q2 Flash release but could you just talk through the pipeline build over the summer what you saw there and and then Tom as a follow-up on these triggers to drive to drive replacements and modernization how how important is cost savings you keep talking about you know the consolidation and to the six-point solutions that you're replacing I'm just wondering in this environment is the cost savings driver by moving to to one stream going up the priority list I ask because there's very few enterprise software firms growing CFO over 40% thanks. Yeah I'll take the beginning I just reiterate a little bit of Tom's commentary that we feel like we're in a normal environment you know our pipeline is building as you would expect you know given the guidance that we gave you for the second half of the year we're really excited about the second half of the year and the teams you know the teams working hard on obviously building pipeline and closing pipeline I think you know for this view who are at the you know at our original org meeting we hired a new CMO about a year ago and and you know teams come in and I think he's done a really good job you know and you've seen some of that show up in our branding and and and positioning and and I think we're I think we feel we're well positioned to execute in the second half of the year.

Speaker Change #113: And I'll, just kind of follow up with the kind of the cost savings when you think about deals and when I'm on when I'm on it we're always selling the value.

Meaning when you're reducing when youre talking about eliminating multiple point solutions.

Speaker Change #113: We would expect licensing savings, but Youre also you are also looking for potential in your organization you are looking for the opportunity to actually not just get the job done not burn your team out until two in the morning, but to actually be able to deliver more cycles at a higher quality at a lower cost. So when we go in.

Speaker Change #113: Our value team is very very.

Speaker Change #113: Conscious of helping the customer understand how we can actually reduce technical debt and.

Speaker Change #113: And deliver deliver the value add a deliver to the customer the right economics.

Speaker Change #113: And we're really focused on making sure that that value is understood and the savings are understood.

Speaker Change #114: Thank you and our next question comes from the line of Matt Vanvliet from <unk>. Your question. Please.

Matt VanVliet: Good afternoon. Thanks.

Matt VanVliet: Okay.

Matt VanVliet: So coming up.

Speaker Change #116: So you mentioned that.

Matt VanVliet: Hum.

Matt VanVliet: Sure.

Matt VanVliet: Sure.

Matt VanVliet: How the pipeline looks and public sector.

Matt VanVliet: Several quarters ahead, and then maybe just help us understand what.

Matt VanVliet: Growth might otherwise look like in the third quarter, if you sort of normalize, especially the large contract last year.

Derek Wood: Great and I'll just kind of follow up with the kind of the cost savings when when you think about deals and when I'm on when I'm on a deal we're always selling the value meaning you know when you're reducing when you're talking about eliminating multiple point solutions you definitely would expect licensing savings but you're also you're also looking for potential in your organization right you're looking for the opportunity to actually not just get the job done not burn your team out till two in the morning but to actually be able to deliver you know more cycles at a higher quality and at a lower cost so when we go in our value team is very very conscious of helping the customer understand you know how we can actually reduce technical debt and deliver deliver the value at a you know deliver to the customer the right economics and and and and we're we're really focused on making sure that that value was understood and the savings are understood. Thank you and our next question comes from the line of Matt Van Vee from BTIG your question please. In the afternoon, thanks for the question.

Speaker Change #117: I know you mentioned strong subscription growth, but just.

Speaker Change #117: Other details to help us with sort of the underlying.

Speaker Change #117: Now for the business.

Yes, Matt you're kind of cutting in and out a little bit so im going to answer your question as best I heard it I think the first the first half was with respect to public sector.

Speaker Change #117: We have a.

Speaker Change #117: A significant and growing public sector.

Speaker Change #118: We're very excited about that as you mentioned.

Speaker Change #118: <unk> is an important one for that what we are seeing however in the public sector is whereas a number of years ago. The public sector kind of finance teams work, we're doing on Prem deals. We're now starting to see them to SaaS deals and so obviously the Rev Rec.

Speaker Change #118: For that shows up.

Speaker Change #118: Ratably over the term of the contract, whereas historically if you do a term based deal. Then obviously you had a lot of accelerated revenue into Q3, so thats going to be.

Rob Oliver: I think coming up is a great opportunity you mentioned[inaudible] I get your question of how the pipeline looks in public sector for both this quarter and in the several quarters ahead. And then maybe to help us understand what growth might otherwise look like in the third quarter if you sort of normalize especially the large contract last year. I know you mentioned strong subscription growth, but just any other details you go up with was sort of the underlying fundamentals of the business.

Speaker Change #119: Something to consider but we have a great team and I'm very excited about it I would just reiterate in terms of kind of normalization in <unk>.

Speaker Change #120: I commented in my prepared remarks that we expect subscription revenue growth to continue at more than 35% in Q3 and Thats a number that I'd have you think about.

Speaker Change #121: So great question great. Thank you.

Speaker Change #122: Thank you and our next question.

It comes from the line of Derrick Wood from Cowen Your question. Please.

Derrick Wood: Great. Thanks for taking my question.

Speaker Change #122: I guess for you Bill.

Derrick Wood: <unk> seen some nice double digit growth in IRR per customer when looking back over the last year and a half are you able to couch how much of that is coming from larger deal sizes, when landing new customer wins and how much of that is execution and upselling or cross selling the base and do you see this algorithm change in March with the introduction.

Rob Oliver: Yeah Matt, you're kind of cutting in and out a little bit, so I'm going to answer your question as best I heard it. I think the first the first half was with respect to public sector. You know we have a significant and growing public sector. We're very excited about that as you mentioned. You know Q3 is an important one for that. What we're seeing however in the public sector is whereas a number of years ago the public sector you know kind of finance teams were you know we're doing on-prem deals.

Speaker Change #124: <unk> CPM express or will that kind of takes some time to have more meaningful impact.

Speaker Change #125: Yes, great Great question, I would I would reiterate I mean, we have over 80 customers now that are paying us over $1 million. So obviously is as that number grows.

Rob Oliver: We're now starting to see them do SaaS deals. And so obviously the red rack for that shows up you know radically over the term of the contract whereas historically if you do a term-based deal then obviously you had a lot of accelerated revenue in Q3. So that's going to be you know something to consider but we have a great team and I'm very excited about it. I would just reiterate in terms of kind of normalization and I I commented in my prepared remarks that we expect subscription revenue growth to continue at more than 35% in Q3 and that's the number that I have you think about. Great question.

Speaker Change #125: And that that obviously increases the average size per deal.

Speaker Change #125: I would reiterate a little bit what Tom was saying I think CPM expressed is still in its very early days.

Speaker Change #126: We have a significant number of mid market customers already but we really want to accelerate that with.

Tom Tom: With the launch of CPM Express and they want to see that number.

Tom Tom: Accelerate quickly, which would obviously be a bit of a headwind on average size per deal. So look we'll try to we'll try to over time help to communicate with you guys.

Tom Shea: Thank you and our next question comes from the line of Derek Wood from TD Cowell. Your question please. Great. Thanks for taking my question. I guess for you Bill you've been seeing some nice double-digit growth in the ARR per customer when looking back over the last year and a half.

Tom Tom: How each of those different businesses performing but I think at this point, where we're really early days on the CPM expressed in obviously quite excited about the enterprise business that we built and are executing I think pretty well.

Thank you and our next question comes from the line of Rob Oliver from Baird. Your question. Please.

Bill Coved: Are you able to couch how much of that is coming from larger deal sizes when landing new customer wins and how much of that is execution and upselling or cross-selling in the base and do you see this algorithm changing much with the introduction of CPM express or will that kind of take some time to have more meaningful impact? Yeah great great question. I would reiterate I mean we have over 80 customers now that are paying us over a million dollars.

Rob Oliver: Great. Good afternoon. Thanks for taking my question, Tom just one for you on the solution exchange I think we're about a year and a half I think it was flat at 23, where you guys kind of officially rolled it out and you talked about expanding revenue streams and I'd be curious either for metrics, you can share or FERC anecdotes around what you've seen.

Speaker Change #128: Since the launch of solutions exchange in terms of stickiness with customers.

Bill Coved: So obviously as that number grows then that you know that obviously increases the the average size per deal. I would reiterate a little bit what Tom was saying. I think you know CPM express is still and it's very early days. We obviously have a significant number of mid-market customers already but we really want to accelerate that with the launch of CPM express and we want to see that number kind of accelerate quickly which would obviously be a bit of a headwind on average size per deal.

Speaker Change #128: Upside new revenue opportunities things you guys have seen percolating within the developer base that you Didnt expect that perhaps can product is any thoughts there would be great. Thanks, so much.

Bill Coved: So look we'll try to we'll try to over time help to communicate with you guys you know how each of those different businesses performing but I think at this point we're we're really early days on on the CPM express and obviously quite excited about the enterprise business that that we built and are executing I think pretty well on.

Tom Tom: Okay, Yeah, I'd love to expand on that I think we're now as we introduce.

Bill Coved: Thank you.

Tom Tom: To kind of bring everybody on the call up we have our solution exchange, which we've had our marketplace since the beginning of the company, but solution exchange was meant to create a.

Tom Tom: Broader.

Tom Tom: Portfolio of solutions, the horizontal our internally developed <unk> solutions partner solutions as well as what we call open, but we now have over 100 partner related solutions and.

Tom Tom: Very notable that we announced that splash was this.

Tom Tom: ISP.

Tom Tom: Decided to create their next software product on our platform, meaning this was a company that have created a sales performance management solution had actually sold their company had an accident and decided to create their next generation product on the one stream platform because of the relationship to the CFO customer base, that's really really encouraging.

Rob Oliver: And our next question comes from the line, Rob Oliver from Beard. Your question please. Great. Good afternoon. Thanks for taking my question. Tom, just one for you on the solution exchange. I think we're about a year and a half. I think it was Splash 23 where you guys kind of officially rolled it out. And you talked about expanding revenue streams. And I'd be curious either, you know, for metrics you can share or for anecdotes around what you've seen since a launch of solutions exchange, you know, in terms of stickiness with customers. Upside, you revenue opportunities of things you guys have seen percolating within the developer base that you didn't expect. And perhaps can product eyes. And you thought there would be great. Thanks so much. Great. Yeah.

Tom Tom: So as we see the that's providing a great prototype for us to learn from as we think about.

Tom Tom: The act of a partner, creating that software as well as the economics and the go to market motions that we see around it and then as again as we've talked about our AI portfolio, all those products flow through the marketplace where everything.

Tom Tom: Talking about around principal amount around the other central AI portfolio product based surplus through the horizontal mechanism or the <unk> marketplace. So it's a critical element to our overall expansion strategy and we look to refine that.

Tom Tom: It's one of the areas, where you want to make sure that you do it right and that you refine it and as you go at the right pace.

Tom Shea: I'd love to expand on that. I think we're now, you know, as we introduced to kind of bring everybody on the call up, you know, we have our solution exchange, which we've had our marketplace since, you know, the beginning of the company, but solution exchange was meant to create, you know, a broader portfolio of solutions. The horizontal or internally developed one stream solutions, partner solutions as well as what we call open place.

Tom Tom: The idea here is we have this platform that has a lot of potential leverage we want to make sure that we go after that in a very thoughtful way and expand.

Tom Tom: There is a.

Speaker Change #129: There is a term that you talk about.

Speaker Change #129: And race car drivers go slow to go fast be thoughtful and then accelerate into it. So we're really excited about where we're at and I think as you learn more about some of the first class solutions that are in the marketplace you can really see that.

Tom Shea: We now have over 100 partner related solutions. And, you know, very notable that we announced that Splash was this, you know, an ISV, you know, decided to create their next software product on our platform, meaning this was a company that had created a sales performance management solution had actually sold their company, had an accident and decided to create their next generation product on the one stream platform because of the relationship to the CFO customer base.

Speaker Change #129: That is what I mean, when I say infinitely extensible about our platform.

Speaker Change #129: Thank you and this does conclude the question and answer session of today's program I'd like to hand, the program back to Andy license for any further remarks.

Andy License: Thanks, so much operator, and thanks, everyone for joining US today, we hope to see you at our upcoming conferences well be attending an extra week. Thanks again.

Tom Shea: That's really, really encouraging. So as we see this, you know, that's providing a great prototype for us to learn from as we think about, you know, the act of a partner creating that software as well as the economics and the go-to-market motions that we see around it, you know, and then as you, again, as we talk about our AI portfolio, all those products flow through the marketplace. So everything that you hear us talking about around sensible and now around the other sensible AI portfolio products, they surface through the horizontal mechanism or the one stream marketplace.

Speaker Change #131: Thank you, ladies and gentlemen for your participation in today's conference. This does conclude the program you may now disconnect good day.

Speaker Change #131: Okay.

Speaker Change #131: [music].

Speaker Change #131: Okay.

Tom Shea: So it's a critical element to our overall expansion strategy. And we look to refine that. You know, it's one of the areas where you want to make sure that you do it right and that you refine it and then you go at the right pace. And the idea here is we have this platform that has a lot of potential leverage. We want to make sure that we go after that in a very thoughtful way and expand, you know, there's an old term that you talk about in race car driving, go slow to go fast, be thoughtful and then accelerate into it.

Speaker Change #131: Okay.

Speaker Change #131: [music].

Speaker Change #131: Okay.

Speaker Change #131: Yes.

Speaker Change #131: Okay.

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Speaker Change #131: Yes.

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Speaker Change #131: [music].

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Speaker Change #131: Okay.

Tom Shea: So we're really excited about where we're at. And I think as you learned more about some of the first class solutions that are in the marketplace, you can really see that, you know, that is what I mean when I say infinitely extensible about our platform. Thank you.

Speaker Change #131: Okay.

Speaker Change #131: Sure.

Speaker Change #131: Okay.

Operator: And this does conclude the question and answer session of today's program.

Annie: I'd like to hand the program back to Andy listens for any further remarks. Thanks so much operator. And thanks everyone for joining us today. We hope to see you at next week. Thanks again.

Operator: Thank you ladies and gentlemen for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

Operator: OneStream[inaudible] OneStream OneStream OneStream OneStream OneStream OneStream OneStream OneStream OneStream[inaudible] Babies and Gentlemen, thank you for joining OneStream's second quarter-2044 earnings conference call.

Speaker Change #131: Okay.

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Speaker Change #132: Good afternoon, ladies and gentlemen, thank you for joining <unk> second quarter 2044 earnings Conference call. As a reminder, this call is being recorded and will be available for replay from the Investor Relations section of our website. Following the call. After the Speakers' remarks, there will be a question and answer session if you'd like to.

Speaker Change #133: This page Youll need to press star one on your phone.

Andy List: Question has been answered and you'd like to remove yourself from the queue simply press star. One again, we ask that you. Please limit yourselves to one question each I will now pass the call over to Andy list.

Andy List: President. Please go ahead.

Andy List: Okay.

Andy List: Thank you operator.

Andy List: Good afternoon, everyone welcome to <unk> second quarter 2024 earnings conference call.

Andy: Joining me on the call today.

Speaker Change #135: Our cofounder and CEO, Tom <unk> and our CFO.

Speaker Change #136: The press release announcing our second quarter results issued earlier today and posted on our Investor Relations website at Investor <unk> Dot Com, along with an earnings highlights presentation.

Speaker Change #137: Before we get started I'd like to let everyone know that we plan to participate in two conferences in the upcoming weeks. The first is city 2024 Global TMT Conference in New York on September 5th.

Speaker Change #137: And the second is the Goldman Sachs <unk> and Technology conference in San Francisco on September 11th.

Speaker Change #137: Just a reminder, that we previously disclosed preliminary estimates for certain Q2 operating results, including revenue GAAP and non-GAAP operating loss and free cash flow and in our recent operating results section of our IPO registration statements filed with the SEC on July 15th.

Operator: As a reminder, this call is being recorded, and will be available for replay from the Investor Relations section of our website following the call. After the speakers remarks, there will be a question and answer session. If you'd like to participate, you'll need to press star-1-1 on your phone. If your question has been answered, and you'd like to remove yourself from the queue, simply press star-1-1 again. We ask that you please limit yourselves to one question.

Speaker Change #137: 24.

Speaker Change #137: As a result, please note that historical and projected financials that have already contemplated these results and their impact on future quarters.

Speaker Change #137: Today, we are providing the complete an actual Q2 financial results.

Now, let me remind everyone that some of the statements on today's call are forward looking including statements related to the guidance for the third quarter ending September 32024, and the year ending December 31 2024.

Annie: I will now pass the call over to any less vice-president. Please go ahead. Thank you, operator. Good afternoon, everyone. Welcome to OneStream's second quarter-2024 earnings conference call. Joining me on the call today are our co-founder and CEO Tom Shay and our CFO, Bill Covell. The press release announcing our second quarter results issued earlier today is posted on our Investor Relations section. This is our website at Investor. OneStream.com, along with an earnings highlights presentation.

Speaker Change #137: Forward looking statements are subject to known and unknown risks and uncertainties assumptions and other factors.

Speaker Change #137: Some of these risks are described in greater detail in our prospectus dated July 23rd 2024 filed with the SEC on July 24, 2024 and in other documents, we file with the SEC from time to time, including our quarterly report on Form 10-Q for the quarter ended June 32024.

Speaker Change #137: We undertake no obligation to update any forward looking statements, whether as a result of new information future events or otherwise except as required by law.

Annie: Before we get started, I'd like to let everyone know that we plan to participate in two conferences in the upcoming weeks. The first is City's 2024 Global TMT Conference in New York on September 5th, and the second is a Goldman Sachs Communicopia and Technology Conference in San Francisco on September 11th. Just a reminder that we previously disclosed preliminary estimates for certain Q2 operating results, including revenue, gap-and-non-gap operating loss, and free cash flow, under the recent operating results section of our IPO registration statement filed with the SEC on July 15th, 2024.

Speaker Change #137: During our call today, we will also reference certain non-GAAP financial measures.

Speaker Change #137: There are limitations to our non-GAAP financial measures and they may not be comparable to similarly titled measures of other companies.

Speaker Change #137: And non-GAAP measures referenced on todays call should not be considered in isolation from or substitute for the most directly comparable GAAP measures are.

Speaker Change #137: Our management believes that our non-GAAP measures provide meaningful supplemental information regarding our performance and liquidity.

Speaker Change #137: Excluding certain expenses that may not be indicative of our ongoing core operating performance.

Annie: As a result, please note that historical and projected financials have already contemplated these results and their impact on future quarters. Today, we are providing the complete and actual Q2 financial results. Now that we remind everyone that some of the statements on today's call are forward looking, including statements related to the guidance for the third quarter, ending September 30th, 2024, and the year-ending December 31, 2024. Forward-looking statements are subject to known and unknown risks and uncertainties, assumptions and other factors.

Speaker Change #137: Reconciliations of our non-GAAP measures to the most directly comparable GAAP measures can be found in this afternoon's press release and the highest earnings highlights presentation posted on our Investor website.

Speaker Change #137: Now I'll turn the call over to Tom Tom.

Tom Tom: Thank you Annie and welcome everyone and thank you for joining US this afternoon for our first earnings call as a public company.

Tom Tom: We are excited to review our strong second quarter performance with you.

Tom Tom: And for those of you new to our story I thought I'd spend some time sharing a bit about one stream. How we got here, how we are modernizing the asa the CFO and the opportunity ahead.

Annie: Some of these risks are described in greater detail in our perspective stated July 23rd, 2024, filed with the SEC on July 24th, 2024, and in other documents, we file with the SEC from time to time, including our quarterly report on form 10Q for the quarter-ended June 30th, 2024. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise, except it's required by law.

Tom Tom: So let's start with a few key highlights from the quarter.

Tom Tom: Q2, total revenue increased 36% year over year and subscription revenue grew 44% year over year, we were cash flow positive for a third consecutive quarter.

Tom Tom: And we hosted our largest ever slash user conference in May where we introduced a record number of platform innovation and saw a 20% increase in attendance.

Tom Tom: We accomplished all of this against an improving but still challenging macro environment.

Annie: During our call today, we will also reference certain non-gap financial measures. There are limitations to our non-gap financial measures, and they may not be comparable to similarly titled measures of other companies. The non-gap measures referenced on today's call should not be considered in isolation from or substitute for their most directly comparable gap measures. Our management believes that our non-gap measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses that may not be indicative of our ongoing core operating performance. Reconciliation of our non-gap measures to the most directly comparable gap measures can be found in this afternoon's press release, and the high-earning highlights presentation posted on our investor website.

Speaker Change #138: With this backdrop CFO is understand they must invest to modernize their financial architecture and go beyond just reporting on past performance to become a strategic driver of the business.

The one stream platforms ability to rationalize multiple point solutions and provide an exceptional level of insight is ideally positioned to meet this need we're fortunate to say that even in uncertain times and possibly because of them. Our customers are acknowledging the importance of investing in modernizing their.

Speaker Change #138: Departments.

Speaker Change #138: Proving visibility and positioning themselves for the future.

Tom Shea: Now it's from the talk over to Tom. Tom? Thank you, Annie.

Speaker Change #138: We remain convinced that our market opportunity is stronger than ever based on three important trends.

Tom Shea: Welcome, everyone, and thank you for joining us this afternoon for our first earnings call as a public company. We are excited to review our strong second quarter performance with you, and for those of you new to our story, I thought I'd spend some time sharing a bit about one stream. How we got here, how we are modernizing the office of the CFO and the opportunity ahead. So let's start with a few key highlights from the quarter.

Speaker Change #138: While digital transformation and finance is underway, it's still in the early inning finding.

Speaker Change #139: <unk> finance departments have been slow to fully embrace and trust the cloud, leaving them to play catch up with their own digital transformation, while other operational areas, including sales and HR have been digitizing their environments for the last two decades, we believe that only a small percent of cloud transformation from legacy.

Tom Shea: Q2 total revenue increased 36% year-over-year, and subscription revenue grew 44% year-over-year. We were cash flow positive for our third consecutive quarter, and we hosted our largest over-slash user conference in May, where we introduced a record number of platform innovations and saw a 20% increase in attendance. We accomplished all this against an improving and still challenging macro-environment. With this backdrop, CFOs understand they must invest to modernize their financial architecture and go beyond just reporting on past performance to become a strategic driver of the business.

Speaker Change #139: Finance applications have occurred thus far.

Speaker Change #139: Now that finance departments have begun to accept the cloud and we believe it is just a matter of time before more CFO ultimately recognize the need for a unified cloud based platform to provide a single view into financial and operational data across the enterprise.

Speaker Change #139: Second cfos are being tasked with becoming more strategic and integrating finance with operations is imperative in this effort.

Speaker Change #139: Historically closing the books and reporting quarterly financials were the sole focus of the CFO.

Tom Shea: The one stream platforms ability to rationalize multiple point solutions and provide an exceptional level of insight is ideally positioned to meet this need. We're fortunate to say that even in uncertain times and possibly because of them, our customers are acknowledging the importance of investing in modernizing their finance departments, improving visibility and positioning in themselves for the future.

Speaker Change #139: Today CFO are increasingly being asked to work more closely with the CEO and board to provide strategic insight and operational planning to help steer the business and drive execution. This require CFO to have tools like dynamic reporting to meet the requirements of changing business and complement the static nature.

Speaker Change #139: Sure of a traditional ERP system or.

Tom Shea: We remain convinced that our market opportunity is stronger than ever based on three important trends. First, while digital transformation and finances underway, it's still in the early innings. Finance departments have been slow to fully embrace and trust the cloud, leaving them to play catch-up with their own digital transformation. While other operational areas, including sales, IT and HR have been digitizing their environments for the last two decades, we believe that only a small percent of cloud transformations from legacy finance applications have occurred thus far.

Speaker Change #140: Our platform provides operational agility and a unified view into financial and operational data across the enterprise, which is enabling CFO in their organizations to excel.

Speaker Change #140: Third AI ml as an opportunity to increase the value of knowledge workers and business performance.

Speaker Change #141: As customers become efficient at managing their core financial duties and are reliably able to provide accurate reporting to the board the management team.

Speaker Change #141: <unk> are wining, even more analysis, both financial and operational to help run their companies more efficiently.

Tom Shea: Now that finance departments have begun to accept the cloud, and we believe it is just a matter of time before more CFOs ultimately recognize the needs for a unified cloud-based platform to provide a single view into financial and operational data across the enterprise. Second, CFOs are being tasked with becoming more strategic, and integrating finance with operations is imperative in this effort. Historically, closing the books and reporting quarterly financials were the sole focus of the CFO.

Speaker Change #141: Just the natural evolution together with ml AI is in increasing the value of knowledge workers, who require accurate real time data that one platform can provide.

Speaker Change #141: Respond to these trends one stream develop the operating system for modern finance unifying a multitude of financial functions on our cloud based platform and providing an exceptional level of insight to our customers our platform addresses three primary growth areas.

Tom Shea: Today's CFOs are increasingly being asked to work more closely with the CEO and board to provide strategic insight and operational planning to help steer the business and drive execution. This requires CFOs to have tools like dynamic reporting to meet the requirements of changing business and complement the static nature of a traditional ERP system. Our platform provides operational agility and a unified view into financial and operational data across the enterprise, which is enabling CFOs and their organizations to excel.

Speaker Change #141: Core finance solutions or core CPM.

Speaker Change #141: Financial and operational planning and performance applications.

Speaker Change #141: Applied AI, driven forecasting and performance management.

Speaker Change #141: We began by addressing core finance solutions, leveraging our unique legacy and strengthened financial closing consolidation and extending to planning and reporting ingesting data from almost any ERP system. One stream unifies core finance solutions on a single modern platform, providing a single source of truth across the.

Speaker Change #141: Enterprise and unlike existing legacy system, our unique extensible dimensionality capability delivers financed the reporting standards and controls it needs with the flexibility for business units functions and locations to report and plan an additional level of detail without impacting corporate standards.

Tom Shea: Third, AIML is an opportunity to increase the value of knowledge workers in business performance. As customers become efficient at managing their core financial duties and are reliably able to provide accurate reporting to their board and management teams, CEOs are wanting even more analysis, both financial and operational to help run their companies more efficiently. It's just the natural evolution. Together with ML, AI is an increasing the value of knowledge workers who require accurate real time data that one stream's platform can provide.

Speaker Change #141: We estimate that this legacy replacement alone represents a roughly $10 billion market opportunity with only a small percentage converted to the cloud thus far.

Speaker Change #142: <unk> as a true software platform that enables partners and customers to write software on our software to build industry or functional specific application on top of our platform and leverage our common data model in security.

Tom Shea: Respond to these trends, one stream develops the operating system for modern finance, unifying a multitude of financial functions on our cloud-based platform and providing an exceptional level of insight to our customers. Our platform addresses three primary growth areas, core finance solutions or core CPM, financial and operational planning and performance applications, applied AI-driven forecasting and performance management. We began by addressing core finance solutions, leveraging our unique legacy and strength in financial close and consolidation and extending to planning and reporting, ingesting data from almost any ERP system, once you're immunized core finance solutions on a single modern platform, providing a single source of truth across the enterprise and unlike existing legacy systems, our unique, essential dimensionality capability delivers finance the reporting standards and controls it needs with the flexibility for business units, functions and locations to report and plan at additional levels of detail without impacting corporate standards.

Speaker Change #142: This opens the door to a continued expansion of new solutions available through our solutions exchange, leading to higher innovation velocity, expanding revenue streams, greater utility and faster time to value for customers.

Speaker Change #142: Second as customers have become more reliant on one screen they began asking us to solve new more diverse problems outside our core.

Speaker Change #142: As a result, we move beyond solely helping customers improve their core financial close reporting and planning to streamlining additional financial processes like account reconciliation and transaction matching and actually steering operations.

Speaker Change #142: By extending past traditional CPM with expanded operational solutions like sales performance management workforce planning and ESG, we are now providing value far exceeding our original mandate and playing an important role in speeding and optimizing day to day business operation and planning across the enterprise.

Speaker Change #142: Importantly, moving into operations firmly solidified our position as a single source of truth for our customers.

Tom Shea: We estimate that this legacy replacement alone represents a roughly $10 billion market opportunity with only a small percentage converted to the cloud thus far. OneStream is a true software platform that enables partners and customers to write software on our software to build industry or functional specific applications, a top our platform, and leverage our common data model and security. This opens the door to a continued expansion of new solutions available through our solutions exchange, leading to higher innovation velocity, expanding revenue streams, greater utility, and faster time to value for customers.

Speaker Change #142: Third.

Speaker Change #142: This extensibility also encompasses our approach to AI.

Speaker Change #142: We saw the transformational potential of AI held for the office of the CFO since our inception.

We began coding to bring AI and machine learning into our platform nearly a decade ago.

Speaker Change #142: With the intent of building packaged AI solutions to enhance key financial processes and decisions.

Speaker Change #142: Our first purpose built finance AI product for Central machine learning, which was created for companies could leverage real time data and analysis to improve their demand forecasting without requiring significant data science resources.

Tom Shea: Second, as customers become more reliant on OneStream, they began asking us to solve new, more diverse problems outside our core. As a result, we move beyond solely helping customers improve their core financial clothes, reporting and planning, to streamlining additional financial processes, like account reconciliation and transaction matching, and actually steering operations. By extending past traditional CPM with expanded operational solutions like sales performance management, workforce planning, and ESG, we are now providing value far exceeding our original mandate and planning an important role in speeding and optimizing day-to-day business operations and planning across the enterprise. Importantly, moving into operations firmly solidified our position as a single source of truth for our customers.

Speaker Change #142: The repeatable transparent and measurable value of sensible ml is generating in many cases, a significant improvement in demand forecasting for customers.

Which is a significant ROI for their investment.

Speaker Change #142: While still early days.

Speaker Change #142: <unk> product has been proven in the market at multiple customers and become an important differentiator of our platform.

Speaker Change #142: We are leveraging the same customer trust and transparency generated by sensible ml and developing our AI roadmap, which you'll hear more about as we continue to develop it.

Speaker Change #142: Okay.

Speaker Change #142: We currently serve over 1400 customers and approximately 45 countries with over 30% of total revenue coming from outside the U S.

Speaker Change #142: Our blue chip customer base represents virtually every major vertical.

Speaker Change #142: Now, let me turn to how our progress in our three growth areas core finance solutions or core CPM financial and operational planning and performance solutions and applied AI, driven forecasting and performance management is translating into tangible results with some of our latest customer wins in Q2.

Tom Shea: Third, this accessibility also encompasses our approach to AI. We saw the transformational potential of AI helped for the office of the CFL since our inception. We began coding to bring AI and machine learning into our platform nearly a decade ago, with the intent of building packaged AI solutions to enhance key financial processes and decisions. Our first purpose built science AI product was sensible machine learning, which was created so companies could leverage real-time data and analysis to improve their demand forecasting without requiring significant data science resources.

Speaker Change #142: One of the largest manufacturers of medical devices signed a seven figure deal for our core CPM financial close consolidation reporting and analysis as well as our sensible ml.

Speaker Change #142: More and more we are hearing from customers that the platform vision, including sensible ml and eventually sensible Gen. AI is an increasingly important differentiator.

Tom Shea: The repeatable transparent and measurable value of sensible ML is generating, in many cases, a significant improvement in demand forecasting for customers, which is a significant ROI for their investment. While still early days, our ML product has been proven in the market at multiple customers and become an important differentiator over platform. We are leveraging the same customer trust and transparency generated by sensible ML and developing our AI roadmap, which we will hear more about as we continue to develop it. We currently serve over 1400 customers in approximately 45 countries with over 30% of total revenue coming from outside the U.S. Our Bluetooth customer base represents virtually every major vertical.

Speaker Change #142: It's the extensibility of our platform as we present customers with a full journey from core to advanced analytics that both attracts and retains customers reflected in our historically strong retention.

Speaker Change #142: The depth of our platform also aligns with the ongoing trend to streamline the number of disparate systems utilized.

Speaker Change #142: In this case, we replaced six point solutions with our platform.

Speaker Change #142: On average we replaced two to six point solution with every new customer.

Speaker Change #142: This win is also an example of the power of our strategic relationship with Microsoft.

Speaker Change #142: Another new sensible ml and AI customer this quarter was a supplier of products and services to military and defense contractors worldwide.

Tom Shea: Now let me turn to how our progress in our three growth areas, core finance solutions, or core CPM, financial and operational planning and performance solutions, and applied AI-driven forecasting and performance management is translating into tangible results with some of our latest customer wins in Q2. One of the largest manufacturers of medical devices signed a seven-figure deal for our core CPM financial close consolidation reporting and analysis as well as our sensible ML.

Speaker Change #142: This customer also signed a seven figure deal encompassing our core CPM offering, including financial consolidation management reporting and our sensible ml.

Speaker Change #142: Looking ahead, they plan to add financial planning and analysis in their second phase. This is a great example of how we began discussions with our customers first through the core and then do more.

Speaker Change #142: Finally, I want to highlight a win we had this quarter with the second largest banking group in France Group BPC.

Speaker Change #142: One of the key reasons that one streams core CPM was chosen came from the bank stated objective to replace for consolidation systems with one modern and unified solution.

Tom Shea: More and more we are hearing from customers that the platform vision, including sensible ML and eventually sensible Gen AI, is an increasingly important differentiator. It's the extensibility of our platform as we present customers with a full journey from core to advanced analytics that both attracts and retains customers reflected in our historically strong retention. The depth of our platform also aligns with the ongoing trend to streamline the number of disparate systems utilized.

Speaker Change #142: This foundational win as a beachhead in a pivotal region for us this.

Speaker Change #142: This seven figure deal is enabling over 1000 users with our technology to serve is 35 million customers around the globe.

Speaker Change #142: And our continuing effort to engage with and further enable our customers are splashed user conference in May once again attracted a record number of customers and prospects.

Tom Shea: In this case, we replace six point solutions with our platform. On average, we replace two to six point solutions with every new customer. This win is also an example of the power of our strategic relationship with Microsoft. Another new sensible ML and AI customer this quarter was a supplier of products and services to military and defense contractors worldwide. This customer also signed a seven-figure deal encompassing our core CPM offerings, including financial consolidation, management reporting and our sensible ML. Looking ahead, they plan to add financial planning and analysis in their second phase. This is a great example of how we begin discussions with our customers, first do the core and then do more.

Speaker Change #142: As you know everything about our conference is focused on customers.

Speaker Change #142: Our goal from the very beginning was 100% customer satisfaction and today is no different every customer serves as a reference for one stream.

Speaker Change #142: As splash.

Speaker Change #142: We're more than 80 customers shared how they are utilizing the one stream platform to deliver not only performance, but also to start leveraging the platform to strategically sphere their business to the future.

Speaker Change #143: We were particularly excited about the 12 product innovations that we shared at this year's event. The most we have ever delivered at one time, let me give you a couple of note.

Speaker Change #143: First our certified Microsoft Power Bi connector provides a no code seamless integration that allows finance leaders to quickly connect and consumed trusted financial and operational data from one stream within Microsoft power bi.

Tom Shea: Finally, I want to highlight a win we had this quarter with the second largest banking group in France, Group BPCE. One of the key reasons that one dream's core CPM was chosen came from the bank's state of the objective to replace four consolidation systems with one modern and unified solution. This foundational win is a beach had in a pivotal region for us. This seven-figure deal is enabling over a thousand users with our technology to service 35 million customers around the globe.

Speaker Change #143: Second.

Speaker Change #143: Our advanced narrative reporting as an intelligent capabilities that unified and streamlined financial report creation all linked to validated one stream data.

Speaker Change #143: Capabilities, including Centralizing narrative report Assembly and automating the gathering of key data chart and spreadsheet into narrative books are helping customers save hours of time and reduce risk and reporting errors.

Tom Shea: In our continuing effort to engage with and further enable our customers, our splash user conference in May once again attracted a record number of customers and prospects. As you know, everything about our conference is focused on customers. Our goal from the very beginning was 100% customer satisfaction and today is no different. Every customer serves as their reference for one stream. At splash, we're more than 80 customers shared how they are utilizing the one stream platforms to deliver not only performance, but also to start leveraging the platforms to strategically steer their business to the future. We were particularly excited about the 12 product innovations that we shared at this year's event. The most we have ever delivered at one time. Let me give you a couple of notes.

Speaker Change #143: Third our CPM express product create a simplified and pre packaged version of our core CPM capabilities, including financial close consolidation budgeting reporting and forecasting.

Speaker Change #143: With prebuilt functionality predefined reports and guy that configuration, CPM express targets, our commercial customers simplifying core activities and speeding up processes across the finance function.

Speaker Change #143: Finally, demonstrating the extensibility of the one stream platform, we announced a new partner solution built on one screen.

Speaker Change #143: The new partner place solution Infinity sales performance management empowers FPA and revenue teams to plan manage and analyze sales performance across the enterprise this unified.

Tom Shea: First, our certified Microsoft Power BI connector provides a no-code seamless integration that allows finance leaders to quickly connect and consume trusted financial and operational data from one stream within Microsoft Power BI. Second, our advanced narrative reporting is an intelligent capability that unifies and streamlines financial report creation. All linked to validated one-stream data. Capabilities including centralizing narrative report assembly and automating the gathering of key data, charts and spreadsheets into narrative books are helping customers save hours of time and reduce risk and reporting errors.

Speaker Change #143: <unk> approach eliminates data silos, and misaligned objectives, and helps finance leaders steer the business towards growth.

Speaker Change #143: We look forward to continuing momentum at our EMEA last user conference in mid September and Copenhagen, and at our wave developer conference in November.

Speaker Change #143: Now, let me turn the call over to Bill for a more detailed discussion about Q2 and our outlook for the balance of the year.

Bill: Thanks, Tom.

Bill: Let me just echo Toms comments about how excited we are to have completed our successful IPO and to welcome you to our Q2 earnings call.

Bill: As this is our first call I would like to begin with a quick review of our model after that I'll walk through our Q2 financials, and then end with our guidance for Q3 and the full year.

Tom Shea: Third, our CPM Express product creates a simplified and prepackaged version of our core CPM capabilities including financial flows, consolidation, budgeting, reporting and forecasting. With pre-built functionality, pre-defined reports and guided configuration, CPM Express targets our commercial customers, simplifying core activities and speeding up processes across the finance functions.

Bill: We have a highly predictable subscription revenue model, which continues to show impressive growth at scale.

Bill: Currently a large percent of our revenue comes from our subscription business, which includes SaaS contracts post contract customer support and cloud computing fees the.

Bill: The remainder of our revenue comes from term based software license renewals, which we expect to continue to decline as we convert customers to SaaS as well as professional services and other revenue associated with implementation consulting services and training.

Tom Shea: Finally, demonstrating the accessibility of the OneStream platform, we announced a new partner solution built on OneStream. A new partner-place solution, infinity sales performance management, empowers FPNA and revenue teams to plan, manage and analyze sales performance across the enterprise. This unified approach eliminates data silos and misaligned objectives and helps finance leaders steer the business towards growth.

Bill: Our best in class gross retention rate offers consistent predictability and visibility.

Bill: Leverage in our model can also drive significant free cash flow, even as we continue to invest in the expansion of our platform and maintain our industry leading position.

Tom Shea: We look forward to continuing momentum at our AMIA Splash user conference in mid-September in Copenhagen and at our WAVE developer conference in November.

Speaker Change #144: So, let's turn to the quarter.

Speaker Change #144: As Hany mentioned earlier as part of our recent development section of the S. One filed with the SEC on July 15th 2024, and our IPO prospectus filed on July 24, 2024, we disclosed preliminary estimated Q2 results in our ranges as we had not quite finished all.

Bill Coved: Now let me turn the call over to Bill for a more detailed discussion about Q2 and our outlook for the balance of the year. Thanks, Tom. Let me just echo Tom's comments about how excited we are to have completed our successful ICO and to welcome you to our Q2 earnings call.

Speaker Change #144: All of our clothes procedures and reviewed.

Speaker Change #144: We are pleased that our actual revenue results came in at the high end of the range.

Bill Coved: As this is our first call, I'd like to begin with a quick review of our model. After that, I'll walk through our Q2 financials and then end with our guidance for Q3 and the full year. We have a highly predictable subscription revenue model which continues to show impressive growth at scale. Currently, a large percent of our revenue comes from our subscription business, which includes staff contracts, post contract customer support and cloud computing fees.

Speaker Change #144: Total GAAP revenue in Q2 increased 36% year over year to $118 million subscription revenue grew 44% year over year to $103 million.

Speaker Change #145: <unk> services and other revenue for the quarter was $7 million down 7% from the second quarter last year.

Speaker Change #145: This is driven primarily by the continued leverage of our expanding partner ecosystem for implementation work.

Bill Coved: The remainder of our revenue comes from term-based software license renewals, which we expect to continue to decline as we convert customers to staff, as well as professional services and other revenue associated with implementation, consulting services and training. Our best-in-class growth retention rate offers consistent predictability and visibility. The leverage in our model can also drive significant free cash flow even as we continue to invest in the expansion of our platform and maintain our industry-leading position.

Speaker Change #145: International revenue represented roughly 31% of total revenue.

Speaker Change #145: Consistent with prior quarters more than 60% of our business came from new customers. This quarter as our new logo engine continues to be a key differentiator.

Speaker Change #145: That growth coupled with our strong gross retention is also enabling ongoing expansions by existing customers both of which we expect to drive revenue growth for many years to come.

Speaker Change #145: Our billings increased 23% year over year to $126 million.

Bill Coved: So let's turn to the core. As Annie mentioned earlier, as part of our recent development section of the S1 file with the SEC on July 15th, 2024 and our ICO prospectus file on July 24th, 2024, we disclosed preliminary estimated Q2 results in ranges as we had not quite finished all of our close procedures and reviews. We are pleased that our actual revenue results came in at the high end of the range.

Speaker Change #145: We ended the quarter with <unk> hundred 82, total customers up 19% year over year.

Speaker Change #145: As those over 80 customers had greater than $1 million in IRR.

Speaker Change #145: Remaining performance obligations or <unk> increased 37% year over year to $972 million, demonstrating the value of customers, making long term commitments to windstream.

Bill Coved: Total gap revenue in Q2 increased 36 percent year-over-year to $118 million, subscription revenue grew 44% year-to-year $203 million and professional service is an other revenue for the quarter with $7 million down 7% from the second quarter last year. This is driven primarily about the continued leverage of our expanding partner ecosystem for implementation work. International revenue represented roughly 31% of total revenue. Consistent with prior quarters, more than 60% of our business came from new customers this quarter, as our new logo engine continues to be a key different trader.

Speaker Change #145: 12 months CRP was up 41% year over year.

Speaker Change #145: Our non-GAAP gross margin was 69% for the second quarter up about 200 basis points from last year, reflecting the growth at recurring revenues and programs put in place to improve efficiency and execution.

Speaker Change #145: non-GAAP operating expenses for Q2 increased 25% year over year.

We continue to manage the business for efficient growth and operating leverage and have prioritized our spending accordingly.

Speaker Change #145: Our non-GAAP operating loss for the quarter was $9 million compared to a loss of $13 million in Q2 last year.

Bill Coved: That growth, coupled with our strong growth retention, is also enabling ongoing expansions by existing customers both of which we expect to drive revenue growth for many years to come. Our buildings increased 23% year-to-year $126 million. We ended the quarter with 1,482 total customers of 19% year-over-year. Of those, over 80 customers had greater than $1 million in ARR. Remaining performance obligations or RPO increased 37% year-to-year to $972 million, demonstrating the value of customers making long-term commitments to OneStream.

Speaker Change #145: This translated to a non-GAAP operating margin for the quarter of negative, 7% and 800 basis point improvement from last year.

Speaker Change #145: For the third consecutive quarter, we were free cash flow positive having generated $8 million in Q2.

Speaker Change #145: We ended the quarter with $141 million in cash and equivalents.

Speaker Change #145: Subsequent to the quarter end, we completed our IPO we.

Speaker Change #145: We sold $28 2 million shares of class, a common stock, including shares sold by the company and selling shareholders and the full exercise of the underwriters over allotment option.

Speaker Change #145: We increased our cash balance by roughly $350 million after deducting underwriting discounts and commissions, which will be used for general corporate purposes.

Bill Coved: 12 months, CRPO was up 41% year-to-year. Our non-GAP growth margin was 69% for the second quarter, up about 200 basis points from last year, reflecting the growth of our current revenues and programs put in place to improve efficiency and execution. Non-GAP operating expenses for Q2 increased 25% year-to-year. We continue to manage the business for efficient growth and operating leverage and have prioritized our spending accordingly. Our non-GAP operating loss for the quarter was $9 million compared to the loss of $13 million in Q2 last year.

Speaker Change #145: Before I give guidance just a reminder, amy's earlier comments on our Q2 results as part of the recent development section of our S. One data in July 15th 2024 in our IPO prospectus filed with the SEC on July 24th 2024, we disclosed preliminary estimated Q2.

Speaker Change #145: Results for revenue.

Speaker Change #145: Operating income and cash flow.

Speaker Change #145: As such future expectations had already contemplating these results and our outlook.

Speaker Change #145: Let me review some of the factors you should keep in mind, when considering our outlook for the third quarter.

Bill Coved: This translated to a non-GAP operating margin to the quarter of negative 7% and 800 basis point improvements from last year. For the end of the quarter, we ended the quarter with $141 million in cash and equivalent.

Speaker Change #145: First just a reminder, that our third quarter revenue is impacted by term license renewals.

Speaker Change #145: Dominantly with the U S government agency this fiscal years and in September.

Speaker Change #145: These large multiyear deals are generally recognized annually for that contract requirements.

Speaker Change #145: Additionally, in 2023, we had a large three year term license renewal that resulted in significant license revenue in Q3 2023.

Bill Coved: So that's the point to the quarter, and we completed our IPO. We sold 28.2 million shares of plastic common stock, including shares sold by the company and selling shareholders, and the full exercise with the underwriters over-allotment option. We increased our cash balance by roughly $350 million after deducting underwriting discounts and commissions, which will be used for general corporate purposes.

Speaker Change #145: Next for Q3, we expect sales and marketing to increase as a percentage of revenue, while we invest in key areas, including our branding strategy.

Speaker Change #145: Additionally, R&D remains an important investment area for us, especially as we expand our ml and AI efforts and build out the solutions exchange.

Speaker Change #145: We currently anticipate stock based compensation charges of approximately 275.

Bill Coved: Before I give guidance, just a reminder of Amy's earlier comments on our Q2 results. As part of the recent development section of our S1 date in July 15, 2024, and our IPO perspective filed with the FCC on July 24, 2024, we disclosed preliminary estimated Q2 results for revenue, operating income, and cash flow. As such, future expectations that already contemplating these results in our outlook.

Speaker Change #145: To $280 million in Q3 $260 million of which is non recurring related to the IPO.

Speaker Change #145: Finally, we expect to drive efficient growth and to be free cash flow positive for the full fiscal year.

Speaker Change #145: Our guidance for Q3 2024 is as follows we expect subscription revenue growth to continue at more than 35% in Q3 that gives it the term license revenue headwinds I noted earlier total revenue for Q3 is expected to be $123 million.

Bill Coved: Let me review some of the factors you should keep in mind when considering our outlook for the third quarter. First, just a reminder that our third quarter revenue is impacted by trim license renewals, predominantly with the U.S, government agencies whose fiscal years end in September. These large multi-year deals are generally recognized annually for their contract requirements. Additionally, in 2023, we had a large three-year term license renewal that resulted in significant license revenue in Q3 2023.

Speaker Change #146: $125 million.

Speaker Change #146: non-GAAP operating margin is expected to be minus 2% to zero percent.

Speaker Change #146: non-GAAP net loss per share is expected to be minus one.

Speaker Change #146: Two plus months that.

Speaker Change #146: Our full year 2024 guidance is as follows.

Speaker Change #146: Total revenue for 2024 is expected to be 476 million to $480 million.

Bill Coved: Next, for Q3, we expect sales and marketing to increase as a percentage of revenue while we invest in key areas, including our branding strategy. Additionally, R&D remains an important investment area for us, especially as we expand our ML and AI efforts and build out the solutions exchange. We currently anticipate stock-based compensation charges of approximately $275 to $280 million in Q3, $260 million, which is non-referring related to the IPO. Finally, we expect to drive efficient growth and to be free cash flow positive for the full fiscal year.

Speaker Change #146: non-GAAP operating margin is expected to be minus 5% to minus 1%.

Speaker Change #146: non-GAAP net loss per share is expected to be minus five.

Speaker Change #146: <unk>.

Speaker Change #147: Before I turn the call back to Tom for his closing I just wanted to share my excitement about one stream I'm also aware of the need for cfos to become more strategic and operationally focused I believe one statements incredibly well positioned to meet the accelerating demand in the market.

Tom Tom: Matching our platform capabilities with the increased visibility we enjoy as a public company leaves us very optimistic about the opportunity ahead.

Tom Tom: Now, let me turn the call back to Tom.

Bill Coved: Our guidance for Q3 2024 is as follows. We expect subscription revenue growth to continue at more than 35% in Q3. But due to the term license revenue headwinds I noted earlier, total revenue for Q3 is expected to be $123 million to $125 million. Non-gap operating margin is expected to be minus 2% to 0%. Non-gap net loss per share is expected to be minus 1 cent to plus 1 cent.

Tom Tom: Thanks Bill.

Tom Tom: I'd like to take a moment to thank the global Windstream team for their incredible commitment hard work and loyalty.

Tom Tom: From our founding to our most recent achievements, including our successful IPO and a solid start to 2024, none of this would be possible without you as well as our amazing partners and customers around the world.

Tom Tom: I want to be clear that we recognize the IPO at the start of the next chapter and one stream story.

Tom Tom: When we met with many of you over the past weeks and months, we shared a very exciting and ambitious plan for windstream.

Bill Coved: Our full year 2024 guidance is as follows. Total revenue for Q3 2024 is expected to be $476 million to $480 million. Non-gap operating margin is expected to be minus 5% to minus 1%. Non-gap net loss per share is expected to be minus 5 cent to 1 cent.

Tom Tom: As CEO my job is to ensure we never lose sight of those commitments.

Tom Tom: And that we make the right investments to continue building out our platform with industry, leading products and solutions.

Tom Tom: I wanted to be sure the foresight and long term focus we have shown and making important investments such as ml and AI continue to drive our future decisions.

Tom Tom: As proud as I am of one streams achievements to date I have never been more optimistic about our future and I believe we are just getting started.

Bill Coved: Before I turn the call back to Tom for his closing, I just wanted to share my excitement about one stream. I am all too aware of the need for CFOs to become more strategic and operationally focused. I believe one stream is incredibly well positioned to meet the accelerating demand in the market. Matching our platform capabilities with the increased disability we enjoy as a public company leads us very optimistic about the opportunity ahead.

Tom Tom: Thank you.

Tom Tom: Thanks, Tom and now I will turn things over to the operator.

Certainly and as a reminder, if you do have a question at this time. Please press star one on your telephone. Our first question comes from the line of Chris <unk> from Morgan Stanley. Your question. Please.

Chris: Awesome, Hey, guys. Thanks for taking my questions and congrats on a solid first quarter here.

Tom Shea: Now let me turn the call back to Tom. Thanks Bill.

Tom Shea: I want to take a moment to thank the Global One Stream team for their incredible commitment, hard work and loyalty. From our founding to our most recent achievements, including our successful IPO and a solid start to 2024, none of this would be possible without you as well as our amazing partners and customers around the world. I want to be clear that we recognize the IPO as the start of the next chapter in OneStream story.

Chris: Really great to hear about that beachhead deal in France. It also looks like you have a lot of open job positions in Europe. So I'm curious to hear how much of an unlock this deal and the hiring there can be for you to accelerate growth in Europe.

Speaker Change #148: Thanks, Chris Yes. This is an exciting deal for us again, because it establishes.

Speaker Change #149: France is a large market and a large opportunity for one stream and we're very excited about establishing especially in the banking industry.

Tom Shea: When we met with many of you over the past weeks and months, we shared a very exciting and ambitious plan for OneStream. As CEO, my job is to ensure we never lose sight of those commitments, that we make the right investments to continue building out our platform with industry leading products and solutions. I want to be sure the foresight and long-term focus we have shown in making important investments such as ML and AI continue to drive our future decisions.

Speaker Change #149: Our position as a consolidator of multiple solutions. So you can see as I've mentioned this in other calls that we are at a point of scale in Europe. So we with 30% of our business coming outside of the U S. We're definitely investing heavily there and so again it just adds to the momentum and the opportunity for us.

Speaker Change #149: To continue to invest and grow that segment of the business.

Region.

Tom Shea: As proud as I am of OneStream's achievements to date, I have never been more optimistic about our future and I believe we are just getting started. Thank you.

Speaker Change #150: Excellent. Thank you.

Speaker Change #150: Thanks.

Speaker Change #151: Thank you.

Speaker Change #152: Our next question.

Comes from the line of John <unk> from Guggenheim Securities. Your question. Please.

Operator: Thanks Tom and now we'll turn in. If you do have a question at this time, please press star 11 on your telephone.

Speaker Change #153: Thank you.

John: So my question is for Tom.

John: Trying to think about the opportunity in front of you in front of one stream. You said did you the digitization of the finance organization is still in early innings.

Chris: Our first question comes from the line of quicks and tarot from Morgan Stanley. Your question please. Awesome. Hey guys, thanks for taking the questions and congrats on our first quarter here. Really great to hear about that beach head deal in France. It also looks like you have a lot of open job positions in Europe. So, here's to hear how much of an unlock this deal and the hiring there can be for you. Excellent growth in Europe. Thanks for seeing.

Speaker Change #154: Competition is something we can all try to triangulate in on and we know when you look at IDC and Gartner and we've talked to people in the field, but how much.

Speaker Change #155: Of the opportunity that you are referring to is what I'll call Greenfield where companies are simply using things like excel for planning and financial consolidation and close.

Tom Shea: This is an exciting deal for us again because it establishes, as you know, France is a large market and a large opportunity for OneStream and we're very excited about that establishing, especially in the banking industry, our position as a consolidator of multiple solutions. So, you can see as I mentioned this in other calls that we are at a point of scale in Europe. So, with 30% of our business coming outside of the US, we're definitely investing heavily there. And so again, it just adds to the momentum and the opportunity for us to continue investing, grow that segment of the business for that region. Excellent. Thank you.

Speaker Change #156: How much of that opportunity because that's really hard for us to figure out.

Speaker Change #156: Alright.

Speaker Change #156: Thanks, John that's actually still a really big opportunity you would actually be surprised that the number of companies that still rely on <unk> to overlay on top of some of their more static resources like their ERP to get information put together in a way that can make sense in the way that they can manage the company so that rep that along with.

Speaker Change #156: The existing.

Speaker Change #156: Replacement opportunity and the realization that so many so many of these large organizations are having that they.

Speaker Change #156: They have to get rid of point solutions as well, meaning if you have.

Speaker Change #156: 567 different solutions required to put pull together your information Youre really challenge. So if you add all those up not only the sort of the greenfield of no system in place.

John DePucci: And our next question comes from the line of John DeFouci from Guggenheim Securities.

Tom Shea: Your question, please. Thank you. So, my question is for Tom. Trying to think about the opportunity in front of OneStream, you said digitization of the finance organization is still in our early endings. Now, competition is something we can all try to try and relate in on. And we know, we look at IDC and Gartner and we've talked to people in the field, but how much of the opportunity that you're referring to is what I'll call Greenfield where companies are simply using things like Excel for planning and financial consolidation and close. Like, how much of that opportunity? Because that's really hard for us to figure out. Thanks, John.

Speaker Change #156: Just the realization that buying onesie Twosies you end up with a really large opportunity is something that we estimate to be in that $50 billion plus Tam range.

Speaker Change #157: That all makes sense.

Speaker Change #157: We've done a lot of work on it and.

Speaker Change #157: Did all at all.

Speaker Change #158: I'll ask hey, listen nice job guys. Thank you.

Speaker Change #158: Thank you Tom and thanks John.

Speaker Change #158: Thank you.

Speaker Change #159: Our next question comes from the line of Steve Enders from Citi. Your question. Please.

Okay, great. Thanks for taking the questions here.

Steve Enders: I guess, maybe asking about the sense of all ml opportunity than others.

Steve Enders: Lot of excitement a splash on that but can you maybe help us think about how youre thinking about the near term opportunity.

Tom Shea: That's actually a really big opportunity. You'd actually be surprised that the number of companies that still rely on Excel to overlay on top of some of their more static resources, like their ERPs, to get information put together in the way that can make sense in the way that they can manage the company. So, that along with the existing replacement opportunity and the realization that so many, so many of these large organizations are having that it's they have to get rid of point solutions as well, meaning if you have.., five, six, seven different solutions required to put, pull together your information, you're really challenged.

Speaker Change #160: Late into that and maybe the pipeline opportunity.

Speaker Change #161: Off of the.

Last conference a few months ago.

Speaker Change #162: Sure. So as we said it's early days, but we're really excited that we've proven the product market fit and we have the customer validation now coming from these live live customers that are sharing their success stories as you saw at splash that are really helping us to build momentum and build pipeline. So when we think about it from a near term.

Speaker Change #162: There is two ways that it's benefiting the company right now first is as we've alluded to in our opening remarks, we are seeing it be a significant competitive advantage in our in our net new sales opportunities in the sense that we're really able to convey a journey to our customers help them do the core helping do the things that they have to do but also.

Tom Shea: So if you add all those up, not only the sort of the green field of no system in place, plus the realization that buying one Z2Z, you end up with a really large opportunity something that we estimate to be in that $50 billion plus tam range. That all makes sense, and you know, we've done a lot of work on it, and it all adds up. He listened to nice shots, guys. Thank you. Thank you, John. Thanks, John. Thank you.

Speaker Change #162: So show them that we have an integrated approach to helping them deliver advanced analytics through our sensible machine learning product suite in that area and so that really is important.

Speaker Change #162: Lever of growth at the same time it represents an upsell opportunity for us for our existing companies that are on the platform and that are ready to take that next step to advance their own analytic capabilities and so we're seeing that.

Steve Enders: And our next question comes from the line of Steve Ender's from City. Your question, please. Okay. Great. Thanks for taking the questions here.

Speaker Change #162: That motion as well so near term we're really.

Tom Shea: I guess maybe asking about the sensible and now opportunity, and I know there was a lot of excitement at Splash from that, but you maybe help us think about how you're thinking about the kind of near term opportunity related to that, and maybe the pipeline opportunity that's come off of the Splash Conference a few months ago. Sure. So as we said, it's a really day, but we're really excited that we've proven the product market fit, and we have the customer validation now coming from these live customers that are sharing their success stories as you saw at Splash that are really helping us to build on that on the build pipeline.

Speaker Change #162: Really excited again to get leverage on this building momentum that we're seeing around this product and I just wanted to highlight there.

Speaker Change #163: Theres really three core characteristics in our applied AI strategy that we're leading into not only from our sensible machine learning brought our entire board sensible AI portfolio and that is we have to build products that are that are trusted that are auditable amount a repeatable that can give our customers a.

Speaker Change #163: A defined value proposition.

Okay, that's great to hear thanks for taking the question and Bill looking forward to seeing you in a couple of days.

Bill: I look forward to.

Speaker Change #164: Thank you.

Tom Shea: So when we think about it from a near term, there's two ways that it's benefiting the company right now. First, as we alluded to in our opening remarks, we are seeing it be a significant competitive advantage in our net new sales opportunities in the sense that we're really able to convey a journey to our customers, help them do the core, help them do the things that they have to do, but also show them that we have an integrated approach to helping them deliver advanced analytics through our sensible machine learning products week in that area.

Speaker Change #165: And our next question comes from the line of Mark Murphy from Jpmorgan. Your question. Please.

Mark Murphy: Thank you so much Tom.

In our.

Speaker Change #166: Networking, we're noticing that mandate to consolidate onto two platforms feel stronger today than we can ever recall it among among Ceos and cfos.

Speaker Change #167: And you've got this stat that you typically replacing two to six legacy system.

Speaker Change #168: At deployment could you speak to which of those point products are creating the most incremental opportunity and then how are you determining whether it's best for one stream to build them in natively into those newer adjacencies versus maybe having partners build it on the one stream marketplace and then I have a quick follow up.

Tom Shea: And so that's really an important, you know, lever of growth at the same time it represents an upsell opportunity for us for existing companies that are on the platform and that are ready to take that next step to advance their own analytic capabilities. And so we're seeing that that motion as well. So near term, you know, we're really excited again to get leverage on this building momentum that we're seeing around this product.

Speaker Change #168: Great.

When I think about the replacement we're really looking at this opportunity there isn't one particular solution. It really comes down to it because when you think of the types of businesses that we serve they are usually fairly sophisticated.

Tom Shea: And I just wanted to highlight there's, you know, there's really three core characteristics in our applied AI strategy that we're leaning into not only from our sensible machine learning but our entire core sensible, sensible AI portfolio and that is we have to build products that are, that are trusted that are auditable and that are repeatable that can give our customers a defined value proposition. Okay, that's great to hear. Thanks for taking the question and Bill looking forward to seeing you in a couple days. Yeah, I look forward to it too. Thank you.

Speaker Change #168: Business with with complex financial operations, they might have a mixture it could be multiple analytic cubes and existing legacy system and a new point solution or any mix thereof. It really comes down and you look at what are the closest related systems that makes sense to consider sort of an incremental phase one per or one stream.

Speaker Change #168: Sure.

Speaker Change #169: The enemy isn't any given brand that you see out there whether point where legacy it's the complexity caused by the multiple solutions. So for us it's being the rationalizing of course that is the opportunity.

Mark Murphy: And our next question comes from a line of Mark Murphy from JP Morgan. Your question, please. Thank you so much, Tom.

Speaker Change #169: So when we think about that it really is.

Tom Shea: The in our networking, we're noticing the mandate to consolidate onto true platforms. He'll stronger today than we can ever recall it among among CIOs and you've got this stat that you know, you're typically replacing two to six legacy systems at deployment. Can you speak to which of those point products are creating the most incremental opportunity and then how are you determining whether it's best for one stream to build them in natively into those new adjacencies versus maybe having partners build it on the one stream marketplace then have a quick follow up.

Speaker Change #169: That really is the underpinning of this.

Speaker Change #169: Okay.

Speaker Change #170: Thank you and then I had a quick follow up on the on the customer adds at 59, it looks stronger.

Speaker Change #171: Then for the prior five quarters can you speak to what drove drove that particular number was it incremental traction either mid market over overseas and then just.

Speaker Change #172: Within the 59 any change in mix of who you are replacing whether Hyperion SVP of your other competitors.

Speaker Change #173: So if youre talking about the 59 customer add if we think about that I'd, rather kind of redirect your focus a little bit away from that in the future because of that mix is going to become an unreliable number for you I look at it as <unk>.

Tom Shea: Great, so when I think about the replacement, we're really looking at this opportunity. There isn't one particular solution, it really comes down to because when you think of the types of businesses that we serve, they're usually fairly sophisticated business with complex financial operations, they might have a mixture. It could be multiple analytic cubes and existing legacy system in a new point solution or any mix thereof. It really comes down and you look at one of the closest related systems that makes sense to consider sort of an incremental phase one for oneStream.

Speaker Change #173: We're excited about the number of customers that we're adding and access or at that million dollar level, but we also expect to see an increase in the number of customers more on that on that kind of mid market or lower market segment, as we turn our focus and get leverage on our CCM Express products. So for me, it's really about success in our in our.

Speaker Change #173: Main areas, both the large enterprise, where we've really built the company and then this increasing success, where we're taking the knowledge that we've learned at the large enterprise.

Tom Shea: The enemy isn't any given brand that you see out their other point or legacy, it's the complexity caused by the multiple solutions. So for us, it's being the rationalizing force that is the opportunity. So when we think about that, that really is the underpinning of this.

Speaker Change #173: And packaging that in a way that we can give value to these emerging companies more in the middle segment. So I must focus on the actual count of customers rather than because I think over time, you're going to see that change as we as we project out what we might look like in five years to get to 4000 customer youre going to see those customer counts kind of go up in it.

Tom Shea: Yeah, and then I had a quick follow up on the customer ads at 59. It looks stronger than for the prior five quarters. Can you speak to what drove that particular number? Was it incremental traction, either mid market or overseas, and then just within the 59, any change in mix of who you're replacing, whether Hyperion SVP or other competitors? So if you're talking about the 59 customer ads, if we think about that, I'd rather kind of redirect your focus a little bit away from that in the future, because that mix is going to become an unreliable number for you.

Speaker Change #173: It's still going to be it needs to be a healthy mix of both areas.

Speaker Change #174: Operator, let's go to the next question please.

Speaker Change #175: Certainly and our next question comes from the line of Koji Ikeda from Bank of America. Your question. Please.

Koji Ikeda: Yeah, Hey, Tom Hey, Bill. Thanks, so much for taking the question and congrats on becoming a public company here.

Koji Ikeda: Wanted to ask a question.

Speaker Change #176: The differentiation differentiation of the platform when I look at the office of the CFO.

Speaker Change #177: One could argue this might be one of the oldest software categories out there, especially with ERP and so would love to hear from your voice Tom about some of the nuts and bolts of the platform that you think make the platform. The one stream platform really defensible here over the long term. Thank you.

Tom Shea: I look at it as we're excited about the number of customers that we're adding in access or at that million dollar level, but we also expect to see an increase in the number of customers more on that kind of mid market or lower market segment. As we turn our focus and get leverage on our system express products, so for me, it's really about success in our main areas, both the large enterprise where we've really built the company.

Tom Tom: Sure. Let me let me provide just a real quick foundation around ERP is just so we're all level set there we really think of ERP as a sort of a more static.

Speaker Change #178: Physical representation of our business.

Speaker Change #179: And so when you think of one stream and you think of a platform that's involved in really turning that.

Tom Shea: And then this increasing success where we're taking the knowledge that we've learned at the large enterprise and packaging that in a way that we can give value to these emerging companies more in the middle segment. So I must focus on the actual count of customers rather than because I think over time, you're going to see that change as we project out what we might look like in five years to get to four thousand customers. You're going to see those customer accounts kind of go up, and it's still going to be, it needs to be a healthy mix of both areas.

Speaker Change #179: David Thats being recorded by the ERP into a logical model review of our business.

Speaker Change #179: Our management team align and run the data and turn it into information in a way that they can actually execute again. So that's really what the goal is now so what gives us a defensible position in being that system that can turn that data into information. It really started off with our with our full.

Speaker Change #179: Our commitment to creating this uniquely unified platform, having the intellectual capital in our in our modeling engine that we call extensible dimensionality that allows us to create a single unified.

Koji Akita: Operator, let's go to the next question, please. Certainly, and our next question comes from the line of Koji Akita from Baker, America.

Tom Shea: Your question, please. Yeah, hey, Tom. Hey, Bill.

Speaker Change #179: Our view that we can not only model external statutory data, but also planning data, but then taking that a step further that unified integrated data model, we built on top of that all the other surrounding capabilities that are required.

Tom Shea: Thanks so much for taking the question and congrats on becoming a public company here. I wanted to ask a question about the differentiation of the platform. When I look at the office of the CFO, you know, one could argue this might be one of the oldest software categories out there, especially with the ERPs. And so we'd love to hear from your voice, Tom, about some of the nuts and bolts of the platform that you think made the platform, the one-stream platform, really defensible here over the long term. Thank you.

Speaker Change #179: Really what I call the hard work that we do for customers. It's the workflow engine. The presentation ends in the data integration engine.

Speaker Change #179: Ability to deploy it in different form factors <unk> browser and.

Speaker Change #179: The integrated AI platform fully integrated owned intellectual property tied into that as well, but the customer doesn't have to experience. Another technology then on top of it you layer on the new development environment, which is truly the distinguishing characteristic and that is where that allows us to take that uniquely.

Tom Shea: Sure, let me, let me provide just a real quick foundation, you know, around ERPs, just so we're all levels out there. You know, really think of ERPs as sort of a more static physical representation of a business. And so when you think of OneStream and you think of a platform that's involved in really turning that data that's being recorded by the ERP into a logical model or view of the business that helps the management team align and run the data and turn it into information in a way that they can actually execute again. So that's really what the goal is.

Speaker Change #179: That unique set of integrated engines that I, just described our technologies and get leverage on it by building. These more industry horizontal like vertical solutions, either ourselves or letting our partners build and or.

Speaker Change #179: Both are even customers are able to build those those pieces give us really a long term durable growth model or a sustainable competitive advantage as long as we continue to.

Tom Shea: Now, so what gives us a defensible position in being that system that can turn that data into information, it really started off with our full commitment to creating this uniquely unified platform. Having the intellectual capital in our modeling engine that we call extensible dimensionality that allows us to create this single unified view that we can not only model external statutory data but also planning data, but then taking that a step further that unified integrated data model, we built on top of that all the other surrounding capabilities that are required that really when I call the hard work that we do for customers, this is the workflow engine, the presentation engine, the data integration engine, the ability to deploy it in different form factors, Excel or browser, and the integrated AI platform, fully integrated owned intellectual property tied into that so that the customer doesn't have to experience another technology.

Speaker Change #179: <unk> opportunities and create on top of this platform.

Speaker Change #179: Yeah.

Speaker Change #180: Thank you and our next question comes from the line of Brian Peterson from Raymond James Your question. Please.

Tom Shea: Then on top of it, you layer on the development environment, which is truly the distinguishing characteristic and that allows us to take that uniquely set, that unique set of integrated engines that I just described for technologies and get leverage on it by building these more industry horizontal vertical solutions, either ourselves or letting our partners build or both or even customers are able to build. Those pieces give us really a long-term durable growth model or a sustainable competitive advantage as long as we continue to see those opportunities and create on top of this platform.

Brian Peterson: Okay, Thanks, and congrats on a strong quarter. So just wanted to follow up on sensible ml. After sitting on some of the presentations at a splash could you see that impacting new logos I get that the adoption curve of that product is that something where you expect a high level of attach rates on new deals or is that something that comes from existing customers that are really embracing the extensibility.

Speaker Change #181: Thanks, guys.

Speaker Change #182: So as I mentioned, a little bit earlier I definitely see it originally we were very very focused on the attach and the up sell im sorry.

Speaker Change #183: <unk> that we're looking for those advanced analytics that we're helping us co develop in partnering with us, but we are seeing it would be an increasingly important message in the in the net new sales cycle largely because customers that are on this digitization theyre getting this journey, they're getting pressure from management teams.

From boards of directors as to how are you going to become more efficient become more advanced and so we're seeing it would be an important part of our overall.

Speaker Change #183: New sales process as well so I am equally optimistic on both and we are seeing in the quarter.

Speaker Change #183: We did see some some purchases at on the upfront of deals without these proof of value or without having to go through.

Speaker Change #183: Yeah.

Speaker Change #183: The proof based projects that we were doing because.

Brian Peterson: Thank you, and our next question comes from the line of Brian Peterson from Raymond James. Your question, please. Thanks. You're great. It's a strong quarter.

Speaker Change #183: Of the success that you saw at Splash.

Speaker Change #183: And the foundation that we're establishing with our current customers.

Tom Shea: So it's wanted to follow up on sensible email after sitting in some of the presentations out of splash. You could see that impacting new logos. You could get the adoption curves of that product. Is that something where you expect a high level of attach rates on new deals, or is that something that comes from existing customers that are really embracing the extensibility? Thanks. So, as I mentioned a little bit earlier, I definitely see it.

Speaker Change #184: Thank you. Our next question comes from the line of Nicole <unk> from Scotia Bank. Your question. Please.

Awesome.

Speaker Change #185: Thanks, guys.

Speaker Change #185: Tom I kind of wanted to circle back to John <unk> question, but maybe asking in a different way.

Nicole: But I wanted to get a sense as to how the commercial opportunities playing out I mean, you guys started.

Speaker Change #187: Commercial focus go to market motion not too long ago, you have had some exciting product and feature announcement that helped commercial customers get up and running quicker. So can you maybe just talk about how the commercial motion has trended.

Tom Shea: Originally, we were very, very focused on the attach and the upsell on certain customers that were looking for those advanced analytics that were helping us co-develop and partnering with us. But we are seeing it be an increasingly important message in the net new sales cycle largely because customers that are on this digitization, they're getting this journey. They're getting pressure from management teams, from board the directors as to how are you going to become more efficient, become more advanced.

Speaker Change #188: Relative to expectations and when you look out over the medium term how big of a factor is commercial to the overall growth algorithm.

Speaker Change #189: Sure. So as we think about it right now we look at the split in the business, we're really looking at it as you know.

Speaker Change #189: Thinking about the future of the company.

Tom Shea: And so we're seeing it be an important part of our overall net new sales process as well. So I'm equally optimistic on both. And we are seeing in the quarter, we did see some purchases on the upfront of deals without these proof of value or without having to go through the proof base projects that we were doing because of the success that you saw at Splash. And the foundation that we're establishing with our current customers.

Speaker Change #189: When you look at our customer base that we have right now.

Speaker Change #189: We're at around this call like let's call. It 500 customers and you'll see us kind of thinking along the lines of some of the other large platform companies ending up in that sort of let's call. It 7500 to 10000 customer range, we really are thinking.

Speaker Change #189: It's early days, but we're thinking about we do have a dedicated sales team, which we've created over.

Speaker Change #189: Over a year ago, and we really are starting to focus on how do we best serve one of the differences between the large enterprise customer in this emerging customer and so I think it's a.

Nick Coleman: Thank you. Our next question comes from the line of Nick Olman from Scotiabank. Your question, please. Awesome. Thanks, guys.

Speaker Change #189: It's a really great opportunity for us to take that and move and move forward with the CPM Express products. So it's really really an important opportunity for us to show up safety expertise and the best the best in class implementations that we've seen because we've done so many large prestigious brands that we're proud of.

Tom Shea: Tom, I kind of wanted to circle back to John the Food Cheese question, but maybe asking it in a different way. But I wanted to get a sense as to how the commercial opportunities playing out. I mean, you guys started a commercial focus, go to market motion, not too long ago. You've had some exciting products and feature announcements that help commercial customers get up and running quicker. So can you maybe just talk about how the commercial motion has trended relative to expectations?

Speaker Change #190: Our team has the right now to share that information and be prescriptive to some of these emerging companies and what I'm. Most excited about there is the fact that we can onboard these customers that are the future.

Growing large companies and they don't have to get off.

Tom Shea: And when you look out over the median term, how big of a factor is commercial to the overall growth algorithm? Thanks. Sure. So as we think about it right now, we look at the split in the business. We're really looking at it as thinking about the future of the company. When you look at our customer base that we have right now, where we're at around this called like, let's call it 1500 customers, and you see us kind of thinking along the line to some of the other large platform companies ending up in that sort of, let's call it early days, what we're thinking about.

Speaker Change #190: I'll have to get off the startup one stream platform trained because if they aspire to go all the way to be fortune. One our software is used at that level and we can communicate with that so we can bring them on deliver value more quickly and then move them all the way along the journey that they're on without changing the software really just giving them a grade.

Speaker Change #190: Experienced in a lot of value in adding and meeting them, where they are through our store based approach or the or the exchange that we talked about.

Speaker Change #190: Okay.

Speaker Change #190: Thank you and our next question comes from the line of Terry Tillman from tourist Securities. Your question. Please.

Terry Tillman: Yes. Thanks.

Tom Shea: We do have a dedicated sales team, which we've graded over a year ago. And we really are starting to focus on, how do we best serve? What are the differences between the large enterprise customer and this emerging customer? And so I think it's a really great opportunity for us to take that and move forward with the CPM Express product. So it's really, really an important opportunity for us to show up, take the expertise and the best, the best in class, implementations that we've seen because we've done so many large prestigious brands that we're proud of.

Terry Tillman: That's for me as well on the IPO and the strong <unk> results I wanted to go back to the replacement opportunity. If we can and I don't know if this is for Tom or bill but.

Maybe you could talk a little bit more on that enterprise side, not the commercial side, but on the enterprise side Youre not know a lot of these fortune 500 accounts, how do you think about the the actual duration of this replacement cycle was it pretty linear every year, where the contract renewals for the legacy vendor or potentially could you see this get tilted to the kind of the front end of.

Speaker Change #191: This replacement cycle because of things like AI because of things like cloud, maybe theres, an ERP migration cycle, just would love to know more about how you think about this curve for the replacement. Thank you.

Tom Shea: Our team has the right now to share that information and be prescriptive to some of these emerging companies. And what I'm most excited about there is the fact that we can onboard these customers that are the future and growing large companies. And they don't have to get off the, they don't have to get off the sort of one stream platform train. Because if they aspire to go all the way to be fortune one, our software is used at that level.

Terry Tillman: Okay.

Speaker Change #192: Sure I'll take that Terry.

The way that I look at it again just to reiterate we feel that we are only 5% penetrated so it's a really big opportunity in terms of timing or what what mechanisms are calling.

Speaker Change #193: These deals to the table are the rollover, there's lots of different influences. It can be it can be anything from an acquisition can trigger it a disposition.

Tom Shea: And we can communicate with that. So we can bring them on, deliver value more quickly and then move them all the way along the journey that they're on without changing the software, really just giving them a great experience and a lot of value and adding and meeting them where they are through our store-based approach or the exchange that we talk about.

Terry Tillman: Thank you.

Speaker Change #193: A technology shift that is tangent like you said it could be an ERP change or so there's lots of different things that triggering a lot of times, we get questions around is at an end of life that is going to accelerate all in all it really is just these companies.

Tom Shea: And our next question comes from the line of Terry Tillman from Tua Securities, your question please. Yeah. Thanks.

Speaker Change #194: There is different cycles that are happening within our company and different priorities and so it's more about they get a long.

Tom Shea: It congrats for me as well on the IPO and the strong 2Q results. Actually, I want to go back to the replacement opportunity if we can. And I don't know if this is for Tom or Bill, but maybe you could talk a little bit more on that enterprise side and not the commercial side, but at the enterprise side. You know, I know a lot of these Fortune 500 accounts. How do you think about the actual duration of this replacement cycle?

Speaker Change #194: Value.

We look at these deals as we're establishing a 10 plus year relationship and these customers that are on financial transformation journey as part of these sort of 10 year relationships with these other vendors and as they come up and they start to look at what do they start to open themselves up to feeling comfortable with the cloud as we mentioned the cloud.

Tom Shea: Is it pretty linear every year where you know the contract renewals for the legacy vendor? Or potentially could you see this get tilted to the kind of the front end of this replacement cycle because of things like AI, because of things like cloud, maybe there's an ERP migration cycle. I just would love to know more about how you think about this curve for the replacement.

Speaker Change #194: For the types of customers that we've been serving especially after the large enterprise a lot of these companies had data centers that we're still at scale that we are still economically viable and are now looking at moving this type these types of workloads to the cloud that's another.

Speaker Change #194: Driver and again transformation Digitization AI they all contribute.

Tom Shea: I'll take that, Terry. The way that I look at it, again, just to reiterate, we feel that we're only 5% penetrated, so it's a really big opportunity. In terms of timing or what mechanisms are calling these deals to the table or the rollover, there's lots of different influences. It can be anything from an acquisition can trigger it, a disposition, a technology shift that is tangent, like you said, it could be an ERP change, or so there's lots of different things that trigger it.

Speaker Change #194: I know I'm not answering theres not a specific thing thats driving it it's more of that we're ready to meet the customer wherever they are at on the journey and whatever that reason is.

Speaker Change #195: Thank you and our next question comes from the line of Alex Zukin from Wolfe Research. Your question. Please.

Alex Zukin: Hey, guys. Thanks for taking the question congrats on your first successful quarter out of the gate.

Alex Zukin: Maybe just.

Alex Zukin: Just maybe tolerable for you.

Tom Shea: A lot of times we get questions around, is it an end of life that's going to accelerate? All in all, it really is just these companies, there's different cycles that are happening within a company and different priorities, and so it's more about they get a long value. We look at these deals as we're establishing a 10 plus year relationship, and these customers that are on financial transformation journey have been part of these sort of 10 year relationships with these other vendors, and as they come up, they start to look at what they start to open themselves up to feeling comfortable with the cloud.

Alex Zukin: You think about the general demand environment that you saw in <unk> the linearity in the quarter.

Speaker Change #196: Maybe just go one layer deeper were there any really interesting cohorts or customer.

Speaker Change #197: <unk> or verticals that you kind of saw that maybe surprised you and given how much.

Speaker Change #196: The IPO.

Speaker Change #198: Obviously splash.

Speaker Change #199: What kind of big <unk>.

Speaker Change #200: Generation events from a funnel perspective anything that youre seeing in your pipeline our top of funnel.

Speaker Change #201: Gives you incremental enthusiasm.

Tom Shea: As we mentioned, the cloud for the types of customers that we've been serving, especially at the large enterprise, a lot of these companies had data centers that were still at scale, that were still economically viable, and are now looking at moving these types of workloads to the cloud. That's another driver, and again, transformation, digitization, AI, they all contribute. I know I'm not answering, there's not a specific thing that's driving it, it's more that we're ready to meet that customer wherever they're at on the journey and whatever that reason is.

Speaker Change #202: Yes, we're really excited about about banking we're excited about.

Speaker Change #202: The growing presence that we have in EMEA in terms of some of these foundational deal that I had already mentioned then again foundational I'm really excited about the way we continue to.

Speaker Change #203: Garner a larger investments from customers when I say larger investments you continue to see this trend of attracting million dollar deals and that really means that people are seeing the value of the platform and so when I think about these opportunities and I think about growing the business and moving forward.

Alex Zoukin: Thank you, and our next question comes from the line of Alex Oopin from Wolf Research.

Speaker Change #203: Overall, the demand environment to me feels what I like to call normal and so when I say normalize just means that we're seeing sales cycles that are.

Tom Shea: Your question, please. Hey guys, thanks for taking the question, congrats on your first successful quarter out of the gate.

Speaker Change #203: Normal level of approvals normal level of contracting expectations. So we're not seeing anything.

Tom Shea: Maybe, just maybe, Tom or Bill, for you, if you think about the general demand environment that you saw in 2Q, the linearity in the quarter, maybe just go one layer deeper, were there any really interesting cohorts or customer NGOs or verticals that you kind of saw that maybe surprised you and given how much the IPO and obviously splash were kind of big generating events from a funnel perspective, anything that you're seeing in your pipeline or top of funnel that gives you incremental enthusiasm. Yeah, we're really excited about banking.

Speaker Change #204: <unk>, there and then generally I would say.

Speaker Change #204: On a global basis.

Speaker Change #204: Both I would say, there's kind of a quality across others, there's pockets of strength and weakness maybe in EMEA, a little more but overall on balance I'd say, it's pretty it's pretty aligned to the U S.

Speaker Change #204: We feel like we're just calibrating the business towards that operating environment.

Speaker Change #204: Okay.

Speaker Change #205: Thank you and our next question comes from the line of Scott Berg from Needham <unk> Company. Your question. Please.

Scott Berg: Hi, everyone nice quarter here.

Scott Berg: Not sure if Tom or Bill wanted to take this but we've seen spending in the office of the CFO be more resilient, although another kind of sectors of our of our software coverage universe recently I guess as you look at your deals in the last quarter or maybe as your pipeline going forward.

Tom Shea: We're excited about the growing presence that we have in India in terms of some of these foundational deals that I had already mentioned. Then again, foundationally, I'm really excited about the way we continue to garner larger investments from customers. When I say larger investments, you continue to see this trend of attracting million-dollar deals, and that really means that people are seeing the value of the platform. When I think about these opportunities and I think about growing the business and moving forward, overall, this demand environment to me feels what I like to call normal.

Speaker Change #206: Is there anything to draw from there in terms of what Youre seeing that kind of drives us enthusiasm for this category right now because your results have been fantastic for a couple of quarters.

Tom Shea: When I say normal, I just mean that we're seeing sales cycles that are normal level of approvals, normal level of contracting expectations. We're not seeing anything anomalous there. Then generally, I would say on a global basis, I would say there's kind of a quality across others. There's pockets of strength and weakness maybe in India a little more, but overall, on balance, I'd say it's pretty aligned to the US. We're just calibrating the business towards that operating environment.

Steve Enders: Thanks, Steve.

Speaker Change #207: Just provide my general context on this.

Speaker Change #208: Again, having spent 10 years in corporate finance and kind of doing this job in understanding the pressures that go onto the opposite the CFO Theres really no reprieve ever and so as we live in these more turbulent macro.

Tom Shea: All right.

Speaker Change #209: There is a constant pressure and I think I think what we've seen over in recent history here with the rapidly changing macro and coming off of a pandemic I think youre now seeing companies believe that it is truly time to make sure that they're modernizing and that they can they can adapt to the current environment. So I think there is an enthusiasm there there is a cut.

Tom Shea: Thank you.

Speaker Change #209: Full of components that go into what we saw which I I think it's important for everyone to understand.

What's good about our business is there is a statutory component to it that statutory component that we have a high burden of proof to deliver our numbers have to be right, but that also creates a moat and creates a continuous neither statutory fuel because you have to do you are you have to report your numbers when they have to be right. So there's always that perpetual need with them.

Bill Coved: And our next question comes from the line that Scott Berg from Need to Make Company. Your question, please. Hi, everyone. Nice quarter here. I'm not sure if Tom or Bill want to take this, but we've seen spending in the offices, the FO be more resilient and hold up better than other sectors of our software coverage universe recently. I guess as you look at your deals in the last quarter, or maybe as you look at the pipeline going forward, is there anything to draw from there in terms of what you're seeing that kind of, I guess, drives this enthusiasm for this category right now because your result's been fantastic for a couple quarters of. Thanks, yeah.

Speaker Change #209: There is also <unk>.

Speaker Change #210: Fueling that CFO has to become strategic partners to the business and so it's no longer acceptable when I was when I was in corporate finance there was a little bit more of a feeling of I was a corporate cost not that I wasn't a strategic partner, but I felt a little bit more like a corporate comp as we used to say that really that much.

Speaker Change #210: <unk> has changed and this idea that making sure that.

Speaker Change #210: CFO can BD.

Tom Shea: I'll just provide my general contact on this and have, again, having spent 10 years in corporate finance and kind of doing this job and understanding the pressures that go onto the office of the CFL, there's really no reprieve ever. And so, as we've lived in these more turbulent macro times, there's a constant pressure. And I think, I think, you know, what we've seen over in recent history here with, you know, the rapidly changing macro and coming off of the pandemic, I think you're not seeing companies believe that it's truly time to make sure that they're modernizing that they can adapt to the current environment.

Speaker Change #210: The curator of this really important information to steer the company forward is really really.

Speaker Change #210: This is critical and I think that's at the heart of it that general context that I've just painted is that.

Speaker Change #210: There is this opportunity. There is this also I know I'm kind of rambling on here, but the other element to this is.

Speaker Change #210: Before finally of the first generation of cloud.

Speaker Change #210: Digital.

Speaker Change #210: Innovation digital transformation for the also the CFO with point solutions.

Right because there wasn't a platform like you had in some of the other areas and then what you are finding as you wake up and just because it's in the cloud doesn't mean that it's more valuable.

Tom Shea: So, I think, you know, there's an enthusiasm there. There's a couple of components that go into what we saw, which I think it's important for everyone to understand. There's what's good about our business is there's a statutory component to it. That statutory component means that we have a high burden of proof to deliver. Our numbers have to be right, but that also creates a mode and creates a continuous need. There's statutory fuel because you have to do your number.

You have to rationalize how these pieces worked together and I think again, you're starting to see this this idea that it's time to invest in the also the CFO with a real platform eliminating redundant work. So that you can truly be a partner of the business.

Brent <unk>: Thank you and our next question comes from the line of Brent <unk> from Piper Sandler Your question. Please.

Tom Shea: You have that perpetual need, but then there's also this feeling that CFL has to become strategic partners to the business. And so, it's no longer acceptable. When I was when I was in corporate finance, there was a little bit more of a feeling of I was a corporate cop, not that I wasn't a strategic partner, but I felt a little bit more like a corporate cop, as we used to say. That really, that motion has changed in this idea that making sure that CFOs can be the curator of this really important information to steer the company forward is really critical.

Brent <unk>: Thank you good afternoon, Bill I know, we're only five weeks removed from the IPO and the Q2 flash release, but could you just talk through the pipeline build over the summer what you saw there and then Tom as a follow up on these triggers to drive.

Tom Tom: To drive replacement and modernization.

Speaker Change #211: How important is cost savings you keep talking about the consolidation in two to six point solutions that you are replacing I'm. Just wondering in this environment is the cost savings driver by moving to one stream going up the priority list I ask because theres very few enterprise software firms growing.

Tom Shea: And I think that's at the heart of it, that general context that I've just painted is that there's this opportunity, there's this also, I know I'm kind of rambling on here, but the other element to this is people are finally the first generation of cloud digitization, digital transformation for the office of the CFO was point solutions, right? Because there wasn't a platform like you had in some of the other areas. And then what you're finding is you wake up and just because it's in the cloud doesn't mean that it's more valuable.

Speaker Change #212: CRP over 40%.

Speaker Change #212: Yes, I'll take the beginning.

Speaker Change #212: Just reiterate a little bit of Toms commentary that we feel like we're in a normal environment.

Speaker Change #214: Our pipeline is building as you would expect given.

Speaker Change #215: Given the guidance that we gave you for the second half of the year, we're really excited about the second half of the year and the teams.

Speaker Change #214: Team's working hard on.

Speaker Change #214: Obviously building pipeline and closing pipeline.

Tom Shea: You have to rationalize how these pieces work together. And I think again, you're starting to see this idea that it's time to invest in the office of the CFO and you can truly be a partner to business.

Tom Shea: Thank you.

Speaker Change #214: I think it is.

Speaker Change #216: B who are at the.

Speaker Change #217: And our original Org meeting, we hired a new CMO about a year ago and Tim has come in and I think he's done a really good job and you've seen some of that show up in our branding and positioning and I think we're I think we feel we're well positioned to execute in the second half of the year.

Bill Coved: And our next question comes from the line of bread bracelet from Piper Sandler. Your question, please. Thank you.

Bill Coved: Good afternoon. Bill, I know only five weeks from the IPO and in the Q2 Flash release, but could you just talk through the pipeline build over the summer what you saw there? And to drive replacements and modernization, how important is cost savings? You keep talking about the consolidation and two to six point solutions that you're replacing. I'm just wondering in this environment, is the cost savings driver by moving to one stream going up the priority list?

Speaker Change #218: And I'll, just kind of follow up with the kind of the cost savings when you think about deals and when I'm on I'm, an ideal we're always selling the value.

Speaker Change #218: Meaning when you're reducing when youre talking about eliminating multiple point solutions you definitely would expect licensing savings, but youre. Also you are also looking for potential in your organization right Youre looking for the opportunity to actually not just get the job done not burn your team out till two in the morning, but to actually be able to delay.

Speaker Change #218: Ever more cycles at a higher quality and at a lower cost. So when we go in our value team is very very.

Speaker Change #218: Conscious of helping the customer understand how we can actually reduce technical debt.

Bill Coved: I ask because there's very few enterprise software firms growing CROPO over 40%. Thanks I'll take the beginning I just reiterate a little bit of Tom's commentary that we feel like we're in a normal environment you know our pipeline is building as you would expect you know given the guidance that we gave you for the second half of the year we're really excited about the second half of the year and the teams you know the teams working hard on obviously building pipeline and closing pipeline I think you know as for those of you who are at the you know at our original org meeting we hired a new CMO about a year ago and and you know teams come in and I think he's done a really good job you know and you've seen some of that show up in our branding and and and positioning and and I think we're I think we feel we're well positioned to execute in the second half of the year great and I'll just kind of follow up with the kind of the cost savings when when you think about deals and when I'm on when I'm on a deal we're always selling the value meaning you know when you're reducing when you're talking about eliminating multiple point solutions you definitely would expect licensing savings but you're also you're also looking for potential in your organization right you're looking for the opportunity to actually not just get the job done not burn your team out till two in the morning but to actually be able to deliver you know more cycles at a higher quality and at a lower cost so when we go in our value team is very very conscious of helping the customer understand you know how we can actually reduce technical debt and deliver deliver the value at a you know deliver to the customer the right economics and and and and we're we're really focused on making sure that that value was understood and the savings are understood thank you and our next question comes from the line of Matt van Vee from BTIG your question please[inaudible] Great question.

Speaker Change #218: And deliver deliver the value add a deliver to the customer the right economics.

Speaker Change #218: And we're really focused on making sure that that value is understood and the savings are understood.

Speaker Change #218: Yes.

Speaker Change #219: Thank you and our next question comes from the line of Matt Vanvliet from <unk>. Your question. Please.

Matt VanVliet: Good afternoon.

Matt VanVliet: Question.

Speaker Change #220: Coming up.

Speaker Change #221: So you mentioned.

Speaker Change #220: Thanks.

Speaker Change #220: Yeah.

Speaker Change #220: Sure.

Speaker Change #220: Okay.

I guess.

Speaker Change #220: How the pipeline looks.

Sure.

Speaker Change #220: Okay.

Speaker Change #220: Several quarters ahead, and then maybe just help us understand what.

Speaker Change #222: Growth might otherwise look like in the third quarter, if you sort of normalize especially of the large contract last year.

Speaker Change #223: I know you mentioned strong subscription growth, but just any other details you can help us with sort of the underlying.

Speaker Change #223: Rentals for the business.

Speaker Change #225: Yes, Matt you're kind of cutting in and out a little bit so I'm going to answer your question as best I heard it I think the first the first half was with respect to public sector.

Speaker Change #226: We have.

Speaker Change #226: A significant and growing public sector.

Speaker Change #226: We're very excited about that as you mentioned Q3 is is an important one for that what we are seeing however in the public sector is whereas a number of years ago. The public sector kind of finance teams work, we're doing on Prem deals, we're now starting to see them.

Speaker Change #226: <unk> SaaS deals and so obviously the Rev rack for that shows up.

Speaker Change #226: Ratably over the term of the contract, whereas historically if you do a term based deal. Then obviously you had a lot of accelerated revenue into Q3, so that's going to be.

Speaker Change #226: Something to consider but we have a great team and I'm very excited about it I would just reiterate in terms of kind of normalization.

Speaker Change #227: Commented in my prepared remarks that we expect subscription revenue growth to continue at more than 35% in Q3 and Thats a number that I'd have you think about for <unk>.

Speaker Change #227: Great question. Thank.

Speaker Change #227: Thank you.

Speaker Change #229: Thank you and our next question.

Speaker Change #229: Comes from the line of Derrick Wood from Cowen Your question. Please.

Derrick Wood: Great. Thanks for taking my question.

Speaker Change #229: I guess for you Bill.

Speaker Change #230: <unk> seen some nice double digit growth in IRR per customer when looking back over the last year and a half are you able to couch how much of that is coming from larger deal sizes, when landing new customer wins and how much of that is execution and upselling or cross selling the base and do you see this algorithm change in March with the introduction.

Speaker Change #230: CPM express or will that kind of takes some time to have more meaningful impact.

Speaker Change #231: Yeah, Great Great question, I would I would reiterate I mean, we have over 80 customers now that are paying us over $1 million. So obviously is as that number grows.

Speaker Change #232: Then that that obviously increases the average size per deal.

Speaker Change #232: Reiterate a little bit what Tom was saying I think CPM expressed is still in its very early days.

Speaker Change #233: We obviously have a significant number of mid market customers already but we really want to accelerate that with.

Tom Tom: With the launch of CPM Express and they want to see that number.

Tom Tom: Kind of accelerate quickly, which would obviously be a bit of a headwind on average size per deal. So look we'll try to we'll try to over time help to communicate with you guys.

Bill Coved: Thank you.

Tom Tom: How each of those different businesses performing but I think at this point, where we're really early days on the CPM expressed in obviously quite excited about the enterprise business that that we've built and are executing I think pretty well.

Derek Wood: And our next question comes from the line of Derek Wood from TD Cowell.

Bill Coved: Your question, please. Great. Thanks for taking my question. I guess for you, Bill, you've been seeing some nice double-digit growth in ARR per customer when looking back over the last year and a half. Are you able to couch? How much of that is coming from larger deal sizes? When landing new customer wins and how much of that is execution and upselling or cross-selling the base? And do you see this algorithm changing much with the introduction of CPM express or will that kind of take some time to have more meaningful impact?

Speaker Change #234: Thank you and our next question comes from the line of Rob Oliver from Baird. Your question. Please.

Rob Oliver: Great. Good afternoon. Thanks for taking my question, Tom just one for you on the solution exchange I think we're about a year and a half I think it was flat 23, where you guys kind of officially rolled it out and you talked about expanding revenue streams and I'd be curious either for metrics you can share or for anecdotes around what you've seen.

Bill Coved: Great question. I would reiterate, I mean, we have over 80 customers now that are paying us over a million dollars. So obviously as that number grows, then that obviously increases the average size per deal. I would reiterate a little bit what Tom was saying. I think CPM express is still and it's very early days. We obviously have a significant number of mid-market customers already. But we really want to accelerate that with the launch of CPM express and we want to see that number accelerate quickly, which would obviously be a bit of a headwind on average size per deal.

Speaker Change #235: Since the launch of solutions exchange in terms of stickiness with customers.

Speaker Change #235: Upside the revenue opportunities of things you guys have seen percolating within the developer base that you Didnt expect that perhaps can product is any thoughts there would be great. Thanks, so much.

Bill Coved: So look, we'll try to over time help to communicate with you guys how each of those different businesses performing. But I think at this point we're really early days on the CPM express and obviously quite excited about the enterprise business that we built and are executing I think pretty well on.

Speaker Change #236: Great Yeah, I'd love to expand on that I think we're now as we introduced.

Bill Coved: Thank you.

Speaker Change #236: To kind of bring everybody on the call up we have our solution exchange, which we've had our marketplace since the beginning of the company, but solution exchange was meant to create.

Speaker Change #236: Broader.

Speaker Change #236: Portfolio of solutions, the horizontal our internally developed <unk> solutions partner solutions as well as what we call open.

Speaker Change #236: We now have over 100 partner related solutions and very notable that we announced that splash was this.

Speaker Change #236: ISP.

Decided to create their next software product on our platform, meaning this was a company that have created a sales performance management solution had actually sold their company had an accident and decided to create their next generation product on the one stream platform because of the relationship to the CFO customer base, that's really really encouraging.

Rob Oliver: And our next question comes from the line, Rob Oliver from Baird. Your question please. Great.

Speaker Change #236: So as we see the that's providing a great prototype for us to learn from as we think about.

Tom Shea: Good afternoon. Thanks for taking my question. Tom, just one for you on the solution exchange. I think we're about a year and a half. I think it was splash 23 where you guys kind of officially rolled it out. And you talked about expanding revenue streams and I'd be curious either for metrics you can share or for anecdotes around what you've seen. Since the launch of solution exchange, you know, in terms of stickiness with customers.

Speaker Change #236: The act of a partner, creating that software as well as the economics and the go to market motions that we see around it and then as again as we've talked about our AI portfolio all of those products flow through the marketplace, where everything next hear us talking about around the principle amount around the other central AI portfolio product based surplus to be core.

Tom Shea: Upside you revenue opportunities of things you guys have seen percolating within the developer base that you didn't expect and perhaps can productize any thoughts there would be great. Thanks so much. Great. Yeah, I'd love to expand on that. I think we're now, you know, as we introduced to kind of bring everybody on the call up, you know, we have our solution exchange which we've had our marketplace since, you know, the beginning of the company, but solution exchange was meant to create, you know, a broader portfolio of solutions.

Speaker Change #236: Zahnow mechanism or the <unk> marketplace. So it's a critical element to our overall expansion strategy and we look to refine that.

Speaker Change #236: It's one of the areas, where you want to make sure that you do it right and that you refine it and then you go at the right pace.

Speaker Change #236: The idea here is we have this platform that has a lot of potential leverage we want to make sure that we go after that in a very thoughtful way and expand.

Tom Shea: The horizontal or internally developed one chain solutions partner solutions as well as what we call open place. We now have over 100 partner related solutions and, you know, very notable that we announced that splash was this, you know, an ISV, you know, decided to create their next software product on our platform, meaning this was a company that had created a sales performance management solution. It had actually sold their company had an accident and decided to create their next generation product on the one stream platform because of the relationship to the CFO customer base.

Speaker Change #236: There is a.

Speaker Change #236: There is an old term, but you talk about.

Speaker Change #236: And race car drivers go slow to go fast be thoughtful and then accelerate into it. So we're really excited about where we're at and I think as you learn more about some of the first class solutions that are in the marketplace you can really see that.

Speaker Change #236: That is what I mean, when I say infinitely extensible about our platform.

Speaker Change #236: Thank you and this does conclude the question and answer session of today's program I'd like to hand, the program back to Andy license for any further remarks.

Andy License: Thanks, so much operator, and thanks, everyone for joining US today, we hope to see you at our upcoming conferences well be attending an extra week. Thanks again.

Tom Shea: That's really, really encouraging. So as we see this, you know, that's providing a great prototype for us to learn from as we think about, you know, the active partner creating that software as well as the economics and the go to market motions that we see around it. You know, and then again, as we talk about our AI portfolio, all those products flow through the marketplace, so everything that you hear us talking about around sensible and now around the other sensible AI portfolio products, they surface through the horizontal mechanism or the one tree marketplace.

Speaker Change #236: Okay.

Thank you, ladies and gentlemen for your participation in today's conference. This does conclude the program you may now disconnect good day.

Tom Shea: So it's a critical element to our overall expansion strategy. And we look to refine that, though, you know, it's one of the areas where you want to make sure that you do it right and that you refine it and then you go at the right pace. And the idea here is we have this platform that has a lot of potential leverage. We want to make sure that we go after that in a very thoughtful way and expand, you know, there's an old term that you talk about in race car driving, go slow to go fast, be thoughtful and then accelerate into it.

Tom Shea: So we're really excited about where we're at and I think as you learn more about some of the first class solutions that are in the marketplace, you can really see that, you know, that is what I mean when I say infinitely extensible about our class.

Operator: Thank you and this does conclude the question and answer session of today's program.

Annie: I'd like to hand the program back to Andy listen for any further remarks. Thanks so much operator and thanks everyone for joining us today. We hope to see you at our upcoming conferences that we'll be attending the next few weeks.

Operator: Thanks again. Thank you ladies and gentlemen for your participation in today's conference.

Operator: This does conclude the program.

Operator: You may now disconnect.

Operator: Good day.