How are energy investors positioned?
On Friday, Citi analyst Steven Enders updated the financial outlook for OneStream Inc. (NASDAQ:OS), increasing the price target to $27.00 from the previous $24.00 while maintaining a Neutral rating on the stock. Currently trading at $24.37, the stock sits within a broader analyst target range of $23-$40. According to InvestingPro analysis, OneStream is currently trading slightly above its Fair Value. The adjustment follows OneStream’s first-quarter performance, which surpassed expectations with a revenue beat of 3.9%, an improvement over the 3.4% beat in the previous quarter.
OneStream’s subscription revenue exceeded Citi’s estimates by $5.4 million, and the company also reported a $13.5 million billings beat. The company’s impressive revenue growth of 26.83% and strong gross profit margin of 63.35% underscore its operational efficiency. This billing success translated into a year-over-year total trailing twelve months (TTM) billings growth of 24%, representing a slight acceleration from the 23% annual recurring revenue (ARR) growth reported in the fourth quarter of 2024. Notable areas of growth included the Sensible ML and Commercial sectors, both experiencing a 50% increase year-over-year, and international revenue, which saw a 40% rise.
Despite the positive results and some beneficial foreign exchange tailwinds, OneStream opted to maintain its full-year 2025 revenue guidance. The company’s decision aims to incorporate a degree of conservatism due to uncertainties related to DOGE/tariff matters. While currently unprofitable, InvestingPro data shows analysts expect profitability this year, with projected earnings per share of $0.08. Get access to 7 more exclusive ProTips and comprehensive financial analysis in the Pro Research Report, available to subscribers. Citi’s analysis suggests potential for incremental upside, driven by OneStream’s strategic focus on go-to-market initiatives for Sensible ML and CPM Express, which could enhance the demand environment.
The analyst’s commentary highlighted the company’s solid performance but also pointed out the balanced risk/reward profile, noting that while there is potential for growth, it is tempered by the need for a cautious approach given the current economic uncertainties. The maintained Neutral rating reflects this balance, suggesting that while the company is performing well, there are factors that could impact its future financial trajectory.
In other recent news, OneStream Inc. reported a 24% increase in total revenue for the first quarter of 2025, reaching $136 million, with subscription revenue growing by 31% to $125 million. The company met market expectations with earnings per share (EPS) of $0.04, while slightly exceeding revenue forecasts. Despite these positive financial results, OneStream’s stock experienced a decline in after-hours trading. The company ended the quarter with $594 million in cash and reiterated its revenue growth guidance of 20% for the full year 2025. Analysts have taken note of OneStream’s performance, with some expressing interest in the company’s AI capabilities during the earnings call. The company highlighted its strong sales pipeline and the importance of AI in customer conversations. OneStream also launched new products, including ESG reporting and planning solutions, which were introduced to the market during the quarter.
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