BIRMINGHAM, Mich. - OneStream, Inc. (Nasdaq: OS) disclosed the launch of a proposed underwritten public offering of 15 million shares of its Class A common stock on Tuesday. The offering includes over 9 million shares from selling stockholders and nearly 6 million shares from OneStream in a synthetic secondary transaction. The underwriters also have a 30-day option to buy an additional 2.25 million shares.
The company will not receive proceeds from the selling stockholders' shares. Instead, OneStream plans to use the proceeds from its shares to buy LLC units from KKR Dream Holdings LLC, maintaining the current count of outstanding shares and LLC units post-offering.
Morgan Stanley (NYSE:MS), J.P. Morgan, and KKR are leading the offering, with several other financial institutions participating as managers and co-managers. The offering is contingent on a registration statement filed with the Securities and Exchange Commission, which is not yet effective.
This announcement follows OneStream's profile as a finance platform provider that unifies financial and operational data, incorporates AI, and aspires to modernize the Office of the CFO. The company boasts over 1,500 customers, including a fraction of the Fortune 500, and a network of implementation and development partners.
The offering's details, including the prospectus, will be available through Morgan Stanley and J.P. Morgan. This press release does not constitute an offer to sell or a solicitation of an offer to buy securities. The sale of these securities will not be lawful in any jurisdiction without registration or qualification under the applicable securities laws of such state or jurisdiction.
The information in this article is based on a press release statement from OneStream, Inc.
In other recent news, OneStream Inc. has seen a series of positive financial assessments from various firms. Piper Sandler maintained an Overweight rating while raising the price target to $37, following OneStream's impressive performance and promising growth prospects. The company's recent quarter results showed a 4% top-line beat and a $1 million increase in the forecast for the fourth quarter. Subscription growth rate hit 39%, surpassing the estimated 35%, and the company secured another seven-figure contract, indicating potential in artificial intelligence monetization strategies.
BMO Capital initiated coverage with an Outperform rating, emphasizing OneStream's potential for market share growth and strong capabilities in data management, consolidation, and artificial intelligence/machine learning. The firm anticipates OneStream to surpass conservative near-term financial estimates, which could positively impact both revenue and earnings. TD Cowen maintained its Buy rating on OneStream, highlighting the company's solid growth trends and potential for further expansion, while Loop Capital reiterated a Buy rating, pointing to the company's reduction in operating losses and the potential for market expansion. These developments suggest a positive outlook for OneStream, with various firms expressing confidence in the company's growth trajectory and market position.
InvestingPro Insights
OneStream's proposed public offering comes at a time when the company is experiencing significant market momentum. According to InvestingPro data, OneStream has seen a strong return over the last three months, with a 25.52% price total return. This positive trend extends to a 27.86% return over the past six months, indicating growing investor confidence.
The company's financial position shows both strengths and challenges. An InvestingPro Tip reveals that OneStream holds more cash than debt on its balance sheet, which could be reassuring for potential investors considering the new share offering. Additionally, the company's liquid assets exceed short-term obligations, suggesting a solid near-term financial footing.
However, it's worth noting that OneStream is not currently profitable, with a negative P/E ratio of -29.35 for the last twelve months as of Q3 2023. Despite this, analysts predict the company will be profitable this year, which could explain the timing of the public offering to capitalize on expected future growth.
The company's revenue for the last twelve months as of Q3 2023 stood at $459.53 million, with a notable quarterly revenue growth of 20.69% in Q3 2023. This growth trajectory aligns with OneStream's expanding customer base and its position as a finance platform provider for large enterprises.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips that could provide deeper insights into OneStream's financial health and market position.
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