Dive Brief:
- Finance software provider OneStream saw its total revenues jump to $132.5 million in its fiscal 2024 fourth quarter, a 29% increase compared with the year-earlier period, the company said Tuesday.
- The results demonstrate the market’s resilience amid various “near-term headwinds,” including uncertainty around the potential economic impact of tariff policies, according to OneStream CEO Tom Shea. The company, which went public last year, offers a cloud-based platform designed to modernize the office of the CFO.
- “We’re still seeing demand … but there are certainly economic headwinds that we hope clear up,” Shea said during a Tuesday earnings call.
Dive Insight:
The news comes as U.S. business leaders see both risks and opportunities in President Donald Trump’s economic policies. A growing area of concern has been Trump’s plan for a trade agenda leaning heavily on the imposition of tariffs.
Eight out of 10 corporate economists forecast that U.S. tariffs will stoke inflation this year, Wolters Kluwer said this week.
A December survey by Duke University’s Fuqua School of Business and the Federal Reserve Banks of Richmond and Atlanta found that CFOs were more optimistic about the economy after the election, but they had concerns about monetary policy, inflation, the political climate and tariffs.
The uncertain environment has impacted OneStream’s business, causing some customers to more closely scrutinize deals, according to Shea.
“We sell, remember, to the CFO who is a pretty sensitive buyer,” he said. “If there’s a growing sense of uncertainty in their own business, we’re probably going to feel it a little bit first.”
Despite posting better-than-expected results for the fourth quarter, OneStream’s guidance for the first quarter missed expectations, causing its stock price to plummet over 20% in premarket trading Wednesday, according to Investing.com. First quarter revenue is projected to range between $130 million and $132 million, slightly below the consensus of $133.6 million.
Meanwhile, J.P. Morgan analysts lowered their rating on OneStream’s shares on Wednesday.
“[O]ur impression is that some uncertainty persists that was not present prior to the end of Q4, and OneStream is taking a more prudent approach to its outlook as a result,” the analysts said in a note to clients.
