Great. Thanks so much, everyone, for being here. My name is Adam Hotchkiss. I cover the emerging software space here at Goldman. Really excited to have Bill Koefoed, CFO of OneStream, with us today. Thanks so much for being here. Yeah, really excited, and thanks, everybody, for being here this morning. Great, and I want to say congratulations on your first quarter as a public company. I know that's a big milestone, and the 500 million of ARR crossing that, obviously another one. You know, I think the first line in your prospectus talks about OneStream empowering the CFO to become a critical driver of business strategy and execution. I guess, for those in the audience that are less familiar with your business, could you just walk us through what that means and what you're trying to build? Yeah. There's, you know, some of the companies that are here at the conference that have done a really nice job becoming the platform for functional leaders. Salesforce is obviously quite a good platform for the office of the CRO. I think Workday has done a nice job being the platform for the office of the CHRO. ServiceNow, obviously, is a great platform for the office of the CIO, but no one's been the platform for the office of the CFO, you know, literally ever. And so our vision is to be the platform for the office of the CFO. We provide a single platform, a single code base, single security, and an infinitely extensible platform that enables the CFO to close, consolidate, plan, report on their business. But as we move into operational areas, really leveraging the CFO as that single source of truth, at the end of the day, it's their numbers that have to be reported to you guys. And so we really feel like we've got a great vision. Our customers—I was at a dinner the other night that had 30 or so CFOs here in San Francisco, and we had a couple in the audience who literally I kind of felt like I should have sponsored the breakfast because they talked about how much they loved our software so much, and that was a nice place to be, and hopefully, we'll have 28 new customers as a result of that breakfast or that dinner. That's great. Really appreciate, excuse me, really appreciate that, and to just talk a little bit about your career experience, you spent time at a number of roles at software companies, HP, BCG, Microsoft. I guess, given your tenure, your expertise in the software space, why was OneStream the place for you to be? I was lucky enough to work for some great companies and obviously, you know, spent 10 years at Microsoft, including running the investor relations function for a little over four years. You know, when I got a call from a recruiter that, you know, the first question was: "How do you feel about Detroit?" We're based in Michigan, and, you know, I don't know that it's first on everybody's destination of work locations, but it was, you know, I said, "Hey, I wanna learn more." Tom and Craig had started. You know, had grown up there and had started their career there. They had built a predecessor company called Upstream that was ultimately sold to Hyperion. They founded OneStream, and as the recruiter told me the story, and then ultimately, obviously, I talked to Tom and Craig and Jeff and Bob. It just, I was like, it was one of these companies that, you know, as you mentioned, I've been at some other companies, and you kinda go there, and you're like: "Wow, this isn't kind of what I was sold when I, you know, when I went and talked to the company." I'm sure we've all probably had experiences like that, but this one, it got better. Literally, as time went on, I was like: Wow, like, what a great opportunity. I feel super fortunate to be along for the ride with Tom and the leadership team and the board. Obviously, I think we talked about this with some of you as we did the roadshow, but we had zero customers paying us over $1 million when I started, and today we have over 80. We were around $40 million of ARR when I started, and today we're over $500 million, as you mentioned. It's just been, you know, a fantastic journey, and I feel really lucky and fortunate to be along for this ride. Okay. No, that's great. Before digging into the business, I just wanted to touch on the IPO process. What was that like for you? What's the temperature in the market, and, you know, when you think about investor feedback, what were some of the key points that you had heard through the process? I was on a panel also. I had a busy week. I was on a panel also this week with a bunch of companies that are thinking about going public, and they asked the same question. I'm like, "It's super scary!" I'm not sure it helped. I'm not sure it helped your banking franchise, but, you know, it is, it is scary. You don't really know, you know, how you all are gonna perceive, perceive us as we go through the process. Obviously, we had lots of meetings over. You know, we did testing the waters before we actually flipped public. You know, that whole process of flipping public, you know, is a scary one, and, you know, 'cause ultimately, you're saying: Hey, we're gonna start this journey. Then you try to figure out what the pricing range is that you're gonna go with. You obviously work really closely with the investment banks. I know some of you, we were talking earlier. We started the process, it was the Monday after former President Trump was shot, and so there was some uncertainty in the market. We were here in San Francisco on the Friday when we couldn't get into our hotel room because the CrowdStrike outage happened. And so we had, you know, we ultimately did get in and had a good night's sleep. But fortunately, we, you know, had a good flight back to Detroit. And then ultimately, when you get down to it, you know, ringing the bell is fun, but it's really that first trade. And everything that you worked for, all the meetings that we had with you, the, you know, looking and seeing, you know, what were the orders, who were the orders from? You know, at what price, obviously, and ultimately, I was on the floor with a trader at Nasdaq, and he was actually over at the bankers. But when that first trade happens, it's just like this emotional exuberance, and you're like, "We're a public company!" And so we're really excited. Obviously, the stock's traded well, you know, since pricing and then, you know, I think it's traded well since then. So, and as to your point, we had a first quarter earnings release just last week. Yeah, no, happy to be through it. Yeah, it's a really good segue to the first quarter. Where should investors be focused? What was most encouraging to you? And I think just to underpin that, it's really hard to grow as fast as you guys are in software in this environment. So what's happening that's allowing you to do that? Let me answer the first part of your question first- Sure. and then the second half. You know, I think we really want to point investors to our subscription revenue growth. You know, we do have some legacy term licenses. Some of those, particularly those that are with the government, are you know, kind of annually recurring term license revenue, just given the nature of you know, the government contracts and the like, so you'll certainly see some of that in Q3. But I think the subscription revenue growth is clearly the you know, the kind of growth engine for us. And I think I pointed that out in the script as well as in our historical results. The second half of your question, remind me what it was. Just how are you able to grow- Oh, how we're growing! ... as fast as you are in this type of environment? It's why I always struggle with two-part questions on earnings calls is like, remind me what the second question was. Look, you know, as I mentioned earlier, you know, there's been a lot of investment in other functional areas of companies. There's, you know, obviously a lot has happened in the, in the office of, you know, sales force automation and, and some of that marketing automation, you know, HR, IT, and there's been some beneficiaries of that. There really hasn't been, it's, you know, a lot of investment in the office of the CFO since kind of pre-Y2K. Oh, you know, Hyperion is a company that hasn't even been a company, Hyperion Software, that for a company that hasn't been an independent company for twenty years. And so, you know, the digital transformation in the office of the CFO, and I know some sell-side analysts have written about it. I mean, it's real, it will happen. I don't think it's gonna happen in, you know, a quarter or a year, but there's still a lot of on-prem software. I think you guys have written about it. It's again a fact, and you know, we think we'll be a beneficiary of that, and you know, that should be a long runway for us. What's been the driver there of the slow-moving office of the CFO versus other areas of businesses? Yeah, I mean, up until recently, CFOs wouldn't put their financials in the cloud. I mean, it's just, you know, for security reasons, for compliance reasons, for anxiety reasons. And so I think we're just getting to the point now where CFOs are comfortable with all those barriers. And you know, you can't run on twenty-year-old software. CFOs are being asked to do more now. They're being asked to help CEOs look around corners. They're being asked to do things around, you know, machine learning and AI, and it's really difficult to do that with, you know, kind of on-prem twenty-year-old software. I mean, it is fun. I talked to the CFO of a... I get part of the fun thing about my job is I get to talk to other CFOs a lot, and I talked to the CFO of a company, and we were talking about, you know, AI and ML and the like, and she's like: "Wait, time out." She's like: "I'm running my planning function on Excel. I'm running my closing consolidation on twenty-year-old Hyperion." She's like: "I can't even think about these kind of new technologies because I'm running on twenty-year-old software. Like, talk to me when I get this other thing done." And so I think that's gonna be the first hurdle for people to get through as, again, as we've been investing in AI and ML, as you know. And so, we'll get there. Some people are further along, but we'll get there, I think, at some point with everybody. Okay. Let's take a step back, talk about the platform a bit more in detail. You obviously tied together financial consolidation, close, planning, analytics, and then you have core data integration services, which include AI, like you said. Why is it so important for a customer, for all of these services to be together in one platform? The short answer is, it's a single source of truth. I mean, I could stop there and say, short answer is, it's a single source of truth, but that matters. You know, as a CFO, you've got, you know, a bunch of different areas of the business that you're trying to, you know, manage or look after. Even within your own function, you want your controller and your head of FP&A to have the same information. If you're using different tools, then you're gonna have... Candidly, some of the planning tools that are out there, you have to if you're a complicated business and you wanna plan, you have to consolidate your plan. Otherwise, you're just gonna have a bunch of, like, unconsolidated plans, and you're gonna have to go through a consolidation effort, or your plan's not gonna match your actuals. And so you're gonna spend a lot of time trying to figure out, like: How do my actuals actually interact with my plan? And if you're trying to struggle with that, then you're, you know, then you're struggling with basics. And then, as you start to think across other areas of the business, and you want, as a CFO, you want your, you know, your, your revenue plan, your sales plan to, to match in with your corporate plan, which kind of seems logical, you want that to be one single source of truth. And so, as you think about, you know... We're very focused on the CFO being that-... source of truth, as I mentioned, because that ultimately ends up being the numbers that get reported to Wall Street. And we are the only, literally the only platform that has all those things mapped into one single, as you said, one single security, one single data standard, one single platform that can extend out into other areas of the business as well. Right. And when you look at the platform and where it stands today, what you offer, is there anything your customers are asking for that you don't currently have? How do you think about just the optionality you have to broaden the platform over time beyond where you are? Yeah, no, back to my dinner a couple of nights ago, the CFO of, you know, a large, financial services institution, even while we were in the dinner, she was like: "I want to do this, and I want to do that!" And, one of the most interesting things is that we have a user conference that is annually in May, and our customers present. We do a keynote, and we, you know, we do a couple workshops, but for the most part, it's our customers presenting on how they use OneStream. And other customers go to see how, you know, their peers or other OneStream customers are using our software, and it's consistent and constant that people want to use OneStream to do everything in their area, and so there's a lot of demand. As I mentioned earlier, because we are that single platform, we have partners that are writing software in our software. Again, another really important feature of OneStream is that partners can write software on OneStream. And then one of the most exciting areas where we're evolving is having ISVs write software in our software. So we announced in May a company called Infinity SPM is writing a sales performance management or has written a sales performance management application on OneStream. And so that continues that journey, as I was talking about, of having one platform, one data standard. You'll have. They'll allow you to do territory planning, they'll allow you to do all your revenue planning, they'll allow you to do commissions. So for companies that were using Captivate IQ, you won't need to use that. You can use OneStream to do your commissions, and you know, we think that's just the journey of how extensible that we think OneStream can be. Yeah, and what does your typical customer look like? You know, it's hard- Is there a typical customer? It's hard to say. Yeah. You know, we tend to. You know, we have a, we have a large legacy number of customers that have come in to OneStream. People that were using Hyperion, obviously, which is, which is the, you know, history of, of our company. Number of people, that's about maybe two-thirds, a little under two-thirds of our customer base, he was using some form of legacy. They were using other tools as well. You know, certainly always Excel, but, other tools. But we're finding a lot on the commercial side of somebody that candidly wasn't using, you know, they were just using Excel, or they were using a point solution. You know, our average customer size is generally, you know, has a billion, at least $1 billion in revenue. Not always, but, you know, 'cause we have a commercial and we launched a commercial business for customers that are under $1 billion, a little over a year ago. So we certainly think that's a great target market for us. But, you know, for the most part, you know, people who have complicated businesses, you know, are really our sweet spot. How do you think about the enterprise opportunity versus going down market? You know, given there are different levels of complexity, there are different selling motions, obviously, for you guys in those two different areas. What does the resource allocation look like? Yeah. How good do you feel about those two different opportunities? I mean, we feel great. You know, on the enterprise side, our just as a reminder, our first customer was a multibillion- dollar manufacturer in Michigan, that was a public company that was using multiple different ERP systems. When you build your company for one of the most complicated customers in America, you can solve, you know, most other issues. And so that was our first. It took a year to implement that company. In year two, we had five more customers, and then obviously, we've expanded from there. We've done the same thing in machine learning, by the way, is we've started with complicated customers. We've done proof of value. I think for those of you who are on the roadshow, you know, we now have, you know, the international business for one of the largest retailers, and they're doing over $100 billion of planning using our machine learning, but that's just kinda how you should think about OneStream evolving, is, you know, one customer success at a time. To get back to the commercial side of our business, our software, the mid-market customers really want to use our software. The barrier or one of the hard parts of that for them was the implementation cost, not really the software cost. And so we kinda went back and thought about it and said, "How do we basically kind of build in best practices into our software so that they can implement faster?" They're more interested in learning those best practices, as opposed to having OneStream kind of map into their existing processes. And a little bit for those of you who've been around for a long time, it was a little bit of the, you know, kinda R/3 philosophy back in kind of pre-Y2K, as I mentioned, 'cause it was a lot of reengineering for their software instead of configuring software for your business processes. But with CPM Express, what we've done is really shortened the implementation time, shortened the implementation cost. We refer to it as CPM Express, and we're really, you know, for the viewer, again, who we talked to in the roadshow. Tom's particularly bullish about the opportunity in CPM Express. You know, we're still in the early days on that, but it's, you know, it's great software matched with a bit of an easier implementation process. Okay, great. And what does the typical customer life cycle look like? What are you landing with any one typical solution, or is it a bit all over the place? And then, you know, from an expansion motion perspective, you know, how does that look? As I mentioned, on the legacy side, there's, you know, call it twenty thousand companies that are still using some legacy product. Sure. whether it's Hyperion, whether it's BusinessO bjects, which of course, Business Objects is Cartesis and, and OutlookSoft. So there's a big replacement opportunity out there. As I mentioned, it's not gonna happen, you know, in a quarter or two, but it will happen over time. Those tend to be more comprehensive, bigger projects. You've got twelve. You know, Hyperion was twelve different, you know, kind of modules, taking all that, you know, taking Essbase and taking all that, and then migrating it on to OneStream, it tends to be a bigger project. But then back in the-- to your point, on the commercial side, we've got companies that'll, you know, buy us just to do planning, or they'll buy us, in some cases, just to do close or consolidation. So that can be a little bit more of a, you know, kind of either/or, and, you know, kind of simpler, more straightforward, and, more likely planning than closing consolidation in that segment. But again, we can do both. Okay. And I know we've talked about risk aversion in the office of the CFO, and when you pair that with something like AI, I think a lot of people wonder: how much can you really do from an AI perspective that's going to be adopted in the office of the CFO, given so many people are on that- Yeah - Gen- one data piece of software? So what's the strategy there, and how do you think about how you can add value? As I mentioned, our first product in that area, and we've been investing in this for seven years, is really what we call Sensible Machine Learning. And what Sensible Machine Learning does is it helps companies do a better job on demand forecasting. And so it maps in brilliantly with OneStream. You basically do your demand forecast, leveraging Sensible Machine Learning. It's a usage-based, target-based software that then creates your demand forecast. One of the things that that's just a core principle of OneStream is just the auditability and the transparency of our software. There's a word that I was struggling with, but I'll remember it. But just the openness of our software. So somebody... Transparency. The you know, giving that ability to our customers so that they actually can see what's driving their demand forecast is a really big deal, and that's part of the success that we have, 'cause nobody-- there's no CFO that's gonna sit there and go like, "you know, like, I'm gonna push a button and you know, here's what my demand forecast looks like." The results of our Sensible Machine Learning have actually been quite compelling. We had to do what we call Proof of Value for our customers before they bought. So it wasn't, "Hey, I'm gonna buy, and then I'm gonna use it, and then I'm gonna decide whether I like it or not." We basically had to go in for all of our early customers to go do these proof of values, and the results that we were seeing were actually really quite compelling. You know, an amazing ROI. You're a multi-billion dollar company, and you're getting 15% better demand forecast. You know, that's real money. You're either not investing in inventory that's either perishable, which, you know, is obviously worthless if you can't sell it or, you know, have to carry the capital costs if you end up being in an industry where you've created that supply and you can't sell it, or vice versa. You can meet somebody's demand if you have a better demand forecast. And so the results have been really good. And you know, we've had some companies up on stage. We've had Polaris and you know, we had Walmart at our last one. We had Stake Center Locating. And so some good big companies that have talked about how they're getting value out of our machine learning. So that translates next into the kind of more LLM side. You know, machine learning is kind of more quantitative, LLM obviously being you know, by definition, large language. And so we've made some investments in those areas. We've talked about this at our Splash User Conference, but it's early days there. But one of the things that we think we'll be able to tap into is the financials of a business are really the crown jewels. You're not gonna wanna open your crown jewels to you know, an open environment where you're sharing data out or you have a risk of security. And so we've got all the security, as we talked about with the platform, we've got all the security built into our platform, and so it's being able to take the large language models, leveraging that with with our software. You know, asking questions like, "Hey, show me marketing spend against revenue by geography for the last four years." I mean, obviously, you can do that with a twenty-two-year-old in an Excel model, but being able to do that quickly and efficiently. Scenarios like that we think are going to be pretty compelling. Yeah, and I wanted to touch on the OneStream Solution Exchange, right? Because I think it's really interesting. We see a lot of companies leaning into the external developer community to bring value for customers. How do you think that plays into the office of the CFO? I know you have some internally developed stuff in there as well, but how do you think about those two things? One of the things that's exciting about the IPO is how many people have reached out and said that they wanna write software on our software. And I think, you know, there's lots of different ways to invest in that. I think from an M&A perspective, to the extent that we do M&A, I think it'll look a bit like ServiceNow's. They've been really thoughtful on, you know, if they do M&A, about re-platforming it onto their single platform. We're one platform. You know, Tom always refers to it and says, "Well, we'd have to change our name. We'd have to be TwoStream if we didn't have one platform." And so you'll see to the extent that we do, you know, that we make investments or we do M&A, we'll re-platform it onto our platform and build it in the Solution Exchange, as you mentioned. But we're really excited. People are coming to us and asking. Customers are asking, partners are asking, ISVs are asking, and I think you'll see the Solution Exchange be a good driver for us to really build the ecosystem. Yeah, got it. That's great. And I just wanted to touch on competition, right? Obviously, if you're running a platform with multiple different solutions, you're going to run into, you know, best-in-breed solutions across these different subsegments. So how do you think about who your true competition is, and, you know, how does that look in the RFP process? You know, the company that we compete against, you know, kind of by far the most is Oracle. They have the biggest installed base. You know, Hyperion, I think, had 60% share at their peak, and so for sure, they are our biggest competition. But to your point, they don't have a single platform. They don't have, they don't have a Solution Exchange. All the things that we've been talking about, they don't have. And, you know, they have, you know, obviously a great ERP business, and obviously, they've invested a lot in OCI, but we don't-- we feel like we've got a much better product for the office of the CFO, and we're going to continue to build on that. Great. I wanted to touch on just the broader question of growth versus profitability. Obviously, you've been growing quite well. How should we think about working towards break-even profitability and what the longer term mix between those two dynamics looks like? Yeah. I mean, I gave some long-term guidance- Yeah ... during the roadshow. So I think over time, you should think about, you know, kind of 80%, you know, ish gross margins, in sales and marketing, in the, you call it 30-35% of revenue. These are all of revenue. Sales and marketing at 30-35%, R&D in the, you know, kind of high teens, G&A, certainly under 10, and so you should expect, you know, overall, margins kind of in the north of, you know, 20%, you know, kind of or better. Look, we think on a growth perspective, you know, obviously, growth is really where we see so much opportunity, not just because it's good financially, but because it serves customer problems and builds the long-term, you know, the long-term viability and excitement for the business. So we think that we can continue to grow north of 20%, at least for the medium term, hopefully for the long- term. You know, we launched 12 products at Splash this year. We've talked about a number of those. There are some other ones that we haven't talked about yet, but you know, we're gonna continue to invest to grow this business as fast as we can. Yeah. And I guess, where do you see the office of the CFO more broadly at a high level going? I think there's been, you know, shifting ways people think about this between best in breed, invest in suite, and different areas folks are investing in across planning and consolidation. Are there any- is there any one product or any set of products that you think are going to be the focal point over the next number of years? And where do you think OneStream fits into that broader narrative? You know, as I mentioned, I think there's a huge opportunity in the office of the CFO, predominantly because there hasn't been that investment- Yeah ... literally in 20 years, and I look, I hope a few years from now, we have 600 people in the grand ballroom like Jensen had this morning, but I think the opportunity is huge and, you know, there's some great companies that have built platforms for other functional leaders, and I think the office of CFO is at least as big as at least one or two of those. Yeah. A bit of a technical question, just on the license to SaaS transition. What's the impact to revenue from that transition? And ultimately, what should the mix of the business look like, SaaS versus license? Are we still going to have some licensed business in the, over the long- term, a small portion of the business, or is it fully gonna be switched over? Over the long- term, we'll have zero. Yeah. Over the medium term, we may have a little. Over the short- term, you know, we're working hard to convert people to SaaS. You know, the government, they may be a bit of a laggard in terms of the transition process. We are actually making good progress there, certainly on signing new deals with them. Again, back to our earlier conversation about the office of the CFO, but they have been, you know, a little bit more reluctant to move to SaaS than, you know, some of the other, you know, kind of entities or customers. But we'll get there. And like I mentioned, I would focus on our subscription revenue more than anything, and subscription revenue growth and, you know, we'll get a little bit of a tailwind from conversion. But I don't. We're using a bit more of a carrot than a stick approach, because we want people to feel like there's value in moving to SaaS, as opposed to, like, you know, forcing them to do it. Got it. And, we've alluded to the stickiness of the product and the platform, but how do you think about pricing power in the long- term in the office of the CFO? You know, we've been less aggressive than some of the other software companies that are out there in terms of raising prices aggressively. I'm on a lot of CFO chats, and I'd say some of those companies aren't loved by the CFO. We can start naming names, offline. But, you know, we feel like we've got great software. We feel like we wanna be able to offer people great value for the software that they use. You know, we have typical kind of CPI price increases, but I don't think you're ever gonna see us, you know, kind of be, you know, "Hey, just because it would be hard to get off, we're, you know, we're gonna raise prices a lot." That's just not our culture. Yep. Got it. And you announced an acquisition of a company, DataSense. How should investors think about how that fits in? DataSense is really the foundation for our Sensible Machine Learning- Yeah. And just do a little bit of a commercial for those guys. They grew out of the University of Michigan. They're, as probably a lot of you know, like, Michigan is a great university, but a lot of people go blue. But a lot of people, like, go to Michigan, and they leave. They either come here to the Bay Area, or they go to New York, and so it's nice to see, you know, some folks that are graduating from Michigan that are, you know, staying in Southeastern Michigan area and building a great software company. And I think we had thirty or so of them at the time that we made the acquisition. We're gonna continue to invest and grow in the team, and we've got a lot of excitement and people that, you know, wanna be part of us. You know, hopefully, we'll be able to recruit more folks from that university. Obviously, we recruit everywhere, but that's been an area where, you know, people have historically left the state, unfortunately. Got it. That's great. Just to close out here, I know we only have a couple of minutes, but we've talked about AI, we've talked about the platform, we've talked about all of the number of products you have. When you look out over the next five to ten years, what gets you the most excited about OneStream? I don't know if it's one thing. Yeah. I mean, it's really like kind of what's your favorite child, right? I think we have a huge legacy business, you know, to go after. I'm really excited about the Solution Exchange. I'm really excited about machine learning. You know, if I had to kind of put it in kind of three, those three buckets, I think that there's, you know, that there's, you know. I think we have lots of growth engines, but those are kind of the foundations for the growth engines that I think we'll tap into. Okay. Bill, thanks so much for being with us today. Yeah. Thank you. Thank you. Thanks, guys.