In a recent transaction, KKR & Co. Inc. (NYSE:KKR) disclosed the sale of a significant amount of its holdings in OneStream, Inc. (NASDAQ:OS). The transaction involved the disposal of 5,993,052 shares of Class A Common Stock, generating approximately $191.24 million. The shares were sold at a price of $29.9925 each.
The transaction was part of a broader strategy involving multiple entities related to KKR, including KKR Group Partnership L.P., Kohlberg Kravis Roberts & Co. L.P., and others, all of whom are significant stakeholders in OneStream, Inc. The sale was executed on November 18, 2024, leaving the entities with no remaining shares of the disposed stock.
In other recent news, OneStream Inc. has announced a proposed underwritten public offering of 15 million shares of its Class A common stock. The offering comprises 9 million shares from selling stockholders and nearly 6 million shares from OneStream. The proceeds from OneStream's shares will be used to buy LLC units from KKR Dream Holdings LLC, maintaining the current count of outstanding shares and LLC units post-offering. The offering is being led by Morgan Stanley (NYSE:MS), J.P. Morgan, and KKR.
In recent developments, OneStream has received positive financial assessments from several firms. Piper Sandler maintained an Overweight rating and increased the price target to $37, following OneStream's impressive quarter results that showed a 4% top-line beat and a $1 million increase in the forecast for the fourth quarter. 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. TD Cowen maintained its Buy rating on OneStream, highlighting the company's solid growth trends and potential for further expansion.
OneStream's recent quarter results also revealed a subscription growth rate of 39%, surpassing the estimated 35%, and the company secured another seven-figure contract, indicating potential in artificial intelligence monetization strategies. These developments suggest a positive outlook for OneStream, with various firms expressing confidence in the company's growth trajectory and market position.
InvestingPro Insights
Following KKR's significant sale of OneStream, Inc. (NASDAQ:OS) shares, it's worth examining the company's current financial position. According to InvestingPro data, OneStream's market capitalization stands at $7.07 billion, reflecting its substantial presence in the software industry. The company has demonstrated strong revenue growth, with a 20.69% increase in quarterly revenue as of Q3 2024, indicating robust demand for its products.
However, OneStream's profitability remains a concern. An InvestingPro Tip reveals that the company is not profitable over the last twelve months, with an adjusted operating income of -$271.91 million for the same period. This is further reflected in the negative P/E ratio of -26.38, suggesting that investors are betting on future growth rather than current earnings.
Despite these challenges, there are positive signals. Another InvestingPro Tip notes that six analysts have revised their earnings upwards for the upcoming period, potentially indicating improving financial prospects. Additionally, OneStream holds more cash than debt on its balance sheet, providing financial flexibility in a challenging market.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for OneStream, which could provide valuable insights into the company's future trajectory.
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