OneStream Eyes $6B Valuation in Confidential IPO

KKR-backed OneStream confidentially files for IPO, seeking up to $6 billion valuation, with annual revenue surpassing $450 million.

By Alex P. Chase

5/16, 17:34 EDT
Citigroup, Inc.
JP Morgan Chase & Co.
KKR & Co. Inc.
Morgan Stanley

Key Takeaway

  • KKR-backed OneStream confidentially files for an IPO, seeking a valuation up to $6 billion, with Morgan Stanley, JPMorgan, and Citigroup as underwriters.
  • Since KKR's investment in 2019, OneStream attracted significant investor interest, valuing the company at $6 billion in a 2021 fundraising round.
  • Demonstrating strong financial growth, OneStream's annual recurring revenue hit over $450 million, marking a 34% year-over-year increase.

IPO Filing

KKR & Co.-backed OneStream has confidentially filed for an initial public offering (IPO) with the US Securities and Exchange Commission, signaling a move that could materialize within the next few months. This step marks a significant milestone for the software company, which specializes in tools for chief financial officers and finance teams. The company is reportedly seeking a valuation of up to $6 billion for the IPO, although these terms are subject to change based on market conditions. OneStream is collaborating with notable underwriters including Morgan Stanley, JPMorgan Chase & Co., and Citigroup Inc. for this process.

Investor Relations

Since KKR's initial investment in 2019, OneStream, under the leadership of CEO Tom Shea, has emphasized the importance of partnering with investors who recognize the potential of its platform to disrupt the market. The company has attracted a diverse group of investors over the years, including Tidemark, Partners Fund Capital, and Alkeon Capital Management. Its notable fundraising round in 2021, which involved D1 Capital Partners and Tiger Global, valued the company at $6 billion, underscoring the significant growth and investor confidence in OneStream's market position.

Financial Growth

OneStream has demonstrated robust financial performance, with its annual recurring revenue surpassing $450 million. This represents a year-over-year increase of 34% as of March 31, highlighting the company's strong growth trajectory and the increasing demand for its software solutions. Such financial metrics are crucial for potential investors, as they provide a glimpse into the company's revenue generation capabilities and its scalability in the competitive software market.

Management Quotes

  • Tom Shea, CEO of OneStream:

    "One of the things that was important to me in an investor was finding an investor that truly understands the power of our platform and believes, as we do, that it has the potential to truly disrupt the market."