OneStream Software LLC, a company that develops applications for accounting departments, today filed to list its shares on the Nasdaq stock exchange.

The initial public offering will make 24.5 million shares available for investors at $17 to $19 apiece. OneStream plans to sell 18.1 million shares, while the rest is set to come from its existing shareholders. If the IPO reaches the high end of the target price range, it will raise $465.5 million while valuing the software maker at $4.4 billion.

Birmingham, Michigan-based OneStream sells a cloud platform that corporate finance teams use to carry out their day-to-day work. The software provides features that speed up common accounting tasks such as reconciliation, the process of checking ledger items for accuracy issues. OneStream also provides analytics features that enable finance teams to simulate the impact of future business moves on the bottom line.

One of the platform’s main selling points is that it promises to make companies’ financial records easier to manage. OneStream can consolidate accounting-related data from spreadsheets, customer relationship management platforms and other sources into a centralized repository for easier maintenance. The company is promising to deliver an up to 80% reduction in data management costs.

The company has deployed more than 90 applications on top of its core data features. Some are the fruit of its internal development efforts, while others were created by its partners. The applications extend the platform’s core feature set to additional use cases such as speeding up financial data entry.

OneStream has more than 1,400 customers, including UPS Inc., Toyota Motor Corp. and other large enterprises. That installed base produced $375 million in revenue for the company last year, up from $279 million in 2022. OneStream also moved closer toward profitability in that time frame: the company narrowed its annual loss from $65.5 million in 2022 to $28.9 million last year. 

The company’s IPO filing divulged that it plans to make “substantial investments in research and development” to maintain its revenue growth. It stated that artificial intelligence will be a particular focus of that engineering push.

A few months ago, OneStream acquired a company called DataSense for $7.7 million. The software maker said the deal is intended to support “our development of AI-enabled solutions.” OneStream already offers several AI features as part of its platform, including a tool called Sensible ML that can help finance teams predict future events such as changes in customer demand.

In its IPO filing, the company presented several arguments for why investors should buy shares. It said it has “significant opportunity to grow our international business” because only 30% of its revenue came from outside the U.S. in 2023. OneStream believes that expanding its partner ecosystem would also create opportunities to boost revenue.

The IPO is set to value the company at up to $4.4 billion. That’s lower than the $6 billion valuation it received in its most recent funding round three years ago, but would still represent a major exit for majority shareholder KKR. The investment firm bought its OneStream stake in 2019 at a $1 billion valuation.

Morgan Stanley, JPMorgan Chase & Co. and KKR’s capital markets unit will lead the offering. T. Rowe Price Investment Management Inc. has already expressed interest in buying up to 15% of the shares that will be sold through the IPO. After the public offering, OneStream shares will start trading on the Nasdaq under the ticker symbol “OS.”

Photo: OneStream