Investing.com -- OneStream (NASDAQ: OS) reported better-than-expected results for the fourth quarter of fiscal 2024, but its guidance missed expectations, sending its shares tumbling over 20% in premarket trading Wednesday.

The application software maker posted Q4 earnings per share (EPS) of $0.07, topping the consensus estimate of $0.02. Revenue came in at $132.5 million, also ahead of the $128.1 million expected by analysts. 

"Capping a year of incredible innovation and solid execution, we posted 35% year-over-year subscription revenue growth in the fourth quarter, and were free cash flow positive and non-GAAP profitable," said Tom Shea, CEO of OneStream.

"In fact, 2024 was one of the most transformative years in our history, with the introduction of 15 new innovations, highlighted by our growing Finance AI portfolio. We're excited to bring new products to market in 2025, paving the way for OneStream to become the operating system for modern Finance."

For the first quarter of 2025, the company expects a loss per share of between $0.04 and $0.02, missing the EPS of $0.01 expected by analysts.

Revenue is projected to range between $130 million and $132 million, slightly below the consensus of $133.6 million.

For the full year 2025, OneStream forecasts EPS between $0.01 and $0.09, short of the analyst projection of $0.12, while revenue is expected to be between $583 million and $587 million, compared with the consensus of $583.4 million.

Following the report, JPMorgan analyst Mark Murphy downgraded OneStream from Overweight to Neutral, and trimmed the price target to $26 from $30.

"Our view of OneStream as a high-quality business with several admirable attributes remains, including its high gross retention, organic platform, and ability to displace point products, and these factors should endure for the longer term," the analyst said.

"However, in recent weeks we have published cautious data points relating to OneStream, and its Q4 results provide confirmation of deal slippage, which causes us to think the stock may remain range-bound in the $20s until some overhangs can clear up."

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