Cornerstone OnDemand, Inc. Announces Third Quarter 2011 Financial Results
DEMO
Datos de contacto

Cornerstone OnDemand, Inc. Announces Third Quarter 2011 Financial Results

  • Record Q3 revenue of $20.0 million, a 63% year-over-year increase

  • Record Q3 gross profit of $14.6 million, and gross margins of 73% (500 basis point year-over-year increase)

  • Record Q3 Bookings 1  of $24.0 million, a 47% year-over-year increase

  • Ended quarter with 710 clients and approximately 7.16 million users

SANTA MONICA, Calif. November 7, 2011 – Learning and talent management software provider Cornerstone OnDemand (NASDAQ: CSOD) today announced results for its third quarter ended September 30, 2011.

Revenue for the third quarter of 2011 was $20.0 million, representing a 63% year-over-year increase compared to the same period in 2010 and a 15% increase compared to the second quarter of 2011, after excluding the impact of the non-cash charge related to a common stock warrant in the amount of $2.5 million recorded during the second quarter of 2011.

Bookings1, which the company defines as gross revenue plus change in deferred revenue, was $24.0 million for the third quarter, representing a 47% year-over-year increase.

"Despite the current macro-economic uncertainty, our execution in our core markets has never been better, as evidenced by our year-to-date growth in bookings and new clients.  We remain focused on the success of our clients, as well as the development of new areas of our business.  At the same time, we continue to innovate, working with our clients to refine our organically-developed solution to meet the evolving talent management needs of leading organizations around the world," said Adam Miller, President and CEO.

Gross profit for the third quarter of 2011 was $14.6 million, representing a 5% year-over-year improvement compared to the same period in 2010.  Gross margin for the third quarter of 2011 was 73% compared to 68% in the same period in 2010.  The improvement in gross margin was a result of year-over-year revenue growth of 63% compared to a lower increase in cost of revenue of 38%, reflecting the company's realization of economies of scale in its consulting services and network infrastructure, as it continues to improve its processes for delivering client implementation and support programs.

Cornerstone's loss from operations for the third quarter of 2011 was $3.0 million compared to a loss from operations of $2.4 million for the same period in 2010, reflecting the company's continued investments in scaling its operations.  Operating expenses as a percentage of revenue were 88%, consistent with the same period in 2010.

During the third quarter of 2011, net cash provided by operations was $0.6 million and the company used approximately $0.3 million in unlevered free cash flow.1 Cornerstone ended the third quarter with 710 clients and approximately 7.16 million users, representing 72% and 64% year-over-year growth of the company's client base and users, respectively.

At September 30, 2011, the company's total cash and cash equivalents and marketable securities were $81.4 million.  At September 30, 2011, the company's total accounts receivable was $23.1 million. 

In accordance with Generally Accepted Accounting Principles, or on a "GAAP" basis, Cornerstone's net loss for the third quarter of 2011 was $4.3 million compared to net loss of $22.2 million for the same period in 2010.  GAAP net loss for the third quarter of 2011 was impacted by approximately $0.6 million in expenses associated with a proposed secondary offering, which was withdrawn in early August 2011.  Non-GAAP net loss1 for the third quarter of 2011 was $2.7 million, or $(0.06) per share compared to non-GAAP net loss1 of $2.3 million, or $(0.25) per share, for the same period in 2010.  Non-GAAP results exclude, if applicable for each given period, common stock warrant charges, expenses related to stock-based compensation and related employer-paid payroll taxes, changes in the fair value of preferred stock warrants, accretion related to preferred stock, amortization of debt discount and issuance costs, fees related to the early retirement of debt, and expenses associated with the company's withdrawn secondary offering.

1 Bookings, unlevered free cash flow, non-GAAP net loss and non-GAAP net loss per share are non-GAAP measures.  Please see the discussion in the section "Non-GAAP Financial Measures" and in the reconciliations at the end of the release.

Quarterly Conference Call
Cornerstone OnDemand will host a conference call to discuss its third quarter 2011 results at 2:00 p.m. PST (5:00 p.m. EST) today. A live audio webcast of the conference call, together with detailed financial information, can be accessed through the company's Investor Relations Web site at http://investors.cornerstoneondemand.com/events.cfm. The live call can be accessed by dialing 888-357-3694 (U.S.) or 973-890-8276 (outside the U.S.) and referencing passcode: 2554-3261. A replay of the call will also be available at http://investors.cornerstoneondemand.com/events.cfm or via telephone until 9:00 p.m. PST on November 11, 2011 by dialing 855-859-2056 (U.S.) or 404-537-3406 (outside the U.S.), and referencing passcode: 2554-3261.

About Cornerstone OnDemand
Cornerstone OnDemand is a leading global provider of a comprehensive learning and talent management solution.  We enable organizations to meet the challenges they face in empowering their people and maximizing the productivity of their human capital. Our integrated software-as-a-service (SaaS) solution consists of the Cornerstone Recruiting Cloud*, the Cornerstone Performance Cloud, the Cornerstone Learning Cloud and the Cornerstone Extended Enterprise Cloud. Our clients use our solution to develop employees throughout their careers, engage all employees effectively, improve business execution, cultivate future leaders, and integrate with their external networks of customers, vendors and distributors.  We currently empower approximately 7.16 million users across 179 countries and in 29 languages.  www.csod.com

*Anticipated availability in early 2012.
Note:  Cornerstone® and Cornerstone OnDemand® are registered trademarks of Cornerstone OnDemand Inc. 

Forward-looking Statements 

This release contains forward-looking statements, including statements regarding Cornerstone OnDemand's future financial performance, market growth, the demand for and benefits from the use of Cornerstone OnDemand's solutions, and general business conditions. Any forward-looking statements contained in this press release are based upon Cornerstone OnDemand's historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Cornerstone OnDemand's expectations as of the date of this press announcement. Subsequent events may cause these expectations to change, and Cornerstone OnDemand disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, our ability to attract new clients; the extent to which clients renew their subscriptions for our solution; changes in the proportion of our client base that is comprised of enterprise or mid-sized organizations; our ability to manage our growth, including additional headcount and entry into new geographies; the timing and success of solutions offered by our competitors; unpredictable macro-economic conditions; reductions in information technology spending; the success of our new product and service introductions; a disruption in our hosting network infrastructure; costs and reputational harm that could result from defects in our solution; the success of our strategic relationships with third parties; the loss of any of our key employees; increased demands on our infrastructure and costs associated with operating as a public company; failure to protect our intellectual property; acts of terrorism or other vandalism, war or natural disasters; changes in current tax or accounting rules; and other risk and uncertainties. Further information on potential factors that could affect actual results is included in Cornerstone OnDemand's reports filed with the SEC, including its Form 10-Q filed with the SEC on August 15, 2011.

Non-GAAP Financial Measures
To supplement its consolidated financial statements, which are prepared and presented in accordance with GAAP, Cornerstone OnDemand has provided in this release certain measures that have not been prepared in accordance with GAAP. These non-GAAP financial measures include bookings, unlevered free cash flow, non-GAAP net loss and non-GAAP net loss per share. Cornerstone OnDemand uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Cornerstone OnDemand's ongoing operational performance. Cornerstone OnDemand believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial measures with other companies in Cornerstone OnDemand's industry, many of which present similar non-GAAP financial measures to investors. Non-GAAP net loss and non-GAAP net loss per share exclude common stock warrant charges, expenses related to stock-based compensation and related employer-paid payroll taxes, changes in the fair value of preferred stock warrants, accretion related to preferred stock, amortization of debt discount and issuance costs, fees related to the early retirement of debt, and expenses associated with our withdrawn secondary offering. These amounts are often difficult to predict and often excluded by other companies to help investors understand the operational performance of their business.  Non-GAAP financial measures that the Company uses may be different from measures that other companies may use. 
 

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure. A reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables included as part of this press release.

 

Investor Relations Contact:

Carolyn Bass
P: +1 (415) 445-3232
ir@csod.com

 

Press Contact:

Michelle Haworth
Cornerstone OnDemand
P: +1 (310) 752-0178
mhaworth@csod.com

 

Cornerstone OnDemand, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
(unaudited)

 

Cornerstone OnDemand, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars and shares in thousands, except per share data)
(unaudited)

 

 

Cornerstone OnDemand, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollars in thousands)
(unaudited)

 

Cornerstone OnDemand, Inc.
RECONCILIATIONS OF NET LOSS TO NON-GAAP NET LOSS PER SHARE
(dollars and shares in thousands, except per share amounts)
(unaudited)

 

Cornerstone OnDemand, Inc.
CALCULATION OF BOOKINGS (DEFINED AS GROSS REVENUE PLUS CHANGE IN DEFERRED REVENUE)
(dollars in thousands)
(unaudited)

 

Cornerstone OnDemand, Inc.
RECONCILIATION OF NET CASH USED BY OPERATING ACTIVITIES TO UNLEVERED FREE CASH FLOW
(dollars in thousands)
(unaudited)

 

Cornerstone OnDemand, Inc.
RECONCILIATION OF GROSS MARGIN TO NON-GAAP GROSS MARGIN
(dollars in thousands)
(unaudited)

 

Únete a más de 30+ millones de personas que usan Cornerstone HCM para desarrollar su potencial

Hablemos