People development solution
provider Cornerstone OnDemand, Inc.
(NASDAQ: CSOD) today announced results1 for its first quarter ended
March 31, 2020. The Company has provided supplemental financial
information located on its Investor Relations website, including an
accompanying featured presentation, at http://investors.cornerstoneondemand.com.
First Quarter 2020 Results:
- Revenue for the first quarter of 2020 was $150.1 million
compared to a guided range of $147.0 million to $150.0 million.
This represents a 7.2% increase compared to the same period of the
prior year. Revenue growth on a constant currency basis was
7.8%.
- Subscription revenue for the first quarter of 2020 was $144.4
million compared to a guided range of $143.0 million to $145.0
million. This represents a 10.0% increase compared to the same
period of the prior year. Subscription revenue growth on a constant
currency basis was 10.7%.
- Operating loss for the first quarter of 2020 was $2.7 million,
yielding a margin of (1.8)%, compared to operating income of $1.2
million and margin of 0.9% in the same period of the prior
year.
- Non-GAAP operating income for the first quarter of 2020 was
$24.9 million, yielding a margin of 16.6%, compared to $19.6
million and margin of 14.0% in the same period of the prior
year.
- Net loss for the first quarter of 2020 was $13.8 million, or
$(0.22) diluted net income per share, compared to $3.5 million and
$(0.06) diluted net loss per share in the same period of the prior
year.
- Non-GAAP net income for the first quarter of 2020 was $15.0
million, or a $0.23 diluted net income per share, compared to $15.9
million and $0.25 diluted net income per share in the same period
of the prior year.
- Unlevered free cash flow for the first quarter of 2020 was $6.3
million, yielding a margin of 4.2%, compared to $4.3 million,
yielding a margin of 3.1%, in the same period of the prior
year.
"Our combination with Saba is a significant milestone for
Cornerstone and, more importantly, for our expanded community of
clients around the world. With our shared passion for people
development and our combined depth of expertise, we expect to
accelerate product innovation and help tens of millions of people
develop new skills to navigate the future,” said Adam Miller,
founder and Chief Executive Officer of Cornerstone. "Although we
are definitely not immune to the impact of COVID-19, we believe
that our combined scale with approximately 7,000 customers and over
75 million users, along with the significant cash flow generation
capabilities that our synergistic model provides, will enable us to
drive meaningful shareholder value over time."
Recent Highlights:
- In response to the Coronavirus pandemic, the Company created
"Cornerstone Cares", a free public learning portal with playlists
for COVID-19 Health and Safety, Stress Management, and Work From
Home.
- On April 22, 2020, the Company finalized its acquisition of
Saba Software, Inc., a global leader in talent experience
solutions, for an aggregate purchase price of approximately $1.295
billion, consisting of $1.262 billion in cash and 1,110,352 shares
of common stock of the Company.
“Our first quarter was progressing well until the COVID-19
pandemic headwinds began to slow new sales at the end of March. To
offset the impact of these headwinds, we have been able to augment
and accelerate the synergies from the Saba acquisition as our
integration progresses ahead of plan. We now expect to realize $50
million in run-rate synergies as we exit 2020, as compared to our
prior guidance of $35 million over twenty-four months,” said Brian
Swartz, Cornerstone’s Chief Financial Officer. “We have also spent
considerable time analyzing our liquidity position under various
scenarios given the current state of global economic uncertainty,
and even under extreme scenarios, such as assuming no new sales
through the end of 2021, we still expect to increase our cash
balances through the end of 2021. This gives us a high level of
confidence in our ability to weather this storm.”
1
Financial measures presented on a constant
currency basis, non-GAAP operating income, non-GAAP operating
income margin, non-GAAP net income, non-GAAP diluted net income per
share, unlevered free cash flow, and unlevered free cash flow
margin are non-GAAP financial measures. Please see the discussion
in the section titled “Non-GAAP Financial Measures” and the
reconciliations of each non-GAAP financial measure to its most
comparable GAAP financial measure at the end of this press
release.
Quarterly Conference Call
Cornerstone will host a conference call to discuss its first
quarter 2020 results at 2:00 p.m. PT (5:00 p.m. ET) today. A live
audio webcast of the conference call, together with detailed
financial information, can be accessed through the Company’s
Investor Relations website at http://investors.cornerstoneondemand.com. The live
call can be accessed by dialing (877) 445-4619 (US) or (484)
653-6763 (outside the US) and referencing passcode: 4879143. A
replay of the call will also be available at http://investors.cornerstoneondemand.com/investors/news-and-events/events/default.aspx
or via telephone until 6:00 p.m. PT (9:00 p.m. ET) on May 14, 2020
by dialing (855) 859-2056 (US) or (404) 537-3406 (outside the US),
and referencing passcode: 4879143.
Featured Presentation
An accompanying featured presentation will be available at
https://investors.cornerstoneondemand.com/investors/overview/default.aspx.
About Cornerstone
Cornerstone is a premier global people development company. We
believe people can achieve anything when they have the right
development and growth opportunities. We offer organizations the
technology, content, expertise, and specialized focus to help them
realize the potential of their people. Featuring comprehensive
recruiting, personalized learning, modern training content,
development-driven performance management, and holistic employee
data management and insights, Cornerstone’s people development
solutions are used by approximately 7,000 customers of all sizes,
spanning more than 75 million users across over 180 countries and
more than 50 languages. Learn more at www.cornerstoneondemand.com.
Note: Cornerstone® and Cornerstone OnDemand® are registered
trademarks of Cornerstone OnDemand, Inc.
Forward-looking Statements
This press release and the quarterly conference call referenced
above contain forward-looking statements, including, but not
limited to, statements regarding the expected performance of our
business, our future financial and operating performance, including
our GAAP and non-GAAP guidance, strategy, long-term growth and
overall future prospects, the demand for our offerings, our
competitive position, general business conditions, the integration
of Saba into our business, anticipated synergies from our
acquisition of Saba, and our expectations regarding certain
financial measures including subscription revenue, capital
expenditures, unlevered free cash flow, recurring revenue growth
and operating margins. Any forward-looking statements contained in
this press release or the quarterly conference call are based upon
our historical performance and our current plans, estimates, and
expectations and are not a representation that such plans,
estimates, or expectations will be achieved. These forward-looking
statements represent our expectations as of the date of this press
release. Subsequent events may cause these expectations to change,
and we disclaim any obligation to update the forward-looking
statements in the future, except as required by law. These
forward-looking statements are subject to known and unknown risks
and uncertainties that may cause actual results to differ
materially from our current expectations. Important factors that
could cause actual results to differ materially from those
anticipated in our forward-looking statements include, but are not
limited to, our ability to attract new customers; the extent to
which customers renew their subscriptions for our solutions; the
timing of when consulting services are delivered to new and
existing customers by our services organization and implementation
subcontractors; the complexity of deployments and product
implementations, which can impact the timing of when revenue is
recognized from new and existing customers; allowing our
implementation subcontractors to contract directly with customers
for implementation services; our shift to focusing on recurring
revenue streams; our ability to compete as the learning and people
development provider for organizations of all sizes; changes in the
proportion of our customer base that is comprised of enterprise or
mid-sized organizations; our ability to manage our growth,
including additional headcount and entry into new geographies; our
ability to expand our enterprise and mid-market sales
opportunities; our ability to maintain stable and consistent quota
attainment rates; continued strong demand for learning and people
development in Europe, the Middle East, Africa, Asia-Pacific, and
Japan; the timing and success of efforts to increase operational
efficiency and cost containment; the timing and success of
solutions offered by our competitors; unpredictable macro-economic
conditions; the impact of foreign exchange rates; reductions in
information technology spending; the success of our new product and
service introductions; a disruption in our hosting network
infrastructure; problems caused by security breaches; costs and
reputational harm that could result from defects in our solutions;
the success of our strategic relationships with third parties; the
loss of any of our key employees and our ability to locate
qualified replacements; failure to protect our intellectual
property; acts of terrorism or other vandalism, war, natural
disasters, or the ongoing COVID-19 pandemic; changes in current tax
or accounting rules; legal or political changes in local or foreign
jurisdictions that decrease demand for, or restrict our ability to
sell or provide, our products; the failure to achieve expected
synergies and efficiencies of operations between the Company and
Saba; the ability of the Company and Saba to successfully integrate
their respective market opportunities, technology, products,
personnel and operations; and unanticipated costs or liabilities
related to businesses that we acquire. Further information on
factors that could cause actual results to differ materially from
the results anticipated by our forward-looking statements is
included in the reports we have filed with the Securities and
Exchange Commission, including our Annual Report on Form 10-K for
the fiscal year ended December 31, 2019.
Non-GAAP Financial Measures and Other Key Metrics
To supplement its consolidated financial statements, which are
prepared and presented in accordance with US generally accepted
accounting principles, or GAAP, the Company has provided in this
press release and the quarterly conference call held on the date
hereof certain non-GAAP financial measures and other key metrics.
These non-GAAP financial measures include:
(i)
non-GAAP cost of revenue, which is defined
as cost of revenue less amortization of intangible assets and
stock-based compensation;
(ii)
annual recurring revenue, which is defined
as the annualized recurring value of all active contracts at the
end of a reporting period;
(iii)
unlevered free cash flow, which is defined
as net cash provided by operating activities minus capital
expenditures and capitalized software costs plus cash paid for
interest;
(iv)
unlevered free cash flow margin, which is
defined as unlevered free cash flow divided by revenue;
(v)
non-GAAP net income and non-GAAP diluted
net income per share, which exclude, for the periods in which they
are presented, stock-based compensation, amortization of intangible
assets, accretion of debt discount and amortization of debt
issuance costs, unrealized fair value adjustment on strategic
investments, restructuring costs, acquisition-related costs, and
excludes the impacts of unamortized stock-based compensation
expense in applying the treasury method for determining the
non-GAAP weighted average number of dilutive shares
outstanding;
(vi)
non-GAAP gross profit and non-GAAP gross
margin, which exclude stock-based compensation and amortization of
intangible assets reflected in cost of revenue;
(vii)
non-GAAP operating income and non-GAAP
operating income margin, which are defined as income or loss from
operations excluding stock-based compensation, amortization of
intangible assets, restructuring costs, and acquisition-related
costs;
(viii)
non-GAAP operating expenses, which exclude
stock-based compensation, amortization of intangible assets,
restructuring costs, and acquisition-related costs; and
(ix)
non-GAAP sales and marketing expense,
non-GAAP research and development expense, and non-GAAP general and
administrative expense, each of which excludes stock-based
compensation attributable to the corresponding GAAP financial
measures.
The Company’s management uses these non-GAAP financial measures
and other key metrics internally in analyzing its financial results
and believes they are useful to investors, as a supplement to the
corresponding GAAP measures, in evaluating the Company’s ongoing
operational performance and trends and in comparing its financial
measures with other companies in the same industry, many of which
present similar non-GAAP financial measures and key metrics to help
investors understand the operational performance of their
businesses. In addition, the Company believes that the following
non-GAAP adjustments are useful to management and investors for the
following reasons:
- Stock-based compensation. The Company excludes stock-based
compensation expense because it is non-cash in nature, and
management believes that its exclusion provides additional insight
into the Company’s operational performance and also provides a
useful comparison of the Company’s operating results to prior
periods and its peer companies. Additionally, determining the fair
value of certain stock-based awards involves a high degree of
judgment and estimation and the expense recorded may bear little
resemblance to the actual value realized upon the vesting or future
exercise of such awards.
- Amortization of intangible assets. The Company excludes
amortization of acquired intangible assets because the expense is a
non-cash item and management believes that its exclusion provides
meaningful supplemental information regarding the Company’s
operational performance and allows for a useful comparison of its
operating results to prior periods and its peer companies.
- Accretion of debt discount and amortization of debt issuance
costs. The Company recognizes the effective interest expense on its
senior convertible notes and amortize the issuance costs over the
term of the notes. The difference between the effective interest
expense and the contractual interest expense and the amortization
expense of issuance costs are excluded from management’s assessment
of the Company’s operating performance because management believes
that these non-cash expenses are not indicative of ongoing
operating performance. In addition, the exclusion of these items
provides a useful comparison of the Company’s operating results to
prior periods and its peer companies.
- Fair value adjustment on strategic investments. The Company
views the increase or decrease in the fair value of its strategic
investments as not indicative of operational performance during any
particular period and believes that the exclusion of these gains or
losses provides investors with a supplemental view of the Company’s
operational performance.
- Acquisition-related costs. The Company excludes costs related
to acquisitions because the expenses are discrete to specific
acquisitions and are not necessarily indicative of its continuing
operations. The Company believes that the exclusion of these costs
provides investors with a supplemental view of the Company’s
operational performance.
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 measures. These non-GAAP
financial measures are not based on any standardized methodology
prescribed by GAAP and are not necessarily comparable to
similarly-titled measures presented by other companies. For the
periods presented, reconciliations of the non-GAAP financial
measures to their most directly comparable GAAP measures have been
provided in the tables included as part of this press release.
Cornerstone OnDemand,
Inc.
CONSOLIDATED BALANCE
SHEETS
(in thousands)
(unaudited)
March 31, 2020
December 31, 2019
Assets
Current assets:
Cash and cash equivalents
$
456,154
$
215,907
Short-term investments
—
201,579
Accounts receivable, net
94,200
131,105
Deferred commissions, current portion
33,470
33,215
Prepaid expenses and other current
assets
33,789
30,512
Total current assets
617,613
612,318
Capitalized software development costs,
net
50,169
50,023
Property and equipment, net
33,581
36,526
Operating right-of-use assets
70,908
72,944
Deferred commissions, net of current
portion
70,919
74,563
Long-term investments
9,715
60,192
Intangible assets, net
18,251
9,440
Goodwill
56,282
47,453
Other assets
3,947
2,642
Total assets
$
931,385
$
966,101
Liabilities and stockholders’
equity
Current liabilities:
Accounts payable
$
4,511
$
3,803
Accrued expenses
59,247
78,075
Deferred revenue, current portion
300,068
339,522
Operating lease liabilities, current
portion
8,769
7,235
Other liabilities
10,511
11,015
Total current liabilities
383,106
439,650
Convertible notes, net
294,264
293,174
Deferred revenue, net of current
portion
6,850
6,945
Operating lease liabilities, net of
current portion
64,252
67,195
Other liabilities, non-current
1,655
655
Total liabilities
750,127
807,619
Stockholders’ equity:
Common stock
6
6
Additional paid-in capital
716,158
682,717
Accumulated deficit
(538,455)
(524,680)
Accumulated other comprehensive income
3,549
439
Total stockholders’ equity
181,258
158,482
Total liabilities and stockholders’
equity
$
931,385
$
966,101
Cornerstone OnDemand,
Inc.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except per share
data)
(unaudited)
Three Months Ended
March 31,
2020
2019
Revenue
$
150,136
$
140,117
Cost of revenue 1, 2
41,924
33,695
Gross profit
108,212
106,422
Operating expenses:
Sales and marketing 1,2
55,330
54,505
Research and development 1
24,085
27,746
General and administrative 1
24,725
22,940
Acquisition-related costs
6,811
—
Total operating expenses
110,951
105,191
(Loss) income from operations
(2,739)
1,231
Other income (expense):
Interest income
1,728
1,990
Interest expense
(5,501)
(5,366)
Other, net
(7,092)
(597)
Other expense, net
(10,865)
(3,973)
Loss before income tax provision
(13,604)
(2,742)
Income tax provision
(171)
(722)
Net loss
$
(13,775)
$
(3,464)
Net loss per share, basic and
diluted
$
(0.22)
$
(0.06)
Weighted average common shares
outstanding, basic and diluted
61,631
59,141
1
Includes stock-based compensation as
follows:
Three Months Ended
March 31,
2020
2019
Cost of revenue
$
2,701
$
1,136
Sales and marketing
8,584
6,047
Research and development
4,800
4,196
General and administrative
7,085
5,666
Total
$
23,170
$
17,045
2
Includes amortization of intangible assets
as follows:
Three Months Ended
March 31,
2020
2019
Cost of revenue
$
1,663
$
1,286
Sales and marketing
83
—
Total
$
1,746
$
1,286
Cornerstone OnDemand,
Inc.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
March 31,
2020
2019
Cash flows from operating
activities
Net loss
$
(13,775)
$
(3,464)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization
11,964
10,858
Accretion of debt discount and
amortization of debt issuance costs
1,090
1,027
Amortization (accretion) of purchased
investment premium or discount, net
41
(216)
Net foreign currency and other loss
5,585
294
Stock-based compensation expense
23,170
17,045
Changes in operating assets and
liabilities:
Accounts receivable
35,516
32,955
Deferred commissions
582
(4,274)
Prepaid expenses and other assets
(6,550)
3,641
Accounts payable
523
(2,781)
Accrued expenses
(18,079)
(23,287)
Deferred revenue
(35,557)
(23,959)
Other liabilities
1,478
(545)
Net cash provided by operating
activities
5,988
7,294
Cash flows from investing
activities
Purchases of marketable investments
(20,419)
—
Maturities and sales of investments
272,173
170,679
Capital expenditures
(971)
(4,243)
Capitalized software costs
(7,389)
(7,399)
Cash paid for acquisition, net of cash
acquired
(18,639)
—
Net cash provided by investing
activities
224,755
159,037
Cash flows from financing
activities
Proceeds from employee stock plans
10,130
6,840
Net cash provided by financing
activities
10,130
6,840
Effect of exchange rate changes on cash
and cash equivalents
(626)
248
Net increase in cash and cash
equivalents
240,247
173,419
Cash and cash equivalents at beginning of
period
215,907
183,596
Cash and cash equivalents at end of
period
$
456,154
$
357,015
Supplemental cash flow data
Cash paid for interest
$
8,625
$
8,685
Cash paid for income taxes
955
390
Non-cash investing and financing
activities:
Assets acquired under capital leases and
other financing arrangements
$
—
$
485
Capitalized assets financed by accounts
payable and accrued expenses
176
1,789
Capitalized stock-based compensation
2,190
752
Cornerstone OnDemand,
Inc.
RECONCILIATIONS OF COST OF
REVENUE TO NON-GAAP COST OF REVENUE, GROSS PROFIT AND GROSS MARGIN
TO NON-GAAP GROSS PROFIT AND NON-GAAP GROSS MARGIN, (LOSS) INCOME
FROM OPERATIONS TO NON-GAAP OPERATING INCOME, AND OPERATING MARGIN
TO NON-GAAP OPERATING INCOME MARGIN
(in thousands)
(unaudited)
Three Months Ended
March 31,
2020
2019
Reconciliation of cost of revenue,
gross profit, and gross margin:
Revenue
$
150,136
$
140,117
Cost of revenue
41,924
33,695
Gross profit
$
108,212
$
106,422
Gross margin
72.1
%
76.0
%
Cost of revenue
$
41,924
$
33,695
Adjustments to cost of revenue:
Stock-based compensation
(2,138)
(1,136)
Amortization of intangible assets
(1,663)
(1,286)
Total adjustments to cost of revenue
(3,801)
(2,422)
Non-GAAP cost of revenue
38,123
31,273
Non-GAAP gross profit
$
112,013
$
108,844
Non-GAAP gross margin
74.6
%
77.7
%
Reconciliation of (loss) income from
operations and operating margin:
(Loss) income from operations
$
(2,739)
$
1,231
Operating margin
(1.8)
%
0.9
%
Adjustments to loss from operations:
Stock-based compensation1
19,109
17,045
Amortization of intangible assets
1,746
1,286
Acquisition-related costs2
6,811
—
Total adjustments to (loss) income from
operations
27,666
18,331
Non-GAAP operating income
$
24,927
$
19,562
Non-GAAP operating income margin
16.6
%
14.0
%
1
The difference between stock-based
compensation presented above and stock-based compensation as
reported in the consolidated statement of operations for the three
months ended March 31, 2020, represents an amount accrued for cash
bonuses as of December 31, 2019, which was settled in equity during
the first quarter of 2020.
Three Months Ended
March 31,
2020
Cost of revenue
$
2,138
Sales and marketing
7,674
Research and development
3,386
General and administrative
5,911
Total
$
19,109
2
Costs related to the acquisitions of
Clustree SAS and Saba Software, Inc.
Cornerstone OnDemand,
Inc.
RECONCILIATIONS OF NET LOSS TO
NON-GAAP NET INCOME AND NON-GAAP NET INCOME PER SHARE
(in thousands, except per share
amounts)
(unaudited)
Three Months Ended
March 31,
2020
2019
Net loss
$
(13,775)
$
(3,464)
Adjustments to net loss
Stock-based compensation1
19,109
17,045
Amortization of intangible assets
1,746
1,286
Acquisition-related costs2
6,811
—
Accretion of debt discount and
amortization of debt issuance costs3
1,090
1,026
Total adjustments to net loss
$
28,756
$
19,357
Non-GAAP net income
$
14,981
$
15,893
Non-GAAP basic net income per share
$
0.24
$
0.27
Non-GAAP diluted net income per share
$
0.23
$
0.25
Weighted-average common shares
outstanding, basic
61,631
59,141
Non-GAAP weighted-average common shares
outstanding, diluted
66,188
64,750
1
The difference between stock-based
compensation presented above and stock-based compensation as
reported in the consolidated statement of operations for the three
months ended March 31, 2020, represents an amount accrued for cash
bonuses as of December 31, 2019, which was settled in equity during
the first quarter of 2020.
2
Costs related to the acquisitions of
Clustree SAS and Saba Software, Inc.
3
Debt discount accretion and debt issuance
cost amortization has been recorded in connection with our issuance
of $300.0 million in convertible notes on December 8, 2017. These
expenses represent non-cash charges that have been recorded in
accordance with the authoritative accounting literature for such
transactions.
Cornerstone OnDemand,
Inc.
RECONCILIATION OF NET CASH
PROVIDED BY OPERATING ACTIVITIES TO UNLEVERED FREE CASH FLOW AND
UNLEVERED FREE CASH FLOW MARGIN
(A Non-GAAP Financial
Measure)
(in thousands)
(unaudited)
Three Months Ended
March 31,
2020
2019
Reconciliation of unlevered free cash
flow:
Net cash provided by operating
activities
$
5,988
$
7,294
Capital expenditures
(971)
(4,243)
Capitalized software costs
(7,389)
(7,399)
Cash paid for interest
8,625
8,685
Unlevered free cash flow
$
6,253
$
4,337
Unlevered free cash flow margin
4.2
%
3.1
%
Cornerstone OnDemand,
Inc.
TRENDED OPERATIONAL &
FINANCIAL HIGHLIGHTS
(unaudited)
The following metrics are intended as a
supplement to the financial statements found in this press release
and other information furnished or filed with the SEC. In the event
of discrepancies between amounts in these tables and the Company’s
historical disclosures or financial statements, readers should rely
on the Company’s filings with the SEC and financial statements in
the Company’s most recent earnings press release.
The Company intends to periodically review
and refine the definition, methodology and appropriateness of each
of these supplemental metrics. As a result, metrics are subject to
removal and/or change, and such changes could be material.
FY 2019
FY 2020
Q1'19
Q2'19
Q3'19
Q4'19
Q1'20
FY17
FY18
FY19
SELECTED METRICS:
Number of customers1
3,567
3,604
3,645
3,698
3,693
3,250
3,535
3,698
% y/y
8.8
%
7.2
%
6.3
%
4.6
%
3.5
%
11.4
%
8.8
%
4.6
%
% q/q
0.9
%
1.0
%
1.1
%
1.5
%
(0.1)
%
n/a
n/a
n/a
Number of employees
2,017
2,034
1,986
1,993
1,975
1,891
1,953
1,993
% y/y
10.3
%
9.9
%
5.0
%
2.0
%
(2.1)
%
3.7
%
3.3
%
2.0
%
% q/q
3.3
%
0.8
%
(2.4)
%
0.4
%
(0.9)
%
n/a
n/a
n/a
Annual dollar retention rate
n/a
n/a
n/a
n/a
n/a
93.5
%
92.8
%
90.3
%
Annual recurring revenue (in
thousands)
n/a
n/a
n/a
n/a
n/a
439,000
510,000
575,000
Net cash provided by operating activities
(in thousands)
7,294
21,183
24,478
62,594
5,988
67,510
90,253
115,549
Unlevered free cash flow (in
thousands)
4,337
9,470
21,682
54,714
6,253
43,680
63,471
90,203
Unlevered free cash flow margin
3.1
%
6.7
%
15.0
%
36.6
%
4.2
%
9.1
%
11.8
%
15.6
%
FINANCIAL DATA (in thousands, except
percentages):
Revenue
140,117
141,860
144,952
149,594
150,136
—
537,891
576,523
Subscription revenue
131,256
132,562
137,446
141,704
144,421
—
473,052
542,968
% y/y growth
16.0
%
15.5
%
15.7
%
12.2
%
10.0
%
—
—
14.8
%
% y/y growth constant currency
18.2
%
17.3
%
17.2
%
12.4
%
10.7
%
—
—
16.2
%
Subscription revenue % of total
revenue
93.7
%
93.4
%
94.8
%
94.7
%
96.2
%
—
87.9
%
94.2
%
Income (loss) from operations
1,231
(3,594)
3,713
10,583
(2,739)
—
(7,769)
11,933
MARGIN DATA:
Gross margin
76.0
%
71.7
%
74.4
%
74.5
%
72.1
%
—
73.2
%
74.1
%
Sales and marketing % of revenue
38.9
%
41.4
%
39.9
%
37.9
%
36.9
%
—
41.8
%
39.5
%
Research and development % of revenue
19.8
%
17.2
%
17.7
%
15.6
%
16.0
%
—
14.3
%
17.5
%
General and administrative % of
revenue
16.4
%
15.7
%
14.2
%
13.9
%
16.5
%
—
16.7
%
15.0
%
Acquisition-related costs % of revenue
—
—
—
—
4.5
%
—
0.2
%
—
Restructuring % of revenue
—
—
—
—
—
—
1.7
%
—
Operating margin
0.9
%
(2.5)
%
2.6
%
7.1
%
(1.8)
%
—
(1.4)
%
2.1
%
NON-GAAP MARGIN DATA:
Non-GAAP gross margin
77.7
%
73.7
%
76.3
%
76.3
%
74.6
%
—
74.1
%
76.0
%
Non-GAAP sales and marketing % of
revenue
34.6
%
36.6
%
34.4
%
33.2
%
31.7
%
—
37.2
%
34.7
%
Non-GAAP research and development % of
revenue
16.8
%
14.1
%
14.8
%
13.5
%
13.8
%
—
12.1
%
14.8
%
Non-GAAP general and administrative % of
revenue
12.3
%
11.3
%
10.3
%
10.6
%
12.5
%
—
13.2
%
11.1
%
Non-GAAP operating margin
14.0
%
11.7
%
16.7
%
18.9
%
16.6
%
—
11.8
%
15.4
%
Non-GAAP research and development plus
capitalized software % of revenue
22.1
%
18.8
%
18.0
%
17.4
%
18.7
%
—
16.8
%
19.1
%
FOREIGN EXCHANGE RATES:
GBP to USD average period rate
1.30
1.29
1.23
1.29
1.28
1.29
1.34
1.28
GBP to USD end of period spot rate
1.30
1.27
1.23
1.32
1.23
1.35
1.27
1.32
EUR to USD average period rate
1.14
1.12
1.11
1.11
1.10
1.14
1.18
1.12
EUR to USD end of period spot rate
1.12
1.14
1.09
1.12
1.10
1.20
1.14
1.12
1
Includes contracted customers of our
enterprise people development platform and excludes customers and
users of Cornerstone for Salesforce, PiiQ, Workpop Inc. and Grovo
Learning, Inc.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200511005859/en/
Investor Relations Contact: Jason Gold Phone: +1 (310) 526-2531
jgold@csod.com
Media Contact: Deaira Irons Phone: +1 (310) 752-0164
dirons@csod.com
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