Cornerstone OnDemand Announces First Quarter 2011 Financial Results
Record Q1 revenue of $15.7 million, a 63% year-over-year increase
Added 85 new clients in Q1, bringing the total to over 560
Bookings1 grew 55% year-over-year
Generated $1.4 million in cash flow from operations and approximately $1.0 million in unlevered free cash flow1 for the first quarter
Total revenue for the first quarter of 2011 was $15.7 million, representing a 63% year-over-year increase over the first quarter of 2010.
Bookings1, which the company defines as quarterly revenue plus change in deferred revenue, was $14.3 million for the quarter, representing a 55% year-over-year increase.
During the first quarter of 2011, the Company generated approximately $1.4 million in cash flow from operations and approximately $1 million in unlevered free cash flow.1
“We feel very positive about the momentum of the business and our strong start to the year. Cornerstone ended the first quarter with more than 560 clients and over 5.2 million users, representing approximately 80% year-over-year growth of our client base. And our first quarter revenue and bookings growth places Cornerstone amongst the world’s fastest growing publicly-traded SaaS companies” stated Adam Miller, President and CEO. “We continue to close and grow marquee accounts, earn recognition from industry analysts as one of the leaders in both learning and performance management, and gain further validation of our integrated product strategy as many of our competitors continue to consolidate.”
“In addition, we have further expanded our global distribution through a growing network of strategic alliances,” continued Miller. “Recently we have signed an OEM agreement with SunGard Higher Education for distribution to colleges and universities, a reseller agreement with Logica in Europe, and most notably, a global reseller agreement with our first HR outsourcing partner, one of the largest BPO and IT outsourcing companies in the world. The agreement includes the migration of several of their hosted clients to our state-of-the-art SaaS solution.”
Cash and cash equivalents at March 31, 2011 were $91.0 million.
Our loss from operations for the first quarter of 2011 was $4.6 million, as compared to a loss from operations of $2.2 million in the first quarter of 2010, reflecting our increased investments in scaling our operations.
In accordance with Generally Accepted Accounting Principles, or on a “GAAP” basis, net loss for the first quarter of 2011 was $47.6 million, as compared to a net loss of $3.8 million for the first quarter of 2010. GAAP net loss for the first quarter of 2011 was primarily impacted by the charge for the change in fair value of our preferred stock warrants in the amount of $42.6 million.
Non-GAAP net loss1 for the first quarter of 2011 was $3.7 million, or $(0.26) per share, as compared to non-GAAP net loss of $2.4 million, or $(0.28) per share, for the first quarter of 2010. Non-GAAP results exclude expenses related to stock-based compensation, changes in the fair value of preferred stock warrants, accretion related to preferred stock, and amortization of debt discount and issuance costs as well as fees related to the early retirement of debt.
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 first quarter 2011 results at 2:00 p.m. Pacific Time 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. Please join the conference call at least 10 minutes early to register. A replay of the conference call will be available until 4:00 p.m. PT on May 19, 2011 at http://investors.cornerstoneondemand.com/events.cfm or via dial-in at (800) 642-1687 or (706) 645-9291. The passcode for the replays is: 6721-1761.
Cornerstone is a premier 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 6,300 clients of all sizes, spanning more than 75 million users across over 180 countries and nearly 50 languages. Learn more at www.cornerstoneondemand.com.