Cornerstone OnDemand Announces First Quarter 2014 Financial Results
- Record quarterly revenue of $57.4 million, up 52% year-over-year
- Record first quarter bookings of $49.7 million, up 38% year-over-year1
- Record quarterly gross profit of $40.0 million, up 52% year-over-year
- Ended the quarter with over 1,700 clients and over 14.5 million users2
Revenue for the first quarter of 2014 was $57.4 million, representing a 52% increase compared to the same period in 2013.
Bookings, which the Company defines as revenue plus the change in deferred revenue for the period, were $49.7 million for the first quarter of 2014, representing a 38% increase compared to the same period in 2013. 1 Deferred revenue at March 31, 2014 was $131.1 million, which was 45% higher than the balance at March 31, 2013.
“The first quarter once again demonstrated that the Cornerstone solution is applicable to organizations of all sizes, in every region and in every vertical,” said Adam Miller, the company’s President and CEO. “We believe that the combination of our huge market opportunity and weakened competitive environment, coupled with growing worldwide distribution, a track-record of innovation, and a blue-chip client roster, positions Cornerstone to be the long-term technology leader in our space.”
Gross profit for the first quarter of 2014 was $40.0 million, representing a 52% increase compared to the same period in 2013. Gross margin for the first quarter of 2014 was 69.7% compared to 70.1% in the first quarter of 2013.
Non-GAAP gross profit for the first quarter of 2014 was $41.1 million, representing a 51% increase compared to the same period in 2013.1 Non-GAAP gross margin for the first quarter of 2014 was 71.6% compared to 72.2% in the first quarter of 2013.1
The Company’s net loss for the first quarter of 2014 was $15.8 million yielding a net loss margin of (27.5)%, or $0.30 net loss per share, compared to a net loss of $9.9 million yielding a net loss margin of (26.4)%, or $0.20 net loss per share, in the first quarter of 2013.
Non-GAAP net loss for the first quarter of 2014 was $5.1 million yielding a non-GAAP net loss margin of (8.8)%, or $0.10 net loss per share, compared to a non-GAAP net loss of $5.3 million yielding a non-GAAP net loss margin of (14.1)%, or $0.10 net loss per share, in the first quarter of 2013.1 This represents a non-GAAP net loss margin improvement of 530 basis points.1
For the first quarter of 2014, net cash provided by operating activities was $0.9 million as compared to $0.5 million for the same period in 2013.
At March 31, 2014, the Company’s total cash and cash equivalents were $108.7 million, investments were $200.5 million, and accounts receivable were $52.5 million, yielding a total of approximately $361.7 million.
The Company ended the quarter with over 1,700 clients and over 14.5 million users.2
Bookings, non-GAAP gross profit, non-GAAP gross margin, non-GAAP net loss, non-GAAP net loss margin and non-GAAP net loss per share are non-GAAP financial measures. Please see the discussion in the section “Non-GAAP Financial Measures” and the reconciliations at the end of this release.
Includes contracted clients and active users of our Enterprise and Mid-Market solution, excluding Cornerstone for Salesforce and Cornerstone Growth Edition, formerly known as Cornerstone for Small Business.
Quarterly Conference Call
Cornerstone OnDemand, Inc. will host a conference call to discuss its first quarter 2014 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 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: 35146652. A replay of the call will also be available at http://investors.cornerstoneondemand.com/events.cfm or via telephone until 11:59 p.m. PT on May 4, 2014 by dialing (855) 859-2056 (U.S.) or (404) 537-3406 (outside the U.S.), and referencing passcode: 35146652.
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 7,000 clients of all sizes, spanning more than 75 million users across over 180 countries and 50+ languages. Learn more at www.cornerstoneondemand.com.