Cornerstone OnDemand Announces Second Quarter 2013 Financial Results
•Record quarterly revenue of $44.3 million, up 66% year-over-year
•Record second quarter bookings of $48.9 million, up 55% year-over-year1
•Record quarterly gross profit of $31.2 million, up 66% year-over-year
•Operating margin increased by 1,180 basis points year-over-year
•Ended the quarter with over 1,400 clients and over 12 million users2
Revenue for the second quarter of 2013 was $44.3 million, representing a 66% increase compared to the same period in 2012. Revenue for the first six months of 2013 was $82.0 million, an increase of 62% compared to revenue for the same period in 2012.
Bookings, which the Company defines as gross revenue plus the change in deferred revenue for the period, were $48.9 million for the second quarter of 2013, representing a 55% increase compared to the same period in 2012.1 Bookings for the first six months of 2013 were $84.8 million, representing a 53% increase compared to the same period in 2012.1 Deferred revenue at June 30, 2013 was $95.0 million, which was 57% higher than the balance at June 30, 2012.
“In a quarter that saw many software companies come up short, Cornerstone recorded one of its best performances to date,” said Adam Miller, the Company’s President & CEO. “With our solution improving, global distribution capabilities expanding, and direct competition weakening, our momentum has continued to build and we are excited about the road ahead.”
Gross profit for the second quarter of 2013 was $31.2 million, representing a 66% increase compared to the same period in 2012. Gross profit for the first six months of 2013 was $57.6 million, an increase of 60% compared to the same period in 2012.
The Company’s net loss for the second quarter of 2013 was $8.7 million, or $0.17 net loss per share. The Company's net loss for the first six months of 2013 was $18.6 million, or $0.36 net loss per share. Operating margin for the second quarter of 2013 increased by 1,180 basis points compared to the same period in 2012.
Non-GAAP net loss for the second quarter of 2013 was $3.5 million, or a $0.07 net loss per share, and non-GAAP net loss for the first six months of 2013 was $8.9 million, or $0.17 net loss per share.1 Non-GAAP operating margin for the second quarter of 2013 increased by 830 basis points compared to the same period in 2012.
At June 30, 2013, the Company’s total cash and cash equivalents were $290.3 million, and accounts receivable were $44.1 million, yielding a total of approximately $334.4 million.
The Company ended the quarter with over 1,400 clients and over 12 million users.2
Bookings, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating margin, non-GAAP net loss 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 core solution, excluding Cornerstone for Small Business (CSB) and Cornerstone for Salesforce.
Quarterly Conference Call
Cornerstone OnDemand will host a conference call to discuss its second quarter 2013 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) 539-3612 (U.S.) or (719) 457-2085 (outside the U.S.) and referencing passcode: 5721221. 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 August 9, 2013 by dialing (888) 203-1112 (U.S.) or (719) 457-0820 (outside the U.S.), and referencing passcode: 5721221.
Cornerstone powers the future ready workforce, with HR software and solutions designed to unite people, teams, technology and business, and inspire a work environment of growth, agility and success for all. With an AI-powered and skills-forward system designed for the contemporary workforce, we help organizations modernize the learning and development experience, deliver the most relevant content from anywhere, accelerate talent and career mobility, and establish skills as the universal language of growth and success across the business. Cornerstone serves over 6,000 customers and 75M users and is available in 180 countries and 50 languages. https://www.cornerstoneondemand.com/