Cornerstone OnDemand Announces
Second Quarter 2014 Financial Results
- Record second quarter bookings of $70.1 million, up 44% year-over-year1
- Record quarterly revenue of $61.5 million, up 39% year-over-year
- Record quarterly gross profit of $44.1 million, up 41% year-over-year
- Record second quarter client additions, ending the quarter with over 1,800 clients.2
Revenue for the second quarter of 2014 was $61.5 million, representing a 39% 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 $70.1 million for the second quarter of 2014, representing a 44% increase compared to the same period in 2013. 1 Bookings also increased by $20.4 million, or 41%, quarter-over-quarter, which represents the highest percentage increase on a quarter-over-quarter basis since 2011.1 Bookings for the first six months of 2014 were $119.8 million, representing a 41% increase compared to the same period in 2013. 1 Deferred revenue at June 30, 2014 was $139.7 million, which was 47% higher than the balance at June 30, 2013.
“We have invested significantly in recent years to ensure that our business is positioned for success across verticals, segments, and geographies, and we saw several of these investments begin to pay dividends for us in the second quarter,” said Adam Miller, the company’s President and CEO. “In addition to our core businesses, we saw strong performances from our Strategic Accounts, Asia-Pacific and Major Accounts teams. And with the sizeable, untapped market opportunity that remains, it feels like we are just getting started.”
Gross profit for the second quarter of 2014 was $44.1 million, representing a 41% increase compared to the same period in 2013. Gross margin for the second quarter of 2014 was 71.7% compared to 70.3% in the second quarter of 2013.
Non-GAAP gross profit for the second quarter of 2014 was $45.0 million, representing a 40% increase compared to the same period in 2013.1 Non-GAAP gross margin for the second quarter of 2014 was 73.1% compared to 72.2% in the second quarter of 2013.1
The Company’s net loss for the second quarter of 2014 was $16.6 million yielding a net loss margin of 27.1%, or a $0.31 net loss per share, compared to a net loss of $8.7 million yielding a net loss margin of 19.6%, or a $0.17 net loss per share, in the second quarter of 2013.
Non-GAAP net loss for the second quarter of 2014 was $5.9 million yielding a non-GAAP net loss margin of 9.5%, or an $0.11 net loss per share, compared to a non-GAAP net loss of $3.5 million yielding a non-GAAP net loss margin of 8.0%, or a $0.07 net loss per share, in the second quarter of 2013.1
At June 30, 2014, the Company’s total cash and cash equivalents were $96.6 million, investments were $199.4 million, and accounts receivable were $69.1 million, yielding a total of approximately $365.2 million.
As announced in the fourth quarter of 2013, the Company has launched the Cornerstone Innovation Fund, a strategic initiative created to invest in, advise and collaborate with, promising cloud startups. During the quarter, the Company made its first strategic investment of $0.5 million.
The Company ended the quarter with over 15.5 million users, representing the addition of approximately 1 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 second 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: 69285681. 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 7, 2014 by dialing (855) 859-2056 (U.S.) or (404) 537-3406 (outside the U.S.), and referencing passcode: 69285681.
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/