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Cornerstone OnDemand Announces Third Quarter 2013 Financial Results

  • Record quarterly revenue of $48.3 million, up 57% year-over-year

  • Record quarterly bookings of $62.4 million, up 46% year-over-year1

  • Record quarterly gross profit of $34.6 million, up 60% year-over-year

  • Non-GAAP gross margin of 73.7%1

  • Ended the quarter with over 1,500 clients and approaching 13 million users2

SANTA MONICA, Calif. – November 4, 2013 – Talent management software provider Cornerstone OnDemand, Inc. (NASDAQ: CSOD) today announced results for its quarter ended September 30, 2013.

Revenue for the third quarter of 2013 was $48.3 million, representing a 57% increase compared to the same period in 2012. Revenue for the first nine months of 2013 was $130.3 million, an increase of 60% 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 $62.4 million for the third quarter of 2013, representing a 46% increase compared to the same period in 2012. 1 Bookings for the first nine months of 2013 were $147.2 million, representing a 50% increase compared to the same period in 2012.1 Deferred revenue at September 30, 2013 was $109.2 million, which was 50% higher than the balance at September 30, 2012.

“Our continued momentum is demonstrated by our strong third quarter performance, which was driven in large part by the sustained execution of our core business in North America and EMEA,” said Adam Miller, the Company’s President & CEO. “As we look ahead, we expect not only to build upon our success in these regions, but also to continue to grow our operations in new markets such as Asia Pacific and Latin America to capture more of what we believe to be significant global demand for a best-of-breed talent management solution."

Gross profit for the third quarter of 2013 was $34.6 million, representing a 60% increase compared to the same period in 2012. Gross profit for the first nine months of 2013 was $92.2 million, an increase of 60% compared to the same period in 2012. Gross margin for the third quarter of 2013 was 71.7%. Gross margin for the first nine months of 2013 was 70.8%.

Non-GAAP gross profit for the third quarter of 2013 was $35.6 million, representing a 57% increase compared to the same period in 2012.1 Non-GAAP gross profit for the first nine months of 2013 was $94.9 million, an increase of 56% compared to the same period in 2012.1 Non-GAAP gross margin for the third quarter of 2013 was 73.7%.1 Non-GAAP gross margin for the first nine months of 2013 was 72.8%.1

The Company’s loss from operations for the third quarter of 2013 was $8.2 million and for the first nine months of 2013 was $26.1 million. Operating margin for the third quarter of 2013 increased by 880 basis points compared to the same period in 2012. Operating margin for the first nine months of 2013 increased by 950 basis points compared to the same period in 2012.

The Company’s non-GAAP loss from operations for the third quarter of 2013 was $1.1 million and for the first nine months of 2013 was $9.1 million.1 Non-GAAP operating margin for the third quarter of 2013 increased by 940 basis points compared to the same period in 2012.1 Non-GAAP operating margin for the first nine months of 2013 increased by 830 basis points compared to the same period in 2012.1

The Company’s net loss for the third quarter of 2013 was $11.1 million, or $0.21 net loss per share. The Company's net loss for the first nine months of 2013 was $29.7 million, or $0.58 net loss per share.

Non-GAAP net loss for the third quarter of 2013 was $1.9 million, or a $0.04 net loss per share. Non-GAAP net loss for the first nine months of 2013 was $10.8 million, or $0.21 net loss per share.1

At September 30, 2013, the Company’s total cash and cash equivalents were $89.6 million, short-term and long-term investments were $200.9 million, and accounts receivable were $55.6 million, yielding a total of approximately $346.2 million. The Company’s investment in marketable securities had a weighted-average maturity date of approximately eight months.

The Company ended the quarter with over 1,500 clients and approaching 13 million users.2

1

Bookings, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating loss, 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.

2

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, Inc. will host a conference call to discuss its third quarter 2013 results at 2:00 p.m. PST (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) 430-8691 (U.S.) or (719) 325-2454 (outside the U.S.) and referencing passcode: 6590019. A replay of the call will also be available at http://investors.cornerstoneondemand.com/events.cfm or via telephone until 11:59 p.m. PST on November 7, 2013 by dialing (888) 203-1112 (U.S.) or (719) 457-0820 (outside the U.S.), and referencing passcode: 6590019.

About Cornerstone

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 more than 6,000 customers of all sizes, spanning more than 75 million users across over 180 countries and nearly 50 languages. Learn more at www.cornerstoneondemand.com.

Investor Relations Contact

Jason Gold

jgold@csod.com

+1 (310) 526-2531

Media Contact

Deaira Irons

dirons@csod.com

+1 (310) 752-0164
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