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» Cornerstone OnDemand's CEO Discusses Q3 2011 Results - Earnings Call Transcript
Our discussion will include forward-looking statements such as statements regarding our business strategy, demand for our products, certain projected financial results and operating metrics, product development, customer satisfaction and retention, customer attrition rate, market or business growth, our revenue run rate, investment activity in our business, visibility into our business model and results, the effect of capitalized development costs, spending on R&D, professional services and other aspects of our business, our appraisal of our competitors and their products, and our ability to compete effectively.Words such as expect, believe, anticipate, plan, illustrate, intent, estimate, and other similar words are also intended to identify such forward-looking statements. Forward-looking statements involve risks, uncertainties, and assumptions. If any of the risks or uncertainties materializes or any of the assumptions prove incorrect, actual results could differ materially from those expressed or implied by the forward-looking statements we make. These risks, uncertainties, assumptions, as well as other information on potential factors that could affect our financial results, are included in today’s press release, the risk factors section of our most recent form 10-K, and subsequent periodic filings with the SEC. With that, I’ll turn the call over to Adam. Adam Miller Thanks Perry, and thank you to everyone participating in Cornerstone OnDemand’s first quarter earnings call. I am pleased to report that we continued to build upon the momentum of our business in Q1, with another very strong quarter. On a GAAP basis, revenues for the quarter came in at $24 million, representing a year over year increase of 52%, and bookings came in at $24 million as well, representing a year over year increase of 67%. We have added 85 new clients during the quarter, bringing the size of our global and mid-market client count to nearly 900, which is up 58% year over year. Our client additions in the first quarter were comprised of marquee names in both the private and public sectors, including Regis Corporation, the Container Store, USAID, the U.S. Small Business Association, the Denver Public Library, a multi-billion dollar global chemical company, and one of the world’s preeminent media companies. Our domestic and EMEA sales teams picked up right where they left off at the end of 2011, and finished the quarter strong.
While we are very proud of the many new clients we have added, our number one priority has always been to ensure the success of our existing clients. From 2002 through 2011, we had an average annual dollar retention rate of approximately 95%, and we believe we are on track to achieve this again in 2012. Our combination of growth and retention helped us increase the size of our user base to over 8 million users in the first quarter, which represents one of the largest SaaS subscriber bases in the world.We also strengthened our relationships with many of our existing clients during the first quarter, with significant upsales to Pep Boys, Heidelberg Cement, Manchester Airport, one of the largest hospital operators in the world, and one of the largest clothing retailers in the world. The upsale with Pep Boys is noteworthy because it exemplifies how our product penetration with our clients has become increasingly balanced between learning and our other clouds. Pep Boys began as a learning cloud deal in 2008, and after three successful years with us, they added succession management within the performance cloud in 2011, and in the first quarter of this year, Pep Boys further expanded the performance management footprint within their organization with additional functionality to evaluate the proficiency of new hires. As our results demonstrate, we have not seen a disruption in our business from the recent consolidation of our market, or from the macroeconomic uncertainty in Europe and other parts of the world. I believe there was some concern among investors that the entry of ERP players into the talent management space, namely SAP and Oracle, could limit our ability to compete in the market. For several reasons, we believe this has not been the case. Read the rest of this transcript for free on seekingalpha.com