NEW YORK (TheStreet) -- Shares of Cornerstone OnDemand Inc. (CSOD) are down 17.65% to $26.97 after the company lowered its 2014 fourth quarter guidance to $72.8 million to $75.8 million, short of consensus estimates of $81.54 million, according to Reuters.
The software company, which specializes in cloud-based applications for talent management, said that delayed service revenue will negatively affect fourth quarter results.
CEO Adam Miller started the third quarter earnings conference call with "the bad news."
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"The lackluster performance of our emerging business units this year, in particular the poor performance of our public sector business unit in the third quarter combined with the elongated implementation cycles of our largest clients, which result in delayed service revenue, and the recent significant foreign exchange fluctuations have affected us going into the fourth quarter of this year and will result in a revenue shortfall for the year relative to our initial guidance," Miller said.
Separatley, TheStreet Ratings team rates CORNERSTONE ONDEMAND INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate CORNERSTONE ONDEMAND INC (CSOD) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself."