Cornerstone OnDemand Announces Third Quarter 2016 Financial Results

Human capital management software provider Cornerstone OnDemand, Inc. (NASDAQ: CSOD) today announced results for its third quarter ended September 30, 2016. A summary of the Company's Operational and Financial Highlights is available on the Company's Investor Relations website at http://investors.cornerstoneondemand.com .

"In the third quarter, we exceeded revenue expectations and came in well ahead of our profitability goals," said Adam Miller, the Company's President and CEO. "We have made great strides in our operational excellence initiatives, and believe our continued focus on efficiency will enable us to achieve even stronger gains in profitability while continuing to pursue the tremendous long-term growth opportunities ahead."

Third Quarter 2016 Results:
  • Revenue for the third quarter of 2016 was $107.8 million, representing a 23.5% increase compared to the same period in 2015. Revenue growth on a constant currency basis represented a 29.7% increase compared to the prior year. 1
  • Billings were $107.0 million for the third quarter of 2016, representing a 3.2% increase compared to the same period in 2015. 1 Billings growth on a constant currency basis represented a 8.7% increase compared to the prior year. 1
  • The Company's operating loss for the third quarter of 2016 was $(10.0) million, yielding an operating loss margin of (9.3)%, compared to an operating loss of $(17.0) million, yielding an operating loss margin of (19.5)%, for the third quarter of 2015. This represents an increase of 1,020 basis points year-over-year.
  • Non-GAAP operating income for the third quarter of 2016 was $6.9 million, yielding a non-GAAP operating income margin of 6.4%, compared to a non-GAAP operating loss of $(2.2) million, yielding a non-GAAP operating loss margin of (2.5)%, for the third quarter of 2015. 1 This represents an increase of 890 basis points year-over-year.
  • The Company's net loss for the third quarter of 2016 was $(12.4) million, or a $(0.22) diluted net loss per share, compared to a net loss of $(20.1) million, or a $(0.37) diluted net loss per share, for the third quarter of 2015.
  • Non-GAAP net income for the third quarter of 2016 was $6.9 million, or a $0.11 non-GAAP diluted net income per share, compared to a non-GAAP net loss of $(3.2) million, or a $(0.06) non-GAAP diluted net loss per share, for the third quarter of 2015. 1
  • Free cash flow for the third quarter of 2016 was $7.8 million compared to free cash flow of $(3.8) million for the third quarter of 2015. 1

"We once again came in well ahead of our margin expectations in Q3, largely driven by significant improvement in sales and marketing expense as a percentage of revenue," said Brian L. Swartz, the Company's CFO. "We are especially pleased with our progress, particularly considering we have yet to realize many of the potential benefits from our various operational excellence initiatives."

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