Cornerstone OnDemand (NASDAQ:CSOD), a provider of talent management solution software, priced its IPO on March 16th, 2011, above expected range at $13 per share.
Business Overview (from prospectus)
Cornerstone OnDemand is a leading global provider of a comprehensive learning and talent management solution delivered as software-as-a-service. We enable organizations to meet the challenges they face in empowering their people and maximizing the productivity of their human capital. We currently empower over 4.92 million users across 164 countries and 23 languages. Our solution consists of five integrated platforms for learning management, enterprise social networking, performance management, succession planning and extended enterprise. Our clients use our solution to develop employees throughout their careers, engage all employees effectively, improve business execution, cultivate future leaders and integrate with their external networks of customers, vendors and distributors.
Offering: 10.5 million shares (3 million by selling stockholders) at $13 per share. A portion of the net proceeds will be used for debt-repayment.
Net revenue increased $14.4 million, or 49%, from 2009 to 2010. Cost of revenue increased $5.6 million, or 65%, from 2009 to 2010...Gross margin, as a percentage of net revenue, decreased from 70% to 67% from 2009 to 2010...Sales and marketing expenses increased $9.2 million, or 49%, from 2009 to 2010...Research and development expenses increased by $2.8 million, or 101%, from 2009 to 2010...General and administrative expenses increased $4.2 million, or 98%, from 2009 to 2010...Net loss increased $40 million from 2009 to 2010...
The market for learning and talent management software specifically, and for human resource technology generally, is highly competitive, rapidly evolving and fragmented. This market is subject to changing technology, shifting client needs and frequent introductions of new products and services. Most of our sales efforts are competitive, often involving requests for proposals, or RFPs. We compete primarily on the basis of providing a comprehensive, fully integrated solution for learning and talent management as opposed to specific service offerings.