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Wed, Feb. 10, 7:37 PM| Wed, Feb. 10, 7:37 PM
Wed, Feb. 10, 6:45 PM
- In addition to missing Q4 estimates, Cornerstone OnDemand (NASDAQ:CSOD) guided on its earnings call for Q1 revenue of $95M-$96.5M and 2016 revenue of $425M-$433M, below consensus estimates of $97.3M and $438.4M. 2016 EPS guidance of $0.02 is in-line.
- The cloud talent management software firm's bookings rose 24% Y/Y to $142M in seasonally strong Q4, after having grown 26% in Q3. The deferred revenue balance was $252.1M at quarter's end, up 32% Y/Y.
- Clients rose by ~200 Q/Q to 2,600, and end-users by 1.6M to over 23.8M. GAAP operating expenses rose 20% Y/Y to $80.6M (compares with 26% revenue growth).
- CSOD -3.6% after hours to $23.51.
- Cornerstone's Q4 results, earnings release
Wed, Feb. 10, 4:04 PM
Tue, Feb. 9, 5:35 PM
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Mon, Feb. 8, 2:37 PM
- Many tech stocks are seeing 6%+ losses as investors flee to safety yet again. The Nasdaq is down 3.4%, and the S&P 2.7%.
- As was the case on Friday following Tableau and LinkedIn's disappointing guidance, a slew of enterprise tech stocks are seeing big losses, with cloud software and security tech names well-represented on the casualty list.
- Also: Solar stocks are having another brutal day (TAN -6.7%) as energy stocks get routed amid fears Chesapeake Energy is close to bankruptcy. WTI crude oil is once more near $30/barrel.
- Enterprise software decliners: Adobe (ADBE -9.6%), Paylocity (PCTY -19.1%), Salesforce (CRM -9.9%), Workday (WDAY -12%), Guidewire (GWRE -12.5%), ServiceNow (NOW -11.5%), Zendesk (ZEN -13.8%), Paycom (PAYC -13.4%), Marin Software (MRIN -10.3%), Castlight (CSLT -8.4%), Cornerstone OnDemand (CSOD -12.1%), Atlassian (TEAM -13.2%), inContact (SAAS -9.6%), and Bazaarvoice (BV -14.5%).
- Enterprise security decliners: Palo Alto Networks (PANW -12.2%), FireEye (FEYE -9.8%), CyberArk (CYBR -11.5%), Proofpoint (PFPT -12.7%), Qualys (QLYS -8.9%), Imperva (IMPV -9.7%), Rapid7 (RPD -9.4%), and Barracuda (CUDA -8.4%).
- Solar decliners: SunEdison (SUNE -11.3%), SunPower (SPWR -8.8%), JinkoSolar (JKS -7.6%), SolarEdge (SEDG -7.9%), Yingli (YGE -7.1%), TerraForm Power (TERP -10.7%), and TerraForm Global (GLBL -9.2%).
- Other major decliners: Micron (MU -9.1%), Western Digital (WDC -10.5%), Arista (ANET -10.9%), Universal Display (OLED -10.6%), Rackspace (RAX -11.3%), Fitbit (FIT -8.7%), Nimble Storage (NMBL -11.3%), Sierra Wireless (SWIR -9.9%), Rocket Fuel (FUEL -9.8%), Knowles (KN -9%), Mitel (MITL -8.9%), and Alarm.com (ALRM -8.9%).
- Previously covered: Yelp, Cognizant, Tableau, Globant, Ambarella, European tech stocks
Fri, Feb. 5, 11:01 AM
- A long list of enterprise software and security tech names are off sharply after business intelligence/analytics software upstart Tableau (down 45.3%) reported slower-than-expected license revenue growth and issued below-consensus Q1/2016 guidance.
- Also possibly weighing: LinkedIn (down 39.6%), which derives a large % of its revenue from cloud-based recruiting and sales tools for enterprises, issued weak Q1/2016 guidance.
- Given the magnitude of the drops, margin calls and forced selling by funds could be playing a big role. The Nasdaq is down 2.2%.
- Tableau suggested its growth slowdown has to do with softening IT spend and a need to improve sales productivity, but analysts have raised questions about competition from the likes of Microsoft, Amazon, and Qlik. LinkedIn forecast a growth slowdown for its field sales hiring solutions business, while blaming European/Asian macro pressures. The company also noted its display ad business continues declining amid weak industry growth.
- Major enterprise software decliners include Splunk (SPLK -23.7%), Workday (WDAY -15.1%), Adobe (ADBE -7%), Zendesk (ZEN -15.2%), ServiceNow (NOW -13.6%), NetSuite (N -12.4%), Salesforce (CRM -11.2%), Paycom (PAYC -10.6%), Ellie Mae (ELLI -11.5%), Cornerstone OnDemand (CSOD -7.8%), Veeva (VEEV -7.7%), Ultimate Software (ULTI -9%), Luxoft (LXFT -7.5%), Manhattan Associates (MANH -8.5%), Box (BOX -6.6%), Guidewire (GWRE -13.6%), Demandware (DWRE -9.3%), Hortonworks (HDP -9.7%), and Tableau rival Qlik (QLIK -16.6%). The casualty list includes many cloud software firms, as well as several analytics software plays. Previously covered: New Relic, Atlassian.
- Major decliners among security tech firms: Palo Alto Networks (PANW -12%), FireEye (FEYE -8.9%), Rapid7 (RPD -8.6%), CyberArk (CYBR -8.3%), Proofpoint (PFPT -8%), Imperva (IMPV -8.3%), Fortinet (FTNT -6.9%), and Vasco (VDSI -5.1%). The selloff comes in spite of an FQ3 beat and in-line FQ4 guidance from Symantec, which has been losing share to various upstarts.
Thu, Jan. 28, 2:53 PM
- Though the Nasdaq is up 0.8%, enterprise cloud software firms Salesforce (CRM -2.7%), Workday (WDAY -3.8%), Demandware (DWRE -4.5%), Veeva (VEEV -3.5%), Cornerstone OnDemand (CSOD -3.3%), Marketo (MKTO -4.4%), Actua (ACTA -2.4%), HubSpot (HUBS -6.2%), and Zendesk (ZEN -2.7%) are lower after cloud IT service management (ITSM) software leader ServiceNow (NOW -16.5%) posted a Q4 billings miss to go with revenue/EPS beats and issued light 2016 sales guidance.
- On ServiceNow's earnings call (transcript), CFO Michael Scarpelli attributed the billings shortfall to a ~$5M forecasting error. Regardless, Mizuho and MKM have responded to the Q4 report by downgrading to Neutral. Mizuho: "We find two [billings] misses in one year concerning." The firm is also worried about a premium valuation, missed quotas by sales reps, and a "large customer's preference to cut payment terms in half."
- MKM is less concerned about the billings miss, and calls Q4 results solid. But the firm is worried about macro pressures, and thinks ServiceNow's track record of major op. margin guidance beats is "unlikely to be sustained given decelerating billings and the current macroeconomic environment."
Wed, Jan. 13, 10:22 AM
- Cornerstone OnDemand (CSOD +3.2%) upgraded to Outperform from Market Perform at FBR Capital with a $42 price target, based on recent checks with partners. (Source: Briefing.com)
- FBR Capital argues Cornerstone “closed 2015 out nicely” with a “solid” 2016 pipeline in place.
- The firm also praised the company’s “improved execution, a large market opportunity, solid demand, ramping interest for newer products, and more reasonable expectations.”
Wed, Jan. 6, 1:46 PM
- Barclays' Raimo Lenschow has downgraded firewall/security software firm Check Point (CHKP -1.9%), cloud talent management software firm Cornerstone OnDemand (CSOD -2.7%), and data warehousing hardware/software provider Teradata (TDC -3.8%) to Underweight. Cloud HR/financials software vendor Workday (WDAY -3.6%) and e-commerce software/services provider Demandware (DWRE -2.9%) have been cut to Equal Weight.
- Cloud HR software firm Paycom (PAYC -1%), on the other hand, has been upgraded to Overweight on a belief consensus estimates are too low. Meanwhile, BofA/Merrill has launched coverage on Demandware at Buy.
- Regarding Check Point, Lenschow says he prefer security tech firms that are gaining share - his top three ideas are Palo Alto Networks, Imprivata, and Rapid7. He sees security IT spend rising 7% in both 2016 and 2017, a rate on par with 2015's.
- Regarding Cornerstone, Lenschow is worried about slowing top-line growth, a lack of profits, and growing competition. Regarding Workday, he's concerned about competition from SAP/Oracle, a high valuation, and the relatively limited impact of its financials offerings on sales growth.
- The downgraded names are underperforming amid a 1.1% Nasdaq drop.
Nov. 6, 2015, 11:51 AM
- While Cornerstone OnDemand (NASDAQ:CSOD) missed Q3 estimates, it guided on its earnings call (webcast) for Q4 revenue of $96.7M-$98.2M, in-line with a $97.5M consensus. Full-year EPS guidance of -$0.35 is below a -$0.33 consensus, but full-year op. cash flow guidance of $43M has been maintained.
- Perhaps getting more attention: The cloud talent management software firm expects 2016 revenue growth to be "largely consistent" with 2015 growth. The midpoint of Cornerstone's 2015 revenue guidance implies 29% growth, while the 2016 consensus is for 27% growth.
- Top-line performance: Recent sales pressures are blamed on forex and service delivery timings. Bookings rose 26% Y/Y in Q3 to $103.7M, a slowdown from Q2's 30% growth but still well above revenue of $87.3M (+28%). Clients rose by ~100 Q/Q to 2,400+, and end-users by 1.7M to 22.2M. The deferred revenue balance rose 34% to $206M.
- Financials: Gross margin (non-GAAP) was 73%, up from Q2's 70% and flat Y/Y. GAAP operating expenses rose 32% Y/Y to $77.1M, with $53.3M spent on sales/marketing, $10.5M on R&D, and $13.2M on G&A. Cornerstone ended Q3 with $214M in cash, and $231M in convertible debt.
- Q3 results, PR
Nov. 5, 2015, 4:12 PM
- Cornerstone OnDemand (NASDAQ:CSOD): Q3 EPS of -$0.05 misses by $0.02.
- Revenue of $87.3M (+27.8% Y/Y) misses by $1.02M.
Nov. 4, 2015, 5:35 PM
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Sep. 30, 2015, 2:50 PM
- Workday Learning, unveiled at the annual Workday Rising conference, complements the company's mainstay cloud Human Capital Management (HCM) product, and is declared to "offer a more personalized, meaningful learning experience for organizations to evolve and encourage career development at every stage of the employee lifecycle."
- The solution, which won't be generally available until 2H16, is said to integrate with both Workday's (WDAY -3.6%) HCM and financials apps to provide "complete visibility into day-to-day learning activities and overall learning effectiveness," and to "make tailored learning recommendations based on who [users] are, what they do, and their stage in the employee lifecycle."
- The solution will compete with offerings from Workday partners Cornerstone OnDemand (CSOD +0.8%) and Saba Software; Workday promises to continue supporting joint customers. Cornerstone, whose cloud talent management software platform includes a learning product, fell 4.1% yesterday on Workday-related concerns. JMP has defended the company.
- Two days ago: Workday's European customer count tops 100, IBM buys Workday partner
Aug. 6, 2015, 4:15 PM
- Cornerstone OnDemand (NASDAQ:CSOD): Q2 EPS of -$0.16 misses by $0.06.
- Revenue of $82.6M (+34.4% Y/Y) beats by $2.38M.
Aug. 5, 2015, 5:35 PM
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Aug. 5, 2015, 9:49 AM
- Stephens has upgraded Cornerstone OnDemand (CSOD +2%) to Overweight ahead of Thursday afternoon's Q2 report.
- The upgrade comes 6 days after Needham reported positive checks for the talent management software market, and hiked its Q2 Cornerstone billings estimtate in response. The firm also talked up the potential of new Life Sciences features and Cornerstone's recently-launched recruiting analytics platform, and stated it's now more confident in the company's ability to post 25%+ full-year billings growth.
- Update: More details here. Stephens cites encouraging talks with "industry partcipants," and thinks Cornerstone is seeing "outsized success" in the Life Sciences vertical.
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