Fri, Nov. 6, 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
Thu, Nov. 5, 4:12 PM
Wed, Nov. 4, 5:35 PM
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Wed, Sep. 30, 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
Thu, Aug. 6, 4:15 PM
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Wed, Aug. 5, 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.
Tue, May 19, 6:54 PM
- As part of a change in analyst coverage for cloud software stocks, Needham's Scott Berg has launched coverage on Workday (NYSE:WDAY) and HealthStream (NASDAQ:HSTM) at Buy, upgraded Cornerstone OnDemand (NASDAQ:CSOD) to Strong Buy, and upgraded Ultimate Software (NASDAQ:ULTI) to Buy after the close. Though their product lines differ, all 4 companies have exposure to the cloud HR/talent management space.
- Berg on Workday: "[W]e believe WDAY has the combination that growth investors seek: large market, well positioned product versus industry megatrends, and a financial model that yields significant revenue visibility ... Although we believe the company's current valuation assumes almost flawless near-term sales execution to further expand its valuation multiples, we believe its execution within a HCM market exhibiting high demand creates a positive risk/reward scenario..." The remarks come ahead of Workday's May 26 FQ1 report.
- Berg on HealthStream: "We believe HealthStream uniquely benefits from two significant mega-trends; 1) the strong secular adoption rates within the Talent Management Enterprise Software subsector, and also 2) an environment that is increasingly regulated, requiring its products’ end users to evaluate competencies and train employees on a more frequent basis." The cloud healthcare software firm is a month removed from posting a Q1 beat.
- WDAY +0.7% AH to $91.28. CSOD +1.9% to $32.44. ULTI +1.2% to $170.29. HealthStream hasn't yet moved AH.
Tue, May 19, 5:40 PM
Wed, May 6, 7:10 PM
- In addition to beating Q1 revenue estimates (while missing on EPS), Cornerstone OnDemand (NASDAQ:CSOD) has guided on its CC (webcast) for 2015 revenue of $337.5M-$341.5M, up from prior guidance of $336M-$341M and mostly above a $337.9M consensus. EPS guidance of -$0.30 is slightly below a -$0.29 consensus.
- The cloud talent management software vendor's Q1 bookings totaled $63.5M, +28% Y/Y but trailing revenue of $74.4M (seasonality played a role). The deferred revenue balance rose 38% to $180.9M.
- GAAP operating expenses rose 27% Y/Y to $67M, a much slower pace than Q4's 42%. The customer base rose by ~100 Q/Q to over 2,200, and end-users by ~1M to over 19.1M.
- Shares have risen to $31.25 AH. Cornerstone says it plans to show off analytics tools and a cloud app platform (PaaS) solution (presumably for apps that integrate with Cornerstone's) at its May 11-13 Convergence conference.
- Q1 results, PR
Wed, May 6, 4:04 PM
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Wed, Apr. 29, 3:02 PM
- After following markets lower most of today, enterprise cloud software vendors have jumped thanks to a Bloomberg report stating cloud CRM software giant Salesforce ($51B market cap) has been approached by a potential buyer, and is working with bankers to field offers.
- Gainers include Workday (WDAY +6%), ServiceNow (NOW +4.3%), NetSuite (N +4.3%), Marketo (MKTO +2.7%), Zendesk (ZEN +1.2%), Cornerstone OnDemand (CSOD +1.6%), Castlight (CSLT +2.4%), and Jive Software (JIVE +1.5%).
- Though the cloud software market has seen plenty of M&A activity, a Salesforce deal would easily be its largest. Workday ($17.5B market cap) is the second-largest enterprise cloud pure-play. ServiceNow ($11.6B) is #3.
Wed, Apr. 1, 3:14 PM
- With the Nasdaq down 0.8%, only a handful of tech companies are posting big gains. Notable gainers include search toolbar/mobile ad provider Perion (PERI +4.2%) , low-end Android OEM InfoSonics (IFON +7.1%), and Chinese mobile app developer Sungy Mobile (GOMO +8.2%).
- Notable decliners include local reviews leader Yelp (YELP -4.6%), cloud IT service management software vendor ServiceNow (NOW -4.5%), cloud talent management software vendor Cornerstone OnDemand (CSOD -4%), enterprise cloud storage/file-sharing platform Box (BOX -5.5%), software analytics tool provider New Relic (NEWR -5.9%), online family care marketplace marketplace Care.com (CRCM -5%), and e-commerce software provider Demandware (DWRE -4.9%).
- Perion announced this morning it has added Mike Vorhaus, president of consulting firm Magid Advisors, to its board. ServiceNow has announced its Q1 report will arrive on April 16. Yelp, which has been volatile in recent weeks, is now just slightly over $3 above a 52-week low of $42.10. Care.com is less than $1 away from a post-IPO low of $6.50.
- Previously covered: Solar stocks, cybersecurity stocks, Axcelis, GoDaddy, ON Semi, Voltari
Thu, Feb. 12, 12:51 AM
- Though Cornerstone OnDemand (NASDAQ:CSOD) beat Q4 revenue estimates and posted in-line EPS, it guided on its CC (transcript) for Q1 revenue of $72M-$73M (below a $76.4M consensus), and full-year revenue of $336M-$341M and EPS of -$0.29 (below a consensus of $341.6M and -$0.14).
- The cloud talent management software insists a strong dollar is the main culprit. CEO Adam Miller: "[T]he guidance is solely reflecting the FX hit, otherwise it’s exactly where the Street was, I think from next year perspective ... our pipeline is much stronger at the beginning of this year for strategic accounts than it was a year ago, and we’re feeling good about our ability to compete at the end of the market with the largest best-known companies in the world."
- Q4 bookings totaled $115.2M, +35% Y/Y and soundly exceeding revenue of $76.4M. For the whole of 2014, bookings rose 36% to $316.1M. That helped the deferred revenue balance rise 38% to $191.3M.
- 197 clients were added in Q4, raising the total base to over 2,100. GAAP operating expenses rose 42% Y/Y to $67M.
- Shares fell 6.7% in AH trading to $33.50.
- Q4 results, PR
Wed, Feb. 11, 4:10 PM
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