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Cornerstone OnDemand Announces Fourth Quarter and Fiscal Year 2014 Financial Results

Record quarterly revenue of $76.4 million, up 39% year-over-year

Record full year revenue of $263.6 million, up 42% year-over-year

Record quarterly bookings of $114.2 million, up 35% year-over-year

Record annual bookings of $316.1 million, up 36% year-over-year1

Record quarterly user additions, ending the year with approximately 18.1 million users2

Record quarterly client additions, ending the year with over 2,100 clients2

SANTA MONICA, Calif. – February 11, 2015 – Talent management software provider Cornerstone OnDemand, Inc. (NASDAQ: CSOD) today announced results for its fourth quarter and year ended December 31, 2014.

Revenue for the fourth quarter of 2014 was $76.4 million, representing a 39% increase compared to the same period in 2013. Revenue for the full year of 2014 was $263.6 million, representing a 42% increase compared to the same period in 2013.

Bookings, which the Company defines as revenue plus the change in deferred revenue for the period, were $114.2 million for the fourth quarter of 2014, representing a 35% increase compared to the same period in 2013.1 Bookings for the full year of 2014 were $316.1 million, representing a 36% increase compared to the same period in 2013.1 Deferred revenue at December 31, 2014 was $191.3 million, representing a 38% increase compared to the balance at December 31, 2013.

"While 2014 certainly presented its challenges, our fourth quarter performance represented a strong finish to the year and we believe is indicative of the significant opportunity that lies ahead," said Adam Miller, the Company's President and CEO. "With the sales force changes fully behind us, the competitive environment in a further weakened state, and our continued commitment to product innovation, Cornerstone is well-positioned for a strong year in 2015."

Gross profit for the fourth quarter of 2014 was $52.9 million, representing a 34% increase compared to the same period in 2013. Gross profit for the full year of 2014 was $185.9 million, representing a 41% increase compared to the same period in 2013.

Non-GAAP gross profit for the fourth quarter of 2014 was $55.8 million, representing a 38% increase compared to the same period in 2013.1 Non-GAAP gross profit for the full year of 2014 was $191.8 million, representing a 42% increase compared to the same period in 2013.1

The Company's operating loss for the fourth quarter of 2014 was $(14.2) million, yielding an operating loss margin of (18.6)%, compared to an operating loss of $(7.8) million, yielding an operating loss margin of (14.3)%, for the fourth quarter of 2013. The Company's operating loss for the full year of 2014 was $(49.9) million, yielding an operating loss margin of (18.9)%, compared to an operating loss of $(34.0) million, yielding an operating loss margin of (18.4)%, for the full year of 2013.

Non-GAAP operating loss for the fourth quarter of 2014 was $(2.0) million, yielding a non-GAAP operating loss margin of (2.6)%, compared to a non-GAAP operating loss of $(0.4) million, yielding a non-GAAP operating loss margin of (0.7)%, for the fourth quarter of 2013.1 Non-GAAP operating loss for the full year of 2014 was $(10.3) million, yielding a non-GAAP operating loss margin of (3.9)%, compared to a non-GAAP operating loss of $(9.6) million, yielding a non-GAAP operating loss margin of (5.2)%, for the full year of 2013.1

The Company's net loss for the fourth quarter of 2014 was $(18.2) million, yielding a net loss margin of (23.8)%, or a $(0.34) net loss per share, compared to a net loss of $(10.8) million, yielding a net loss margin of (19.6)%, or a $(0.21) net loss per share, for the fourth quarter of 2013. The Company's net loss for the full year of 2014 was $(64.9) million, yielding a net loss margin of(24.6)%, or a $(1.22) net loss per share, compare to a net loss of $(40.4) million, yielding a net loss margin of (21.8)%, or a $(0.79) net loss per share, for the full year of 2013.

Non-GAAP net loss for the fourth quarter of 2014 was $(3.9) million, yielding a non-GAAP net loss margin of (5.0)%, or a $(0.07) non-GAAP net loss per share, compared to a non-GAAP net loss of $(1.7) million, yielding a non-GAAP net loss margin of (3.1)%, or a $(0.03) non-GAAP net loss per share, for the fourth quarter of 2013.1 Non-GAAP net loss for the full year of 2014 was $(17.0) million, yielding a non-GAAP net loss margin of (6.4)%, or a $(0.32) non-GAAP net loss per share, compared to a non-GAAP net loss of $(12.5) million, yielding a non-GAAP net loss margin of (6.7)%, or a $(0.24) non-GAAP net loss per share, for the full year of 2013.1

For the full year of 2014, net cash provided by operating activities was $33.0 million as compared to $17.4 million for the same period in 2013. For the full year of 2014, non-GAAP net cash provided by operating activities was $33.3 million as compared to $20.6 million for the same period in 2013.1

At December 31, 2014, the Company's total cash and cash equivalents were $166.6 million, investments were $120.0 million, and accounts receivable were $84.5 million, yielding a total of approximately $371.1 million.

The Company ended the quarter with approximately 18.1 million users, representing the addition of approximately 1.5 million users.2

1

Bookings, non-GAAP gross profit, non-GAAP operating loss, non-GAAP operating loss margin, non-GAAP net loss, non-GAAP net loss margin, non-GAAP net loss per share, and non-GAAP net cash provided by operating activities are non-GAAP financial measures. Please see the discussion in the section ÒNon-GAAP Financial MeasuresÓ and the reconciliations at the end of this release.

2

Includes contracted clients and active users of our Enterprise and Mid-Market solution, excluding Cornerstone for Salesforce and Cornerstone Growth Edition, formerly known as Cornerstone for Small Business.

Quarterly Conference Call

Cornerstone OnDemand, Inc. will host a conference call to discuss its fourth quarter and fiscal year 2014 results at 2:00 p.m. PST (5:00 p.m. ET) today. A live audio webcast of the conference call, together with detailed financial information, can be accessed through the Company's Investor Relations Web site at http://investors.cornerstoneondemand.com/investors/news-and-events/events/default.aspx. The live call can be accessed by dialing (877) 445-4619 (U.S.) or (484) 653-6763 (outside the U.S.) and referencing passcode: 62167300. A replay of the call will also be available at http://investors.cornerstoneondemand.com/investors/news-and-events/events/default.aspx or via telephone until 11:59 p.m. PST on February 14, 2015 by dialing (855) 859-2056 (U.S.) or (404) 537-3406 (outside the U.S.), and referencing passcode: 62167300.

About Cornerstone

Cornerstone was founded with a passion for empowering people through learning and a conviction that people should be your organisation’s greatest competitive advantage.

Cornerstone is a global human capital management leader with a core belief that companies thrive when they help their employees to realize their potential. Putting this belief into practice, Cornerstone offers solutions to help companies strategically manage and continuously develop their talent throughout the entire employee lifecycle.

Featuring comprehensive recruiting, personalised learning, development-driven performance management, and holistic HR planning, Cornerstone’s human capital management platform is successfully used by more than 3,500 global clients of all sizes, spanning more than 42 million users across 192 countries and 43 languages.

Learn more at cornerstoneondemand.co.uk.

Investor Relations Contact

Jason Gold

jgold@csod.com

+1 (310) 526-2531

Media Contact

Susan Hilliar

shilliar@csod.com

+44(0)7767884556
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