Cornerstone OnDemand Announces Second Quarter 2011 Financial Results
Record Q2 gross revenue of $17.4 million, a 64% year-over-year increase
Bookings 1 for Q2 grew 90% year-over-year
Added 89 new clients in Q2, bringing the total to over 640
Signed a blanket purchase agreement with the U.S. Department of the Treasury
Gross revenue for the second quarter of 2011 was $17.4 million, representing a 64% year-over-year increase compared to the same period in 2010.
Bookings1, which the company defines as gross revenue plus change in deferred revenue, was $20.9 million for the second quarter, representing a 90% year-over-year increase.
"We are quite bullish about the strong momentum of the business in the first half of this year, which is certainly the strongest start to a year in our history. We are executing in our core markets, with rapid acceleration in our bookings and new client acquisitions, while simultaneously beginning to expand into new markets. And we are capturing global demand for integrated learning and talent management solutions through a growing international ecosystem of direct sales and indirect sales channels," said Adam Miller, President and CEO.
"We also are pleased to announce that our multi-year investment in public sector operations is now paying dividends," continued Miller. "In the second quarter, we signed a five-year blanket purchase agreement with the U.S. Department of the Treasury that authorizes, but does not guarantee, the purchase of up to $20 million in software and services from Cornerstone depending on actual task orders received from the government. The first task order under the blanket purchase agreement was executed in the second quarter in the amount of approximately $400,000. Because the U.S. Treasury operates the HR Connect Program Office, one of five Federal Shared Service Centers for the civilian sector of the federal government, the blanket purchase agreement gives federal agencies beyond the Treasury the ability to purchase and deploy Cornerstone's solution. We are proud to help bring talent management best practices to the federal sector."
During the second quarter of 2011, the company used approximately $5.0 million in cash flow from operations and approximately $6.3 million in unlevered free cash flow.1 Cornerstone ended the second quarter with more than 640 clients and approximately six million users, representing 76% year-over-year growth of the company's client base.
At June 30, 2011, the company's cash and cash equivalents were $48.7 million and the company's short term investments totaled $34.1 million.
Cornerstone's loss from operations for the second quarter of 2011 was $7.2 million, as compared to a loss from operations of $2.0 million for the same period in 2010, reflecting the company's increased investments in scaling its operations and the impact by a non-cash charge related to a common stock warrant in the amount of $2.5 million.
In accordance with Generally Accepted Accounting Principles, or on a "GAAP" basis, Cornerstone's net loss for the second quarter of 2011 was $7.1 million, as compared to net loss of $5.4 million for the same period in 2010. Net revenue and GAAP net loss for the second quarter of 2011 was impacted by the non-cash charge related to a common stock warrant issued to ADP of $2.5 million. Non-GAAP net loss1 for the second quarter of 2011 was $3.4 million, or $(0.07) per share, as compared to non-GAAP net loss1 of $2.1 million, or $(0.24) per share, for the same period in 2010. Non-GAAP results exclude common stock warrant charges, expenses related to stock-based compensation and related employer-paid payroll taxes, changes in the fair value of preferred stock warrants, accretion related to preferred stock, and amortization of debt discount and issuance costs as well as fees related to the early retirement of debt.
1 Bookings, unlevered free cash flow, non-GAAP net loss and non-GAAP net loss per share are non-GAAP measures. Please see the discussion in the section "Non-GAAP Financial Measures" and in the reconciliations at the end of the release.
Quarterly Conference Call
Cornerstone OnDemand will host a conference call to discuss its second quarter 2011 results at 2:00 p.m. Pacific Time 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. Please join the conference call at least 10 minutes early to register. A replay of the conference call will be available until 9:00 p.m. PT on August 11, 2011 at http://investors.cornerstoneondemand.com/investors/news-and-events/events/default.aspx or via telephone at (855) 859-2056 or (404) 537-3406. The passcode for the replays is: 89569346.
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.