Cornerstone OnDemand’s Annual Net Loss Widens

Santa Monica, Calif. — Feb. 14

Learning and talent management software provider Cornerstone OnDemand announced results for its fourth quarter and fiscal year ended Dec. 31.

Gross revenue for the fourth quarter of 2011 was $22.4 million, a 59 percent increase compared with the same period in 2010. Gross revenue for the full fiscal year of 2011 was $75.5 million, a 62 percent increase compared with the full fiscal year of 2010.

Gross profit for the fourth quarter of 2011 was $16 million, a 128 percent year-over-year improvement compared with the same period in 2010. Gross margin for the fourth quarter of 2011 was 71 percent compared with 63 percent in the same period in 2010.

The 2010 period includes a reduction of revenue of $2.9 million associated with the issuance of a common stock warrant issued to ADP. On a non-GAAP basis, gross margin for the fourth quarter of 2011 was 73 percent compared with 71 percent in the same period of 2010.

Gross profit for the full fiscal year of 2011 was $51.7 million, a 76 percent increase compared with 2010. Gross margin for the full fiscal year of 2011 was 71 percent compared with 67 percent in the same period in 2010. On a non-GAAP basis1, gross margin for the full fiscal year of 2011 was 73 percent compared with 70 percent in the same period in 2010.

Cornerstone ended the year with 805 clients and roughly 7.5 million users, representing 67 percent and 52 percent year-over-year growth of the company’s client base and users, respectively.

In accordance with Generally Accepted Accounting Principles, or on a “GAAP” basis, Cornerstone’s net loss for the fourth quarter of 2011 was $5 million compared with net loss of $16.9 million for the same period in 2010.

Net loss for the full fiscal year 2011 was $63.9 million compared with net loss of $48.4 million for 2010.

Source: Cornerstone OnDemand