CURRENT REPORT | ||
PURSUANT TO SECTION 13 OR 15(d) OF THE | ||
SECURITIES EXCHANGE ACT OF 1934 |
(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
( (Registrant’s telephone number, including area code) (Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): | |||||
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
(Nasdaq Global Select Market) |
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | |||||
Emerging growth company | |||||
☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. |
Exhibit No. | Description | ||||
99.1 | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
Cornerstone OnDemand, Inc. | ||
/s/ Trish Coughlin | ||
Trish Coughlin | ||
Interim Chief Financial Officer |
1 Financial measures presented on a constant currency basis, non-GAAP operating income, non-GAAP operating income margin, non-GAAP net income, non-GAAP diluted net income per share, unlevered free cash flow, and unlevered free cash flow margin are non-GAAP financial measures. | |||||
2 In order to translate the financial outlook for entities reporting in GBP to USD and EUR to USD, the following exchange rates have been applied to revenue for the fourth quarter and year ending December 31, 2020: | |||||
$1.30 USD per GBP | |||||
$1.18 USD per EUR |
September 30, 2020 | December 31, 2019 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 170,937 | $ | 215,907 | |||||||
Short-term investments | — | 201,579 | |||||||||
Accounts receivable, net | 156,738 | 131,105 | |||||||||
Deferred commissions, current portion | 38,874 | 33,215 | |||||||||
Prepaid expenses and other current assets | 30,577 | 30,512 | |||||||||
Total current assets | 397,126 | 612,318 | |||||||||
Capitalized software development costs, net | 51,683 | 50,023 | |||||||||
Property and equipment, net | 33,892 | 36,526 | |||||||||
Operating right-of-use assets | 78,874 | 72,944 | |||||||||
Deferred commissions, net of current portion | 76,621 | 74,563 | |||||||||
Long-term investments | 9,043 | 60,192 | |||||||||
Intangible assets, net | 458,006 | 9,440 | |||||||||
Goodwill | 960,420 | 47,453 | |||||||||
Deferred tax assets | 2,928 | 1,045 | |||||||||
Other assets | 10,843 | 1,597 | |||||||||
Total assets | $ | 2,079,436 | $ | 966,101 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 9,165 | $ | 3,803 | |||||||
Accrued expenses | 90,665 | 78,075 | |||||||||
Deferred revenue, current portion | 370,494 | 339,522 | |||||||||
Operating lease liabilities, current portion | 17,230 | 7,235 | |||||||||
Debt, current portion | 10,047 | — | |||||||||
Other liabilities | 15,696 | 11,015 | |||||||||
Total current liabilities | 513,297 | 439,650 | |||||||||
Debt, net of current portion | 1,224,646 | 293,174 | |||||||||
Deferred revenue, net of current portion | 4,150 | 6,945 | |||||||||
Operating lease liabilities, net of current portion | 68,929 | 67,195 | |||||||||
Deferred tax liabilities | 17,396 | — | |||||||||
Other liabilities, non-current | 6,267 | 655 | |||||||||
Total liabilities | 1,834,685 | 807,619 | |||||||||
Stockholders’ equity: | |||||||||||
Common stock, $0.0001 par value | 6 | 6 | |||||||||
Additional paid-in capital | 808,592 | 682,717 | |||||||||
Accumulated deficit | (566,223) | (524,680) | |||||||||
Accumulated other comprehensive income | 2,376 | 439 | |||||||||
Total stockholders’ equity | 244,751 | 158,482 | |||||||||
Total liabilities and stockholders’ equity | $ | 2,079,436 | $ | 966,101 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenue | $ | 199,498 | $ | 144,952 | $ | 533,992 | $ | 426,929 | |||||||||||||||
Cost of revenue 1,2 | 64,503 | 37,167 | 164,427 | 111,049 | |||||||||||||||||||
Gross profit | 134,995 | 107,785 | 369,565 | 315,880 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing 1,2 | 71,850 | 57,815 | 192,122 | 171,011 | |||||||||||||||||||
Research and development 1 | 29,665 | 25,695 | 82,088 | 77,778 | |||||||||||||||||||
General and administrative 1,2 | 28,884 | 20,562 | 79,229 | 65,741 | |||||||||||||||||||
Acquisition-related costs | 4,852 | — | 31,756 | — | |||||||||||||||||||
Restructuring1 | 1,362 | — | 11,095 | — | |||||||||||||||||||
Total operating expenses | 136,613 | 104,072 | 396,290 | 314,530 | |||||||||||||||||||
(Loss) income from operations | (1,618) | 3,713 | (26,725) | 1,350 | |||||||||||||||||||
Other expense: | |||||||||||||||||||||||
Interest expense | (19,609) | (3,321) | (43,329) | (9,889) | |||||||||||||||||||
Other, net | 5,817 | (1,018) | (61) | (2,720) | |||||||||||||||||||
Other expense, net | (13,792) | (4,339) | (43,390) | (12,609) | |||||||||||||||||||
Loss before income tax provision | (15,410) | (626) | (70,115) | (11,259) | |||||||||||||||||||
Income tax (provision) benefit3 | (371) | (591) | 28,572 | (2,227) | |||||||||||||||||||
Net loss | $ | (15,781) | $ | (1,217) | $ | (41,543) | $ | (13,486) | |||||||||||||||
Net loss per share, basic and diluted | $ | (0.25) | $ | (0.02) | $ | (0.66) | $ | (0.23) | |||||||||||||||
Weighted average common shares outstanding, basic and diluted | 64,375 | 60,652 | 63,204 | 59,841 | |||||||||||||||||||
1 Includes stock-based compensation as follows: | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Cost of revenue | $ | 2,205 | $ | 1,748 | $ | 7,028 | $ | 4,670 | |||||||||||||||
Sales and marketing | 7,197 | 7,915 | 21,409 | 20,771 | |||||||||||||||||||
Research and development | 4,283 | 4,285 | 11,807 | 12,800 | |||||||||||||||||||
General and administrative | 4,047 | 5,570 | 14,553 | 17,473 | |||||||||||||||||||
Restructuring | 192 | — | 400 | — | |||||||||||||||||||
Total | $ | 17,924 | $ | 19,518 | $ | 55,197 | $ | 55,714 |
2 Includes amortization of intangible assets as follows: | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Cost of revenue | $ | 9,400 | $ | 1,047 | $ | 18,459 | $ | 3,380 | |||||||||||||||
Sales and marketing | 14,277 | — | 25,039 | — | |||||||||||||||||||
General and administrative | 607 | — | 1,060 | — | |||||||||||||||||||
Total | $ | 24,284 | $ | 1,047 | $ | 44,558 | $ | 3,380 | |||||||||||||||
3 Includes a discrete income tax benefit of approximately $26.7 million during the nine months ended September 30, 2020 related to release of valuation allowance against previously reserved deferred tax assets. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Cash flows from operating activities | |||||||||||||||||||||||
Net loss | $ | (15,781) | $ | (1,217) | $ | (41,543) | $ | (13,486) | |||||||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||||||||||
Depreciation and amortization | 37,031 | 10,814 | 80,190 | 30,848 | |||||||||||||||||||
Accretion of debt discount and amortization of debt issuance costs | 2,815 | 1,060 | 7,502 | 3,130 | |||||||||||||||||||
Amortization (accretion) of purchased investment premium or discount, net | — | (175) | 41 | (900) | |||||||||||||||||||
Net foreign currency and other (gain) loss | (3,927) | 1,250 | 4,063 | 2,504 | |||||||||||||||||||
Stock-based compensation expense | 17,924 | 19,518 | 55,197 | 55,714 | |||||||||||||||||||
Deferred income taxes | (1,445) | — | (32,081) | — | |||||||||||||||||||
Changes in operating assets and liabilities, net of acquisitions: | |||||||||||||||||||||||
Accounts receivable | 10,909 | 2,026 | 32,243 | 23,900 | |||||||||||||||||||
Deferred commissions | (5,511) | (5,400) | (8,715) | (14,130) | |||||||||||||||||||
Prepaid expenses and other assets | 4,982 | 5,635 | 14,302 | 12,589 | |||||||||||||||||||
Accounts payable | (10,650) | (7,646) | (6,852) | (6,040) | |||||||||||||||||||
Accrued expenses | (7,038) | 4,156 | (4,545) | (5,563) | |||||||||||||||||||
Deferred revenue | (438) | (6,474) | (43,349) | (39,048) | |||||||||||||||||||
Other liabilities | 4,276 | 931 | 5,456 | 3,437 | |||||||||||||||||||
Net cash provided by operating activities | 33,147 | 24,478 | 61,909 | 52,955 | |||||||||||||||||||
Cash flows from investing activities | |||||||||||||||||||||||
Purchases of marketable investments | — | (201,899) | (20,419) | (201,981) | |||||||||||||||||||
Maturities and sales of investments | — | 8,266 | 272,173 | 206,040 | |||||||||||||||||||
Capital expenditures | (635) | (6,713) | (2,910) | (15,987) | |||||||||||||||||||
Capitalized software costs | (6,772) | (4,708) | (20,296) | (18,835) | |||||||||||||||||||
Cash paid for acquisitions, net of cash acquired | 2,664 | — | (1,295,508) | — | |||||||||||||||||||
Net cash used in investing activities | (4,743) | (205,054) | (1,066,960) | (30,763) | |||||||||||||||||||
Cash flows from financing activities | |||||||||||||||||||||||
Proceeds from term loan debt, net of discount | — | — | 979,582 | — | |||||||||||||||||||
Payments of debt issuance and modification costs | (161) | — | (30,429) | — | |||||||||||||||||||
Proceeds from employee stock plans | 3,326 | 18,861 | 15,953 | 33,072 | |||||||||||||||||||
Repurchases of common stock | — | (13,530) | — | (13,530) | |||||||||||||||||||
Payment of tax withholdings for employee stock plans | — | — | — | (5,469) | |||||||||||||||||||
Net cash provided by financing activities | 3,165 | 5,331 | 965,106 | 14,073 | |||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 2,791 | (1,123) | 3 | (1,123) | |||||||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 34,360 | (176,368) | (39,942) | 35,142 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 141,605 | 395,106 | 215,907 | 183,596 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash at end of period1 | $ | 175,965 | $ | 218,738 | $ | 175,965 | $ | 218,738 | |||||||||||||||
Supplemental cash flow data | |||||||||||||||||||||||
Cash paid for interest | $ | 30,189 | $ | 8,625 | $ | 38,873 | $ | 17,356 | |||||||||||||||
Cash paid for income taxes | 1,182 | 518 | 3,725 | 1,488 | |||||||||||||||||||
Non-cash investing and financing activities: | |||||||||||||||||||||||
Assets acquired under capital leases and other financing arrangements | $ | — | $ | — | $ | — | $ | 1,276 | |||||||||||||||
Capitalized assets financed by accounts payable and accrued expenses | 56 | 1,205 | 56 | 1,205 | |||||||||||||||||||
Capitalized stock-based compensation | 1,352 | 1,314 | 5,467 | 3,427 | |||||||||||||||||||
Issuance of common stock for partial consideration for acquisition | — | — | 32,889 | — | |||||||||||||||||||
Increase in debt discount as a result of modification of Convertible Notes | — | — | 18,598 | — | |||||||||||||||||||
1 Below is a reconciliation of cash, cash equivalents, and restricted cash. | |||||||||||
As of September 30, | |||||||||||
2020 | 2019 | ||||||||||
Cash and cash equivalents | $ | 170,937 | $ | 218,738 | |||||||
Restricted cash included in prepaid expenses and other current assets | 3,752 | — | |||||||||
Restricted cash included in other assets | 1,276 | — | |||||||||
Total cash, cash equivalents, and restricted cash | $ | 175,965 | $ | 218,738 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Reconciliation of cost of revenue, gross profit, and gross margin: | |||||||||||||||||||||||
Revenue | $ | 199,498 | $ | 144,952 | $ | 533,992 | $ | 426,929 | |||||||||||||||
Cost of revenue | 64,503 | 37,167 | 164,427 | 111,049 | |||||||||||||||||||
Gross profit | $ | 134,995 | $ | 107,785 | $ | 369,565 | $ | 315,880 | |||||||||||||||
Gross margin | 67.7 | % | 74.4 | % | 69.2 | % | 74.0 | % | |||||||||||||||
Cost of revenue | $ | 64,503 | $ | 37,167 | $ | 164,427 | $ | 111,049 | |||||||||||||||
Adjustments to cost of revenue: | |||||||||||||||||||||||
Stock-based compensation1 | (2,205) | (1,748) | (6,465) | (4,670) | |||||||||||||||||||
Amortization of intangible assets | (9,400) | (1,047) | (18,459) | (3,380) | |||||||||||||||||||
Total adjustments to cost of revenue | (11,605) | (2,795) | (24,924) | (8,050) | |||||||||||||||||||
Non-GAAP cost of revenue | 52,898 | 34,372 | 139,503 | 102,999 | |||||||||||||||||||
Non-GAAP gross profit | $ | 146,600 | $ | 110,580 | $ | 394,489 | $ | 323,930 | |||||||||||||||
Non-GAAP gross margin | 73.5 | % | 76.3 | % | 73.9 | % | 75.9 | % | |||||||||||||||
Reconciliation of (loss) income from operations and operating margin: | |||||||||||||||||||||||
(Loss) income from operations | $ | (1,618) | $ | 3,713 | $ | (26,725) | $ | 1,350 | |||||||||||||||
Operating margin | (0.8) | % | 2.6 | % | (5.0) | % | 0.3 | % | |||||||||||||||
Adjustments to (loss) income from operations: | |||||||||||||||||||||||
Stock-based compensation1, 3 | 17,732 | 19,518 | 50,736 | 55,714 | |||||||||||||||||||
Amortization of intangible assets | 24,284 | 1,047 | 44,558 | 3,380 | |||||||||||||||||||
Acquisition-related costs2 | 4,852 | — | 31,756 | — | |||||||||||||||||||
Restructuring3 | 1,362 | — | 11,095 | — | |||||||||||||||||||
Total adjustments to (loss) income from operations | 48,230 | 20,565 | 138,145 | 59,094 | |||||||||||||||||||
Non-GAAP operating income | $ | 46,612 | $ | 24,278 | $ | 111,420 | $ | 60,444 | |||||||||||||||
Non-GAAP operating income margin | 23.4 | % | 16.7 | % | 20.9 | % | 14.2 | % | |||||||||||||||
1 The difference between stock-based compensation presented above and stock-based compensation as reported in the consolidated statement of operations for the nine months ended September 30, 2020, represents an amount accrued for cash bonuses as of December 31, 2019, which was settled in equity during the first quarter of 2020. | |||||||||||||||||||||||
Nine Months Ended | |||||||||||||||||||||||
September 30, | |||||||||||||||||||||||
2020 | |||||||||||||||||||||||
Cost of revenue | $ | 6,465 | |||||||||||||||||||||
Sales and marketing | 20,499 | ||||||||||||||||||||||
Research and development | 10,393 | ||||||||||||||||||||||
General and administrative | 13,379 | ||||||||||||||||||||||
Total | $ | 50,736 | |||||||||||||||||||||
2 Costs related to the acquisitions of Saba Software, Inc. and Clustree SAS primarily consisting of external professional services directly associated with the acquisitions, such as advisory fees, accounting and legal costs, filing fees, due diligence, and integration costs. | |||||||||||||||||||||||
3 Stock-based compensation related to restructuring is presented in the restructuring line item. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net loss | $ | (15,781) | $ | (1,217) | $ | (41,543) | $ | (13,486) | |||||||||||||||
Adjustments to net loss | |||||||||||||||||||||||
Stock-based compensation1, 3 | 17,732 | 19,518 | 50,736 | 55,714 | |||||||||||||||||||
Amortization of intangible assets | 24,284 | 1,047 | 44,558 | 3,380 | |||||||||||||||||||
Acquisition-related costs2 | 4,852 | — | 31,756 | — | |||||||||||||||||||
Restructuring3 | 1,362 | — | 11,095 | — | |||||||||||||||||||
Accretion of debt discount and amortization of debt issuance costs4 | 2,815 | 1,060 | 7,502 | 3,130 | |||||||||||||||||||
Income tax benefit5 | — | — | (26,659) | — | |||||||||||||||||||
Total adjustments to net loss | 51,045 | 21,625 | 118,988 | 62,224 | |||||||||||||||||||
Non-GAAP net income | $ | 35,264 | $ | 20,408 | $ | 77,445 | $ | 48,738 | |||||||||||||||
Non-GAAP basic net income per share | $ | 0.55 | $ | 0.34 | $ | 1.23 | $ | 0.81 | |||||||||||||||
Non-GAAP diluted net income per share | $ | 0.51 | $ | 0.31 | $ | 1.14 | $ | 0.74 | |||||||||||||||
Weighted-average common shares outstanding, basic | 64,375 | 60,652 | 63,204 | 59,841 | |||||||||||||||||||
Non-GAAP weighted-average common shares outstanding, diluted | 68,759 | 65,961 | 68,060 | 65,485 |
1 The difference between stock-based compensation presented above and stock-based compensation as reported in the consolidated statement of operations for the nine months ended September 30, 2020, represents an amount accrued for cash bonuses as of December 31, 2019, which was settled in equity during the first quarter of 2020. | ||
2 Costs related to the acquisitions of Saba Software, Inc. and Clustree SAS primarily consisting of external professional services directly associated with the acquisitions, such as advisory fees, accounting and legal costs, filing fees, due diligence, and integration costs. | ||
3 Stock-based compensation related to restructuring is presented in the restructuring line item. | ||
4 Debt discount accretion and debt issuance cost amortization has been recorded in connection with our issuance of (i) $1.0047 billion of term loan debt on April 22, 2020; and (ii) $300.0 million in convertible notes on December 8, 2017 as well as the modification of these convertible notes on April 20, 2020 to extend the maturity date from July 1, 2021 to March 17, 2023. These expenses represent non-cash charges that have been recorded in accordance with the authoritative accounting literature for such transactions. | ||
5 A discrete income tax benefit of approximately $26.7 million was recognized during the nine months ended September 30, 2020 related to a release of valuation allowance against previously reserved deferred tax assets. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Reconciliation of unlevered free cash flow: | |||||||||||||||||||||||
Net cash provided by operating activities | $ | 33,147 | $ | 24,478 | $ | 61,909 | $ | 52,955 | |||||||||||||||
Capital expenditures | (635) | (6,713) | (2,910) | (15,987) | |||||||||||||||||||
Capitalized software costs | (6,772) | (4,708) | (20,296) | (18,835) | |||||||||||||||||||
Cash paid for interest | 30,189 | 8,625 | 38,873 | 17,356 | |||||||||||||||||||
Unlevered free cash flow | $ | 55,929 | $ | 21,682 | $ | 77,576 | $ | 35,489 | |||||||||||||||
Unlevered free cash flow margin | 28.0 | % | 15.0 | % | 14.5 | % | 8.3 | % |
FY 2019 | FY 2020 | |||||||||||||||||||||||||||||||
Q1'19 | Q2'19 | Q3'19 | Q4'19 | Q1'20 | Q2'20 | Q3'20 | FY17 | FY18 | FY19 | |||||||||||||||||||||||
SELECTED METRICS: | ||||||||||||||||||||||||||||||||
Number of customers1 | 3,367 | 3,423 | 3,446 | 3,508 | 3,522 | 6,308 | 6,229 | 3,250 | 3,333 | 3,508 | ||||||||||||||||||||||
% y/y | 8.6 | % | 6.9 | % | 5.7 | % | 5.3 | % | 4.6 | % | 84.3 | % | 80.8 | % | 11.4 | % | 2.6 | % | 5.3 | % | ||||||||||||
% q/q | 1.0 | % | 1.7 | % | 0.7 | % | 1.8 | % | 0.4 | % | 79.1 | % | (1.3) | % | n/a | n/a | n/a | |||||||||||||||
Number of employees | 2,017 | 2,034 | 1,986 | 1,993 | 1,975 | 3,184 | 3,027 | 1,891 | 1,953 | 1,993 | ||||||||||||||||||||||
% y/y | 10.3 | % | 9.9 | % | 5.0 | % | 2.0 | % | (2.1) | % | 56.5 | % | 52.4 | % | 3.7 | % | 3.3 | % | 2.0 | % | ||||||||||||
% q/q | 3.3 | % | 0.8 | % | (2.4) | % | 0.4 | % | (0.9) | % | 61.2 | % | (4.9) | % | n/a | n/a | n/a | |||||||||||||||
Annual dollar retention rate | n/a | n/a | n/a | n/a | n/a | n/a | n/a | 93.5 | % | 92.8 | % | 90.3 | % | |||||||||||||||||||
Annual recurring revenue (in thousands) | n/a | n/a | n/a | n/a | n/a | n/a | n/a | 439,000 | 510,000 | 575,000 | ||||||||||||||||||||||
Net cash provided by operating activities (in thousands) | 7,294 | 21,183 | 24,478 | 62,594 | 5,988 | 22,774 | 33,147 | 67,510 | 90,253 | 115,549 | ||||||||||||||||||||||
Unlevered free cash flow (in thousands) | 4,337 | 9,470 | 21,682 | 54,714 | 6,253 | 15,394 | 55,929 | 43,680 | 63,471 | 90,203 | ||||||||||||||||||||||
Unlevered free cash flow margin | 3.1 | % | 6.7 | % | 15.0 | % | 36.6 | % | 4.2 | % | 8.4 | % | 28.0 | % | 9.1 | % | 11.8 | % | 15.6 | % | ||||||||||||
FINANCIAL DATA (in thousands, except percentages): | ||||||||||||||||||||||||||||||||
Revenue | 140,117 | 141,860 | 144,952 | 149,594 | 150,136 | 184,358 | 199,498 | — | 537,891 | 576,523 | ||||||||||||||||||||||
Subscription revenue | 131,256 | 132,562 | 137,446 | 141,704 | 144,421 | 177,217 | 185,643 | — | 473,052 | 542,968 | ||||||||||||||||||||||
% y/y growth | 16.0 | % | 15.5 | % | 15.7 | % | 12.2 | % | 10.0 | % | 33.7 | % | 35.1 | % | — | — | 14.8 | % | ||||||||||||||
% y/y growth constant currency2 | 18.2 | % | 17.3 | % | 17.2 | % | 12.4 | % | 10.7 | % | n/a | n/a | — | — | 16.2 | % | ||||||||||||||||
Subscription revenue % of total revenue | 93.7 | % | 93.4 | % | 94.8 | % | 94.7 | % | 96.2 | % | 96.1 | % | 93.1 | % | — | 87.9 | % | 94.2 | % | |||||||||||||
Income (loss) from operations | 1,231 | (3,594) | 3,713 | 10,583 | (2,739) | (22,368) | (1,618) | — | (7,769) | 11,933 | ||||||||||||||||||||||
MARGIN DATA: | ||||||||||||||||||||||||||||||||
Gross margin | 76.0 | % | 71.7 | % | 74.4 | % | 74.5 | % | 72.1 | % | 68.5 | % | 67.7 | % | — | 73.2 | % | 74.1 | % | |||||||||||||
Sales and marketing % of revenue | 38.9 | % | 41.4 | % | 39.9 | % | 37.9 | % | 36.9 | % | 35.2 | % | 36.0 | % | — | 41.8 | % | 39.5 | % | |||||||||||||
Research and development % of revenue | 19.8 | % | 17.2 | % | 17.7 | % | 15.6 | % | 16.0 | % | 15.4 | % | 14.9 | % | — | 14.3 | % | 17.5 | % | |||||||||||||
General and administrative % of revenue | 16.4 | % | 15.6 | % | 14.2 | % | 13.9 | % | 16.5 | % | 13.8 | % | 14.5 | % | — | 16.7 | % | 15.0 | % | |||||||||||||
Acquisition-related costs % of revenue | — | — | — | — | 4.5 | % | 10.9 | % | 2.4 | % | — | 0.2 | % | — | ||||||||||||||||||
Restructuring % of revenue | — | — | — | — | — | 5.3 | % | 0.7 | % | — | 1.7 | % | — | |||||||||||||||||||
Operating margin | 0.9 | % | (2.5) | % | 2.6 | % | 7.1 | % | (1.8) | % | (12.1) | % | (0.8) | % | — | (1.4) | % | 2.1 | % | |||||||||||||
NON-GAAP MARGIN DATA: | ||||||||||||||||||||||||||||||||
Non-GAAP gross margin | 77.7 | % | 73.7 | % | 76.3 | % | 76.3 | % | 74.6 | % | 73.7 | % | 73.5 | % | — | 74.1 | % | 76.0 | % | |||||||||||||
Non-GAAP sales and marketing % of revenue | 34.6 | % | 36.6 | % | 34.4 | % | 33.2 | % | 31.7 | % | 26.4 | % | 25.3 | % | — | 37.2 | % | 34.7 | % | |||||||||||||
Non-GAAP research and development % of revenue | 16.8 | % | 14.1 | % | 14.8 | % | 13.5 | % | 13.8 | % | 13.9 | % | 12.7 | % | — | 12.1 | % | 14.8 | % | |||||||||||||
Non-GAAP general and administrative % of revenue | 12.3 | % | 11.3 | % | 10.3 | % | 10.6 | % | 12.5 | % | 11.8 | % | 12.1 | % | — | 13.2 | % | 11.1 | % | |||||||||||||
Non-GAAP operating margin | 14.0 | % | 11.7 | % | 16.7 | % | 18.9 | % | 16.6 | % | 21.6 | % | 23.4 | % | — | 11.8 | % | 15.4 | % | |||||||||||||
Non-GAAP research and development plus capitalized software % of revenue | 22.1 | % | 18.8 | % | 18.0 | % | 17.4 | % | 18.7 | % | 17.2 | % | 16.1 | % | — | 16.8 | % | 19.1 | % | |||||||||||||
FOREIGN EXCHANGE RATES: | ||||||||||||||||||||||||||||||||
GBP to USD average period rate | 1.30 | 1.29 | 1.23 | 1.29 | 1.28 | 1.23 | 1.32 | 1.29 | 1.34 | 1.28 | ||||||||||||||||||||||
GBP to USD end of period spot rate | 1.30 | 1.27 | 1.23 | 1.32 | 1.23 | 1.23 | 1.28 | 1.35 | 1.27 | 1.32 | ||||||||||||||||||||||
EUR to USD average period rate | 1.14 | 1.12 | 1.11 | 1.11 | 1.10 | 0.94 | 1.11 | 1.14 | 1.18 | 1.12 | ||||||||||||||||||||||
EUR to USD end of period spot rate | 1.12 | 1.14 | 1.09 | 1.12 | 1.10 | 1.12 | 1.17 | 1.20 | 1.14 | 1.12 | ||||||||||||||||||||||
1 During the second quarter of 2020, we adjusted our method of determining customer count to exclude customers that are sold through resellers that share one tenant or instance of our product. The numbers included here reflect this change. We continue to exclude customers from our Cornerstone for Salesforce, PiiQ, Grovo, Workpop, and Clustree products from our customer count metrics. | ||||||||||||||||||||||||||||||||
2 We have historically presented constant currency information, a non-GAAP financial measure, to provide a framework for assessing how our underlying business performed excluding the effect of foreign currency fluctuations. However, due to the acquisition of Saba in the second quarter of 2020, constant currency results on a combined company basis were not presented for the second and third quarter in 2020 as the historical comparative periods did not include the combined company results for a full quarter. |
Cover |
Nov. 04, 2020 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Nov. 04, 2020 |
Entity Registrant Name | Cornerstone OnDemand, Inc. |
Entity File Number | 001-35098 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 13-4068197 |
Entity Address, Address Line One | 1601 Cloverfield Blvd. |
Entity Address, Address Line Two | Suite 620 South |
Entity Address, City or Town | Santa Monica |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 90404 |
City Area Code | 310 |
Local Phone Number | 752-0200 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, par value $0.0001 per share |
Trading Symbol | CSOD |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Amendment Flag | false |
Entity Central Index Key | 0001401680 |
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