Transcript

Corporate Overview

Second Quarter 2015

This presentation includes forward-looking statements. In this presentation, the words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “predict,” “potential” and similar expressions, as they relate to Cornerstone OnDemand, Inc. (“Cornerstone OnDemand” or the “Company”), business and management, are intended to identify forward-looking statements. In light of the risks and uncertainties outlined below, the future events and circumstances discussed in this presentation may not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends affecting its business. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the date of this presentation and management’s good faith belief as of such date with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to:

• statements regarding the Company’s business strategies;

• the Company’s anticipated future operating results and operating expenses;

• the Company’s ability to attract new clients to enter into subscriptions for its solution;

• the Company’s ability to service those clients effectively and induce them to renew and upgrade their deployments of the Company’s solution;

• the Company’s ability to expand its sales organization to address effectively the new industries, geographies and types of organizations the company intends to target;

• the Company’s ability to accurately forecast revenue and appropriately plan its expenses; market acceptance of enhanced solutions, alternate ways of addressing learning and talent management needs or new technologies generally by the Company and its competitors; continued acceptance of SaaS as an effective method for delivering learning and talent management solutions and other business management applications; the attraction and retention of qualified employees and key personnel;

• the Company’s ability to protect and defend its intellectual property; costs associated with defending intellectual property infringement and other claims; events in the markets for the Company’s solution and alternatives to the Company’s solution, as well as in the United States and global markets generally; future regulatory, judicial and legislative changes in the Company’s industry; changes in the competitive environment in the Company’s industry and the markets in which the Company operates; and other factors discussed under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s periodic reports filed with the Securities and Exchange Commission (the “SEC”).

Forward-looking statements speak only as of the date of this presentation. You should not put undue reliance on any forward-looking statement. The Company assumes no obligation to update any forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting future performance or results, except to the extent required by applicable laws. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.

In considering investing in the Company’s securities, you should read the documents the Company has filed with the SEC for more complete information about the Company. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.

Safe Harbor

Our Evolution

3

15 Years Ago…

Our Evolution

4

Then…

Our Evolution

5

Now

The Opportunity

7

Work is Changing

WHO

WHAT

WHERE

WHEN

HOW

The Market Need is Real

8

…and the Market is Huge

Source: Adapted from Gartner, IDC, US Census Bureau

Addressable Market

19.1 Million Users

$31 Billion

400 Million Addressable Seats

72 Million Est. Users

Current Market

9

Scale to Meet the Need

Cornerstone has a Global Footprint

191 Countries

42 Languages

17 Offices

2,200+ Clients

19M+ Users

As of March 31, 2015

11

Note: User and client count figures exclude Growth Edition and Cornerstone for Salesforce.

12

“Leader” 2014 Magic Quadrant for

Talent Management Suites

“Market Leader” 2014 Integrated Talent

Management Marketscape

Industry-Leading Solution

Organically-Grown Core Suite

Acquired by

Acquired by

Acquired by

Acquired by

Acquired by

Marching to $1B

The Competitive Landscape

Focus on innovation

Organically grown

Pure SaaS

System of engagement

Focus on client success

Focus on integration

Built through acquisition

Mix of SaaS and On-Premise

System of record

Clients multiple levels removed

ERP Suite

Best Of Breed

15

CSOD has Accelerating Client Traction

2003-2004 2009 2011 2013 2007

2008 2010 2012 2014 2005-2006

Key Client Additions

12 21 44 73 105 168 280 481

805

1,237

1,631

2,153

0

400

800

1,200

1,600

2,000

2,400

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

16

Expanded Global Footprint Europe, Middle East & Africa Asia Pacific

Select Notable Clients Select Notable Clients

Germany South Africa Spain

Austria France United Kingdom

Japan China Australia

Japan India China

8 Offices

29 Languages

5.6M Est. Users

5 Offices

9 Languages

1.6M Est. Users

17

Growth Across All Metrics

$11.0 $19.6

$29.3

$46.6

$75.5

$117.9

$185.1

$263.6

2007 2008 2009 2010 2011 2012 2013 2014

Revenue Growth

105 168

280

481

805

1,237

1,631

2,153

2007 2008 2009 2010 2011 2012 2013 2014

Client Growth

0.9

2.1

3.3

4.9

7.5

10.6

14.0

18.1

2007 2008 2009 2010 2011 2012 2013 2014

User Growth (in millions) (in millions)

18

Note: User and client count figures exclude Growth Edition and Cornerstone for Salesforce.

Now with More People with More to Sell

19

Bolstered by Tier One Global Partners

Select Alliances

20

Global Global Global Global Global

Opportunities Abound

Investment Landscape

Market Segments

Vertical Opportunity

Installed Base Opportunity

Extended Enterprise

Big Data

Platform

22

Market Segment Opportunity

Many, Many Small Business Deals

8 Figure Enterprise Deals

CORE BUSINESS

23

Vertical Opportunity

24

Healthcare Life Sciences Public Sector

Installed Base Penetration

25

have 2+ modules have 3+ modules Nearly

0

250

500

750

1,000

1,250

1,500

1,750

2,000

2,250

Learning Performance Succession Connect Compensation Recruiting Onboarding

Existing Client Penetration Client Opportunity

Num

ber

of C

lient

s

Installed Base Opportunity

26 Calculated based on 2,237 clients with approximately 8,500 users on average.

Approximately $1.5B opportunity within installed base

60% penetration among other

products results in

nearly $700M

opportunity

Extended Enterprise Opportunity

27

Business

Bundled Purchase

Standalone Purchase

Bundled Purchase

Standalone Purchase

Training for a person to fill an ongoing need

Training for a person to close skills gap or

personal interest

Training for people for ongoing

development

Training for people to close skills gaps

Consumers Training

Coordinator

Big Data Opp: CSOD has “Massive Data”

28

Transactional Data | Usage Data | Effective Dating | Behavioral Data

19.1M Users | 191 Countries | Decade of Data

Position Previous Position Education Skills Interests Certifications Accomplishments Languages Organization Preferences …

Connections Live Feed (Status) Feedback Actions Snapshots Teams Discussions Badges Likes Comments …

Industry Business Unit Department Division Region Groups Hierarchies Cost Center Grade Location …

Transcript Performance Skills Goals Assessments Dev Plans Succession Compensation Applicants Applicant Status …

Collaboration

Organization

Talent

User

Cornerstone Analytics Suite

29

Cornerstone Data APIs Cornerstone View Cornerstone Reporting

Standard & custom reports embedded with Cornerstone

Big data solution for predictive hiring

Cornerstone Selection formerly Evolv Selection

Cornerstone Insights formerly Evolv Insights

Highly visual dashboards that can easily slice/dice talent information

Public APIs that can be easily consumed into 3rd party apps

Cornerstone Planning

Predictive analytics for managing talent decisions

Big data solution for workforce planning

Platform Opportunity: Cornerstone Edge

LEARN

Cornerstone API Services Cornerstone App Builder Cornerstone Marketplace Cornerstone Developer

INTEGRATE BUILD MARKET

Developer community to learn and access key

resources for Cornerstone Edge

Review Cornerstone API library, documentation,

tutorials

Create new, unique applications leveraging Cornerstone APIs &

development tools

Easily access, download, install and configure custom

and 3rd party apps

30

Multi-tenant REST APIs Mobile-Ready

Cornerstone Apps Partner Apps Custom Apps One unified suite to recruit, train, develop, and connect employees

Marketplace of apps integrated and embedded within Cornerstone

Client-specific applications designed and built by clients or partners

31

Cornerstone Platform Changes Everything

Financial Highlights

Strong Momentum

$11.0 $19.6

$29.3 $46.6

$75.5

$117.9

$185.1

$263.6

$0

$60

$120

$180

$240

$300

2007 2008 2009 2010 2011 2012 2013 2014

$15.0 $24.9

$34.5

$60.9

$97.6

$154.3

$231.7

$316.1

$0

$65

$130

$195

$260

$325

2007 2008 2009 2010 2011 2012 2013 2014

(in millions)

33

(in millions) Revenue Bookings

Growing Revenue Per User

34

$11.27

$12.14

$13.05

$15.04

$16.40

$10

$11

$12

$13

$14

$15

$16

$17

2010 2011 2012 2013 2014

Calculated using full-year revenue for the period divided by the midpoint of the beginning and ending user base during the period.

November 1999

Founded with $700K raised from

angel investors

September 2007

$32.0M in first round of funding led by Bessemer

Venture Partners & Bay Partners

March 2009

$12.7M in second round of funding led by Meritech Capital Partners

Initial public offering

March 2011

Primarily financed through debt and

revenue

35

Bootstrapped Mentality since Inception

Clear Path to Profitability

$0.2 $2.2

$11.2

$20.6

$33.3

$43.0

$0

$9

$18

$27

$36

$45

2010 2011 2012 2013 2014 2015E

(in millions)

36

-22%

-17%

-14%

-7% -6%

-5%

-25%

-20%

-15%

-10%

-5%

0%2010 2011 2012 2013 2014 2015E

Non-GAAP Operating Cash Flow Non-GAAP Net Loss Margin

Note: 2015E non-GAAP net loss margin uses the midpoint of the revenue guidance range of $337.5 - $341.5M

Not just Software, but Service

37

95% average dollar retention since inception

Many repeat buyers

Pioneering Client Success Framework

Business consulting, client success management and solution architecture

Thank You!


Top Related