Cornerstone OnDemand Announces Fourth Quarter and Fiscal Year 2013 Financial Results

Record quarterly revenue of $54.9 million, up 51% year-over-year
Record full year revenue of $185.1 million, up 57% year-over-year
Record quarterly bookings of $84.5 million, up 51% year-over-year[1]
Record annual bookings of $231.7 million, up 50% year-over-year[1]
Ended the year with over 1,600 clients and over 14 million users[2]

SANTA MONICA, Calif.- Talent management software provider Cornerstone OnDemand, Inc. (NASDAQ: CSOD) today announced results for its fourth quarter and fiscal year ended December 31, 2013.

Revenue for the fourth quarter of 2013 was $54.9 million, representing a 51% increase compared to the same period in 2012. Revenue for the full fiscal year of 2013 was $185.1 million, an increase of 57% compared to revenue for the same period in 2012.

Bookings, which the Company defines as gross revenue plus the change in deferred revenue for the period, were $84.5 million for the fourth quarter of 2013, representing a 51% increase compared to the same period in 2012.[1] Bookings for the full fiscal year of 2013 were $231.7 million, representing a 50% increase compared to the same period in 2012.[1] Deferred revenue at December 31, 2013 was $138.8 million, which was 50% higher than the balance at December 31, 2012.

"The fourth quarter capped another year of solid execution and record results for Cornerstone," said Adam Miller, the company's President and CEO. "Our business has the benefit of many vectors of available growth, and we made strong progress across all of these dimensions last year. We saw our business expand in each of our segments, verticals, and geographies, as well as within our installed base. Quite simply, we believe that what we do—helping organizations to recruit, train and manage their people—is applicable to any group of people, anywhere in the world, and 2013 provided further validation of this belief."

Gross profit for the fourth quarter of 2013 was $39.4 million, representing a 53% increase compared to the same period in 2012. Gross profit for the full fiscal year of 2013 was $131.6 million, an increase of 58% compared to the same period in 2012. Gross margin for the fourth quarter of 2013 was 71.8%. Gross margin for the full fiscal year of 2013 was 71.1%.

Non-GAAP gross profit for the fourth quarter of 2013 was $40.4 million, representing a 52% increase compared to the same period in 2012.[1] Non-GAAP gross profit for the full fiscal year of 2013 was $135.3 million, an increase of 55% compared to the same period in 2012.[1] Non-GAAP gross margin for the fourth quarter of 2013 was 73.7%.[1] Non-GAAP gross margin for the full fiscal year of 2013 was 73.0%.[1]

The Company's net loss for the fourth quarter of 2013 was $10.8 million, or $0.21 net loss per share. The Company's net loss for the full fiscal year of 2013 was $40.4 million, or $0.79 net loss per share.

Non-GAAP net loss for the fourth quarter of 2013 was $1.7 million, or $0.03 net loss per share. Non-GAAP net loss for the full fiscal year of 2013 was $12.5 million, or $0.24 net loss per share.[1]

For the full fiscal year of 2013, net cash provided by operating activities was $17.4 million as compared to $10.3 million for the same period in 2012. For the full fiscal year of 2013, non-GAAP net cash provided by operating activities was $20.6 million as compared to $11.2 million for the same period in 2012.[1]

At December 31, 2013, the Company's total cash and cash equivalents were $109.6 million, short-term investments were $199.9 million, and accounts receivable were $67.2 million, yielding a total of approximately $376.7 million. The Company's investment in marketable securities had a weighted-average maturity date of approximately seven months.

The Company ended the quarter with over 1,600 clients and over 14 million users.[2]

[1] Bookings, non-GAAP gross profit, non-GAAP gross margin, non-GAAP net loss, 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 "Non-GAAP Financial Measures" and the reconciliations at the end of this release.
[2] Includes contracted clients and active users of our core solution, excluding Cornerstone for Small Business (CSB) and Cornerstone for Salesforce.