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Csod investor deck third quarter1052015
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- 2. Safe Harbor This presentationincludes 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. 2
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- 4. 2010 Our Evolution The LastDecade… 4
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- 8. The Market Needis Real 8 Ben Schiller | May 8, 2015 What Do Workers Want from the Boss? Walter Frick | November 3, 2015 When Treating Workers Well Leads to More Innovation Adam Miller | March 26, 2015 3 Things Millennials Want in a Career (hint: it’s not more money) Sylvia Voerhauser-Smith | October 15, 2015 Is HR Disconnected? Here’s How HR Can Reconnect and Embrace the Future Lauren Weber | September 30, 2015 How to Get More Women Into the Workforce
- 9. The Market isHUGE 9 22.2MUSERS ADDRESSABLE MARKET $31B 81MEST. USERS CURRENT MARKET 400MADDRESSABLE SEATS CORNERSTONE Source: Adapted from Gartner, IDC, US Census Bureau
- 10. Scale to Meetthe Need
- 11. 11Note: User andclient count figures exclude Growth Edition and Cornerstone for Salesforce. CLIENTS 2,400+ USERS 22M+ COUNTRIES 191 LANGUAGES 42 OFFICES 19 San Francisco Santa Monica Sunnyvale Sao Paulo Madrid Paris London Amsterdam Stockholm Dusseldorf Munich Tel Aviv Bangalore Mumbai Hong Kong Tokyo Sydney Auckland Global Reach As of September 30, 2015 New Delhi
- 12. Leadership Position inTalent Management 12 Niche Players Visionaries Challengers Leaders Magic Quadrant for Talent Management Suites Lumesse COMPLETENESS OF VISION ABILITYTOEXECUTE Source: Gartner (August 2015) Deltek (HRsmart) Technomedia Haufe PeopleFluent SumTotal Halogen Software Saba Oracle (Talent Management Cloud) SAP (SuccessFactors) Talentsoft
- 13. Organically-Grown Core Suite Acquiredby Acquired by Acquired by Acquired by Acquired by 13
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- 15. • Focus oninnovation • 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 The Competitive Landscape 15
- 16. 2003-2004 2009 201120132007 2008 2010 2012 20142005-2006 Key Client Additions CSOD has Accelerating Client Traction 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
- 17. Expanded Global Footprint 17 Europe,Middle East & Africa Select Notable Clients Select Notable Clients JAPAN CHINA AUSTRALIA JAPAN INDIACHINA Asia Pacific SOUTH AFRICA SPAIN AUSTRIAFRANCEUNITED KINGDOM GERMANY 8 29 OFFICES LANGUAGES EST. USERS 7 9 1.8M OFFICES LANGUAGES EST. USERS 6.2M
- 18. Growth Across AllMetrics 18 $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) Note: User and client count figures exclude Growth Edition and Cornerstone for Salesforce.
- 19. Now with MorePeople, More to Sell ANALYTICSLEARNING PERFORMANCE RECURITING
- 20. Bolstered by TierOne Global Partners 20 Content PartnersService Partners Technology Partners
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- 22. Investment Landscape ü MarketSegments ü Vertical Opportunity ü Installed Base Opportunity ü Extended Enterprise ü Big Data ü Link ü Platform 22
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- 24. Healthcare Vertical Opportunity Public SectorLife Sciences 24
- 25. HAVE 2+ MODULES 2/3 Installed BasePenetration 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 3+ 3+ 3+ 3+ 3+ 3+ 3+ 3+ 3+ 3+ 3+ 3+ 3+ HAVE 3+ MODULES 1/2Nearly 25
- 26. Installed Base Opportunity 26 0 250 500 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 LearningPerformance Succession Connect Compensation Recruiting Onboarding Existing Client Penetration Client Opportunity NumberofClients Approximately $1.5B opportunity within installed base 60% penetration among other products results in nearly $700M opportunity Calculated based on 2,466 clients with approximately 9,000 users on average
- 27. Extended Enterprise Opportunity Engageand enable the entire ecosystem • Training for profit • Partner enablement • Customer engagement • Crowdsourcing 27
- 28. Cornerstone has “MassiveData” 28 User ü Position ü Previous Position ü Education ü Skills ü Certifications ü Accomplishments ü Languages ü Organization ü Preferences Collaboration ü Connections ü Live Feed (Status) ü Feedback ü Actions ü Snapshot ü Teams ü Discussions ü Badges ü Likes ü Comments Talent Organization ü Transcript ü Performance ü Skills ü Goals ü Assessments ü Dev Plans ü Succession ü Compensation ü Applicants ü Applicant Status ü Industry ü Business Unit ü Department ü Division ü Region ü Groups ü Hierarchies ü Cost Center ü Grade ü Location 22.2M USERS | 191 COUNTRIES | DECADE OF DATA
- 29. Cornerstone Analytics 29 REPORT DISCOVERPREDICT PLAN Cornerstone Reporting Standard & custom reports embedded with Cornerstone Cornerstone View Highly visual dashboards that can easily slice/dice talent information Cornerstone Insights Predictive analytics for managing talent decisions Cornerstone Planning Big data solution for workforce planning
- 30. 30 DEEPER INSIGHTS Understand the real dynamicsbehind your business. SMARTER DECISIONS Tap into real-time data to drive smarter talent decisions. DATA-DRIVEN RECOMMENDATIONS Actionable predictions & recommendations. The Power of Predictive Analytics
- 31. One Global Systemof Record • Unify employee and talent data • Gain a complete workforce view • Manage the complete employee lifecycle • Easily feed data to/from other systems Cornerstone Link
- 32. 32 GLOBAL VIEW Maintain one centralized sourceof employee data. REDUCE RISKS Eliminate error-prone manual processes to improve compliance. SAVINGS Free up valuable human capital resources and streamline processes. INSIGHTS Integrate employee data for deeper insights. The Power of Link
- 33. Platform Opportunity: Cornerstone Edge 33 LEARNINTEGRATE BUILD MARKET Cornerstone Developer Developer community to learn and access key resources for Cornerstone Edge Cornerstone API Services Review Cornerstone API library, documentation, tutorials Cornerstone App Builder Create new, unique applications leveraging Cornerstone APIs & development tools Cornerstone Marketplace Easily access, download, install and configure custom and 3rd party apps
- 34. Cornerstone Platform Changes Everything 34 Multi-tenantREST 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
- 35. 35 The Power ofPlatform AGILITY Solve your rapidly changing business needs. SPEED Build and deploy apps quickly, or use existing apps. SIMPLICITY Create apps with ease using EDGE builder tools. COST Save money leveraging our state-of-the-art SaaS infrastructure.
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- 37. Strong Momentum 37 $11.0 $19.6 $29.3 $46.6 $75.5 $117.9 $185.1 $263.6 $0 $60 $120 $180 $240 $300 2007 20082009 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) (in millions) Revenue Bookings
- 38. Growing Revenue PerUser 38 $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.
- 39. Bootstrapped Mentality Since Inception 39 November 1999 Foundedwith raised from angel investors September 2007 in first round of funding led by Bessemer Venture Partners & Bay Partners Primarily financed through debt and revenue March 2009 in second round of funding led by Meritech Capital Partners Initial public offering March 2011 $32.0M $12.7M $700K
- 40. Clear Path toProfitability 40 $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) -21.9% -17.0% -13.5% -6.7% -6.4% -5.6% -25% -20% -15% -10% -5% 0% 2010 2011 2012 2013 2014 2015E Non-GAAP Operating Cash Flow Non-GAAP Net Loss Margin Note: 2015E values reflect the latest issued guidance. 2015E non-GAAP net loss margin uses the midpoint of the revenue guidance range of $340.5 - $342.0M
- 41. 41 Not Just Software, But Servicetoo! • 95% average dollar retention since inception • Many repeat buyers • Pioneering Client Success Framework • Business consulting, client success management and solution architecture 41
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