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Csod investor deck_first_quarter_2014_final
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- 2. This presentation includesforward-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
- 3. Global Leader inSaaS Talent Management 191 Countries 42 Languages 13 Offices 1,950+ Clients 16M+ Users As of September 30, 2014 3 Note: User and client count figures exclude Growth Edition and Cornerstone for Salesforce.
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- 5. Established Market Leadership “LEADER” 2013Forrester Wave for Talent Management A “forward-looking company” Flexible/adaptable products Making mobile and social “everywhere” Significant investment in non-US localization “LEADER” 2014 Integrated Talent Management Marketscape Strong functional capabilities Solid customer references and customer service Streamlined, attractive user experience Non-learning modules are equally robust and capable of being offered alone “LEADER” 2014 Magic Quadrant for Talent Management Suites A leader in overall vendor satisfaction Best-in-class learning and performance, strong mobile support, and good use of social collaboration and game mechanics to engage employees A natively developed suite with a high degree of configurability
- 6. Flourishing Ecosystem ofAlliances Select Distribution & Deployment Alliances Select Technology Alliances 6 Global Global Global Global
- 7. Proven Growth Story $16 $17 $20 $22 $24 $27 $31 $36 $38 $44 $48 $55 $57 $62 $68 Q1Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue Growth 562 640 710 805 891 1,001 1,112 1,237 1,317 1,411 1,505 1,631 1,703 1,826 1,956 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Client Growth 5.2 6.0 7.2 7.5 8.2 9.4 10.3 10.6 11.0 12.3 12.9 14.0 14.5 15.5 16.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 User Growth (in millions) (in millions) 7 Note: User and client count figures exclude Growth Edition and Cornerstone for Salesforce. 2011 20132012 ‘14 2011 20132012 ‘14 2011 20132012 ‘14
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- 9. The New CompetitiveLandscape 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 9
- 10. Organically Grown CoreSuite Acquired by Acquired by Acquired by Acquired by
- 11. Unified Data ModelSingle Support Organization Consistent User InterfaceSingle Reporting Environment Data consolidated into a single, centralized repository Same look-and-feel across clouds Easy to integrate multiple applications Only one call to make 11 The Organic Advantage
- 12. Not just Software,but Service 12 95% average dollar retention since inception Many repeat buyers Pioneering Client Success Framework Business consulting, client success management and solution architecture
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- 14. Financial Snapshot Predictablerecurring revenue model Typically sign three year contracts billed annually Highly efficient use of capital * 2010 and 2011 values exclude the $2.9mm and $2.5mm reductions of revenue during Q4 2010 and Q2 2011, respectively, associated with non-cash charges for common stock warrants issued to ADP ** Annual dollar retention rate defined as the implied monthly recurring revenue under client agreements at the end of a fiscal year, excluding any upsells during that fiscal year, divided by the implied monthly recurring revenue for the same client base at the end of the prior fiscal year ** Historical dollar retention percentage is from ’02-’12 59%Bookings Growth* ‘07 – ‘12 CAGR 61%Revenue Growth* 50% 2013 57% 95%Dollar Retention** 95% Financial Model Highlights Compelling Financial Metrics * Bookings defined as gross revenue plus change in deferred revenue for the period
- 15. Strong Momentum $11.0 $19.6 $29.3 $46.6 $75.5 $117.9 $185.1 $0 $50 $100 $150 $200 2007 20082009 2010 2011 2012 2013 $15.0 $24.9 $34.5 $60.9 $97.6 $154.3 $231.7 $0 $50 $100 $150 $200 $250 2007 2008 2009 2010 2011 2012 2013 (in millions) 15 (in millions) Revenue Bookings
- 16. Growing Revenue PerUser 16 $11.27 $12.14 $13.05 $15.04 4.0% 7.7% 7.5% 15.2% 3% 6% 9% 12% 15% 18% 21% $10 $11 $12 $13 $14 $15 $16 2010 2011 2012 2013 Revenue Per User Revenue Per User Growth Calculated using full-year revenue for the period divided by the midpoint of the beginning and ending user base during the period.
- 17. Consistent Improvement inProfitability $0.2 $2.2 $11.2 $20.6 $0 $4 $8 $12 $16 $20 $24 2010 2011 2012 2013 (in millions) 17 -22% -17% -13% -7% -24% -20% -16% -12% -8% -4% 0% 2010 2011 2012 2013 Non-GAAP Operating Cash Flow Non-GAAP Net Loss Margin
- 18. Getting to $1Billion
- 19. Two Paths to$1 Billion 19 1. Increase breadth of market reach 2. Increase level of client penetration
- 20. Getting to $1Billion – Increase Breadth
- 21. Large Underpenetrated Market Source:Adapted from Gartner, IDC, US Census Bureau Addressable Market 16.6 Million Users $31 Billion 400 Million Addressable Seats 65 Million Est. Users Current Market 21
- 22. Accelerating Client Traction 2003-20042008 2010 20122006 2007 2009 2011 20132005 Key Client Additions 12 21 44 73 105 168 280 481 805 1,237 1,631 0 300 600 900 1,200 1,500 1,800 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 22
- 23. Expanded Global Footprint Europe,Middle East & Africa Asia Pacific Select Notable Clients Select Notable Clients Germany South Africa Spain AustriaFranceUnited Kingdom India China Australia New ZealandIndiaChina 7 Offices 29 Languages 4.9M Est. Users 5 Offices 9 Languages 1.4M Est. Users 23
- 24. x Pushing Up &Down Market 24 Select Global 500 Clients Select Growth Edition Clients
- 25. 25 25% Market Share Increasing MarketShare Current SaaS Market Share
- 26. Getting to $1Billion – Increase Depth
- 27. Growing Penetration AcrossAll Products 27 Succession 11% 29% 2005 2013 CLIENT PENETRATION SELECT NOTABLE CLIENTS Recruiting 0% 9% 2005 2013 CLIENT PENETRATION SELECT NOTABLE CLIENTS Connect 0% 24% 2005 2013 CLIENT PENETRATION SELECT NOTABLE CLIENTS 31% 55% 2005 2013 Performance CLIENT PENETRATION SELECT NOTABLE CLIENTS
- 28. 0 330 660 990 1,320 1,650 1,980 Learning Performance SuccessionConnect Compensation Recruiting Onboarding Existing Client Penetration Client Opportunity NumberofClients Huge Opportunity Within Installed Base 28 Calculated based on 1,956 clients with approximately 8,500 users on average. Over $1B opportunity within installed base, excluding Extended Enterprise
- 29. 2009 <1,000 3,400+ Banks 150,000+ 29 Numerous UseCases Client Spotlight Client Ecosystem Customers Partners Contingent Laborers Live Since: Members: Users: Members Resellers Franchisees Dealers ABA is the industry's premier membership group providing training and education to the banking industry Employees: Extended Enterprise Opportunity
- 30. Strengthens Cornerstone‘s core talentmanagement application suite Accelerates roadmap for workforce planning and predictive analytics strategy Seasoned team with deep machine learning and data science experience 1 6 Enhanced Analytics with Evolv
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