2. 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
3. Global Leader in SaaS Talent Management
191
Countries
42
Languages
17
Offices
2,200+
Clients
19M+
Users
As of March 31, 2015
3
Note: User and client count figures exclude Growth Edition and Cornerstone for Salesforce.
5. Established Market Leadership
“LEADER”
2013 Forrester 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 of Alliances
Select Distribution & Deployment Alliances
Select Technology Alliances
6
Global Global Global Global
7. Proven Growth Story
$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)
7
Note: User and client count figures exclude Growth Edition and Cornerstone for Salesforce.
9. The New 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
9
10. Organically Grown Core Suite
Acquired by
Acquired by
Acquired by
Acquired by
Acquired by
11. Unified Data Model Single 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
14. Financial Snapshot
Predictable recurring 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-’14
55%Bookings Growth*
‘07 – ‘14 CAGR
58%Revenue Growth*
95%Dollar Retention**
Financial Model
Highlights
Compelling
Financial Metrics
* Bookings defined as gross revenue plus change in deferred revenue for the period
16. Growing Revenue Per User
16
$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.
21. Large Underpenetrated Market
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
21
23. Expanded Global Footprint
Europe, Middle East & Africa Asia Pacific
Select Notable Clients Select Notable Clients
Germany South Africa Spain
AustriaFranceUnited Kingdom
Japan China Australia
JapanIndiaChina
8 Offices
29 Languages
5.6M Est. Users
5 Offices
9 Languages
1.6M Est. Users
23
24. x
Pushing Up & Down Market
24
Select Global 500 Clients
Select Growth Edition Clients
27. 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
NumberofClients
Huge Opportunity Within Installed Base
27 Calculated based on 2,237 clients with approximately 8,500 users on average.
Approximately $1.5B opportunity within installed base
28. 2009
<1,000
3,400+ Banks
150,000+
28
Numerous Use Cases 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
29. 29
Strengthens Cornerstone‘s
core talent management
application suite
Accelerates roadmap for
workforce planning and
predictive analytics
strategy
Seasoned team with deep
machine learning and data
science experience
1
6
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