Cornerstone provides a corporate overview and highlights for the second quarter of 2015. It discusses its evolution over the past 15 years from a smaller company focused on learning into a global leader in talent management solutions. Cornerstone has a large addressable market opportunity of over $31 billion given the changing nature of work. It has achieved strong growth across key metrics like revenue, clients, and users in recent years through organic growth and strategic acquisitions. Cornerstone is well positioned for continued growth by leveraging opportunities in new market segments, industries, its installed base, and emerging technologies like big data and its new platform.
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
9. …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
11. 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.
15. 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
17. 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
17
18. 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.
26. 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
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
28. 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
29. Cornerstone Analytics Suite
29
Cornerstone Data APIsCornerstone ViewCornerstone 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
30. Platform Opportunity: Cornerstone Edge
LEARN
Cornerstone API Services Cornerstone App Builder Cornerstone MarketplaceCornerstone 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
31. 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
34. 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.
35. 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
36. 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
37. 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
