Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of CornerStone OnDemand (NAS: CSOD) have jumped by as much as 13% today after the company reported third-quarter earnings.
So what: Revenue in the third quarter soared 54% to $30.8 million, and bookings were up to $42.7 million, up 78%. Non-GAAP net loss was $3.6 million, or $0.07 per share. Investors didn't seem to mind that the bottom line was a penny shy of forecasts, in part because the top line came out better than expected.
Now what: The company now has over 1,100 clients and roughly 10.3 million users. The bookings figure, which includes an adjustment for the change in deferred revenue, was particularly strong. Bookings for the first three quarters of the year were up 66% relative to the same period a year ago, and deferred revenue on the balance sheet is up 82% to $72.6 million. Following the results, Nomura Securities boosted its estimates on the stock, keeping its buy rating while moving its price target from $30 to $32.
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The article Why CornerStone OnDemand Shares Jumped originally appeared on Fool.com.
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