Cornerstone OnDemand Misses Where it Counts

Seth Jayson, The Motley Fool
Updated

Cornerstone OnDemand (NAS: CSOD) reported earnings on May 1. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), Cornerstone OnDemand met expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP loss per share was unchanged. GAAP loss per share grew.


Gross margins contracted, operating margins grew, net margins increased.

Revenue details
 Cornerstone OnDemand tallied revenue of $37.7 million. The 12 analysts polled by S&P Capital IQ expected revenue of $37.8 million on the same basis. GAAP reported sales were 57% higher than the prior-year quarter's $24.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at -$0.10. The 12 earnings estimates compiled by S&P Capital IQ forecast -$0.08 per share. Non-GAAP EPS of -$0.10 were the same as the prior-year quarter. GAAP EPS were -$0.20 for Q1 versus -$0.16 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 70.1%, 140 basis points worse than the prior-year quarter. Operating margin was -26.1%, 780 basis points better than the prior-year quarter. Net margin was -26.4%, 740 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $42.2 million. On the bottom line, the average EPS estimate is -$0.06.

Next year's average estimate for revenue is $181.5 million. The average EPS estimate is -$0.18.

Investor sentiment
 The stock has a one-star rating (out of five) at Motley Fool CAPS, with 23 members out of 41 rating the stock outperform, and 18 members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Cornerstone OnDemand a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cornerstone OnDemand is outperform, with an average price target of $36.64.

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The article Cornerstone OnDemand Misses Where it Counts originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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