Why Cornerstone OnDemand Popped

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 (Nasdaq: CSOD  ) have popped by north of 11% after the company reported record quarterly results.

So what: Revenue jumped 52% to a record $24 million, which resulted in an adjusted loss of $4.9 million, or $0.10 per share. Both of those figures were just about what investors were expecting. Gross profit rose 54% to reach a record $17.2 million.

Now what: First-quarter bookings also increased by 67%, representing a healthy sales pipeline for the company. That strength in bookings growth is helping to trigger some bullish analyst comments. Nomura Securities is maintaining its "buy" rating, saying the bookings came in above its estimates. Needham & Company is doing likewise, also citing the "impressive and accelerated bookings growth" as contributing to its own "buy" recommendation.

Interested in more info on Cornerstone OnDemand? Add it to your watchlist by clicking here.

Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1887646, ~/Articles/ArticleHandler.aspx, 4/19/2014 1:46:35 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement