The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Cornerstone OnDemand beat slightly on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share expanded.
Margins dropped across the board.
Cornerstone OnDemand tallied revenue of $30.8 million. The 12 analysts polled by S&P Capital IQ wanted to see sales of $30.2 million on the same basis. GAAP reported sales were 54% higher than the prior-year quarter's $20.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.07. The 12 earnings estimates compiled by S&P Capital IQ forecast -$0.06 per share. GAAP EPS were -$0.15 for Q3 compared to -$0.09 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 70.3%, 290 basis points worse than the prior-year quarter. Operating margin was -25.8%, 1,090 basis points worse than the prior-year quarter. Net margin was -24.8%, 340 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $35.6 million. On the bottom line, the average EPS estimate is -$0.02.
Next year's average estimate for revenue is $117.1 million. The average EPS estimate is -$0.28.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 23 members out of 39 rating the stock outperform, and 16 members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), seven give Cornerstone OnDemand a green thumbs-up, and 11 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 $29.45.
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