The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Cornerstone OnDemand beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP loss per share expanded.
Gross margins dropped, operating margins dropped, net margins expanded.
Cornerstone OnDemand recorded revenue of $36.4 million. The 11 analysts polled by S&P Capital IQ looked for revenue of $35.5 million on the same basis. GAAP reported sales were 63% higher than the prior-year quarter's $22.4 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 -$0.06. The 11 earnings estimates compiled by S&P Capital IQ predicted -$0.06 per share. GAAP EPS were -$0.15 for Q4 versus -$0.10 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 70.6%, 90 basis points worse than the prior-year quarter. Operating margin was -21.0%, 40 basis points worse than the prior-year quarter. Net margin was -20.4%, 170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $37.1 million. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $171.5 million. The average EPS estimate is -$0.15.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 24 members out of 44 rating the stock outperform, and 20 members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), nine give Cornerstone OnDemand a green thumbs-up, and 12 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 $31.40.
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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 of Motley 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.