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.
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 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.
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.)
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.
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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