Transcript of Csod investor deck second quarter final
- 1. Corporate Overview Third Quarter 2015
- 2. This presentation includes forward-looking statements. In
this presentation, the words believe, may, will, estimate,
continue, anticipate, intend, expect, predict, potential and
similar expressions, as they relate to Cornerstone OnDemand, Inc.
(Cornerstone OnDemand or the Company), business and management, are
intended to identify forward-looking statements. In light of the
risks and uncertainties outlined below, the future events and
circumstances discussed in this presentation may not occur, and
actual results could differ materially from those anticipated or
implied in the forward-looking statements. The Company has based
these forward-looking statements largely on its current
expectations and projections about future events and financial
trends affecting its business. Forward-looking statements should
not be read as guarantees of future performance or results, and
will not necessarily be accurate indications of the times at, or
by, which such performance or results will be achieved.
Forward-looking statements are based on information available at
the date of this presentation and managements good faith belief as
of such date with respect to future events, and are subject to
risks and uncertainties that could cause actual performance or
results to differ materially from those expressed in or suggested
by the forward-looking statements. Important factors that could
cause such differences include, but are not limited to: statements
regarding the Companys business strategies; the Companys
anticipated future operating results and operating expenses; the
Companys ability to attract new clients to enter into subscriptions
for its solution; the Companys ability to service those clients
effectively and induce them to renew and upgrade their deployments
of the Companys solution; the Companys ability to expand its sales
organization to address effectively the new industries, geographies
and types of organizations the company intends to target; the
Companys ability to accurately forecast revenue and appropriately
plan its expenses; market acceptance of enhanced solutions,
alternate ways of addressing learning and talent management needs
or new technologies generally by the Company and its competitors;
continued acceptance of SaaS as an effective method for delivering
learning and talent management solutions and other business
management applications; the attraction and retention of qualified
employees and key personnel; the Companys ability to protect and
defend its intellectual property; costs associated with defending
intellectual property infringement and other claims; events in the
markets for the Companys solution and alternatives to the Companys
solution, as well as in the United States and global markets
generally; future regulatory, judicial and legislative changes in
the Companys industry; changes in the competitive environment in
the Companys industry and the markets in which the Company
operates; and other factors discussed under Risk Factors and
Managements Discussion and Analysis of Financial Condition and
Results of Operations in the Companys periodic reports filed with
the Securities and Exchange Commission (the SEC). Forward-looking
statements speak only as of the date of this presentation. You
should not put undue reliance on any forward-looking statement. The
Company assumes no obligation to update any forward-looking
statements to reflect actual results, changes in assumptions or
changes in other factors affecting future performance or results,
except to the extent required by applicable laws. If the Company
updates one or more forward-looking statements, no inference should
be drawn that it will make additional updates with respect to those
or other forward-looking statements. In considering investing in
the Companys securities, you should read the documents the Company
has filed with the SEC for more complete information about the
Company. You may get these documents for free by visiting EDGAR on
the SEC Web site at www.sec.gov. Safe Harbor
- 3. Our Evolution 3 15 Years Ago
- 4. Our Evolution 4 Then
- 5. Our Evolution 5 Now
- 6. The Opportunity
- 7. 7 Work is Changing WHO WHAT WHERE WHEN HOW
- 8. The Market Need is Real 8
- 9. and the Market is Huge Source: Adapted from Gartner, IDC, US
Census Bureau Addressable Market 20.5 Million Users $31 Billion 400
Million Addressable Seats 76 Million Est. Users Current Market
9
- 10. Scale to Meet the Need
- 11. Cornerstone has a Global Footprint 191 Countries 42
Languages 19 Offices 2,300+ Clients 20M+ Users As of June 30, 2015
11 Note: User and client count figures exclude Growth Edition and
Cornerstone for Salesforce.
- 12. 12 Leader 2015 Magic Quadrant for Talent Management Suites
Market Leader 2014 Integrated Talent Management Marketscape
Industry-Leading Solution
- 13. Organically-Grown Core Suite Acquired by Acquired by
Acquired by Acquired by Acquired by
- 14. Marching to $1B
- 15. The Competitive Landscape Focus on innovation Organically
grown Pure SaaS System of engagement Focus on client success Focus
on integration Built through acquisition Mix of SaaS and On-Premise
System of record Clients multiple levels removed ERP Suite Best Of
Breed 15
- 16. CSOD has Accelerating Client Traction 2003-2004 2009 2011
20132007 2008 2010 2012 20142005-2006 Key Client Additions 12 21 44
73 105 168 280 481 805 1,237 1,631 2,153 0 400 800 1,200 1,600
2,000 2,400 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2014 16
- 17. Expanded Global Footprint Europe, Middle East & Africa
Asia Pacific Select Notable Clients Select Notable Clients Germany
South Africa Spain AustriaFranceUnited Kingdom Japan China
Australia JapanIndiaChina 8 Offices 29 Languages 6.0M Est. Users 7
Offices 9 Languages 1.7M Est. Users 17
- 18. Growth Across All Metrics $11.0 $19.6 $29.3 $46.6 $75.5
$117.9 $185.1 $263.6 2007 2008 2009 2010 2011 2012 2013 2014
Revenue Growth 105 168 280 481 805 1,237 1,631 2,153 2007 2008 2009
2010 2011 2012 2013 2014 Client Growth 0.9 2.1 3.3 4.9 7.5 10.6
14.0 18.1 2007 2008 2009 2010 2011 2012 2013 2014 User Growth (in
millions) (in millions) 18 Note: User and client count figures
exclude Growth Edition and Cornerstone for Salesforce.
- 19. Now with More People with More to Sell 19
- 20. Bolstered by Tier One Global Partners Select Alliances 20
Global Global GlobalGlobal Global
- 21. Opportunities Abound
- 22. Investment Landscape Market Segments Vertical Opportunity
Installed Base Opportunity Extended Enterprise Big Data Platform
22
- 23. Market Segment Opportunity Many, Many Small Business Deals
8 Figure Enterprise Deals CORE BUSINESS 23
- 24. Vertical Opportunity 24 Healthcare Life SciencesPublic
Sector
- 25. Installed Base Penetration 25 have 2+ modules have 3+
modulesNearly
- 26. 0 300 600 900 1,200 1,500 1,800 2,100 2,400 Learning
Performance Succession Connect Compensation Recruiting Onboarding
Existing Client Penetration Client Opportunity NumberofClients
Installed Base Opportunity 26 Calculated based on 2,362 clients
with approximately 8,600 users on average. Approximately $1.5B
opportunity within installed base 60% penetration among other
products results in nearly $700M opportunity
- 27. Extended Enterprise Opportunity 27 Business Bundled
Purchase Standalone Purchase Bundled Purchase Standalone Purchase
Training for a person to fill an ongoing need Training for a person
to close skills gap or personal interest Training for people for
ongoing development Training for people to close skills gaps
Consumers Training Coordinator
- 28. Big Data Opp: CSOD has Massive Data 28 Transactional Data |
Usage Data | Effective Dating | Behavioral Data 20.5M Users | 191
Countries | Decade of Data Position Previous Position Education
Skills Interests Certifications Accomplishments Languages
Organization Preferences Connections Live Feed (Status) Feedback
Actions Snapshots Teams Discussions Badges Likes Comments Industry
Business Unit Department Division Region Groups Hierarchies Cost
Center Grade Location Transcript Performance Skills Goals
Assessments Dev Plans Succession Compensation Applicants Applicant
Status Collaboration Organization Talent User
- 29. Cornerstone Analytics Suite 29 Cornerstone Data
APIsCornerstone ViewCornerstone Reporting Standard & custom
reports embedded with Cornerstone Big data solution for predictive
hiring Cornerstone Selection formerly Evolv Selection Cornerstone
Insights formerly Evolv Insights Highly visual dashboards that can
easily slice/dice talent information Public APIs that can be easily
consumed into 3rd party apps Cornerstone Planning Predictive
analytics for managing talent decisions Big data solution for
workforce planning
- 30. Platform Opportunity: Cornerstone Edge LEARN Cornerstone
API Services Cornerstone App Builder Cornerstone
MarketplaceCornerstone Developer INTEGRATE BUILD MARKET Developer
community to learn and access key resources for Cornerstone Edge
Review Cornerstone API library, documentation, tutorials Create
new, unique applications leveraging Cornerstone APIs &
development tools Easily access, download, install and configure
custom and 3rd party apps 30
- 31. Multi-tenant REST APIs Mobile-Ready Cornerstone Apps
Partner Apps Custom Apps One unified suite to recruit, train,
develop, and connect employees Marketplace of apps integrated and
embedded within Cornerstone Client-specific applications designed
and built by clients or partners 31 Cornerstone Platform Changes
Everything
- 32. Financial Highlights
- 33. Strong Momentum $11.0 $19.6 $29.3 $46.6 $75.5 $117.9 $185.1
$263.6 $0 $60 $120 $180 $240 $300 2007 2008 2009 2010 2011 2012
2013 2014 $15.0 $24.9 $34.5 $60.9 $97.6 $154.3 $231.7 $316.1 $0 $65
$130 $195 $260 $325 2007 2008 2009 2010 2011 2012 2013 2014 (in
millions) 33 (in millions) Revenue Bookings
- 34. Growing Revenue Per User 34 $11.27 $12.14 $13.05 $15.04
$16.40 $10 $11 $12 $13 $14 $15 $16 $17 2010 2011 2012 2013 2014
Calculated using full-year revenue for the period divided by the
midpoint of the beginning and ending user base during the
period.
- 35. November 1999 Founded with $700K raised from angel
investors September 2007 $32.0M in first round of funding led by
Bessemer Venture Partners & Bay Partners March 2009 $12.7M in
second round of funding led by Meritech Capital Partners Initial
public offering March 2011 Primarily financed through debt and
revenue 35 Bootstrapped Mentality since Inception
- 36. Clear Path to Profitability $0.2 $2.2 $11.2 $20.6 $33.3
$43.0 $0 $9 $18 $27 $36 $45 2010 2011 2012 2013 2014 2015E (in
millions) 36 -22% -17% -14% -7% -6% -5% -25% -20% -15% -10% -5% 0%
2010 2011 2012 2013 2014 2015E Non-GAAP Operating Cash Flow
Non-GAAP Net Loss Margin Note: 2015E values reflect the latest
issued guidance. 2015E non-GAAP net loss margin uses the midpoint
of the revenue guidance range of $340.5 - $343.5M
- 37. Not just Software, but Service 37 95% average dollar
retention since inception Many repeat buyers Pioneering Client
Success Framework Business consulting, client success management
and solution architecture
- 38. Thank You!