Cornerstone Earnings a Near MissTuesday, August 6, 2013
Cornerstone OnDemand Inc. reported strong earnings for the second quarter on Tuesday, despite nearly missing analyst estimates.
The Santa Monica company, which develops talent management and human resources software, reported a net loss of $8.7 million (17 cents a share) for the quarter ended June 30, compared with a loss of $8.2 million (17 cents) for the same period a year earlier. Cornerstone also reported adjusted, non-GAAP, net loss of 7 cents per share, 1 cent worse than analyst estimates collected by Capital IQ Consensus.
Revenue was up 66 percent for the quarter to $44.3 million, beating Wall Street's $42.1 million estimate.
"In a quarter that saw many software companies come up short, Cornerstone recorded one of its best performances to date," Chief Executive Adam Miller said in a statement. "With our solution improving, global distribution capabilities expanding, and direct competition weakening, our momentum has continued to build and we are excited about the road ahead."
During the earnings call with investors, Miller discussed the Cornerstone's plans to focus more on its technology. He pointed to Cornerstone's efforts to add mobile software and gaming components as ways that the company is adjusting to the changing software landscape.
The company added 99 clients during the quarter to have a client base of more than 1,400 as of June. It also added about 1.3 million users from the previous quarter to reach 12.3 million users.
Shares closed down $1, or more than 2 percent, to $47.41 before the company reported earnings.