Los Angeles Business Journal

Cornerstone Misses Income Mark While Revenue Jumps

By Natalie Jarvey Wednesday, May 1, 2013

Cornerstone OnDemand announced record quarterly revenue on Wednesday although its operating losses grew.

The Santa Monica company, which sells talent management software, reported a first quarter net loss of $9.9 million (-20 cents a share), compared with a loss of $8.1 million (-16 cents) in the same period last year. Revenue was up 57 percent to $37.7 million.

A non-GAAP loss of 10 cents a share for the quarter missed Wall Street expectations by 2 cents.

Cornerstone’s bookings – or gross revenue plus the change in deferred revenue for the period – was up 50 percent from the first quarter last year to $35.9 million.

“As our results demonstrate, the momentum at Cornerstone has continued unabated,” Adam Miller, the company’s chief executive and president, said in a statement. “Even with our success, we have addressed just a fraction of the estimated 400 million potential global seats for our software, leaving us with an enormous market opportunity ahead.”

Prior to the earnings call, Cornerstone shares closed down 13 cents, or less than 1 percent, to $36.15 on the Nasdaq.