35
Corporate Overview First Quarter 2016

Csod investor deck first quarter fina lv3

Embed Size (px)

Citation preview

Page 1: Csod investor deck first quarter fina lv3

Corporate OverviewFirst Quarter 2016

Page 2: Csod investor deck first quarter fina lv3

Safe HarborThis 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 management’s 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 Company’s business strategies; • The Company’s anticipated future operating results and operating expenses;

• The Company’s ability to attract new clients to enter into subscriptions for its solution; • The Company’s ability to service those clients effectively and induce them to renew and upgrade their deployments of the Company’s solution; • The Company’s ability to expand its sales organization to address effectively the new industries, geographies and types of organizations the company intends to target;

• The Company’s 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 Company’s ability to protect and defend its intellectual property; costs associated with defending intellectual property infringement and other claims; events in the markets for the Company’s solution and alternatives to the Company’s solution, as well as in the United States and global markets generally; future regulatory, judicial and legislative changes in the Company’s industry; changes in the competitive environment in the Company’s industry and the markets in which the Company operates; and other factors discussed under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s 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 Company’s 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.

2

Page 3: Csod investor deck first quarter fina lv3

Cornerstone Today

Page 4: Csod investor deck first quarter fina lv3

1999

Our Evolution16 Years Ago…

4

Page 5: Csod investor deck first quarter fina lv3

2010

Our EvolutionThe Last Decade…

5

Page 6: Csod investor deck first quarter fina lv3

2016

Our EvolutionToday

6

Page 7: Csod investor deck first quarter fina lv3

7Note: User and client count figures exclude Growth Edition and Cornerstone for Salesforce.

CLIENTS

2,500+USERS

23M+COUNTRIES

191LANGUAGES

42OFFICES

19

San Francisco

Santa Monica

Sunnyvale

Sao Paulo

MadridParis

LondonAmsterdam

Stockholm

DusseldorfMunich

Tel Aviv

Bangalore

MumbaiHong Kong

Tokyo

Sydney

Auckland

Today with Global Reach…

As of December 31, 2015

New Delhi

Page 8: Csod investor deck first quarter fina lv3

Acquired by

Acquired by

Acquired by

Acquired by

Acquired by

8

…and an Organically-Grown Core Suite

Page 9: Csod investor deck first quarter fina lv3

Cornerstone is the Talent Management Leader

9

Niche Players Visionaries

Challengers Leaders

Magic Quadrant for Talent Management Suites

Lumesse

COMPLETENESS OF VISION

ABI

LITY

TO E

XEC

UTE

Source: Gartner (August 2015)

Deltek (HRsmart)

Technomedia

Haufe PeopleFluentSumTotal

Halogen Software

Saba

Oracle (Talent Management Cloud)

SAP (SuccessFactors)

Talentsoft

Page 10: Csod investor deck first quarter fina lv3

Bolstered by Tier One Global Partners

10

Select Alliances

Page 11: Csod investor deck first quarter fina lv3

11

x

The Ability to Integrate with Everyone

Page 12: Csod investor deck first quarter fina lv3

OVER TIME, MORE PEOPLE + MORE TO SELL

LEARNING

PERFORMANCE

RECRUITING

ANALYTICS

Now with More People with More to Sell

Page 13: Csod investor deck first quarter fina lv3

Strong Results

13

$11.0 $19.6

$29.3 $46.6

$75.5

$117.9

$185.1

$263.6

$339.7

$0

$50

$100

$150

$200

$250

$300

$350

2007 2008 2009 2010 2011 2012 2013 2014 2015

$15.0 $24.9

$34.5

$60.9

$97.6

$154.3

$231.7

$316.1

$400.5

$0

$60

$120

$180

$240

$300

$360

$420

2007 2008 2009 2010 2011 2012 2013 2014 2015

(in millions) (in millions)

Revenue Bookings

Page 14: Csod investor deck first quarter fina lv3

Growing ASPs Across All Geographies

14

+48%

+15%

+44%

North America Europe,

Middle East & Africa

Asia Pacific

Page 15: Csod investor deck first quarter fina lv3

Growth Across All Metrics

15

$11.0$19.6

$29.3$46.6

$75.5

$117.9

$185.1

$263.6

$339.7

2007 2008 2009 2010 2011 2012 2013 2014 2015

Revenue Growth

105 168

280

481

805

1,237

1,631

2,153

2,595

2007 2008 2009 2010 2011 2012 2013 2014 2015

Client Growth

0.92.1

3.3

4.9

7.5

10.6

14.0

18.1

23.8

2007 2008 2009 2010 2011 2012 2013 2014 2015

User Growth(in millions) (in millions)

Note: User and client count figures exclude Growth Edition and Cornerstone for Salesforce.

Page 16: Csod investor deck first quarter fina lv3

Clear Path to Profitability

16

$(0.7)

$1.4

$9.1 $11.9

$22.3

$29.3

$47.5

($5)

$5

$15

$25

$35

$45

$55

2010 2011 2012 2013 2014 2015 2016E

(in millions)

-21.9%

-17.0%

-13.4%

-6.7% -6.4% -6.2%

0.2%

-25%

-20%

-15%

-10%

-5%

0%

5%

2010 2011 2012 2013 2014 2015 2016E

Non-GAAP Free Cash Flow

Non-GAAP Net Loss Margin

*Non-GAAP free cash flow calculation does not include capitalized software development costsNote: 2016E values reflect the latest issued guidance. 2016E non-GAAP net loss margin uses the midpoint of the revenue

guidance range of $425 - $433M

Page 17: Csod investor deck first quarter fina lv3

Our OpportunityMarching to $1 Billion

Page 18: Csod investor deck first quarter fina lv3

Work is Changing

18

WHO

WHAT

WHERE

WHEN

HOW

Page 19: Csod investor deck first quarter fina lv3

The Market Need is Real

19

Ben Schiller | May 8, 2015

What Do Workers Want from the Boss?

Walter Frick | November 3, 2015

When Treating Workers Well Leads to More

Innovation

Adam Miller | March 26, 2015

3 Things Millennials Want in a Career

(hint: it’s not more money)

Sylvia Voerhauser-Smith | October 15, 2015

Is HR Disconnected? Here’s How HR Can

Reconnect and Embrace the Future

Lauren Weber | September 30, 2015

How to Get More Women Into the Workforce

Page 20: Csod investor deck first quarter fina lv3

The Market is HUGE

20

23.8MUSERS

ADDRESSABLE MARKET

$31B

85MEST. USERS

CURRENT MARKET

400MADDRESSABLE SEATS

CORNERSTONE

Source: Adapted from Gartner, IDC, US Census Bureau

Page 21: Csod investor deck first quarter fina lv3

Opportunities Abound

ü Continued Core Market Sales

ü Global Expansion

ü Market Segmentation

ü Vertical Opportunity

ü Installed Base Opportunity

ü Extended Enterprise

21

Page 22: Csod investor deck first quarter fina lv3

Accelerating Client Traction

22

2003-2005 2010 2012 20142008

2009 2011 2013 20152006-2007

Key Client Additions

12 21 44 73 105 168 280481

805

1,2371,631

2,153

2,595

0400800

1,2001,6002,0002,4002,800

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Page 23: Csod investor deck first quarter fina lv3

Expanded Global Footprint

23

Europe, Middle East & Africa

Select Notable Clients Select Notable Clients

JAPAN CHINA

AUSTRALIA

JAPAN

INDIACHINA

Asia Pacific

SWITZERLAND SPAIN

NETHERLANDSFRANCEUNITED KINGDOM

GERMANY

8 29OFFICES LANGUAGES EST. USERS

7 9 1.8MOFFICES LANGUAGES EST. USERS

6.4M

Page 24: Csod investor deck first quarter fina lv3

24

Seven & Eight Figure Deals

America’s largest insurance companySecond largest bank in the U.S.Largest bank in Switzerland

Largest aerospace manufacturer in EuropeLargest auto-parts manufacturer in the worldLargest multinational pharma company in the worldLargest baking company in the worldLargest bank in GermanyLargest professional services firm in the world

Largest full service restaurant company in the worldLargest tax service provider in the world

New Sales in

Q4 2015:

Page 25: Csod investor deck first quarter fina lv3

25

Purpose-built talent management solution for Growing Businesses

• Mobile ready

• Self configurable

• 3 hour deployment

• Bundled training

Growth Edition for Small Business

Page 26: Csod investor deck first quarter fina lv3

HAVE 2+ MODULES

2/3

Installed Base Penetration

2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+

2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+ 2+

3+ 3+ 3+ 3+ 3+ 3+ 3+ 3+ 3+ 3+

3+ 3+ 3+

HAVE 3+ MODULES

1/2Nearly

26

More Than

2+

Page 27: Csod investor deck first quarter fina lv3

Installed Base Opportunity

27

0200400600800

1,0001,2001,4001,6001,8002,0002,2002,4002,600

Learning Performance Succession Connect Compensation Recruiting Onboarding

Existing Client Penetration Client Opportunity

Num

ber o

f Clie

nts

Nearly $2B opportunity within installed base

60% penetration

among other

products results in nearly $800M

opportunity

Calculated based on 2,595 clients with approximately 9,200 users on average

Page 28: Csod investor deck first quarter fina lv3

Extended Enterprise Opportunity

28

Engage & enable the entire ecosystem

• Training for profit

• Partner enablement

• Customer engagement

• Crowdsourcing

Page 29: Csod investor deck first quarter fina lv3

The FutureBeyond 2016

Page 30: Csod investor deck first quarter fina lv3

30

üFIRST to the Cloud

üFIRST to do Integrated Talent Management

üFIRST to include SocialNetworking in TalentManagement

üFIRST to do client success management

üFIRST to understand consumerization of the enterprise

üFIRST to integrate full machine learning

Cornerstone is Visionary

Page 31: Csod investor deck first quarter fina lv3

Cornerstone has “Massive Data”

31

Userü Positionü Previous Positionü Educationü Skillsü Certificationsü Accomplishmentsü Languagesü Organizationü Preferences

Collaborationü Connectionsü Live Feed (Status)ü Feedbackü Actionsü Snapshotü Teamsü Discussionsü Badgesü Likesü Comments

Talent Organizationü Transcriptü Performanceü Skills ü Goalsü Assessmentsü Dev Plansü Successionü Compensationü Applicantsü Applicant Status

ü Industryü Business Unitü Departmentü Divisionü Regionü Groupsü Hierarchiesü Cost Centerü Gradeü Location

23.8M USERS | 191 COUNTRIES | DECADE OF DATA

Page 32: Csod investor deck first quarter fina lv3

32

REPORT

Cornerstone Reporting

Standard & custom reports embedded

with Cornerstone

DISCOVER

Cornerstone View

Highly visual dashboards that can easily slice/ dice

talent information

PLAN

Cornerstone Planning

Big data solution for workforce planning

PREDICT

Cornerstone Insights

Predictive analytics for managing

talent decisions

Cornerstone Analytics

32

Page 33: Csod investor deck first quarter fina lv3

LEARN

Cornerstone DeveloperDeveloper

community to learn and access key

resources for Cornerstone Edge

INTEGRATE

Cornerstone API & Integrations

Explore the Edge API library,

documentation, tutorials

BUILD

Cornerstone Edge Builder

Create new, unique applications leveraging

Cornerstone APIs & developer tools

MARKET

Cornerstone MarketplaceEasily access,

download, install and configure custom and 3rd

party apps

33

Page 34: Csod investor deck first quarter fina lv3

The Power of Platform

34

Multi-tenant REST APIs Mobile-Ready

Cornerstone Apps Partner Apps Custom AppsOne unified suite to recruit, train, develop, & connect

employees

Marketplace of apps integrated & embedded within

Cornerstone

Client-specific applications designed & built by clients

or partners

Page 35: Csod investor deck first quarter fina lv3

Thank You!