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Corporate Overview First Quarter 2016

Csod investor deck first quarter

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Corporate Overview First Quarter 2016

Safe Harbor 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 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

Cornerstone Today

1999

Our Evolution 16 Years Ago…

4

2010

Our Evolution The Last Decade…

5

2016

Our Evolution Today

6

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

CLIENTS

2,500+ USERS

23M+ COUNTRIES

191 LANGUAGES

42 OFFICES

19

San Francisco

Santa Monica

Sunnyvale

Sao Paulo

Madrid Paris

London Amsterdam

Stockholm

Dusseldorf Munich

Tel Aviv

Bangalore

Mumbai

Hong Kong

Tokyo

Sydney

Auckland

Today with Global Reach…

As of December 31, 2015

New Delhi

Acquired by

Acquired by

Acquired by

Acquired by

Acquired by

8

…and an Organically-Grown Core Suite

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

EX

ECU

TE

Source: Gartner (August 2015)

Deltek (HRsmart)

Technomedia

Haufe PeopleFluent

SumTotal

Halogen Software

Saba

Oracle (Talent Management Cloud)

SAP (SuccessFactors)

Talentsoft

Bolstered by Tier One Global Partners

10

Select Alliances

11

x

The Ability to Integrate with Everyone WDAY

removed logos:

Oracle/ People Soft

removed logos:

SAP removed logos:

OVER TIME, MORE PEOPLE + MORE TO SELL

LEARNING

PERFORMANCE

RECRUITING

ANALYTICS

Now with More People with More to Sell

Strong Results

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$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

Growing ASPs Across All Geographies

14

+48%

+15%

+44%

North America Europe,

Middle East & Africa

Asia Pacific

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

0.9

2.1

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.

Clear Path to Profitability

16

$(1.6) $(1.4)

$3.1

$10.7

$17.0

$31.8

$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 costs

Note: 2016E values reflect the latest issued guidance. 2016E non-GAAP net loss margin uses the midpoint of the revenue

guidance range of $425 - $433M

Our Opportunity Marching to $1 Billion

Work is Changing

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WHO

WHAT

WHERE

WHEN

HOW

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

The Market is HUGE

20

23.8M USERS

ADDRESSABLE MARKET

$31B

85M EST. USERS

CURRENT MARKET

400M ADDRESSABLE SEATS

CORNERSTONE

Source: Adapted from Gartner, IDC, US Census Bureau

Opportunities Abound

ü  Continued Core Market Sales

ü  Global Expansion

ü  Market Segmentation

ü  Vertical Opportunity

ü  Installed Base Opportunity

ü  Extended Enterprise

21

Accelerating Client Traction

22

2003-2005 2010 2012 2014 2008

2009 2011 2013 2015 2006-2007

Key Client Additions

12 21 44 73 105 168 280 481

805

1,237

1,631

2,153

2,595

0

400

800

1,200

1,600

2,000

2,400

2,800

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

Expanded Global Footprint

23

Europe, Middle East & Africa

Select Notable Clients Select Notable Clients

JAPAN CHINA

AUSTRALIA

JAPAN

INDIA CHINA

Asia Pacific

SWITZERLAND SPAIN

NETHERLANDS FRANCE UNITED KINGDOM

GERMANY

8 29 OFFICES LANGUAGES EST. USERS

7 9 1.8M OFFICES LANGUAGES EST. USERS

6.4M

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Seven & Eight Figure Deals

ü America’s largest insurance company ü Second largest bank in the U.S. ü Largest bank in Switzerland ü Largest aerospace manufacturer in Europe ü Largest auto-parts manufacturer in the world ü Largest multinational pharma company in the world ü Largest baking company in the world

ü Largest bank in Germany ü Largest professional services firm in the world ü Largest full service restaurant company in the world ü Largest tax service provider in the world

New Sales in

Q4 2015:

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Purpose-built talent management solution for Growing Businesses

•  Mobile ready

•  Self configurable

•  3 hour deployment

•  Bundled training

Growth Edition for Small Business

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+

Installed Base Opportunity

27

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

2,400

2,600

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

Extended Enterprise Opportunity

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Engage & enable the entire ecosystem

•  Training for profit

•  Partner enablement

•  Customer engagement

•  Crowdsourcing

The Future Beyond 2016

30

ü FIRST to the Cloud

ü FIRST to do Integrated Talent Management

ü FIRST to include Social Networking in Talent Management

ü FIRST to do client success management

ü FIRST to understand consumerization of the enterprise

ü FIRST to integrate full machine learning

Cornerstone is Visionary

Cornerstone has “Massive Data”

31

User

ü  Position ü  Previous Position ü  Education ü  Skills ü  Certifications ü  Accomplishments ü  Languages ü  Organization ü  Preferences

Collaboration

ü  Connections ü  Live Feed (Status) ü  Feedback ü  Actions ü  Snapshot ü  Teams ü  Discussions ü  Badges ü  Likes ü  Comments

Talent Organization

ü  Transcript ü  Performance ü  Skills ü  Goals ü  Assessments ü  Dev Plans ü  Succession ü  Compensation ü  Applicants ü  Applicant Status

ü  Industry ü  Business Unit ü  Department ü  Division ü  Region ü  Groups ü  Hierarchies ü  Cost Center ü  Grade ü  Location

23.8M USERS | 191 COUNTRIES | DECADE OF DATA

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

LEARN

Cornerstone Developer

Developer 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 Marketplace

Easily access, download, install

and configure custom and 3rd

party apps

33

The Power of Platform

34

Multi-tenant REST APIs Mobile-Ready

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

employees

Marketplace of apps integrated & embedded within

Cornerstone

Client-specific applications designed & built by clients

or partners

Thank You!