CSOD Investor Deck

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  • Investor Presentation

    First Quarter 2015

  • 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

  • Global Leader in SaaS Talent Management

    191 Countries

    42 Languages

    17 Offices

    2,100+ Clients

    18M+ Users

    As of December 31, 2014

    3

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

  • Best-of-Breed Product Suite

    4

  • Established Market Leadership

    LEADER

    2013 Forrester Wave for Talent Management

    A forward-looking company Flexible/adaptable products Making mobile and social

    everywhere

    Significant investment in non-US localization

    LEADER

    2014 Integrated Talent Management Marketscape

    Strong functional capabilities Solid customer references and

    customer service

    Streamlined, attractive user experience Non-learning modules are equally

    robust and capable of being offered alone

    LEADER

    2014 Magic Quadrant for Talent Management Suites

    A leader in overall vendor satisfaction

    Best-in-class learning and performance, strong mobile support, and good use of social collaboration and game mechanics to engage employees

    A natively developed suite with a high degree of configurability

  • Flourishing Ecosystem of Alliances

    Select Distribution & Deployment Alliances

    Select Technology Alliances

    6

    Global Global Global Global

  • Proven Growth Story

    $16 $17

    $20 $22

    $24 $27

    $31

    $36 $38

    $44

    $48

    $55 $57

    $62

    $68

    $76

    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

    Revenue Growth

    562 640

    710

    805 891

    1,001

    1,112

    1,237 1,317

    1,411

    1,505

    1,631 1,703

    1,826

    1,956

    2,153

    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

    Client Growth

    5.2

    6.0

    7.2 7.5

    8.2

    9.4

    10.3 10.6 11.0

    12.3 12.9

    14.0 14.5

    15.5

    16.6

    18.1

    Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

    User Growth (in millions) (in millions)

    7

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

    2011 2013 2012 2014 2011 2013 2012 2014 2011 2013 2012 2014

  • Competitive Differentiation

  • The New 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

    9

  • Organically Grown Core Suite

    Acquired by

    Acquired by

    Acquired by

    Acquired by

    Acquired by

  • Unif ied Data Model Single Support Organization

    Consistent User Interface Single Reporting Environment Data consolidated into a single, centralized repository Same look-and-feel across clouds

    Easy to integrate multiple applications Only one call to make

    11

    The Organic Advantage

  • Not just Software, but Service

    12

    95% average dollar retention since inception

    Many repeat buyers

    Pioneering Client Success Framework

    Business consulting, client success management and solution architecture

  • Financial Results

  • Financial Snapshot

    Predictable recurring revenue model Typically sign three year contracts billed annually Highly efficient use of capital

    * 2010 and 2011 values exclude the $2.9mm and $2.5mm reductions of revenue during Q4 2010 and Q2 2011, respectively, associated with non-cash charges for common stock warrants issued to ADP

    ** Annual dollar retention rate defined as the implied monthly recurring revenue under client agreements at the end of a fiscal year, excluding any upsells during that fiscal year, divided by the implied monthly recurring revenue for the same client base at the end of the prior fiscal year

    ** Historical dollar retention percentage is from 02-14

    55% Bookings Growth*

    07 14 CAGR

    58% Revenue Growth*

    95% Dollar Retention**

    Financial Model Highlights

    Compelling Financial Metrics

    * Bookings defined as gross revenue plus change in deferred revenue for the period

  • 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)

    15

    (in millions) Revenue Bookings

  • Growing Revenue Per User

    16

    $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.

  • Consistent Improvement in Profitability

    $0.2 $2.2

    $11.2

    $20.6

    $33.3

    $0

    $6

    $12

    $18

    $24

    $30

    $36

    2010 2011 2012 2013 2014

    (in millions)

    17

    -22%

    -17%

    -14%

    -7% -6%

    -24%

    -20%

    -16%

    -12%

    -8%

    -4%

    0%201