Fiscal Year 2016 and Q4 Results Posted by Cornerstone

Fiscal Year 2016 and Q4 Results Posted by Cornerstone

Cornerstone onDemand, the human capital management software provider came up with its Q4 results for the quarter that ended on Dec 31st 2016. It was a mixed quarter for the company.

Adam Miller, the CEO and the Company President said, “The fourth quarter capped off another strong year with 29% constant currency revenue growth. We believe the tremendous market opportunity in learning and human capital management, combined with our position as the long-standing talent management leader and our proven ability to innovate, will continue to fuel Cornerstone’s long-term growth and margin expansion.”

The company posted a revenue of $109.0 million in Q4, which was 13.7% more than what it posted a year back for the same quarter. It can be called a mixed quarter for the company when it posted a net loss of 33 cents per share or $18.6 million. The Wall Street expectation on Non-GAAP earnings was four cents per share on $108.5 million revenue. The company however came out with two cents loss per share on $109 million revenue, which if we see year on year is 29 percent up.

The company’s Chief Financial Officer, Brian Swartz commented on the results by saying, “2016 marks a significant milestone for Cornerstone, achieving full year non-GAAP net income for the first time in the Company’s history. This was the result of wins across many of our operational excellence initiatives for the year and we believe there are clear opportunities to further improve margins and drive continued profitability in 2017 and beyond.

Billings of the company in fourth quarter were up by 10.1% amounting to $156.3 million if we compare it with Q4, 2015. On constant currency basis, this billing growth comes to 18.4% increase by same comparison.

The operating loss margin of the company has come down from 15.5% in Q4 2015 to 13.3% in Q4 2016. This translates to 220 basis points improvement year-on-year. This California-based global leader that helps the organizations around the world realise the potential of their workforce providing cloud-based solutions caters to 2918 clients. These clients are based in different countries. All in all, there are some 30 million people who use their solutions in 191 different countries communicating through 42 different languages. They provide solutions right from recruitment, training, and collaboration to performance management, people administration, succession planning, and compensation.

The company has given a positive outlook for the first quarter of 2017. It expects to hit the revenue figure of anywhere between $109.0 million and $111.0 million. It means the year-on-year growth will come somewhere between 10.8%and 15.9% on a constant currency basis.

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