Cornerstone OnDemand reports solid Q2 results
Cornerstone OnDemand reported better-than-expected second quarter results on Monday. The talent management software provider posted a net loss of $12 million, or 19 cents per share. Non-GAAP earnings were 40 cents a share on revenue of $184.4 million, up 30% year over year.
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Wall Street was expecting earnings of 22 cents per share on a revenue of $178.5 million.
Earlier this year, Cornerstone acquired Saba, makers of talent experience software, for nearly $1.4 billion. Saba's chief executive Phil Saunders will took over as Cornerstone's CEO on June 15.
"Q2 was one of the most important quarters in Cornerstone history, as the acquisition of Saba was completed and we began operating as one integrated company, while delivering strong results," said Saunders. "We are now embarking on a brand new chapter in Cornerstone, and we've already started the transformation from a great company into a great business."
Elsewhere in its earnings report, the company said subscription revenue was up 34% to $177.2 million.
For the current quarter, Cornerstone expects revenue between $187 million and $189 million, below Wall Street estimates of $204.8 million. For the year the company expects revenue between $715 million and $720 million, compared to analyst estimates for revenue of $744 million.
Cornerstone also announced executive appointments on Monday. The company said it has hired Theresa Damato as chief of staff, and Karen Williams as SVP of customer support and services.
Shares of Cornerstone were down slightly after hours.