Cornerstone OnDemand tops Q2 targets despite flat earnings

Cornerstone's non-GAAP earnings leveled off at zero on revenue of $107 million, up 29 percent year over year.

Cornerstone OnDemand reported Q2 earnings and revenue Wednesday.

The talent management software provider posted a net loss of $17.6 million, or 32 cents per share (statement).

Non-GAAP earnings leveled off at zero on revenue of $107 million, up 29 percent year over year.

Wall Street was expecting a loss of four cents per share on a revenue of $104 million.

In prepared remarks, Cornerstone's recently appointed CFO, Brian Swartz, said the company is "committed to achieving non-GAAP profitability this year" despite the potential impact of the UK's Brexit vote on its financial results.

"In the second quarter, we once again broke even in non-GAAP net income with more than six percentage points of improvement in sales and marketing, as a percentage of revenue, through the first half of 2016," he said.

Elsewhere on Cornerstone's balance sheet, the company said it ended the quarter with more than 2,730 businesses signed up and a total user base is at 26.3 million. Billings were $106.3 million for the second quarter.

For the current quarter, Cornerstone expects revenue between $103.5 million and $105.0 million, slightly below Wall Street estimates of $108 million. For the year, the company expects between $424 million to $428 million, which is also lower than the current estimate of $431 million.