Cornerstone OnDemand, Inc. (CSOD) saw its loss narrow to $18.62 million, or $0.33 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $18.84 million, or $0.35 a share. On an adjusted basis, net loss for the quarter was $0.13 million, when compared with $1.22 million in the last year period.
Revenue during the quarter grew 13.74 percent to $109.03 million from $95.86 million in the previous year period. Gross margin for the quarter contracted 54 basis points over the previous year period to 68.10 percent. Operating margin for the quarter stood at negative 13.34 percent as compared to a negative 15.47 percent for the previous year period.
Operating loss for the quarter was $14.55 million, compared with an operating loss of $14.83 million in the previous year period.
However, the adjusted operating income for the quarter stood at $1.62 million compared to $0.22 million in the prior year period. At the same time, adjusted operating margin improved 125 basis points in the quarter to 1.48 percent from 0.23 percent in the last year period.
"The fourth quarter capped off another strong year with 29% constant currency revenue growth," said Adam Miller, the Company's president and chief executive officer. "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."
For the first-quarter 2017, Cornerstone OnDemand, Inc. projects revenue to be in the range of $109 million to $111 million.
For fiscal year 2017, Cornerstone OnDemand, Inc. projects revenue to be in the range of $475 million to $485 million. It expects net income to grow in the range of $4 percent to $5 percent. The company projects operating income to grow in the range of 5 percent to 6 percent.
Operating cash flow declines
Cornerstone OnDemand, Inc. has generated cash of $35.25 million from operating activities during the year, down 19.51 percent or $8.54 million, when compared with the last year.
The company has spent $81.64 million cash to meet investing activities during the year as against cash outgo of $110.94 million in the last year.
Cash flow from financing activities was $23.52 million for the year, up 113.68 percent or $12.51 million, when compared with the last year.
Cash and cash equivalents stood at $83.30 million as on Dec. 31, 2016, down 22.65 percent or $24.39 million from $107.69 million on Dec. 31, 2015.
Working capital increases sharply
Cornerstone OnDemand, Inc. has recorded an increase in the working capital over the last year. It stood at $147.20 million as at Dec. 31, 2016, up 51.78 percent or $50.22 million from $96.99 million on Dec. 31, 2015. Current ratio was at 1.43 as on Dec. 31, 2016, up from 1.32 on Dec. 31, 2015.
Days sales outstanding went up to 58 days for the quarter compared with 50 days for the same period last year.
At the same time, days payable outstanding went up to 32 days for the quarter from 29 for the same period last year.
Debt moves up marginally
Cornerstone OnDemand, Inc. has witnessed an increase in total debt over the last one year. It stood at $238.44 million as on Dec. 31, 2016, up 3.97 percent or $9.10 million from $229.34 million on Dec. 31, 2015. Total debt was 38.23 percent of total assets as on Dec. 31, 2016, compared with 40.84 percent on Dec. 31, 2015. Debt to equity ratio was at 8.84 as on Dec. 31, 2016, down from 29.32 as on Dec. 31, 2015.
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