Cornerstone OnDemand, Inc (CSOD) saw its loss narrow to $12.39 million, or $0.22 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $20.15 million, or $0.37 a share. On an adjusted basis, net profit for the quarter stood at $6.88 million, or $0.11 a share compared with a net loss of $3.15 million, or $0.06 a share in the last year period.
Revenue during the quarter grew 23.48 percent to $107.76 million from $87.27 million in the previous year period. Gross margin for the quarter expanded 25 basis points over the previous year period to 69.03 percent. Operating margin for the quarter stood at negative 9.32 percent as compared to a negative 19.52 percent for the previous year period.
Operating loss for the quarter was $10.04 million, compared with an operating loss of $17.03 million in the previous year period.
However, the adjusted operating income for the quarter stood at $16.97 million compared to $14.81 million in the prior year period. At the same time, adjusted operating margin contracted 122 basis points in the quarter to 15.75 percent from 16.97 percent in the last year period.
“In the third quarter, we exceeded revenue expectations and came in well ahead of our profitability goals,” said Adam Miller, the Company’s president and chief executive officer. “We have made great strides in our operational excellence initiatives, and believe our continued focus on efficiency will enable us to achieve even stronger gains in profitability while continuing to pursue the tremendous long-term growth opportunities ahead.”
For the fourth-quarter, Cornerstone Ondemand projects revenue to be in the range of $108 million to $110 million. Cornerstone Ondemand projects revenue to be in the range of $422 million to $424 million for financial year 2016. For the fiscal year 2016, Cornerstone Ondemand projects adjusted net income to be $2.50 million. For fiscal year 2016, the company expects diluted earnings per share to be $0.04 on adjusted basis.
Operating cash flow turns positive
Cornerstone OnDemand, Inc has generated cash of $1.72 million from operating activities during the nine month period as against cash outgo of $9.28 million in the last year period.
The company has spent $61.34 million cash to meet investing activities during the nine month period as against cash outgo of $105.78 million in the last year period.
Cash flow from financing activities was $17.74 million for the nine month period, up 103.48 percent or $9.02 million, when compared with the last year period.
Cash and cash equivalents stood at $65.29 million as on Sep. 30, 2016, up 12.71 percent or $7.36 million from $57.93 million on Sep. 30, 2015.
Working capital declines
Cornerstone OnDemand, Inc has witnessed a decline in the working capital over the last year. It stood at $106.95 million as at Sep. 30, 2016, down 6.11 percent or $6.96 million from $113.91 million on Sep. 30, 2015. Current ratio was at 1.38 as on Sep. 30, 2016, down from 1.48 on Sep. 30, 2015.
Days sales outstanding went down to 77 days for the quarter compared with 92 days for the same period last year.
At the same time, days payable outstanding went down to 41 days for the quarter from 50 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 $236.11 million as on Sep. 30, 2016, up 2.31 percent or $5.33 million from $230.78 million on Sep. 30, 2015. Total debt was 42.79 percent of total assets as on Sep. 30, 2016, compared with 46.43 percent on Sep. 30, 2015. Debt to equity ratio was at 10.37 as on Sep. 30, 2016, down from 22.83 as on Sep. 30, 2015.
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