Cornerstone OnDemand (CSOD) released their Q2 2018 results on August 7, 2018. Adam Miller, Founder & CEO, and Brian Swartz, CFO, discussed the quarterly financial results on an investor conference call this week.
Here are some financial highlights for Q2 2018:
- Recurring Revenues increased 19% compared to Q2 2017
- Recurring Revenues were $114.8 million
- Total Revenues increased 14% compared to Q2 2017
- Total Revenues for Q2 were $132.5 million
Cornerstone added over 600,000 new users bringing the total number of users to approximately 37 million. The size of the client base increased by 83 net new clients bringing the total number of CSOD clients to 3,363. Cornerstone built new data centers in Paris and Frankfurt that should benefit customers in Europe going forward.
One of the major transformation initiatives for CSOD is moving away from the service business and building recurring revenues through subscription services. A lot of progress in a short amount of time has been achieved on that goal.
Content Anytime, Cornerstone’s content subscription service, is new having been launched last year. Adam Miller is enthusiastic about the initial growth and momentum of the content service by early adopters. We expect this product to expand and grow over time.
Cornerstone is continuing to have sales success in the EMEA countries. CSOD has been successfully selling Cornerstone HR in Europe and the company intends to bring the product to the domestic market. Bluewater will continue to monitor this and keep you updated on when the product is ready for domestic distribution.
Cornerstone is doing well with their transformation plan and that was certainly clear from their quarterly financial results. The potential for new Cornerstone sales in EMEA, Asia Pacific, and Latin America, should present some outstanding opportunities for growth over the next several years.
Congratulations to the Cornerstone team for another successful quarter!