Cornerstone OnDemand Announces Record Fourth Quarter, Fiscal Year 2008 Performance
Q4 Billings Up 90 Percent from 2007; Caps Off Successful Year Marked by Significant Client Growth, Global Expansion, Category-Leading Innovation and Industry Honors
Cornerstone OnDemand Inc., a leader in on-demand, integrated learning and talent management software and services, today announced the company’s record performance for 2008, including a strong close to the year in Q4. Despite the economic climate, billings for Q4 2008 were up 90 percent from the previous year, the most profitable quarter in the company’s history. Overall fiscal year 2008 billings were up 62 percent from last year.
“While other vendors are downsizing and cutting investment in key business areas, Cornerstone OnDemand is the exception,” said Adam Miller, President and CEO, Cornerstone OnDemand. “Our strong business and financial performance in 2008 positions us well for the year ahead, and we will continue to dedicate resources to the evolution of our industry-leading software and to the provision of best-in-class client services. As IT spending becomes increasingly conservative, we anticipate the low total cost of ownership of our SaaS-based platform, coupled with the substantial returns received by our clients, make Cornerstone even more attractive to organizations needing a comprehensive technology solution for managing, developing and connecting workforces.”
Commented Josh Bersin, president, Bersin & Associates, "Organizations investing in talent management solutions are looking for a financially viable vendor partner that is agile enough to keep pace with business, technology, and market changes. Cornerstone's continued global growth, combined with its pure SaaS delivery and comprehensive and innovative approach to human capital management, favorably position the company among the top software vendors in the category."
Noteworthy Q4 and FY 2008 milestones include:
• Expanded Global Presence: Cornerstone’s client base grew by nearly 70 percent in 2008, with the addition of companies in Q4 such as Sanford Health, Freedom Communications, Brooklyn Public Library and First Horizon, among others. The company also saw continued growth of its European presence, with the addition of clients such as Coca-Cola HBC Austria, Travelex, and Active Languages, Switzerland, among others.
• Fast-Growing Category Leader: Cornerstone’s accelerated business growth earned rankings among the fastest-growing companies in North America – including recognition by the Deloitte 2008 Technology Fast 500 and Inc. 5000. Cornerstone also was named among the top 15 Fastest Growing Private Companies in Southern California by the Los Angeles Business Journal. And industry analyst firms such as Bersin & Associates praised the company for its impressive growth, extensive global capabilities and committed client focus.1
• Award-Winning Talent Management Solutions: Used by more than 1.8 million active subscribers in more than 141 countries around the world, Cornerstone’s integrated learning and talent management suite is recognized among the top vendor offerings in the industry by media and analysts. This includes recognition such as a “Leaders” position on the Gartner Magic Quadrant for Corporate Learning Systems (CLS) report (June 2008)2 and, more recently, a position in the Gartner Magic Quadrant for Employee Performance Management Software (EPM) report (February 2009).3 * Cornerstone also earned the highest overall vendor rating (3.5 of 4 stars) in Bersin & Associates’ talent management suite study.4
• Industry-Leading Product Innovation: Earning analyst praise as a visionary and first-mover in the integration of social networking and Web 2.0 tools with its platform, Cornerstone launched Cornerstone Connect in October 2008. According to Gartner, by 2012, 40 percent of companies will incorporate social networks into their corporate learning systems.5
• Strategic Alliances: In 2008, Cornerstone continued to form alliances with key content, service and distribution, and technology partners, including General Physics Corporation, Intrepid Learning Solutions and Monster Worldwide Inc., among others.
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* The Gartner Magic Quadrants are copyrighted 2008 and 2009 by Gartner, Inc., and are reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner’s analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the “Leaders” quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
1. Bersin & Associates, “The Essential Guide to Performance Management Systems” October 2008
2. Gartner Inc., “Magic Quadrant for Corporate Learning Systems,” by Carol Rozwell and James Lundy, June 30, 2008
3. Gartner Inc., “Magic Quadrant for Employee Performance Management Software,” by James Holincheck and Thomas Otter, February 3, 2009
4. Bersin & Associates, “Talent Management Suites: Market Realities, Implementation Experiences, and Vendor Profiles” January 2008
5. Gartner Inc., “Predicts 2009: Maintaining a High-Performance Workplace During Economic Uncertainty” December 2008