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Cornerstone OnDemand reported fourth-quarter 2020 adjusted earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate by 128.6%. However, the figure increased 48.8% year over year.
Revenues of $206.9 million surged 46% year over year and beat the consensus mark by 5.2%.
Top-Line Details
Subscription revenues (95.6% of total revenues) increased 39.6% year over year to $197.9 million. At the end of the reported quarter, the number of customers was 6,157 compared with 3,508 in the year-ago quarter.
Gross profit rose 36.4% year over year to $155.6 million. Gross margin contracted 110 basis points (bps) to 75.2%.
Cornerstone OnDemand, Inc. Price, Consensus and EPS Surprise
Research & development and sales & marketing expenses increased 32% and 29.4% year over year to $30.9 million and $73.4 million, respectively.
Moreover, general & administration expenses surged 51.4% year over year to $31.4 million.
Operating income was $52.1 million, up 83.7% year over year.
Balance Sheet
As of Dec 31, 2020, cash and cash equivalents were $153.2 million.
Net cash provided by operating activities in the fourth quarter was $35 million compared with $62.6 million at the end of the year-ago quarter.
Unlevered free cash flow in the fourth quarter was $36.4 million compared with $54.7 million at the end of the year-ago quarter.
Guidance
For first-quarter 2021, Cornerstone OnDemand expects revenues between $203 million and $205 million. Subscription revenues are expected between $198 million and $200 million.
Moreover, Cornerstone OnDemand expects operating income in the $44-$46 million range.
For 2021, Cornerstone OnDemand expects revenues between $847 million and $857 million. Subscription revenues are expected between $825 million and $835 million.
Moreover, Cornerstone OnDemand expects operating income in the $205-$212 million range.
Annual recurring revenues are expected between $868 million and $878 million.
Unlevered free cash is expected between $195 million and $205 million
Zacks Rank & Stocks to Consider
Cornerstone OnDemand currently has a Zacks Rank #3 (Hold).
United States Cellular is set to report its quarterly results on Feb 18. Zoom and CrowdStrike are set to report the same on Mar 1 and 16, respectively.
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Cornerstone OnDemand (CSOD) Q4 Earnings Surpass Estimates
Cornerstone OnDemand reported fourth-quarter 2020 adjusted earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate by 128.6%. However, the figure increased 48.8% year over year.
Revenues of $206.9 million surged 46% year over year and beat the consensus mark by 5.2%.
Top-Line Details
Subscription revenues (95.6% of total revenues) increased 39.6% year over year to $197.9 million. At the end of the reported quarter, the number of customers was 6,157 compared with 3,508 in the year-ago quarter.
Gross profit rose 36.4% year over year to $155.6 million. Gross margin contracted 110 basis points (bps) to 75.2%.
Cornerstone OnDemand, Inc. Price, Consensus and EPS Surprise
Cornerstone OnDemand, Inc. price-consensus-eps-surprise-chart | Cornerstone OnDemand, Inc. Quote
Research & development and sales & marketing expenses increased 32% and 29.4% year over year to $30.9 million and $73.4 million, respectively.
Moreover, general & administration expenses surged 51.4% year over year to $31.4 million.
Operating income was $52.1 million, up 83.7% year over year.
Balance Sheet
As of Dec 31, 2020, cash and cash equivalents were $153.2 million.
Net cash provided by operating activities in the fourth quarter was $35 million compared with $62.6 million at the end of the year-ago quarter.
Unlevered free cash flow in the fourth quarter was $36.4 million compared with $54.7 million at the end of the year-ago quarter.
Guidance
For first-quarter 2021, Cornerstone OnDemand expects revenues between $203 million and $205 million. Subscription revenues are expected between $198 million and $200 million.
Moreover, Cornerstone OnDemand expects operating income in the $44-$46 million range.
For 2021, Cornerstone OnDemand expects revenues between $847 million and $857 million. Subscription revenues are expected between $825 million and $835 million.
Moreover, Cornerstone OnDemand expects operating income in the $205-$212 million range.
Annual recurring revenues are expected between $868 million and $878 million.
Unlevered free cash is expected between $195 million and $205 million
Zacks Rank & Stocks to Consider
Cornerstone OnDemand currently has a Zacks Rank #3 (Hold).
Better-ranked stocks in the broader technology sector are United States Cellular (USM - Free Report) , Zoom (ZM - Free Report) and CrowdStrike Holdings (CRWD - Free Report) . While both United States Cellular and Zoom sport a Zacks Rank #1 (Strong Buy), CrowdStrike carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
United States Cellular is set to report its quarterly results on Feb 18. Zoom and CrowdStrike are set to report the same on Mar 1 and 16, respectively.
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Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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