Cornerstone OnDemand Executive Insights: Clouds, Hiring
On Monday, Cornerstone OnDemand, Inc. (NASDAQ:CSOD) reported its first quarter earnings and discussed the following topics in its earnings conference call. Here’s what the executives shared with analysts and investors.
Laura Lederman – William Blair: I specifically would like to start with multi-product or multiplayer deals and if you look at the quarter, what percentage of them, are multi-platform? And kind of a similar question. If you could talk about (indiscernible) as a percentage of bookings, just because as a sense of opportunity that you expanded on the terms of selling into the installed base?
Adam L. Miller – President and CEO: So in terms of the sale of multiple clouds so we talk about the four clouds, learning, performance, extended enterprise and now recruiting. I would say that we continue to have at least two clouds in 50% of our deals. So some of them see three, some see even four now, but we are seeing multiple products being sold in each of our deals at least 50% of the time. With regard to the shift or the split between up sell and new client acquisition I would say it’s been consistent with our historical track record nothing of note as it relates to up sell versus new client acquisitions.
Laura Lederman – William Blair: Final question for me and I’ll pass it on. I realize that the opposition (indiscernible) success that just happened relatively easily but what are you getting from customers and do you think you want more business than you would have because of that and I realize stories might be anecdotal but they might present interesting to us.
Perry A. Wallack – CFO: My quick answer would be not yet meaning just now as the market’s starting to absorb the news and as you know in the large enterprise segment, these are long sales cycles. So that news is starting to hit in current sales cycles. So I think over this quarter and next quarter. I’ll be able to give you a clear answer. But the news has definitely reached the field and we are seeing a lot of opportunities now in the market in particular in the large enterprise space. It was really a three horse race prior to SAP and Oracle coming into the market and what we see today is that it’s a two horse race if it’s an Oracle client, its either us or Oracle i.e. Taleo. If it’s an SAP client it’s us or Success Factors. It’s no longer a three horse race.
Greg Dunham – Goldman Sachs: First question is on pricing, I know you guys rolled out one of the new bundles earlier this year that were some pricing dynamics but one of the (bare) figures out there is that there is pricing pressure in the market because there is perception of tougher competition. Can you just address that concern first? Then a follow-up question on the pace of hiring. When you look at the hiring that you did, kind of 10% sequential increase, was that in line with your expectations?
Adam L. Miller – President and CEO: Yes. Let me take the second one first. We are hiring exactly on plan. We hire roughly the same number of people every month and we’ve been doing that consistently over the past several months and we are exactly on plan from that perspective. With regard to pricing, as we mentioned on an earlier call, pricing has actually improved in the market and that’s very specific prior to Oracle and SAP getting into the space. We had a round of consolidation of the low-cost competitors. They were the ones that most often would start the price wars and those guys getting taken out of the market has actually improved pricing overall for all the vendors in this space including us.
Greg Dunham – Goldman Sachs: Then I guess one follow-up on the hiring question. How has the composition of hiring evolved over the past six months in terms of what type of profile a person that you can hire?
Adam L. Miller – President and CEO: Well, as you can imagine, we are seeing a lot of talent being freed up from our prior competitors because of the consolidation which has raised the bar. I think the other is while there’s lot of unemployment, there absolutely is shortage of skilled labor, but if you are on a winning team because of the success we’ve had in the marketplace, we are able to retract very good talent and I would say the quality of our sales teams and service teams and technology teams has continued to improve over time because of that. So, success breeds success in many ways.