Cornerstone OnDemand, Inc.(NASDAQ: CSOD) stock rallied in the second half of the trading session on September 14th, 2017 and rose around 14.9%. The stock gained momentum after the group’s update of hiring financial advisers to work on a strategic review. The group is working with Centerview Partners LLC and Goldman Sachs Group Inc., who will be helping the group to engage with potential suitors for the company while also offering a defense advice against investor Praesidium Investment Management, who has agitated for a sale.
During the second quarter of 2017, the group finished its major contract with U.S. Postal Service. The group is targeting for $1 billion in sales, with its current market opportunity. They delivered a revenue rise of 9% yoy to $116.7 million, in the second quarter of 2017 while revenue on a constant currency basis rose 12.7% from the same period of last year. Their billings rose 11.9% yoy to $119.0 million during the quarter and on a constant currency basis it rose 6.4% from same period last year. The group has 3,076 clients and more than 32.1 million users as of second quarter.
Operating loss reached $(18.6) million during the quarter leading to an operating loss margin of (15.9) % from an operating loss of $(15.1) million, in pcp. Net loss reached $(21.3) million, or a $(0.37) diluted net loss per share during the quarter against a net loss of $(17.6) million, or a $(0.32) diluted net loss per share, in prior corresponding period. Free cash flow reached $(5.0) million during the quarter from a free cash flow of $(1.7) million in prior corresponding quarter.
For the third quarter, the group is forecasting its revenue to be in $117.0 million and $120.0 million range which is a year-over-year growth at the mid-point of 10%, or 10% on a constant currency basis. For full year of 2017, they are aiming a revenue in the range of $477.0 million and $487.0 million, which is a growth at the mid-point of 14%, or 16% on a constant currency basis. Cornerstone is aiming to reimagine workplace learning by launching a learning experience platform and a new subscription content offering tied to the Cornerstone Learning suite. They also added two new people analytics applications, Cornerstone Engage (offered in the Cornerstone Performance suite) and Cornerstone Benchmark (offered in the Cornerstone HR suite).