Cornerstone OnDemand, Inc. (NASDAQ:CSOD) Q3 2018 Earnings Conference Call - Preliminary Transcript

Nov 07, 2018 • 05:00 pm ET


Cornerstone OnDemand, Inc. (NASDAQ:CSOD) Q3 2018 Earnings Conference Call - Preliminary Transcript


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Good day, ladies and gentlemen, and welcome to Cornerstone OnDemand's third quarter 2018 earnings call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. As a reminder, this conference call is being recorded.

And now, I'll turn the call over to Jennifer Gianola, Vice President of Investor Relations for Cornerstone OnDemand.

Jennifer Gianola

Good afternoon, everyone. And welcome to Cornerstone OnDemand's third quarter 2018 earnings conference call. As always, today's call will begin with Adam Miller, Chief Executive Officer, who will provide an overview of our performance, and then Brian Swartz, Chief Financial Officer, will review some key financial results for the quarter which ended on September 30, 2018. Later, we will conduct a question-and-answer session.

By now, you should have received a copy of our press release, which was released after the market closed today and was furnished with the SEC on Form 8-K. You can also access the press release and related investor materials, including detailed financials on our investor relations website. We have also shared a copy of the prepared remarks on our investor relations website for your review. As a reminder, today's call is being recorded, and a replay will be made available following the conclusion of the call.

Our discussion will include forward-looking statements, including but not limited to statements regarding the expected performance of our business, our future financial and operating performance, including our GAAP and non-GAAP guidance, strategy, long-term growth, and overall future prospects. Forward-looking statements involve risks, uncertainties and assumptions. These risks, uncertainties, and assumptions as well as other factors that could cause actual results to differ materially from those contained in our forward-looking statements are included in our most recent Form 10-K and subsequent periodic filings with the SEC.

During the call, we will be referring to both GAAP and non-GAAP financial measures. All financial figures discussed today are non-GAAP unless we state that the measure is a GAAP measure. The reconciliation of our GAAP to non-GAAP information is provided in the press release and our website. Please note that we have made some changes to our disclosures in part due to the new ASC 606 revenue recognition standard. All financial figures discussed today are on ASC 606 basis unless we state the value is on ASC 605 basis. Please refer to our press release and the Supplemental Financial Deck on our Investor Relations website for a summary of changes to the non-GAAP financial measures.

With that, I will turn the call over to Adam.

Adam Miller

Today marks one year since we first announced our strategic plan to transform Cornerstone into an industry-leading, high-margin growth company. We highlighted a five-point plan which included Cornerstone exiting the enterprise service delivery business and improving our margin profile, focusing on annual recurring revenue, introducing new recurring revenue streams, bolstering management, and strengthening our corporate governance.

I am extremely pleased to report one year later that we have successfully executed against our plan and