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Investor Presentation
Fourth Quarter 2014
This presentation includes forward-looking statements. In this presentation, the words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “predict,”
“potential” and similar expressions, as they relate to Cornerstone OnDemand, Inc. (“Cornerstone OnDemand” or the “Company”), business and management, are intended to identify
forward-looking statements. In light of the risks and uncertainties outlined below, the future events and circumstances discussed in this presentation may not occur, and actual results
could differ materially from those anticipated or implied in the forward-looking statements. The Company has based these forward-looking statements largely on its current expectations
and projections about future events and financial trends affecting its business. Forward-looking statements should not be read as guarantees of future performance or results, and will not
necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the date of
this presentation and management’s good faith belief as of such date with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results
to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to:
• statements regarding the Company’s business strategies;
• the Company’s anticipated future operating results and operating expenses;
• the Company’s ability to attract new clients to enter into subscriptions for its solution;
• the Company’s ability to service those clients effectively and induce them to renew and upgrade their deployments of the Company’s solution;
• the Company’s ability to expand its sales organization to address effectively the new industries, geographies and types of organizations the company intends to target;
• the Company’s ability to accurately forecast revenue and appropriately plan its expenses; market acceptance of enhanced solutions, alternate ways of addressing learning and talent
management needs or new technologies generally by the Company and its competitors; continued acceptance of SaaS as an effective method for delivering learning and talent
management solutions and other business management applications; the attraction and retention of qualified employees and key personnel;
• the Company’s ability to protect and defend its intellectual property; costs associated with defending intellectual property infringement and other claims; events in the markets for the
Company’s solution and alternatives to the Company’s solution, as well as in the United States and global markets generally; future regulatory, judicial and legislative changes in the
Company’s industry; changes in the competitive environment in the Company’s industry and the markets in which the Company operates; and other factors discussed under “Risk
Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s periodic reports filed with the Securities and Exchange
Commission (the “SEC”).
Forward-looking statements speak only as of the date of this presentation. You should not put undue reliance on any forward-looking statement. The Company assumes no obligation to
update any forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting future performance or results, except to the extent required by
applicable laws. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-
looking statements.
In considering investing in the Company’s securities, you should read the documents the Company has filed with the SEC for more complete information about the Company. You may get
these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov.
Safe Harbor
Global Leader in SaaS Talent Management
191
Countries
42
Languages
13
Offices
1,950+
Clients
16M+
Users
As of September 30, 2014
3
Note: User and client count figures exclude Growth Edition and Cornerstone for Salesforce.
Best-of-Breed Product Suite
4
Established Market Leadership
“LEADER”
2013 Forrester Wave for
Talent Management
 A “forward-looking company”
 Flexible/adaptable products
 Making mobile and social
“everywhere”
 Significant investment in non-US
localization
“LEADER”
2014 Integrated Talent Management
Marketscape
 Strong functional capabilities
 Solid customer references and
customer service
 Streamlined, attractive user experience
 Non-learning modules are equally
robust and capable of being offered
alone
“LEADER”
2014 Magic Quadrant for Talent
Management Suites
 A leader in overall vendor satisfaction
 Best-in-class learning and
performance, strong mobile support,
and good use of social collaboration and
game mechanics to engage employees
 A natively developed suite with a high
degree of configurability
Flourishing Ecosystem of Alliances
Select Distribution & Deployment Alliances
Select Technology Alliances
6
Global Global Global Global
Proven Growth Story
$16
$17
$20
$22
$24
$27
$31
$36
$38
$44
$48
$55
$57
$62
$68
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Revenue Growth
562
640
710
805
891
1,001
1,112
1,237
1,317
1,411
1,505
1,631
1,703
1,826
1,956
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Client Growth
5.2
6.0
7.2
7.5
8.2
9.4
10.3
10.6
11.0
12.3
12.9
14.0
14.5
15.5
16.6
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
User Growth
(in millions) (in millions)
7
Note: User and client count figures exclude Growth Edition and Cornerstone for Salesforce.
2011 20132012 ‘14 2011 20132012 ‘14 2011 20132012 ‘14
Competitive Differentiation
The New Competitive Landscape
 Focus on innovation
 Organically grown
 Pure SaaS
 System of engagement
 Focus on client success
 Focus on integration
 Built through acquisition
 Mix of SaaS and On-Premise
 System of record
 Clients multiple levels removed
ERP
Suite
Best
Of Breed
9
Organically Grown Core Suite
Acquired by
Acquired by
Acquired by
Acquired by
Unified Data Model Single Support Organization
Consistent User InterfaceSingle Reporting Environment
Data consolidated into a single, centralized repository Same look-and-feel across clouds
Easy to integrate multiple applications Only one call to make
11
The Organic Advantage
Not just Software, but Service
12
95% average dollar retention
since inception
Many repeat buyers
Pioneering Client Success
Framework
Business consulting, client
success management and
solution architecture
Financial Results
Financial Snapshot
 Predictable recurring revenue model
 Typically sign three year contracts billed annually
 Highly efficient use of capital
* 2010 and 2011 values exclude the $2.9mm and $2.5mm reductions of revenue during Q4 2010 and Q2 2011, respectively, associated with non-cash
charges for common stock warrants issued to ADP
** Annual dollar retention rate defined as the implied monthly recurring revenue under client agreements at the end of a fiscal year, excluding any
upsells during that fiscal year, divided by the implied monthly recurring revenue for the same client base at the end of the prior fiscal year
** Historical dollar retention percentage is from ’02-’12
59%Bookings Growth*
‘07 – ‘12 CAGR
61%Revenue Growth*
50%
2013
57%
95%Dollar Retention** 95%
Financial Model
Highlights
Compelling
Financial Metrics
* Bookings defined as gross revenue plus change in deferred revenue for the period
Strong Momentum
$11.0
$19.6
$29.3
$46.6
$75.5
$117.9
$185.1
$0
$50
$100
$150
$200
2007 2008 2009 2010 2011 2012 2013
$15.0
$24.9
$34.5
$60.9
$97.6
$154.3
$231.7
$0
$50
$100
$150
$200
$250
2007 2008 2009 2010 2011 2012 2013
(in millions)
15
(in millions)
Revenue Bookings
Growing Revenue Per User
16
$11.27
$12.14
$13.05
$15.04
4.0%
7.7% 7.5%
15.2%
3%
6%
9%
12%
15%
18%
21%
$10
$11
$12
$13
$14
$15
$16
2010 2011 2012 2013
Revenue Per User Revenue Per User Growth
Calculated using full-year revenue for the period divided by the midpoint of the beginning and ending user base during the period.
Consistent Improvement in Profitability
$0.2
$2.2
$11.2
$20.6
$0
$4
$8
$12
$16
$20
$24
2010 2011 2012 2013
(in millions)
17
-22%
-17%
-13%
-7%
-24%
-20%
-16%
-12%
-8%
-4%
0%
2010 2011 2012 2013
Non-GAAP Operating Cash Flow Non-GAAP Net Loss Margin
Getting to $1 Billion
Two Paths to $1 Billion
19
1. Increase breadth
of market reach
2. Increase level of
client penetration
Getting to $1 Billion – Increase Breadth
Large Underpenetrated Market
Source: Adapted from Gartner, IDC, US Census Bureau
Addressable Market
16.6 Million
Users
$31 Billion
400 Million
Addressable Seats
65 Million
Est. Users
Current Market
21
Accelerating Client Traction
2003-2004 2008 2010 20122006
2007 2009 2011 20132005
Key Client Additions
12 21 44 73 105 168
280
481
805
1,237
1,631
0
300
600
900
1,200
1,500
1,800
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
22
Expanded Global Footprint
Europe, Middle East & Africa Asia Pacific
Select Notable Clients Select Notable Clients
Germany South Africa Spain
AustriaFranceUnited Kingdom
India China Australia
New ZealandIndiaChina
7 Offices
29 Languages
4.9M Est. Users
5 Offices
9 Languages
1.4M Est. Users
23
x
Pushing Up & Down Market
24
Select Global 500 Clients
Select Growth Edition Clients
25
25%
Market Share
Increasing Market Share
Current SaaS
Market Share
Getting to $1 Billion – Increase Depth
Growing Penetration Across All Products
27
Succession
11%
29%
2005 2013
CLIENT PENETRATION
SELECT NOTABLE CLIENTS
Recruiting
0%
9%
2005 2013
CLIENT PENETRATION
SELECT NOTABLE CLIENTS
Connect
0%
24%
2005 2013
CLIENT PENETRATION
SELECT NOTABLE CLIENTS
31%
55%
2005 2013
Performance
CLIENT PENETRATION
SELECT NOTABLE CLIENTS
0
330
660
990
1,320
1,650
1,980
Learning Performance Succession Connect Compensation Recruiting Onboarding
Existing Client Penetration Client Opportunity
NumberofClients
Huge Opportunity Within Installed Base
28 Calculated based on 1,956 clients with approximately 8,500 users on average.
Over $1B opportunity within installed base, excluding Extended Enterprise
2009
<1,000
3,400+ Banks
150,000+
29
Numerous Use Cases Client Spotlight
Client
Ecosystem
Customers
Partners
Contingent
Laborers
Live Since:
Members:
Users:
Members
Resellers
Franchisees
Dealers
ABA is the industry's premier membership group
providing training and education to the banking industry
Employees:
Extended Enterprise Opportunity
Strengthens Cornerstone‘s
core talent management
application suite
Accelerates roadmap for
workforce planning and
predictive analytics
strategy
Seasoned team with deep
machine learning and data
science experience
1
6
Enhanced Analytics with Evolv
Thank
You!

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  • 2. This presentation includes forward-looking statements. In this presentation, the words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “predict,” “potential” and similar expressions, as they relate to Cornerstone OnDemand, Inc. (“Cornerstone OnDemand” or the “Company”), business and management, are intended to identify forward-looking statements. In light of the risks and uncertainties outlined below, the future events and circumstances discussed in this presentation may not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. The Company has based these forward-looking statements largely on its current expectations and projections about future events and financial trends affecting its business. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on information available at the date of this presentation and management’s good faith belief as of such date with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause such differences include, but are not limited to: • statements regarding the Company’s business strategies; • the Company’s anticipated future operating results and operating expenses; • the Company’s ability to attract new clients to enter into subscriptions for its solution; • the Company’s ability to service those clients effectively and induce them to renew and upgrade their deployments of the Company’s solution; • the Company’s ability to expand its sales organization to address effectively the new industries, geographies and types of organizations the company intends to target; • the Company’s ability to accurately forecast revenue and appropriately plan its expenses; market acceptance of enhanced solutions, alternate ways of addressing learning and talent management needs or new technologies generally by the Company and its competitors; continued acceptance of SaaS as an effective method for delivering learning and talent management solutions and other business management applications; the attraction and retention of qualified employees and key personnel; • the Company’s ability to protect and defend its intellectual property; costs associated with defending intellectual property infringement and other claims; events in the markets for the Company’s solution and alternatives to the Company’s solution, as well as in the United States and global markets generally; future regulatory, judicial and legislative changes in the Company’s industry; changes in the competitive environment in the Company’s industry and the markets in which the Company operates; and other factors discussed under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s periodic reports filed with the Securities and Exchange Commission (the “SEC”). Forward-looking statements speak only as of the date of this presentation. You should not put undue reliance on any forward-looking statement. The Company assumes no obligation to update any forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting future performance or results, except to the extent required by applicable laws. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward- looking statements. In considering investing in the Company’s securities, you should read the documents the Company has filed with the SEC for more complete information about the Company. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Safe Harbor
  • 3. Global Leader in SaaS Talent Management 191 Countries 42 Languages 13 Offices 1,950+ Clients 16M+ Users As of September 30, 2014 3 Note: User and client count figures exclude Growth Edition and Cornerstone for Salesforce.
  • 5. Established Market Leadership “LEADER” 2013 Forrester Wave for Talent Management  A “forward-looking company”  Flexible/adaptable products  Making mobile and social “everywhere”  Significant investment in non-US localization “LEADER” 2014 Integrated Talent Management Marketscape  Strong functional capabilities  Solid customer references and customer service  Streamlined, attractive user experience  Non-learning modules are equally robust and capable of being offered alone “LEADER” 2014 Magic Quadrant for Talent Management Suites  A leader in overall vendor satisfaction  Best-in-class learning and performance, strong mobile support, and good use of social collaboration and game mechanics to engage employees  A natively developed suite with a high degree of configurability
  • 6. Flourishing Ecosystem of Alliances Select Distribution & Deployment Alliances Select Technology Alliances 6 Global Global Global Global
  • 7. Proven Growth Story $16 $17 $20 $22 $24 $27 $31 $36 $38 $44 $48 $55 $57 $62 $68 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Revenue Growth 562 640 710 805 891 1,001 1,112 1,237 1,317 1,411 1,505 1,631 1,703 1,826 1,956 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Client Growth 5.2 6.0 7.2 7.5 8.2 9.4 10.3 10.6 11.0 12.3 12.9 14.0 14.5 15.5 16.6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 User Growth (in millions) (in millions) 7 Note: User and client count figures exclude Growth Edition and Cornerstone for Salesforce. 2011 20132012 ‘14 2011 20132012 ‘14 2011 20132012 ‘14
  • 9. The New Competitive Landscape  Focus on innovation  Organically grown  Pure SaaS  System of engagement  Focus on client success  Focus on integration  Built through acquisition  Mix of SaaS and On-Premise  System of record  Clients multiple levels removed ERP Suite Best Of Breed 9
  • 10. Organically Grown Core Suite Acquired by Acquired by Acquired by Acquired by
  • 11. Unified Data Model Single Support Organization Consistent User InterfaceSingle Reporting Environment Data consolidated into a single, centralized repository Same look-and-feel across clouds Easy to integrate multiple applications Only one call to make 11 The Organic Advantage
  • 12. Not just Software, but Service 12 95% average dollar retention since inception Many repeat buyers Pioneering Client Success Framework Business consulting, client success management and solution architecture
  • 14. Financial Snapshot  Predictable recurring revenue model  Typically sign three year contracts billed annually  Highly efficient use of capital * 2010 and 2011 values exclude the $2.9mm and $2.5mm reductions of revenue during Q4 2010 and Q2 2011, respectively, associated with non-cash charges for common stock warrants issued to ADP ** Annual dollar retention rate defined as the implied monthly recurring revenue under client agreements at the end of a fiscal year, excluding any upsells during that fiscal year, divided by the implied monthly recurring revenue for the same client base at the end of the prior fiscal year ** Historical dollar retention percentage is from ’02-’12 59%Bookings Growth* ‘07 – ‘12 CAGR 61%Revenue Growth* 50% 2013 57% 95%Dollar Retention** 95% Financial Model Highlights Compelling Financial Metrics * Bookings defined as gross revenue plus change in deferred revenue for the period
  • 15. Strong Momentum $11.0 $19.6 $29.3 $46.6 $75.5 $117.9 $185.1 $0 $50 $100 $150 $200 2007 2008 2009 2010 2011 2012 2013 $15.0 $24.9 $34.5 $60.9 $97.6 $154.3 $231.7 $0 $50 $100 $150 $200 $250 2007 2008 2009 2010 2011 2012 2013 (in millions) 15 (in millions) Revenue Bookings
  • 16. Growing Revenue Per User 16 $11.27 $12.14 $13.05 $15.04 4.0% 7.7% 7.5% 15.2% 3% 6% 9% 12% 15% 18% 21% $10 $11 $12 $13 $14 $15 $16 2010 2011 2012 2013 Revenue Per User Revenue Per User Growth Calculated using full-year revenue for the period divided by the midpoint of the beginning and ending user base during the period.
  • 17. Consistent Improvement in Profitability $0.2 $2.2 $11.2 $20.6 $0 $4 $8 $12 $16 $20 $24 2010 2011 2012 2013 (in millions) 17 -22% -17% -13% -7% -24% -20% -16% -12% -8% -4% 0% 2010 2011 2012 2013 Non-GAAP Operating Cash Flow Non-GAAP Net Loss Margin
  • 18. Getting to $1 Billion
  • 19. Two Paths to $1 Billion 19 1. Increase breadth of market reach 2. Increase level of client penetration
  • 20. Getting to $1 Billion – Increase Breadth
  • 21. Large Underpenetrated Market Source: Adapted from Gartner, IDC, US Census Bureau Addressable Market 16.6 Million Users $31 Billion 400 Million Addressable Seats 65 Million Est. Users Current Market 21
  • 22. Accelerating Client Traction 2003-2004 2008 2010 20122006 2007 2009 2011 20132005 Key Client Additions 12 21 44 73 105 168 280 481 805 1,237 1,631 0 300 600 900 1,200 1,500 1,800 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 22
  • 23. Expanded Global Footprint Europe, Middle East & Africa Asia Pacific Select Notable Clients Select Notable Clients Germany South Africa Spain AustriaFranceUnited Kingdom India China Australia New ZealandIndiaChina 7 Offices 29 Languages 4.9M Est. Users 5 Offices 9 Languages 1.4M Est. Users 23
  • 24. x Pushing Up & Down Market 24 Select Global 500 Clients Select Growth Edition Clients
  • 25. 25 25% Market Share Increasing Market Share Current SaaS Market Share
  • 26. Getting to $1 Billion – Increase Depth
  • 27. Growing Penetration Across All Products 27 Succession 11% 29% 2005 2013 CLIENT PENETRATION SELECT NOTABLE CLIENTS Recruiting 0% 9% 2005 2013 CLIENT PENETRATION SELECT NOTABLE CLIENTS Connect 0% 24% 2005 2013 CLIENT PENETRATION SELECT NOTABLE CLIENTS 31% 55% 2005 2013 Performance CLIENT PENETRATION SELECT NOTABLE CLIENTS
  • 28. 0 330 660 990 1,320 1,650 1,980 Learning Performance Succession Connect Compensation Recruiting Onboarding Existing Client Penetration Client Opportunity NumberofClients Huge Opportunity Within Installed Base 28 Calculated based on 1,956 clients with approximately 8,500 users on average. Over $1B opportunity within installed base, excluding Extended Enterprise
  • 29. 2009 <1,000 3,400+ Banks 150,000+ 29 Numerous Use Cases Client Spotlight Client Ecosystem Customers Partners Contingent Laborers Live Since: Members: Users: Members Resellers Franchisees Dealers ABA is the industry's premier membership group providing training and education to the banking industry Employees: Extended Enterprise Opportunity
  • 30. Strengthens Cornerstone‘s core talent management application suite Accelerates roadmap for workforce planning and predictive analytics strategy Seasoned team with deep machine learning and data science experience 1 6 Enhanced Analytics with Evolv