Cornerstone OnDemand Strengths, Domain Expertise, and Key Differentiators
Cornerstone OnDemand signed the United States Postal Service, which will start running Cornerstone Recruiting, Learning, Performance, and HR for its 600,000 employees over a 10-year period. Though there is no guarantee that USPS will standardize its HR system of choice on Cornerstone over the next 10 years, the winning underscores the vendor’s growing statute in the Cloud HCM applications market. Even without USPS, Cornerstone has already achieved ubiquity by making its Cloud-based talent management applications widely available across a wide spectrum of sales channels and end-user organizations.
Its core solution consists of the Cornerstone Recruiting Cloud, the Cornerstone Performance Cloud, the Cornerstone Learning Cloud, and the Cornerstone Extended Enterprise Cloud. Some of its clients are being supported in a multi-tenant environment that covers anywhere between 150,000 and 350,000 users from a single instance of Cornerstone applications. The number of Cornerstone users has surpassed 38 million after reaching 3.3 million in 2009, 5 million in 2011, and 10.6 million in 2012, and 14 million in 2013.
Cornerstone launched a suite of people analytics products including Cornerstone View, an interactive data visualization application that gives business leaders deeper intelligence about their people, as well as Cornerstone Planning, an intuitive workforce planning application that helps organizations easily create, manage and execute accurate hiring plans over multiple time horizons.
The company also added two new dashboards to Cornerstone Insights, it's a predictive and prescriptive analytics solution that equips business leaders with the intelligence to better recruit, train, manage, and develop their people.
Cornerstone Engage and Cornerstone Benchmark are among its latest offerings. Engage enables organizations to measure key employee engagement factors through pulse surveys to uncover real-time critical employee insights and make positive organizational change. Benchmark leverages Cornerstone's global workforce data to identify and compare key HR and talent metrics against internal teams and industry peers.
Cornerstone OnDemand Recent Developments
In May 2019, Cornerstone OnDemand has hired Heidi Spirgi as the company’s chief marketing and strategy officer. Spirgi will report directly to Adam Miller, Cornerstone’s founder, and CEO.
In September 2018, Cornerstone OnDemand expanded its operations to Salt Lake City adding up to 350 jobs, $6 million in new state revenue, and an estimated $4.4 in capital investment over the next seven years.
Cornerstone OnDemand Mergers and acquisitions (M&A) Activities
In February 2020 Cornerstone has entered into a definitive agreement to acquire Saba, a global leader in talent experience solutions and a portfolio company of Vector Capital. Saba has over 20 years of industry experience developing, delivering, and supporting learning, performance, and recruiting product solutions. The cash and stock transaction is valued at approximately $1.395 billion and has been unanimously approved by the boards of directors of both companies.
With the addition of Saba, Cornerstone will have an expanded reach and ability to help a larger, diverse group of clients realize the potential of their people with the right learning and development opportunities. The combined company will have more than 75 million users and serve approximately 7,000 organizations, of all sizes, around the globe.
The combined company will be well-positioned to deliver a highly differentiated portfolio of people development and talent experience software solutions by leveraging the existing product portfolio, as well as through accelerated product development enabled by a larger combined R&D team, greater financial resources, and a shared vision for the future.
In January 2020 Cornerstone acquired Clustree, a French technology company that developed an industry-leading, AI-powered skills engine and extensive skills ontology that is being used by leading global brands, including Carrefour and SNCF.
Founded in 2014, Clustree developed one of the world’s most sophisticated skills engines using machine learning and bias-free algorithms to help organizations match their employees’ skills with specific job roles. Clustree developed its skills ontology based on the consolidation of over 1 billion job skills across multiple languages into a library of 53,000 verified skills that accurately describe any employee profile from any industry. Organizations rely on Clustree’s AI-driven skills engine and skills ontology to analyze their employee skill data to inform critical decisions regarding whom to hire, how to develop their employees, how to structure long-term workforce planning, and ultimately, how to close the pervasive skills gap that companies are experiencing worldwide.
In November 2018, Cornerstone OnDemand has acquired privately-held Grovo Learning, a New York City-based technology company in a $24 million deal. Cornerstone's acquisition of Grovo will improve Cornerstone’s access to education on a global basis. Cornerstone expects to further expand its education, learning, and content subscription service. The transaction is expected to close by the end of 2018, subject to closing adjustments.
Cornerstone OnDemand Customers in ARTW Customer Database
Leveraging a rigorous data-centric research methodology, APPS RUN THE WORLD asks the simple question: Who’s buying Cornerstone OnDemand applications and why? And we provide the answers – supported by decades of research – to our clients around the world. Our Customer database has over 100 data fields that detail company usage of Cornerstone OnDemand and other enterprise apps by function, customer size, industry, location, implementation status, partner involvement, Line of Business Key Stakeholders and IT decision makers contact details. List of Verified Cornerstone Extended Enterprise Cloud, Cornerstone Learning Cloud, Cornerstone Performance Cloud, Cornerstone Recruiting Cloud customers.
Cornerstone OnDemand Overview
Ownership: - CSOD : Nasdaq GS
Number of Employees: 2000
Functional Market: Core HR, Compliance, Onboarding, Recruiting, Performance and Goal Management, Learning and Development, Succession and Leadership Planning, Compensation Management,
Key Verticals: Aerospace and Defense, Automotive, Banking and Financial Services, Communication, Construction, Real Estate, Consumer Packaged Goods, Distribution, K12, Higher Education, Federal Government, State and Local Government, Public Safety, Healthcare, Life Insurance, P&C Insurance, Specialty Insurance, Leisure and Recreation, Hospitality, Life Sciences, Manufacturing, Media, Faith Based Nonprofit, Youth and Elderly Care Nonprofit, Special Cause Nonprofit, Oil and Gas, Professional Services, Retail, Transportation, Utilities,
Cornerstone OnDemand Key Cloud and HCM Applications
Cornerstone Extended Enterprise Cloud, Cornerstone Learning Cloud, Cornerstone Performance Cloud, Cornerstone Recruiting Cloud
Cornerstone OnDemand HCM and Cloud HCM Applications Revenues, $M:
| Type/Year | 2018 | 2019 | YoY Growth, % |
|---|---|---|---|
| Total Revenues, $M | Subscribe | Subscribe | Subscribe |
| HCM Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
| Cloud HCM Applications Revenues, $M | Subscribe | Subscribe | Subscribe |
* HCM Applications Revenues = License + Support & Maintenance + SaaS ( Hardware and Prof. Services are Excluded )
** All revenue figures are estimates based on public records, Cloud and Non-Cloud business models in Apps Run The World's vendor database, and annual survey results including vendor feedback.
Cornerstone OnDemand Revenue Breakdown by Type:
| Type | License | Services | Hardware | Support & Maintenance | SaaS |
|---|---|---|---|---|---|
| % of Total Revenues | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe |
| Revenues, $M | Subscribe | Subscribe | Subscribe | Subscribe | Subscribe |
Cornerstone OnDemand HCM Applications Revenues By Sub-Functional Markets, $M:
Split by Sub-Functional Markets | % | 2019 HCM Revenues, By Sub-Functional Markets, $M | |
Cornerstone OnDemand HCM Applications Revenues By Verticals, $M:
Cornerstone OnDemand Total and HCM Applications Revenues by Region:
| Region | % of Total Revenues | 2019 Total Revenues, $M | 2019 HCM Applications Revenues, $M |
|---|---|---|---|
| Americas | Subscribe | Subscribe | Subscribe |
| EMEA | Subscribe | Subscribe | Subscribe |
| APAC | Subscribe | Subscribe | Subscribe |
| Total | Subscribe | Subscribe | Subscribe |
Cornerstone OnDemand Direct vs Indirect sales
| Region | Direct Sales | Indirect Sales | Total |
|---|---|---|---|
| Type % | Subscribe | Subscribe | Subscribe |
| Revenues, $M | Subscribe | Subscribe | Subscribe |
Cornerstone OnDemand Customers - Breakdown by Geo, Size, Vertical and Product
List of Verified Cornerstone OnDemand Customers
No. of Cornerstone OnDemand Customers: 3600
No. of Cornerstone OnDemand HCM Applications Customers: 3600
No. of Cornerstone OnDemand Cloud HCM Customers: 3600
No. of Cornerstone OnDemand Cloud HCM Subscribers: 40 million
Cornerstone has more than 3,400 clients and over 38 million users, up from 1,600 clients and 14 million users in 2013.
Cornerstone major accounts include IKEA, USG Corp, Dresser-Rand, Wisconsin Department of Transportation, the California Franchise Tax Board, Maryland State Highway Administration, Bucknell University, Ohio Health Sciences, Los Angeles Unified School District, Roche in Switzerland, BBVA in Spain, Bohler IT in Sweden and Philips Electronics in the Netherlands.
In Asia, its major wins included Nissan in Japan, BESTSELLER in China, Commonwealth Bank in Australia, and Tata in India.
Cornerstone OnDemand Market Opportunities, M&A and Geo Expansions
One of the biggest upsell opportunities lies in the relaunch of its Learning platform in 2017 with Cornerstone's Learning Experience platform. The product provides users with a fully consumerized experience by streamlining the search and discovery of training content for personal and career development. It leverages machine learning to fully personalize the experience for each learner.
Since Cornerstone has long been identified as the catalyst that has redefined the Learning Management System Marketplace with an easy and intuitive product as well as rich content, the relaunch of the Learning Experience platform could help solidify its position further.
In June 2019, Cornerstone OnDemand Launched several new products to help organizations more effectively train and develop their teams by integrating learning directly into employees’ flow of work. These new products include a Cornerstone for Salesforce learning integration, that enables Salesforce users to access Cornerstone’s best-in-class learning software and modern training content without leaving Force.com., Cornerstone Create, a product that helps organizations quickly develop, publish, and manage their own mobile-friendly Microlearning content, Express Class, a tool that allows managers to quickly create and administer informal, impromptu training within the Cornerstone Learning Management System (LMS).
Cornerstone OnDemand Risks and Challenges
Despite its track record in Cloud HCM, Cornerstone faces a number of inhibitors to its growth. First, its sales appeared to be decelerating even as its installed base of customers and subscribers continued to climb. In its latest quarter, Cornerstone was only able to muster an 8% growth in its recurring revenues, despite the additions of 78 net new customers and 1.1 million net new subscribers. While an 8% growth may be nothing to sneer at for some companies, that pales the double-digit increases long associated with many high-flying Cloud apps vendors.
Pricing pressures may have contributed to the lackluster revenue growth. Another inhibitor lies in the shift toward microlearning as well as the proliferation of social media as an alternative to traditional learning management systems.
The increased popularity of Lynda.com, now a part of Microsoft LinkedIn, is a cause of concern for Cornerstone.
Finally, the rising popularity of digital performance support tools, navigational guides like WalkMe, and robotic process automation tools like Blue Prism could relegate some of these eLearning systems to a lesser role.
All these suggest that Cornerstone not only faces stiff competition from Cloud HR heavyweights like Workday while seeking to thwart advances from an array of new and existing players in the learning marketplace that is morphing into a moving target.
Cornerstone OnDemand Ecosystem, Partners, Resellers and SI
Cornerstone primarily sells direct, but it also keeps a network of domestic and international distributors.
Its resellers include Affiliated Computer Services, Inc, Appirio, Inc, ADP, Xerox, and Ellucian as well as regional distributors such as BSI Tecnologia in Brazil, CDP Group, Limited in China, Comms Learning Limited in the United Kingdom, Grupo Datamace in Brazil, Infosys Limited in India, ISQ eLearning in Portugal, Kalleo Learning in South Africa, Logica plc in Europe, Neoris de Mexico, S.A.de C.V. in Mexico, Neospheres SAS in France, QA Limited in the United Kingdom, Sage Software, Inc in North America, Xpert Learning in the United Arab Emirates, T2 Optimise PTY Ltd in the Asia Pacific, Talentech Ltd in Israel, and Xchanging HR Services Limited in the United Kingdom, e-communications, Talent2, GreenBullet, XpertLearning, LEARNWAY, Worldwide Trainings, Bluewater Learning, Ceridian, Intelladon and others.
Cornerstone OnDemand Cloud Platform (PaaS) and Infrastructure (IaaS) Details
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Research Methodology
Data used in research reports are derived from publicly available documents, continuous surveys of applications vendors, customers, resellers, Independent Software Vendors, systems integrators and other verifiable sources.
Vendor shares and market forecast results are based on a combination of existing databases as well as demand side and supply side research conducted throughout the year with validation from vendors, customers, channel partners and documentations such as earnings releases and 10Q and 10K filings, vertical industry studies, regional and country-level statistics from public and private institutions(i.e. colleges, universities, government agencies and trade associations).
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