Kevin Oram Long Cornerstone OnDemand: Sohn San Francisco Conference 2018

We're posting up notes from the Sohn San Francisco 2018 investment conference.  Next up is Kevin Oram of Praesidium Investment Management who pitched a long of Cornerstone OnDemand (CSOD).


Kevin Oram's Sohn San Francisco Presentation: Cornerstone OnDemand (CSOD)


•    Leading vendor of talent management software
•    Operational changes as a result of private equity involvement ($300 million from Silver Lake in 11/17) at Cornerstone will lead to a meaningful inflection in cash flow growth while also positioning the company for a potential sale to a strategic acquirer
•    Leading position in the talent management space
•    Cornerstone has salesforce efficiency levels well below industry peers, almost 50% lower
•    Constructive engagement with management to drive changes in composition of board and management
•    95% renewal rates, should generate strong recurring revenue and cashflow; more than 3,300 customers with 37 million users
•    Positioned to be acquired by a strategic but have not been acquired yet because strategics don’t want to do the work to transform the business
•    $90/share potential value versus ~$48 share price today



Be sure to check out the rest of the Sohn San Francisco 2018 presentations.

Eminence Capital Boosts Cornerstone OnDemand Stake

Ricky Sandler's hedge fund firm Eminence Capital has filed a 13G with the SEC regarding shares of Cornerstone OnDemand (CSOD).  Per the filing, Eminence now owns 5.4% of the company with over 3 million shares.

This is an increase of 714,564 shares since the end of the first quarter when they owned 2.34 million shares.  The filing was made due to activity on June 29th.

Per Google Finance, Cornerstone OnDemand is "a cloud computing company. The Company provides learning and human capital management software, delivered as Software-as-a-Service (SaaS). Its human capital management platform combines the talent management solutions with analytics and human resources (HR) administration solutions to enable organizations to manage the employee lifecycle. Its enterprise human capital management platform consists of four product suites: its Recruiting suite, which helps organizations to source and attract candidates, assess and select applicants, onboard new hires and manage the entire recruiting process; its Learning suite, which enables clients to manage training and development programs; its Performance suite, which provides tools to manage goal setting, performance reviews, compensation management and succession planning, and HR Administration suite, which supports employee records administration, workforce planning and compliance reporting."