Why Cornerstone OnDemand Is Tanking

Tickers in this article: CSOD

NEW YORK (TheStreet) -- Cornerstone OnDemand provided weak fourth-quarter results Tuesday, causing shares to tank in afterhours trading.

Shares were dropping 7.47% to $54.00.

The cloud-based talent management software solutions posted, on an adjusted basis, net loss of $1.7 million, or 3 cents loss per share on revenue of $54.9 million for the fourth quarter.

Analysts, on average, were expecting breakeven earnings results on revenue of $55.08 million.

"The fourth quarter capped another year of solid execution and record results for Cornerstone," said Adam Miller, the company's President and CEO in the press release. "Our business has the benefit of many vectors of available growth, and we made strong progress across all of these dimensions last year. We saw our business expand in each of our segments, verticals, and geographies, as well as within our installed base. Quite simply, we believe that what we do-helping organizations to recruit, train and manage their people-is applicable to any group of people, anywhere in the world, and 2013 provided further validation of this belief."

Bookings came in at $84.5 million, representing a 51% increase compared to the same period a year ago.

The company said it ended the quarter with over 1,600 clients and more than 14 million users.

Cornerstone will hold a conference call at 5 p.m. to discuss the results.

-- Written by Andrea Tse in New York.

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