market folly

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.