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Feb. 24, 2020, 4:37 p.m. EST

Cornerstone to acquire Saba for $1.4 billion, reports earnings

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By Max A. Cherney

Cornerstone OnDemand Inc. /zigman2/quotes/201253732/composite CSOD -2.88% shares fell roughly 5% in the extended session Monday after the software company released earnings and said it was going to acquire Saba for $1.4 billion in cash and stock. The company reported fourth-quarter earnings of $9.4 million, which amounts to 15 cents a share, versus a loss of $3.2 million or 5 cents a share in the year-earlier quarter. Adjusted for stock-based compensation, among other things, earnings were 43 cents a share. Revenue rose to $149.6 million from $138.2 million a year ago. Analysts polled by FactSet had estimated adjusted earnings of 34 cents a share on sales of $146.2 million; for the first quarter, analysts model adjusted earnings of 35 cents a share and sales of $157.5 million. The company said it expects first quarter revenue of $147 million and $150 million. Cornerstone also said Monday that it had reached an agreement to buy Saba, which is a "global leader in talent experience solutions," and expects the acquisition to "substantially increase unlevered free cash flow." Cornerstone stock has fallen 5.3% in the past year, as the S&P 500 index /zigman2/quotes/210599714/realtime SPX -1.51% gained 19.5%.

US : U.S.: Nasdaq
$ 28.28
-0.84 -2.88%
Volume: 770,733
April 3, 2020 4:00p
P/E Ratio
Dividend Yield
Market Cap
$1.73 billion
Rev. per Employee
-38.25 -1.51%
Volume: 3.59B
April 3, 2020 5:10p

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