Cornerstone OnDemand: Not A Compelling Buy
Photo by Marko Geber/DigitalVision via Getty Images
Article Thesis
Cornerstone OnDemand (CSOD), a human capital management (HCM) software company, has been increasing their free cash flow margins in recent years, partly due to their acquisition of Saba Software in 2020. Free cash flow this year is expected to be ~$143mn, and will escalate further in the future if management hits their mid-term 30%+ adjusted free cash flow margin goal. Since Cornerstone has a scalable business model that requires…
