Stock Alert: Cornerstone OnDemand Touches New Low

(RTTNews) - Shares of people development solution provider Cornerstone OnDemand, Inc. (CSOD) are tanking more than 26% Tuesday morning. The company's first-quarter revenue outlook has fallen short of estimates. Yesterday, the company also agreed to buy Saba, a global leader in talent experience solutions, and a portfolio company of Vector Capital for approximately $1.395 billion, in cash and stocks. Saba has a global revenue footprint and a complementary product portfolio to Cornerstone with approximately 3,300 clients.

For the first quarter, Cornerstone expects revenue between $147.0 million and $150.0 million. Analysts polled by Thomson Reuters see revenue of $157.69 million.

The company's fourth-quarter results, however, were better-than-expected.

Net income for the fourth quarter was $9.4 million, or $0.15 income per share, compared to net loss of $3.2 million or $0.05 per share in the same period last year. Excluding items, EPS of $0.43 beat the average estimates of analysts polled by Thomson Reuters of $0.34.

Revenue for the fourth quarter rose 8.5% year-over-year to $149.6 million.

CSOD touched a new low of $39.32 today morning and is currently at $40.51.