160711--Competitor-deep-dives--Cornerstone-v8.pdf

Yes

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•Company overview
•Product pricing and offering details
•Strategy to date
•Sales & Marketing
•Product Development
•Growth and forward-looking trends
•Competitive factbase
•Key competitors
•Skillsoft threats

3. © 2016 Skillsoft
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•$15
$25
$35
$61
$98
$154
$232
$316
$401
$421
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM (Q1 2016)
Historical Bookings $11
$20
$29
$47
$76
$118
$185
$264
$340
$365
$0
$50
$100
$150
$200
$250
$300
$350
$400
2007 2008 2009 2010 2011 2012 2013 2014 2015 LTM (Q1 2016)
Historical Revenue
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COMPANY FACTS AND HISTORY REVENUE & BOOKINGS ($M)
Source: Company website, internal analysis and playbooks

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HISTORICAL STOCK PRICE / VOLUME CHART
VALUATION SUMMARY ($M)
Source: Financial filings, company website, Google Finance. Financial information available as of 5/20/2016.
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Source: Company website and filings. * First time for CSOD that it has been this close to non-GAAP profitability as a public company.
(1) Cash flow from operations (excluding tax payments for stock-based compensation and investment premium) less CapEx and SDC.
(2) Cash flow from operations (excluding tax payments for stock-based compensation and investment premium) less CapEx.
HIGHLIGHTS
FINANCIAL SUMMARY ($M)

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Source: Company website, internal analysis and playbooks.
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Name Company role Tenure Background
Adam Miller President, CEO,
Founder
1999 Former investment banker / consultant. BS from Wharton School of Business, JD from the UCLA School of
Law, an MBA from UCLA’s Anderson School of Business; CPA + Series 7 certifications
Brian Swartz CFO 5/2016Former CFO of Zulily (2015 -2016) and Apollo Education Group (2006 –2015)
Perry Wallack Ex. CFO, Co-
founder
1999 –
5/2016
Majority of early career w/Ernst & Young LLP, (tax and audit staff, engagement budgets and issuing
financial statements for clients). BA in Economics from the UMich; CPA (inactive)
Kirsten Hevley COO n/a Member of the Supply Chain Operations Strategy Group at PwC and IBM Business Consulting Services.
Extensive experience providing operational expertise to Fortune 500 companies using enabling
technologies
Mark Goldin CTO 6/2010Former COO/CTO at Green Dot Corporation where he oversaw operations w/team that helped grow
valuation by >10x in 3 years. Goldin has also held CTO positions at Thomson Elite (where he conceived,
founded and ran SaaS pioneer Elite.com) and DestinationRx
Dave Carter CSO (Sales) 8/2008Leads all sales and pre-sales teams in the Americas + Global Alliances and Sales Operations function.
Prior to CSOD, Dave led sales teams for Accenture, Ceridian, and ProBusiness
Beth Thompson RVP Marketing,
Americas
11/2009Responsible for brand awareness, demand generation, product marketing, strategic events and
communications. Previously at SuccessFactors in a variety of marketing positions
Jason Corsello VP, Corporate
Strategy &
Development
6/2011M&A, investments, Accelerator program and overseeing new product initiatives (PaaS, Big Data, analytics,
mobile). Formerly at Knowledge Infusion (now Appirio). He also held roles at Yankee Group and Flextronics
International
Source: Company website, internal analysis and LinkedIn
Current title within company Recent hire (LTM)

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[ ]
Platform
Target
Space
SaaS-based Comprehensive Talent Management Suite
B-B:Corporate, Government, Education
Recruiting, Onboarding, Learning, Connect, Performance,
Compensation, Succession
Mainly middle market Enterprise focus

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•Company overview
•Product pricing and offering details
•Strategy to date
•Sales & Marketing
•Product Development
•Growth and forward-looking trends
•Competitive factbase
•Key competitors
•Skillsoft threats

10. © 2016 Skillsoft
Corporate* Non-Profit Higher-Ed K-12 Federal Local
LMS Tool ONLY
Pricing Example
Total Cost of Ownership Model (3 year term):**
1)1x Implementation Cost (~$140K)
2)~$20.55/year per user*** for ~1K-5K active internal users (~$62K/yr) +
3)$6/year per user for ~500 active external users (~$3K/year)+
4)Annual Maintenance / Support Fees: ($3.5K/year) =
~$345K
Implementation Cost      
Customization      
Active / Inactive User Licenses      
Hosting / Storage      
Landing Pages      
Payment Processing      
Technical Support ($250/hr)      
Additional Services / Training
(flat fee / per user)
     
10
*Offerings available for enterprise (full suite across entire org) or custom (select features for discrete groups, teams, departments).
**Volume-based pricing estimates based on BAFO government pricing and sales rep intelligence from customer offers.
***Internal Sales team has seen $17.50/yr/user for 10k active user account.
Source: Internal Sales team communications (June ’16), Internal Sales Ops analysis (June ’16). All data obtained via Freedom of Information Act.

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Recruiting
Social Sourcing •Directly reach targeted talent on social profiles
Applicant Management •Tools managing offer letters, interview feedback, compliance management, applicant tracking
Employee Referrals •Leverage employee networks to source top quality candidates
Configurable Career Sites •Customizable career sites that attract talent
Cornerstone Selection
•Predictive analytics to inform hiring decisions with a data-driven approach; includes job
previews, behavioral assessments, work simulations, and interview guides
Talent Scoring •Weight pre-screening questions / score candidates
Onboarding
Welcome Pages •Personalized experience providing information about organization / culture
Forms Management •Customizable onboarding forms, tasks and workflows
Tasks & Training •Assignable tasks / training to new hires
Employee Productivity •Internal social network allows for employees to stay connected to colleagues
Connect
Live Feed •Users can post relevant news / information to colleagues
Communities •Sharing / collaborating on best practices
Task Management •Managing / assigning tasks in centralized location
Collaborative Learning •Deliver social learning at scale and encourages sharing of best practices / learning concepts
Learning /
Extended
Enterprise
LMS •ILT, virtual learning, exams, certifications and compliance content
Mobile Training •Access transcripts, take trainings, and courses online / offline from smartphones and tablets
Certifications & Compliance •Automate administration / oversight of employee compliance management process
Performance
Performance Management •Measure employee performance, 360-degree reviews, competencies and goal completion
Skills Matrix & Competencies•Provide tools to identify and close skill gaps and align employees with company vision
Observation Checklist •Observe employees from any device as they perform job responsibilities
Social Feedback & Goals •Offers team recognition, goal achievement with social feedback badges and 1-on-1 encouragement
Source: Company site (May’16), Internal analysis (Jan’16 Playbook)

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Compensation
Planning •Manage salary, merit increases, market adjustments, lump sum payments, and other pay items
Incentive Management
•Develop and implement incentive programs for the distribution of bonus and equity w/tools that
improve accuracy, boost consistency, and ensure compliance
Compensation Statements
•Create organization-branded compensation statements that provide employees w/information
on the total value of their compensation package in one view
Budgeting & Reporting
•Reports and dashboards that show approval workflows, budget summaries and scenarios, and
analytics tools that allow for custom report creation
Succession
Succession Planner /
Talent Pools
•Track mission-critical skills, roles, and competencies and assemble high-potential employees,
resulting in a resource pool which can be drawn upon as needed
9-box Grid
•Visualize performance and potential information for the organization to clearly identify a team's
capabilities and development needs
Career Center
•Provide career planning and management tools to boost employee retention and help the
organization align employees with the best-fit roles
Internal Recruiting
•Consider internal / external candidates based on leadership qualities, defined attributes and
employee career preferences; reduce recruiting and training costs
Analytics
Cornerstone Reporting
•Configurable reports and dashboards deliver real-time talent data from across the Cornerstone
suite. Our proprietary business intelligence tools instantly and accurately provide data through 150+
standard and custom reports and dashboards
Cornerstone View (5/2016)*
•Search, filter and compare people with interactive data visualization tools on a tablet. Answer
workforce questions using data from across Cornerstone products
Cornerstone Insights (9/2015)•Offers Compliance Guide / Control, Predictive Succession and Career Mobility tools
Cornerstone Planning (5/2016)*
•Enables headcount planning by improving collaboration across Finance, HR and management.
Generate interactive headcount forecasts, see cost impacts and identify talent gaps to improve
hiring and development planning
Source: Company site (May’16), Internal analysis (Jan’16 Playbook). * Released at Convergence Conference (May 2016).

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Link
Employee / Manager
Self-Service
•Maintains timely and accurate people data
Personalized Data Management
•Collect employee data across an organization with customizable forms and dynamically created
fields. Supports all employee processes: hires, rehires, terminations and transfers
Approval Workflows
•Automate and standardize HR processes by routing documents, requests, forms and tasks
through configurable approval workflows
Reporting w/ Effective Dating
•Report on organizational changes over time and across combined core employee and talent
data w/tools to backdate and future date staffing updates and see reasons for change
Edge
Marketplace
•Browse and purchase from a directory of prebuilt integrations to extend Cornerstone to
address HR and business needs. Filter to quickly view integrations by product and functionality.
Trial Integrations •Try prebuilt integrations before committing to Marketplace and rolling out new functionalities
Manage Integrations •Allows companies to purchase prebuilt Marketplace integrations that can be easily configured
Growth Edition
(SMB Solution;
ex. Sonar6)
Self-Configure •Configure to align with business processes; implementation in 3 hours or less
Goals & Reviews •Create employee goals, align goals to business objectives, and evaluate employee performance
Learning & Development •Browse and assign training content based on individual needs and performance
Reporting & Insights
•Analytics and reporting tools -revealing training needs to compensation and succession planning
(Cornerstone’s Recruiting / Analytics tools have to be sold as separate products; not fully
integrated)
Source: Company site (May’16), Internal analysis (Jan’16 Playbook)

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Support
Packages
3 Primary Tiers
•Provide support on feature/function questions to aid client’s use of application
•Conduct initial diagnosis on technical issues
•Manage scoping, tracking and delivery of requests for standard engineering services
•Communicate w/clients on progress of any product issues through to resolution
•Research complex issues with internal SMEs to provide clients w/solutions
•Maintain 24x7 access to virtual Knowledge Base and Cornerstone Success CenterLegacy: Professional / Premier
Content
Services
Content Partners •Cornerstone delivers content in partnership w/over two dozen providers (incl. Skillsoft)
ThinkContent •Courseware gateway. Clients can review all content partner courseware and determine best fit
Custom Solutions •Cornerstone helps tailor unique solutions to meet a client’s specific business challenges
Web Solutions •Online e-learning content
One POC
•Content partners are pre-integrated into system -no additional fees for integration / hosting. Single
POC and content purchase addendums can be easily added to existing agreements.
Other
Miscellaneous
Services
Implementation Services •Configuration, accelerated system deployment, wide-end user adoption
Systems Integration
•Open-system architecture; integrate w/billing, compensation management systems, customer
resource management databases, sales tracking and customer service databases
Content Integration
•Use proprietary off-the-shelf content; integrate custom coursework and content provided by 3
rd
party vendors; provide recommendations / simplify content integration process
Software Configuration •Optimization / configuration of platform to match workflows, hierarchy and processes
Business Consulting
•Cornerstone Consultants offer consulting on Talent Management, Change Management, Business
Process Alignment, Cloud Best Practices, and deliver the Maturity Model
Educational Services
•Consulting, training and performance support toolsto help companies learn CSOD talent
management applications; includes live webcasts, online courses, virtual labs, communities,
live onsite training
Source: Company site (May’16), Internal analysis (Jan’16 Playbook)

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Consistent look and feel
across organically
developed application
•Although there are some inconsistencies between the newest and oldest modules, the Cornerstone app still
looks and feels like a single application
•Acquired technology is usually rewritten to give the same look and feel(example; Sonar 6 UI in
Succession)
Modern UI in each area of
Talent Management
•While they might not support the most complex configurations, Cornerstone has done a great job at delivering
an easy-to-use UI for the most common learning and talent flows
•Observation checklist functionality allows differentiation for healthcare and manufacturing
•New modules such as Succession and Recruiting and Onboarding really showcase the ease-of-use
Engaging social features•Cornerstone delivers a live feed much like a Facebook timeline.
•Native support forcommunities and badgingincrease engagement
Certified integrations with
Workday and Salesforce
•Certified integration with Workday provides additional market opportunity(at least until Workday
releases their LMS).
•Salesforce integration is much more full featured than SumTotal’scurrent offering
Edge Marketplace
delivers PaaS capabilities
•Customers can easily add on additional capabilities and integrations
•Many recruiting and onboarding partner apps including E-verify, I-9, W-4, Assessments and background
checks and screening
•Will likely leverage partner network similar to SuccessFactors use of SAP HANA to rapidly build out additional
capabilities
Source: Cornerstone Public Website

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Source: Company site (June ‘16)
Playlists are
readily
available –
both curated
by “experts”
or custom lists
you can
create
through drag
and drop
The widgets
are
configurable
by the
admin to
customize
the home
page
Customized Home page from one of
our mutual customers. Branded, with
different colors and different widgets
Browser
Recommend
ations Zoom

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Configuration screens
(especially on newer
modules) are easy to use and
highly configurable
Most pages have a
few important
metrics called out at
the top of the page
Although the UI is not as sleek as some of the
newer SumTotal screens, it is consistent
throughout most end-user and admin modules
Source: Company site (June ‘16)

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Updated the UI on organic
succession solution to the look
of the acquired Sonar6 product
Compensation is more
graphical than
SumTotal’s spreadsheet-
style
Source: Company site (June ‘16)
Most modules have an attractive, graphical look and
feel –especially newer modules like succession and
onboarding

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Onboarding module is
highly configurable
Source: Company site (June ‘16)
Observation checklist functionality demos well –
especially in manufacturing and healthcare
environments

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Checklists and
recruiting have nice
smartphone
interfaces
Source: Company site (June ‘16)
Smartphone enabled throughout most of the talent
lifecycle. “face game” increases engagement for new
hires and after promotions/moves
Smartphone
observation
checklists is a
differentiator

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Badges add more engagement
to social feedback
Facebook-like news feed
allows filtering organization
wide, a specific organization
or just a specific team
Source: Company site (June ‘16)

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Cornerstone integration into
Salesforce is more complete offering
as many features are only available in
SumTotal outside of Salesforce.
Source: Company site (June ‘16)
Cornerstone is the only Workday learning partner.
SumTotal can match much of the integration’s
functionality but Cornerstone usually wins these
deals since they are the only certified partner

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Source: Company site (June ‘16)
The availability of a Marketplace strengthens
Cornerstones PAAS messaging and allows
customers easy access to capabilities that
Cornerstone does not yet natively provide.

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•Company overview
•Product pricing and offering details
•Strategy to date
•Sales & Marketing
•Product Development
•Growth and forward-looking trends
•Competitive factbase
•Key competitors
•Skillsoft threats

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Source: Company site, LinkedIn press releases, LinkedIn site (Jan’16); Forbes (Jan’16)
Cornerstone constantly positions itself as
an end-to-end solution, particularly b/c new
capabilities have been recent additions to
the Talent Management core

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•Sales org aligned to corporations by type
•Strategic Accounts: Largest 150 corporations
•Enterprise: 5,000+ staff; sales execs have an average tenure of 20+ years
•Nationals / Mid-Market: 1,000 –4,999 staff; sales execs have average tenure of 15+ years
•Majors: 251 –999 staff; sales executives have an average tenure of 15+ years in sales
•Growth Edition: <=250 staff
•Public Sector: Federal, state and local government, K-12 schools, higher education
•Healthcare: Hospitals, pharma, biotech, life sciences, medical device companies
•Geographic Focus
•Dedicated sales teams for EMEA (core European markets), APAC (Australia, India, China, Japan), and LATAM
(Mexico & Brazil)
•Key Professionals: Dave Carter (CSO); Vincent Belliveau (EVP/GM, EMEA); Frank Ricciardi (VP/GM, APAC)
•Sales supported by product specialists who provide technical / product expertise to facilitate process
•Sales enablement professionals provide onboarding and professional development for sales reps
•Account manager team responsible for renewals and up-sales to existing clients
Source: Company site (May’16), Form 10-K (as of 12/31/2015) p. 15, internal analysis and playbooks

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•Demand Generation:Lead generation through email and direct
mail campaigns, participation in industry events, securing event
speaking opportunities, online marketing and search marketing
•Corporate Marketing:Leveraging product marketing, client
success stories, thought leadership content, and brand
awareness advertising campaigns
▪Host regional client user meetings and co-market w/
strategic distributors including joint press announcements
and demand generation activities
•Marketing Communications:Media relations, corporate
communications, industry analyst relations activities and social
media outreach
•Social media communities include Facebook, LinkedIn,
Twitter, and blogs
•YouTube channel includes samples, promotional videos,
webinars, product overviews, client stories, and coverage
on conferences (i.e. Convergence)
Source: Company site (May’16), Form 10-K (12/31/2015) p. 15, internal analysis and websites (Facebook, LinkedIn, YouTube, etc.)

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Source: Company site (June’16)
Cornerstone brand strength is growing in
social media –30K+ likes on Facebook
and 9K+ followers on Twitter
Cornerstone brand strength is growing in
social media –30K+ likes on Facebook
and 9K+ followers on Twitter
1,100+ YouTube subscribers with
significant video feed (>50 videos)

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Source: Company site, YouTube (Jun’16).
 Product: platform and features
 End-to-end talent management for SMBs to large enterprises
 Unified product experience -plan to implement wider-scale
integration in 2016
 Released Analytics products in May 2016
 Extensive, integrated marketplace w/platform, app and content
partners
 Convergence Conference:
 Over 1,800+ clients, analysts and attendees for a 5-day
conference
 Over 60+ breakout sessions for existing and prospective clients
on topics including talent management strategy, product
showcases (Cornerstone Edge, Cornerstone Link, etc.), live-
interactive training sessions, partner summits, and networking
opportunities
 Various product releases including Cornerstone View and
Cornerstone Planning
 Marketing
 Continued presence in social media and YouTube
 SpyFu AdWords monthly Adwords budget estimate is ~$59k
 Promotion of enterprise features via direct marketing
 Host regional client user meetings and co-market w/ strategic
distributors including joint press announcements and demand
generation activities

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Source: Company website, Crunch Base, and LinkedIn.
Date Company Total Value
Capabilities Acquired
Strategic Rationale
Platform Customers Talent
April
2012
$14M
($13M cash +
$1M in equity)
•Highly interactive
technology that
engages clients
SaaS-based
solution; facile
integration
•375 global
clients,
primarily in
SMB
market
•Michael Carden
(CEO / Co-
Founder)
•Company capitalizes on disruption in talent
management market caused by recent
consolidation
•Products to remain separate, preserving
Cornerstone’s 100 percent organically
developed solutions for enterprise and mid-
market clients
•Sonar’s talent management solution
rebranded as Cornerstone Growth Edition
(specifically for SMBs)
Nov
2014
7
~$42.5M cash
(+assumption of
$2M of debt +
RSUs covering
up to 200k
Cornerstone
common
shares)
•Utilizes machine
learning, data
science and
leverages big
data
infrastructure to
develop
predictive
analytics for
workforce
performance
•n/d •Max Simkoff
(CEO / Founder)
•Asif Qamar (VP
and Chief
Architect, Evolv)
•Dennis Yen (VP
Dev.)
•Accelerates Cornerstone’s roadmap for
workforce planning and predictive analytics
•Provides seasoned team with deep
machine learning and big data analytics
experience
•Strengthens Cornerstone’s core talent
management suite

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Source: Company website, Crunch Base, and LinkedIn.
Date Company
Investment /
Round
Capabilities Acquired
Description
Content/Platform Customers Talent
June
2015
One Month
$2.9M
(Seed, co-
investor)
•Ruby on Rails, HTML,
CSS, Growth Hacking,
iOS and Programming
for Non-Programmers
•>25,000
students, incl.
employees from
Google,
Bloomberg,
Singularity
University and
SVA NYC
•Mattan Griffel
(CEO / Co-
founder)
•Chris
Castiglione
(Dean / Co-
founder)
•One Month is a learning platform that
promises a solid, enterprise-based
education in one month or less. One Month
launched in August 2013 out of NYC-
based Y Combinator accelerator
•Offer mainly IT-related content
n/d RallyTeam n/d
•Enterprise Hackathon
app / event organizer
•n/d •n/d •Talent networking platform that enables
companies to better understand / utilize
employees. Rallyteam matches employees
to projects, tasks, ideas and people
n/d Strive n/d
•n/d •n/d •n/d •Automates technical hiring process so
companies can source qualified software
developers, test their coding skills, and hire
more effectively.
Sept
2014
Workpop
$7.9M
(Series A, co-
investor)
•Screening,
onboarding, team
management
•n/d •Chris Ovitz,
Reed
Shaffner (co-
CEOs co-
founder)
•Connects service economy employers and
candidates to facilitate the hiring process/

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•Company overview
•Product pricing and offering details
•Strategy to date
•Sales & Marketing
•Product Development
•Growth and forward-looking trends
•Competitive factbase
•Key competitors
•Skillsoft threats

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Source: Gartner Research (August 2015) and IDC Marketscape (May 2016).
Cornerstone
identified as
a “leader”
along with
SAP and IBM
Gartner
identified
Cornerstone as
a “leader” along
with SAP and
Oracle

34. © 2016 Skillsoft
Saba’s global customers use its talent management solution to help them hire, develop, engage and inspire their people. Saba
offers proactive, personalized recommendations on candidates, connections and content to help their business and their peoplelead
and succeed. Saba has 31M+ users and 2,200 customers.
$121M
Revenue
SAP Success Factors
Global provider of cloud-based human capital management (HCM) software. The HCM suite integrates onboarding, social business
and collaboration tools, a learning management system (LMS), performance management, recruiting software, applicant tracking
software, succession planning, talent management, and HR analytics to deliver business strategy alignment, team execution, and
maximum people performance to organizations of all sizes across more than 60 industries.
$793M
Revenue
Degreed
Platform to find, track and recognize ALL learning (adaptive, sits between HR & LMS). Degreed scores and organizes users’ formal
(e.g., Harvard) and informal (e.g., iTunes U, Khan) online content into micro-learning segments, enabling users to unlock
employment and learning opportunities. Available for organizations and individuals (free).
$30M
4 rounds
Content aggregator w/ single point of access to entire internal learning catalog; search across Content, Paths, and Learners instantly
w/ single search term; Every learner receives personalized results based on skills and interests; integration capabilities w/LMS, free
content (Khan Academy, YouTube, TED, etc.) as well as content vendors.
$1.6M
2 rounds
Products include database and middleware software, application software, cloud infrastructure software and hardware systems
(Oracle Engineered Systems, servers, storage, networking and industry products), along with support and related services. Offer
400k+ customers a choice of deployment models to suit needs including deployment of products via our Oracle Cloud offerings, the
acquisition of Oracle products and services for an on-premises IT environment or a mix of these two models.
$37.5BN
Revenue
SumTotal
Only HR software provider to deliver Talent Expansion™ solutions that help organizations discover, develop and unleash hidden
potential within workforce and business ecosystem. SumTotal goes beyond traditional talent management and HCM applications,
offering contextual and pervasive HR solutions that actually help improve employee performance in real time.
$200M
Revenue
34
Source: Company websites (May ’16), Company filings, Crunchbase. Owler used to estimate Saba revenue.

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Source: Company site (May’16), Internal analysis (Jan’16 Playbook)

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•Ease of Use
•End User –Winter 2016 looks much better and the UI is vastly improved from previous releases but
Cornerstone is still easier in many areas.SumTotal struggles in sandboxes where users still are
overwhelmed by our functionality compared to a simpler Cornerstone experience.
•Admin –For example; Cornerstone shows a 6-click process for importing employee data which is much
simpler than what SumTotal shows for data integration. In combined learning and talent deals, users can
also see some inconsistency in administering talent vs. administering learning.
•Feature/Module Gaps
•Recruiting & Onboarding –SumTotal’s organic solution is outdated and the partnership with iCIMS
provides better capabilities but many customers do not want a separate product, they want that part of
their core HR or TM solution
•Cornerstone Succession looks and demos better than SumTotal’s solution
•Cornerstone’s new analytics offering(Insights, Planning, etc.) goes beyond what SumTotal offerings
in Analytics
•Integrations/Partnerships–As the only certified Workday partner, it is very hard to beat Cornerstone on deals
with Workday customers.Their Salesforce integration is more compelling than SumTotal’s and their Edge
Marketplace demonstrates better than our elixHR integration messaging
Source: SumTotal Operational Strategy team (D. Bocabella). Feature gaps sourced from Solution Architects.

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Skillsoft’s RRF contracts expiring FY 2015-17 held a total value of ~$560M
Known competitive presence for CSOD was reported across ~$43M, approaching ~8% of all expiring
contracts
CSOD’s presence in RRF tracking is first noticeable as of Q4-FY15 largely due to shift in RAE collection of
competitive presence intelligence (but “unknown” competitive presence is still the largest threat collected through
this resource)
▪Anecdotally, CSOD has been in almost every client deal while competitors such as SuccessFactors,
Saba, Oracle, etc. are seen in some deals
As a result, CSOD consumer offerings are likely affecting a significant portion of our customer base that we can’t
see and our primary buyers don’t know about -this “invisible” presence is a massive risk
▪Top reasons / feedback from at risk/ lost contracts in the RRF data include:
–1) Poor usage and adoption
–2) Lack of client engagement
–3) Platform deficiency / gaps

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38
*RRF stands for Renewal Risk Factor and its scope covers all $15K uncommitted contracts (w/SalesForce data projected out 8 rolling quarters)
**Indicates accounts in which Lynda competitive presence noted by RAE (Regional Account Executive), not necessarily accounts that are lost or at risk
Source: Internal SalesForce.com RRF Data and Customer Insight Interviews (Jan’16)
100%
6%
8%
4%
2%
0%
31
2015 Q2
10333
2016 Q1
15
2015 Q4
79
2015 Q3 2016 Q4
2714
2015 Q1
28
2016 Q2
35
2017 Q42016 Q3
97
2017 Q3
54
2017 Q2
45
2017 Q1
Expiring contracts with disclosed CSOD presenceAll other expiring contracts
# of contracts
w/CSOD presence
00 0 2 3 7 14 52 32 36 28 76
CSOD contracts
as % of total**
0%0% 0% 0% 1%2% 4% 7% 8% 7% 6% 9%
CSOD
presence
noted across
~$43M of
expiring
contracts for
FY 2015-17,
reaching
~18% on value
basis and ~9%
on contract
basis

39. © 2016 Skillsoft
39
*RRF stands for Renewal Risk Factor and its scope covers all $15K uncommitted contracts (w/SalesForce data projected out 8 rolling quarters)
**Indicates accounts in which Lynda competitive presence noted by RAE (Regional Account Executive), not necessarily accounts that are lost or at risk
Source: Internal SalesForce.com RRF Data and Customer Insight Interviews (Jan’16)
80%
100%
20%
40%
0%
60%
7
2017 Q1
32
2016 Q4
52
2016 Q2
14
2016 Q3
Expected to Grow
Expected to Retain
Risk of Erosion
Will Not Renew
Lost to Competition
May Lose
Total = 105
LTM Q1 2017 # of Expiring RRF contracts w/disclosed CSOD presence* by RAE Risk Factor Category
Expected erosion
value ($MM)**
$0.338 $0.236 $2.358 $1.190
% Lost 57% 84% 55% 77%
% At risk 41% 5% 26% 23%

40. © 2016 Skillsoft
Top 3 customer
contracts
Value Status
BP International
Ltd.
~$1.4M
30% risk of
erosion**
Deutsche Bank
Americas
~$1.3M
50% risk of
erosion**
Orange S.A. ~1.3M
20% risk of
erosion**
American***
Express
~$860K
RFP w/ CSOD.
Implementation
planned for 1/17 on
Performance
Management,
Talent & Learning
all at once
40
*RRF stands for Renewal Risk Factor, and its scope covers all $15K uncommitted contracts (with Sales Force data projected out 8 rolling quarters)
** FY17 contract. ***SumTotal managed a 6-month extension but lost RFP to CSOD. Source: Internal SalesForce.com RRF Data / Customer Insight Interviews (Jan’16)
Without CSOD Presence
With CSOD Presence
1,841
All contracts
105
Contracts with
CSOD presence
<$100K
$300-500K
$100-300K
$500K-1M
$1-3M
LTM Q1 2017 # of Expiring RRF contracts by disclosed CSOD presence
and total contract value*