Product update, announcements
& more

What to make of Cornerstone's acquisition of Grovo

Asif |


Recently, Cornerstone on Demand acquired Grovo - a microlearning company for a consideration of $24m cash.

Grovo a San Francisco / NYC based company was focused as Micro-learning platform.

The deal while not insignificant was a bit of a step backwards for investors and founders of Grovo because the company was sold for far less than the actual capital raised, effectively providing a negative return for the company.

At the time of going to the press on the acquisition, the company said that they had over 300 customers and had over 2500 courses as a part of its repository.

Before commenting upon Grovo, it is important to understand the background and context of some of the other big players in the game:

Adobe’s print and media revenue (including Adobe connect) is less than 2% of annual revenue. The growth has flat-lined and the product is dated.

And for Pluralsight:

Revenue for the third quarter of 2018 was $133.7 million, representing a 9.7% increase compared to the prior year. Revenue growth on a constant currency basis was 9.9%.
Subscription revenue for the third quarter of 2018 was $120.7 million, representing a 19.4% increase compared to the prior year. Subscription revenue growth on a constant currency basis was 19.5%. 

While Pluralsight grew really fast in the past, its growth seems to have slowed down as well.

The strange thing is that anecdotal evidence suggests that learning platforms in the corporate world don’t see much adoption and while educational platforms like Udemy and Coursera have become commonplace, the overall completion rate of MOOC courses leaves much to be desired (at ~2%).

Coming back to Grovo, it looks like the micro-learning model failed to take off significantly. I think Grovo has had a great product and it is a shame to see them get acquired for this price. The learning platform industry has not seen any innovation in the recent past and while Grovo was one of the better platforms in the world of antiquated platforms, they just did not innovate enough to survive.

Grovo and Cornerstone on demand are trademarks of the respective companies. This blog or KloudLearn has no affiliation with either of these companies.

Feb 20, 2020 Learning Management System (LMS) is a common industry term. Most folks know what an LMS is, perhaps at a vague level. Their view might be...

Read story
Announcing support for SCORM 1.2 and 2004
Jan 5, 2020 KloudLearn announces support for SCORM 1.2. and SCORM 2004

Read story
Do you have a Fixed Mindset or a Growth Mindset?
Dec 24, 2019 It is with great interest that I read the book “Mindset – The New Psychology of Success – How we can learn to fulfill our...

Read story
Autonomous Learning
Dec 24, 2019 The LMS industry has been waiting for a Killer App and we have just discovered it. Read on.. The LMS industry has been dominated by...

Read story
If you think upskilling is expensive… think again.. Not Upskilling could cost you your business.
Dec 23, 2019 Amazon announced this week that it is investing $700M to retrain ⅓ of its global workforce. Given that Amazon is one of the largest companies...

Read story
Announcing Completion Settings
Dec 2, 2019 We’re happy to announce the launch of course completion settings feature which allows managers to be able to decide, how and when is a course...

Read story
The Value of Onboarding
Nov 21, 2019 Starting a new role for an employee can be a little overwhelming as they leave their familiar old routine and start a new one. From...

Read story
Why Leadership Training is Essential
Nov 11, 2019 A crucial success factor is getting leaders who know how to implement the plan of their organization better and get the most out of their...

Read story
Announcing support for Skill based learning
Nov 11, 2019 KloudLearn announces support for skill based learning - a radical approach to acquiring skills that matter.

Read story
Collaborative learning with the new course player experience
Oct 3, 2019 In this blog, we will in depth all of the features of the new course player along with the entire user journey.

Read story