Jive Software
Feb 7, 2012

Jive Software Announces Fourth Quarter and Full Year 2011 Financial Results

  • 4Q total revenue of $22.5 million, up 53% year-over-year
  • 2011 total revenue of $77.3 million, up 67% year-over-year
  • 4Q total billings of $36.0 million, up 40% year-over-year
  • 2011 total billings of $104.9 million, up 46% year-over-year

PALO ALTO, Calif., Feb. 7, 2012 (GLOBE NEWSWIRE) -- Jive Software, Inc. (Nasdaq:JIVE), today announced financial results for its fourth quarter and full year ended December 31, 2011.

A photo accompanying this release is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11591

"We are thrilled to announce record financial results for the quarter, which represented a strong finish to a remarkable year," stated Tony Zingale, Chairman & CEO of Jive. "Jive is increasingly being adopted by large global organizations that are investing in social business to change the way work gets done. During the fourth quarter, we had a record number of wins with an annual subscription value of $1 million or greater, and more than doubled the average annual deal size for new relationships during 2011."

Zingale added, "The completion of Jive's IPO was a milestone event for us as we became the first publicly traded social business software pure play. Jive is well-positioned to execute on our growth strategy and capitalize on our leadership position in this rapidly growing, multi-billion dollar market."

Fourth Quarter 2011 Financial Highlights

Non-GAAP net loss for the fourth quarter was $9.1 million, compared to a net loss of $5.7 million for the same period last year. Non-GAAP net loss per share for the fourth quarter was $0.28 based on 32.5 million weighted-average shares outstanding, compared to net a loss per share of $0.25 based on 22.7 million weighted-average shares outstanding for the same period last year.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

Fourth Quarter and Recent Business Highlights

Full Year 2011 Financial Highlights

Non-GAAP net loss for fiscal 2011 was $33.9 million, compared to a $23.7 million net loss for fiscal 2010. Non-GAAP net loss per share for fiscal 2011 was $1.30, based on 26.1 million weighted-average shares outstanding, compared to a loss per share of $1.07 based on 22.1 million weighted-average shares outstanding for fiscal 2010.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

Financial Outlook

As of February 7, 2012, Jive is initiating guidance for its first quarter and full year 2012 as follows:

With respect to the Company's expectations under "Financial Outlook" above, the Company has not reconciled non-GAAP loss from operations or non-GAAP loss per share to GAAP loss from operations and GAAP loss per share because the Company does not provide guidance for stock-based compensation, income taxes or amortization of intangible assets, which are reconciling items between those Non-GAAP and GAAP measures. As items that impact loss from operations and loss per share are out of the Company's control and/or cannot be reasonably predicted, the Company is unable to provide such guidance. Accordingly, a reconciliation to loss from operations and loss per share is not available without unreasonable effort.

Quarterly Conference Call

Jive will host a conference call today at 2:00 p.m. PT (5:00 p.m. ET) to review the Company's financial results for the fourth quarter and full year 2011, in addition to discussing the company's outlook for the first quarter and full year 2012.  To access this call, dial (877) 545-1415 (domestic) or (719) 785-9448 (international) with conference ID #2117974.  A live webcast of the conference call will be accessible from the Investor Relations section of Jive's website at http://investors.jivesoftware.com/ and a replay will be archived and accessible at: http://investors.jivesoftware.com/events.cfm.  A replay of this conference call can also be accessed through February 21, 2012, by dialing (877) 870-5176 (domestic) or (858) 384-5517 (international). The replay passcode is 2117974.

About Jive Software

Jive Software (Nasdaq:JIVE) is a leading global Social Business company. We bring social technology innovations from the consumer world into enterprises securely and at scale, changing the way work gets done. Our platform combines the power of big data, enterprise integrations and social collaboration technologies. Millions of people at the world's largest companies are using Jive-powered communities internally and externally to transform their businesses.

Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures in this release. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles. 

Non-GAAP operating loss, net loss and net loss per share exclude stock-based compensation expenses, non-recurring expenses related to acquisitions, amortization of acquisition related intangible assets, and changes in fair value of warrant liabilities.  Total billings is defined by the company as revenue plus the change in total deferred revenue. Management presents these non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses the non-GAAP financial measures for planning purposes, including analysis of the Company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating the Company's financial and operational performance. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. We intend to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting. A reconciliation of these non-GAAP measures to GAAP is provided in the accompanying tables.

Safe Harbor Statement

"Safe Harbor" statement under Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements, including statements concerning our financial guidance for the first fiscal quarter of 2012 and the full year of 2012, our position to execute on our growth strategy, and our ability to capitalize on our leadership position in the social business market. The achievement of success of the matters covered by such forward-looking statements involve substantial risks, uncertainties and assumptions. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results or events could differ materially from the results expressed or implied by the forward-looking statements we make.

The risk and uncertainties referred to above include, but are not limited to, risks associated with our limited operating history; expectations regarding the widespread adoption of social business software by enterprises; uncertainty regarding the market for social business software; changes in the competitive dynamics of our market, our ability to increase and predict new subscription, subscription renewal or upsell rates and the impact these rates may have on our future revenues; our reliance on third-party service providers to host some of our products; the risk that our security measures could be breached and unauthorized access to customer data could be obtained; potential third party intellectual property infringement claims; and the price volatility of our common stock. 

More information about potential factors that could affect our business and financial results is contained in our prospectus as filed with the Securities and Exchange Commission. Additional information will also be set forth in our quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that we make with the Securities and Exchange Commission. We do not intend and undertake no duty to release publicly any updates or revisions to any forward-looking statements contained herein.

The photo is also available at Newscom, www.newscom.com, and via AP PhotoExpress.

JIVE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
         
         
  Quarter Ended December 31,  Year Ended December 31, 
 2011201020112010
         
Revenues:        
 Product  $ 19,173  $ 11,903  $ 65,265  $ 37,827
 Professional services  3,341  2,769  12,020  8,441
 Total revenues  22,514  14,672  77,285  46,268
         
Cost of revenues:        
 Product  6,481  3,226  21,689  9,870
 Professional services  3,450  2,959  12,596  9,836
 Total cost of revenues  9,931  6,185  34,285  19,706
Gross profit  12,583  8,487  43,000  26,562
         
Operating expenses:        
 Research and development   7,775  5,401  31,095  18,278
 Sales and marketing   13,037  8,082  44,794  28,592
 General and administrative  3,675  1,448  12,795  6,746
 Total operating expenses  24,487  14,931  88,684  53,616
         
Loss from operations  (11,904)  (6,444)  (45,684)  (27,054)
         
Other income (expense), net:        
 Interest income  4  23  40  82
 Interest expense  (812)  (85)  (1,735)  (264)
 Change in fair value of warrant liability  --   (188)  (7,185)  (222)
 Other, net  (7)  (44)  (3)  (91)
 Total other income (expense), net  (815)  (294)  (8,883)  (495)
         
Loss before provision for (benefit from) income taxes  (12,719)  (6,738)  (54,567)  (27,549)
Provision for (benefit from) income taxes  (53)  27  (3,763)  91
Net loss  $ (12,666) $ (6,765)  $ (50,804)  $ (27,640)
         
Basic and diluted net loss per share  $ (0.39)  $ (0.30)  $ (1.95)  $ (1.25)
         
Shares used in basic and diluted per share calculations  32,490  22,745  26,071  22,096
 
JIVE SOFTWARE, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)
(Unaudited)
     
  December 31, 
 20112010
Assets    
     
Current assets:    
Cash and cash equivalents  $ 180,649  $ 43,348
Accounts receivable, net  31,999  20,344
Prepaid expenses and other current assets  4,503  3,031
Total current assets  217,151  66,723
     
Property and equipment, net   12,639  6,771
Goodwill  17,265  831
Intangible assets, net   11,141  2,807
Other assets   146  408
Total assets  $ 258,342  $ 77,540
     
Liabilities, Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit)
     
Current liabilities:    
Accounts payable  $ 4,566  $ 2,458
Accrued payroll and related liabilities  6,629  3,706
Accrued sales and use tax  1,268  923
Other accrued liabilities  3,856  2,944
Deferred revenue, current  62,329  37,034
Warrants on preferred stock  --  264
Revolving credit facility  --  3,533
Term debt, current  2,946  1,806
Total current liabilities  81,594  52,668
     
Deferred revenue, less current portion  15,497  13,161
Term debt, less current portion  10,192  3,909
Other long-term liabilities  340  276
Total liabilities  107,623  70,014
     
Redeemable and convertible preferred stock:    
Series A preferred stock, $0.0001 par value, liquidation preference $0 and $15.4 million. Authorized 10,100,000 shares; issued and outstanding 0 and 10,100,000 shares at December 31, 2011 and 2010  --  15,381
Series B preferred stock, $0.0001 par value, liquidation preference $0 and $12.3 million. Authorized 3,335,817 shares; issued and outstanding 0 and 3,335,817 shares at December 31, 2011 and 2010  --  12,252
Series C preferred stock, $0.0001 par value, liquidation preference $0 and $30.0 million. Authorized 9,646,550 shares; issued and outstanding 0 and 5,787,930 shares at December 31, 2011 and 2010  --  29,928
   --  57,561
Commitments and contingencies     
     
Stockholders' equity (deficit):    
Common stock, $0.0001 par value. Authorized - 290,000,000 shares; issued - 68,568,778 shares at December 31, 2011 and 29,525,886 shares at December 31, 2010; outstanding - 61,308,006 at December 31, 2011 and 22,881,335 at December 31, 2010  7  3
Less treasury stock at cost  (3,352)  (3,352)
Additional paid-in capital  258,779  7,216
Accumulated deficit  (104,725)  (53,921)
Accumulated other comprehensive income  10  19
Total stockholders' equity (deficit)  150,719  (50,035)
Total liabilities, redeemable and convertible preferred stock and stockholders' equity (deficit)  $ 258,342  $ 77,540
 
JIVE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
         
  Quarter Ended December 31,  Year Ended December 31, 
 2011201020112010
         
Cash flows from operating activities:        
Net loss  $ (12,666)  $ (6,765)  $ (50,804)  $ (27,640)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        
Depreciation and amortization  2,104  602  7,211  1,678
Stock-based compensation  2,898  794  10,422  3,404
Change in fair value of warrant liability  --  189  7,185  222
Change in deferred taxes  --  --  (3,851)  --
Gain on sale of property and equipment  (2)  --  (2)  --
(Increase) decrease, net of acquisitions, in:        
Accounts receivable, net  (7,219)  (2,943)  (11,655)  (11,987)
Prepaid expenses and other assets  (271)  (331)  (844)  (1,765)
Increase (decrease), net of acquisitions, in:         
Accounts payable  (1,588)  (1,519)  1,682  (1,551)
Accrued payroll and related liabilities  1,721  739  2,857  2,260
Other accrued liabilities  (934)  (227)  623  2,520
Deferred revenue  13,522  11,332  27,606  25,578
Other long-term liabilities  --  27  64  52
Net cash provided by (used in) operating activities  (2,435)  1,898  (9,506)  (7,229)
         
Cash flows from investing activities:        
Payments for purchase of property and equipment  (3,977)  (2,036)  (9,814)  (4,782)
Increase in restricted cash   (132)  --  (132)  --
Payments for purchase of intangible assets  --  --  --  (2,150)
Acquisitions, net of cash acquired  --  --  (22,892)  (650)
Net cash used in investing activities  (4,109)  (2,036)  (32,838)  (7,582)
         
Cash flows from financing activities:        
Proceeds from exercise of stock options and restricted stock  1,409  136  3,416  985
Proceeds from initial public offering, net  133,050  --  132,486  --
Proceeds from issuance of preferred stock, net  --  (12)  40,000  29,928
Proceeds from issuance of warrants on preferred stock  --  --  --  42
Proceeds from revolving credit facility, net  (4,048)  --  (3,533)  2,000
Proceeds from term loans  --  2,724  24,203  4,340
Repayments of term loans  (15,823)  (566)  (16,927)  (1,214)
Net cash provided by financing activities  114,588  2,282  179,645  36,081
         
Net increase in cash and cash equivalents  108,044  2,144  137,301  21,270
         
Cash and cash equivalents, beginning of period  72,605  41,204  43,348  22,078
Cash and cash equivalents, end of period  $180,649  $ 43,348  $ 180,649  $ 43,348
 
JIVE SOFTWARE, INC.
RECONCILIATION OF NON-GAAP INFORMATION
(In thousands, except per share data)
(Unaudited)
         
  Quarter Ended December 31,  Year Ended December 31, 
 2011201020112010
         
Gross profit, as reported  $ 12,583  $ 8,487  $ 43,000  $ 26,562
Add back:        
Stock-based compensation  234  53  544  158
Amortization related to acquisitions  664  66  1,738  264
Gross profit, non-GAAP  $ 13,481  $ 8,606  $ 45,282  $ 26,984
         
   Quarter Ended December 31,   Year Ended December 31,  
 2011201020112010
         
Research and development, as reported  $ 7,775  $ 5,401  $ 31,095  $ 18,278
less:        
Stock-based compensation  880  203  2,644  528
Amortization related to acquisitions  --  --  1,031  3
Non-recurring acquisition expense  --  --  333  --
Research and development, non-GAAP  $ 6,895  $ 5,198  $ 27,087  $ 17,747
         
   Quarter Ended December 31,   Year Ended December 31,    
 2011201020112010
         
Sales and marketing, as reported  $ 13,037  $ 8,082  $ 44,794  $ 28,592
less:        
Stock-based compensation  683  278  3,918  822
Sales and marketing, non-GAAP  $ 12,354  $ 7,804  $ 40,876  $ 27,770
         
   Quarter Ended December 31,   Year Ended December 31,    
 2011201020112010
         
General and administrative, as reported  $ 3,675  $ 1,448  $ 12,795  $ 6,746
less:        
Stock-based compensation  1,101  260  3,316  1,896
General and administrative, non-GAAP  $ 2,574  $ 1,188  $ 9,479  $ 4,850
         
   Quarter Ended December 31,   Year Ended December 31,    
 2011201020112010
         
Loss from operations, as reported  $ (11,904)  $ (6,444)  $ (45,684)  $ (27,054)
Add back:        
Stock-based compensation  2,898  794  10,422  3,404
Amortization related to acquisitions  664  66  2,769  267
Non-recurring acquisition expense  --   --   333  -- 
Loss from operations, non-GAAP  $ (8,342)  $ (5,584)  $ (32,160)  $ (23,383)
         
   Quarter Ended December 31,   Year Ended December 31,    
 2011201020112010
         
Loss before provision for (benefit from) income taxes, as reported  $ (12,719)  $ (6,738)  $ (54,567)  $ (27,549)
Add back:        
Stock-based compensation  2,898  794  10,422  3,404
Amortization related to acquisitions  664  66  2,769  267
Non-recurring acquisition expense  --  --  333  --
Change in fair value of warrant liability  --  189  7,185  222
Loss before provision for (benefit from) income taxes, non-GAAP  $ (9,157)  $ (5,689)  $ (33,858)  $ (23,656)
         
   Quarter Ended December 31,   Year Ended December 31,    
 2011201020112010
         
Net loss, as reported  $ (12,666)  $ (6,765)  $ (50,804)  $ (27,640)
Add back:        
Stock-based compensation  2,898  794  10,422  3,404
Amortization related to acquisitions  664  66  2,769  267
Non-recurring acquisition expense  --  --  333  --
Change in fair value of warrant liability  --  189  7,185  222
Tax benefit related to acquisition of OffiSync  --  --  (3,851)  --
Net loss, non-GAAP  $ (9,104)  $ (5,716)  $ (33,946)  $ (23,747)
         
   Quarter Ended December 31,  Year Ended December 31,    
 2011201020112010
         
Basic and diluted net loss per share, as reported  $ (0.39)  $ (0.30)  $ (1.95)  $ (1.25)
Add back:        
Stock-based compensation  0.09  0.03  0.40  0.15
Amortization related to acquisitions  0.02  0.00  0.11  0.01
Non-recurring acquisition expense  0.00  0.00  0.01  0.00
Change in fair value of warrant liability  0.00  0.01  0.28  0.01
Tax benefit related to acquisition of OffiSync  0.00  0.00  (0.15)  0.00
Basic and diluted net loss per share, non-GAAP  $ (0.28)  $ (0.25)  $ (1.30)  $ (1.07)
         
   Quarter Ended December 31,  Year Ended December 31,    
 2011201020112010
         
Total revenues  $ 22,514  $ 14,672  $ 77,285  $ 46,268
Deferred revenue, end of period  77,826  50,195  77,826  50,195
Less: Deferred revenue, beginning of period  (64,304)  (39,035)  (50,195)  (24,617)
Billings  $ 36,036  $ 25,832  $ 104,916  $ 71,846
CONTACT: Investor Contact:

         Katharine O'Brien

         ICR

         (646) 277-1217

         katharine.obrien@icrinc.com

         

         Media Contact:

         Ana Andreescu

         (650) 319-1975

         ana.andreescu@jivesoftware.com