PALO ALTO, Calif., May 8, 2012 (GLOBE NEWSWIRE) -- Jive Software, Inc. (Nasdaq:JIVE), today announced financial results for its first quarter ended March 31, 2012.
"The first quarter was a strong start to 2012, highlighted by revenue and profitability that outperformed our guidance," stated Tony Zingale, Chairman & CEO of Jive. Zingale added, "The social business market is nearing its tipping point, and we are poised to take full advantage of this shift. With the recent announcement of Jive's next generation social business platform and Try Jive, the 30-day free trial of that platform, we are extending our multi-year technology lead and continuing to establish Jive as the clear choice for social business solutions among the world's most successful organizations." First Quarter 2012 Financial Highlights
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." First Quarter and Recent Business Highlights Jive has recently accomplished the following business highlights: Financial Outlook
As of May 8, 2012, Jive initiates guidance for its second quarter 2012, and issues improved guidance for the 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 GAAP loss from operations and GAAP 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 GAAP loss from operations and GAAP 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 first quarter 2012, in addition to discussing the Company's outlook for the second quarter 2012 and updated guidance for the full year 2012. To access this call, dial (877) 723-9518 (domestic) or (719) 325-4879 (international) with conference ID #5696449. 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 May 22, 2012, by dialing (877) 870-5176 (domestic) or (858) 384-5517 (international). The replay passcode is 5696449. 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 gross profit, loss from operations, 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 second fiscal quarter of 2012 and the full year of 2012, the future growth of the social business software market, 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 in the matters covered by such forward-looking statements involves 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.
Non-GAAP net loss for the first quarter was $5.2 million, compared to a net loss of $8.3 million for the same period last year. Non-GAAP net loss per share for the first quarter was $0.09, based on 61.4 million weighted-average shares outstanding, compared to net a loss per share of $0.36, based on 23.0 million weighted-average shares outstanding for the same period last year.
The company generated $2.1 million in cash from operations and invested $3.4 million in capital expenditures, leading to free cash flow of ($1.3) million for the first quarter. Free cash flow was ($2.9) million for the first quarter of 2011. Free cash flow is defined as cash flows provided by operating activities minus cash flows used to purchase capital expenditures.
JIVE SOFTWARE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited)
Quarter Ended March 31,
2012 2011
Revenues:
Product
$ 21,671
$ 13,570
Professional services
3,647
2,497
Total revenues
25,318
16,067
Cost of revenues:
Product
6,822
3,929
Professional services
3,789
3,131
Total cost of revenues
10,611
7,060
Gross profit
14,707
9,007
Operating expenses:
Research and development
8,355
8,667
Sales and marketing
11,356
8,838
General and administrative
3,802
1,790
Total operating expenses
23,513
19,295
Loss from operations
(8,806)
(10,288)
Other income (expense), net:
Interest income
14
15
Interest expense
(88)
(98)
Change in fair value of warrant liability
--
(4,051)
Other, net
(45)
(37)
Total other income (expense), net
(119)
(4,171)
Loss before provision for income taxes
(8,925)
(14,459)
Provision for income taxes
24
30
Net loss
$ (8,949)
$ (14,489)
Basic and diluted net loss per share
$ (0.15)
$ (0.63)
Shares used in basic and diluted per share calculations
61,446
23,002
JIVE SOFTWARE, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
March 31,
2012December 31,
2011Assets
Current assets:
Cash and cash equivalents
$ 143,749
$ 180,649
Short-term marketable securities
22,112
--
Accounts receivable, net
28,038
31,999
Prepaid expenses and other current assets
4,113
4,503
Total current assets
198,012
217,151
Marketable securities, noncurrent
12,239
--
Property and equipment, net
14,025
12,639
Goodwill
17,265
17,265
Intangible assets, net
10,252
11,141
Other assets
142
146
Total assets
$ 251,935
$ 258,342
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$ 5,399
$ 4,566
Accrued payroll and related liabilities
4,304
6,629
Other accrued liabilities
3,633
5,124
Deferred revenue, current
66,481
62,329
Term debt, current
2,946
2,946
Total current liabilities
82,763
81,594
Deferred revenue, less current portion
14,229
15,497
Term debt, less current portion
9,442
10,192
Other long-term liabilities
341
340
Total liabilities
106,775
107,623
Commitments and contingencies
Stockholders' equity:
Common stock
7
7
Less treasury stock at cost
(3,352)
(3,352)
Additional paid-in capital
262,176
258,779
Accumulated deficit
(113,674)
(104,725)
Accumulated other comprehensive income
3
10
Total stockholders' equity
145,160
150,719
Total liabilities and stockholders' equity
$ 251,935
$ 258,342
JIVE SOFTWARE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
Quarter Ended March 31,
2012 2011
Cash flows from operating activities:
Net loss
$ (8,949)
$ (14,489)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization
2,218
1,847
Stock-based compensation
3,085
1,056
Change in fair value of warrant liability
--
4,051
(Increase) decrease, net of acquisitions, in:
Accounts receivable, net
3,961
5,521
Prepaid expenses and other assets
388
(266)
Increase (decrease), net of acquisitions, in:
Accounts payable
1,634
2,115
Accrued payroll and related liabilities
(2,325)
(887)
Other accrued liabilities
(845)
(969)
Deferred revenue
2,884
2,605
Other long-term liabilities
1
27 Net cash provided by operating activities
2,052
611
Cash flows from investing activities:
Payments for purchase of property and equipment
(3,401)
(3,486)
Purchases of marketable securities
(34,351)
--
Acquisitions, net of cash acquired
--
(500) Net cash used in investing activities
(37,752)
(3,986)
Cash flows from financing activities:
Proceeds from exercise of stock options
312
214
Payments of initial public offering expenses
(766)
--
Proceeds from revolving credit facility, net
--
515
Proceeds from term loans
--
1,655
Repayments of term loans
(750)
(354) Net cash provided by (used in) financing activities
(1,204)
2,030
Net decrease in cash and cash equivalents
(36,904)
(1,345) Effect of exchange rate changes
4
-- Cash and cash equivalents, beginning of period
180,649
43,348 Cash and cash equivalents, end of period
$ 143,749
$ 42,003
JIVE SOFTWARE, INC. RECONCILIATION OF NON-GAAP INFORMATION (In thousands, except per share data) (Unaudited)
Quarter Ended March 31,
2012 2011
Gross profit, as reported
$ 14,707
$ 9,007
Add back:
Stock-based compensation
258
69
Amortization related to acquisitions
625
66
Gross profit, non-GAAP
$ 15,590
$ 9,142
Gross margin, non-GAAP
62%
57%
Quarter Ended March 31,
2012 2011
Research and development, as reported
$ 8,355
$ 8,667
Less:
Stock-based compensation
947
353
Amortization related to acquisitions
--
1,031
Research and development, non-GAAP
$ 7,408
$ 7,283
As percentage of total revenues, non-GAAP
29%
45%
Quarter Ended March 31,
2012 2011
Sales and marketing, as reported
$ 11,356
$ 8,838
Less:
Stock-based compensation
526
309
Sales and marketing, non-GAAP
$ 10,830
$ 8,529
As percentage of total revenues, non-GAAP
43%
53%
Quarter Ended March 31,
2012 2011
General and administrative, as reported
$ 3,802
$ 1,790
Less:
Stock-based compensation
1,354
325
General and administrative, non-GAAP
$ 2,448
$ 1,465
As percentage of total revenues, non-GAAP
10%
9%
Quarter Ended March 31,
2012 2011
Loss from operations, as reported
$ (8,806)
$ (10,288)
Add back:
Stock-based compensation
3,085
1,056
Amortization related to acquisitions
625
1,097
Loss from operations, non-GAAP
$ (5,096)
$ (8,135)
Quarter Ended March 31,
2012 2011
Loss before provision for income taxes, as reported
$ (8,925)
$ (14,459)
Add back:
Stock-based compensation
3,085
1,056
Amortization related to acquisitions
625
1,097
Change in fair value of warrant liability
--
4,051
Loss before provision for income taxes, non-GAAP
$ (5,215)
$ (8,255)
Quarter Ended March 31,
2012 2011
Net loss, as reported
$ (8,949)
$ (14,489)
Add back:
Stock-based compensation
3,085
1,056
Amortization related to acquisitions
625
1,097
Change in fair value of warrant liability
--
4,051
Net loss, non-GAAP
$ (5,239)
$ (8,285)
Quarter Ended March 31,
2012 2011
Basic and diluted net loss per share, as reported
$ (0.15)
$ (0.63)
Add back:
Stock-based compensation
0.05
0.05
Amortization related to acquisitions
0.01
0.05
Change in fair value of warrant liability
0.00
0.18
Basic and diluted net loss per share, non-GAAP
$ (0.09)
$ (0.36)
Quarter Ended March 31,
2012 2011
Total revenues
$ 25,318
$ 16,067
Deferred revenue, end of period
80,710
52,628
Less: Deferred revenue, beginning of period
(77,826)
(50,195)
Billings
$ 28,202
$ 18,500 CONTACT: Investor Contact:
Brian Denyeau
ICR
646-277-1251
brian.denyeau@icrinc.com
Media Contact:
Ana Andreescu
(650) 319-1975
ana.andreescu@jivesoftware.com
