PALO ALTO, Calif., Aug. 7, 2012 (GLOBE NEWSWIRE) -- Jive Software, Inc. (Nasdaq:JIVE), today announced financial results for its second quarter ended June 30, 2012.
"Our momentum continued in the second quarter, contributing to strong growth in both revenue and billings," stated Tony Zingale, Chairman & CEO of Jive. Zingale added, "Customer response related to our next generation social business platform has been extremely positive, and the launch of TryJive has driven an increase in customer adoption, brand awareness and our pipeline of opportunities." Second Quarter 2012 Financial Highlights
Non-GAAP net loss for the second quarter was $6.8 million, compared to a net loss of $8.6 million for the same period last year. Non-GAAP net loss per share for the second quarter was $0.11, based on 61.9 million weighted-average shares outstanding, compared to a net loss per share of $0.37, based on 23.5 million weighted-average shares outstanding for the same period last year.
The company generated $1.1 million in cash from operations and invested $2.5 million in capital expenditures, leading to free cash flow of ($1.4) million for the second quarter. Free cash flow was ($1.4) million for the second quarter of 2011. Free cash flow is defined as cash flows provided by operating activities minus cash flows used to purchase capital expenditures.
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." Second Quarter and Recent Business Highlights Jive has recently accomplished the following business highlights: Financial Outlook
As of August 7, 2012, Jive initiates guidance for its third quarter 2012, and is reiterating 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 second quarter 2012, in addition to discussing the Company's outlook for the third quarter 2012 and guidance for the full year 2012. To access this call, dial (888) 312-3047 (domestic) or (719) 457-2603 (international) with conference ID #7554536. 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 August 21, 2012, by dialing (877) 870-5176 (domestic) or (858) 384-5517 (international). The replay passcode is 7554536. 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 third 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 and renewal billings 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.
JIVE SOFTWARE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data)
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
Revenues:
Product
$ 23,904
$ 15,029
$ 45,575
$ 28,599
Professional services
3,046
2,856
6,693
5,353
Total revenues
26,950
17,885
52,268
33,952
Cost of revenues:
Product
7,135
5,132
13,957
9,061
Professional services
3,792
2,920
7,581
6,051
Total cost of revenues
10,927
8,052
21,538
15,112
Gross profit
16,023
9,833
30,730
18,840
Operating expenses:
Research and development
9,127
7,116
17,482
15,783
Sales and marketing
14,581
10,622
25,937
19,460
General and administrative
3,751
3,429
7,553
5,219
Total operating expenses
27,459
21,167
50,972
40,462
Loss from operations
(11,436)
(11,334)
(20,242)
(21,622)
Other income (expense), net:
Interest income
46
12
60
27
Interest expense
(144)
(257)
(232)
(355)
Change in fair value of warrant liability
--
(8,284)
--
(12,335)
Other, net
(1)
(3)
(46)
(40)
Total other income (expense), net
(99)
(8,532)
(218)
(12,703)
Loss before provision for (benefit from) income taxes
(11,535)
(19,866)
(20,460)
(34,325)
Provision for (benefit from) income taxes
90
(3,797)
114
(3,767)
Net loss
$ (11,625)
$ (16,069)
$ (20,574)
$ (30,558)
Basic and diluted net loss per share
$ (0.19)
$ (0.68)
$ (0.33)
$ (1.32)
Shares used in basic and diluted per share calculations
61,924
23,499
61,685
23,170
JIVE SOFTWARE, INC. CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited)
June 30,
2012December 31,
2011
Assets
Current Assets:
Cash and cash equivalents
$ 110,686
$ 180,649
Short-term marketable securities
46,562
--
Accounts receivable, net of allowances
29,019
31,999
Prepaid expenses and other current assets
4,872
4,503
Total current assets
191,139
217,151
Marketable securities, noncurrent
19,286
--
Property and equipment, net of accumulated depreciation
14,405
12,639
Goodwill
17,265
17,265
Intangible assets, net of accumulated amortization
9,382
11,141
Other assets
271
146
Total assets
$ 251,748
$ 258,342
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$ 3,369
$ 4,566
Accrued payroll and related liabilities
5,843
6,629
Other accrued liabilities
4,239
5,124
Deferred revenue, current
71,462
62,329
Term debt, current
2,400
2,946
Total current liabilities
87,313
81,594
Deferred revenue, less current portion
16,020
15,497
Term debt, less current portion
9,600
10,192
Other long-term liabilities
544
340
Total liabilities
113,477
107,623
Commitments and contingencies
Stockholders' Equity:
Common stock
7
7
Less treasury stock at cost
(3,352)
(3,352)
Additional paid-in capital
266,897
258,779
Accumulated deficit
(125,299)
(104,725)
Accumulated other comprehensive income
18
10
Total stockholders' equity
138,271
150,719
Total liabilities and stockholders' equity
$ 251,748
$ 258,342
JIVE SOFTWARE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
Three Months Ended
June 30, Six Months Ended
June 30,
2012 2011 2012 2011
Cash flows from operating activities:
Net loss
$ (11,625)
$ (16,069)
$ (20,574)
$ (30,558)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization
2,385
1,172
4,603
3,019
Stock-based compensation
4,164
2,339
7,249
3,395
Loss from change in fair value of warrant liability
--
8,284
--
12,335
Change in deferred taxes
--
(3,851)
--
(3,851)
(Increase) decrease, net of acquisitions, in:
Accounts receivable, net
(981)
(2,170)
2,980
3,351
Prepaid expenses and other assets
(764)
448
(376)
182
Increase (decrease), net of acquisitions, in:
Accounts payable
(1,468)
(160)
166
1,955
Accrued payroll and related liabilities
1,539
1,387
(786)
500
Other accrued liabilities
721
1,942
(124)
973
Deferred revenue
6,772
5,819
9,656
8,424
Other long-term liabilities
401
20
402
47 Net cash provided by (used in) operating activities
1,144
(839)
3,196
(228)
Cash flows from investing activities:
Payments for purchase of property and equipment
(2,512)
(522)
(5,913)
(4,008)
Purchases of marketable securities
(31,497)
--
(65,848)
--
Acquisitions, net of cash acquired
--
(22,392)
--
(22,892) Net cash used in investing activities
(34,009)
(22,914)
(71,761)
(26,900)
Cash flows from financing activities:
Proceeds from exercise of stock options, including tax withholding
557
3,838
869
4,052
Payments of initial public offering expenses
(248)
--
(1,014)
--
Proceeds from revolving credit facility, net
--
--
--
515
Proceeds from term loans
--
22,548
--
24,203
Repayments of term loans
(500)
--
(1,250)
(354) Net cash provided by (used in) financing activities
(191)
26,386
(1,395)
28,416
Net increase (decrease) in cash and cash equivalents
(33,056)
2,633
(69,960)
1,288 Effect of exchange rate changes
(7)
--
(3)
-- Cash and cash equivalents, beginning of period
143,749
42,003
180,649
43,348 Cash and cash equivalents, end of period
$110,686
$ 44,636
$110,686
$ 44,636
JIVE SOFTWARE, INC. RECONCILIATION OF NON-GAAP INFORMATION (In thousands, except per share data) (Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
Gross profit, as reported
$ 16,023
$ 9,833
$ 30,730
$ 18,840
Add back:
Stock-based compensation
528
87
786
156
Amortization related to acquisitions
620
374
1,245
440
Gross profit, non-GAAP
$ 17,171
$ 10,294
$ 32,761
$ 19,436
Gross margin, non-GAAP
64%
58%
63%
57%
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
Research and development, as reported
$ 9,127
$ 7,116
$ 17,482
$ 15,783
less:
Stock-based compensation
1,533
605
2,480
958
Amortization related to acquisitions
--
--
--
1,031
Non-recurring acquisition expense
--
333
--
333
Research and development, non-GAAP
$ 7,594
$ 6,178
$ 15,002
$ 13,461
As percentage of total revenues, non-GAAP
28%
35%
29%
40%
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
Sales and marketing, as reported
14,581
10,622
25,937
19,460
less:
Stock-based compensation
928
937
1,454
1,246
Sales and marketing, non-GAAP
$ 13,653
$ 9,685
$ 24,483
$ 18,214
As percentage of total revenues, non-GAAP
51%
54%
47%
54%
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
General and administrative, as reported
$ 3,751
$ 3,429
$ 7,553
$ 5,219
less:
Stock-based compensation
1,175
710
2,529
1,035
General and administrative, non-GAAP
$ 2,576
$ 2,719
$ 5,024
$ 4,184
As percentage of total revenues, non-GAAP
10%
15%
10%
12%
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
Loss from operations, as reported
$ (11,436)
$ (11,334)
$ (20,242)
$ (21,622)
Add back:
Stock-based compensation
4,164
2,339
7,249
3,395
Amortization related to acquisitions
620
374
1,245
1,471
Non-recurring acquisition expense
--
333
--
333
Loss from operations, non-GAAP
$ (6,652)
$ (8,288)
$ (11,748)
$ (16,423)
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
Loss before provision for (benefit from) income taxes, as reported
$ (11,535)
$ (19,866)
$ (20,460)
$ (34,325)
Add back:
Stock-based compensation
4,164
2,339
7,249
3,395
Amortization related to acquisitions
620
374
1,245
1,471
Non-recurring acquisition expense
--
333
--
333
Change in fair value of warrant liability
--
8,284
--
12,335
Loss before provision for (benefit from) income taxes, non-GAAP
$ (6,751)
$ (8,536)
$ (11,966)
$ (16,791)
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
Net loss, as reported
$ (11,625)
$ (16,069)
$ (20,574)
$ (30,558)
Add back:
Stock-based compensation
4,164
2,339
7,249
3,395
Amortization related to acquisitions
620
374
1,245
1,471
Non-recurring acquisition expense
--
333
--
333
Change in fair value of warrant liability
--
8,284
--
12,335
Tax benefit related to acquisition of OffiSync
--
(3,851)
--
(3,851)
Net loss, non-GAAP
$ (6,841)
$ (8,590)
$ (12,080)
$ (16,875)
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
Basic and diluted net loss per share, as reported
$ (0.19)
$ (0.68)
$ (0.33)
$ (1.32)
Add back:
Stock-based compensation
0.07
0.10
0.12
0.15
Amortization related to acquisitions
0.01
0.02
0.02
0.06
Non-recurring acquisition expense
--
0.01
--
0.01
Change in fair value of warrant liability
--
0.35
--
0.53
Tax benefit related to acquisition of OffiSync
--
(0.16)
--
(0.17)
Basic and diluted net loss per share, non-GAAP
$ (0.11)
$ (0.37)
$ (0.20)
$ (0.73)
Three Months Ended June 30, Six Months Ended June 30,
2012 2011 2012 2011
Total revenues
$ 26,950
$ 17,885
$ 52,268
$ 33,952
Deferred revenue, end of period
87,482
58,644
87,482
58,644
Less: Deferred revenue, beginning of period
(80,710)
(52,628)
(77,826)
(50,195)
Billings
$ 33,722
$ 23,901
$ 61,924
$ 42,401 CONTACT: Investor Contact:
Brian Denyeau
ICR
646-277-1251
brian.denyeau@icrinc.com
Media Contact:
Kyle Arteaga
(415) 218-5569
kyle.arteaga@jivesoftware.com
