"Growing market demand on a global basis contributed to a strong finish to a record year for Jive. During the fourth quarter, we experienced an acceleration in million dollar customer commitments, including the largest annual contract value deal in the history of Jive, and continued to add blue chip customers as part of our land and expand strategy," stated
"After pioneering the social business market, Jive created a clear market leadership position based on delivering the industry's most robust and innovative platform," Zingale added. "We believe that 2013 will be the year that social business goes mainstream as customer focus continues to shift from features and functions to business value. Through the work just completed by a top three global business consultancy firm, companies using Jive reported a 15% increase in workforce productivity and a 4% increase in revenue. Our competitive advantage has become even stronger and we believe Jive is well positioned to gain significant market share as social business moves to mass adoption."
Fourth Quarter 2012 Financial Highlights
Full Year 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."
Fourth Quarter and Recent Business Highlights
Financial Outlook: As of
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
About
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 first fiscal quarter of 2013 and the full year of 2013, the future growth of the social business market, the shift in customer focus, 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 platforms by enterprises; uncertainty regarding the market for social business platforms; 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 our own controls and 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
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| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (In thousands, except per share data) | ||||
| (Unaudited) | ||||
|
For the Three Months Ended December 31, |
For the Twelve Months Ended December 31, |
|||
| 2012 | 2011 | 2012 | 2011 | |
| Revenues: | ||||
| Product | $ 28,604 | $ 19,173 | $ 100,040 | $ 65,265 |
| Professional services | 3,921 | 3,341 | 13,626 | 12,020 |
| Total revenues | 32,525 | 22,514 | 113,666 | 77,285 |
| Cost of revenues: | ||||
| Product | 8,495 | 6,481 | 30,240 | 21,689 |
| Professional services | 3,570 | 3,450 | 14,625 | 12,596 |
| Total cost of revenues | 12,065 | 9,931 | 44,865 | 34,285 |
| Gross profit | 20,460 | 12,583 | 68,801 | 43,000 |
| Operating expenses: | ||||
| Research and development | 11,863 | 7,775 | 39,190 | 31,095 |
| Sales and marketing | 19,498 | 13,037 | 60,235 | 44,794 |
| General and administrative | 4,764 | 3,675 | 16,444 | 12,795 |
| Total operating expenses | 36,125 | 24,487 | 115,869 | 88,684 |
| Loss from operations | (15,665) | (11,904) | (47,068) | (45,684) |
| Other income (expense), net: | ||||
| Interest income | 64 | 4 | 180 | 40 |
| Interest expense | (96) | (812) | (421) | (1,735) |
| Change in fair value of warrant liability | -- | -- | -- | (7,185) |
| Other, net | (94) | (7) | (98) | (3) |
| Total other income (expense), net | (126) | (815) | (339) | (8,883) |
| Loss before provision (benefit) for income taxes | (15,791) | (12,719) | (47,407) | (54,567) |
| Provision (benefit) for income taxes | (218) | (53) | 28 | (3,763) |
| Net loss | $ (15,573) | $ (12,666) | $ (47,435) | $ (50,804) |
| Basic and diluted net loss per share | $ (0.24) | $ (0.39) | $ (0.76) | $ (1.95) |
| Shares used in basic and diluted per share calculations | 64,165 | 32,490 | 62,614 | 26,071 |
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||
| Consolidated Balance Sheets | ||
| (In thousands) | ||
| (Unaudited) | ||
| December 31, | December 31, | |
| 2012 | 2011 | |
| Assets | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 48,955 | $ 180,649 |
| Short-term marketable securities | 96,492 | -- |
| Accounts receivable, net of allowances | 54,200 | 31,999 |
| Prepaid expenses and other current assets | 7,864 | 4,503 |
| Total current assets | 207,511 | 217,151 |
| Marketable securities, noncurrent | 22,607 | -- |
| Property and equipment, net of accumulated depreciation | 16,803 | 12,639 |
| Goodwill | 23,435 | 17,265 |
| Intangible assets, net of accumulated amortization | 11,710 | 11,141 |
| Other assets | 214 | 146 |
| Total assets | $ 282,280 | $ 258,342 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 9,557 | $ 4,566 |
| Accrued payroll and related liabilities | 7,357 | 6,629 |
| Other accrued liabilities | 7,123 | 5,124 |
| Deferred revenue, current | 87,698 | 62,329 |
| Term debt, current | 2,400 | 2,946 |
| Total current liabilities | 114,135 | 81,594 |
| Deferred revenue, less current portion | 29,349 | 15,497 |
| Term debt, less current portion | 8,400 | 10,192 |
| Other long-term liabilities | 538 | 340 |
| Total liabilities | 152,422 | 107,623 |
| Commitments and contingencies | ||
| Stockholders' Equity: | ||
| Common stock | 8 | 7 |
| Less treasury stock at cost | (3,352) | (3,352) |
| Additional paid-in capital | 285,331 | 258,779 |
| Accumulated deficit | (152,160) | (104,725) |
| Accumulated other comprehensive income | 31 | 10 |
| Total stockholders' equity | 129,858 | 150,719 |
| Total liabilities and stockholders' equity | $ 282,280 | $ 258,342 |
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| Consolidated Statements of Cash Flows | ||||
| (In thousands) | ||||
| (Unaudited) | ||||
|
Three Months Ended December 31, |
Twelve Months Ended December 31, |
|||
| 2012 | 2011 | 2012 | 2011 | |
| Cash flows from operating activities: | ||||
| Net loss | $ (15,573) | $ (12,666) | $ (47,435) | $ (50,804) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||
| Depreciation and amortization | 2,880 | 2,104 | 10,050 | 7,211 |
| Stock-based compensation | 5,932 | 2,898 | 18,209 | 10,422 |
| Loss from change in fair value of warrant liability | -- | -- | -- | 7,185 |
| Change in deferred taxes | (281) | -- | (281) | (3,851) |
| Gain on sale of property and equipment | 21 | (2) | 21 | (2) |
| (Increase) decrease, net of acquisitions, in: | ||||
| Accounts receivable, net | (18,325) | (7,219) | (22,201) | (11,655) |
| Prepaid expenses and other assets | (1,051) | (271) | (3,343) | (844) |
| Increase (decrease), net of acquisitions, in: | ||||
| Accounts payable | 1,407 | (1,588) | 5,529 | 1,682 |
| Accrued payroll and related liabilities | 1,704 | 1,721 | 728 | 2,857 |
| Other accrued liabilities | 2,589 | (934) | 2,645 | 623 |
| Deferred revenue | 19,493 | 13,522 | 39,221 | 27,606 |
| Other long-term liabilities | (405) | -- | -- | 64 |
| Net cash provided by (used in) operating activities | (1,609) | (2,435) | 3,143 | (9,506) |
| Cash flows from investing activities: | ||||
| Payments for purchase of property and equipment | (1,259) | (3,977) | (10,648) | (9,814) |
| Increase in restricted cash | -- | (132) | -- | (132) |
| Purchases of marketable securities | (12,840) | -- | (154,475) | -- |
| Sales of marketable securities | -- | -- | 11,147 | -- |
| Maturities of marketable securities | 13,140 | -- | 24,229 | -- |
| Acquisitions, net of cash acquired | (7,613) | -- | (7,613) | (22,892) |
| Net cash used in investing activities | (8,572) | (4,109) | (137,360) | (32,838) |
| Cash flows from financing activities: | ||||
| Proceeds from exercise of stock options, including tax withholding | 2,246 | 1,409 | 5,970 | 3,416 |
| Proceeds from issuance of preferred stock, net | -- | -- | -- | 40,000 |
| Proceeds from initial public offering, net | -- | 133,050 | (1,014) | 132,486 |
| Proceeds from revolving credit facility, net | -- | (4,048) | -- | (3,533) |
| Proceeds from term loans | -- | -- | -- | 24,203 |
| Repayments of term loans | (600) | (15,823) | (2,450) | (16,927) |
| Net cash provided by financing activities | 1,646 | 114,588 | 2,506 | 179,645 |
| Net increase (decrease) in cash and cash equivalents | (8,535) | 108,044 | (131,711) | 137,301 |
| Effect of exchange rate changes | 18 | -- | 17 | -- |
| Cash and cash equivalents, beginning of period | 57,472 | 72,605 | 180,649 | 43,348 |
| Cash and cash equivalents, end of period | $ 48,955 | $ 180,649 | $ 48,955 | $ 180,649 |
|
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| RECONCILIATION OF NON-GAAP INFORMATION | ||||
| (In thousands, except per share data) | ||||
| (Unaudited) | ||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Gross profit, as reported | $ 20,460 | $ 12,583 | $ 68,801 | $ 43,000 |
| Add back: | ||||
| Stock-based compensation | 622 | 234 | 2,035 | 544 |
| Amortization related to acquisitions | 662 | 664 | 2,521 | 1,738 |
| Gross profit, non-GAAP | $ 21,744 | $ 13,481 | $ 73,357 | $ 45,282 |
| Gross margin, non-GAAP | 67% | 60% | 65% | 59% |
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Research and development, as reported | $ 11,863 | $ 7,775 | $ 39,190 | $ 31,095 |
| less: | ||||
| Stock-based compensation | 2,065 | 880 | 6,250 | 2,644 |
| Amortization related to acquisitions | 17 | -- | 17 | 1,031 |
| Non-recurring acquisition expense | 100 | -- | 100 | 333 |
| Research and development, non-GAAP | $ 9,681 | $ 6,895 | $ 32,823 | $ 27,087 |
| As percentage of total revenues, non-GAAP | 30% | 31% | 29% | 35% |
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Sales and marketing, as reported | $ 19,498 | $ 13,037 | $ 60,235 | $ 44,794 |
| less: | ||||
| Stock-based compensation | 2,080 | 683 | 4,970 | 3,918 |
| Amortization related to acquisitions | 11 | -- | 11 | -- |
| Sales and marketing, non-GAAP | $ 17,407 | $ 12,354 | $ 55,254 | $ 40,876 |
| As percentage of total revenues, non-GAAP | 54% | 55% | 49% | 53% |
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||
| 2012 | 2011 | 2012 | 2011 | |
| General and administrative, as reported | $ 4,764 | $ 3,675 | $ 16,444 | $ 12,795 |
| less: | ||||
| Stock-based compensation | 1,165 | 1,101 | 4,954 | 3,316 |
| General and administrative, non-GAAP | $ 3,599 | $ 2,574 | $ 11,490 | $ 9,479 |
| As percentage of total revenues, non-GAAP | 11% | 11% | 10% | 12% |
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Loss from operations, as reported | $ (15,665) | $ (11,904) | $ (47,068) | $ (45,684) |
| Add back: | ||||
| Stock-based compensation | 5,932 | 2,898 | 18,209 | 10,422 |
| Amortization related to acquisitions | 690 | 664 | 2,549 | 2,769 |
| Non-recurring acquisition expense | 100 | -- | 100 | 333 |
| Loss from operations, non-GAAP | $ (8,943) | $ (8,342) | $ (26,210) | $ (32,160) |
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Loss before provision for (benefit from) income taxes, as reported | $ (15,791) | $ (12,719) | $ (47,407) | $ (54,567) |
| Add back: | ||||
| Stock-based compensation | 5,932 | 2,898 | 18,209 | 10,422 |
| Amortization related to acquisitions | 690 | 664 | 2,549 | 2,769 |
| Non-recurring acquisition expense | 100 | -- | 100 | 333 |
| Change in fair value of warrant liability | -- | -- | -- | 7,185 |
| Loss before provision for (benefit from) income taxes, non-GAAP | $ (9,069) | $ (9,157) | $ (26,549) | $ (33,858) |
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Net loss, as reported | $ (15,573) | $ (12,666) | $ (47,435) | $ (50,804) |
| Add back: | ||||
| Stock-based compensation | 5,932 | 2,898 | 18,209 | 10,422 |
| Amortization related to acquisitions | 690 | 664 | 2,549 | 2,769 |
| Non-recurring acquisition expense | 100 | -- | 100 | 333 |
| Change in fair value of warrant liability | -- | -- | -- | 7,185 |
| Tax benefit related to acquisitions | (281) | -- | (281) | (3,851) |
| Net loss, non-GAAP | $ (9,132) | $ (9,104) | $ (26,858) | $ (33,946) |
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Basic and diluted net loss per share, as reported | $ (0.24) | $ (0.39) | $ (0.76) | $ (1.95) |
| Add back: | ||||
| Stock-based compensation | 0.09 | 0.09 | 0.29 | 0.40 |
| Amortization related to acquisitions | 0.01 | 0.02 | 0.04 | 0.11 |
| Non-recurring acquisition expense | 0.00 | -- | 0.00 | 0.01 |
| Change in fair value of warrant liability | -- | -- | -- | 0.28 |
| Tax benefit related to acquisitions | (0.00) | -- | (0.00) | (0.15) |
| Basic and diluted net loss per share, non-GAAP | $ (0.14) | $ (0.28) | $ (0.43) | $ (1.30) |
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||
| 2012 | 2011 | 2012 | 2011 | |
| Total revenues | $ 32,525 | $ 22,514 | $ 113,666 | $ 77,285 |
| Deferred revenue, end of period | 117,047 | 77,826 | 117,047 | 77,826 |
| Less: Deferred revenue, beginning of period | (97,554) | (64,304) | (77,826) | (50,195) |
| Billings | $ 52,018 | $ 36,036 | $ 152,887 | $ 104,916 |
CONTACT: Investor Contact:
Brian Denyeau
ICR
(646) 277-1251
brian.denyeau@icrinc.com
Media Contact:
Amanda Pires
(650) 465-1215
amanda.pires@jivesoftware.com
Source:
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