3Q total revenue of
3Q short-term billings of
"Jive generated solid third quarter results that exceeded the high end of our guidance range from both a revenue and profitability perspective," said
Finally, Zingale added, "I'd like to congratulate
Third Quarter 2014 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."
Third Quarter 2014 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 net loss per share to GAAP loss from operations and GAAP net 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 net loss per share is not available without unreasonable effort.
Quarterly Conference Call
Jive will host a conference call today at
About
Jive (Nasdaq:JIVE) is the leading provider of modern communication and collaboration solutions for business. Recognized as a leader by the industry's top analyst firms in multiple categories, Jive enables employees, partners and customers to work better together. More information can be found at www.jivesoftware.com or the Jive News Blog.
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 and amortization of acquisition related intangible assets. Total billings is defined by the Company as revenue plus the change in total deferred revenue. Short-term billings is defined as revenue plus the change in short-term 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 fourth fiscal quarter of 2014 and the full year of 2014, the future growth of the social business market, expectations regarding our executive transition, and our belief that we are well positioned to build upon our momentum in 2014. 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 benefits of our relationship with Cisco; 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 amounts) | ||||
| (Unaudited) | ||||
| For the Three Months Ended | For the Nine Months Ended | |||
| September 30, | September 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Revenues: | ||||
| Product | $ 42,162 | $ 33,456 | $ 118,576 | $ 95,678 |
| Professional services | 4,438 | 3,903 | 12,428 | 10,775 |
| Total revenues | 46,600 | 37,359 | 131,004 | 106,453 |
| Cost of revenues: | ||||
| Product | 11,175 | 9,034 | 31,931 | 27,786 |
| Professional services | 6,060 | 4,851 | 17,399 | 12,914 |
| Total cost of revenues | 17,235 | 13,885 | 49,330 | 40,700 |
| Gross profit | 29,365 | 23,474 | 81,674 | 65,753 |
| Operating expenses: | ||||
| Research and development | 13,608 | 14,957 | 39,496 | 41,383 |
| Sales and marketing | 21,696 | 20,804 | 66,855 | 60,148 |
| General and administrative | 6,161 | 6,202 | 18,994 | 18,149 |
| Total operating expenses | 41,465 | 41,963 | 125,345 | 119,680 |
| Loss from operations | (12,100) | (18,489) | (43,671) | (53,927) |
| Other income (expense), net: | ||||
| Interest income | 50 | 53 | 151 | 184 |
| Interest expense | (55) | (54) | (202) | (234) |
| Other, net | 160 | (186) | 9 | (295) |
| Total other income (expense), net | 155 | (187) | (42) | (345) |
| Loss before provision for (benefit from) income taxes | (11,945) | (18,676) | (43,713) | (54,272) |
| Provision for (benefit from) income taxes | 164 | 29 | 350 | (1,186) |
| Net loss | $ (12,109) | $ (18,705) | $ (44,063) | $ (53,086) |
| Basic and diluted net loss per share | $ (0.17) | $ (0.27) | $ (0.63) | $ (0.79) |
| Shares used in basic and diluted per share calculations | 71,026 | 68,167 | 70,202 | 66,913 |
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|
||
| Consolidated Balance Sheets | ||
| (In thousands, except share and per share data) | ||
| (Unaudited) | ||
| September 30, | December 31, | |
| 2014 | 2013 | |
| Assets | ||
| Current Assets: | ||
| Cash and cash equivalents | $ 27,184 | $ 38,415 |
| Short-term marketable securities | 70,992 | 69,809 |
| Accounts receivable, net of allowances | 50,009 | 58,829 |
| Prepaid expenses and other current assets | 15,210 | 9,425 |
| Total current assets | 163,395 | 176,478 |
| Marketable securities, noncurrent | 30,966 | 33,443 |
| Property and equipment, net of accumulated depreciation | 13,696 | 21,379 |
| Goodwill | 29,753 | 29,753 |
| Intangible assets, net of accumulated amortization | 10,659 | 14,310 |
| Other assets | 9,504 | 572 |
| Total assets | $ 257,973 | $ 275,935 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $ 6,768 | $ 6,412 |
| Accrued payroll and related liabilities | 6,592 | 7,469 |
| Other accrued liabilities | 9,266 | 8,478 |
| Deferred revenue, current | 114,777 | 112,432 |
| Term debt, current | 2,400 | 2,400 |
| Total current liabilities | 139,803 | 137,191 |
| Deferred revenue, less current portion | 32,390 | 34,905 |
| Term debt, less current portion | 4,200 | 6,000 |
| Other long-term liabilities | 1,162 | 1,605 |
| Total liabilities | 177,555 | 179,701 |
| Commitments and contingencies | ||
| Stockholders' Equity: | ||
| Common stock | 7 | 7 |
| Less treasury stock at cost | (3,352) | (3,352) |
| Additional paid-in capital | 355,190 | 326,834 |
| Accumulated deficit | (271,594) | (227,531) |
| Accumulated other comprehensive income | 167 | 276 |
| Total stockholders' equity | 80,418 | 96,234 |
| Total liabilities and stockholders' equity | $ 257,973 | $ 275,935 |
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||||
| Consolidated Statements of Cash Flows | ||||
| (In thousands) | ||||
| (Unaudited) | ||||
| Three Months Ended | Nine Months Ended | |||
| September 30, | September 30, | |||
| 2014 | 2013 | 2014 | 2013 | |
| Cash flows from operating activities: | ||||
| Net loss | $ (12,109) | $ (18,705) | $ (44,063) | $ (53,086) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||
| Depreciation and amortization | 3,765 | 4,015 | 11,650 | 11,802 |
| Stock-based compensation | 8,195 | 10,119 | 26,820 | 24,508 |
| Change in deferred taxes | 64 | -- | 96 | (1,351) |
| (Increase) decrease, net of acquisitions, in: | ||||
| Accounts receivable, net | (11,074) | 2,451 | 8,820 | 14,163 |
| Prepaid expenses and other assets | (2,987) | (1,707) | (5,918) | (2,716) |
| Increase (decrease), net of acquisitions, in: | ||||
| Accounts payable | 1,783 | 22 | 893 | (333) |
| Accrued payroll and related liabilities | (588) | (16) | (899) | (1,979) |
| Other accrued liabilities | 1,756 | (726) | 1,128 | (626) |
| Deferred revenue | 3,589 | (371) | (170) | 10,697 |
| Other long-term liabilities | (78) | 156 | 37 | 196 |
| Net cash provided by (used in) operating activities | (7,684) | (4,762) | (1,606) | 1,275 |
| Cash flows from investing activities: | ||||
| Payments for purchase of property and equipment | (1,303) | (4,000) | (7,891) | (8,789) |
| Purchases of marketable securities | (17,842) | (26,905) | (80,036) | (85,685) |
| Sales of marketable securities | 7,571 | 5,812 | 18,672 | 29,533 |
| Maturities of marketable securities | 16,700 | 22,025 | 61,774 | 64,355 |
| Acquisitions, net of cash acquired | -- | -- | -- | (11,047) |
| Net cash provided by (used in) investing activities | 5,126 | (3,068) | (7,481) | (11,633) |
| Cash flows from financing activities: | ||||
| Proceeds from exercise of stock options | 219 | 1,250 | 1,747 | 6,591 |
| Taxes paid related to net share settlement of equity awards | (456) | (362) | (1,571) | (754) |
| Repayments of term loans | (600) | (600) | (1,800) | (1,800) |
| Earnout payment for prior acquisition | -- | -- | (576) | -- |
| Net cash provided by (used in) financing activities | (837) | 288 | (2,200) | 4,037 |
| Net decrease in cash and cash equivalents | (3,395) | (7,542) | (11,287) | (6,321) |
| Effect of exchange rate changes | 80 | (40) | 56 | (28) |
| Cash and cash equivalents, beginning of period | 30,499 | 50,188 | 38,415 | 48,955 |
| Cash and cash equivalents, end of period | $ 27,184 | $ 42,606 | $ 27,184 | $ 42,606 |
|
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||||
| Reconciliation of Non-GAAP Information | ||||
| (In thousands, except per share data) | ||||
| (Unaudited) | ||||
|
Three Months Ended |
Nine Months Ended |
|||
| 2014 | 2013 | 2014 | 2013 | |
| Gross profit, as reported | $ 29,365 | $ 23,474 | $ 81,674 | $ 65,753 |
| Add back: | ||||
| Stock-based compensation | 1,014 | 991 | 3,125 | 2,289 |
| Amortization related to acquisitions | 954 | 972 | 2,880 | 2,654 |
| Non-recurring acquisition expense | -- | -- | -- | 250 |
| Gross profit, non-GAAP | $ 31,333 | $ 25,437 | $ 87,679 | $ 70,946 |
| Gross margin, non-GAAP | 67% | 68% | 67% | 67% |
|
Three Months Ended |
Nine Months Ended |
|||
| 2014 | 2013 | 2014 | 2013 | |
| Research and development, as reported | $ 13,608 | $ 14,957 | $ 39,496 | $ 41,383 |
| less: | ||||
| Stock-based compensation | 2,723 | 4,263 | 8,695 | 9,890 |
| Amortization related to acquisitions | 127 | 127 | 383 | 303 |
| Non-recurring acquisition expense | -- | 31 | -- | 50 |
| Research and development, non-GAAP | $ 10,758 | $ 10,536 | $ 30,418 | $ 31,140 |
| As percentage of total revenues, non-GAAP | 23% | 28% | 23% | 29% |
|
Three Months Ended |
Nine Months Ended |
|||
| 2014 | 2013 | 2014 | 2013 | |
| Sales and marketing, as reported | $ 21,696 | $ 20,804 | $ 66,855 | $ 60,148 |
| less: | ||||
| Stock-based compensation | 2,526 | 2,910 | 9,153 | 7,539 |
| Amortization related to acquisitions | 129 | 129 | 388 | 304 |
| Sales and marketing, non-GAAP | $ 19,041 | $ 17,765 | $ 57,314 | $ 52,305 |
| As percentage of total revenues, non-GAAP | 41% | 48% | 44% | 49% |
|
Three Months Ended |
Nine Months Ended |
|||
| 2014 | 2013 | 2014 | 2013 | |
| General and administrative, as reported | $ 6,161 | $ 6,202 | $ 18,994 | $ 18,149 |
| less: | ||||
| Stock-based compensation | 1,932 | 1,955 | 5,847 | 4,790 |
| General and administrative, non-GAAP | $ 4,229 | $ 4,247 | $ 13,147 | $ 13,359 |
| As percentage of total revenues, non-GAAP | 9% | 11% | 10% | 13% |
|
Three Months Ended |
Nine Months Ended |
|||
| 2014 | 2013 | 2014 | 2013 | |
| Loss from operations, as reported | $ (12,100) | $ (18,489) | $ (43,671) | $ (53,927) |
| Add back: | ||||
| Stock-based compensation | 8,195 | 10,119 | 26,820 | 24,508 |
| Amortization related to acquisitions | 1,210 | 1,228 | 3,651 | 3,261 |
| Non-recurring acquisition expense | -- | 31 | -- | 300 |
| Loss from operations, non-GAAP | $ (2,695) | $ (7,111) | $ (13,200) | $ (25,858) |
|
Three Months Ended |
Nine Months Ended |
|||
| 2014 | 2013 | 2014 | 2013 | |
| Loss before provision for (benefit from) income taxes, as reported | $ (11,945) | $ (18,676) | $ (43,713) | $ (54,272) |
| Add back: | ||||
| Stock-based compensation | 8,195 | 10,119 | 26,820 | 24,508 |
| Amortization related to acquisitions | 1,210 | 1,228 | 3,651 | 3,261 |
| Non-recurring acquisition expense | -- | 31 | -- | 300 |
| Loss before provision for (benefit from) income taxes, non-GAAP | $ (2,540) | $ (7,298) | $ (13,242) | $ (26,203) |
|
Three Months Ended |
Nine Months Ended |
|||
| 2014 | 2013 | 2014 | 2013 | |
| Net loss, as reported | $ (12,109) | $ (18,705) | $ (44,063) | $ (53,086) |
| Add back: | ||||
| Stock-based compensation | 8,195 | 10,119 | 26,820 | 24,508 |
| Amortization related to acquisitions | 1,210 | 1,228 | 3,651 | 3,261 |
| Non-recurring acquisition expense | -- | 31 | -- | 300 |
| Tax benefit related to acquisitions | -- | -- | -- | (1,351) |
| Net loss, non-GAAP | $ (2,704) | $ (7,327) | $ (13,592) | $ (26,368) |
|
Three Months Ended |
Nine Months Ended |
|||
| 2014 | 2013 | 2014 | 2013 | |
| Basic and diluted net loss per share, as reported | $ (0.17) | $ (0.27) | $ (0.63) | $ (0.79) |
| Add back: | ||||
| Stock-based compensation | 0.11 | 0.15 | 0.38 | 0.37 |
| Amortization related to acquisitions | 0.02 | 0.01 | 0.05 | 0.04 |
| Non-recurring acquisition expense | -- | -- | -- | -- |
| Tax benefit related to acquisitions | -- | -- | -- | (0.02) |
| Basic and diluted net loss per share, non-GAAP | $ (0.04) | $ (0.11) | $ (0.19) | $ (0.40) |
|
Three Months Ended |
Nine Months Ended |
|||
| 2014 | 2013 | 2014 | 2013 | |
| Total revenues | $ 46,600 | $ 37,359 | $ 131,004 | $ 106,453 |
| Deferred revenue, current, end of period | 114,777 | 98,602 | 114,777 | 98,602 |
| Less: Deferred revenue, current, beginning of period | (116,134) | (96,794) | (112,432) | (87,698) |
| Short-term billings | $ 45,243 | $ 39,167 | $ 133,349 | $ 117,357 |
|
Three Months Ended |
Nine Months Ended |
|||
| 2014 | 2013 | 2014 | 2013 | |
| Total revenues | $ 46,600 | $ 37,359 | $ 131,004 | $ 106,453 |
| Deferred revenue, end of period | 147,167 | 127,744 | 147,167 | 127,744 |
| Less: Deferred revenue, beginning of period | (143,578) | (128,115) | (147,337) | (117,047) |
| Billings | $ 50,189 | $ 36,988 | $ 130,834 | $ 117,150 |
CONTACT: Investor Contact:
Brian Denyeau
ICR
(646) 277-1251
brian.denyeau@icrinc.com
Media Contact:
Jason Khoury
Jive Software
(650) 847-8308
jason.khoury@jivesoftware.com
Source: News Provided by Acquire Media