Jive Software Announces Third Quarter 2012 Financial Results

Jive Software Announces Third Quarter 2012 Financial Results

  *Total revenue of $28.9 million, up 39% year-over-year
  *Product revenue of $25.9 million, up 48% year-over-year
  *Record billings of $38.9 million, up 47% year-over-year
  *3Q cash flow from operations of $1.6 million
  *Announces acquisition of Meetings.io and Producteev, further enhancing
    innovative platform

PALO ALTO, Calif., Nov. 5, 2012 (GLOBE NEWSWIRE) -- Jive Software, Inc.
(Nasdaq:JIVE), today announced financial results for its third quarter ended
September 30, 2012.

"The combination of multi-year, multi-million dollar deals and new customer
wins contributed to strong year-over-year quarterly billings growth of 47% and
product revenue growth of 48% for the third quarter," stated Tony Zingale,
Chairman & CEO of Jive. "Jive's success is being fueled by our highly
differentiated track record of delivering tangible business value with
hundreds of the largest global organizations. Our value proposition is
reinforced by our growing list of blue chip customers, significant expansions
of existing deployments and record number of seven figure customer
commitments." 

Zingale added, "We continue to enhance our industry leading social business
platform and ecosystem, through the release of feature-packed Jive 6, the
recently announced partnership with Box and todays announced acquisitions of
Meetings.io and Producteev.As global organizations increasingly turn to
social business to change how they get work done, Jive is increasingly
recognized as the de facto standard in the social business market."

Third Quarter 2012 Financial Highlights

  *Revenue:Total revenue for the third quarter was $28.9 million, an increase
    of 39% on a year-over-year basis. Within total revenue, product revenue
    was $25.9 million for the third quarter, an increase of 48% on a
    year-over-year basis. Professional Services revenue for the third quarter
    was $3.0 million, a decrease of 9% on a year-over-year basis.
    
  *Non-GAAP Billings: Total billings, which Jive defines as revenue plus the
    change in total deferred revenue, were $38.9 million for the third
    quarter, an increase of 47% on a year-over-year basis.
    
  *Gross Profit: GAAP gross profit for the third quarter was $17.6 million,
    compared to $11.6 million for the third quarter of 2011.Non-GAAP gross
    profit was $18.9 million for the third quarter, an increase of 52%
    year-over-year, and non-GAAP gross margin was 65%, representing
    approximately 600 basis points of margin improvement, compared to the
    third quarter of 2011.
    
  *Loss from Operations: GAAP loss from operations for the third quarter was
    $11.2 million,compared to a loss of $12.2 million for the third quarter of
    2011.Non-GAAP loss from operations was $5.5 million,compared to a
    non-GAAP loss from operations of $7.4 million for the third quarter of
    2011.
    
  *Net Loss:GAAP net loss for the third quarter was $11.3 million, compared
    to a net loss of $7.6 million for the same period last year. GAAP net loss
    per share for the third quarter was $0.18, based on 62.9 million
    weighted-average shares outstanding, compared to a net loss per share of
    $0.31, based on 24.8 million weighted-average shares outstanding for the
    same period last year.

  Non-GAAP net loss for the third quarter was $5.6 million, compared to a net
  loss of $8.0 million for the same period last year. Non-GAAP net loss per
  share for the third quarter was $0.09, based on 62.9 million
  weighted-average shares outstanding, compared to a net loss per share of
  $0.32, based on 24.8 million weighted-average shares outstanding for the
  same period last year.

  *Balance Sheet and Cash Flow: As of September 30, 2012, Jive had cash and
    cash equivalents and marketable securities of $176.9 million, compared to
    $176.5 million at the end of the second quarter.The company generated
    $1.6 million in cash from operations and invested $3.5 million in capital
    expenditures, leading to free cash flow of ($1.9) million for the third
    quarter.Free cash flow was ($8.7) million for the third 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."

Third Quarter and Recent Business Highlights

  *Ended the third quarter with 761 customers, a record quarterly increase of
    54 from the end of the second quarter of 2012.
    
  *Entered into new and expanded customer relationships with several
    customers, including AIA, Jacobs Engineering, Chubb Insurance, SAIC,
    ALLIANZ SE, F5 Networks, Good Technology, Credit Suisse, Nascar, and one
    of the five largest airlines in the United States.
    
  *Announced the acquisitions of privately-held Meetings.io and Producteev
    (see separate release issued today for additional details). Meetings.io is
    a next generation real-time communication platform, and Producteev offers
    a cloud-based social task management solution that makes it simple for
    teams to collaborate and manage tasks and projects across multiple
    platforms, including mobile devices.Phoenix currently has more than two
    thousand companies using its service.Jive paid approximately $7.6 million
    in cash and issued 460,000 shares to complete both acquisitions.
    
  *Recently recognized again as a leader in Gartner's Magic Quadrant® for
    Social Software in the Workplace, and also, again named a leader in
    Gartner's Magic Quadrant for Social CRM.
    
  *Announced a strategic partnership with Box that deeply integrates Jive's
    leading social business platform and Box's best-in-class content sharing
    and collaboration platform. The entire Box experience will be accessible
    in Jive Cloud, and will enable the user to access files stored in Box
    directly from within Jive, upload content to Box directly from Jive, sync
    documents across the two platforms, and search for content across both
    systems.Jive and Box are also working together to coordinate a joint
    go-to-market strategy to raise awareness and deliver the integrated
    Jive/Box value proposition.
    
  *Recently hosted its 4^th annual JiveWorld customer Conference in Las
    Vegas, the industry's largest event purely focused on social business.In
    attendance were approximately 1,400 customers and partners, where industry
    leaders such as EMC, PWC, Deutsche Bank, Wells Fargo, Pearson and
    T-Mobile, among others, presented their experience in driving mass
    adoption of Jive's platform and the significant business value received as
    a result.

Financial Outlook:As of November 5, 2012, Jive's guidance for its fourth
quarter 2012, and updated its guidance for the full year 2012, are as follows:

  *Fourth Quarter 2012 Guidance: Total revenue is expected to be in the range
    of $30.0 million to $31.5 million. Non-GAAP loss from operations is
    expected to be in the range of $9.0 million to $10.0 million. Non-GAAP
    loss per share is expected to be in the range of $0.15 to $0.17 based on
    approximately 64.0 million weighted-average diluted shares
    outstanding.Fourth quarter guidance includes dilution in the range of
    $0.03 to $0.04 per share related to the acquisitions of Meetings.io and
    Producteev.
    
  *Full Year 2012 Guidance: Total revenue is expected to be in the range of
    $111.1 million to $112.6 million. Non-GAAP loss from operations is
    expected to be in the range of $26.3 million to $27.3 million. Non-GAAP
    loss per share is expected to be in the range of $0.44 to $0.46 based on
    approximately 62.6 million weighted-average diluted shares
    outstanding.Free cash flow is expected to be in the range of ($7.0)
    million to ($9.0) million.Full year 2012 guidance includes dilution in
    the range of $0.03 to $0.04 per share related to the acquisitions of
    Meetings.io and Producteev.

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 third quarter 2012, in addition
to discussing the Company's outlook for the fourth quarter 2012 and updated
guidance for the full year 2012.To access this call, dial (800) 390-5202
(domestic) or (719) 325-2243 (international) with conference ID #7774291. 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 November 19, 2012, by dialing (877) 870-5176
(domestic) or (858) 384-5517 (international). The replay passcode is 7774291.

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 or upsell rates and the impact these rates
may have on our future revenues; risks related to the pending closing of our
acquisition of Producteev, 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)
                                                             
                     For the Three Months Ended For the Nine Months Ended
                     September 30,              September 30,
                     2012           2011          2012          2011
                                                             
Revenues:                                                     
Product               $25,861       $17,493      $71,436     $46,092
Professional services 3,012         3,326        9,705        8,679
Total revenues        28,873        20,819       81,141       54,771
                                                             
Cost of revenues:                                             
Product               7,788         6,147        21,745       15,208
Professional services 3,474         3,095        11,055       9,146
Total cost of         11,262        9,242        32,800       24,354
revenues
Gross profit          17,611        11,577       48,341       30,417
                                                             
Operating expenses:                                           
Research and          9,845         7,537        27,327       23,320
development
Sales and marketing  14,800        12,297       40,737       31,757
General and           4,127         3,901        11,680       9,120
administrative
Total operating       28,772        23,735       79,744       64,197
expenses
                                                             
Loss from operations  (11,161)      (12,158)     (31,403)     (33,780)
                                                             
Other income                                                  
(expense), net:
Interest income       56            10           116          37
Interest expense      (93)          (569)        (325)        (924)
Change in fair value  --           5,150        --          (7,185)
of warrant liability
Other, net            42            44           (4)          4
Total other income    5             4,635        (213)        (8,068)
(expense), net
                                                             
Loss before provision
(benefit) forincome  $(11,156)     $(7,523)    $(31,616)   $(41,848)
taxes
Provision (benefit)   132           57           246          (3,710)
for income taxes
Net loss              $(11,288)    $(7,580)    $(31,862)   $(38,138)
                                                             
Basic and diluted net (0.18)        (0.31)       (0.51)       (1.61)
loss per share
                                                             
Shares used in basic
and diluted per share 62,921        24,836       62,100       23,741
calculations
                                                             

JIVE SOFTWARE, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                                              
                                               September 30, December 31,
                                               2012            2011
                                                              
Assets                                                         
Current Assets:                                                
Cash and cash equivalents                       $57,472        $180,649
Short-term marketable securities                83,995         --
Accounts receivable, net of allowances          35,875         31,999
Prepaid expenses and other current assets       6,827          4,503
Total current assets                            184,169        217,151
                                                              
Marketable securities, noncurrent               35,404         --
Property and equipment, net of accumulated      16,150         12,639
depreciation
Goodwill                                        17,265         17,265
Intangible assets, net of accumulated           8,518          11,141
amortization
Other assets                                   234            146
Total assets                                    $261,740       $258,342
                                                              
Liabilities and Stockholders' Equity                           
Current liabilities:                                           
Accounts payable                                $7,175         $4,566
Accrued payroll and related liabilities         5,653          6,629
Other accrued liabilities                       4,534          5,124
Deferred revenue, current                       74,425         62,329
Term debt, current                              2,400          2,946
Total current liabilities                       94,187         81,594
                                                              
Deferred revenue, less current portion          23,129         15,497
Term debt, less current portion                 9,000          10,192
Other long-term liabilities                     547            340
Total liabilities                               126,863        107,623
                                                              
Commitments and contingencies                                  
                                                              
Stockholders' Equity:                                          
Common stock                                    7              7
Less treasury stock at cost                     (3,352)        (3,352)
Additional paid-in capital                      274,780        258,779
Accumulated deficit                             (136,587)      (104,725)
Accumulated other comprehensive income          29             10
Total stockholders' equity                      134,877        150,719
Total liabilities and stockholders' equity      $261,740       $258,342
                                                              

JIVE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
                                                       
                                 Three Months Ended   Nine Months Ended
                                 September 30,        September 30,
                                 2012        2011       2012       2011
                                                                
Cashflows from operating                                        
activities:
Net loss                          $ (11,288) $ (7,580) $ (31,862) $ (38,138)
Adjustments to reconcile net loss
to net cash provided by (used in)                                
operating activities:
Depreciation and amortization     2,567      2,088     7,170     5,107
Stock-based compensation          5,028      4,129     12,277    7,524
Loss from change in fair value of --        (5,150)   --       7,185
warrant liability
Change in deferred taxes          --        --       --       (3,851)
(Increase) decrease, net of                                     
acquisitions, in:
Accounts receivable, net          (6,856)    (7,787)   (3,876)   (4,436)
Prepaid expenses and other assets (1,916)    (755)     (2,292)   (573)
Increase (decrease), net of                                    
acquisitions, in:
Accounts payable                  3,956      1,315     4,122     3,270
Accrued payroll and related       (190)      636       (976)     1,136
liabilities
Other accrued liabilities         180        584       56        1,557
Deferred revenue                  10,072     5,660     19,728    14,084
Other long-term liabilities       3          17        405       64
Net cash provided by (used in)    1,556      (6,843)   4,752     (7,071)
operating activities
                                                                
Cash flows from investing                                        
activities:
Payments for purchase of property (3,476)    (1,829)   (9,389)   (5,837)
and equipment
Purchases of marketable           (53,551)   --       (119,399) --
securities
Acquisitions, net of cash         --        --       --       (22,892)
acquired
Net cash used in investing        (57,027)   (1,829)   (128,788) (28,729)
activities
                                                                
Cash flows from financing                                        
activities:
Proceeds from exercise of stock
options, including tax            2,855      (2,045)   3,724     2,007
withholding
Proceeds from issuance of         --        40,000    --       40,000
preferred stock, net
Payments for stock issuance costs --        (564)     (1,014)   (564)
Proceeds from revolving credit    --        --       --       515
facility, net
Proceeds from term loans          --        --       --       24,203
Repayments of term loans          (600)      (750)     (1,850)   (1,104)
Net cash provided by financing    2,255      36,641    860       65,057
activities
                                                                
Net increase (decrease) in cash   (53,216)   27,969    (123,176) 29,257
and cash equivalents
Effect of exchange rate changes   2          --       (1)       --
Cash and cash equivalents,        110,686    44,636    180,649   43,348
beginning of period
Cash and cash equivalents, end of $ 57,472    $ 72,605   $ 57,472   $ 72,605
period
                                                                

JIVE SOFTWARE, INC.
RECONCILIATION OF NON-GAAP INFORMATION
(In thousands, except per share data)
(Unaudited)
                                                                
                                  Three Months Ended   Nine Months Ended
                                   September 30,        September 30,
                                  2012       2011       2012       2011
                                                                
Gross profit, as reported          $ 17,611  $ 11,577   $ 48,341   $ 30,417
Add back:                                                        
Stock-based compensation           627       155       1,413     311
Amortization related to            614       634       1,859     1,074
acquisitions
Gross profit, non-GAAP             $ 18,852  $ 12,366   $ 51,613   $ 31,802
Gross margin, non-GAAP             65%        59%        64%        58%
                                                                
                                  Three Months Ended   Nine Months Ended
                                   September 30,        September 30,
                                  2012       2011       2012       2011
                                                                
Research and development,as       $ 9,845    $ 7,537    $ 27,327   $ 23,320
reported
less:                                                            
Stock-based compensation           1,705     806       4,185     1,764
Amortization related to            --       --       --       1,031
acquisitions
Non-recurring acquisition expense  --       --       --       333
Research and development,non-GAAP $ 8,140    $ 6,731    $ 23,142   $ 20,192
As percentage of total revenues,   28%        32%        29%        37%
non-GAAP
                                                                
                                  Three Months Ended   Nine Months Ended
                                   September 30,        September 30,
                                  2012       2011       2012       2011
                                                                
Sales and marketing,as reported   $ 14,800   $ 12,297   $ 40,737   $ 31,757
less:                                                            
Stock-based compensation           1,436     1,988     2,890     3,234
Sales and marketing,non-GAAP      $ 13,364   $ 10,309   $ 37,847   $ 28,523
As percentage of total revenues,   46%        50%        47%        52%
non-GAAP
                                                                
                                  Three Months Ended   Nine Months Ended
                                   September 30,        September 30,
                                  2012       2011       2012       2011
                                                                
General and administrative,as     $ 4,127    $ 3,901    $ 11,680   $ 9,120
reported
less:                                                            
Stock-based compensation           1,260     1,180     3,789     2,215
General and                        $ 2,867    $ 2,721    $ 7,891    $ 6,905
administrative,non-GAAP
As percentage of total revenues,   10%        13%        10%        13%
non-GAAP
                                                                
                                  Three Months Ended   Nine Months Ended
                                   September 30,        September 30,
                                  2012       2011       2012       2011
                                                                
Loss from operations, as reported  $ (11,161) $ (12,158) $ (31,403) $ (33,780)
Add back:                                                        
Stock-based compensation           5,028     4,129     12,277    7,524
Amortization related to            614       634       1,859     2,105
acquisitions
Non-recurring acquisition expense  --       --       --       333
Loss from operations, non-GAAP     $ (5,519)  $ (7,395)  $ (17,267) $ (23,818)
                                                                
                                                                
                                  Three Months Ended   Nine Months Ended
                                   September 30,        September 30,
                                  2012       2011       2012       2011
                                                                
Loss before provision for (benefit $ (11,156) $ (7,523)  $ (31,616) $ (41,848)
from) income taxes, as reported
Add back:                                                        
Stock-based compensation           5,028     4,129     12,277    7,524
Amortization related to            614       634       1,859     2,105
acquisitions
Non-recurring acquisition expense  --       --       --       333
Change in fair value of warrant    --       (5,150)   --       7,185
liability
Loss before provision for (benefit $ (5,514)  $ (7,910)  $ (17,480) $ (24,701)
from) income taxes, non-GAAP
                                                                
                                  Three Months Ended   Nine Months Ended
                                   September 30,        September 30,
                                  2012       2011       2012       2011
                                                                
Net loss, as reported              $ (11,288) $ (7,580)  $ (31,862) $ (38,138)
Add back:                                                        
Stock-based compensation           5,028     4,129     12,277    7,524
Amortization related to            614       634       1,859     2,105
acquisitions
Non-recurring acquisition expense  --       --       --       333
Change in fair value of warrant    --       (5,150)   --       7,185
liability
Tax benefit related to acquisition --       --       --       (3,851)
of OffiSync
Net loss, non-GAAP                 $ (5,646)  $ (7,967)  $ (17,726) $ (24,842)
                                                                
                                  Three Months Ended   Nine Months Ended
                                   September 30,        September 30,
                                  2012       2011       2012       2011
                                                                
Basic and diluted net loss per     $ (0.18)   $ (0.31)   $ (0.51)   $ (1.61)
share, as reported
Add back:                                                        
Stock-based compensation           0.08      0.17      0.20      0.32
Amortization related to            0.01      0.03      0.03      0.09
acquisitions
Non-recurring acquisition expense  --       --       --       0.01
Change in fair value of warrant    --       (0.21)    --       0.30
liability
Tax benefit related to acquisition --       --       --       (0.16)
of OffiSync
Basic and diluted net loss per     $ (0.09)   $ (0.32)   $ (0.29)   $ (1.05)
share, non-GAAP
                                                                
                                  Three Months Ended   Nine Months Ended
                                   September 30,        September 30,
                                  2012       2011       2012       2011
                                                                
Total revenues                     $ 28,873   $ 20,819   $ 81,141   $ 54,771
Deferred revenue, end of period    97,554    64,304    97,554    64,304
Less: Deferred revenue, beginning  (87,482)  (58,644)  (77,826)  (50,195)
of period
Billings                           $ 38,945   $ 26,479   $ 100,869  $ 68,880

CONTACT: Investor Contact:
         Brian Denyeau
         ICR
         646-277-1251
         brian.denyeau@icrinc.com
        
         Media Contact:
         Amanda Pires
         (650) 465-1215
         Amanda.pires@jivesoftware.com
 
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