Jive Software Announces Fourth Quarter and Full Year 2012 Financial Results
Jive Software Announces Fourth Quarter and Full Year 2012 Financial Results
* Record fourth quarter:
-- Total revenue of $32.5 million, up 44% year-over-year
-- Product revenue of $28.6 million, up 49% year-over-year
-- Total billings of $52.0 million, up 44% year-over-year
* Record fiscal year:
-- Total revenue of $113.7 million, up 47% year-over-year
-- Product revenue of $100.0 million, up 53% year-over-year
-- Total billings of $152.9 million, up 46% year-over-year
PALO ALTO, Calif., Feb. 5, 2013 (GLOBE NEWSWIRE) -- Jive Software, Inc.
(Nasdaq:JIVE), a leader in social business, today announced financial results
for its fourth quarter and fiscal year ended December 31, 2012.
"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 Tony Zingale,
Chairman & CEO of Jive.
"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
* Revenue: Total revenue for the fourth quarter was $32.5 million, an
increase of 44% on a year-over-year basis. Within total revenue, product
revenue was $28.6 million for the fourth quarter, an increase of 49% on a
year-over-year basis. Professional services revenue for the fourth quarter
was $3.9 million, an increase of 17% on a year-over-year basis.
* Non-GAAP Billings: Total billings, which Jive defines as revenue plus the
change in total deferred revenue, were $52.0 million for the fourth
quarter, an increase of 44% on a year-over-year basis.
* Gross Profit: GAAP gross profit for the fourth quarter was $20.5 million,
compared to $12.6 million for the fourth quarter of 2011. Non-GAAP gross
profit was $21.7 million for the fourth quarter, an increase of 61%
year-over-year, and non-GAAP gross margin was 67%, representing
approximately 700 basis points of margin improvement compared to the
fourth quarter of 2011.
* Loss from Operations: GAAP loss from operations for the fourth quarter was
$15.7 million,compared to a loss of $11.9 million for the fourth quarter
of 2011. Non-GAAP loss from operations was $8.9 million,compared to a
non-GAAP loss from operations of $8.3 million for the fourth quarter of
2011.
* Net Loss: GAAP net loss for the fourth quarter was $15.6 million, compared
to a net loss of $12.7 million for the same period last year. GAAP net
loss per share for the fourth quarter was $0.24, based on 64.2 million
weighted-average shares outstanding, compared to a net loss per share of
$0.39, based on 32.5 million weighted-average shares outstanding for the
same period last year.
Non-GAAP net loss for the fourth quarter was $9.1 million, compared to a
net loss of $9.1 million for the same period last year. Non-GAAP net loss
per share for the fourth quarter was $0.14, based on 64.2 million
weighted-average shares outstanding, compared to a net loss per share of
$0.28, based on 32.5 million weighted-average shares outstanding for the
same period last year.
* Balance Sheet and Cash Flow: As of December 31, 2012, Jive had cash and
cash equivalents and marketable securities of $168.1 million, compared to
$176.9 million at the end of the third quarter. The company used $7.6
million of cash for the previously announced acquisitions of Producteev
and Meetings.io during the fourth quarter. Cash from operations was ($1.6)
million and the company invested $1.3 million in capital expenditures,
leading to free cash flow of ($2.9) million for the fourth quarter. Free
cash flow was ($6.4) million for the fourth quarter of 2011. Free cash
flow is defined as cash flows provided by operating activities minus cash
flows used to purchase capital expenditures.
Full Year 2012 Financial Highlights
* Revenue: Total revenue was $113.7 million for fiscal 2012, an increase of
47% on a year-over-year basis. Within total revenue, product revenue was
$100.0 million for fiscal 2012, an increase of 53% on a year-over-year
basis. Services revenue for fiscal 2012 was $13.6 million, an increase of
13% on a year-over-year basis.
* Billings: Total billings, which the company defines as revenue plus the
change in total deferred revenue, were $152.9 million for fiscal 2012, an
increase of 46% on a year-over-year basis.
* Gross Profit: GAAP gross profit was $68.8 million fiscal 2012, compared to
$43.0 million for fiscal 2011. Non-GAAP gross profit was $73.4 million for
fiscal 2012, representing a year-over-year increase of 62% and a non-GAAP
gross margin of 65%.
* Loss from Operations: GAAP loss from operations was $47.1 million for
fiscal 2012,compared to a loss of $45.7 million for fiscal 2011. Non-GAAP
loss from operations was $26.2 million for fiscal 2012,compared to a loss
of $32.2 million for fiscal 2011.
* Net Loss: GAAP net loss for fiscal 2012 was $47.4 million, compared to a
$50.8 million net loss for fiscal 2011. GAAP net loss per share for fiscal
2012 was $0.76 based on 62.6 million weighted-average shares outstanding,
compared to a loss per share of $1.95 based on 26.1 million
weighted-average shares outstanding for fiscal 2011.
Non-GAAP net loss for fiscal 2012 was $26.9 million, compared to a $33.9
million net loss for fiscal 2011. Non-GAAP net loss per share for fiscal
2012 was $0.43, based on 62.6 million weighted-average shares outstanding,
compared to a non-GAAP net loss per share for fiscal 2011 of $1.30 based
on 26.1 million weighted-average shares outstanding for fiscal 2011.
* Cash Flow: The company generated $3.1 million in cash from operations and
invested $10.6 million in capital expenditures, leading to free cash flow
of ($7.5) million for fiscal 2012. Free cash flow was ($19.3) million for
fiscal 2011.
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
* Ended the fourth quarter with 800 customers, an increase of 39 from the
end of the third quarter of 2012. This customer count excludes customers
from the Producteev and Meetings.io acquisitions which closed during the
fourth quarter.
* Signed new and expanded customer relationships with Anglo American,
AutoTrader.com, BMW Group, Cameron International, Givaudan AG, Hitatchi
Data Systems, Macmillan, Michelin France, and Ricoh Americas Corporation,
among others.
* Announced a business relationship with PwC US to jointly offer Jive's
social business platform and PwC's consulting services to the enterprise
market. Through this relationship, Jive and PwC will work closely together
to help organizations drive significant levels of new value with
measurable business results for an organization's employees, partners and
customers.
* Released results of comprehensive customer research conducted by a top
global business consulting firm which showed companies using Jive reported
a 15% increased worker productivity and a 4% increase in topline revenue,
due to:
-- 34% reduction in time looking for information and expertise within the
company
-- 16% reduction in meetings; and
-- 21% reduction in email load
Financial Outlook: As of February 5, 2013, Jive's guidance for its first
quarter and full year 2013 is as follows:
* First Quarter 2013 Guidance: Total revenue is expected to be in the range
of $33.5 million to $34.5 million. Non-GAAP loss from operations is
expected to be in the range of $9.5 million to $10.5 million. Non-GAAP
loss per share is expected to be in the range of $0.15 to $0.17 based on
approximately 65.2 million weighted-average diluted shares outstanding.
* Full Year 2013 Guidance: Total revenue is expected to be in the range of
$148.0 million to $153.0 million. Non-GAAP loss from operations is
expected to be in the range of $33.0 million to $37.0 million. Non-GAAP
loss per share is expected to be in the range of $0.53 to $0.60 based on
approximately 66.2 million weighted-average diluted shares
outstanding. Free cash flow is expected to be in the range of $0 million
to $3.0 million.
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 fourth quarter and full year
2012, in addition to discussing the Company's outlook for the first quarter
and full year 2013. To access this call, dial (888) 668-1639 (domestic) or
(913) 981-5546 (international) with conference ID #1475728. 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 February 19, 2013,
by dialing (877) 870-5176 (domestic) or (858) 384-5517 (international). The
replay passcode is 1475728.
About Jive Software
Jive Software (JIVE) is a leader in social business. Our cloud-based
platform connects employees, customers and partners and is a proven
system, focused on value use cases, that, according to research performed by a
top three global business consultancy firm, increases productivity within
companies by up to 15%. By combining the power of cloud, mobile, big data
and proprietary collaboration technologies, Jive is transforming the way work
gets done and unleashing productivity, creativity and innovation for millions
of people in many of the world's largest companies. For a free trial of
Jive's next-generation social business platform, please visit Try Jive.
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 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 For the Twelve Months Ended
Ended December 31,
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 4,764 3,675 16,444 12,795
administrative
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 -- -- -- (7,185)
warrant liability
Other, net (94) (7) (98) (3)
Total other income (126) (815) (339) (8,883)
(expense), net
Loss before provision
(benefit) for income (15,791) (12,719) (47,407) (54,567)
taxes
Provision (benefit) for (218) (53) 28 (3,763)
income taxes
Net loss $ (15,573) $ (12,666) $ (47,435) $ (50,804)
Basic and diluted net $ (0.24) $ (0.39) $ (0.76) $ (1.95)
loss per share
Shares used in basic and
diluted per share 64,165 32,490 62,614 26,071
calculations
JIVE SOFTWARE, INC.
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 16,803 12,639
depreciation
Goodwill 23,435 17,265
Intangible assets, net of accumulated 11,710 11,141
amortization
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
JIVE SOFTWARE, INC.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, 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 -- -- -- 7,185
of warrant liability
Change in deferred taxes (281) -- (281) (3,851)
Gain on sale of property and 21 (2) 21 (2)
equipment
(Increase) decrease, net of
acquisitions, in:
Accounts receivable, net (18,325) (7,219) (22,201) (11,655)
Prepaid expenses and other (1,051) (271) (3,343) (844)
assets
Increase (decrease), net of
acquisitions, in:
Accounts payable 1,407 (1,588) 5,529 1,682
Accrued payroll and related 1,704 1,721 728 2,857
liabilities
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) (1,609) (2,435) 3,143 (9,506)
operating activities
Cash flows from investing
activities:
Payments for purchase of (1,259) (3,977) (10,648) (9,814)
property and equipment
Increase in restricted cash -- (132) -- (132)
Purchases of marketable (12,840) -- (154,475) --
securities
Sales of marketable securities -- -- 11,147 --
Maturities of marketable 13,140 -- 24,229 --
securities
Acquisitions, net of cash (7,613) -- (7,613) (22,892)
acquired
Net cash used in investing (8,572) (4,109) (137,360) (32,838)
activities
Cash flows from financing
activities:
Proceeds from exercise of
stock options, including tax 2,246 1,409 5,970 3,416
withholding
Proceeds from issuance of -- -- -- 40,000
preferred stock, net
Proceeds from initial public -- 133,050 (1,014) 132,486
offering, net
Proceeds from revolving credit -- (4,048) -- (3,533)
facility, net
Proceeds from term loans -- -- -- 24,203
Repayments of term loans (600) (15,823) (2,450) (16,927)
Net cash provided by financing 1,646 114,588 2,506 179,645
activities
Net increase (decrease) in (8,535) 108,044 (131,711) 137,301
cash and cash equivalents
Effect of exchange rate 18 -- 17 --
changes
Cash and cash equivalents, 57,472 72,605 180,649 43,348
beginning of period
Cash and cash equivalents, end $ 48,955 $ 180,649 $ 48,955 $ 180,649
of period
JIVE SOFTWARE, INC.
RECONCILIATION OF NON-GAAP INFORMATION
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, 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 662 664 2,521 1,738
acquisitions
Gross profit, non-GAAP $ 21,744 $ 13,481 $ 73,357 $ 45,282
Gross margin, non-GAAP 67% 60% 65% 59%
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
Research and development, as $ 11,863 $ 7,775 $ 39,190 $ 31,095
reported
less:
Stock-based compensation 2,065 880 6,250 2,644
Amortization related to 17 -- 17 1,031
acquisitions
Non-recurring acquisition 100 -- 100 333
expense
Research and $ 9,681 $ 6,895 $ 32,823 $ 27,087
development, non-GAAP
As percentage of total 30% 31% 29% 35%
revenues, non-GAAP
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
Sales and marketing, as $ 19,498 $ 13,037 $ 60,235 $ 44,794
reported
less:
Stock-based compensation 2,080 683 4,970 3,918
Amortization related to 11 -- 11 --
acquisitions
Sales and marketing, non-GAAP $ 17,407 $ 12,354 $ 55,254 $ 40,876
As percentage of total 54% 55% 49% 53%
revenues, non-GAAP
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
General and administrative, as $ 4,764 $ 3,675 $ 16,444 $ 12,795
reported
less:
Stock-based compensation 1,165 1,101 4,954 3,316
General and $ 3,599 $ 2,574 $ 11,490 $ 9,479
administrative, non-GAAP
As percentage of total 11% 11% 10% 12%
revenues, non-GAAP
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
Loss from operations, as $ (15,665) $ (11,904) $ (47,068) $ (45,684)
reported
Add back:
Stock-based compensation 5,932 2,898 18,209 10,422
Amortization related to 690 664 2,549 2,769
acquisitions
Non-recurring acquisition 100 -- 100 333
expense
Loss from operations, non-GAAP $ (8,943) $ (8,342) $ (26,210) $ (32,160)
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
Loss before provision for
(benefit from) income taxes, $ (15,791) $ (12,719) $ (47,407) $ (54,567)
as reported
Add back:
Stock-based compensation 5,932 2,898 18,209 10,422
Amortization related to 690 664 2,549 2,769
acquisitions
Non-recurring acquisition 100 -- 100 333
expense
Change in fair value of -- -- -- 7,185
warrant liability
Loss before provision for
(benefit from) income taxes, $ (9,069) $ (9,157) $ (26,549) $ (33,858)
non-GAAP
Three Months Ended Twelve Months Ended
December 31, 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 690 664 2,549 2,769
acquisitions
Non-recurring acquisition 100 -- 100 333
expense
Change in fair value of -- -- -- 7,185
warrant liability
Tax benefit related to (281) -- (281) (3,851)
acquisitions
Net loss, non-GAAP $ (9,132) $ (9,104) $ (26,858) $ (33,946)
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
Basic and diluted net loss per $ (0.24) $ (0.39) $ (0.76) $ (1.95)
share, as reported
Add back:
Stock-based compensation 0.09 0.09 0.29 0.40
Amortization related to 0.01 0.02 0.04 0.11
acquisitions
Non-recurring acquisition 0.00 -- 0.00 0.01
expense
Change in fair value of -- -- -- 0.28
warrant liability
Tax benefit related to (0.00) -- (0.00) (0.15)
acquisitions
Basic and diluted net loss per $ (0.14) $ (0.28) $ (0.43) $ (1.30)
share, non-GAAP
Three Months Ended Twelve Months Ended
December 31, December 31,
2012 2011 2012 2011
Total revenues $ 32,525 $ 22,514 $ 113,666 $ 77,285
Deferred revenue, end of 117,047 77,826 117,047 77,826
period
Less: Deferred revenue, (97,554) (64,304) (77,826) (50,195)
beginning of period
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
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