Jive Software Announces First Quarter 2013 Financial Results

Jive Software Announces First Quarter 2013 Financial Results

  *1Q total revenue of $33.9 million, up 34% year-over-year
  *1Q product revenue of $30.7 million, up 41% year-over-year
  *1Q total billings of $38.2 million, up 35% year-over-year
  *Generated $5.8 million of cash from operations and $3.0 million of free
    cash flow

PALO ALTO, Calif., April 30, 2013 (GLOBE NEWSWIRE) -- Jive Software, Inc.
(Nasdaq:JIVE), a leader in social business, today announced financial results
for its first quarter ended March 31, 2013.

"The first quarter was a solid start to the year, and it was highlighted by
over 40% growth in product revenue and positive free cash flow for the first
time since Jive became a public company," stated Tony Zingale, Chairman & CEO
of Jive. "We continue to see growing evidence that the social business market
is moving to the mainstream in 2013, including blue chip customers signing
multi-million dollar, multi-year commitments with Jive. We believe that Jive
is well positioned to capitalize on this market trend as a result of our
differentiated business value proposition, product innovation leadership,
growing sales pipeline and increased investments in sales and partnerships."

First Quarter 2013 Financial Highlights

  *Revenue: Total revenue for the first quarter was $33.9 million, an
    increase of 34% on a year-over-year basis. Within total revenue, product
    revenue was $30.7 million for the first quarter, an increase of 41% on a
    year-over-year basis. Professional Services revenue for the first quarter
    was $3.2 million, a decrease of 13% on a year-over-year basis.
    
  *Non-GAAP Billings: Total billings, which Jive defines as revenue plus the
    change in total deferred revenue, were $38.2 million for the first
    quarter, an increase of 35% on a year-over-year basis.
    
  *Gross Profit: GAAP gross profit for the first quarter was $20.8 million,
    compared to $14.7 million for the first quarter of 2012. Non-GAAP gross
    profit was $22.1 million for the first quarter, representing a
    year-over-year increase of 42% and a non-GAAP gross margin of 65%,
    representing a 300 basis point gross margin improvement compared to the
    first quarter of 2012.
    
  *Loss from Operations: GAAP loss from operations for the first quarter was
    $16.6 million,compared to a loss of $8.8 million for the first quarter of
    2012. Non-GAAP loss from operations was $9.6 million,compared to a loss of
    $5.1 million for the first quarter of 2012.
    
  *Net Loss: GAAP net loss for the first quarter was $16.6 million, compared
    to a net loss of $8.9 million for the same period last year. GAAP net loss
    per share for the first quarter was $0.25 based on 65.5 million
    weighted-average shares outstanding, compared to a loss per share of $0.15
    based on 61.4 million weighted-average shares outstanding for the same
    period last year.

  Non-GAAP net loss for the first quarter was $9.6 million, compared to a net
  loss of $5.2 million for the same period last year. Non-GAAP net loss per
  share for the first quarter was $0.15 based on 65.5 million weighted-average
  shares outstanding, compared to net a loss per share of $0.09 based on 61.4
  million weighted-average shares outstanding for the same period last year.

  *Balance Sheet and Cash Flow: As of March 31, 2013, Jive had cash and cash
    equivalents and marketable securities of $173.5 million, an increase from
    $168.1 million at the end of the fourth quarter.

  The company generated $5.8 million in cash from operations and invested $2.8
  million in capital expenditures, leading to free cash flow of $3.0 million
  for the first quarter.Free cash flow was ($1.3) million for the first
  quarter of 2012.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."

First Quarter and Recent Business Highlights

  *Signed new and expanded customer relationships including T-Mobile, Bank of
    the West, Blue Shield of California, CB Richard Ellis, DeVry Inc, SAIC,
    Geisinger System Services, Hearst Corporation, Teradata Corporation,
    Trinity Health, Nasdaq, VCE, among others.
    
  *Announced the Jive Spring cloud release, the social business market's most
    innovative platform.Major new functionality in this release includes
    Purposeful Places, which allows the creation of virtual work spaces that
    deeply integrate with Salesforce.com and Box to bring together people,
    content, and information in intelligent collaboration areas optimized
    around specific business activities to produce tangible outcomes.
    Structured Outcomes takes everyday workplace conversations and converts
    them into actionable activities that drive rapid business results,
    enabling workers to move easily from discussion to execution.
    
  *Announced the opening of new offices in Sydney, Melbourne, Australia; Hong
    Kong; and Singapore.Jive's expanded presence in the Asia Pacific region
    is timed perfectly with more companies around the world recognizing how
    social business platforms can deliver real business value for their
    customers, partners and employees, including increasing workforce
    productivity up to 15 percent and increasing top-line growth by as much as
    4 percent.* (*source: Top 3 global business consultancy research; November
    2012).
    
  *Announced the acquisitions of two companies. The first, Clara, develops
    analytics tools that allow businesses to understand, monitor and actively
    engage with community members across multiple online platforms.The
    second, StreamOnce, offers an innovative platform that connects email and
    other information streams directly into Jive, integrating disparate
    information systems for increased productivity.
    
  *Announced that it will host an analyst and investor day at the W Hotel
    Times Square in New York City on May 21, 2013 beginning at 9:00am
    ET.During the day, various members of Jive's senior management will
    address the company's market opportunity, value proposition, product
    differentiation and future product roadmap.An audio webcast and the
    replay, of the event will be available on the investor relations section
    of Jive's website at http://investors.jivesoftware.com/.

Financial Outlook

As of April 30, 2013, Jive is initiating guidance for its second quarter 2013
and reiterating guidance for the full year 2013, as follows:

  *Second Quarter 2013 Guidance: Total revenue is expected to be in the range
    of $34.5 million to $35.5 million. Non-GAAP loss from operations is
    expected to be in the range of $10.0 million to $11.0 million. Non-GAAP
    loss per share is expected to be in the range of $0.16 to $0.18 based on
    approximately 65.9 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 $34.5 million to $38.5 million. Non-GAAP
    loss per share is expected to be in the range of $0.55 to $0.62 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.Full year 2012 guidance includes dilution of $0.02 per share
    related to the acquisitions ofClara and StreamOnce.

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 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 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 first quarter 2013, in addition
to discussing the company's outlook for the second quarter 2013. To access
this call, dial (888) 211-7450 (domestic) or (913) 312-6681 (international)
with conference ID 7524920.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 May 14, 2013, by dialing (877)
870-5176 (domestic) or (858) 384-5517 (international). The replay pass code is
7524920.

About Jive Software

Jive Software (JIVE) is a leader in social business. Ourcloud-based
platformconnects employees, customersand partners and is a proven
system,focused on value use cases, that, according to research performed by a
top three global business consultancy firm, increasesproductivity within
companies by up to 15%*.By combining the power ofcloud,mobile,big data
andproprietarycollaborationtechnologies, Jive is transforming the way work
gets done and unleashingproductivity,creativity and innovationfor millions
of people in many oftheworld's largest companies. For a free trial of
Jive's next-generation social business platform, please visitTry Jive.

For more information, please visit www.jivesoftware.com or the Jive News Blog
here.

* Source: Top three global business consultancy research; November 2012

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, and amortization of acquisition related intangible assets.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 second 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, growth in our sales pipeline, 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)
                                                                 
                                                    Quarter Ended March 31,
                                                    2013          2012
                                                                 
Revenues:                                                         
Product                                              $ 30,663     $ 21,671
Professional services                                3,189        3,647
Total revenues                                       33,852       25,318
                                                                 
Cost of revenues:                                                 
Product                                              9,212        6,822
Professional services                                3,848        3,789
Total cost of revenues                               13,060       10,611
Gross profit                                         20,792       14,707
                                                                 
Operating expenses:                                               
Research and development                             12,677       8,355
Sales and marketing                                  18,864       11,356
General and administrative                           5,866        3,802
Total operating expenses                             37,407       23,513
                                                                 
Loss from operations                                 (16,615)     (8,806)
                                                                 
Other income (expense), net:                                      
Interest income                                      69           14
Interest expense                                     (75)         (88)
Other, net                                           (4)          (45)
Total other income (expense), net                    (10)         (119)
                                                                 
Loss before provision for (benefit from) income      (16,625)     (8,925)
taxes
Provision for (benefit from) income taxes            (24)         24
Net loss                                             $ (16,601)   $ (8,949)
                                                                 
Basic and diluted net loss per share                 $ (0.25)     $ (0.15)
                                                                 
Shares used in basic and diluted per share           65,459       61,446
calculations




JIVE SOFTWARE, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                                     
                                          March 31, December 31,
                                          2013        2012
Assets                                                
                                                     
Current assets:                                       
Cash and cash equivalents                  $ 58,544   $ 48,955
Short-term marketable securities           85,293     96,492
Accounts receivable, net                   42,623     54,200
Prepaid expenses and other current assets  8,850      7,864
Total current assets                       195,310    207,511
                                                     
Marketable securities, noncurrent          29,657     22,607
Property and equipment, net                17,524     16,803
Goodwill                                   23,435     23,435
Intangible assets, net                     10,578     11,710
Other assets                               194        214
Total assets                               $ 276,698  $ 282,280
                                                     
Liabilities and Stockholders' Equity                  
                                                     
Current liabilities:                                  
Accounts payable                           $ 8,612    $ 9,557
Accrued payroll and related liabilities    5,099      7,357
Other accrued liabilities                  7,810      7,123
Deferred revenue, current                  90,186     87,698
Term debt, current                         2,400      2,400
Total current liabilities                  114,107    114,135
                                                     
Deferred revenue, less current portion     31,219     29,349
Term debt, less current portion            7,800      8,400
Other long-term liabilities                526        538
Total liabilities                          153,652    152,422
                                                     
Commitments and contingencies                         
                                                     
Stockholders' equity:                                 
Common stock                               7          7
Less treasury stock at cost                (3,352)    (3,352)
Additional paid-in capital                 295,104    285,332
Accumulated deficit                        (168,761)  (152,160)
Accumulated other comprehensive income     48         31
Total stockholders' equity                 123,046    129,858
Total liabilities and stockholders' equity $ 276,698  $ 282,280




JIVE SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
                                                                 
                                                    Quarter Ended March 31,
                                                    2013          2012
                                                                 
Cashflows from operating activities:                             
Net loss                                             $ (16,601)   $ (8,949)
Adjustments to reconcile net loss to net cash                     
provided by operating activities:
Depreciation and amortization                        3,257        2,218
Stock-based compensation                             6,139        3,085
(Increase) decrease in:                                           
Accounts receivable, net                             11,577       3,961
Prepaid expenses and other assets                    (404)        388
Increase (decrease) in:                                           
Accounts payable                                     (920)        1,634
Accrued payroll and related liabilities              (2,258)      (2,325)
Other accrued liabilities                            687          (845)
Deferred revenue                                     4,358        2,884
Other long-term liabilities                          (12)         1
Net cash provided by operating activities            5,823        2,052
                                                                 
Cash flows from investing activities:                             
Payments for purchase of property and equipment      (2,863)      (3,401)
Purchases of marketable securities                   (27,492)     (34,351)
Sales of marketable securities                       9,653        --
Maturities of marketable securities                  21,430       --
Net cash used in investing activities                728          (37,752)
                                                                 
Cash flows from financing activities:                             
Proceeds from exercise of stock options and          3,633        312
restricted stock
Payments of initial public offering expenses         --          (766)
Repayments of term loans                             (600)        (750)
Net cash provided by (used in) financing activities  3,033        (1,204)
                                                                 
Net decrease in cash and cash equivalents            9,584        (36,904)
Effect of exchange rate changes                      5            4
Cash and cash equivalents, beginning of period       48,955       180,649
Cash and cash equivalents, end of period             $ 58,544     $ 143,749




JIVE SOFTWARE, INC.
RECONCILIATION OF NON-GAAP INFORMATION
(In thousands, except per share data)
(Unaudited)
                                                                
                                                   Quarter Ended March 31,
                                                   2013          2012
                                                                
Gross profit, as reported                           $ 20,792     $ 14,707
Add back:                                                        
Stock-based compensation                            521          258
Amortization related to acquisitions                756          625
Gross profit, non-GAAP                              $ 22,069     $ 15,590
Gross margin, non-GAAP                              65%           62%
                                                   Quarter Ended March 31,
                                                   2013          2012
                                                                
Research and development,as reported               $ 12,677     $ 8,355
Less:                                                            
Stock-based compensation                            2,232        947
Amortization related to acquisitions                66           --
Research and development,non-GAAP                  $ 10,379     $ 7,408
As percentage of total revenues, non-GAAP           31%           29%
                                                   Quarter Ended March 31,
                                                   2013          2012
                                                                
Sales and marketing,as reported                    $ 18,864     $ 11,356
Less:                                                            
Stock-based compensation                            2,224        526
Amortization related to acquisitions                60           --
Sales and marketing,non-GAAP                       $ 16,580     $ 10,830
As percentage of total revenues, non-GAAP           49%           43%
                                                   Quarter Ended March 31,
                                                   2013          2012
                                                                
General and administrative,as reported             $ 5,866      $ 3,802
Less:                                                            
Stock-based compensation                            1,162        1,354
General and administrative,non-GAAP                $ 4,704      $ 2,448
As percentage of total revenues, non-GAAP           14%           10%
                                                   Quarter Ended March 31,
                                                   2013          2012
                                                                
Loss from operations, as reported                   $ (16,615)   $ (8,806)
Add back:                                                        
Stock-based compensation                            6,139        3,085
Amortization related to acquisitions                882          625
Loss from operations, non-GAAP                      $ (9,594)    $ (5,096)
                                                                
                                                   Quarter Ended March 31,
                                                   2013          2012
                                                                
Loss before provision for income taxes, as reported $ (16,625)   $ (8,925)
Add back:                                                        
Stock-based compensation                            6,139        3,085
Amortization related to acquisitions                882          625
Loss before provision for income taxes, non-GAAP    $ (9,604)    $ (5,215)
                                                                
                                                   Quarter Ended March 31,
                                                   2013          2012
                                                                
Net loss, as reported                               $ (16,601)   $ (8,949)
Add back:                                                        
Stock-based compensation                            6,139        3,085
Amortization related to acquisitions                882          625
Net loss, non-GAAP                                  $ (9,580)    $ (5,239)
                                                                
                                                   Quarter Ended March 31,
                                                   2013          2012
                                                                
Basic and diluted net loss per share, as reported   $ (0.25)     $ (0.15)
Add back:                                                        
Stock-based compensation                            0.09         0.05
Amortization related to acquisitions                0.01         0.01
Basic and diluted net loss per share, non-GAAP      $ (0.15)     $ (0.09)
                                                                
                                                   Quarter Ended March 31,
                                                   2013          2012
                                                                
Total revenues                                      $ 33,852     $ 25,318
Deferred revenue, end of period                     121,405      80,710
Less: Deferred revenue, beginning of period         (117,047)    (77,826)
Billings                                            $ 38,210     $ 28,202

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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