CORRECTING and REPLACING -- Jive Software Announces Second Quarter 2013 Financial Results

CORRECTING and REPLACING -- Jive Software Announces Second Quarter 2013
Financial Results

PALO ALTO, Calif., July 30, 2013 (GLOBE NEWSWIRE) -- Please note that the
press release issued earlier today by Jive Software, Inc. (Nasdaq:JIVE) with
the same headline was incomplete. The full and complete release follows:

  *2Q total revenue of $35.2 million, up 31% year-over-year
  *2Q total billings of $42.0 million, up 24% year-over-year

Jive Software, Inc. (Nasdaq:JIVE), a leader in social business, today
announced financial results for its second quarter ended June 30, 2013.

"Our second quarter financial results met or exceeded our guidance on both the
top and bottom line. However, the evolution of the market toward the
mainstream buyer, combined with our go-to-market execution challenges, led to
longer than expected sales cycles at the end of the quarter," stated Tony
Zingale, Chairman & CEO of Jive. "Despite these challenges, we signed new blue
chip customers, expanded relationships with existing strategic customers and
led the market by delivering significant new product innovations."

Zingale added, "We continue to have a solid overall sales pipeline, market
leading solutions and a highly differentiated track record of delivering
business value to customers. While the move to mainstream buyers is not
without new challenges, we believe the reward for winning this opportunity
will be substantial. We expect the Company to deliver improved execution in
the second half of the year, and we believe that Jive is well positioned to be
the pure play winner in the social business market."

Second Quarter 2013 Financial Highlights

  *Revenue:Total revenue for the second quarter was $35.2 million, an
    increase of 31% on a year-over-year basis. Within total revenue, product
    revenue was $31.6 million for the second quarter, an increase of 32% on a
    year-over-year basis. Professional Services revenue for the second quarter
    was $3.7 million, an increase of 21% on a year-over-year basis.
    
  *Non-GAAP Billings: Total billings, which Jive defines as revenue plus the
    change in total deferred revenue, were $42.0 million for the second
    quarter, an increase of 24% on a year-over-year basis.
    
  *Gross Profit: GAAP gross profit for the second quarter was $21.5 million,
    compared to $16.0 million for the second quarter of 2012. Non-GAAP gross
    profit was $23.4 million for the second quarter, representing a
    year-over-year increase of 37%. Non-GAAP gross margin was 67%,
    representing a 300 basis point non-GAAP gross margin improvement compared
    to the second quarter of 2012.
    
  *Loss from Operations: GAAP loss from operations for the second quarter was
    $18.8 million,compared to a loss from operations of $11.4 million for the
    second quarter of 2012. Non-GAAP loss from operations was $9.2
    million,compared to a non-GAAP loss from operations of $6.7 million for
    the second quarter of 2012.
    
  *Net Loss:GAAP net loss for the second quarter was $17.8 million, compared
    to a net loss of $11.6 million for the same period last year. GAAP net
    loss per share for the second quarter was $0.27 based on 66.8 million
    weighted-average shares outstanding, compared to a loss per share of $0.19
    based on 61.9 million weighted-average shares outstanding for the same
    period last year.
    
    Non-GAAP net loss for the second quarter was $9.5 million, compared to a
    non-GAAP net loss of $6.8 million for the same period last year. Non-GAAP
    net loss per share for the second quarter was $0.14 based on 66.8 million
    weighted-average shares outstanding, compared to a non-GAAP net loss per
    share of $0.11 based on 61.9 million weighted-average shares outstanding
    for the same period last year.
    
  *Balance Sheet and Cash Flow: As of June 30, 2013, Jive had cash and cash
    equivalents and marketable securities of $160.9 million, compared to
    $173.5 million at the end of the first quarter. During the quarter, the
    Company used $11.0 million of cash to complete the acquisitions of
    StreamOnce and Clara.
    
    The Company generated $214,000 in cash from operations and invested $1.9
    million in capital expenditures, leading to free cash flow of ($1.7)
    million for the second quarter. Free cash flow was ($1.4) million for the
    second 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."

Second Quarter and Recent Business Highlights

  *Signed new and expanded customer relationships including ADEO Services,
    Allstate, eBay, FICO, Grant Thornton UK LLP, Massachusetts Higher
    Education Assistance Corp, La Capitale, Guardian Life Insurance, Siam
    Cement, and Swedish Partners Medical Group.
    
  *Announced the release of Jive StreamOnce, a new platform that allows
    people to seamlessly bring together all their business applications,
    including email, CRM systems, conversation streams, marketing productivity
    tools, document storage and data storage systems, into Jive.
    
  *Launched the latest version of Producteev by Jive, the leading social task
    management solution that allows individuals, teams, and now entire
    organizations to easily track and manage tasks for free.
    
  *Introduced a new suite of mobile apps, which include new iPad^®, iPhone^®
    and Android™ apps, that will provide people with a fast, convenient way to
    create content, find experts and answers, search for information and take
    action more effectively on the go, anywhere and anytime, all from their
    smartphones and tablets.

Financial Outlook

As of July 30, 2013, Jive is initiating guidance for its third quarter 2013
and adjusting guidance for the full year 2013, as follows:

  *Third Quarter 2013 Guidance: Total revenue is expected to be in the range
    of $36.0 million to $37.0 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 $0.14 to $0.16 based on
    approximately 67.0 million weighted-average diluted shares outstanding.
    
  *Full Year 2013 Guidance: Total revenue is expected to be in the range of
    $144.0 million to $146.0 million. Non-GAAP loss from operations is
    expected to be in the range of $38.0 million to $40.0 million. Non-GAAP
    loss per share is expected to be in the range of $0.59 to $0.62 based on
    approximately 66.7 million weighted-average diluted shares
    outstanding.Free cash flow is expected to be in the range of breakeven to
    a modest cash burn.

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 second quarter 2013, in
addition to discussing the Company's outlook for the third quarter and full
year 2013. To access this call, dial (866) 454-4209 (domestic) or (913)
312-0672 (international) with conference ID 5626120. 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 August 13, 2013,
by dialing (877) 870-5176 (domestic) or (858) 384-5517 (international). The
replay pass code is 5626120.

About Jive Software

Jive Software (Nasdaq:JIVE) is a leader in social business. Our cloud-based
collaboration platform connects employees, customers and partners together –
helping a companyincrease productivity by as much as 15%*according to
research performed by a top three global business consultancy firm. 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.

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, tax benefits derived from acquisitions, and amortization of
acquisition related intangible assets. Total billings are 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
2013 and the full year of 2013, the future growth of the social business
market, the shift in customer focus, our ability to achieve our guidance,
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 amounts)
(Unaudited)
                                                              
                      For the Three Months Ended For the Six Months Ended
                      June 30,                   June 30,
                      2013           2012          2013          2012
                                                              
Revenues:                                                      
Product               $31,559      $23,904     $62,222     $45,575
Professional services 3,683         3,046        6,872        6,693
Total revenues        35,242        26,950       69,094       52,268
                                                              
Cost of revenues:                                              
Product               9,540         7,135        18,752       13,957
Professional services 4,215         3,792        8,063        7,581
Total cost of         13,755        10,927       26,815       21,538
revenues
Gross profit           21,487        16,023       42,279       30,730
                                                              
Operating expenses:                                            
Research and          13,749        9,127        26,426       17,482
development
Sales and marketing  20,480        14,581       39,344       25,937
General and           6,081         3,751        11,947       7,553
administrative
Total operating       40,310        27,459       77,717       50,972
expenses
                                                              
Loss from operations   (18,823)      (11,436)     (35,438)     (20,242)
                                                              
Other income                                                   
(expense), net:
Interest income       62            46           131          60
Interest expense      (105)         (144)        (180)        (232)
Other, net            (105)         (1)          (109)        (46)
Total other income    (148)         (99)         (158)        (218)
(expense), net
                                                              
Loss before provision
for (benefit from)     (18,971)      (11,535)     (35,596)     (20,460)
income taxes
Provision for (benefit (1,191)       90           (1,215)      114
from) income taxes
Net loss               $(17,780)    $(11,625)   $(34,381)   $(20,574)
                                                              
Basic and diluted net  $(0.27)      $(0.19)     $(0.52)     $(0.33)
loss per share
                                                              
Shares used in basic
and diluted per share  66,816        61,924       66,285       61,685
calculations

                                                                
JIVE SOFTWARE, INC.
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
                                                                
                                                      June 30,   December 31,
                                                       2013       2012
                                                                
Assets                                                           
Current Assets:                                                  
Cash and cash equivalents                             $50,188  $48,955
Short-term marketable securities                      84,651    96,492
Accounts receivable, net of allowances                42,488    54,200
Prepaid expenses and other current assets             9,034     7,864
Total current assets                                  186,361   207,511
                                                                
Marketable securities, noncurrent                      26,068    22,607
Property and equipment, net of accumulated             18,693    16,803
depreciation
Goodwill                                               29,753    23,435
Intangible assets, net of accumulated amortization     16,764    11,710
Other assets                                          326       214
Total assets                                          $277,965 $282,280
                                                                
Liabilities and Stockholders' Equity                             
Current liabilities:                                             
Accounts payable                                      $10,669  $9,557
Accrued payroll and related liabilities               5,363     7,357
Other accrued liabilities                             7,377     7,123
Deferred revenue, current                             96,794    87,698
Term debt, current                                    2,400     2,400
Total current liabilities                             122,603   114,135
                                                                
Deferred revenue, less current portion                 31,321    29,349
Term debt, less current portion                        7,200     8,400
Other long-term liabilities                            1,154     538
Total liabilities                                     162,278   152,422
                                                                
Commitments and contingencies                                    
                                                                
Stockholders' Equity:                                            
Common stock                                          7         7
Less treasury stock at cost                           (3,352)   (3,352)
Additional paid-in capital                            305,527   285,332
Accumulated deficit                                   (186,541) (152,160)
Accumulated other comprehensive income                46        31
Total stockholders' equity                            115,687   129,858
Total liabilities and stockholders' equity            $277,965 $282,280

                                                               
JIVE SOFTWARE, INC.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
                                                               
                              Three Months Ended     Six Months Ended
                               June 30,               June 30,
                              2013        2012        2013        2012
                                                               
Cashflows from operating                                       
activities:
Net loss                      $ (17,780) $ (11,625) $ (34,381) $ (20,574)
Adjustments to reconcile net
loss to net cash provided by                         
operating activities:
Depreciation and amortization 4,530      2,385      7,787      4,603
Stock-based compensation      8,250      4,164      14,389     7,249
Change in deferred taxes      (1,351)    --        (1,351)    --
(Increase) decrease, net of                                    
acquisitions, in:
Accounts receivable, net      135        (981)      11,712     2,980
Prepaid expenses and other    (605)      (764)      (1,009)    (376)
assets
Increase (decrease), net of                                    
acquisitions, in:
Accounts payable              565        (1,468)    (355)      166
Accrued payroll and related   295        1,539      (1,963)    (786)
liabilities
Other accrued liabilities     (587)      721        100        (124)
Deferred revenue              6,710      6,772      11,068     9,656
Other long-term liabilities   52         401        40         402
Net cash provided by          214        1,144      6,037      3,196
operating activities
                                                               
Cash flows from investing                                       
activities:
Payments for purchase of      (1,926)    (2,512)    (4,789)    (5,913)
property and equipment
Purchases of marketable       (31,288)   (31,497)   (58,780)   (65,848)
securities
Sales of marketable           14,068     --        23,721     --
securities
Maturities of marketable      20,900     --        42,330     --
securities
Acquisitions, net of cash     (11,047)   --        (11,047)   --
acquired
Net cash used in investing    (9,293)    (34,009)   (8,565)    (71,761)
activities
                                                               
Cash flows from financing                                       
activities:
Proceeds from exercise of     1,708      557        5,341      869
stock options
Taxes paid related to net
share settlement of equity     (392)      --        (392)      --
awards
Payments of initial public    --        (248)      --        (1,014)
offering expenses
Repayments of term loans      (600)      (500)      (1,200)    (1,250)
Net cash provided by (used    716        (191)      3,749      (1,395)
in) financing activities
                                                               
Net increase (decrease) in     (8,363)    (33,056)   1,221      (69,960)
cash and cash equivalents
Effect of exchange rate        7          (7)        12         (3)
changes
Cash and cash equivalents,     58,544     143,749    48,955     180,649
beginning of period
Cash and cash equivalents, end $50,188   $110,686   $50,188   $110,686
of period

                                                               
JIVE SOFTWARE, INC.
RECONCILIATION OF NON-GAAP INFORMATION
(In thousands, except per share data)
(Unaudited)
                                                               
                             Three Months Ended June Six Months Ended June
                              30,                     30,
                             2013         2012        2013        2012
                                                               
Gross profit, as reported     $21,487    $16,023   $42,279   $30,730
Add back:                                                       
Stock-based compensation     777         528        1,298      786
Amortization related to      926         620        1,682      1,245
acquisitions
Non-recurring acquisition    250         --        250        --
expense
Gross profit, non-GAAP        $23,440    $17,171   $45,509   $32,761
Gross margin, non-GAAP        67%          64%         66%         63%
                                                               
                             Three Months Ended June Six Months Ended June
                              30,                     30,
                             2013         2012        2013        2012
                                                               
Research and development,as  $13,749    $9,127    $26,426   $17,482
reported
less:                                                           
Stock-based compensation     3,395       1,533      5,627      2,480
Amortization related to      110         --        176        --
acquisitions
Non-recurring acquisition    19          --        19         --
expense
Research and                 $10,225    $7,594    $20,604   $15,002
development,non-GAAP
As percentage of total        29%          28%         30%         29%
revenues, non-GAAP
                                                               
                             Three Months Ended June Six Months Ended June
                              30,                     30,
                             2013         2012        2013        2012
                                                               
Sales and marketing, as       $20,480    $14,581   $39,344   $25,937
reported
less:                                                           
Stock-based compensation     2,405       928        4,629      1,454
Amortization related to      115         --        175        --
acquisitions
Sales and                    $17,960    $13,653   $34,540   $24,483
marketing,non-GAAP
As percentage of total        51%          51%         50%         47%
revenues, non-GAAP
                                                               
                             Three Months Ended June Six Months Ended June
                              30,                     30,
                             2013         2012        2013        2012
                                                               
General and                   $6,081     $3,751    $11,947   $7,553
administrative,as reported
less:                                                           
Stock-based compensation     1,673       1,175      2,835      2,529
General and                  $4,408     $2,576    $9,112    $5,024
administrative,non-GAAP
As percentage of total        13%          10%         13%         10%
revenues, non-GAAP
                                                               
                             Three Months Ended June Six Months Ended June
                              30,                     30,
                             2013         2012        2013        2012
                                                               
Loss from operations, as      $(18,823)  $(11,436) $(35,438) $(20,242)
reported
Add back:                                                       
Stock-based compensation     8,250       4,164      14,389     7,249
Amortization related to      1,151       620        2,033      1,245
acquisitions
Non-recurring acquisition    269         --        269        --
expense
Loss from operations,         $(9,153)   $(6,652)  $(18,747) $(11,748)
non-GAAP
                                                               
                                                               
                             Three Months Ended June Six Months Ended June
                              30,                     30,
                             2013         2012        2013        2012
                                                               
Loss before provision for
(benefit from) income taxes,  $(18,971)  $(11,535) $(35,596) $(20,460)
as reported
Add back:                                                       
Stock-based compensation     8,250       4,164      14,389     7,249
Amortization related to      1,151       620        2,033      1,245
acquisitions
Non-recurring acquisition    269         --        269        --
expense
Loss before provision for
(benefit from) income taxes,  $(9,301)   $(6,751)  $(18,905) $(11,966)
non-GAAP
                                                               
                             Three Months Ended June Six Months Ended June
                              30,                     30,
                             2013         2012        2013        2012
                                                               
Net loss, as reported         $(17,780)  $(11,625) $(34,381) $(20,574)
Add back:                                                       
Stock-based compensation     8,250       4,164      14,389     7,249
Amortization related to      1,151       620        2,033      1,245
acquisitions
Non-recurring acquisition    269         --        269        --
expense
Tax benefit related to       (1,351)     --        (1,351)    --
acquisitions
Net loss, non-GAAP            $(9,461)   $(6,841)  $(19,041) $(12,080)
                                                               
                             Three Months Ended June Six Months Ended June
                              30,                     30,
                             2013         2012        2013        2012
                                                               
Basic and diluted net loss    $(0.27)    $(0.19)   $(0.52)   $(0.33)
per share, as reported
Add back:                                                       
Stock-based compensation     0.13        0.07       0.22       0.12
Amortization related to      0.02        0.01       0.03       0.02
acquisitions
Non-recurring acquisition    --         --        --        --
expense
Tax benefit related to       (0.02)      --        (0.02)     --
acquisitions
Basic and diluted net loss    $(0.14)    $(0.11)   $(0.29)   $(0.20)
per share, non-GAAP
                                                               
                             Three Months Ended June Six Months Ended June
                              30,                     30,
                             2013         2012        2013        2012
                                                               
Total revenues                $35,242    $26,950   $69,094   $52,268
Deferred revenue, end of      128,115     87,482     128,115    87,482
period
Less: Deferred revenue,       (121,405)   (80,710)   (117,047)  (77,826)
beginning of period
Billings                      $41,952    $33,722   $80,162   $61,924

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