Jive Software Announces First Quarter 2014 Financial Results

Jive Software Announces First Quarter 2014 Financial Results

  *1Q total revenue of $41.0 million, up 21% year-over-year
  *1Q short-term billings of $42.1 million, up 16% year-over-year

PALO ALTO, Calif., May 6, 2014 (GLOBE NEWSWIRE) -- Jive Software, Inc.
(Nasdaq:JIVE), a leader in social business, today announced financial results
for its first quarter ended March 31, 2014.

"Jive delivered a strong start to the year with financial results that met or
exceeded the high end of our guidance range," stated Tony Zingale, Chairman &
CEO of Jive Software. "Customers continue to respond favorably to our more
refined go-to-market strategy, which targets the highest areas of value add
and ROI for social business platforms - portals, social intranets and external
communities."

Zingale added, "We delivered on an important milestone with the recent
announcement of our strategic relationship with Cisco that expands our
existing go-to-market footprint. Cisco and its channel partners will now
resell Jive solutions as a fully integrated component of the Cisco
collaboration family. We believe we are executing well against our overall
strategy and are increasingly well positioned to deliver accelerating growth
in the second half of 2014."

First Quarter 2014 Financial Highlights

  *Revenue: Total revenue for the first quarter was $41.0 million, an
    increase of 21% on a year-over-year basis. Within total revenue, product
    revenue was $37.4 million for the first quarter, an increase of 22% on a
    year-over-year basis. Professional Services revenue for the first quarter
    was $3.7 million, an increase of 15% on a year-over-year basis.
    
  *Non-GAAP Billings: Short-term billings, which Jive defines as revenue plus
    the change in short-term deferred revenue, were $42.1 million for the
    first quarter, an increase of 16% on a year-over-year basis. Total
    billings, which Jive defines as revenue plus the change in short and
    long-term deferred revenue, was $39.8 million, an increase of 4% on a
    year-over-year basis.
    
  *Gross Profit: GAAP gross profit for the first quarter was $25.6 million,
    compared to $20.8 million for the first quarter of 2013. Non-GAAP gross
    profit was $27.7 million for the first quarter, representing a
    year-over-year increase of 26% and a non-GAAP gross margin of 68%,
    representing a 300 basis point gross margin improvement compared to the
    first quarter of 2013.
    
  *Loss from Operations: GAAP loss from operations for the first quarter was
    $17.1 million, compared to a loss of $16.6 million for the first quarter
    of 2013. Non-GAAP loss from operations was $6.1 million for the first
    quarter, compared to a loss of $9.6 million for the first quarter of 2013.
    
  *Net Loss: GAAP net loss for the first quarter was $17.3 million, compared
    to a net loss of $16.6 million for the same period last year. GAAP net
    loss per share for the first quarter was $0.25 based on 69.3 million
    weighted-average shares outstanding, compared to a net loss per share of
    $0.25 based on 65.5 million weighted-average shares outstanding for the
    same period last year.
    
    Non-GAAP net loss for the first quarter was $6.3 million, compared to a
    net loss of $9.6 million for the same period last year. Non-GAAP net loss
    per share for the first quarter was $0.09 based on 69.3 million
    weighted-average shares outstanding, compared to net a loss per share of
    $0.15 based on 65.5 million weighted-average shares outstanding for the
    same period last year.
    
  *Balance Sheet and Cash Flow: As of March 31, 2014, Jive had cash and cash
    equivalents and marketable securities of $139.3 million, a decrease of
    $2.4 million from $141.7 million at the end of the fourth quarter.
    
    The company generated $1.9 million in cash from operations and invested
    $3.6 million in capital expenditures, leading to free cash flow of
    negative $1.7 million for the first quarter.Free cash flow was $3.0
    million for the first quarter of 2013.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: ARaymond
    Network, David Yurman, Esri, FireEye, Globe Telecom, Kimberly Clark,
    Leidos, MUFG Americas Union Bank, Plex Systems, Sky Deutschland AG,
    Société Générale, the San Francisco Giants, and Verizon, among others.
    
  *Announced a relationship with Cisco that combines Jive's industry-leading
    enterprise collaboration and communication platform with Cisco's real-time
    technologies like WebEx and Jabber.Cisco and its partner network will now
    resell Jive solutions as a fully integrated component of the Cisco
    collaboration family.
    
  *Introduced a new iPad app for Producteev by Jive, which complements the
    existing offerings for MacOS, iPhone and Android devices. Producteev Pro,
    a premium version of Producteev which provides deeper integration with
    Microsoft Outlook, was also made available.

Financial Outlook

As of May 6, 2014, Jive is initiating guidance for its second quarter 2014 and
updating guidance for the full year 2014, as follows:

  *Second Quarter 2014 Guidance: Total revenue is expected to be in the range
    of $41.5 million to $42.5 million. Non-GAAP loss from operations is
    expected to be in the range of $7.1 million to $8.1 million. Non-GAAP net
    loss per share is expected to be in the range of $0.10 to $0.12 based on
    approximately 70.3 million weighted-average diluted shares outstanding.
    
  *Full Year 2014 Guidance: Total revenue is expected to be in the range of
    $171.0 million to $176.0 million. Non-GAAP loss from operations is
    expected to be in the range of $26.0 million to $30.0 million. Non-GAAP
    net loss per share is expected to be in the range of $0.38 to $0.45 based
    on approximately 70.7 million weighted-average diluted shares
    outstanding. Free cash flow is expected to be in the range of negative
    $15.0 million to negative $20.0 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 net
loss per share to GAAP loss from operations and GAAP net loss per share
because the Company does not provide guidance for stock-based compensation,
income taxes or amortization of intangible assets, which are reconciling items
between those Non-GAAP and GAAP measures. As items that impact loss from
operations and loss per share are out of the Company's control and/or cannot
be reasonably predicted, the Company is unable to provide such guidance.
Accordingly, a reconciliation to loss from operations and net loss per share
is not available without unreasonable effort.

Quarterly Conference Call

Jive will host a conference call today at 2:00 p.m. PT (5:00 p.m. ET) to
review the company's financial results for the first quarter 2014, in addition
to discussing the company's outlook for the second quarter and full year 2014.
To access this call, dial (888) 747-4666 (domestic) or (913) 312-1453
(international) with conference ID 6067725.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 13, 2014, by dialing (877)
870-5176 (domestic) or (858) 384-5517 (international). The replay pass code is
6067725.

About Jive Software

Jive (Nasdaq:JIVE) is the communication and collaboration platform for modern,
mobile business. Recognized as a leader in social business by the industry's
top analyst firms, Jive's cloud-based platform connects employees, customers
and partners– transforming the way work gets done and unleashing
productivity, creativity and innovation for millions of people inthe world's
largest businesses. More information can be found atwww.jivesoftware.comor
the Jive News Bloghere.

Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures in this release.
Generally, a non-GAAP financial measure is a numerical measure of a company's
performance, financial position or cash flows that either excludes or includes
amounts that are not normally excluded or included in the most directly
comparable measure calculated and presented in accordance with generally
accepted accounting principles.

Non-GAAP gross profit, loss from operations, net loss and net loss per share
exclude stock-based compensation expenses and amortization of acquisition
related intangible assets. Total billings is defined by the Company as revenue
plus the change in total deferred revenue. Short-term billings is defined as
revenue plus the change in short-term deferred revenue.Management presents
these non-GAAP financial measures because it considers them to be important
supplemental measures of performance. Management uses the non-GAAP financial
measures for planning purposes, including analysis of the Company's
performance against prior periods, the preparation of operating budgets and to
determine appropriate levels of operating and capital investments. Management
also believes that the non-GAAP financial measures provide additional insight
for analysts and investors in evaluating the Company's financial and
operational performance. However, these non-GAAP financial measures have
limitations as an analytical tool and are not intended to be an alternative to
financial measures prepared in accordance with GAAP. We intend to provide
these non-GAAP financial measures as part of our future earnings discussions
and, therefore, the inclusion of these non-GAAP financial measures will
provide consistency in our financial reporting. A reconciliation of these
non-GAAP measures to GAAP is provided in the accompanying tables.

Safe Harbor Statement

"Safe Harbor" statement under Private Securities Litigation Reform Act of
1995: This press release contains forward-looking statements, including
statements concerning our financial guidance for the second fiscal quarter of
2014 and the full year of 2014, the future growth of the social business
market, and our belief that we are well positioned to build upon our momentum
in 2014. The achievement of success in the matters covered by such
forward-looking statements involves substantial risks, uncertainties and
assumptions. If any such risks or uncertainties materialize or if any of the
assumptions prove incorrect, our results or events could differ materially
from the results expressed or implied by the forward-looking statements we
make.

The risk and uncertainties referred to above include, but are not limited to,
risks associated with our limited operating history; expectations regarding
the benefits of our relationship with Cisco; expectations regarding the
widespread adoption of social business platforms by enterprises; uncertainty
regarding the market for social business platforms; changes in the competitive
dynamics of our market; our ability to increase and predict new subscription;
subscription renewal or upsell rates and the impact these rates may have on
our future revenues; our reliance on our own controls and third-party service
providers to host some of our products; the risk that our security measures
could be breached and unauthorized access to customer data could be obtained;
potential third party intellectual property infringement claims; and the price
volatility of our common stock.

More information about potential factors that could affect our business and
financial results is contained in our prospectus as filed with the 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)
                                                                 
                                                      Three Months Ended
                                                       March 31,
                                                      2014        2013
                                                                 
Revenues:                                                         
Product                                               $37,377   $30,663
Professional services                                 3,652      3,189
Total revenues                                        41,029     33,852
                                                                 
Cost of revenues:                                                 
Product                                               9,921      9,212
Professional services                                 5,534      3,848
Total cost of revenues                                15,455     13,060
Gross profit                                           25,574     20,792
                                                                 
Operating expenses:                                               
Research and development                             12,897     12,677
Sales and marketing                                  23,501     18,864
General and administrative                            6,319      5,866
Total operating expenses                              42,717     37,407
                                                                 
Loss from operations                                   (17,143)   (16,615)
                                                                 
Other income (expense), net:                                      
Interest income                                       41         69
Interest expense                                      (83)       (75)
Other, net                                            (10)       (4)
Total other income (expense), net                     (52)       (10)
                                                                 
Loss before provision for (benefit from) income taxes  (17,195)   (16,625)
Provision for (benefit from) income taxes              129        (24)
Net loss                                               $(17,324) $(16,601)
                                                                 
Basic and diluted net loss per share                   $(0.25)   $(0.25)
                                                                 
Shares used in basic and diluted per share             69,330     65,459
calculations

                                                                
                                                                
JIVE SOFTWARE, INC.
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
                                                                
                                                      March 31,  December 31,
                                                       2014       2013
                                                                
Assets                                                           
Current Assets:                                                  
Cash and cash equivalents                             $41,725  $38,415
Short-term marketable securities                      71,916    69,809
Accounts receivable, net of allowances                48,147    58,829
Prepaid expenses and other current assets             10,480    9,425
Total current assets                                  172,268   176,478
                                                                
Marketable securities, noncurrent                      25,616    33,443
Property and equipment, net of accumulated             21,969    21,379
depreciation
Goodwill                                               29,753    29,753
Intangible assets, net of accumulated amortization     13,081    14,310
Other assets                                          563       572
Total assets                                          $263,250 $275,935
                                                                
Liabilities and Stockholders' Equity                             
Current Liabilities:                                             
Accounts payable                                      $3,531   $6,412
Accrued payroll and related liabilities               7,723     7,469
Other accrued liabilities                             7,075     8,478
Deferred revenue, current                             113,454   112,432
Term debt, current                                    2,400     2,400
Total current liabilities                             134,183   137,191
                                                                
Deferred revenue, less current portion                 32,696    34,905
Term debt, less current portion                        5,400     6,000
Other long-term liabilities                            1,007     1,605
Total liabilities                                     173,286   179,701
                                                                
Commitments and contingencies                                    
                                                                
Stockholders' Equity:                                            
Common stock                                          7         7
Less treasury stock at cost                           (3,352)   (3,352)
Additional paid-in capital                            337,885   326,834
Accumulated deficit                                   (244,855) (227,531)
Accumulated other comprehensive income                279       276
Total stockholders' equity                            89,964    96,234
Total liabilities and stockholders' equity            $263,250 $275,935

                                                                 
                                                                 
JIVE SOFTWARE, INC.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
                                                                 
                                                                 
                                                      Three Months Ended
                                                       March 31,
                                                      2014      2013
                                                                 
Cashflows from operating activities:                             
Net loss                                              $ (17,324) $ (16,601)
Adjustments to reconcile net loss to net cash                    
provided by operating activities:
Depreciation and amortization                         3,982      3,257
Stock-based compensation                              9,817      6,139
Change in deferred taxes                              32         --
(Increase) decrease in:                                          
Accounts receivable, net                              10,682     11,577
Prepaid expenses and other assets                     (1,091)    (404)
Increase (decrease) in:                                          
Accounts payable                                      (2,461)    (920)
Accrued payroll and related liabilities               253        (2,258)
Other accrued liabilities                             (761)      687
Deferred revenue                                      (1,187)    4,358
Other long-term liabilities                           (53)       (12)
Net cash provided by operating activities             1,889      5,823
                                                                 
Cash flows from investing activities:                             
Payments for purchase of property and equipment       (3,632)    (2,863)
Purchases of marketable securities                    (18,634)   (27,492)
Sales of marketable securities                        3,500      9,653
Maturities of marketable securities                   20,567     21,430
Net cash provided by investing activities             1,801      728
                                                                 
Cash flows from financing activities:                             
Proceeds from exercise of stock options              1,048      3,633
Taxes paid related to net share settlement of equity  (254)      --
awards
Repayments of term loans                              (600)      (600)
Earnout payment for prior acquisition                 (576)      --
Net cash provided by (used in) financing activities   (382)      3,033
                                                                 
Net increase in cash and cash equivalents              3,308      9,584
Effect of exchange rate changes                        2          5
Cash and cash equivalents, beginning of period         38,415     48,955
Cash and cash equivalents, end of period               $41,725   $58,544

                                                              
JIVE SOFTWARE, INC.
Reconciliation of Non-GAAP Information
(In thousands, except per share data)
(Unaudited)
                                                              
                                               Three Months Ended March 31,
                                               2014            2013
                                                              
Gross profit, as reported                       $25,574       $20,792
Add back:                                                      
Stock-based compensation                       1,170          521
Amortization related to acquisitions           972            756
Gross profit, non-GAAP                          $27,716       $22,069
Gross margin, non-GAAP                          68%             65%
                                                              
                                               Three Months Ended March 31,
                                               2014            2013
                                                              
Research and development,as reported           $12,897       $12,677
less:                                                          
Stock-based compensation                       2,980          2,232
Amortization related to acquisitions           127            66
Research and development,non-GAAP             $9,790        $10,379
As percentage of total revenues, non-GAAP       24%             31%
                                                              
                                               Three Months Ended March 31,
                                               2014            2013
                                                              
Sales and marketing,as reported                $23,501       $18,864
less:                                                          
Stock-based compensation                       3,742          2,224
Amortization related to acquisitions           129            60
Sales and marketing,non-GAAP                  $19,630       $16,580
As percentage of total revenues, non-GAAP       48%             49%
                                                              
                                               Three Months Ended March 31,
                                               2014            2013
                                                              
General and administrative,as reported         $6,319        $5,866
less:                                                          
Stock-based compensation                       1,925          1,162
General and administrative,non-GAAP           $4,394        $4,704
As percentage of total revenues, non-GAAP       11%             14%
                                                              
                                               Three Months Ended March 31,
                                               2014            2013
                                                              
Loss from operations, as reported               $(17,143)     $(16,615)
Add back:                                                      
Stock-based compensation                       9,817          6,139
Amortization related to acquisitions           1,228          882
Loss from operations, non-GAAP                  $(6,098)      $(9,594)
                                                              
                                               Three Months Ended March 31,
                                               2014            2013
                                                              
Loss before provision for (benefit from) income $(17,195)     $(16,625)
taxes, as reported
Add back:                                                      
Stock-based compensation                       9,817          6,139
Amortization related to acquisitions           1,228          882
Loss before provision for (benefit from) income $(6,150)      $(9,604)
taxes, non-GAAP
                                                              
                                               Three Months Ended March 31,
                                               2014            2013
                                                              
Net loss, as reported                           $(17,324)     $(16,601)
Add back:                                                      
Stock-based compensation                       9,817          6,139
Amortization related to acquisitions           1,228          882
Net loss, non-GAAP                              $(6,279)      $(9,580)
                                                              
                                               Three Months Ended March 31,
                                               2014            2013
                                                              
Basic and diluted net loss per share, as        $(0.25)       $(0.25)
reported
Add back:                                                      
Stock-based compensation                       0.14           0.09
Amortization related to acquisitions           0.02           0.01
Basic and diluted net loss per share, non-GAAP  $(0.09)       $(0.15)
                                                              
                                               Three Months Ended March 31,
                                               2014            2013
                                                              
Total revenues                                  $41,029       $33,852
Deferred revenue, current, end of period        113,454        90,186
Less: Deferred revenue, current, beginning of   (112,432)      (87,698)
period
Short-term billings                             $42,051       $36,340
                                                              
                                               Three Months Ended March 31,
                                               2014            2013
                                                              
Total revenues                                  $41,029       $33,852
Deferred revenue, end of period                 146,150        121,405
Less: Deferred revenue, beginning of period     (147,337)      (117,047)
Total Billings                                  $39,842       $38,210

CONTACT: Investor Contact:
         Brian Denyeau
         ICR
         (646) 277-1251
         brian.denyeau@icrinc.com
        
         Media Contact:
         Samantha Moore
         Jive Software
         (408) 712-0612
         samantha.moore@jivesoftware.com

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