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.
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 in the world's largest businesses. More information can be found at www.jivesoftware.com or the Jive News Blog here.
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.
CONTACT: Investor Contact: