"Jive generated solid third quarter results that exceeded the high end of our guidance range from both a revenue and profitability perspective," said
Finally, Zingale added, "I'd like to congratulate
Third Quarter 2014 Financial Highlights
Revenue: Total revenue for the third quarter was
$46.6 million, an increase of 25% on a year-over-year basis. Within total revenue, product revenue was $42.2 millionfor the third quarter, an increase of 26% on a year-over-year basis. Professional Services revenue for the third quarter was $4.4 million, an increase of 14% 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
$45.2 millionfor the third 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 $50.2 million, an increase of 36% on a year-over-year basis.
Gross Profit: GAAP gross profit for the third quarter was
$29.4 million, compared to $23.5 millionfor the third quarter of 2013. Non-GAAP gross profit was $31.3 millionfor the third quarter, representing a year-over-year increase of 23% and a non-GAAP gross margin of 67%.
Loss from Operations: GAAP loss from operations for the third quarter was
$12.1 million, compared to a loss of $18.5 millionfor the third quarter of 2013. Non-GAAP loss from operations was $2.7 millionfor the third quarter, compared to a loss of $7.1 millionfor the third quarter of 2013.
Net Loss: GAAP net loss for the third quarter was
$12.1 million, compared to a net loss of $18.7 millionfor the same period last year. GAAP net loss per share for the third quarter was $0.17based on 71.0 million weighted-average shares outstanding, compared to a net loss per share of $0.27based on 68.2 million weighted-average shares outstanding for the same period last year.
Non-GAAP net loss for the third quarter was
$2.7 million, compared to a net loss of $7.3 millionfor the same period last year. Non-GAAP net loss per share for the third quarter was $0.04based on 71.0 million weighted-average shares outstanding, compared to net a loss per share of $0.11based on 68.2 million weighted-average shares outstanding for the same period last year.
Balance Sheet and Cash Flow: As of
September 30, 2014, Jive had cash and cash equivalents and marketable securities of $129.1 million, a decrease of $10.1 millionfrom $139.2 millionat the end of the second quarter.
The company used
$7.7 millionin cash from operations and invested $1.3 millionin capital expenditures, leading to negative free cash flow of $9.0 millionfor the third quarter. Negative free cash flow was $8.8 millionfor the third 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."
Third Quarter 2014 and Recent Business Highlights
Tony Zingalewill retire as CEO and assume the position of Executive Chairman of the Board, effective November 10th. Elisa Steele, currently Executive Vice President of Marketing and Products, has been promoted to President of Jive, effective November 10, 2014. Ms. Steelehas also been appointed to the newly created Office of the CEOalso effective November 10th, which will also include long-time independent board member Bill Lanfri.
Signed new customers and expanded existing relationships, including: Barnes and Noble, BG Group, Burger King,
Carestream Health, Chesapeake Energy, Deutsche Lufthansa AG, Ellucian, HGST, Lebara Mobile, Marketo, Medidata Solutions, MGM Resorts, Silicon Valley Bank, Trinity Health, Thomson Reuters, United States Department of Veterans Affairs, and one of the largest life insurance companies in the United States, among others.
Introduced the newest release of its enterprise communication and collaboration platform, which extends Jive's ability to help bridge customers' hybrid cloud and on-premise IT environments by strengthening its integration with Google and Microsoft Office 365. The Fall cloud update introduces Jive Connector for Outlook Online, the first milestone in Jive's integration with Microsoft Office 365, as well as a new connector for Google Docs. The Jive Fall cloud release also strengthens support for diverse employee workstyles by adding new collaboration features across desktop and mobile devices, including both iPhone and Android phones.
Announced the Fall cloud release of its JiveX external community platform, which provides companies with more innovative ways to deepen customer and partner engagement. New features deliver more valuable insights to both community managers and participants with ROI-focused analytics, and drive stronger brand affinity with compelling interactions across both mobile and web experiences.
Recognized by Gartner, a leading analyst firm, as a leader in its 2014 "
Social Softwarein the Workplace" Magic Quadrant report. This is the sixth consecutive year Jive has been a leader in this Magic Quadrant report.
Recently hosted the sixth annual JiveWorld customer conference in
Las Vegas, the industry's largest event purely focused on social business. In attendance were more than 1,600 customers and partners, where industry leaders such as Mylan, FICO, UBS, Thomson Reuters and Schneider Electric among others, spoke about the proven business value companies can realize when deploying enterprise social networks and customer communities.
Fourth Quarter 2014 Guidance: Total revenue is expected to be in the range of
$46.5 millionto $47.5 million. Non-GAAP loss from operations is expected to be in the range of $5.5 millionto $7.5 million. Non-GAAP net loss per share is expected to be in the range of $0.09to $0.11based on approximately 71.7 million weighted-average diluted shares outstanding.
Full Year 2014 Guidance: Total revenue is expected to be in the range of
$177.5 millionto $178.5 million. Non-GAAP loss from operations is expected to be in the range of $18.7 millionto $20.7 million. Non-GAAP net loss per share is expected to be in the range of $0.28to $0.30based on approximately 70.6 million weighted-average diluted shares outstanding. Free cash flow is expected to be in the range of negative $15.0 millionto 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
Jive (Nasdaq:JIVE) is the leading provider of modern communication and collaboration solutions for business. Recognized as a leader by the industry's top analyst firms in multiple categories, Jive enables employees, partners and customers to work better together. More information can be found at www.jivesoftware.com or the Jive News Blog.
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 fourth fiscal quarter of 2014 and the full year of 2014, the future growth of the social business market, expectations regarding our executive transition, 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
CONTACT: Investor Contact:
Brian DenyeauICR (646) 277-1251 email@example.com Media Contact: Jason Khoury Jive Software(650) 847-8308 firstname.lastname@example.org
Source: Jive Software