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Jive Software Announces Second Quarter 2013 Financial Results

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 Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
     
  June 30, 2013 December 31, 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 depreciation  18,693  16,803
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 June 30,   Six Months Ended June 30, 
  2013 2012 2013 2012
         
Cash flows 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 assets  (605)  (764)  (1,009)  (376)
 Increase (decrease), net of acquisitions, in:        
 Accounts payable  565  (1,468)  (355)  166
 Accrued payroll and related liabilities  295  1,539  (1,963)  (786)
 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 operating activities  214  1,144  6,037  3,196
         
Cash flows from investing activities:        
 Payments for purchase of property and equipment  (1,926)  (2,512)  (4,789)  (5,913)
 Purchases of marketable securities  (31,288)  (31,497)  (58,780)  (65,848)
 Sales of marketable securities  14,068  --   23,721  -- 
 Maturities of marketable securities  20,900  --   42,330  -- 
 Acquisitions, net of cash acquired  (11,047)  --   (11,047)  -- 
 Net cash used in investing activities  (9,293)  (34,009)  (8,565)  (71,761)
         
Cash flows from financing activities:        
 Proceeds from exercise of stock options  1,708  557  5,341  869
 Taxes paid related to net share settlement of equity awards  (392)  --   (392)  -- 
 Payments of initial public offering expenses  --   (248)  --   (1,014)
 Repayments of term loans  (600)  (500)  (1,200)  (1,250)
 Net cash provided by (used in) financing activities  716  (191)  3,749  (1,395)
         
Net increase (decrease) in cash and cash equivalents  (8,363)  (33,056)  1,221  (69,960)
Effect of exchange rate changes  7  (7)  12  (3)
Cash and cash equivalents, beginning of period  58,544  143,749  48,955  180,649
Cash and cash equivalents, end of period  $ 50,188  $110,686  $ 50,188  $110,686
         
JIVE SOFTWARE, INC.
RECONCILIATION OF NON-GAAP INFORMATION
(In thousands, except per share data)
(Unaudited)
         
   Three Months Ended June 30,   Six Months Ended June 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 acquisitions  926  620  1,682  1,245
 Non-recurring acquisition expense  250  --   250  -- 
Gross profit, non-GAAP  $ 23,440  $ 17,171  $ 45,509  $ 32,761
Gross margin, non-GAAP 67% 64% 66% 63%
         
   Three Months Ended June 30,   Six Months Ended June 30, 
  2013 2012 2013 2012
         
Research and development, as reported  $ 13,749  $ 9,127  $ 26,426  $ 17,482
less:        
 Stock-based compensation  3,395  1,533  5,627  2,480
 Amortization related to acquisitions  110  --   176  -- 
 Non-recurring acquisition expense  19  --   19  -- 
 Research and development, non-GAAP  $ 10,225  $ 7,594  $ 20,604  $ 15,002
As percentage of total revenues, non-GAAP 29% 28% 30% 29%
         
   Three Months Ended June 30,   Six Months Ended June 30, 
  2013 2012 2013 2012
         
Sales and marketing, as reported  $ 20,480  $ 14,581  $ 39,344  $ 25,937
less:        
 Stock-based compensation  2,405  928  4,629  1,454
 Amortization related to acquisitions  115  --   175  -- 
 Sales and marketing, non-GAAP  $ 17,960  $ 13,653  $ 34,540  $ 24,483
As percentage of total revenues, non-GAAP 51% 51% 50% 47%
         
   Three Months Ended June 30,   Six Months Ended June 30, 
  2013 2012 2013 2012
         
General and administrative, as reported  $ 6,081  $ 3,751  $ 11,947  $ 7,553
less:        
 Stock-based compensation  1,673  1,175  2,835  2,529
 General and administrative, non-GAAP  $ 4,408  $ 2,576  $ 9,112  $ 5,024
As percentage of total revenues, non-GAAP 13% 10% 13% 10%
         
   Three Months Ended June 30,   Six Months Ended June 30, 
  2013 2012 2013 2012
         
Loss from operations, as reported  $ (18,823)  $ (11,436)  $ (35,438)  $ (20,242)
Add back:        
 Stock-based compensation  8,250  4,164  14,389  7,249
 Amortization related to acquisitions  1,151  620  2,033  1,245
 Non-recurring acquisition expense  269  --   269  -- 
Loss from operations, non-GAAP  $ (9,153)  $ (6,652)  $ (18,747)  $ (11,748)
         
         
   Three Months Ended June 30,   Six Months Ended June 30, 
  2013 2012 2013 2012
         
Loss before provision for (benefit from) income taxes, as reported  $ (18,971)  $ (11,535)  $ (35,596)  $ (20,460)
Add back:        
 Stock-based compensation  8,250  4,164  14,389  7,249
 Amortization related to acquisitions  1,151  620  2,033  1,245
 Non-recurring acquisition expense  269  --   269  -- 
Loss before provision for (benefit from) income taxes, non-GAAP  $ (9,301)  $ (6,751)  $ (18,905)  $ (11,966)
         
   Three Months Ended June 30,   Six Months Ended June 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 acquisitions  1,151  620  2,033  1,245
 Non-recurring acquisition expense  269  --   269  -- 
 Tax benefit related to acquisitions  (1,351)  --   (1,351)  -- 
Net loss, non-GAAP  $ (9,461)  $ (6,841)  $ (19,041)  $ (12,080)
         
   Three Months Ended June 30,   Six Months Ended June 30, 
  2013 2012 2013 2012
         
Basic and diluted net loss per share, as reported  $ (0.27)  $ (0.19)  $ (0.52)  $ (0.33)
Add back:        
 Stock-based compensation  0.13  0.07  0.22  0.12
 Amortization related to acquisitions  0.02  0.01  0.03  0.02
 Non-recurring acquisition expense  --   --   --   -- 
 Tax benefit related to acquisitions  (0.02)  --   (0.02)  -- 
Basic and diluted net loss per share, non-GAAP  $ (0.14)  $ (0.11)  $ (0.29)  $ (0.20)
         
   Three Months Ended June 30,   Six Months Ended June 30, 
  2013 2012 2013 2012
         
Total revenues  $ 35,242  $ 26,950  $ 69,094  $ 52,268
Deferred revenue, end of period  128,115  87,482  128,115  87,482
Less: Deferred revenue, beginning of period  (121,405)  (80,710)  (117,047)  (77,826)
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

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