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Jive Software Announces Third Quarter 2013 Financial Results

Stocks in this article: JIVE

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 subscriptions; 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. 

The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Quarterly Report on Form 10-Q for the three months ended June 30, 2013, filed with the Securities and Exchange Commission on July 31, 2013. We do not intend and undertake no duty to publicly release 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 September 30,   For the Nine Months Ended September 30, 
  2013 2012 2013 2012
         
Revenues:        
 Product  $ 33,456  $ 25,861  $ 95,678  $ 71,436
 Professional services  3,903  3,012  10,775  9,705
 Total revenues  37,359  28,873  106,453  81,141
         
Cost of revenues:        
 Product  9,034  7,788  27,786  21,745
 Professional services  4,851  3,474  12,914  11,055
 Total cost of revenues  13,885  11,262  40,700  32,800
Gross profit  23,474  17,611  65,753  48,341
         
Operating expenses:        
 Research and development   14,957  9,845  41,383  27,327
 Sales and marketing   20,804  14,800  60,148  40,737
 General and administrative  6,202  4,127  18,149  11,680
 Total operating expenses  41,963  28,772  119,680  79,744
         
Loss from operations  (18,489)  (11,161)  (53,927)  (31,403)
         
Other income (expense), net:        
 Interest income  53  56  184  116
 Interest expense  (54)  (93)  (234)  (325)
 Other, net  (186)  42  (295)  (4)
 Total other income (expense), net  (187)  5  (345)  (213)
         
Loss before provision for (benefit from) from income taxes  (18,676)  (11,156)  (54,272)  (31,616)
Provision for (benefit from) for income taxes  29  132  (1,186)  246
Net loss  $ (18,705)  $ (11,288)  $ (53,086)  $ (31,862)
         
Basic and diluted net loss per share  $ (0.27)  $ (0.18)  $ (0.79)  $ (0.51)
         
Shares used in basic and diluted per share calculations  68,167  62,921  66,913  62,100
     
     
JIVE SOFTWARE, INC.
Consolidated Balance Sheets
(In thousands, except share and per share data)
(Unaudited)
     
  September 30, 2013 December 31, 2012
     
Assets    
Current Assets:    
 Cash and cash equivalents  $ 42,606  $ 48,955
 Short-term marketable securities  73,444  96,492
 Accounts receivable, net of allowances  40,037  54,200
 Prepaid expenses and other current assets  10,670  7,864
 Total current assets  166,757  207,511
     
Marketable securities, noncurrent  35,990  22,607
Property and equipment, net of accumulated depreciation  19,978  16,803
Goodwill  29,753  23,435
Intangible assets, net of accumulated amortization  15,536  11,710
Other assets   589  214
 Total assets  $ 268,603  $ 282,280
     
Liabilities and Stockholders' Equity    
Current Liabilities:    
 Accounts payable  $ 10,438  $ 9,557
 Accrued payroll and related liabilities  5,271  7,357
 Other accrued liabilities  6,635  7,123
 Deferred revenue, current  98,602  87,698
 Term debt, current  2,400  2,400
 Total current liabilities  123,346  114,135
     
Deferred revenue, less current portion  29,142  29,349
Term debt, less current portion  6,600  8,400
Other long-term liabilities  1,310  538
 Total liabilities  160,398  152,422
     
Commitments and contingencies    
     
Stockholders' Equity:    
 Common stock  7  7
 Less treasury stock at cost  (3,352)  (3,352)
 Additional paid-in capital  316,554  285,332
 Accumulated deficit  (205,246)  (152,160)
 Accumulated other comprehensive income  242  31
 Total stockholders' equity  108,205  129,858
 Total liabilities and stockholders' equity  $ 268,603  $ 282,280
         
         
JIVE SOFTWARE, INC.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
         
   Three Months Ended September 30,   Nine Months Ended September 30, 
  2013 2012 2013 2012
         
Cash flows from operating activities:        
 Net loss  $ (18,705)  $ (11,288)  $ (53,086)  $ (31,862)
 Adjustments to reconcile net loss to net cash provided by operating activities:      
 Depreciation and amortization  4,015  2,567  11,802  7,170
 Stock-based compensation  10,119  5,028  24,508  12,277
 Change in deferred taxes  --   --   (1,351)  -- 
 (Increase) decrease, net of acquisitions, in:        
 Accounts receivable, net  2,451  (6,856)  14,163  (3,876)
 Prepaid expenses and other assets  (1,707)  (1,916)  (2,716)  (2,292)
 Increase (decrease), net of acquisitions, in:        
 Accounts payable  22  3,956  (333)  4,122
 Accrued payroll and related liabilities  (16)  (190)  (1,979)  (976)
 Other accrued liabilities  (726)  180  (626)  56
 Deferred revenue  (371)  10,072  10,697  19,728
 Other long-term liabilities  156  3  196  405
 Net cash provided by operating activities  (4,762)  1,556  1,275  4,752
         
Cash flows from investing activities:        
 Payments for purchase of property and equipment  (4,000)  (3,476)  (8,789)  (9,389)
 Purchases of marketable securities  (26,905)  (53,551)  (85,685)  (119,399)
 Sales of marketable securities  5,812  --   29,533  -- 
 Maturities of marketable securities  22,025  --   64,355  -- 
 Acquisitions, net of cash acquired  --   --   (11,047)  -- 
 Net cash used in investing activities  (3,068)  (57,027)  (11,633)  (128,788)
         
Cash flows from financing activities:        
 Proceeds from exercise of stock options  1,250  2,855  6,591  3,724
 Taxes paid related to net share settlement of equity awards  (362)  --   (754)  -- 
 Payments of initial public offering expenses  --     --   (1,014)
 Repayments of term loans  (600)  (600)  (1,800)  (1,850)
 Net cash provided by (used in) financing activities  288  2,255  4,037  860
         
Net increase (decrease) in cash and cash equivalents  (7,542)  (53,216)  (6,321)  (123,176)
Effect of exchange rate changes  (40)  2  (28)  (1)
Cash and cash equivalents, beginning of period  50,188  110,686  48,955  180,649
Cash and cash equivalents, end of period  $ 42,606  $ 57,472  $ 42,606  $ 57,472
         
         
JIVE SOFTWARE, INC.
RECONCILIATION OF NON-GAAP INFORMATION
(In thousands, except per share data)
(Unaudited)
         
   Three Months Ended September 30,   Nine Months Ended September 30, 
  2013 2012 2013 2012
         
Gross profit, as reported  $ 23,474  $ 17,611  $ 65,753  $ 48,341
Add back:        
 Stock-based compensation  991  627  2,289  1,413
 Amortization related to acquisitions  972  614  2,654  1,859
 Non-recurring acquisition expense  --   --   250  -- 
Gross profit, non-GAAP  $ 25,437  $ 18,852  $ 70,946  $ 51,613
Gross margin, non-GAAP 68% 65% 67% 64%
         
   Three Months Ended September 30,   Nine Months Ended September 30, 
  2013 2012 2013 2012
         
Research and development, as reported  $ 14,957  $ 9,845  $ 41,383  $ 27,327
less:        
 Stock-based compensation  4,263  1,705  9,890  4,185
 Amortization related to acquisitions  127  --   303  -- 
 Non-recurring acquisition expense  31  --   50  -- 
 Research and development, non-GAAP  $ 10,536  $ 8,140  $ 31,140  $ 23,142
As percentage of total revenues, non-GAAP 28% 28% 29% 29%
         
   Three Months Ended September 30,   Nine Months Ended September 30, 
  2013 2012 2013 2012
         
Sales and marketing, as reported  $ 20,804  $ 14,800  $ 60,148  $ 40,737
less:        
 Stock-based compensation  2,910  1,436  7,539  2,890
 Amortization related to acquisitions  129  --   304  -- 
 Sales and marketing, non-GAAP  $ 17,765  $ 13,364  $ 52,305  $ 37,847
As percentage of total revenues, non-GAAP 48% 46% 49% 47%
         
   Three Months Ended September 30,   Nine Months Ended September 30, 
  2013 2012 2013 2012
         
General and administrative, as reported  $ 6,202  $ 4,127  $ 18,149  $ 11,680
less:        
 Stock-based compensation  1,955  1,260  4,790  3,789
 General and administrative, non-GAAP  $ 4,247  $ 2,867  $ 13,359  $ 7,891
As percentage of total revenues, non-GAAP 11% 10% 13% 10%
         
   Three Months Ended September 30,   Nine Months Ended September 30, 
  2013 2012 2013 2012
         
Loss from operations, as reported  $ (18,489)  $ (11,161)  $ (53,927)  $ (31,403)
Add back:        
 Stock-based compensation  10,119  5,028  24,508  12,277
 Amortization related to acquisitions  1,228  614  3,261  1,859
 Non-recurring acquisition expense  31  --   300  -- 
Loss from operations, non-GAAP  $ (7,111)  $ (5,519)  $ (25,858)  $ (17,267)
         
         
   Three Months Ended September 30,   Nine Months Ended September 30, 
  2013 2012 2013 2012
         
Loss before provision for (benefit from) income taxes, as reported  $ (18,676)  $ (11,156)  $ (54,272)  $ (31,616)
Add back:        
 Stock-based compensation  10,119  5,028  24,508  12,277
 Amortization related to acquisitions  1,228  614  3,261  1,859
 Non-recurring acquisition expense  31  --   300  -- 
Loss before provision for (benefit from) income taxes, non-GAAP  $ (7,298)  $ (5,514)  $ (26,203)  $ (17,480)
         
   Three Months Ended September 30,   Nine Months Ended September 30, 
  2013 2012 2013 2012
         
Net loss, as reported  $ (18,705)  $ (11,288)  $ (53,086)  $ (31,862)
Add back:        
 Stock-based compensation  10,119  5,028  24,508  12,277
 Amortization related to acquisitions  1,228  614  3,261  1,859
 Non-recurring acquisition expense  31  --   300  -- 
 Tax benefit related to acquisitions  --   --   (1,351)  -- 
Net loss, non-GAAP  $ (7,327)  $ (5,646)  $ (26,368)  $ (17,726)
         
   Three Months Ended September 30,   Nine Months Ended September 30, 
  2013 2012 2013 2012
         
Basic and diluted net loss per share, as reported  $ (0.27)  $ (0.18)  $ (0.79)  $ (0.51)
Add back:        
 Stock-based compensation  0.15  0.08  0.37  0.19
 Amortization related to acquisitions  0.01  0.01  0.04  0.03
 Non-recurring acquisition expense  --   --   --   -- 
 Tax benefit related to acquisitions  --   --   (0.02)  -- 
Basic and diluted net loss per share, non-GAAP  $ (0.11)  $ (0.09)  $ (0.40)  $ (0.29)
         
   Three Months Ended September 30,   Nine Months Ended September 30, 
  2013 2012 2013 2012
         
Total revenues  $ 37,359  $ 28,873  $ 106,453  $ 81,141
Deferred revenue, end of period  127,744  97,554  127,744  97,554
Less: Deferred revenue, beginning of period  (128,115)  (87,482)  (117,047)  (77,826)
Billings  $ 36,988  $ 38,945  $ 117,150  $ 100,869
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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