NEW YORK (
shares were plummeting more than 16% to $14.32 in after-hours trading after the maker of social networks for businesses gave current-quarter and full-year guidance that came in softer than expected.
For the third-quarter, Jive expects to lose between 14 and 16 cents per share, with revenue forecast to be between $36 million and $37 million. Analysts were expecting a loss of 14 cents per share on $38.19 million in revenue.
The company gave full year guidance as well, expecting to lose between 59 cents and 62 cents per share. Revenue is forecast to be between $144 million and $146 million. The average analyst estimate calls for a loss of 58 cents per share on revenue of $150.27 million.
Despite the downbeat forecast, the company said it believes Jive is well positioned to be the pure play winner in the social business market.
"Our second-quarter financial results met or exceeded our guidance on both the top and bottom line," Tony Zingale, chairman and CEO of Jive explained in a statement. "However, the evolution of the market toward the mainstream buyer, combined with our go-to-market execution challenges, led to longer than expected sales cycles at the end of the quarter."
Jive reported second-quarter net loss of $9.5 million, or 14 cents a share, as revenue rose 31% year-over-year to $35.2 million. Analysts polled by
were looking for a loss of 16 cents on $35.16 million in sales.
Zingale added that "while the move to mainstream buyers is not without new challenges, we believe the reward for winning this opportunity will be substantial." He said the company continues to have a solid sales pipeline and is well-positioned to deliver stronger results in the second half of the year.
Written by Andrea Tse in New York
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