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PALO ALTO, Calif., Feb. 17, 2016 /PRNewswire/ -- Jive Software, Inc. (NASDAQ: JIVE), the leading provider of modern communication and collaboration solutions for business, today announced financial results for its fourth quarter and fiscal year ended December 31, 2015.

@jivesoftware ~ working better together.

"Jive delivered fourth quarter and full year results that were in line with our expectations as we worked to transform our business," said Elisa Steele, CEO of Jive Software.  "We continue to improve our products and go-to-market strategies to solve customer pain points and target the most promising growth opportunities.  We are also advancing our market leadership with the introduction of our Jive WorkHub package solutions for healthcare collaboration, and employee and customer engagement.  In 2016, our primary focus is to execute on our strategies to generate more consistent performance and become profitable by year end."

Fourth Quarter 2015 Financial Highlights

  • Revenue: Total revenue for the fourth quarter was $50.2 million, an increase of 5% on a year-over-year basis. Within total revenue, product revenue was $46.6 million for the fourth quarter, an increase of 7% on a year-over-year basis. Professional services revenue for the fourth quarter was $3.6 million, a decrease of 12% 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 $60.2 million for the fourth quarter, a decrease of 2% year-over-year. Total billings, which Jive defines as revenue plus the change in short and long-term deferred revenue, was $57.1 million, a decrease of 6% on a year-over-year basis.
  • Gross Profit: GAAP gross profit for the fourth quarter was $31.5 million, compared to $30.3 million for the fourth quarter of 2014. Non-GAAP gross profit was $33.0 million for the fourth quarter, an increase of 2% year-over-year, and non-GAAP gross margin was 66%.
  • Loss from Operations: GAAP loss from operations for the fourth quarter was $7.6 million, compared to a loss from operations of $11.4 million for the fourth quarter of 2014. Non-GAAP loss from operations was $2.9 million, compared to non-GAAP loss from operations of $4.1 million for the fourth quarter of 2014.
  • Net Loss: GAAP net loss for the fourth quarter was $8.5 million, compared to a net loss of $12.1 million for the same period last year. GAAP net loss per share for the fourth quarter was $0.11, based on 76.1 million weighted-average shares outstanding, compared to a net loss per share of $0.17, based on 72.4 million weighted-average shares outstanding for the same period last year.

    Non-GAAP net loss for the fourth quarter was $3.9 million, compared to a non-GAAP net loss of $4.8 million for the same period last year. Non-GAAP net loss per share for the fourth quarter was $0.05, based on 76.1 million weighted-average shares outstanding, compared to a non-GAAP net loss per share of $0.07, based on 72.4 million weighted-average shares outstanding for the same period last year.

  • Balance Sheet and Cash Flow: As of December 31, 2015, Jive had cash and cash equivalents and marketable securities of $112.7 million, compared to $119.6 million as of September 30, 2015. Cash used in operations was $4.2 million and we invested $1.7 million in capital expenditures, leading to negative free cash flow of $5.9 million for the fourth quarter of 2015. Free cash flow was negative $9.5 million for the fourth quarter of 2014. Free cash flow is defined as cash flows provided by operating activities minus cash flows used to purchase capital expenditures.

Full Year 2015 Financial Highlights

  • Revenue: Total revenue was $195.8 million for fiscal 2015, an increase of 10% on a year-over-year basis. Within total revenue, product revenue was $180.2 million for fiscal 2015, an increase of 11% on a year-over-year basis. Services revenue for fiscal 2015 was $15.6 million, a decrease of 5% 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 $199.1 million for fiscal 2015, an increase of 2% on a year-over-year basis. Total billings, which Jive defines as revenue plus the change in short and long-term deferred revenue, were $183.5 million, a decrease of 4% on a year-over-year basis.
  • Gross Profit: GAAP gross profit was $123.6 million for fiscal 2015, compared to $112.0 million for fiscal 2014. Non-GAAP gross profit was $130.3 million for fiscal 2015, representing a year-over-year increase of 8% and a non-GAAP gross margin of 67%.
  • Loss from Operations: GAAP loss from operations was $34.6 million for fiscal 2015, compared to a loss from operations of $55.0 million for fiscal 2014. Non-GAAP loss from operations was $9.4 million for fiscal 2015, compared to a non-GAAP loss from operations of $17.3 million for fiscal 2014.
  • Net Loss: GAAP net loss for fiscal 2015 was $34.9 million, compared to a $56.2 million net loss for fiscal 2014. GAAP net loss per share for fiscal 2015 was $0.46 based on 75.2 million weighted-average shares outstanding, compared to a net loss per share of $0.79 based on 70.8 million weighted-average shares outstanding for fiscal 2014.

Non-GAAP net loss for fiscal 2015 was $10.8 million, compared to an $18.4 million non-GAAP net loss for fiscal 2014.  Non-GAAP net loss per share for fiscal 2015 was $0.14, based on 75.2 million weighted-average shares outstanding, compared to a non-GAAP net loss per share of $0.26 based on 70.8 million weighted-average shares outstanding for fiscal 2014.

  • Cash Flow: We generated $0.3 million in cash from operations and invested $6.5 million in capital expenditures, leading to negative free cash flow of $6.2 million for fiscal 2015.  Free cash flow was negative $19.0 million for fiscal 2014.

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."

Fourth Quarter and Recent Business Highlights

  • Signed new and expanded customer relationships with Adeptus Health, Alerus Financial, Ciena Corporation, Cox Enterprises, Dell Boomi, DTIC, Hitachi Data Systems Corporation, Instructure, MasTec, MedAmerica, Oregon Health & Science University, Prospect Mortgage, Quest Diagnostics, Restaurant Brands International, San Francisco International Airport, The Vitamin Shoppe, UNIQA Group, Virgin Media Limited, Western Union, Zebra Technologies and ZTE USA, among others.
  • Unveiled new packaged solutions powered by the industry-leading Jive WorkHub – Jive for Healthcare Collaboration, Jive for Employee Engagement and Jive for Customer Engagement – to transform the way people work together in key industries and functional groups. These initial offerings in Jive's set of tailored solutions apply best practice templates, configurations and bundled professional services to solve business pain points for verticals like the healthcare industry and business units like human resources and marketing.
  • Delivered the latest release of Jive's industry-leading interactive intranet and external community products, including a redesign of our entire product portfolio and new optimized processes to highly engage employees, customers and partners. Additional features like peer-to-peer recognition, improved SEO, global translation capabilities and updates to Jive's purpose-driven apps deliver a complete, engaging experience that drives brand affinity for external communities and employee engagement for its interactive intranet offering.
  • We announced a new partnership with Egnyte, a market leader in adaptive enterprise file services that enables companies of all sizes to collaborate in Jive around any content stored in Egnyte -- from any device or location. With the secure integration between the two companies, joint customers also have the flexibility to edit and publish content in the platform of their choice while keeping the entire organization in the loop with content that is continuously synced between Egnyte and Jive.

Financial Outlook

As of February 17, 2016, Jive's guidance for its first quarter 2016 is as follows:

  • First Quarter 2016 Guidance:
    • Total revenue is expected to be in the range of $49.5 million to $50.5 million.
    • Non-GAAP loss from operations is expected to be in the range of $4.5 million to $5.5 million.
    • Non-GAAP loss per share is expected to be in the range of $0.06 to $0.08 based on approximately 76.5 million weighted-average diluted shares outstanding.
    • Change in short-term billings is expected to be negative 3% to positive 2%.
    • Free cash flow is expected to be in the range of $7.4 million to $8.4 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 loss per share to GAAP loss from operations and GAAP 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 certain items that impact GAAP loss from operations and GAAP 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 GAAP loss from operations and GAAP 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 fourth quarter and full year 2015, and outlook for the first quarter 2016.  Listeners may access a live webcast of the conference call along with an accompanying slide presentation under "News, Events & Presentations, Quarterly Earnings" on Jive's investor relations website at http://investor.jivesoftware.com/QuarterlyEarnings.  A replay of the webcast will be available on the website following the live event.  To listen by phone, dial 844-492-3729 (domestic) or 412-542-4195 (international).  A replay of this conference call can be accessed through February 24, 2016, by dialing 877-344-7529 (domestic) or 412-317-0088 (international). The replay pass code is 10079721.

About Jive Software

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 first fiscal quarter of 2016, expectations regarding our strategy of driving improved financial and operational performance, the effectiveness and intended benefits of our product releases, and our belief that we are well positioned to build upon our momentum over time.  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 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 ability to increase the pace at which we are able to add new customers, 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 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 Statements of Operations

(In thousands, except per share amounts)

(Unaudited)




 For the Three Months Ended 


 For the Twelve Months Ended 



December 31, 


December 31,



2015


2014


2015


2014










Revenues:









  Product

$

46,544

$

43,609

$

180,172

$

162,185

  Professional services


3,607


4,080


15,621


16,508

    Total revenues


50,151


47,689


195,793


178,693










Cost of revenues:









  Product


13,186


11,563


49,816


43,494

  Professional services


5,466


5,780


22,378


23,179

    Total cost of revenues


18,652


17,343


72,194


66,673

Gross profit


31,499


30,346


123,599


112,020










Operating expenses:









  Research and development  


12,081


12,779


52,818


52,275

  Sales and marketing 


20,688


23,286


78,684


90,141

  General and administrative


6,288


5,639


26,708


24,633

    Total operating expenses


39,057


41,704


158,210


167,049










Loss from operations


(7,558)


(11,358)


(34,611)


(55,029)










Other income (expense), net:









  Interest income


85


54


277


205

  Interest expense


(22)


(67)


(171)


(269)

  Other, net


(133)


69


903


78

    Total other income (expense), net


(70)


56


1,009


14










Loss before provision for income taxes


(7,628)


(11,302)


(33,602)


(55,015)

Provision for income taxes


921


788


1,251


1,138

Net loss

$

(8,549)

$

(12,090)

$

(34,853)

$

(56,153)










Basic and diluted net loss per share

$

(0.11)

$

(0.17)

$

(0.46)

$

(0.79)










Shares used in basic and diluted per share calculations


76,093


72,395


75,217


70,751

 

JIVE SOFTWARE, INC.

Consolidated Balance Sheets

(In thousands)

(Unaudited)




 December 31, 


 December 31, 



2015


2014






Assets





Current Assets:





    Cash and cash equivalents

$

9,870

$

20,594

    Short-term marketable securities


96,410


93,001

    Accounts receivable, net of allowances


54,090


66,729

    Prepaid expenses and other current assets


13,135


13,490

        Total current assets


173,505


193,814






Marketable securities, noncurrent


6,429


7,542

Property and equipment, net of accumulated depreciation


12,747


12,986

Goodwill


29,753


29,753

Intangible assets, net of accumulated amortization


4,546


9,448

Other assets 


8,165


9,314

        Total assets

$

235,145

$

262,857






Liabilities and Stockholders' Equity





Current liabilities:





    Accounts payable

$

3,684

$

3,565

    Accrued payroll and related liabilities


6,954


6,622

    Other accrued liabilities


7,842


8,246

    Deferred revenue, current


131,850


128,592

    Term debt, current


2,400


2,400

        Total current liabilities


152,730


149,425






Deferred revenue, less current portion


16,392


31,947

Term debt, less current portion


1,200


3,600

Other long-term liabilities


2,682


1,288

        Total liabilities


173,004


186,260






Stockholders' Equity:





    Common stock


7


7

    Less treasury stock at cost


(3,352)


(3,352)

    Additional paid-in capital


384,164


363,587

    Accumulated deficit


(318,537)


(283,684)

    Accumulated other comprehensive income (loss)


(141)


39

       Total stockholders' equity


62,141


76,597

       Total liabilities and stockholders' equity

$

235,145

$

262,857

 

JIVE SOFTWARE, INC.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)




 Three Months Ended 



 Twelve Months Ended 



December 31, 



December 31, 



2015


2014



2015


2014











Cash flows from operating activities:










   Net loss

$

(8,549)

$

(12,090)


$

(34,853)

$

(56,153)

   Adjustments to reconcile net loss to net cash provided by (used in) operating activities:










         Depreciation and amortization


3,734


3,808



15,605


15,458

         Stock-based compensation


3,525


6,088



20,290


32,908

         Change in deferred taxes


243


147



338


243

         Non-recurring gain


-


-



(1,107)


-

         Loss on sale of property and equipment


103


19



103


19

         (Increase) decrease in:










            Accounts receivable, net


(7,053)


(16,720)



12,639


(7,900)

            Prepaid expenses and other assets


357


1,834



(307)


(4,084)

         Increase (decrease) in:










            Accounts payable


(3,620)


(3,516)



535


(2,622)

            Accrued payroll and related liabilities


1,079


18



300


(883)

            Other accrued liabilities


(1,059)


(990)



(1,266)


139

            Deferred revenue


6,968


13,372



(12,297)


13,202

            Other long-term liabilities


33


(21)



315


16

               Net cash provided by (used in) operating activities


(4,239)


(8,051)



295


(9,657)











Cash flows from investing activities:










   Payments for purchase of property and equipment


(1,667)


(1,422)



(6,450)


(9,313)

   Purchases of marketable securities


(51,869)


(11,951)



(133,314)


(91,987)

   Sales of marketable securities


7,480


1,302



25,383


36,174

   Maturities of marketable securities


43,216


11,750



104,317


57,324

               Net cash used in investing activities


(2,840)


(321)



(10,064)


(7,802)











Cash flows from financing activities:










   Proceeds from exercise of stock options 


272


2,503



1,345


4,250

   Taxes paid related to net share settlement of equity awards


(269)


(187)



(1,058)


(1,758)

   Repayments of term loans


(600)


(600)



(2,400)


(2,400)

   Earnout payment for prior acquisition


-


-



-


(576)

   Non-recurring gain


-


-



1,107


-

               Net cash provided by (used in) financing activities


(597)


1,716



(1,006)


(484)











Net decrease in cash and cash equivalents


(7,676)


(6,656)



(10,775)


(17,943)

Effect of exchange rate changes


95


66



51


122

Cash and cash equivalents, beginning of period


17,451


27,184



20,594


38,415

Cash and cash equivalents, end of period

$

9,870

$

20,594


$

9,870

$

20,594

 

JIVE SOFTWARE, INC.

Reconciliation of Non-GAAP Information

(In thousands, except per share data)

(Unaudited)




Three Months Ended December 31, 


Twelve Months Ended December 31, 



2015


2014


2015


2014










Gross profit, as reported

$

31,499

$

30,346

$

123,599

$

112,020

Add back:









  Stock-based compensation


641


1,151


3,029


4,276

  Amortization related to acquisitions


906


955


3,694


3,835

Gross profit, non-GAAP

$

33,046

$

32,452

$

130,322

$

120,131

Gross margin, non-GAAP


66%


68%


67%


67%












Three Months Ended December 31, 


Twelve Months Ended December 31, 



2015


2014


2015


2014










Research and development,  as reported

$

12,081

$

12,779

$

52,818

$

52,275

less:









  Stock-based compensation


1,081


1,947


7,078


10,642

  Amortization related to acquisitions


54


127


701


510

  Research and development,  non-GAAP

$

10,946

$

10,705

$

45,039

$

41,123

As percentage of total revenues, non-GAAP


22%


22%


23%


23%












Three Months Ended December 31, 


Twelve Months Ended December 31, 



2015


2014


2015


2014










Sales and marketing,  as reported

$

20,688

$

23,286

$

78,684

$

90,141

less:









  Stock-based compensation


817


1,697


3,775


10,850

  Amortization related to acquisitions


119


129


507


517

    Sales and marketing,  non-GAAP

$

19,752

$

21,460

$

74,402

$

78,774

As percentage of total revenues, non-GAAP


39%


45%


38%


44%












Three Months Ended December 31, 


Twelve Months Ended December 31, 



2015


2014


2015


2014










General and administrative,  as reported

$

6,288

$

5,639

$

26,708

$

24,633

less:









  Stock-based compensation


997


1,291


6,423


7,138

    General and administrative,  non-GAAP

$

5,291

$

4,348

$

20,285

$

17,495

As percentage of total revenues, non-GAAP


11%


9%


10%


10%












Three Months Ended December 31, 


Twelve Months Ended December 31, 



2015


2014


2015


2014










Loss from operations, as reported

$

(7,558)

$

(11,358)

$

(34,611)

$

(55,029)

Add back:









  Stock-based compensation


3,536


6,086


20,305


32,906

  Amortization related to acquisitions


1,079


1,211


4,902


4,862

Loss from operations, non-GAAP

$

(2,943)

$

(4,061)

$

(9,404)

$

(17,261)

As percentage of total revenues, non-GAAP


(6)%


(9)%


(5)%


(10)%












Three Months Ended December 31, 


Twelve Months Ended December 31, 



2015


2014


2015


2014










Loss before provision for income taxes, as reported

$

(7,628)

$

(11,302)

$

(33,602)

$

(55,015)

Add back:









  Stock-based compensation


3,536


6,086


20,305


32,906

  Amortization related to acquisitions


1,079


1,211


4,902


4,862

Less:









  Non-recurring gain


-


-


(1,107)


-

Loss before provision for income taxes, non-GAAP

$

(3,013)

$

(4,005)

$

(9,502)

$

(17,247)










 




Three Months Ended December 31, 


Twelve Months Ended December 31, 



2015


2014


2015


2014










Net loss, as reported

$

(8,549)

$

(12,090)

$

(34,853)

$

(56,153)

Add back:









  Stock-based compensation


3,536


6,086


20,305


32,906

  Amortization related to acquisitions


1,079


1,211


4,902


4,862

Less:









  Non-recurring gain


-


-


(1,107)


-

Net loss, non-GAAP

$

(3,934)

$

(4,793)

$

(10,753)

$

(18,385)












Three Months Ended December 31, 


Twelve Months Ended December 31, 



2015


2014


2015


2014










Basic and diluted net loss per share, as reported

$

(0.11)

$

(0.17)

$

(0.46)

$

(0.79)

Add back:









  Stock-based compensation


0.05


0.08


0.27


0.46

  Amortization related to acquisitions


0.01


0.02


0.07


0.07

Less:









  Non-recurring gain


-


-


(0.01)


-

Basic and diluted net loss per share, non-GAAP (1)

$

(0.05)

$

(0.07)

$

(0.14)

$

(0.26)












Three Months Ended December 31, 


Twelve Months Ended December 31, 



2015


2014


2015


2014










Total revenues

$

50,151

$

47,689

$

195,793

$

178,693

Deferred revenue, current, end of period


131,850


128,592


131,850


128,592

Less: Deferred revenue, current, beginning of period


(121,752)


(114,777)


(128,592)


(112,432)

Short-term billings

$

60,249

$

61,504

$

199,051

$

194,853












Three Months Ended December 31, 


Twelve Months Ended December 31, 



2015


2014


2015


2014










Total revenues

$

50,151

$

47,689

$

195,793

$

178,693

Deferred revenue, end of period


148,242


160,539


148,242


160,539

Less: Deferred revenue, beginning of period


(141,274)


(147,167)


(160,539)


(147,337)

Billings

$

57,119

$

61,061

$

183,496

$

191,895










(1)  Per share amounts may not add due to rounding.

 

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SOURCE Jive Software

Investor Contacts: Cindy Klimstra, Jive Software, (650) 319-4343, cindy.klimstra@jivesoftware.com, or Brian Denyeau, ICR, (646) 277-1251, brian.denyeau@icrinc.com; or Media Contact: Jason Khoury, Jive Software, (650) 847-8308, jason.khoury@jivesoftware.com