Delaware | 42-1515522 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
325 Lytton Avenue, Suite 200, Palo Alto, California | 94301 | |
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Date: May 10, 2016 | JIVE SOFTWARE, INC. | ||
By: | /s/ Bryan J. LeBlanc | ||
Bryan J. LeBlanc | |||
EVP and Chief Financial Officer |
• | Revenue: Total revenue for the first quarter was $50.7 million, an increase of 8% on a year-over-year basis. Within total revenue, product revenue was $46.6 million for the first quarter, an increase of 7% on a year-over-year basis. Professional services revenue for the first quarter was $4.1 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 $42.6 million for the first 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 $40.4 million, an increase of 4% on a year-over-year basis. |
• | Gross Profit: GAAP gross profit for the first quarter was $32.2 million, compared to $29.9 million for the first quarter of 2015. Non-GAAP gross profit was $33.7 million for the first quarter, an increase of 6% year-over-year, and non-GAAP gross margin was 67%. |
• | Loss from Operations: GAAP loss from operations for the first quarter was $6.9 million, compared to a loss from operations of $9.4 million for the first quarter of 2015. Non-GAAP loss from operations was $2.3 million, compared to non-GAAP loss from operations of $2.2 million for the first quarter of 2015. |
• | Net Loss: GAAP net loss for the first quarter was $7.4 million, compared to a net loss of $8.2 million for the same period last year. GAAP net loss per share for the first quarter was $0.10, based on 76.5 million weighted-average shares outstanding, compared to a net loss per share of $0.11, based on 74.1 million weighted-average shares outstanding for the same period last year. |
• | Balance Sheet and Cash Flow: As of March 31, 2016, Jive had cash and cash equivalents and marketable securities of $120.2 million, compared to $112.7 million as of December 31, 2015. Cash provided by operations was $9.5 million and Jive invested $1.2 million in capital expenditures, leading to free cash flow of $8.3 million for the first quarter of 2016, compared to free cash flow of $12.1 million for the first quarter of 2015. Free cash flow is defined as cash flows provided by operating activities minus cash flows used to purchase capital expenditures. |
• | Signed new and expanded customer relationships with CSRA, AAA NCNU, ACE Group, ADEO Services, Advanced Info Service Plc (AIS), Avocent Corporation, Bank of the West, CommVault Systems, Inc., Driven Brands, Inc., Johnson & Johnson, Ricoh Americas Corporation, SAIC - One, Sprint, The GoDaddy Group Inc., ThoughtWorks, Inc., T-Mobile USA, Inc., Vantiv Inc., Vifor (International) AG and Vineyard Vines, among others. |
• | In March, the company hosted its seventh annual customer and partner user conference JiveWorld16. The three-day event featured educational sessions on the value of Jive’s solutions for 1,600 on-site and webcast participants from 20 countries. At the conference Jive unveiled its vision for the future of collaboration and previewed the next generation of its Interactive Intranet solution and Customer Engagement communities. |
• | Jive was ranked a Leader in Lecko's Supporting and Preparing Your Business for Change: Latest Developments in Enterprise Social Networking, Volume 8 report for the third year in a row. Lecko, a French research firm that develops support methodologies and tools in the field of digital transformation, evaluated 28 global enterprise social networking (ESN) vendors for this year's report and recognized Jive for capabilities such as process-based collaboration, knowledge management and social potential. |
• | Second Quarter 2016 Guidance: |
• | Total revenue is expected to be in the range of $49.3 million to $50.2 million. |
• | Non-GAAP income from operations is expected to be in the range of $0 to $1.5 million. |
• | Non-GAAP earnings per share are expected to be in the range of $0.00 to $0.01 based on approximately 79.4 million weighted-average diluted shares outstanding. |
• | Change in short-term billings is expected to be negative 10% to negative 15%. |
• | Free cash flow is expected to be in the range of negative $11 million to negative $12 million. |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Revenues: | |||||||
Product | $ | 46,526 | $ | 43,512 | |||
Professional services | 4,135 | 3,614 | |||||
Total revenues | 50,661 | 47,126 | |||||
Cost of revenues: | |||||||
Product | 12,766 | 11,633 | |||||
Professional services | 5,669 | 5,593 | |||||
Total cost of revenues | 18,435 | 17,226 | |||||
Gross profit | 32,226 | 29,900 | |||||
Operating expenses: | |||||||
Research and development | 11,739 | 13,973 | |||||
Sales and marketing | 20,981 | 18,865 | |||||
General and administrative | 6,447 | 6,499 | |||||
Total operating expenses | 39,167 | 39,337 | |||||
Loss from operations | (6,941 | ) | (9,437 | ) | |||
Other income (expense), net: | |||||||
Interest income | 116 | 53 | |||||
Interest expense | (44 | ) | (79 | ) | |||
Other, net | (203 | ) | 1,501 | ||||
Total other income (expense), net | (131 | ) | 1,475 | ||||
Loss before provision for income taxes | (7,072 | ) | (7,962 | ) | |||
Provision for income taxes | 337 | 203 | |||||
Net loss | $ | (7,409 | ) | $ | (8,165 | ) | |
Basic and diluted net loss per share | $ | (0.10 | ) | $ | (0.11 | ) | |
Shares used in basic and diluted per share calculations | 76,488 | 74,107 |
March 31, 2016 | December 31, 2015 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 19,251 | $ | 9,870 | |||
Short-term marketable securities | 93,424 | 96,410 | |||||
Accounts receivable, net of allowances | 37,651 | 54,090 | |||||
Prepaid expenses and other current assets | 12,369 | 13,135 | |||||
Total current assets | 162,695 | 173,505 | |||||
Marketable securities, noncurrent | 7,537 | 6,429 | |||||
Property and equipment, net of accumulated depreciation | 11,359 | 12,747 | |||||
Goodwill | 29,753 | 29,753 | |||||
Intangible assets, net of accumulated amortization | 3,508 | 4,546 | |||||
Other assets | 7,349 | 8,165 | |||||
Total assets | $ | 222,201 | $ | 235,145 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 6,906 | $ | 3,684 | |||
Accrued payroll and related liabilities | 6,967 | 6,954 | |||||
Other accrued liabilities | 6,167 | 7,842 | |||||
Deferred revenue, current | 123,833 | 131,850 | |||||
Term debt, current | 2,400 | 2,400 | |||||
Total current liabilities | 146,273 | 152,730 | |||||
Deferred revenue, less current portion | 14,128 | 16,392 | |||||
Term debt, less current portion | 600 | 1,200 | |||||
Other long-term liabilities | 2,656 | 2,682 | |||||
Total liabilities | 163,657 | 173,004 | |||||
Stockholders’ Equity: | |||||||
Common stock | 7 | 7 | |||||
Less treasury stock at cost | (3,352 | ) | (3,352 | ) | |||
Additional paid-in capital | 387,712 | 384,164 | |||||
Accumulated deficit | (325,946 | ) | (318,537 | ) | |||
Accumulated other comprehensive income (loss) | 123 | (141 | ) | ||||
Total stockholders’ equity | 58,544 | 62,141 | |||||
Total liabilities and stockholders’ equity | $ | 222,201 | $ | 235,145 |
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (7,409 | ) | $ | (8,165 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | 3,569 | 4,138 | |||||
Stock-based compensation | 3,653 | 5,636 | |||||
Change in deferred taxes | 59 | 32 | |||||
Non-recurring gain | — | (1,107 | ) | ||||
Loss on sale of property and equipment | 49 | — | |||||
Decrease in: | |||||||
Accounts receivable, net | 16,439 | 23,808 | |||||
Prepaid expenses and other assets | 982 | 228 | |||||
Increase (decrease) in: | |||||||
Accounts payable | 3,483 | 555 | |||||
Accrued payroll and related liabilities | 14 | (1,016 | ) | ||||
Other accrued liabilities | (956 | ) | (1,548 | ) | |||
Deferred revenue | (10,281 | ) | (8,134 | ) | |||
Other long-term liabilities | (85 | ) | 138 | ||||
Net cash provided by operating activities | 9,517 | 14,565 | |||||
Cash flows from investing activities: | |||||||
Payments for purchase of property and equipment | (1,214 | ) | (2,436 | ) | |||
Purchases of marketable securities | (15,224 | ) | (33,368 | ) | |||
Sales of marketable securities | 1,001 | 4,600 | |||||
Maturities of marketable securities | 16,053 | 23,051 | |||||
Net cash provided by (used in) investing activities | 616 | (8,153 | ) | ||||
Cash flows from financing activities: | |||||||
Proceeds from exercise of stock options | 39 | 627 | |||||
Taxes paid related to net share settlement of equity awards | (144 | ) | (167 | ) | |||
Repayments of term loans | (600 | ) | (600 | ) | |||
Non-recurring gain | — | 1,107 | |||||
Net cash provided by (used in) financing activities | (705 | ) | 967 | ||||
Net increase in cash and cash equivalents | 9,428 | 7,379 | |||||
Effect of exchange rate changes | (47 | ) | 51 | ||||
Cash and cash equivalents, beginning of period | 9,870 | 20,594 | |||||
Cash and cash equivalents, end of period | $ | 19,251 | $ | 28,024 |
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
Gross profit, as reported | $ | 32,226 | $ | 29,900 | |||
Add back: | |||||||
Stock-based compensation | 616 | 820 | |||||
Amortization related to acquisitions | 905 | 986 | |||||
Gross profit, non-GAAP | $ | 33,747 | $ | 31,706 | |||
Gross margin, non-GAAP | 67 | % | 67 | % | |||
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
Research and development, as reported | $ | 11,739 | $ | 13,973 | |||
less: | |||||||
Stock-based compensation | 916 | 2,518 | |||||
Amortization related to acquisitions | 39 | 523 | |||||
Research and development, non-GAAP | $ | 10,784 | $ | 10,932 | |||
As percentage of total revenues, non-GAAP | 21 | % | 23 | % | |||
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
Sales and marketing, as reported | $ | 20,981 | $ | 18,865 | |||
less: | |||||||
Stock-based compensation | 815 | 784 | |||||
Amortization related to acquisitions | 94 | 131 | |||||
Sales and marketing, non-GAAP | $ | 20,072 | $ | 17,950 | |||
As percentage of total revenues, non-GAAP | 40 | % | 38 | % | |||
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
General and administrative, as reported | $ | 6,447 | $ | 6,499 | |||
less: | |||||||
Stock-based compensation | 1,289 | 1,522 | |||||
General and administrative, non-GAAP | $ | 5,158 | $ | 4,977 | |||
As percentage of total revenues, non-GAAP | 10 | % | 11 | % | |||
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
Loss from operations, as reported | $ | (6,941 | ) | $ | (9,437 | ) | |
Add back: | |||||||
Stock-based compensation | 3,636 | 5,644 | |||||
Amortization related to acquisitions | 1,038 | 1,640 | |||||
Loss from operations, non-GAAP | $ | (2,267 | ) | $ | (2,153 | ) | |
As percentage of total revenues, non-GAAP | (4 | )% | (5 | )% | |||
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
Loss before provision for income taxes, as reported | $ | (7,072 | ) | $ | (7,962 | ) | |
Add back: | |||||||
Stock-based compensation | 3,636 | 5,644 | |||||
Amortization related to acquisitions | 1,038 | 1,640 | |||||
Less: | |||||||
Non-recurring gain | — | (1,107 | ) | ||||
Loss before provision for income taxes, non-GAAP | $ | (2,398 | ) | $ | (1,785 | ) |
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
Net loss, as reported | $ | (7,409 | ) | $ | (8,165 | ) | |
Add back: | |||||||
Stock-based compensation | 3,636 | 5,644 | |||||
Amortization related to acquisitions | 1,038 | 1,640 | |||||
Less: | |||||||
Non-recurring gain | — | (1,107 | ) | ||||
Net loss, non-GAAP | $ | (2,735 | ) | $ | (1,988 | ) | |
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
Basic and diluted net loss per share, as reported | $ | (0.10 | ) | $ | (0.11 | ) | |
Add back: | |||||||
Stock-based compensation | 0.05 | 0.08 | |||||
Amortization related to acquisitions | 0.01 | 0.02 | |||||
Less: | |||||||
Non-recurring gain | — | (0.01 | ) | ||||
Basic and diluted net loss per share, non-GAAP (1) | $ | (0.04 | ) | $ | (0.03 | ) | |
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
Total revenues | $ | 50,661 | $ | 47,126 | |||
Deferred revenue, current, end of period | 123,833 | 124,774 | |||||
Less: Deferred revenue, current, beginning of period | (131,850 | ) | (128,592 | ) | |||
Short-term billings | $ | 42,644 | $ | 43,308 | |||
Three months ended March 31, | |||||||
2016 | 2015 | ||||||
Total revenues | $ | 50,661 | $ | 47,126 | |||
Deferred revenue, end of period | 137,961 | 152,405 | |||||
Less: Deferred revenue, beginning of period | (148,242 | ) | (160,539 | ) | |||
Billings | $ | 40,380 | $ | 38,992 |
(1) | Per share amounts may not add due to rounding. |