Jive Software announce 2Q14 financial results
“Jive delivered second quarter results that exceeded our guidance from both a revenue and profitability perspective. However, we also experienced a more challenging sales environment that resulted in elongated sales cycles, including several larger opportunities that did not close by the end of the quarter,” said Tony Zingale, Chairman & CEO of Jive Software.
Zingale added, “We are continuing to execute against our go-to-market strategy and although it has been well received by customers we believe it will take additional time to fully recognize the benefits in our results. We remain enthusiastic about the long-term prospects associated with the global enterprise communication and collaboration market. We believe we are well positioned to capitalize on this opportunity with our unmatched platform, functionality and track record of delivering customer success.”
In terms of trend, the numbers look pretty good – revenue up 23% year-on-year, profit up 22% year-on-year, cash and equivalents almost static from a year ago ($139.2m).
The press release also mentioned a number of new and expanded customer relationships:
Signed new customers and expanded existing relationships, including: Akamai Technologies, Artelia, Eli Lilly, Euroclear Bank, Gentex, GNS3 Inc., Humana, Huntsman International LLC, Intercontinental Exchange, Modern Times Group, Persistent Systems Inc., PricewaterhouseCoopers, ServiceMax, Sodexo Group, TI Automotive Systems, TVO and Univision, among others.
However, in the broader picture, the company is still losing money – $4.6 million (non-GAAP), though this is down from 2013. The outlook is that Jive Software will lose $24.0 million to $28.0 million over the full 2014 year.
I certainly still believe that Jive Software has a very strong future, but the longer that these losses continue, the more likely it is that the company will be the subject of an acquisition.