Jive Software (JIVE)

This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs:   Globe Specialty Metals   •   LogMeIn   •   Invesco Mortgage Capital   •   Medidata   •   Chemspec

 

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Remi Cossart

Jive Software (NASDAQ:JIVE) provides a social platform to enterprises. From this platform, employees can interact with each other and customers and partners can interact with the company. From an internal perspective, Jive improves productivity by allowing customers to collaborate and communicate. Externally, Jive improves customer retention by allowing them to ask questions and communicate issues. The company makes money by charging a subscription fee for enterprises to use the software.^[1]

Business Overview

For the full year 2010, Jive reported a total revenue of $46M. This was an increase over the $30M reported for the previous year. The company also reported a net loss of $28M for 2010 and a net loss of $5M for 2009.^[2]

New Updates

The company's initial public offering of stock on the NASDAQ occurred on December 12, 2011. The company offered approximately 13.4M shares each for $12. This was above the $8-$10 price range. The deal was originally announced for approximately 11.7M shares. The lead mangers of the deal were Morgan Stanley, Goldman and Citi.^[3]

Trends & Forces

History of Loss

At the time of its IPO, Jive Software had not reported a profitable quarter. The business model of charging enterprises to use a proprietary social platform is not proven. While Jive has managed to acquire customers, it is unclear if demand will continue to grow in order to allow the company to generate enough subscription revenue to be profitable. However, since there is a low cost for each additional client, Jive has the ability to scale its revenue disproportionately faster than its costs.^{[4] [5]}

1. ↑ JIVE S-1/A 2011 PROSPECTUS SUMMARY "Overview" p. 1-2
2. ↑ JIVE S-1/A 2011 PROSPECTUS SUMMARY "SUMMARY CONSOLIDATED FINANCIAL DATA" p. 7-8
3. ↑ Renaissance Capital - IPO Home "Jive Software raises $161 million by pricing upsized IPO at $12, well above the range" 13 Dec 2011
4. ↑ Seeking Alpha "Jive Software Starts A Busy IPO Week Off With A Bang" 13 Dec 2011
5. ↑ JIVE S-1/A 2011 PROSPECTUS SUMMARY "Selected Risks Associated with Our Business" p. 4