Jive’s IPO Filing Gives First Look at Its Finances
Social enterprise software concern Jive filed on Wednesday for the $100 million initial public offering it has been steadily marching toward. Its S-1 filing with the U.S. Securities and Exchange Commission gives the first look at the company’s financials.
Jive finished 2010 with $46.3 million in sales and a $27.6 million net loss. For the first six months of 2011, sales were $34 million and the loss increased to $30.5 million.
If Jive keeps growing its sales at a consistent rate, it should hit $68 million in sales this year, and would break the $100 million barrier — widely considered to be a key milepost for companies going public — in 2012.
Its problem will be its mounting expenses. Research and development costs — $18.3 million in 2010 — are already on track to hit $30 million this year, while sales and marketing expenses will, at their current pace, hit $40 million this year, up from $29 million last year.
The classic argument companies always make for this is that spending is necessary to grow the business. And it’s a fair argument to make. Social enterprise software and services — which aim to make typical business applications more like social networks such as Facebook and Twitter — is a fast-growing business. And Jive has landed some big customers: Hewlett-Packard, SAP, T-Mobile and investment bank UBS. As CEO Tony Zingale told me at D9, Jive’s software is in use by some 15 million people in 635 companies.
Having raised about $45 million since 2007, including a $30 million round led by Kleiner Perkins last year, Jive is relatively well capitalized. It has $46.6 million in combined cash and cash equivalents, but has also run up a long-term debt of $33 million.
A big piece of that debt comes from an acquisition. In May, Jive acquired OffiSync, as part of its effort to bring social functions to Microsoft Office and Outlook. Financial terms weren’t disclosed at the time, but Jive says in the filing that at least $20 million of the $100 million it hopes to raise in the offering will go toward paying down a loan, due in 2015, that it obtained to do that deal.
Jive’s two main VC investors own more than half the company: Sequoia Capital owns 36.2 percent, while Kleiner Perkins owns 14.2 percent. Zingale owns a little more than seven percent.