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Jive Software Continues to Tumble

Posted on Wednesday, Aug 19th 2015

According to a ReportsnReports research report, the global enterprise social software market is projected to grow 11.3% annually from $4.77 billion in 2014 to $8.14 billion in 2019. But despite a strong industry growth rate,  Billion Dollar Unicorn club hopeful Jive Software (Nasdaq: JIVE) is feeling the pressures of the stock exchange. The stock market has been unrelenting in its treatment of the loss-making business model, causing Jive to implode.

Jive’s Financials

Jive saw second quarter revenues grow 12% over the year to $48.6 million. They continued to suffer losses and ended the quarter with a loss of $0.03 per share compared with the Street’s forecast of a loss of $0.06 per share.

By segment, product revenues grew 13% over the year to $44.2 million and professional services revenues increased 3% over the year to $4.5 million for the quarter.

For the current quarter, Jive projected revenues of $49 million-$50 million with a loss of $0.05-$0.07 per share. They expect to end the year with revenues of $192 million-$196 million and a net loss of $0.18-$0.20 per share.

Jive’s Improving Offerings

As part of Jive’s efforts to continue to improve their cloud-based offerings, they recently released several new products. They introduced Jive Circle, a new app in the Jive-w portfolio that acts as a dynamic and secure employee directory allowing employees to search and discover other employees within their organization. Jive Software has written a mobile app that answers those sorts of pesky day-to-day questions. The interactive employee directory has also integrated a built-in location intelligence and a virtual org chart to help employees find the right person to contact. The app also integrates with the Jive Chime real-time messaging app so that employees can connect and securely message with each other.

They also released an upgrade for Jive-x that offers improved features to help drive customer engagement and satisfaction. The new Jive-x has been integrated with services such as those of Zendesk and is able to automate support for unanswered questions using Zendesk’s ticket management system. The new release of Jive-n offers streamlined content management functionality and simplified self-service capabilities to help employees within their organizations. Jive has also extended the integration of their apps with Google and Microsoft applications.

Jive’s products may be improving, but the market is not pleased with them as they continue to bleed cash. Their stock is trading at $4.08 with a market capitalization of $308.23 million. That is a steep fall from the $890 million market capitalization that Jive was trading at soon after listing. It touched a 52-week high of $7.27 in September last year and is gradually recovering from 52-week low levels of $3.51 that it had fallen to earlier this month.

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