Jive Financials Show Social Software Momentum - InformationWeek
Cloud // Software as a Service
11:26 AM
Connect Directly
Moving UEBA Beyond the Ground Floor
Sep 20, 2017
This webinar will provide the details you need about UEBA so you can make the decisions on how bes ...Read More>>

Jive Financials Show Social Software Momentum

Following IPO, Jive reports a bigger loss but also bigger deals--and a new user self-provisioning cloud option on the horizon.

Enterprise Social Networks: A Guided Tour
Enterprise Social Networks: A Guided Tour
(click image for larger view and for slideshow)
In its first earnings report as a public company, Jive Software reported an increase in deals worth more than $1 million per year and promised to make some noise with a "Project Thunder" improvement in cloud computing delivery of its product later this year.

Headlines on financial news sites emphasized a bigger loss in the fourth quarter, despite higher revenue, although Venturebeat provided a more upbeat assessment, emphasizing 53% revenue growth over the same period in 2010. CEO Tony Zingale called the results "better than what we expected and a strong finish for the year."

Revenue rose to $22.5 million from $14.7 million, but the net loss for the quarter was $12.7 million. Jive's net loss for the year was $50.8 million and for 2012 it is projecting a loss of $23 to $25 million, as it seeks market share over profitability. In the fourth quarter, Jive increased sales and marketing by 61%, to $13 million, as it sought to win customers from larger companies like Salesforce.com and IBM. Now it wants to put the $131.4 million in net proceeds it raised in its December initial public offering to work cementing its lead.

[Want to know the pitfalls? See 10 Enterprise Social Networking Obstacles.]

Zingale boasted of "winning the largest and most important customer relationships," celebrating "blue chip customers" making significant "enterprise-wide agreements," including PricewaterhouseCoopers, Ace Insurance, and Thomson Reuters. Those customer wins are significant because each is worth more than $1 million in annual revenue to Jive, which sells its software on a subscription basis whether it's deployed on premises or hosted by Jive. "We have never experienced several new deals of this size in a quarter," he said. "While too early to call a trend, this is a sign enterprises are realizing that social business software may be one of the most important decisions they make this decade."

"Consumers are moving to social media faster than any other technology adoption curve in our lifetime," he said, and businesses increasingly see the potential to apply it internally and in communication with partners and customers. More enterprises are putting out RFPs specifically for social business software, he said.

Zingale's combative style was also on display as he made the point that "each of the highlighted customers already [has] relationships with large enterprise software vendors that make a lot of noise about being in social business software." Jive is able to win out over the likes of IBM and Salesforce.com because its focus on social business software distinguishes it from vendors "bolting on" social capabilities to existing products, he said. Jive also has an advantage in being "agnostic" about links to other enterprise systems, such as email, document management, or customer relationship management, in contrast with firms that are trying to expand from a base in one of those categories, he said.

Zingale also revealed a few details about Project Thunder, a technology upgrade currently in beta and due to roll out mid-year. Project Thunder will make Jive "capable of being self-provisioned by customers," making it easier for new and potential customers to sign up for and try Jive online and for departments within large enterprises to provision their own social workspaces, he said. In other words, Jive will be rounding out its cloud computing story.

1 of 2
Comment  | 
Print  | 
More Insights
Newest First  |  Oldest First  |  Threaded View
Deb Donston-Miller
Deb Donston-Miller,
User Rank: Apprentice
2/9/2012 | 12:07:10 AM
re: Jive Financials Show Social Software Momentum
With Project Thunder, it seems that Jive has its finger on the pulse of how companies seem to be testing out and deploying social business software today. I wonder, though, as the technology evolves and as social business software becomes more mainstream if more traditional procurement methods will take over. I think the private/public cloud piece is interesting as well, in terms of the increasing use of social business software at companies in traditionally sensitive environments, such as health care and financial services. The ability to provide a private cloud option could be an edge.

Deb Donston-Miller
Contributing Editor, The BrainYard
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll