Jive Software IPO: The Five Things You REALLY Need to Know

It may not be Zynga, but Jive Software is still exciting. The company, which announced that it will trade on NADSAQ, provides social media tools to the B2B sector. This space isn’t as big or high-profile as B2C social media, but there’s definitely a market for it. Let’s take a look at the five things you need to know about Jive Software ahead of its IPO:

1. The top line: Jive Software had a solid third quarter. It posted revenue of $20.8 mn, an increase of 69.1 per cent year over year. For the first three quarters of 2011, Jive has put up $54.8 mn in revenue, up from $31.6 mn for the same period in 2010.

2. The bottom line: the B2B social media platform still isn’t profitable, but it’s headed in the right direction. Its Q3 loss was $7.6 mn. That’s flat year over year but down significantly quarter over quarter. In Q2, Jive put up a net loss of $16.1 mn. And even though the loss is flat YOY, this year, it came on higher revenue, definitely a good sign.

3. The acquisition: Jive put out $23.2 mn for OffiSync in the middle of Q2, $22.7 mn of it in cash. This product facilitates collaboration on Microsoft Office products, according to Forbes.

4. The shareholders: Sequoia Capital and Kleiner Perkins snagged $40 mn in Jive stock in Q3, according to Forbes, via Series C preferred stock warrants. Each firm took $20 mn worth at a share price of $10.37. The investors are clearly optimistic at this stage of the game. Now, Sequoia owns 34.73 per cent of Jive Software, and Kleiner Perkins holds 13.64 per cent.

5. The net result: Jive Software may not carry the name recognition of Zynga or Groupon, but that doesn’t mean you should take your eye off the ball. B2B social media is said to be a $1 bn industry, and spectators believe that Jive’s IPO valuation could rival the value of the total market.

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Source: Forbes

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