Why Jive Software Shares Fell Flat
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Jive Software have fallen flat today, down by 22% at the low, after the company reported earnings and provided weak guidance.
So what: Revenue in the second quarter came in at $35.2 million, roughly in line with the consensus estimate. The non-GAAP net loss of $0.14 per share was slightly better than the $0.16 per share adjusted loss that investors were expecting. CEO Tony Zingale acknowledged some execution challenges and a longer sales cycle.
Now what: Guidance for the third quarter calls for sales in the range of $36 million to $37 million, which should translate into an adjusted loss of $0.14-$0.16 per share. The market was expecting over $38 million in revenue. Full-year revenue should be in the range of $144 million to $146 million.
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The article Why Jive Software Shares Fell Flat originally appeared on Fool.com.
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