Though Jive's initial stock price was $12, the company opened trading today at $15.12 per share. A total of 13.4 million shares were sold, exceeding the 11.7 million shares originally planned.
Dollars, Dollars, Dollars
The success story doesn't come as a total surprise-- Jive's been fairly vocal about the climb of its total revenue, which increased 73% to US$ 55 million in the first nine months of 2011 from the same period in 2010. This was driven primarily by new subscriptions, particularly from big customers like Hewlett-Packard, SAP, T-Mobile and investment bank UBS.
"Jive's innovative software provides companies with a powerful social business platform that is driving a new way to do business," said Bob McCooey, Senior Vice President, NASDAQ OMX Corporate Client Group. "NASDAQ is excited to welcome Jive to the NASDAQ Global Select Market and looks forward to their success as a listed company."
The company also signaled growth potential with this year's addition of four new board members, including former McAfee chairman Charles Robel, former McAfee CEO Dave DeWalt, Facebook’s vice president of technical operations Jonathan Heiliger and Google’s vice president of product management Sundar Pichai.
Meanwhile, a history of losses is also in the records and mounting expenses loom like an ominous cloud. Numerically speaking, Jive's net loss in the first nine months of the year increased to US$ 38 million from a loss of US$ 21 million in the same period in 2010.
IPO, IPO, IPO
Jive's activity kicks off a week of planned IPO action, with a total of 11 deals scheduled to make their to debut. If there are no cancellations or delays, it will be the most IPO activity since March.
While it’s still unclear when exactly Jive will achieve profitability, the company's CEO Tony Zingale remains optimistic. “We need to break even, then generate positive cash flow and generate a margin that is interesting to shareholders,” he said. “We will get to profitability at a reasonable timeframe but we have to balance this with investment in the business and growth opportunity in the market.”
In terms of product, Zangale says you can expect to see a continued focus on the advantages of big data, as well as the benefits of having communities inside and outside the enterprise.
Hopefully for Jive it's the winning combination, as there are plenty of competitors of all sizes entering the space. Microsoft Corp., Salesforce.com Inc. and Yammer are just a few.
Listen to Zingale in this TechCrunch TV segment from January 2011 as he explains why he loves his competitors’ freemium model, saying “They’re the best lead gen source we have, because the moment anyone gets serious they call Jive.”