Jive Software recorded the first profit in its history last quarter, recording a net income of $915,000 — 1 cent per share.
That’s a small number but a major milestone as the onetime Portland startup seeks to build a durable business.
Jive makes social networking tools for businesses, which companies use to communicate internally or to interact with customers. Founded 15 years ago, Jive rode fervor for social networking companies to a 2011 initial public offering that valued the company at nearly $900 million.
For a time, Jive’s stock soared – but the company struggled to find large companies to adopt its technology. As revenue growth slowed, Jive’s stock dipped.
Jive responded last year by restructuring the company, laying off 100 as it repositioned the business for profitability. It achieved that milestone in the last three months of 2016.
Jive’s revenues totaled $51.7 million in the fourth quarter of the year, up 3 percent from the prior year.
For all of 2016, Jive posted revenues of $204.1 million, up 4.2 percent from the prior year. The company lost $14.0 million last year, or 18 cents a share. That improves on a loss of $34.9 million, 46 cents a share, the prior year.
Jive forecast sales between $50 million and $51 million this quarter, roughly flat with the first quarter of 2016.
Though Jive’s headquarters are now in California, its largest operations remain in Portland. The company doesn’t disclose how many work here, but historically it has had more than 200 at its downtown office.
The company’s stock closed unchanged Tuesday at $3.95. The stock has traded between $2.84 and $4.59 in the past year.
— Mike Rogoway; twitter: @rogoway; 503-294-7699
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