Why Jive Software, Inc. Shares Plummeted

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 (NASDAQ: JIVE  ) plunged nearly 19% Wednesday after the company turned in disappointing fourth quarter results.

So what: Quarterly revenue rose 21% year-over-year to $39.3 million, which translated to an adjusted net loss of $10.7 million, or $0.16 per share. Analysts, on average, were looking for a loss of just $0.12 per share on sales of $41.21 million.

Going forward, Jive says full-year 2014 revenue is expected to be in the range of $170 million to $175 million, which should lead to an adjusted loss per share of $0.39 to $0.46. By contrast, analysts were modeling a wider 2014 adjusted loss of $0.47 per share, but on higher sales of $176 million.

Finally, Jive announced James Larson, its president of worldwide field operations, is resigning effective March 31 to be come CEO at a private, early stage company. John McCracken, current Jive senior VP of worldwide sales, will fill Larson's role until they identify a suitable replacement.

Now what: Though CEO Tony Zingale said they were "pleased to report a strong finish to 2013," it's hard to be optimistic considering the company actually posted a GAAP net loss of $22 million last quarter alone. With around $141.7 million in cash on its balance sheet, Jive does have the funds hold itself over as those losses narrow. But as Jive's share count continues to increase and with no end in sight to its red ink, I certainly can't blame investors for bidding shares down today.

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