Feb. 13 (Bloomberg) -- Jive Software Inc., a maker of social-networking software for businesses, reached the highest since its initial public offering after a Barron’s story over the weekend highlighted its similarities to Facebook Inc.
Jive rose 8.6 percent to $18.54 at the close in New York. The Palo Alto, California-based company debuted Dec. 13 at $12 a share and has advanced 55 percent since then.
The company is tapping corporate demand for Facebook-style tools that help employees communicate internally and with customers. Jive, which added customers DirecTV and Allianz in the fourth quarter, bolstered spending on sales and marketing by 61 percent during the period.
“This is a company with many tie-ins to Facebook and social media,” said Cindy Profaca, a managing director with IPOfinancial.com in Millburn, New Jersey. Jive has “been around since 2001, so they’ve navigated some pretty rough waters in the sector,” said Profaca, who recommends buying the shares.
The Barron’s story said Jive is sometimes known as the “other” social networking company.
The company on Feb. 7 posted its first earnings report since its IPO. Revenue in the fourth quarter increased 53 percent to $22.5 million compared with a year earlier. Analysts had estimated $21 million.
Jive reported a wider loss of 28 cents on an adjusted basis, compared with 25 cents a year earlier. Analysts had predicted a loss of 39 cents. Jive forecast first-quarter revenue of as much as $24.5 million. Analysts had predicted $22.9 million.
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