Socialtext Continues Momentum with Increase in Profitability and Customer Adoption

Leader in Enterprise Social Software Showcases Sustainable Business Model to Accelerate Growth

February 28, 2012, Palo Alto, California

Socialtext, the leading enterprise social software provider, today announced the company continues its corporate momentum by achieving operating profitability in 2011. Through a continued dedication to customer service and developing superior technology, the company predicts an increase in profitability for 2012. With more than 6500 customers worldwide, Socialtext was the first company to deliver social software to businesses and continues to expand its reach across several industries including retail, financial services, healthcare, government, professional services, education, manufacturing and media/publishing.

“This accomplishment has proven our business model is a success,” said Eugene Lee, CEO, Socialtext. “We are dedicated to providing the best possible customer service to our clients, offering the tools and convenience necessary to maintain and grow adoption of enterprise social networking throughout the company. At Socialtext, we don’t just sell a solution; we solve efficiency problems and help employees communicate and collaborate easily and more efficiently.”

Throughout 2011, Socialtext hit several milestones in the form of:

• A cash flow positive balance sheet and Gaap profitability
• Addition of new marquis accounts such as Blue Man Group, Ericsson, New South Wales Department of Education, Isobar, Intel, National Park Service and more.
• Over 100% renewal rates and record product adoption. Active usage has more than doubled from 2010 to 2011.

The forecast for 2012 includes an increase in demand for internal collaboration platforms used as a knowledge source for employee communications. This signals a major industry shift that moves enterprise social software from trend to becoming an essential work tool. Socialtext is the only provider of enterprise social software that provides the flexibility to integrate with existing solutions to provide a fully interconnected network. By building a secure and stable foundation, Socialtext offers a platform for employees to access all internal projects, communicate, and connect with the tools and information needed to be effective. The company continues to secure partnerships with leading companies that will provide unparalleled connectivity throughout the enterprise.

About Socialtext

Established in 2002, Socialtext was the first company to deliver social software to businesses. By unlocking knowledge, expertise, ideas and data, Socialtext eliminates information silos across the enterprise to drive superior business performance. Socialtext's enterprise social networking products -- including microblogging, blogs, wikis, profiles and social spreadsheets -- provide simpler ways for employees to share vital information and work together in real-time. Delivered in a variety of hosted cloud services, as well as on-site appliances, enterprise customers are provided with flexible deployment options that meet their security requirements. Built on a flexible, web-oriented architecture, Socialtext integrates with virtually any traditional system of record, such as CRM and ERP, enabling companies to discuss, collaborate, and take action on key business processes. More than 6,500 businesses worldwide have accelerated their business performance with Socialtext, including Egon Zehnder, Getty Images, Symantec, Meredith Corporation, NYU Stern, OSIsoft, and Epitaph Records. To learn more, visit www.socialtext.com.

Designated trademarks and brands mentioned in this press release are the property of their respective owners.

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© 2012 Socialtext, Inc. All rights reserved.

As the Enterprise 2.0 leader, Socialtext applies Web 2.0 technologies such as enterprise microblogging, enterprise social networking and wikis to the critical challenges facing businesses. Socialtext's enterprise collaboration platform allows employees to share expertise, speed workflows and get their jobs done faster. Read our latest news highlights, press releases, coverage & awards, and recent and upcoming events.