Third fiscal quarter highlights include:
Bazaarvoice, Inc. (Nasdaq:BV) reported its financial results
for the third fiscal quarter ended January 31, 2017.
“I am pleased with the overall progress we are
making to transform the business, highlighted by continued
improvement in our SaaS client and dollar retention, as well as 37%
year over year advertising revenue growth in the third quarter,"
said Gene Austin, chief executive officer and president. “We are in
the early stages of leveraging our three strategic assets including
our CGC expertise, our growing network and our unique shopper data,
and are excited that our revenue growth rates should increase next
fiscal year."
Third Fiscal Quarter of 2017 Financial
Details
Revenue: Bazaarvoice reported revenue
of $50.5 million for the third fiscal quarter of 2017, up
1% from the third fiscal quarter of 2016, which consisted of SaaS
revenue of $47.3 million and net advertising revenue
of $3.2 million.
GAAP net loss and net loss per
share: GAAP net loss was $2.7 million, compared to a
GAAP net loss of $3.1 million for the third fiscal
quarter of 2016. GAAP net loss per share was $0.03 based
upon weighted average shares outstanding of 83.3 million, compared
to a GAAP net loss per share of $0.04 for the third
fiscal quarter of 2016 based upon weighted average shares
outstanding of 81.1 million.
Adjusted EBITDA: Adjusted
EBITDA for the third fiscal quarter of 2017 was $5.3 million
compared to $5.0 million for the third fiscal quarter of 2016.
During the first quarter of fiscal 2017 we updated our definition
of Adjusted EBITDA to enhance comparability between ourselves and
our peers. For a reconciliation of Adjusted EBITDA as
previously defined to Adjusted EBITDA under our updated definition
refer to Note 6 of the “Selected Quarterly Financial and
Operational Metrics” table contained herein.
Non-GAAP net income and earnings per
share: Non-GAAP net income was $1.8 million, compared
to non-GAAP net income of $1.5 million for the third
fiscal quarter of 2016. Non-GAAP earnings per share was $0.02
based upon weighted average shares outstanding of 83.3 million,
compared to non-GAAP earnings per share of $0.02 for the
third fiscal quarter of 2016 based upon weighted average shares
outstanding of 81.1 million.
Quarterly Conference Call
Bazaarvoice will host a conference call
today at 4:30 p.m. Eastern Time to review the Company’s
financial results for the third fiscal quarter of 2017. To access
this call, dial (877) 407-3982 from the United
States or (201) 493-6780 internationally. A live webcast
of the conference call can be accessed from the investor relations
page of Bazaarvoice’s company website
at investors.bazaarvoice.com. Following the completion of the
call, a recorded replay will be available on the Company’s website,
and a telephone replay will be available through March 14, 2017 by
dialing (844) 512-2921 from the United States or
(412) 317-6671 internationally with recording access code
13654335.
About Bazaarvoice
Bazaarvoice helps brands and retailers find and
reach consumers, and win them with the content they trust. Each
month in the Bazaarvoice Network, more than one-half billion
consumers view and share authentic consumer-generated content
(CGC), including ratings and reviews as well as curated visual
content, across 5,000 brand and retail websites. This visibility
into shopper behavior allows Bazaarvoice to capture unique
first-party data and insights that fuel our targeted advertising
and personalization solutions.
Founded in 2005, Bazaarvoice is headquartered in
Austin, Texas with offices across North America and Europe. For
more information, visit www.bazaarvoice.com.
Non-GAAP Financial Measures
During the first quarter of fiscal 2017 we
updated our definition of Adjusted EBITDA to enhance comparability
between ourselves and our peers. We define Adjusted EBITDA as
GAAP net loss adjusted for stock-based expense, contingent
consideration related to acquisitions, depreciation and
amortization (including amortization of capitalized internal-use
software development costs), restructuring charges, integration and
other costs related to acquisitions, other non-business costs and
benefits, income tax expense and other (income) expense, net.
Our previous definition of Adjusted EBITDA excluded amortization of
capitalized internal-use software development costs from adjusted
depreciation and amortization and included capitalized stock-based
compensation in stock-based expense. For a reconciliation of
Adjusted EBITDA as previously defined to Adjusted EBITDA under our
updated definition refer to Note 6 of the “Selected Quarterly
Financial and Operational Metrics” table contained herein.
Adjusted EBITDA discussed in this press release
is defined as our GAAP net loss adjusted for stock-based expense,
contingent consideration related to acquisitions, depreciation and
amortization (including amortization of capitalized internal-use
software development costs), integration and other costs related to
acquisitions, other non-business costs and benefits, income tax
expense and other (income) expense, net.
GAAP net loss is the most
comparable GAAP measure to Adjusted EBITDA.
Non-GAAP net loss, which is used to calculate
non-GAAP net loss per share, is defined as our GAAP net loss,
adjusted to exclude stock-based expense, contingent consideration
related to acquisitions, amortization of acquired intangible
assets, integration and other costs related to acquisitions, and
other non-business costs and benefits along with the associated
income tax effect of these adjustments.
Management presents these non-GAAP financial
measures because it considers them to be important supplemental
measures of core operating performance. Management uses the
non-GAAP financial measures for planning purposes, including
analysis of the Company’s operating performance against prior
periods and the effectiveness of our business strategies, the
preparation of operating budgets and to determine appropriate
levels of operating and capital investments, as well as in
communications with our board of directors concerning our financial
performance. Management also believes that the non-GAAP financial
measures provide additional insight for securities analysts and
investors in evaluating the Company’s financial and operational
performance without regard to items that can vary substantially
from company to company depending upon their financing, capital
structures, and the method by which assets were acquired. However,
these non-GAAP financial measures have limitations as an analytical
tool, and you should not consider them in isolation or as a
substitute for analysis of our results of operations as reported
under GAAP. Furthermore, these non-GAAP financial measures may not
be comparable to similarly titled measures of other organizations
because other organizations may not calculate these non-GAAP
financial measures in the same manner. We intend to provide these
non-GAAP financial measures as part of our future financial results
discussions; therefore, the inclusion of these non-GAAP financial
measures will provide consistency in our financial reporting. A
reconciliation of these non-GAAP measures to GAAP is provided in
the accompanying tables.
Forward-looking Statements
This press release contains forward-looking
statements that involve substantial risks and uncertainties. All
statements, other than statements of historical facts, included in
this press release regarding our strategy, future operations,
future financial position, future revenue, projected costs,
prospects, plans, and objectives of management are forward-looking
statements. The words “anticipate,” “believe,” “estimate,”
“expect,” “intend,” “may,” “plan,” “will,” “would,” “target” and
similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
these identifying words. These forward-looking statements include,
among other things, statements about driving future improvements in
profitability, monetizing the Bazaarvoice network and driving
revenue growth over the long term and other statements about
management’s beliefs, intentions or goals. We may not actually
achieve the expectations disclosed in the forward-looking
statements, and you should not place undue reliance on our
forward-looking statements. These forward-looking statements
involve risks and uncertainties that could cause actual results or
events to differ materially from the expectations disclosed in the
forward-looking statements, including, but not limited to, our
expectations regarding our revenue, expenses, sales and operations;
changes in accounting standards; our ability to realize
efficiencies and to execute on our strategic initiatives; our
limited operating history; our ability to operate in a new and
unproven market; our ability to effectively manage growth; our
ability to develop and launch new products; risks associated with
the uncertainty of market acceptance of our new products; our
ability to retain our existing customers and satisfy their
obligations and needs and upsell to existing clients; our ability
to attract and retain employees; our ability to maintain pricing
for our products and services; our ability to manage expansion into
new vertical industries; our ability to reduce our cost structure
and improve operating efficiencies; and the effects of
increased competition and commoditization of products we offer,
including pricing pressure, reduced profitability or loss of market
share; risks and challenges associated with international sales;
our ability to successfully identify, manage and integrate
potential acquisitions; the impact of the Department of Justice
stipulation regarding PowerReviews on our business; and other risks
and potential factors that could affect our business and financial
results identified in our Form 10-K for the fiscal year ended
April 30, 2016 as filed with the Securities and Exchange
Commission on June 20, 2016. Additional information will also
be set forth in our future quarterly reports on Form 10-Q,
annual reports on Form 10-K and other filings that we make
with the Securities and Exchange Commission. We do not intend and
undertake no duty to release publicly any updates or revisions to
any forward-looking statements contained herein.
Bazaarvoice, Inc. |
Condensed Consolidated Balance
Sheets |
(in thousands) |
(unaudited) |
|
|
January 31, 2017 |
|
April 30, 2016 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
38,287 |
|
|
$ |
43,963 |
|
Short-term investments |
45,207 |
|
|
50,682 |
|
Accounts
receivable, net |
51,624 |
|
|
39,597 |
|
Prepaid
expenses and other current assets |
9,567 |
|
|
8,415 |
|
Total current
assets |
144,685 |
|
|
142,657 |
|
Property, equipment and
capitalized internal-use software development costs, net |
29,160 |
|
|
31,649 |
|
Goodwill |
139,155 |
|
|
139,155 |
|
Acquired intangible
assets, net |
8,190 |
|
|
9,607 |
|
Other non-current
assets |
4,003 |
|
|
5,214 |
|
Total assets |
$ |
325,193 |
|
|
$ |
328,282 |
|
Liabilities and
stockholders’ equity |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
4,775 |
|
|
$ |
6,110 |
|
Accrued
expenses and other current liabilities |
18,314 |
|
|
23,167 |
|
Revolving
line of credit |
37,000 |
|
|
— |
|
Deferred
revenue |
71,163 |
|
|
62,735 |
|
Total current
liabilities |
131,252 |
|
|
92,012 |
|
Long-term
liabilities: |
|
|
|
Revolving
line of credit |
— |
|
|
42,000 |
|
Deferred
revenue less current portion |
2,500 |
|
|
2,481 |
|
Other
liabilities, long-term |
6,726 |
|
|
7,255 |
|
Total liabilities |
140,478 |
|
|
143,748 |
|
Commitments and
contingencies |
|
|
|
Stockholders’
equity: |
|
|
|
Common
stock |
8 |
|
|
8 |
|
Additional paid-in capital |
450,418 |
|
|
437,239 |
|
Accumulated other comprehensive loss |
(1,909 |
) |
|
(878 |
) |
Accumulated deficit |
(263,802 |
) |
|
(251,835 |
) |
Total stockholders’
equity |
184,715 |
|
|
184,534 |
|
Total liabilities and
stockholders’ equity |
$ |
325,193 |
|
|
$ |
328,282 |
|
Bazaarvoice, Inc. |
Condensed Consolidated Statements of
Operations |
(in thousands, except net loss per share
data) |
(unaudited) |
|
|
Three Months Ended January 31, |
|
Nine Months Ended January 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenue |
$ |
50,525 |
|
|
$ |
50,255 |
|
|
$ |
151,026 |
|
|
$ |
149,057 |
|
Cost of revenue |
19,196 |
|
|
18,920 |
|
|
56,807 |
|
|
57,614 |
|
Gross profit |
31,329 |
|
|
31,335 |
|
|
94,219 |
|
|
91,443 |
|
Operating
expenses: |
|
|
|
|
|
|
|
Sales and
marketing |
16,322 |
|
|
16,113 |
|
|
47,445 |
|
|
51,781 |
|
Research
and development |
9,588 |
|
|
10,199 |
|
|
30,620 |
|
|
31,086 |
|
General
and administrative |
7,299 |
|
|
6,940 |
|
|
23,609 |
|
|
22,821 |
|
Restructuring charges |
— |
|
|
— |
|
|
1,094 |
|
|
— |
|
Acquisition-related and other |
84 |
|
|
332 |
|
|
380 |
|
|
1,258 |
|
Amortization of acquired intangible assets |
309 |
|
|
309 |
|
|
928 |
|
|
928 |
|
Total operating
expenses |
33,602 |
|
|
33,893 |
|
|
104,076 |
|
|
107,874 |
|
Operating loss |
(2,273 |
) |
|
(2,558 |
) |
|
(9,857 |
) |
|
(16,431 |
) |
Other income (expense),
net: |
|
|
|
|
|
|
|
Interest
income |
150 |
|
|
124 |
|
|
445 |
|
|
275 |
|
Interest
expense |
(450 |
) |
|
(596 |
) |
|
(1,398 |
) |
|
(1,628 |
) |
Other
expense |
(32 |
) |
|
(247 |
) |
|
(807 |
) |
|
(553 |
) |
Total other expense,
net |
(332 |
) |
|
(719 |
) |
|
(1,760 |
) |
|
(1,906 |
) |
Loss before income
taxes |
(2,605 |
) |
|
(3,277 |
) |
|
(11,617 |
) |
|
(18,337 |
) |
Income tax expense
(benefit) |
123 |
|
|
(163 |
) |
|
350 |
|
|
(127 |
) |
Net loss |
$ |
(2,728 |
) |
|
$ |
(3,114 |
) |
|
$ |
(11,967 |
) |
|
$ |
(18,210 |
) |
Net loss per share,
basic and diluted |
$ |
(0.03 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.23 |
) |
Basic and diluted
weighted average number of shares outstanding |
83,348 |
|
|
81,096 |
|
|
82,830 |
|
|
80,649 |
|
Bazaarvoice, Inc. |
Condensed Consolidated Statements of Cash
Flows |
(in thousands) |
(unaudited) |
|
|
Three Months Ended January 31, |
|
Nine Months Ended January 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Operating
activities: |
|
|
|
|
|
|
|
Net
loss |
$ |
(2,728 |
) |
|
$ |
(3,114 |
) |
|
$ |
(11,967 |
) |
|
$ |
(18,210 |
) |
Adjustments to reconcile net loss to net cash provided by (used in)
operating activities: |
|
|
|
|
|
|
|
Depreciation and amortization expense |
3,513 |
|
|
3,509 |
|
|
10,623 |
|
|
10,487 |
|
Stock-based expense |
3,989 |
|
|
3,762 |
|
|
12,172 |
|
|
11,484 |
|
Bad debt
recovery |
— |
|
|
(326 |
) |
|
(243 |
) |
|
(265 |
) |
Amortization of deferred financing costs |
58 |
|
|
58 |
|
|
176 |
|
|
176 |
|
Loss on
sublease |
— |
|
|
— |
|
|
501 |
|
|
— |
|
Other
non-cash expense |
(45 |
) |
|
37 |
|
|
(172 |
) |
|
82 |
|
Changes
in operating assets and liabilities: |
|
|
|
|
|
|
|
Accounts
receivable |
(14,129 |
) |
|
(1,227 |
) |
|
(11,784 |
) |
|
10,715 |
|
Prepaid
expenses and other current assets |
(301 |
) |
|
(1,456 |
) |
|
(815 |
) |
|
(479 |
) |
Other
non-current assets |
(96 |
) |
|
(38 |
) |
|
862 |
|
|
(968 |
) |
Accounts
payable |
1,091 |
|
|
(352 |
) |
|
(1,313 |
) |
|
1,797 |
|
Accrued
expenses and other current liabilities |
(856 |
) |
|
870 |
|
|
(5,425 |
) |
|
(5,138 |
) |
Deferred
revenue |
8,535 |
|
|
4,075 |
|
|
8,447 |
|
|
225 |
|
Other
liabilities, long-term |
(156 |
) |
|
2,079 |
|
|
(468 |
) |
|
5,039 |
|
Net cash provided by
(used in) operating activities |
(1,125 |
) |
|
7,877 |
|
|
594 |
|
|
14,945 |
|
Investing
activities: |
|
|
|
|
|
|
|
Proceeds
from sale of discontinued operations |
— |
|
|
— |
|
|
— |
|
|
4,501 |
|
Purchases
of property, equipment and capitalized internal-use software
development costs |
(2,115 |
) |
|
(9,203 |
) |
|
(6,988 |
) |
|
(19,422 |
) |
Purchases
of short-term investments |
(21,855 |
) |
|
(13,612 |
) |
|
(36,895 |
) |
|
(53,467 |
) |
Proceeds
from maturities of short-term investments |
18,260 |
|
|
14,500 |
|
|
42,140 |
|
|
55,017 |
|
Net cash used in
investing activities |
(5,710 |
) |
|
(8,315 |
) |
|
(1,743 |
) |
|
(13,371 |
) |
Financing
activities: |
|
|
|
|
|
|
|
Proceeds
from employee stock compensation plans |
573 |
|
|
664 |
|
|
1,297 |
|
|
2,777 |
|
Payments
on revolving line of credit |
— |
|
|
— |
|
|
(5,000 |
) |
|
— |
|
Net cash provided by
(used in) financing activities |
573 |
|
|
664 |
|
|
(3,703 |
) |
|
2,777 |
|
Effect of exchange rate
fluctuations on cash and cash equivalents |
122 |
|
|
(354 |
) |
|
(824 |
) |
|
(448 |
) |
Net change in cash and
cash equivalents |
(6,140 |
) |
|
(128 |
) |
|
(5,676 |
) |
|
3,903 |
|
Cash and cash
equivalents at beginning of period |
44,427 |
|
|
58,072 |
|
|
43,963 |
|
|
54,041 |
|
Cash and cash
equivalents at end of period |
$ |
38,287 |
|
|
$ |
57,944 |
|
|
$ |
38,287 |
|
|
$ |
57,944 |
|
Supplemental
disclosure of non-cash investing and financing
activities: |
|
|
|
|
|
|
|
Purchase
of fixed assets recorded in accounts payable |
$ |
— |
|
|
$ |
318 |
|
|
$ |
— |
|
|
$ |
318 |
|
Asset
retirement obligation costs incurred |
$ |
— |
|
|
$ |
100 |
|
|
$ |
— |
|
|
$ |
100 |
|
Capitalized stock-based compensation |
$ |
119 |
|
|
$ |
130 |
|
|
$ |
365 |
|
|
$ |
366 |
|
Bazaarvoice, Inc. |
Reconciliation of GAAP to Non-GAAP Financial
Measures |
(in thousands, except net loss per share
data) |
(unaudited) |
|
|
Three Months Ended January 31, |
|
Nine Months Ended January 31, |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Non-GAAP net income
(loss) per share: |
|
|
|
|
|
|
|
GAAP net
loss |
$ |
(2,728 |
) |
|
$ |
(3,114 |
) |
|
$ |
(11,967 |
) |
|
$ |
(18,210 |
) |
Stock-based expense (1) |
3,989 |
|
|
3,762 |
|
|
12,172 |
|
|
11,484 |
|
Restructuring charges (3) |
— |
|
|
— |
|
|
1,094 |
|
|
— |
|
Amortization of acquired intangible assets |
473 |
|
|
473 |
|
|
1,418 |
|
|
1,418 |
|
Acquisition-related and other expense |
84 |
|
|
332 |
|
|
380 |
|
|
1,258 |
|
Other
stock-related benefit (4) |
— |
|
|
— |
|
|
(25 |
) |
|
— |
|
Non-GAAP net income
(loss) |
$ |
1,818 |
|
|
$ |
1,453 |
|
|
$ |
3,072 |
|
|
$ |
(4,050 |
) |
GAAP
basic and diluted shares |
83,348 |
|
|
81,096 |
|
|
82,830 |
|
|
80,649 |
|
Non-GAAP basic and
diluted net income (loss) per share |
$ |
0.02 |
|
|
$ |
0.02 |
|
|
$ |
0.04 |
|
|
$ |
(0.05 |
) |
Adjusted EBITDA: |
|
|
|
|
|
|
|
GAAP net
loss |
$ |
(2,728 |
) |
|
$ |
(3,114 |
) |
|
$ |
(11,967 |
) |
|
$ |
(18,210 |
) |
Stock-based expense (1) |
3,989 |
|
|
3,762 |
|
|
12,172 |
|
|
11,484 |
|
Depreciation and amortization (2) |
3,513 |
|
|
3,512 |
|
|
10,623 |
|
|
10,490 |
|
Restructuring charges (3) |
— |
|
|
— |
|
|
1,094 |
|
|
— |
|
Acquisition-related and other expense |
84 |
|
|
332 |
|
|
380 |
|
|
1,258 |
|
Other
stock-related benefit (4) |
— |
|
|
— |
|
|
(25 |
) |
|
— |
|
Income
tax expense (benefit) |
123 |
|
|
(163 |
) |
|
350 |
|
|
(127 |
) |
Total
other expense, net |
332 |
|
|
719 |
|
|
1,760 |
|
|
1,906 |
|
Adjusted EBITDA |
$ |
5,313 |
|
|
$ |
5,048 |
|
|
$ |
14,387 |
|
|
$ |
6,801 |
|
|
(1)
During the first quarter of fiscal 2017 we updated our
calculation of Adjusted EBITDA. As a result of this update prior
period stock compensation amounts have been updated to conform to
the current presentation. Under the new definition of Adjusted
EBITDA the capitalized portion of stock-based compensation related
to the capitalization of internal-use software is excluded from
stock-based expense. |
|
Stock-based expense
includes the following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
$ |
475 |
|
|
$ |
585 |
|
|
$ |
1,305 |
|
|
$ |
1,664 |
|
Sales and
marketing |
|
850 |
|
|
|
686 |
|
|
|
2,273 |
|
|
|
2,413 |
|
Research
and development |
|
867 |
|
|
|
786 |
|
|
|
2,827 |
|
|
|
2,227 |
|
General
and administrative |
|
1,797 |
|
|
|
1,705 |
|
|
|
5,767 |
|
|
|
5,180 |
|
Stock-based
expense |
$ |
3,989 |
|
|
$ |
3,762 |
|
|
$ |
12,172 |
|
|
$ |
11,484 |
|
|
(2) During
the first quarter of fiscal 2017 we updated our calculation of
Adjusted EBITDA. As a result of this update prior period
depreciation and amortization amounts have been updated to conform
to the current presentation. Our new definition of Adjusted EBITDA
includes amortization of capitalized internal-use software
development costs in depreciation and amortization. |
|
Depreciation and
amortization includes the following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
$ |
2,601 |
|
|
$ |
2,559 |
|
|
$ |
7,793 |
|
|
$ |
7,597 |
|
Sales and
marketing |
|
183 |
|
|
|
210 |
|
|
|
568 |
|
|
|
756 |
|
Research
and development |
|
194 |
|
|
|
228 |
|
|
|
629 |
|
|
|
612 |
|
General
and administrative |
|
226 |
|
|
|
206 |
|
|
|
705 |
|
|
|
597 |
|
Amortization of acquired intangible assets |
|
309 |
|
|
|
309 |
|
|
|
928 |
|
|
|
928 |
|
Depreciation and
amortization |
$ |
3,513 |
|
|
$ |
3,512 |
|
|
$ |
10,623 |
|
|
$ |
10,490 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3) In
February 2016, the Company made the decision to suspend sales of
its BV Local product, reduce its cost structure to improve
operating efficiencies and align resources with its growth
strategies. Costs associated with these restructuring activities
include workforce reductions charges, and facilities charges
related to the loss recorded on the sub-lease of excess office
space at the Company's headquarters. |
|
(4)
Other stock-related benefit represents estimated liabilities for
taxes and related items in connection with the treatment of certain
equity grants. Since the estimated liability directly relates to
equity grants and as stock-based expenses are consistently excluded
from the non-GAAP financial measures, the Company excluded these
estimated liabilities. During the nine months ended January 31,
2017, the Company recorded a benefit of $0.5 million due to a
reduction in previously recorded estimated tax liabilities that
have exceeded the statute of limitations. This benefit was
partially offset by a $0.5 million liability related to estimated
employer contributions the Company expects to make on behalf of its
employees related to 401(k) deferrals on employee stock-based
compensation. |
Bazaarvoice, Inc. |
Selected Quarterly Financial and Operational
Metrics |
(in thousands, except active clients and
full-time employees data) |
(unaudited) |
|
|
Three Months Ended |
|
Apr 30,2015 |
|
Jul 31,2015 |
|
Oct 31,2015 |
|
Jan 31, 2016 |
|
Apr 30, 2016 |
|
Jul 31,2016 |
|
Oct 31,2016 |
|
Jan 31,2017 |
Revenue (1) |
$ |
48,317 |
|
|
$ |
48,876 |
|
|
$ |
49,926 |
|
|
$ |
50,255 |
|
|
$ |
50,709 |
|
|
$ |
50,093 |
|
|
$ |
50,408 |
|
|
$ |
50,525 |
|
Cost of revenue |
18,148 |
|
|
19,548 |
|
|
19,146 |
|
|
18,920 |
|
|
19,253 |
|
|
18,756 |
|
|
18,855 |
|
|
19,196 |
|
Gross profit |
30,169 |
|
|
29,328 |
|
|
30,780 |
|
|
31,335 |
|
|
31,456 |
|
|
31,337 |
|
|
31,553 |
|
|
31,329 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing |
20,427 |
|
|
19,166 |
|
|
16,502 |
|
|
16,113 |
|
|
18,027 |
|
|
15,304 |
|
|
15,819 |
|
|
16,322 |
|
Research
and development |
9,880 |
|
|
10,533 |
|
|
10,354 |
|
|
10,199 |
|
|
10,391 |
|
|
11,073 |
|
|
9,959 |
|
|
9,588 |
|
General
and administrative |
7,582 |
|
|
8,238 |
|
|
7,643 |
|
|
6,940 |
|
|
7,577 |
|
|
8,259 |
|
|
8,051 |
|
|
7,299 |
|
Restructuring charges |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,575 |
|
|
327 |
|
|
767 |
|
|
— |
|
Acquisition-related and other expense |
815 |
|
|
702 |
|
|
224 |
|
|
332 |
|
|
157 |
|
|
176 |
|
|
120 |
|
|
84 |
|
Amortization of acquired intangible assets |
309 |
|
|
309 |
|
|
310 |
|
|
309 |
|
|
309 |
|
|
309 |
|
|
310 |
|
|
309 |
|
Total operating
expenses |
39,013 |
|
|
38,948 |
|
|
35,033 |
|
|
33,893 |
|
|
38,036 |
|
|
35,448 |
|
|
35,026 |
|
|
33,602 |
|
Operating loss |
(8,844 |
) |
|
(9,620 |
) |
|
(4,253 |
) |
|
(2,558 |
) |
|
(6,580 |
) |
|
(4,111 |
) |
|
(3,473 |
) |
|
(2,273 |
) |
Total
other expense, net |
(521 |
) |
|
(712 |
) |
|
(475 |
) |
|
(719 |
) |
|
(384 |
) |
|
(859 |
) |
|
(569 |
) |
|
(332 |
) |
Loss before income
taxes |
(9,365 |
) |
|
(10,332 |
) |
|
(4,728 |
) |
|
(3,277 |
) |
|
(6,964 |
) |
|
(4,970 |
) |
|
(4,042 |
) |
|
(2,605 |
) |
Income
tax expense (benefit) |
(540 |
) |
|
(88 |
) |
|
124 |
|
|
(163 |
) |
|
165 |
|
|
135 |
|
|
92 |
|
|
123 |
|
Net loss |
$ |
(8,825 |
) |
|
$ |
(10,244 |
) |
|
$ |
(4,852 |
) |
|
$ |
(3,114 |
) |
|
$ |
(7,129 |
) |
|
$ |
(5,105 |
) |
|
$ |
(4,134 |
) |
|
$ |
(2,728 |
) |
Stock-based expense (2) |
$ |
3,020 |
|
|
$ |
3,935 |
|
|
$ |
3,787 |
|
|
$ |
3,762 |
|
|
$ |
3,602 |
|
|
$ |
3,944 |
|
|
$ |
4,239 |
|
|
$ |
3,989 |
|
Depreciation and amortization (3) |
3,284 |
|
|
3,644 |
|
|
3,334 |
|
|
3,512 |
|
|
3,549 |
|
|
3,578 |
|
|
3,532 |
|
|
3,513 |
|
Restructuring charges (4) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,575 |
|
|
327 |
|
|
767 |
|
|
— |
|
Acquisition-related and other expense |
815 |
|
|
702 |
|
|
224 |
|
|
332 |
|
|
157 |
|
|
176 |
|
|
120 |
|
|
84 |
|
Other
stock-related benefit (5) |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(25 |
) |
|
— |
|
Income
tax expense (benefit) |
(540 |
) |
|
(88 |
) |
|
124 |
|
|
(163 |
) |
|
165 |
|
|
135 |
|
|
92 |
|
|
123 |
|
Total
other expense, net |
521 |
|
|
712 |
|
|
475 |
|
|
719 |
|
|
384 |
|
|
859 |
|
|
569 |
|
|
332 |
|
Adjusted EBITDA
(6) |
$ |
(1,725 |
) |
|
$ |
(1,339 |
) |
|
$ |
3,092 |
|
|
$ |
5,048 |
|
|
$ |
2,303 |
|
|
$ |
3,914 |
|
|
$ |
5,160 |
|
|
$ |
5,313 |
|
Number of active
clients (at period end) (7) |
1,331 |
|
|
1,337 |
|
|
1,360 |
|
|
1,383 |
|
|
1,399 |
|
|
1,397 |
|
|
1,412 |
|
|
1,456 |
|
Full-time employees (at
period end) |
826 |
|
|
834 |
|
|
855 |
|
|
817 |
|
|
756 |
|
|
766 |
|
|
775 |
|
|
777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue includes the
following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SaaS |
$ |
46,173 |
|
|
$ |
46,830 |
|
|
$ |
47,671 |
|
|
$ |
47,884 |
|
|
$ |
49,108 |
|
|
$ |
47,799 |
|
|
$ |
48,121 |
|
|
$ |
47,266 |
|
Advertising |
2,144 |
|
|
2,046 |
|
|
2,255 |
|
|
2,371 |
|
|
1,601 |
|
|
2,294 |
|
|
2,287 |
|
|
3,259 |
|
Revenue |
$ |
48,317 |
|
|
$ |
48,876 |
|
|
$ |
49,926 |
|
|
$ |
50,255 |
|
|
$ |
50,709 |
|
|
$ |
50,093 |
|
|
$ |
50,408 |
|
|
$ |
50,525 |
|
|
(2) During
the first quarter of fiscal 2017 we updated our calculation of
Adjusted EBITDA. As a result of this update prior period stock
compensation amounts have been updated to conform to the current
presentation. Under the new definition of Adjusted EBITDA the
capitalized portion of stock-based compensation related to the
capitalization of internal-use software is excluded from
stock-based expense. |
|
|
Three Months Ended |
|
Apr 30,2015 |
|
Jul 31,2015 |
|
Oct 31,2015 |
|
Jan 31,2016 |
|
Apr 30,2016 |
|
Jul 31,2016 |
|
Oct 31,2016 |
|
Jan 31,2017 |
Stock-based expense
includes the following |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
$ |
|
|
294 |
|
|
$ |
|
|
472 |
|
|
$ |
|
|
607 |
|
|
$ |
|
|
585 |
|
|
$ |
|
|
503 |
|
|
$ |
|
|
344 |
|
|
$ |
|
|
486 |
|
|
$ |
|
|
475 |
|
Sales and
marketing |
|
|
|
950 |
|
|
|
|
|
1,084 |
|
|
|
|
|
643 |
|
|
|
|
|
686 |
|
|
|
|
|
543 |
|
|
|
|
|
580 |
|
|
|
|
|
843 |
|
|
|
|
|
850 |
|
Research
and development |
|
|
|
614 |
|
|
|
|
|
643 |
|
|
|
|
|
798 |
|
|
|
|
|
786 |
|
|
|
|
|
769 |
|
|
|
|
|
1,053 |
|
|
|
|
|
907 |
|
|
|
|
|
867 |
|
General
and administrative |
|
|
|
1,162 |
|
|
|
|
|
1,736 |
|
|
|
|
|
1,739 |
|
|
|
|
|
1,705 |
|
|
|
|
|
1,787 |
|
|
|
|
|
1,967 |
|
|
|
|
|
2,003 |
|
|
|
|
|
1,797 |
|
General and
administrative |
$ |
3,020 |
|
|
$ |
3,935 |
|
|
$ |
3,787 |
|
|
$ |
3,762 |
|
|
$ |
3,602 |
|
|
$ |
3,944 |
|
|
$ |
4,239 |
|
|
$ |
3,989 |
|
|
(3) During
the first quarter of fiscal 2017 we updated our calculation of
Adjusted EBITDA. As a result of this update prior period
depreciation and amortization amounts have been updated to conform
to the current presentation. Our new definition of Adjusted EBITDA
includes amortization of capitalized internal-use software
development costs in depreciation and amortization. |
|
Depreciation and
amortization includes the following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue |
$ |
|
|
2,340 |
|
|
$ |
|
|
2,558 |
|
|
$ |
|
|
2,480 |
|
|
$ |
|
|
2,559 |
|
|
$ |
|
|
2,593 |
|
|
$ |
|
|
2,592 |
|
|
$ |
|
|
2,600 |
|
|
$ |
|
|
2,601 |
|
Sales and
marketing |
|
|
|
220 |
|
|
|
|
|
349 |
|
|
|
|
|
197 |
|
|
|
|
|
210 |
|
|
|
|
|
201 |
|
|
|
|
|
196 |
|
|
|
|
|
189 |
|
|
|
|
|
183 |
|
Research
and development |
|
|
|
181 |
|
|
|
|
|
209 |
|
|
|
|
|
175 |
|
|
|
|
|
228 |
|
|
|
|
|
227 |
|
|
|
|
|
231 |
|
|
|
|
|
204 |
|
|
|
|
|
194 |
|
General
and administrative |
|
|
|
234 |
|
|
|
|
|
220 |
|
|
|
|
|
171 |
|
|
|
|
|
206 |
|
|
|
|
|
219 |
|
|
|
|
|
250 |
|
|
|
|
|
229 |
|
|
|
|
|
226 |
|
Amortization of acquired intangible assets |
|
|
|
309 |
|
|
|
|
|
308 |
|
|
|
|
|
311 |
|
|
|
|
|
309 |
|
|
|
|
|
309 |
|
|
|
|
|
309 |
|
|
|
|
|
310 |
|
|
|
|
|
309 |
|
Depreciation and
amortization |
$ |
|
|
3,284 |
|
|
$ |
|
|
3,644 |
|
|
$ |
|
|
3,334 |
|
|
$ |
|
|
3,512 |
|
|
$ |
|
|
3,549 |
|
|
$ |
|
|
3,578 |
|
|
$ |
|
|
3,532 |
|
|
$ |
|
|
3,513 |
|
|
(4) In
February 2016, the Company made the decision to suspend sales of
its BV Local product, reduce its cost structure to improve
operating efficiencies and align resources with its growth
strategies. Costs associated with these restructuring activities
include workforce reductions charges, and facilities charges
related to the loss recorded on the sub-lease of excess office
space at the Company's headquarters. |
|
(5) Other
stock-related benefit represents estimated liabilities for taxes
and related items in connection with the treatment of certain
equity grants. Since the estimated liability directly relates to
equity grants and as stock-based expenses are consistently excluded
from the non-GAAP financial measures, the Company excluded these
estimated liabilities. During the three months ended October 31,
2016, the Company recorded a benefit of $0.5 million due to a
reduction in previously recorded estimated tax liabilities that
have exceeded the statute of limitations. This benefit was
partially offset by a $0.5 million liability related to estimated
employer contributions the Company expects to make on behalf of its
employees related to 401(k) deferrals on employee stock-based
compensation. |
|
(6) During
the first quarter of fiscal 2017 we updated our calculation of
Adjusted EBITDA. As a result of this update prior period
depreciation and amortization amounts have been updated to conform
to the current presentation. Our new definition of Adjusted EBITDA
includes amortization of capitalized internal-use software
development costs in depreciation and amortization and excludes
capitalized stock-based compensation related to internal-use
software from stock-based expense. The following table presents a
reconciliation of Adjusted EBITDA as previously defined to Adjusted
EBITDA under the updated definition: |
|
|
Three Months Ended |
|
Apr 30,2015 |
|
Jul 31,2015 |
|
Oct 31,2015 |
|
Jan 31,2016 |
|
Apr 30,2016 |
|
Jul 31,2016 |
|
Oct 31,2016 |
|
Jan 31,2017 |
Adjusted EBITDA,
previous definition |
$ |
|
|
(3,567 |
) |
|
$ |
|
|
(3,269 |
) |
|
$ |
|
|
1,135 |
|
|
$ |
|
|
3,075 |
|
|
$ |
|
|
277 |
|
|
$ |
|
|
1,874 |
|
|
$ |
|
|
3,114 |
|
|
$ |
|
|
3,259 |
|
Add:
Amortization of capitalized internal-use software development
costs |
|
|
|
1,935 |
|
|
|
|
|
2,044 |
|
|
|
|
|
2,079 |
|
|
|
|
|
2,103 |
|
|
|
|
|
2,148 |
|
|
|
|
|
2,162 |
|
|
|
|
|
2,170 |
|
|
|
|
|
2,173 |
|
Less:
Capitalized portion of stock-based compensation |
|
|
|
(93 |
) |
|
|
|
|
(114 |
) |
|
|
|
|
(122 |
) |
|
|
|
|
(130 |
) |
|
|
|
|
(122 |
) |
|
|
|
|
(122 |
) |
|
|
|
|
(124 |
) |
|
|
|
|
(119 |
) |
Adjusted EBITDA,
current definition |
$ |
|
|
(1,725 |
) |
|
$ |
|
|
(1,339 |
) |
|
$ |
|
|
3,092 |
|
|
$ |
|
|
5,048 |
|
|
$ |
|
|
2,303 |
|
|
$ |
|
|
3,914 |
|
|
$ |
|
|
5,160 |
|
|
$ |
|
|
5,313 |
|
|
(7)
Beginning as of our first fiscal quarter of 2016, we define an
active client as an organization for which we have a contract and
the client is launched as of the last day of the quarter, and we
count organizations that are closely related as one client, even if
they have signed separate contractual agreements. |
|
All
periods prior to the first fiscal quarter of 2016 discussed in this
press release or presented in the accompanying financial tables
have been revised to conform to this definition of an active
client. |
Investor Relations Contact:
Linda Wells
Bazaarvoice, Inc.
415-872-3612
linda.wells@bazaarvoice.com
Media Contact:
Andy North
Bazaarvoice, Inc.
512-551-6502
andy.north@bazaarvoice.com
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