Bazaarvoice, Inc. Announces its Financial Results for the Second Fiscal Quarter of 2016, Appoints New Chief Revenue Officer

Second fiscal quarter highlights include:

• Delivered Q2 revenue from continuing operations of $49.9 million, up 5% from the same period a year ago
  
• Achieved positive Adjusted EBITDA from continuing operations of $1.1 million as compared to a loss of $1.8 million in the same period a year ago
  
• Improved GAAP net loss from continuing operations to $4.9 million from a loss of $9.9 million in the same period a year ago
  
• Achieved positive operating cash flow of $13.6 million
  

AUSTIN, Texas, Dec. 02, 2015 (GLOBE NEWSWIRE) -- Bazaarvoice, Inc. (Nasdaq:BV), the world's largest network of active shoppers, reported its financial results for the second fiscal quarter ended October 31, 2015. In addition, Bazaarvoice announced the appointment of Elizabeth “Liz” Ritzcovan to Chief Revenue Officer effective December 7th.

“We delivered strong financial results for the second quarter despite a disappointing performance in our advertising business,” said Gene Austin, chief executive officer and president. “We continue to invest in client satisfaction and new product innovation to provide a strong foundation for our core business while also tapping into new opportunities for growth.”

Second Fiscal Quarter of 2016 Financial Details

The divestiture of PowerReviews was completed on July 2, 2014. The terms of the transaction were approved by the Department of Justice on June 26, 2014. As a result, PowerReviews revenues, related expenses and loss on disposal, net of tax, are components of “Loss from discontinued operations, net of tax” in the Condensed Consolidated Statements of Operations since our fourth fiscal quarter of 2014 and for all comparative fiscal quarters presented. The Statement of Cash Flows is reported on a combined basis without separately presenting cash flows from discontinued operations for all periods presented.

Summary data below describes results from continuing operations and excludes results from discontinued operations.

Revenue from continuing operations: Bazaarvoice reported revenue of $49.9 million for the second fiscal quarter of 2016, up 5% from the second fiscal quarter of 2015, which consisted of SaaS revenue of $47.6 million and net advertising revenue, formerly referred to as media revenue, of $2.3 million.

Adjusted EBITDA from continuing operations: Adjusted EBITDA for the second fiscal quarter of 2016 was $1.1 million, a significant improvement compared with a loss of $1.8 million for the second fiscal quarter of 2015.

GAAP net loss and net loss per share from continuing operations: GAAP net loss was $4.9 million, compared to a GAAP net loss of $9.9 million for the second fiscal quarter of 2015. GAAP net loss per share was $0.06 based upon weighted average shares outstanding of 80.7 million, compared to a loss of $0.13 for the second fiscal quarter of 2015 based upon weighted average shares outstanding of 78.3 million.

Non-GAAP net loss and net loss per share from continuing operations: Non-GAAP net loss was $0.2 million, compared to a non-GAAP net loss of $3.8 million for the second fiscal quarter of 2015. Non-GAAP net loss per share was $0.00 based upon weighted average shares outstanding of 80.7 million, compared to a net loss of $0.05 for the second fiscal quarter of 2015 based upon weighted average shares outstanding of 78.3 million.

Clients: The number of active clients at the end of the second fiscal quarter of 2016 was 1,360 and the number of network clients at the end of the second fiscal quarter of 2016 was over 4,500. Annualized SaaS revenue per average active client for the second fiscal quarter of 2016 was approximately $141,000.

Appointment of New Chief Revenue Officer

Bazaarvoice announced today the appointment of Elizabeth “Liz” Ritzcovan to Chief Revenue Officer effective December 7th.  Reporting to Gene Austin, Ritzcovan will be responsible for overall leadership of Bazaarvoice’s global field sales organization, including direct sales, market development, sales operations, pre-sales solution consulting and business development.

Ritzcovan brings to Bazaarvoice more than 20 years of print, digital media and software sales experience with industry leading organizations.  Most recently, Ritzcovan served as the global chief revenue officer at Sizmek, a leading open ad management platform company for multiscreen campaigns, a role preceded by her tenure as chief revenue officer at Parade Media Group.  Prior to that she served as vice president, strategy and marketing solutions at Yahoo!, Inc. and earlier served as vice president, corporate sales and marketing, digital, for Time, Inc.  Ritzcovan started her career in print media, where she held a number of roles with Conde Nast Publications, Miller Publishing and H & H Publishing.

Active Clients

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.

Network Clients

We define a network client as an organization that does not have recurring revenue. We count organizations that are closely related as one client, even if they have signed separate contractual agreements. We believe that our network client base in combination with our active client base is an indicator of the reach of our network.

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 second fiscal quarter of 2016. To access this call, dial (877) 407-3982 from the United States or (201) 493-6780 internationally with conference ID 13622758. 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 December 16, 2015 by dialing (877) 870-5176 from the United States or (858) 384-5517 internationally with recording access code 13622758.

About Bazaarvoice

Bazaarvoice is the world's largest network of active shoppers, connecting more than one-half billion consumers to thousands of retailers and brands that represent tens of millions of products and services. Online, in-store, and on mobile devices, Bazaarvoice's technology platform engages consumers, increases sales, and protects loyalty through authentic ratings and reviews, Q&A, and brand-relevant photos, videos, and social posts. Interactions across the Bazaarvoice network yield insights on past, present, and future shopping behavior, enabling marketers to identify competitive advantage. For more information, visit http://www.bazaarvoice.com, read the blog at www.bazaarvoice.com/blog, and follow on Twitter at www.twitter.com/bazaarvoice.

Non-GAAP Financial Measures

Adjusted EBITDA for continuing operations discussed in this press release is defined as our GAAP net loss from continuing operations adjusted for stock-based expense, contingent consideration related to acquisition, adjusted depreciation and amortization (which excludes 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.

Adjusted EBITDA for discontinued operations presented in the accompanying financial tables is defined as our GAAP net loss from discontinued operations adjusted for stock-based expense, adjusted depreciation and amortization (which excludes amortization of capitalized internal-use software development costs), impairment of acquired intangibles, integration and other costs related to the acquisition and the divestiture of PowerReviews, estimated loss on disposal of discontinued operations, other non-business costs and benefits, income tax expense and other (income) expense, net.

Non-GAAP net loss for continuing operations, which is used to calculate non-GAAP net loss per share for continuing operations, is defined as our GAAP net loss from continuing operations, adjusted to exclude stock-based expense, contingent consideration related to acquisition, 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.

Non-GAAP net loss for discontinued operations, which is used to calculate non-GAAP net loss per share for discontinued operations, is defined as our GAAP net loss from discontinued operations adjusted to exclude stock-based expense, amortization of acquired intangible assets, impairment of acquired intangibles, integration and other costs related to the acquisition and divestiture of PowerReviews, estimated loss on disposal of discontinued operations 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. Further, management has presented these non-GAAP financial measures separately for discontinued operations as it may prove useful to securities analysts and investors in evaluating the impact of the divestiture of PowerReviews on the Company’s continuing 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 investments in client satisfaction and product innovation, providing a strong foundation for the core business and tapping into new opportunities for growth 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; 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 maintain pricing for our products and services, our ability to manage expansion into international markets and new vertical industries; 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, 2015 as filed with the Securities and Exchange Commission on June 25, 2015. 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 Statements of Cash Flows (in thousands) (unaudited)
	Three Months Ended October 31,								Six Months Ended October 31,
	2015				2014				2015				2014
Operating activities:
Net loss	$	(4,852	)		$	(9,908	)		$	(15,096	)		$	(21,473	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense	3,334				3,240				6,978				6,050
Loss on disposal of discontinued operations, net of tax	—				—				—				1,537
Stock-based expense	3,909				3,343				7,958				6,589
Bad debt expense	(24		)		622				61				1,223
Excess tax benefit related to stock-based expense	—				—				—				(1		)
Amortization of deferred financing costs	59				—				118				—
Other non-cash expense	(6		)		60				45				229
Changes in operating assets and liabilities:								Editor's Picks Breathing through your nose when you exercise may make your runs easier Entrepreneurs are facing a mental health crisis — here's how to help them Are fish oil supplements as healthy as we think? And is eating fish better? Will AI kill our creativity? It could – if we don’t start to value and protect the traits that make us human Does AI have a right to free speech? Only if it supports our right to free thought How can I lower my cholesterol? Do supplements work? How about psyllium or probiotics? Why we need to set limits on sperm donation Aging with a healthy brain: How lifestyle changes could help prevent up to 40% of dementia cases Seven techniques to avoid weight regain, approved by experts Market Data Market Data by TradingView Financial Markets by TradingView Most Popular 1 IKEA Expands U.S. Manufacturing Amid Rising Tariffs and Supply Chain Strategy Shift 2 Cuba Reaffirms Anti-Drug Cooperation as Tensions Rise in the Caribbean 3 Drones Spotted Near Zelenskiy’s Flight Path in Ireland Trigger Security Alert 4 Amazon Italy Pays €180M in Compensation as Delivery Staff Probe Ends 5 Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 6 FxWirePro: USD/CAD downside pressure builds, key support level in focus 7 FxWirePro: EUR/AUD set To for bigger drop, but close below key fibo needed 8 FxWirePro: EUR/NZD neutral in the near-term, scope for downward resumption 9 Taiwan Opposition Criticizes Plan to Block Chinese App Rednote Over Security Concerns 10 China’s Expanding Maritime Military Presence Alarms Taiwan and Japan EconoTimes Back to Top ▲ ©PUBLISH Holdings . All Rights Reserved. By using this site, you agree to the Terms of Service, Privacy Policy, and Cookie Policy. About us Advertise with us Contribute Contact Us Disclaimer: EconoTimes provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and EconoTimes specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Brokerage. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. EconoTimes expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results. Welcome to EconoTimes Sign up for daily updates for the most important stories unfolding in the global economy.