Bazaarvoice, Inc.
Jun 6, 2017

Bazaarvoice, Inc. Announces its Financial Results for the Fourth Fiscal Quarter and Full Year 2017

Fourth fiscal quarter and full year 2017 highlights include:

AUSTIN, Texas, June 06, 2017 (GLOBE NEWSWIRE) -- Bazaarvoice, Inc. (Nasdaq:BV) reported its financial results for the fourth fiscal quarter and full year ended April 30, 2017.

"The fourth quarter marked a strong finish to fiscal 2017 for Bazaarvoice.  We delivered significant increases in our Adjusted EBITDA and cash flow performance in fiscal 2017 while at the same time improving our overall SaaS business fundamentals, especially dollar retention," said Gene Austin, chief executive officer and president. "As we look to fiscal 2018, we expect our SaaS growth rates to increase while continuing to increase our profitability and cash flow.  We remain in the early days of monetizing our shopper profile data and continue to believe it has the potential to add to the growth profile of Bazaarvoice over the long term."

Fourth Fiscal Quarter of 2017 Financial Details

Revenue: Bazaarvoice reported revenue of $50.2 million for the fourth fiscal quarter of 2017, down 1.0% from the fourth fiscal quarter of 2016, which consisted of SaaS revenue of $47.9 million and net advertising revenue of $2.3 million.

GAAP net loss and net loss per share: GAAP net loss was $4.0 million, compared to a GAAP net loss of $7.1 million for the fourth fiscal quarter of 2015. GAAP net loss per share was $0.05 based upon weighted average shares outstanding of 83.7 million, compared to GAAP net loss per share of $0.09 for the fourth fiscal quarter of 2016 based upon weighted average shares outstanding of 81.5 million.

Adjusted EBITDA: Adjusted EBITDA for the fourth fiscal quarter of 2017 was $2.3 million compared to $2.3 million for the fourth 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 7 of the "Selected Quarterly Financial and Operational Metrics" table contained herein.

Non-GAAP net loss and net loss per share: Non-GAAP net loss was $1.4 million, compared to non-GAAP net loss of $1.3 million for the fourth fiscal quarter of 2016. Non-GAAP net loss per share was $0.02 based upon weighted average shares outstanding of 83.7 million, compared to non-GAAP net loss per share of $0.02 for the fourth fiscal quarter of 2016 based upon weighted average shares outstanding of 81.5 million.

Fiscal Year 2017 Financial Details

Revenue: Bazaarvoice reported revenue of $201.2 million for the fiscal year ended April 30, 2017, up 0.7% from the fiscal year ended April 30, 2016, which consisted of SaaS revenue of $191.0 million and net advertising revenue of $10.2 million.

GAAP net loss and net loss per share: GAAP net loss was $15.9 million, compared to a GAAP net loss of $25.3 million for the fiscal year ended 2016. GAAP net loss per share was $0.19 based upon weighted average shares outstanding of 83.1 million, compared to GAAP net loss per share of $0.31 for the fiscal year ended of April 30, 2016 based upon weighted average shares outstanding of 80.9 million.

Adjusted EBITDA: Adjusted EBITDA for the fiscal year ended April 30, 2017 was $16.7 million compared to $9.1 million for the fiscal year ended April 30, 2016.

Non-GAAP net income (loss) and net income (loss) per share: Non-GAAP net income was $1.7 million, compared to non-GAAP net loss of $5.4 million for the fiscal year ended April 30, 2016. Non-GAAP net income per share was $0.02 based upon weighted average shares outstanding of 83.1 million, compared to non-GAAP net loss per share of $0.07 for the fiscal year ended April 30, 2016 based upon weighted average shares outstanding of 80.9 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 fourth fiscal quarter and full year  2017. To access this call, dial (877) 407-3982 from the United States or (201) 493-6780 internationally with conference ID 13662884. 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 June 20, 2017 by dialing (844) 512-2921 from the United States or (412) 317-6671 internationally with recording access code 13662884.

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 enable 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.

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 compensation expense, contingent consideration related to acquisitions, amortization of acquired intangible assets, restructuring charges, out of period sales tax refunds, integration and other costs related to acquisitions, and other non-business costs and benefits along with the associated income tax effect of these adjustments.

Free cash flow discussed in this release is defined as cash provided by (used in) operating activities less purchases of property, equipment and capitalized internal-use software development costs. Cash flow provided by (used in) operating activities is the most comparable GAAP measure to Free cash flow.

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)
 
 April 30,
 2017
 April 30,
 2016
Assets   
Current assets:   
Cash and cash equivalents$52,494  $43,963 
Short-term investments38,689   50,682 
Accounts receivable, net43,713  39,597 
Prepaid expenses and other current assets7,619  8,415 
Total current assets142,515  142,657 
Property, equipment and capitalized internal-use software development costs, net28,358  31,649 
Goodwill139,155  139,155 
Acquired intangible assets, net7,717  9,607 
Other non-current assets4,210  5,214 
Total assets$321,955  $328,282 
Liabilities and stockholders' equity   
Current liabilities:   
Accounts payable$4,310  $6,110 
Accrued expenses and other current liabilities20,602  23,167 
Revolving line of credit, current32,000   
Deferred revenue69,656  62,735 
Total current liabilities126,568  92,012 
Long-term liabilities:   
Revolving line of credit   42,000 
Deferred revenue less current portion2,540  2,481 
Other liabilities, long-term6,542  7,255 
Total liabilities135,650  143,748 
Commitments and contingencies   
Stockholders' equity:   
Common stock8  8 
Additional paid-in capital455,755  437,239 
Accumulated other comprehensive loss(1,682) (878)
Accumulated deficit(267,776) (251,835)
Total stockholders' equity186,305  184,534 
Total liabilities and stockholders' equity$321,955  $328,282 


Bazaarvoice, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except net loss per share data)
(unaudited)
 
 Three Months Ended April 30, Year Ended April 30,
 2017 2016 2017 2016
Revenue$50,209  $50,709  $201,235  $199,766 
Cost of revenue19,596  19,253  76,403  76,867 
Gross profit30,613  31,456  124,832   122,899 
Operating expenses:       
Sales and marketing17,803  18,027  65,248  69,808 
Research and development9,467  10,391   40,087  41,477 
General and administrative8,343  7,577  31,952  30,398 
Restructuring charges1,108  1,575  2,202  1,575 
Sales tax refund(3,341)   (3,341)  
Acquisition-related and other196  157  576  1,415 
Amortization of acquired intangible assets309  309  1,237  1,237 
Total operating expenses33,885  38,036  137,961  145,910 
Operating loss(3,272) (6,580) (13,129) (23,011)
Other income (expense), net:       
Interest income184  137  629  412 
Interest expense(457) (552) (1,855) (2,180)
Other income (expense)(226) 31  (1,033) (522)
Total other income (expense), net(499) (384) (2,259) (2,290)
Loss before income taxes(3,771) (6,964) (15,388) (25,301)
Income tax expense203  165  553   38 
Net loss$(3,974) $(7,129) $(15,941) $(25,339)
Basic and diluted loss per share$(0.05) $(0.09) $(0.19) $(0.31)
Basic and diluted weighted average number of shares outstanding83,732  81,502  83,051  80,859 


Bazaarvoice, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
 Three Months Ended April 30, Year Ended April 30,
 2017 2016 2017 2016
Operating activities:       
Net loss$(3,974) $(7,129) $(15,941)  $(25,339)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:       
Depreciation and amortization expense3,516  3,575  14,139  14,062 
Loss on sub-lease  546  501  546 
Stock-based expense4,110  3,521  16,282  14,761 
Bad debt expense (recovery)180  358  (63 ) 93 
Amortization of deferred financing costs59  59  235  235 
Other non-cash expense (benefit)(68) (9) (240) 73 
Changes in operating assets and liabilities:       
     Accounts receivable7,731  (873) (4,053) 9,842 
     Prepaid expenses and other current assets2,086  666  1,271  187 
     Other non-current assets (232) (563) 630   (1,531)
     Accounts payable(503) 604  (1,816)  2,401 
     Accrued expenses and other current liabilities2,934  710  (2,491) (4,428)
     Deferred revenue(1,467) 2,061  6,980  2,286 
     Other liabilities, long-term(201) 1,165  (669) 6,204 
Net cash provided by operating activities14,171  4,691  14,765  19,392 
Investing activities:        
Proceeds from sale of discontinued operations      4,501 
Purchases of property, equipment and capitalized internal-use software development costs(2,110) (4,479) (9,098)  (23,657)
Purchases of short-term investments(7,679) (8,367) (44,574) (61,834)
Proceeds from maturities of short-term investments14,157  8,633  56,297  63,650 
Net cash provided by (used in) investing activities4,368  (4,213) 2,625  (17,340)
Financing activities:       
Proceeds from employee stock compensation plans489  250  1,786  3,027 
Payments on revolving line of credit(5,000) (15,000) (10,000) (15,000)
Net cash (used in) financing activities(4,511) (14,750 ) (8,214) (11,973)
Effect of exchange rate fluctuations on cash and cash equivalents179  291  (645) (157)
Net change in cash and cash equivalents14,207  (13,981) 8,531  (10,078)
Cash and cash equivalents at beginning of period38,287  57,944  43,963  54,041 
Cash and cash equivalents at end of period$52,494  $43,963  $52,494  $43,963 
Supplemental disclosure of non-cash investing and financing activities:
Purchase of fixed assets recorded in accounts payable$  $180  $  $180 
Asset retirement obligation costs incurred$  $100  $  $100 
Capitalized stock-based compensation$130  $203  $495  $813 


Bazaarvoice, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except net loss per share data)
(unaudited)
 
 Three Months Ended April 30, Year Ended April 30,
 2017 2016 2017 2016
Non-GAAP net income (loss) and net income (loss) per share:       
GAAP net loss(1)$(3,974) $(7,129) $(15,941) $(25,339)
Stock-based compensation (2)4,110  3,602  16,282  15,086 
Amortization of acquired intangible assets472  472  1,890  1,890 
Restructuring charges (3)1,108  1,575  2,202  1,575 
Sales tax refund (4)(3,341)   (3,341)  
Acquisition-related and other expense 196  157  576  1,415 
Other stock-related benefit (5)     (25)  
  Income tax adjustment for non-GAAP items9  (10) 9  (10)
Non-GAAP net income (loss)$(1,420) $(1,333) $1,652  $(5,383 )
GAAP basic and diluted shares83,732  81,502  83,051  80,859 
Non-GAAP basic and diluted net income (loss) per share$(0.02) $(0.02) $0.02  $(0.07)
Adjusted EBITDA:       
GAAP net loss$(3,974) $(7,129) $(15,941) $(25,339)
Stock-based compensation (2)4,110  3,602  16,282  15,086 
Depreciation and amortization (6)3,516  3,575  14,139  14,062 
Restructuring charges (3)1,108  1,575  2,202  1,575 
Sales tax refund (4)(3,341)   (3,341)  
Acquisition-related and other expense196  157  576  1,415 
Other stock-related benefit (5)    (25)  
Income tax expense203  165  553  38 
Total other expense, net499  384   2,259  2,290 
Adjusted EBITDA$2,317  $2,329  $16,704  $9,127 
Free cash flow:       
Net cash provided by operating activities14,171  4,691  14,765  19,392 
Purchases of property, equipment and capitalized internal-use software development costs(2,110) (4,479) (9,098) (23,657)
Free cash flow12,061  212  5,667  (4,265)

(1) During the fourth quarter of fiscal 2016, the Company recorded out of period adjustments to revenue, the cumulative effect of which increased revenue, and decreased net loss from, by $0.6 million and $0.9 million for the twelve and three month periods ended April 30, 2016. The adjustments related to errors in the timing of recognition of revenue, for which all required criteria had been satisfied in prior periods. The Company has determined that these adjustments were not material to any prior annual or interim periods, and the resulting correction is not material to its annual results for fiscal 2016 or to the trend in earnings.

(2)

Stock-based expense includes the following:       
Cost of revenue$429  $503  $1,734  $2,167 
Sales and marketing723  543  2,996  2,956  
Research and development943  769  3,770  2,996 
General and administrative2,015  1,787  7,782  6,967 

(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.

In addition, in April 2017 the Company committed to a plan to reduce its advertising sales expenses to better align with its growth expectations and restructure the Company to reduce organization layers and streamline operations.  Costs associated with these restructuring activities include severance and related payroll tax. Expenses recorded in restructuring for fiscal 2017 include $1.1 million related to the Company's fiscal 2017 restructuring plan and $1.1 million related to the Company's fiscal 2016 plan.

Management excludes these restructuring charges from Adjusted EBITDA when reviewing the Company's operating results as the charges do not represent normal, routine, cash operating expenses necessary to operate our business. In addition, the timing of restructuring charges, such as the ones described above, are unpredictable and the amount of the charges vary significantly across reporting periods and are not expected to continue indefinitely. Management believes the exclusion of these charges from the Company's non-GAAP measures allows investors to supplement their understanding of the Company's short-term and long-term financial trends as we believe the items excluded are not indicative of our underlying ongoing and future performance.

(4) During the fourth quarter of fiscal 2017 the Company received a $3.3 million Texas state sales tax refund related to prior years open to audit for certain purchases that are integral to the Company's products.

(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 year ended April 30, 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.

(6)

 Three Months Ended April 30, Year Ended April 30,
 2017 2016 2017 2016
Depreciation and amortization includes the following:       
Cost of revenue$2,613  $2,619  $10,406  $10,213 
Sales and marketing168  201  736   957 
Research and development191  227  820  839 
General and administrative235  219  940  816 
Amortization of acquired intangible assets309  309  1,237  1,237 
Depreciation and amortization$3,516  $3,575  $14,139   $14,062 


Bazaarvoice, Inc.
Selected Quarterly Financial and Operational Metrics
(in thousands, except active enterprise clients and full-time employees data)
(unaudited)
 
 Three Months Ended
 Jul 31, Oct 31, Jan 31, Apr 30, Jul 31, Oct 31, Jan 31, Apr 30,
 2015 2015 2016 2016 2016 2016 2017 2017
Revenue (1)$48,876  $49,926  $50,255  $50,709  $50,093  $50,408  $50,525  $ 50,209 
Cost of revenue19,548  19,146  18,920  19,253  18,756  18,855  19,196  19,596 
Gross profit29,328  30,780  31,335  31,456  31,337  31,553  31,329  30,613 
Operating expenses:               
Sales and marketing19,166  16,502  16,113  18,027  15,304  15,819  16,322  17,803 
Research and development10,533  10,354  10,199  10,391  11,073  9,959   9,588  9,467 
General and administrative8,238  7,643  6,940  7,577  8,259  8,051  7,299  8,343 
Restructuring charges      1,575  327  767    1,108 
Sales tax refund              (3,341)
Acquisition-related and other expense702  224  332  157  176  120  84  196 
Amortization of acquired intangible assets309  310  309  309  309  310  309  309 
Total operating expenses38,948  35,033  33,893  38,036  35,448  35,026  33,602  33,885 
Operating loss(9,620) (4,253) (2,558) (6,580) (4,111) (3,473) (2,273) (3,272)
Total other expense, net(712) (475) (719) (384) (859) (569) (332) (499)
Loss before income taxes(10,332) (4,728) (3,277) (6,964) (4,970) (4,042) (2,605) (3,771)
Income tax expense (benefit)(88) 124  (163) 165  135  92  123  203 
Net loss$(10,244) $(4,852) $(3,114) $(7,129) $(5,105) $(4,134) $(2,728) $(3,974)
Stock-based compensation (2)$3,935  $3,787  $3,762  $3,602  $3,944  $4,239  $3,989  $4,110 
Depreciation and amortization (3)3,644  3,334  3,512  3,575  3,578  3,532  3,513  3,516 
Restructuring charges (4)      1,575  327  767     1,108 
Sales tax refund (5)               (3,341)
Acquisition-related and other expense702  224  332  157  176  120  84  196 
Other stock-related benefit (6)          (25)    
Income tax expense (benefit)(88) 124  (163) 165  135  92  123  203 
Total other expense, net712  475  719  384  859  569  332  499 
Adjusted EBITDA (7)$(1,339) $3,092  $5,048   $2,329  $3,914  $5,160  $5,313  $2,317 
Number of active clients (at period end)1,337  1,360  1,383  1,399  1,397  1,412  1,456  1,494 
Full-time employees (at period end)834  855  817  756  766  775  777  763 

(1)

Revenue includes the following:                
SaaS$46,830  $47,671  $47,884  $49,108  $47,799  $48,121  $47,266  $47,870 
Advertising2,046  2,255  2,371  1,601  2,294  2,287  3,259  2,339 
Revenue$48,876  $49,926  $50,255  $50,709  $50,093  $50,408  $50,525  $50,209 

(2)

 Three Months Ended
 Jul 31, Oct 31, Jan 31, Apr 30, Jul 31, Oct 31, Jan 31, Apr 30,
 2015  2015 2016 2016 2016 2016 2017 2017
Stock-based expense includes the following:               
Cost of revenue$472  $607  $585  $503  $344  $486  $475  $429 
Sales and marketing1,084  643  686  543  580  843  850  723 
Research and development643  798  786  769  1,053  907  867  943 
General and administrative1,736  1,739  1,705  1,787  1,967  2,003  1,797  2,015 
Stock-based expense$3,935  $3,787  $3,762  $3,602   $3,944  $4,239  $3,989  $4,110 

(3)

Depreciation and amortization includes the following:               
Cost of revenue$2,558  $2,480  $2,559  $2,619  $2,592  $2,600  $2,601  $2,613 
Sales and marketing349  197  210  201  196  189  183  168 
Research and development209  175  228  227  231  204  194  191 
General and administrative220  171  206  219  250  229  226  235 
Amortization of acquired intangible assets308  311  309  309  309  310  309  309 
Depreciation and amortization$3,644  $3,334  $3,512   $3,575  $3,578  $3,532  $3,513  $3,516 

(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.

In addition, in April 2017, as a result of lower than anticipated advertising revenue growth, the Company committed to a plan to right-size its advertising sales team and restructure the Company to reduce organization layers and streamline operations.  Costs associated with these restructuring activities include severance and related payroll tax. Expenses recorded in restructuring for fiscal 2017 include $1.1 million related to the Company's fiscal 2017 restructuring plan and $1.1 million related to the Company's fiscal 2016 plan.

(5) During the fourth quarter of fiscal 2017 the Company received a $3.3 million Texas state sales tax refund related to prior years open to audit for certain purchases that are integral to the Company's products.

(6) 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.

(7) 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:

Adjusted EBITDA, previous definition$(3,269) $1,135  $3,075  $277  $1,874  $3,114  $3,259  $268 
Add: Amortization of capitalized internal-use software development costs2,044  2,079  2,103   2,174  2,162  2,170  2,173  2,179 
Less: Capitalized portion of stock-based compensation(114) (122) (130) (122) (122) (124) (119) (130)
Adjusted EBITDA, current definition$(1,339) $3,092  $5,048  $2,329  $3,914  $5,160  $5,313  $2,317 
Investor Relations Contact:

Linda Wells

Bazaarvoice, Inc.

415-872-3612

linda.wells@bazaarvoice.com

 

Media Contact:

Alison Kwong

Bazaarvoice, Inc.

512-551-6285

pr@bazaarvoice.com

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Source: Bazaarvoice, Inc.

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