Bazaarvoice, Inc.
Jun 6, 2012

Bazaarvoice, Inc. Announces Its Financial Results for the Fourth Fiscal Quarter and Fiscal Year Ended April 30, 2012

Fourth fiscal quarter 2012 and recent strategic highlights include:

AUSTIN, Texas, June 6, 2012 (GLOBE NEWSWIRE) -- Bazaarvoice, Inc. (Nasdaq:BV), a leading social software company, reported its financial results for the fourth fiscal quarter and fiscal year ended April 30, 2012:

"The fourth quarter marked a strong finish to fiscal 2012," stated Brett Hurt, founder and CEO of Bazaarvoice. "Our momentum is being driven by the expanding reach and capabilities of our platform, the combination of which delivers significant value to our retail and brand customers. Online word of mouth content already plays a critical role in consumers' purchasing decisions, and we believe that we are still in the early stages of transforming the $12 trillion retail industry."

Hurt added, "We believe that the recent announcement of our intention to acquire PowerReviews will establish Bazaarvoice in the small to medium sized market and expands the Bazaarvoice network to over 1,800 clients globally, including nearly half of the Internet Retailer 500 companies. Looking forward, we expect the expanded client base will create new opportunities to syndicate authentic online word of mouth content across an expanded global network and enhance the ability of both brands and retailers to connect directly with their customers to generate new insights into consumer sentiment."

Fourth Fiscal Quarter of 2012 Financial Details

Revenue: Bazaarvoice reported revenue of $31.4 million for the fourth fiscal quarter ended April 30, 2012, an increase of 63% compared to revenue of $19.3 million for the fourth fiscal quarter ended April 30, 2011.

Net loss: GAAP net loss for the fourth quarter was $6.4 million, compared to a GAAP net loss of $4.7 million for the fourth quarter of 2011. Non-GAAP net loss for the fourth quarter was $4.3 million, as compared to a non-GAAP net loss of $3.4 million for the fourth quarter of 2011.

Net loss per share: GAAP net loss per share for the fourth quarter was $0.13 based upon weighted average shares outstanding of 48.2 million, as compared to a GAAP net loss per share of $0.25 for the fourth quarter of 2011 based upon weighted average shares outstanding of 18.3 million.

Non-GAAP net loss per share for the fourth quarter was $0.08 based upon weighted average shares outstanding of 55.7 million, as compared to a non-GAAP net loss per share of $0.07 for the fourth quarter of 2011 based upon weighted average shares outstanding of 46.2 million.

Adjusted EBITDA: Adjusted EBITDA for the fourth quarter was a loss of $3.5 million, as compared to a loss of $3.0 million for the fourth quarter of 2011.

Clients: The number of active clients at the end of fourth quarter was 790, as compared to 737 at the end of the third quarter and 571 as of the end of the fourth quarter of 2011. Annualized revenue per average active client for the fourth quarter was approximately $164,700, as compared to approximately $153,600 for the third quarter and approximately $141,600 for the fourth quarter of 2011. Active client retention rate for the fourth quarter was approximately 97%, as compared to approximately 97% for the third quarter and approximately 96% for the fourth quarter of 2011.

Fiscal Year 2012 Financial Details

Revenue: Bazaarvoice reported revenue of $106.1 million for the fiscal year ended April 30, 2012, an increase of 65% compared to revenue of $64.5 million for the fiscal year ended April 30, 2011.

Net loss: GAAP net loss for the fiscal year 2012 was $24.3 million, compared to a GAAP net loss of $20.1 million for the fiscal year 2011. Non-GAAP net loss for the fiscal year 2012 was $16.5 million, as compared to a non-GAAP net loss of $15.4 million for the fiscal year 2011.

Net loss per share: GAAP net loss per share for the fiscal year 2012 was $0.92 based upon fully-diluted weighted average shares outstanding of 26.4 million, as compared to a GAAP net loss per share of $1.13 for the fiscal year 2011 based upon fully-diluted weighted average shares outstanding of 17.8 million. Non-GAAP net loss per share for the fiscal year 2012 was $0.34 based upon fully-diluted weighted average shares outstanding of 48.3 million, as compared to a non-GAAP net loss per share of $0.34 for the fiscal year 2011 based upon fully-diluted weighted average shares outstanding of 45.7 million.

Adjusted EBITDA: Adjusted EBITDA for the fiscal year 2012 was a loss of $12.9 million, as compared to a loss of $13.3 million for the fiscal year 2011.

Clients: The number of active clients at the end the fiscal year 2012 was 790, as compared to 571 as of the end of the fiscal year 2011. Annualized revenue per average active client for the fiscal year 2012 was approximately $153,900, as compared to approximately $136,700 for the fiscal year 2011. Active client retention rate for the fiscal year 2012 was approximately 89%, as compared to approximately 90% for the fiscal year 2011.

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 fiscal year ended April 30, 2012. To access this call, dial (888) 254-2798 from the United States or (913) 312-0376 internationally with conference ID 6277435. 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, 2012 by dialing (877) 870-5176 from the United States or (858) 384-5517 internationally with recording access code 6277435.

About Bazaarvoice

Bazaarvoice, a leading social software company, brings the voice of customers to the center of business strategy for more than 750 clients globally. Bazaarvoice helps clients create social communities on their brand websites and Facebook pages where customers can engage in conversations. These conversations can be syndicated across Bazaarvoice's global network of client websites and mobile devices, which allows manufactures to connect directly with customers. The social data derived from online word of mouth translates into actionable insights that improve marketing, sales, customer service, and product development. Headquartered in Austin, Texas, Bazaarvoice has offices in London, Munich, New York City, Paris, Stockholm and Sydney. For more information, visit 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 discussed in this press release is defined as net loss adjusted for stock-based expense, adjusted depreciation and amortization (which excludes amortization of capitalized internal-use software development costs), income tax expense and other (income) expense, net.  Non-GAAP net income excludes stock-based expense along with the associated income tax effect. Non-GAAP basic and diluted loss per share has been calculated assuming the conversion of all outstanding shares of our preferred stock into 27,897,031 shares of our common stock as of the first day of the beginning of the period.

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 performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. 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. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with 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 earnings discussions and, 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", similar and "target" 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, management's estimates regarding future revenue and financial performance and other statements about management's beliefs, intentions or goals. Bazaarvoice 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 manage expansion into international markets and new vertical industries; our ability to successfully identify, manage and integrate potential acquisitions, including our proposed acquisition of PowerReviews, Inc. as announced in our release on Form 8-K on May 24, 2012; and other risks and potential factors that could affect Bazaarvoice's business and financial results identified in Bazaarvoice's S-1 as filed with the Securities and Exchange Commission on February 24, 2012. Additional information will also be set forth in Bazaarvoice's future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that Bazaarvoice makes with the Securities and Exchange Commission. Bazaarvoice does not intend and undertakes no duty to release publicly any updates or revisions to any forward-looking statements contained herein.

Bazaarvoice, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
     
  As of April 30,
  2012 2011
     
ASSETS    
Current assets:    
Cash and cash equivalents  $74,367  $15,050
Restricted cash  500  250
Short-term investments  50,834  --
Accounts receivable, net  17,977  12,954
Prepaid expenses and other current assets  3,873  2,841
Total current assets  147,551  31,095
     
Property, equipment, and capitalized software development costs, net  8,868  6,865
Other non-current assets  448  12
Total assets  156,867  37,972
     
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)    
Current liabilities:    
Accounts payable  2,523  1,558
Accrued expenses and other current liabilities  12,725  6,834
Deferred revenue  42,152  27,509
Total current liabilities  57,400  35,901
     
Long-term liabilities:    
Deferred revenue less current portion  3,434  4,651
Deferred tax liability, long-term  31  399
Other liabilities, long-term  2,404  2,638
Total long-term liabilities  5,869  7,688
Total liabilities  63,269  43,589
     
Total stockholders' equity (deficit)  93,598  (5,617)
Total liabilities and stockholders' equity (deficit)  156,867  37,972
 
Bazaarvoice, Inc.
Condensed Consolidated Statement of Operations
(unaudited)
(in thousands, except net loss per share data)
         
  12 Months Three Months
  Ended April 30, Ended April 30,
  2012 2011 2012 2011
         
Revenue  $106,136  $64,482  $31,431  $19,281
Cost of revenue  36,441  25,615  10,325  7,293
Gross profit  69,695  38,867  21,106  11,988
         
Operating expenses:        
Sales and marketing  49,726  34,568  14,257  10,116
Research and development  20,789  10,847  6,811  2,999
General and administrative  21,895  13,156  6,047  3,598
Total operating expenses  92,410  58,571  27,115  16,713
Operating loss  (22,715)  (19,704)  (6,009)  (4,725)
         
Total other income (expense), net  (803)  208  (15)  205
Net loss before income taxes  (23,518)  (19,496)  (6,024)  (4,520)
Income tax expense   811  561  343  139
Net loss  (24,329)  (20,057)  (6,367)  (4,659)
Accretion of redeemable convertible preferred stock  (38)  (46)  (3)  (11)
Net loss applicable to common stockholders  (24,367)  (20,103)  (6,370)  (4,670)
         
Net loss per share applicable to common stockholders:        
Basic and diluted  ($0.92)  ($1.13)  ($0.13)  ($0.25)
Basic and diluted weighted average number of shares  26,403  17,790  48,236  18,346
 
Bazaarvoice, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
         
  12 Months Three Months
  Ended April 30, Ended April 30,
  2012 2011 2012 2011
         
OPERATING ACTIVITIES        
Net loss  ($24,329)  ($20,057)  ($6,367)  ($4,659)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        
Depreciation and amortization expense  3,108  2,311  861  626
Stock-based expense  7,710  4,681  1,952  1,279
Bad debt expense  1,083  482  158  128
Excess tax benefit related to stock-based expense  (78)  --  (78)  --
Changes in operating assets and liabilities:        
Accounts receivable  (5,566)  (4,974)  2,828  (145)
Prepaid expenses and other current assets  (1,132)  (1,983)  (1,661)  (1,095)
Other non-current assets  (298)  94  63  47
Accounts payable  808  419  (1,197)  39
Accrued expenses and other current liabilities  5,176  3,284  51  1,327
Deferred revenue  13,432  15,049  3,461  4,196
Other liabilities, long-term  (234)  47  (235)  (270)
Net cash provided by (used in) operating activities  (320)  (647)  (164)  1,473
         
INVESTING ACTIVITIES        
Purchases of property, equipment, and capitalized internal-use software development costs, net  (5,119)  (2,282)  (1,313)  (444)
Increase of restricted cash  (250)  --  --  --
Purchase of short-term investments  (50,884)  --  (50,884)  --
Net cash provided by (used in) investing activities  (56,253)  (2,282)  (52,197)  (444)
         
FINANCING ACTIVITIES        
Proceeds from initial public offering, net of offering costs  112,778  --  113,716  --
Proceeds from exercise of stock options  3,049  2,068  571  1,135
Excess tax benefit related to share-based payments  78  --  78  --
Net cash provided by financing activities  115,905  2,068  114,365  1,135
         
Effect of exchange rate fluctuations on cash and cash equivalents  (15)  (125)  58  (151)
Net change in cash and cash equivalents  59,317  (986)  62,062  2,013
Cash and cash equivalents at beginning of period  15,050  16,036  12,305  13,037
Cash and cash equivalents at end of period  74,367  15,050  74,367  15,050
 
Bazaarvoice, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
(in thousands, except net loss per share data)
         
  12 Months Three Months
  Ended April 30, Ended April 30,
  2012 2011 2012 2011
         
Non-GAAP net loss and net loss per share:        
GAAP net loss  ($24,329)  ($20,057)  ($6,367)  ($4,659)
Stock-based expense (1)  7,710  4,681  1,952  1,279
Income tax adjustment for non-GAAP items  119  --  119  --
Non-GAAP net income  (16,500)  (15,376)  (4,296)  (3,380)
         
GAAP basic and diluted shares  26,403  17,790  48,236  18,346
Assumed preferred stock conversion  21,934  27,897  7,439  27,897
Non-GAAP basic and diluted shares  48,337  45,687  55,675  46,243
Non-GAAP basic and diluted net loss per share  ($0.34)  ($0.34)  ($0.08)  ($0.07)
         
Adjusted EBITDA:        
GAAP net loss  ($24,329)  ($20,057)  ($6,367)  ($4,659)
Stock-based expense (1)  7,710  4,681  1,952  1,279
Adjusted depreciation and amortization (2)  2,104  1,706  552  449
Income tax expense  811  561  343  139
Total other (income) expense, net  803  (208)  15  (205)
Adjusted EBITDA  ($12,901)  ($13,317)  ($3,505)  ($2,997)
         
(1) Stock based expense includes the following:        
Cost of revenue  $1,220  $978  $234  $235
Sales and marketing  1,869  1,122  636  307
Research and development  1,326  731  406  176
General and administrative  3,295  1,850  676  561
Stock-based expense  $7,710  $4,681  $1,952  $1,279
         
(2) Adjusted depreciation and amortization includes the following:        
Cost of revenue  $825  $665  $194  $194
Sales and marketing  490  424  117  113
Research and development  431  200  136  50
General and administrative  358  417  105  92
Adjusted depreciation and amortization  $2,104  $1,706  $552  $449
 
Bazaarvoice, Inc.
Selected Quarterly Financial and Operational Metrics
(unaudited)
(in thousands, except active clients and full-time employees data)
                 
  Three Months Ended,
  Apr 30, Jan 31, Oct 31, Jul 31, Apr 30, Jan 31, Oct 31, Jul 31,
  2012 2012 2011 2011 2011 2011 2010 2010
                 
Revenue  $31,431  $27,602  $25,015  $22,088  $19,281  $17,306  $14,943  $12,952
Cost of revenue  10,325  9,514  8,805  7,797  7,293  6,676  6,414  5,232
Gross profit  21,106  18,088  16,210  14,291  11,988  10,630  8,529  7,720
                 
Operating expenses:                
Sales and marketing  14,257  12,152  12,125  11,192  10,116  8,592  8,063  7,797
Research and development  6,811  6,059  4,576  3,343  2,999  2,801  2,641  2,406
General and administrative  6,047  5,934  4,815  5,099  3,598  3,281  3,333  2,944
Total operating expenses  27,115  24,145  21,516  19,634  16,713  14,674  14,037  13,147
Operating loss  (6,009)  (6,057)  (5,306)  (5,343)  (4,725)  (4,044)  (5,508)  (5,427)
                 
Total other income (expense), net  (15)  (337)  (367)  (84)  205  (50)  108  (55)
Net loss before income taxes  (6,024)  (6,394)  (5,673)  (5,427)  (4,520)  (4,094)  (5,400)  (5,482)
Income tax expense  343  181  178  109  139  149  137  136
Net loss  ($6,367)  ($6,575)  ($5,851)  ($5,536)  ($4,659)  ($4,243)  ($5,537)  ($5,618)
                 
Stock-based expense (1)  1,952  2,503  1,697  1,558  1,279  1,253  1,084  1,065
Adjusted depreciation and amortization (2)  552  569  512  471  449  446  424  387
Income tax expense  343  181  178  109  139  149  137  136
Total other (income) expense, net  15  337  367  84  (205)  50  (108)  55
Adjusted EBITDA  ($3,505)  ($2,985)  ($3,097)  ($3,314)  ($2,997)  ($2,345)  ($4,000)  ($3,975)
                 
Number of active clients (at period end)  790  737  701  640  571  518  480  419
Full-time employees (at period end)  640  608  566  520  494  467  441  381
                 
(1) Stock-based expense includes the following:                
Cost of revenue  234  319  344  323  235  247  244  252
Sales and marketing  636  419  412  402  307  325  236  254
Research and development  406  356  360  204  176  188  184  183
General and administrative  676  1,409  581  629  561  493  420  376
Stock-based expense  $1,952  $2,503  $1,697  $1,558  $1,279  $1,253  $1,084  $1,065
                 
(2) Adjusted depreciation and amortization includes the following:              
Cost of revenue  194  210  214  207  194  176  157  138
Sales and marketing  117  120  124  129  113  110  105  96
Research and development  136  134  93  68  50  51  50  49
General and administrative  105  105  81  67  92  109  112  104
Adjusted depreciation and amortization  $552  $569  $512  $471  $449  $446  $424  $387
CONTACT: Bazaarvoice Investor Relations Contact:

         Bazaarvoice Investor Relations

         Seth Potter

         ICR, Inc. on behalf of Bazaarvoice, Inc.

         646-277-1230

         seth.potter@icrinc.com



         Media Contact:

         Emily Brady

         Brady PR on behalf of Bazaarvoice, Inc.

         650-692-6107

         emily@bradypr.com
Source: Bazaarvoice

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