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Bazaarvoice, Inc. Announces its Financial Results for the Third Fiscal Quarter of 2013

Bazaarvoice, Inc. Announces its Financial Results for the Third Fiscal Quarter
of 2013

Third fiscal quarter of 2013 and recent strategic highlights include:

  *SaaS revenue for the third quarter increased by 47% year-over-year to
    $40.7 million
  *Net media revenue for the third quarter was $2.0 million reflecting $4.7
    million earned from advertisers less the amount due to publishers
  *Number of active enterprise clients totaled 1,179 at the end of the period
  *Jim Offerdahl was appointed Chief Financial Officer
  *Integrated Longboard Media into Bazaarvoice Media

AUSTIN, Texas, Feb. 21, 2013 (GLOBE NEWSWIRE) -- Bazaarvoice, Inc.
(Nasdaq:BV), a leading social and e-commerce software company, reported its
financial results for the third fiscal quarter of 2013 ended January 31, 2013.

"I am pleased with the operational performance during the third quarter as we
continue to invest in our opportunity as a company, said Stephen Collins,
Chief Executive Officer and President. "Our clients, both retailers and
brands, are requesting more online word of mouth content, site monetization
and tools to increase traffic and conversion. The addressable market on a
global scale is substantial, as our comprehensive suite of solutions provides
our clients with the ability to address all of their key strategic
priorities."

Third Fiscal Quarter of 2013 Financial Details

Revenue: Bazaarvoice reported revenue of $42.7 million, up 55% from the third
quarter of 2012, which consisted of SaaS revenue of $40.7 million and net
media revenue of $2.0 million. Net media revenue reflects $4.7 million earned
from advertisers less the amount due to publishers.

Adjusted EBITDA: Adjusted EBITDA was a loss of $5.5 million, compared to a
loss of $3.0 million for the third quarter of 2012.

GAAP net loss and net loss per share: GAAP net loss was $10.8 million,
compared to a GAAP net loss of $6.6 million for the third quarter of
2012.GAAP net loss per share was $0.15 based upon weighted average shares
outstanding of 71.9 million, compared to $0.34 for the third quarter of 2012
based upon weighted average shares outstanding of 19.6 million.

Non-GAAP net loss and net loss per share: Non-GAAP net loss was $4.1 million,
compared to a non-GAAP net loss of $4.1 million for the third quarter of
2012.Non-GAAP net loss per share was $0.06 based upon weighted average shares
outstanding of 71.9 million, compared to $0.09 for the third quarter of 2012
based upon weighted average shares outstanding of 47.5 million.

Clients: The number of active enterprise clients at the end of the third
quarter was 1,179, and the number of active network clients at the end of the
third quarter was approximately 1,250.Annualized SaaS revenue per average
active enterprise client for the third quarter was approximately
$142,000.Active enterprise client retention rate for the third quarter was
approximately 97%.

In connection with our acquisition of PowerReviews, which closed in June 2012,
we expanded the types of clients that we serve.To reflect differences among
our clients and the services that we offer, we now define our clients as
"active enterprise clients" and "active network clients," the definitions of
which are set forth herein.Historical references to active clients for
periods prior to the closing of the acquisition include both active enterprise
clients and active network clients on an aggregate basis.As a result of this
prospective nomenclature change, active clients and active client retention
rates for periods prior to June 2012 and after June 2012 may not be directly
comparable as we have not made this distinction retrospectively.This change
also has a corresponding impact on metrics that are driven by the number of
clients, such as revenue per active client.

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 2013
ended January 31, 2013. To access this call, dial (888) 254-2801 from the
United States or (913) 312-0962 internationally with conference ID 4950676. 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
7, 2013 by dialing (877) 870-5176 from the United States or (858) 384-5517
internationally with recording access code 4950676.

About Bazaarvoice

Bazaarvoice, a leading social and e-commerce software company, assists clients
in bringing the voice of the customer to the center of business strategy.With
over 2,000 clients globally, including over half of the Internet Retailer 500,
over 20 percent of the Fortune 500 and over one-third of the Fortune 100,
Bazaarvoice helps clients to leverage social data derived from online word of
mouth content to increase sales, acquire new customers, improve marketing
effectiveness, enhance consumer engagement across channels, increase success
of new product launches, improve existing products and services, effectively
scale customer support, decrease product returns and enable retailers to
launch and manage on-site advertising solutions and site monetization
strategies.This online word of mouth content can be syndicated across
Bazaarvoice's global network of client websites, shopper media sites and
mobile devices, making the user-generated content that digital consumers trust
accessible at multiple points of purchase. Headquartered in Austin, Texas,
Bazaarvoice has offices in Amsterdam, London, Munich, New York, Paris, San
Francisco, 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.

The Bazaarvoice logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=13784

Number of Active Enterprise Clients

We define an active enterprise client as an organization that has implemented
either the Bazaarvoice Conversations platform or the PowerReviews Enterprise
platform and from which we are currently recognizing revenue, and we count
organizations that are closely related as one client, even if they have signed
separate contractual agreements. We believe that our ability to increase our
enterprise client base is a leading indicator of our ability to grow revenue.

Number of Active Network Clients

We define an active network client as an organization that has implemented one
or more of our solutions but has not implemented either the Bazaarvoice
Conversations or PowerReviews Enterprise platforms. Such solutions may include
our Connections solutions, Media solutions or Express platform. 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 enterprise client base is an indicator of the reach of
our network.

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), integration and other costs related to acquisitions, income tax
expense and other (income) expense, net.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, amortization of acquired intangible
assets, integration and other costs related to acquisitions along with the
associated income tax effect of these adjustments.Non-GAAP basic and diluted
loss per share for the third fiscal quarter of 2012 ended January 31, 2012 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 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 and 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 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" and 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, our ability to address the strategic priorities
of our clients, including our ability to deliver more online word of mouth
content, site monetization and tools to increase traffic and conversion. 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 integrate the
operations of Longboard Media, Inc. as announced in our release on Form 8-K on
November 5, 2012; our ability to operate in a new and unproven market; our
ability to effectively manage growth, especially in light of our announced
management changes; our ability to manage expansion into international markets
and new vertical industries; our ability to successfully identify, manage and
integrate potential acquisitions; and other risks and potential factors that
could affect Bazaarvoice's business and financial results identified in our
Form 10-K for the fiscal year ended April 30, 2012, our Form 10-Q for the
fiscal quarter ended October 31, 2012 and Form S-1 as filed with the
Securities and Exchange Commission on July 12, 2012. 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
(unaudited)
(in thousands)
                                                                  
                                                       January 31, April 30,
                                                       2013        2012
ASSETS                                                  
Current assets:                                                    
Cash and cash equivalents                               $23,845   $74,367
Restricted cash                                         604        500
Short-term investments                                  81,646     50,834
Accounts receivable, net                                30,310     17,977
Prepaid expenses and other current assets               4,624      3,873
Total current assets                                    141,029    147,551
Property, equipment and capitalized internal-use        13,431     8,868
software development costs, net
Goodwill                                                141,833    --
Acquired intangible assets, net                         53,465     --
Other non-current assets                                190        448
Total assets                                            $349,948  $156,867
LIABILITIES AND STOCKHOLDERS' EQUITY                               
Current liabilities:                                               
Accounts payable                                        $6,189    $2,523
Accrued expenses and other current liabilities          23,289     12,725
Deferred revenue                                        50,755     42,152
Total current liabilities                               80,233     57,400
Deferred revenue less current portion                   2,162      3,434
Deferred tax liability, long-term                       1,393      31
Other liabilities, long-term                            6,836      2,404
Total liabilities                                       90,624     63,269
Stockholders' equity:                                              
Common stock                                            7          6
Additional paid-in capital                              365,115    158,769
Accumulated other comprehensive loss                    (33)       (20)
Accumulated deficit                                     (105,765)  (65,157)
Total stockholders' equity                              259,324    93,598
Total liabilities and stockholders' equity              $349,948  $156,867


Bazaarvoice, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except net loss per share data)
                                                               
                               Three Months           Nine Months
                               Ended January 31,      Ended January 31,
                               2013        2012       2013        2012
Revenue                         $42,678   $27,602  $116,966  $74,705
Cost of revenue                 14,217     9,514     40,949     26,116
Gross profit                    28,461     18,088    76,017     48,589
Operating expenses:                                             
Sales and marketing            20,710     12,152    53,882     35,469
Research and development        8,914      6,059     24,356     13,978
General and administrative      8,783      5,934     32,463     15,848
Acquisition-related and other   2,021      --       4,771      --
Amortization of acquired        1,165      --       2,543      --
intangible assets
Total operating expenses        41,593     24,145    118,015    65,295
Operating loss                  (13,132)   (6,057)   (41,998)   (16,706)
Other income (expense), net:                                    
Interest income                 61         4         110        17
Other income (expense)          (49)       (341)     (451)      (805)
Total other income (expense),   12         (337)     (341)      (788)
net
Loss before income taxes        (13,120)   (6,394)   (42,339)   (17,494)
Income tax expense (benefit)    (2,293)    181       (1,731)    468
Net loss                        $(10,827) $(6,575) $(40,608) $(17,962)
Accretion of redeemable         --        (10)      --        (35)
convertible preferred stock
Net loss applicable to common   $(10,827) $(6,585) $(40,608) $(17,997)
stockholders
Net loss per share applicable                                   
to common stockholders:
Basic and diluted              $(0.15)   $(0.34)  $(0.60)   $(0.93)
Basic and diluted weighted
average number of shares        71,940     19,613    68,115     19,284
outstanding


Bazaarvoice, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
                                                               
                               Three Months           Nine Months
                               Ended January 31,      Ended January 31,
                               2013        2012       2013        2012
                                                               
OPERATING ACTIVITIES                                            
Net loss                        $(10,827) $(6,575) $(40,608) $(17,962)
Adjustments to reconcile net loss to net
cash provided by (used in) operating                             
activities:
Depreciation and amortization   3,138      837       7,473      2,247
expense
Stock-based expense             3,139      2,503     19,072     5,758
Bad debt expense                860        78        1,643      925
Excess tax benefit related to   (93)       --       (365)      --
stock-based compensation
Changes in operating assets and                                 
liabilities:
Accounts receivable             (5,781)    (2,888)   (10,581)   (8,394)
Prepaid expenses and other      485        1,606     257        529
current assets
Other non-current assets        1,277      (148)     1,161      (361)
Accounts payable                (2,655)    (222)     521        2,005
Accrued expenses and other      4,493      937       7,027      5,125
current liabilities
Deferred revenue                3,313      2,764     4,647      9,971
Other liabilities, long-term    (4,090)    (262)     (2,952)    1
Net cash used in operating      (6,741)    (1,370)   (12,705)   (156)
activities
INVESTING ACTIVITIES                                            
Acquisitions, net of cash
acquired, and purchase of       (30,437)   --       (60,750)   --
intangible asset
Purchases of property,
equipment and capitalized       (2,173)    (986)     (8,004)    (3,806)
internal-use software
development costs
Purchases of short-term         (7,861)    --       (74,578)   --
investments
Proceeds from sale of           22,618     --       43,783     --
short-term investments
Increase in restricted cash     --        --       --        (250)
Net cash used in investing      (17,853)   (986)     (99,549)   (4,056)
activities
FINANCING ACTIVITIES                                            
Payments of initial stock       --        (1)       --        (938)
offering costs
Proceeds from follow-on stock   --        --       51,943     --
offering, net of costs
Proceeds from exercise of stock 3,274      696       9,470      2,478
options
Excess tax benefit related to   93         --       365        --
stock-based compensation
Net cash provided by financing  3,367      695       61,778     1,540
activities
Effect of exchange rate
fluctuations on cash and cash   (44)       (34)      (46)       (73)
equivalents
Net decrease in cash and cash   (21,271)   (1,695)   (50,522)   (2,745)
equivalents
Cash and cash equivalents at    45,116     14,000    74,367     15,050
beginning of period
Cash and cash equivalents at    $23,845   $12,305  $23,845   $12,305
end of period
Supplemental disclosure of                                      
other cash flow information:
Cash paid for income taxes      $--      $87      $236      $105
Supplemental disclosure of
non-cash investing and                                          
financing activities:
Accretion of redeemable         $--      $10      $--      $35
convertible preferred stock
Accrued stock offering costs    --        666       --        1,600
Issuance of stock for           5,802      --       125,497    --
acquisition


Bazaarvoice, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
(in thousands, except net loss per share data)
                                                               
                               Three Months           Nine Months
                               Ended January 31,      Ended January 31,
                               2013        2012       2013        2012
Non-GAAP net loss and net loss                                  
per share:
GAAP net loss                   $(10,827) $(6,575) $(40,608) $(17,962)
Stock-based expense ^(1)        3,139      2,503     19,072     5,758
Amortization of acquired        1,615      --       3,683      --
intangible assets
Acquisition-related and other   2,021      --       4,771      --
expense
Income tax adjustment for       (34)       --       25         --
non-GAAP items
Non-GAAP net loss               $(4,086)  $(4,072) $(13,057) $(12,204)
                                                               
GAAP basic and diluted shares   71,940     19,613    68,115     19,284
Assumed preferred stock         --        27,897    --        27,897
conversion
Non-GAAP basic and diluted      71,940     47,510    68,115     47,181
shares
Non-GAAP basic and diluted net  $(0.06)   $(0.09)  $(0.19)   $(0.26)
loss per share
                                                               
Adjusted EBITDA:                                                
GAAP net loss                   $(10,827) $(6,575) $(40,608) $(17,962)
Stock-based expense ^(1)        3,139      2,503     19,072     5,758
Adjusted depreciation and       2,462      569       5,899      1,552
amortization ^(2)
Acquisition-related and other   2,021      --       4,771      --
expense
Income tax expense (benefit)    (2,293)    181       (1,731)    468
Total other (income) expense,   (12)       337       341        788
net
Adjusted EBITDA                 $(5,510)  $(2,985) $(12,256) $(9,396)
                                                               
^(1) Stock-based expense                                        
includes the following:
Cost of revenue                 $443      $319     $1,320    $986
Sales and marketing             710        419       3,405      1,233
Research and development        674        356       2,370      920
General and administrative      1,312      1,409     11,977     2,619
Stock-based expense             $3,139    $2,503   $19,072   $5,758
                                                               
^(2) Adjusted depreciation and
amortization includes the                                       
following:
Cost of revenue                 $682      $210     $1,800    $631
Sales and marketing             173        120       481        373
Research and development        169        134       474        295
General and administrative      273        105       601        253
Amortization of acquired        1,165      --       2,543      --
intangible assets
Adjusted depreciation and       $2,462    $569     $5,899    $1,552
amortization


Bazaarvoice, Inc.
Selected Quarterly Financial and Operational Metrics
(unaudited)
(in thousands, except active enterprise clients and full-time employees data)
                                                                                         
                   Three Months Ended
                   Apr 30,    Jul 31,    Oct 31,    Jan 31,    Apr 30,    Jul 31,    Oct 31,    Jan 31,
                   2011       2011       2011       2012       2012       2012       2012       2013
Revenue ^(1)        $19,281  $22,088  $25,015  $27,602  $31,431  $35,662  $38,626  $42,678
Cost of revenue     7,293     7,797     8,805     9,514     10,325    12,633    14,099    14,217
Gross profit        11,988    14,291    16,210    18,088    21,106    23,029    24,527    28,461
Operating expenses:                                                                       
Sales and marketing 10,116    11,192    12,125    12,152    14,257    15,322    17,850    20,710
Research and        2,999     3,343     4,576     6,059     6,811     7,494     7,948     8,914
development
General and         3,598     5,099     4,815     5,934     6,047     16,196    7,484     8,783
administrative
Acquisition-related --       --       --       --       --       1,384     1,366     2,021
and other
Amortization of
acquired intangible --       --       --       --       --       480       898       1,165
assets
Total operating     16,713    19,634    21,516    24,145    27,115    40,876    35,546    41,593
expenses
Operating loss      (4,725)   (5,343)   (5,306)   (6,057)   (6,009)   (17,847)  (11,019)  (13,132)
Total other income  205       (84)      (367)     (337)     (15)      (404)     51        12
(expense), net
Net loss before     (4,520)   (5,427)   (5,673)   (6,394)   (6,024)   (18,251)  (10,968)  (13,120)
income taxes
Income tax expense  139       109       178       181       343       288       274       (2,293)
(benefit)
Net loss            (4,659)   (5,536)   (5,851)   (6,575)   (6,367)   (18,539)  (11,242)  (10,827)
Stock-based expense 1,279     1,558     1,697     2,503     1,952     12,338    3,595     3,139
^(2)
Adjusted
depreciation and    449       471       512       569       552       1,338     2,099     2,462
amortization ^(3)
Acquisition-related --       --       --       --       --       1,384     1,366     2,021
and other expense
Income tax expense  139       109       178       181       343       288       274       (2,293)
(benefit)
Total other
(income) expense,   (205)     84        367       337       15        404       (51)      (12)
net
Adjusted EBITDA     $(2,997) $(3,314) $(3,097) $(2,985) $(3,505) $(2,787) $(3,959) $(5,510)
Number of active
enterprise clients  571       640       701       737       790       1,076     1,109     1,179
(at period end)
^(4)
Full-time employees 494       520       566       608       640       771       777       796
(at period end)
                                                                                         
^(1) Revenue
includes the                                                                              
following:
SaaS                $19,281  $22,088  $25,015  $27,602  $31,431  $35,662  $38,626  $40,710
Media               --       --       --       --       --       --       --       1,968
Revenue             $19,281  $22,088  $25,015  $27,602  $31,431  $35,662  $38,626  $42,678
^(2) Stock-based
expense includes                                                                          
the following:
Cost of revenue     $235     $323     $344     $319     $234     $294     $583     $443
Sales and marketing 307       402       412       419       636       1,825     870       710
Research and        176       204       360       356       406       642       1,054     674
development
General and         561       629       581       1,409     676       9,577     1,088     1,312
administrative
Stock-based expense $1,279   $1,558   $1,697   $2,503   $1,952   $12,338  $3,595   $3,139
^(3) Adjusted
depreciation and
amortization                                                                              
includes the
following:
Cost of revenue     $194     $207     $214     $210     $194     $437     $681     $682
Sales and marketing 113       129       124       120       117       133       175       173
Research and        50        68        93        134       136       144       161       169
development
General and         92        67        81        105       105       144       184       273
administrative
Amortization of
acquired intangible --       --       --       --       --       480       898       1,165
assets
Adjusted
depreciation and    $449     $471     $512     $569     $552     $1,338   $2,099   $2,462
amortization
                                                                                         
^(4) In connection with our acquisition of PowerReviews, which closed in June 2012, we expanded the types
of clients that we serve.To reflect differences among our clients and the services that we offer, we now
define our clients as "active enterprise clients" and "active network clients," the definitions of which
are set forth herein and in our Form 10-Q for the fiscal quarter ended October 31, 2012.Historical
references to active clients for periods prior to the closing of the acquisition include both active
enterprise clients and active network clients on an aggregate basis.As a result of this prospective
nomenclature change resulting from our acquisition of PowerReviews, active clients and active client
retention rates for periods prior to June 2012 and after June 2012 may not be directly comparable as we
have not made this distinction retrospectively.This change also has a corresponding impact on metrics that
are driven by the number of clients, such as revenue per active client.

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

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