Bazaarvoice, Inc. Announces Its Financial Results For The Fourth Fiscal Quarter And Fiscal Year Ended April 30, 2013

Fourth fiscal quarter of 2013 and recent strategic highlights include:
  • SaaS revenue for the fourth quarter increased by 35% year-over-year to $42.3 million
  • Net media revenue for the fourth quarter was $1.0 million
  • Number of active enterprise clients totaled 1,208 at the end of the period
  • Gene Austin was appointed president and Marc Cannon was appointed executive vice president of client services

AUSTIN, Texas, June 4, 2013 (GLOBE NEWSWIRE) -- Bazaarvoice, Inc. (Nasdaq:BV), the network connecting brands and retailers to the authentic voices of consumers wherever they shop, reported its financial results for the fourth fiscal quarter and fiscal year ended April 30, 2013.

"I am pleased with how we concluded fiscal 2013, both financially and operationally," said Stephen Collins, chief executive officer of Bazaarvoice. "We have now substantially completed the build out of our leadership team, and we look forward to embarking upon the next phase of growth as we continue to expand our network of brand and retail clients globally."

Fourth Fiscal Quarter of 2013 Financial Details

Revenue: Bazaarvoice reported revenue of $43.3 million for the fourth quarter of 2013, up 38% from the fourth quarter of 2012, which consisted of SaaS revenue of $42.3 million and net media revenue of $1.0 million.

Adjusted EBITDA: Adjusted EBITDA for the fourth quarter of 2013 was a loss of $6.9 million, compared to a loss of $3.5 million for the fourth quarter of 2012.

GAAP net loss and net loss per share: GAAP net loss was $23.1 million, compared to a GAAP net loss of $6.4 million for the fourth quarter of 2012. GAAP net loss per share was $0.32 based upon weighted average shares outstanding of 73.1 million, compared to $0.13 for the fourth quarter of 2012 based upon weighted average shares outstanding of 48.2 million.

Non-GAAP net loss and net loss per share: Non-GAAP net loss was $8.7 million, compared to a non-GAAP net loss of $4.3 million for the fourth quarter of 2012. Non-GAAP net loss per share was $0.12 based upon weighted average shares outstanding of 73.1 million, compared to $0.08 for the fourth quarter of 2012 based upon weighted average shares outstanding of 55.7 million.

Clients: The number of active enterprise clients at the end of the fourth quarter was 1,208, and the number of active network clients at the end of the fourth quarter was approximately 1,400. Annualized SaaS revenue per average active enterprise client for the fourth quarter was approximately $142,000. Active enterprise client retention rate for the fourth quarter was approximately 98%.

Fiscal Year 2013 Financial Details

Revenue: Bazaarvoice reported revenue of $160.3 million for the fiscal year ended April 30, 2013, up 51% from the fiscal year ended April 30, 2012, which consisted of SaaS revenue of $157.3 million and net media revenue of $3.0 million.

Adjusted EBITDA: Adjusted EBITDA for the fiscal year 2013 was a loss of $19.2 million, compared to a loss of $12.9 million for the fiscal year 2012.

GAAP net loss and net loss per share: GAAP net loss was $63.8 million, compared to a GAAP net loss of $24.3 million for the fiscal year 2012. GAAP net loss per share was $0.92 based upon weighted average shares outstanding of 69.3 million, compared to $0.92 for the fiscal year 2012 based upon weighted average shares outstanding of 26.4 million.

Non-GAAP net loss and net loss per share: Non-GAAP net loss was $21.7 million, compared to a non-GAAP net loss of $16.5 million for the fiscal year 2012. Non-GAAP net loss per share was $0.31 based upon weighted average shares outstanding of 69.3 million, compared to $0.34 for the fiscal year 2012 based upon weighted average shares outstanding of 48.3 million.

Clients: The number of active enterprise clients at the end of the fiscal year 2013 was 1,208, and the number of active network clients at the end of the fourth quarter was approximately 1,400. SaaS revenue per average active enterprise client for the fiscal year 2013 was approximately $144,000. Active enterprise client retention rate for the fiscal year 2013 was approximately 90%.

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 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.

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, 2013. To access this call, dial (800) 341-3130 from the United States or (913) 312-1386 internationally with conference ID 1980715. 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 18, 2013 by dialing (877) 870-5176 from the United States or (858) 384-5517 internationally with recording access code 1980715.

About Bazaarvoice

Bazaarvoice is one of the world's largest shopper networks connecting people, products, brands and retailers at each stage of the buying journey. For more than 2,000 clients globally, Bazaarvoice helps channel authentic, consumer-generated branded content into all the places that influence purchase decisions, giving our clients business insights so they can offer consumers more of what they want. Many of the world's largest retailers rely upon Bazaarvoice to drive more traffic to and conversion on their ecommerce sites, and the Bazaarvoice network helps brands participate directly in the retail channel to influence consumers at the point 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.

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 of more of solutions but has not implemented either the 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, 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. Non-GAAP net loss, which is used to calculate non-GAAP net loss per share, is defined as our GAAP net loss adjusted to exclude stock-based expense, contingent consideration related to 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 basic and diluted loss per share for the fourth fiscal quarter and fiscal year ended April 30, 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, statements about management's estimates regarding future revenue and financial performance, the ability to continue developing network solutions to leverage our consumer audience reach, content and data to create incremental value for clients, 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 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 January 31, 2013 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)
     
  April 30, April 30,
  2013 2012
Assets  
Current assets:    
Cash and cash equivalents  $ 25,045  $ 74,367
Restricted cash  604  500
Short-term investments  70,290  50,834
Accounts receivable, net  29,261  17,977
Prepaid expenses and other current assets  6,632  3,873
Total current assets  131,832  147,551
Property, equipment and capitalized internal-use software development costs, net  14,593  8,868
Goodwill  141,833  -- 
Acquired intangible assets, net  51,924  -- 
Other non-current assets  1,761  448
Total assets  $ 341,943  $ 156,867
Liabilities and stockholders' equity    
Current liabilities:    
Accounts payable  $ 6,637  $ 2,523
Accrued expenses and other current liabilities  32,390  12,725
Deferred revenue  54,854  42,152
Total current liabilities  93,881  57,400
Deferred revenue less current portion  2,049  3,434
Deferred tax liability, long-term  2,032  31
Other liabilities, long-term  2,632  2,404
Total liabilities  100,594  63,269
Stockholders' equity:    
Common stock  7  6
Additional paid-in capital  370,397  158,769
Accumulated other comprehensive loss  (146)  (20)
Accumulated deficit  (128,909)  (65,157)
Total stockholders' equity  241,349  93,598
Total liabilities and stockholders' equity  $ 341,943  $ 156,867
 
 
 
Bazaarvoice, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except net loss per share data)
         
  Three Months Twelve Months
  Ended April 30, Ended April 30,
  2013 2012 2013 2012
Revenue  $ 43,330  $ 31,431  $ 160,296  $ 106,136
Cost of revenue  14,158  10,325  55,107  36,441
Gross profit  29,172  21,106  105,189  69,695
Operating expenses:        
Sales and marketing  23,003  14,257  76,885  49,726
Research and development  8,690  6,811  33,046  20,789
General and administrative  10,744  6,047  43,207  21,895
Acquisition-related and other  7,441  --   12,212  -- 
Amortization of acquired intangible assets  1,381  --   3,924  -- 
Total operating expenses  51,259  27,115  169,274  92,410
Operating loss  (22,087)  (6,009)  (64,085)  (22,715)
Other income (expense), net:        
Interest income  107  --   217  17
Other income (expense)  (580)  (15)  (1,031)  (820)
Total other income (expense), net  (473)  (15)  (814)  (803)
Loss before income taxes  (22,560)  (6,024)  (64,899)  (23,518)
Income tax expense (benefit)  584  343  (1,147)  811
Net loss  $ (23,144)  $ (6,367)  $ (63,752)  $ (24,329)
Accretion of redeemable convertible preferred stock  --   (3)  --   (38)
Net loss applicable to common stockholders  $ (23,144)  $ (6,370)  $ (63,752)  $ (24,367)
Net loss per share applicable to common stockholders:        
Basic and diluted  $ (0.32)  $ (0.13)  $ (0.92)  $ (0.92)
Basic and diluted weighted average number of shares outstanding  73,121  48,236  69,336  26,403
 
 
 
Bazaarvoice, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
         
  Three Months Twelve Months
  Ended April 30, Ended April 30,
  2013 2012 2013 2012
         
Operating activities:        
Net loss  $ (23,144)  $ (6,367)  $ (63,752)  $ (24,329)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Depreciation and amortization expense  3,427  861  10,900  3,108
Stock-based expense  3,381  1,952  22,453  7,710
Revaluation of contingent consideration  (1,000)  --   (1,000)  -- 
Bad debt expense  1,216  158  2,859  1,083
Excess tax benefit related to stock-based compensation  (145)  (78)  (510)  (78)
Changes in operating assets and liabilities:        
Accounts receivable  (168)  2,828  (10,749)  (5,566)
Prepaid expenses and other current assets  (2,023)  (1,661)  (1,766)  (1,132)
Other non-current assets  (1,593)  63  (432)  (298)
Accounts payable  453  (1,197)  974  808
Accrued expenses and other current liabilities  6,256  51  13,283  5,176
Deferred revenue  3,986  3,461  8,633  13,432
Other liabilities, long-term  253  (235)  (2,699)  (234)
Net cash used in operating activities  (9,101)  (164)  (21,806)  (320)
Investing activities:        
Acquisitions, net of cash acquired, and purchase of intangible asset  --   --   (60,750)  -- 
Purchases of property, equipment and capitalized internal-use software development costs  (2,849)  (1,313)  (10,853)  (5,119)
Purchases of short-term investments  (16,250)  (50,884)  (90,828)  (50,884)
Proceeds from maturities of short-term investments  22,541  --   61,310  -- 
Proceeds from sale of short-term investments  5,018  --   10,032  -- 
Increase in restricted cash  --   --   --   (250)
Net cash provided by (used in) investing activities  8,460  (52,197)  (91,089)  (56,253)
Financing activities:        
Proceeds from initial public offering, net of costs  --   113,716  --   112,778
Proceeds from follow-on stock offering, net of costs  --   --   51,943  -- 
Proceeds from exercise of stock options  1,756  571  11,226  3,049
Excess tax benefit related to stock-based compensation  145  78  510  78
Net cash provided by financing activities  1,901  114,365  63,679  115,905
Effect of exchange rate fluctuations on cash and cash equivalents  (60)  58  (106)  (15)
Net decrease in cash and cash equivalents  1,200  62,062  (49,322)  59,317
Cash and cash equivalents at beginning of period  23,845  12,305  74,367  15,050
Cash and cash equivalents at end of period  $ 25,045  $ 74,367  $ 25,045  $ 74,367
         
Supplemental disclosure of other cash flow information:        
Cash paid for income taxes  $ 204  $ 225  $ 440  $ 330
Supplemental disclosure of non-cash investing and financing activities:        
Purchase of intangible asset recorded in accrued expenses and other current liabilities  $ 205  $ --   $ 705  $ -- 
Accretion of redeemable convertible preferred stock  $ --   $ 3  $ --   $ 38
Issuance of stock for acquisition  --   --   125,497  -- 
 
 
 
Bazaarvoice, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(unaudited)
(in thousands, except net loss per share data)
         
  Three Months Twelve Months
  Ended April 30, Ended April 30,
  2013 2012 2013 2012
Non-GAAP net loss and net loss per share:        
GAAP net loss  $ (23,144)  $ (6,367)  $ (63,752)  $ (24,329)
Stock-based expense (1)  3,381  1,952  22,453  7,710
Contingent consideration related to acquisition (2)  (410)  --   (410)  -- 
Amortization of acquired intangible assets  1,831  --   5,514  -- 
Acquisition-related and other expense  7,441  --   12,212  -- 
Other stock-related expense (3)  2,200  --   2,200  -- 
Income tax adjustment for non-GAAP items  39  119  64  119
Non-GAAP net loss  $ (8,662)  $ (4,296)  $ (21,719)  $ (16,500)
         
GAAP basic and diluted shares  73,121  48,236  69,336  26,403
Assumed preferred stock conversion  --   7,439  --   21,934
Non-GAAP basic and diluted shares  73,121  55,675  69,336  48,337
Non-GAAP basic and diluted net loss per share  $ (0.12)  $ (0.08)  $ (0.31)  $ (0.34)
         
Adjusted EBITDA:        
GAAP net loss  $ (23,144)  $ (6,367)  $ (63,752)  $ (24,329)
Stock-based expense (1)  3,381  1,952  22,453  7,710
Contingent consideration related to acquisition (2)  (410)  --   (410)  -- 
Adjusted depreciation and amortization (4)  2,537  552  8,436  2,104
Acquisition-related and other expense  7,441  --   12,212  -- 
Other stock-related expense (3)  2,200  --   2,200  -- 
Income tax expense (benefit)  584  343  (1,147)  811
Total other (income) expense, net  473  15  814  803
Adjusted EBITDA  $ (6,938)  $ (3,505)  $ (19,194)  $ (12,901)
         
(1) Stock-based expense includes the following:        
Cost of revenue  $ 384  $ 234  $ 1,704  $ 1,220
Sales and marketing  845  636  4,250  1,869
Research and development  756  406  3,126  1,326
General and administrative  1,396  676  13,373  3,295
Stock-based expense  $ 3,381  $ 1,952  $ 22,453  $ 7,710
         
(2) Contingent consideration related to acquisition includes the following:        
(a) Revaluation of contingent consideration        
General and administrative  $ (1,000)  $ --   $ (1,000)  $ -- 
(b) Contingent consideration included in compensation expense        
General and administrative  295  --   295  -- 
Sales and marketing  295  --   295  -- 
Contingent consideration related to acquisition  $ (410)  $ --   $ (410)  $ -- 
         
Revaluation of contingent consideration is the decrease in fair value of the liability-classified contingent consideration related to the acquisition of Longboard Media, Inc. Contingent consideration included in compensation expense relates to certain Longboard Media, Inc. employees whose right to receive such compensation is forfeited if they terminate their employment. We exclude these items from our non-GAAP financial measures in order to facilitate the comparison of post-acquisition operating results.
 
(3) Other stock-related expense includes the following:        
General and administrative  $ 2,200  $ --   $ 2,200  $ -- 
Other stock-related expense  $ 2,200  $ --   $ 2,200  $ -- 
         
Other stock-related expense represents a non-recurring estimated liability for taxes and related items in connection with our treatment of certain stock option grants. Since the estimated liability directly relates to stock option grants and as stock-based expenses are consistently excluded from our non-GAAP financial measures, we have excluded this estimated liability.
 
(4) Adjusted depreciation and amortization includes the following:        
Cost of revenue  $ 681  $ 194  $ 2,481  $ 825
Sales and marketing  120  117  601  490
Research and development  173  136  647  431
General and administrative  182  105  783  358
Amortization of acquired intangible assets  1,381  --   3,924  -- 
Adjusted depreciation and amortization  $ 2,537  $ 552  $ 8,436  $ 2,104
 
 
 
Bazaarvoice, Inc.
Selected Quarterly Financial and Operational Metrics
(unaudited)
(in thousands, except active enterprise clients and full-time employees data)
                 
  Three Months Ended
  Jul 31, Oct 31, Jan 31, Apr 30, Jul 31, Oct 31, Jan 31, Apr 30,
  2011 2011 2012 2012 2012 2012 2013 2013
Revenue (1)  $ 22,088  $ 25,015  $ 27,602  $ 31,431  $ 35,662  $ 38,626  $ 42,678  $ 43,330
Cost of revenue  7,797  8,805  9,514  10,325  12,633  14,099  14,217  14,158
Gross profit  14,291  16,210  18,088  21,106  23,029  24,527  28,461  29,172
Operating expenses:                
Sales and marketing  11,192  12,125  12,152  14,257  15,322  17,850  20,710  23,003
Research and development  3,343  4,576  6,059  6,811  7,494  7,948  8,914  8,690
General and administrative  5,099  4,815  5,934  6,047  16,196  7,484  8,783  10,744
Acquisition-related and other  --   --   --   --   1,384  1,366  2,021  7,441
Amortization of acquired intangible assets  --   --   --   --   480  898  1,165  1,381
Total operating expenses  19,634  21,516  24,145  27,115  40,876  35,546  41,593  51,259
Operating loss  (5,343)  (5,306)  (6,057)  (6,009)  (17,847)  (11,019)  (13,132)  (22,087)
Total other income (expense), net  (84)  (367)  (337)  (15)  (404)  51  12  (473)
Net loss before income taxes  (5,427)  (5,673)  (6,394)  (6,024)  (18,251)  (10,968)  (13,120)  (22,560)
Income tax expense (benefit)  109  178  181  343  288  274  (2,293)  584
Net loss  (5,536)  (5,851)  (6,575)  (6,367)  (18,539)  (11,242)  (10,827)  (23,144)
                 
Stock-based expense (2)  1,558  1,697  2,503  1,952  12,338  3,595  3,139  3,381
Contingent consideration related to acquisition (3)  --   --   --   --   --   --   --   (410)
Adjusted depreciation and amortization (4)  471  512  569  552  1,338  2,099  2,462  2,537
Acquisition-related and other expense  --   --   --   --   1,384  1,366  2,021  7,441
Other stock-related expense (5)  --   --   --   --   --   --   --   2,200
Income tax expense (benefit)  109  178  181  343  288  274  (2,293)  584
Total other (income) expense, net  84  367  337  15  404  (51)  (12)  473
Adjusted EBITDA  $ (3,314)  $ (3,097)  $ (2,985)  $ (3,505)  $ (2,787)  $ (3,959)  $ (5,510)  $ (6,938)
                 
Number of active enterprise clients (at period end) (6)  640  701  737  790  1,076  1,109  1,179  1,208
Full-time employees (at period end)  520  566  608  640  771  777  796  783
                 
(1) Revenue includes the following:                
SaaS  $ 22,088  $ 25,015  $ 27,602  $ 31,431  $ 35,662  $ 38,626  $ 40,710  $ 42,373
Media  --   --   --   --   --   --   1,968  957
Revenue  $ 22,088  $ 25,015  $ 27,602  $ 31,431  $ 35,662  $ 38,626  $ 42,678  $ 43,330
                 
(2) Stock-based expense includes the following:                
Cost of revenue  $ 323  $ 344  $ 319  $ 234  $ 294  $ 583  $ 443  $ 384
Sales and marketing  402  412  419  636  1,825  870  710  845
Research and development  204  360  356  406  642  1,054  674  756
General and administrative  629  581  1,409  676  9,577  1,088  1,312  1,396
Stock-based expense  $ 1,558  $ 1,697  $ 2,503  $ 1,952  $ 12,338  $ 3,595  $ 3,139  $ 3,381
                 
(3) Contingent consideration related to acquisition includes the following:                
(a) Revaluation of contingent consideration                
General and administrative  $ --   $ --   $ --   $ --   $ --   $ --   $ --   $ (1,000)
(b) Contingent consideration included in compensation expense                
General and administrative  --   --   --   --   --   --   --   295
Sales and marketing  --   --   --   --   --   --   --   295
Contingent consideration related to acquisition  $ --   $ --   $ --   $ --   $ --   $ --   $ --   $ (410)
                 
Revaluation of contingent consideration is the decrease in fair value of the liability-classified contingent consideration related to the acquisition of Longboard Media, Inc Contingent consideration included in compensation expense relates to certain Longboard Media, Inc. employees whose right to receive such compensation is forfeited if they terminate their employment. We exclude these items from our non-GAAP financial measures in order to facilitate the comparison of post-acquisition operating results.
 
(4) Adjusted depreciation and amortization includes the following:                
Cost of revenue  $ 207  $ 214  $ 210  $ 194  $ 437  $ 681  $ 682  $ 681
Sales and marketing  129  124  120  117  133  175  173  120
Research and development  68  93  134  136  144  161  169  173
General and administrative  67  81  105  105  144  184  273  182
Amortization of acquired intangible assets  --   --   --   --   480  898  1,165  1,381
Adjusted depreciation and amortization  $ 471  $ 512  $ 569  $ 552  $ 1,338  $ 2,099  $ 2,462  $ 2,537
                 
(5) Other stock-related expense includes the following:                
General and administrative  $ --   $ --   $ --   $ --   $ --   $ --   $ --   $ 2,200
Other stock-related expense  $ --   $ --   $ --   $ --   $ --   $ --   $ --   $ 2,200
                 
Other stock-related expense represents a non-recurring estimated liability for taxes and related items in connection with our treatment of certain stock option grants. Since the estimated liability directly relates to stock option grants and as stock-based expenses are consistently excluded from our non-GAAP financial measures, we have excluded this estimated liability.
 
(6) 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 January 31, 2013. 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:         Matt Krebsbach         Bazaarvoice, Inc.         (512) 551-6612         matt.krebsbach@bazaarvoice.com

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