Delaware | 001-35433 | 20-2908277 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Exhibit No. | Description | |
99.1 | Bazaarvoice, Inc. Press Release dated November 27, 2017. |
BAZAARVOICE, INC. | ||||
By: | /s/ Kin Gill | |||
Kin Gill Chief Legal Officer, General Counsel and Secretary |
October 31, 2017 | April 30, 2017 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 51,988 | $ | 52,494 | |||
Short-term investments | 13,224 | 38,689 | |||||
Accounts receivable, net | 41,424 | 43,713 | |||||
Prepaid expenses and other current assets | 6,261 | 7,619 | |||||
Total current assets | 112,897 | 142,515 | |||||
Property, equipment and capitalized internal-use software development costs, net | 28,964 | 28,358 | |||||
Goodwill | 139,155 | 139,155 | |||||
Acquired intangible assets, net | 6,772 | 7,717 | |||||
Other non-current assets | 4,582 | 4,210 | |||||
Total assets | $ | 292,370 | $ | 321,955 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 4,596 | $ | 4,310 | |||
Accrued expenses and other current liabilities | 16,408 | 20,602 | |||||
Revolving line of credit | — | 32,000 | |||||
Deferred revenue | 68,259 | 69,656 | |||||
Total current liabilities | 89,263 | 126,568 | |||||
Long-term liabilities: | |||||||
Deferred revenue less current portion | 1,467 | 2,540 | |||||
Other liabilities, long-term | 7,169 | 6,542 | |||||
Total liabilities | 97,899 | 135,650 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock | 8 | 8 | |||||
Additional paid-in capital | 466,305 | 455,755 | |||||
Accumulated other comprehensive loss | (1,369 | ) | (1,682 | ) | |||
Accumulated deficit | (270,473 | ) | (267,776 | ) | |||
Total stockholders’ equity | 194,471 | 186,305 | |||||
Total liabilities and stockholders’ equity | $ | 292,370 | $ | 321,955 |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue | $ | 53,409 | $ | 50,408 | $ | 105,567 | $ | 100,501 | |||||||
Cost of revenue | 19,565 | 18,855 | 39,330 | 37,611 | |||||||||||
Gross profit | 33,844 | 31,553 | 66,237 | 62,890 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | 14,245 | 15,819 | 28,849 | 31,123 | |||||||||||
Research and development | 10,055 | 9,959 | 20,558 | 21,032 | |||||||||||
General and administrative | 8,013 | 8,051 | 16,598 | 16,310 | |||||||||||
Restructuring charges | 16 | 767 | 56 | 1,094 | |||||||||||
Acquisition-related and other | 478 | 120 | 739 | 296 | |||||||||||
Amortization of acquired intangible assets | 310 | 310 | 619 | 619 | |||||||||||
Total operating expenses | 33,117 | 35,026 | 67,419 | 70,474 | |||||||||||
Operating income (loss) | 727 | (3,473 | ) | (1,182 | ) | (7,584 | ) | ||||||||
Other income (expense), net: | |||||||||||||||
Interest income | 56 | 153 | 142 | 295 | |||||||||||
Interest expense | (252 | ) | (459 | ) | (646 | ) | (948 | ) | |||||||
Other expense | (366 | ) | (263 | ) | (341 | ) | (775 | ) | |||||||
Total other expense, net | (562 | ) | (569 | ) | (845 | ) | (1,428 | ) | |||||||
Income (loss) before income taxes | 165 | (4,042 | ) | (2,027 | ) | (9,012 | ) | ||||||||
Income tax expense | 220 | 92 | 344 | 227 | |||||||||||
Net loss | $ | (55 | ) | $ | (4,134 | ) | $ | (2,371 | ) | $ | (9,239 | ) | |||
Net loss per share, basic and diluted | $ | 0.00 | $ | (0.05 | ) | $ | (0.03 | ) | $ | (0.11 | ) | ||||
Basic and diluted weighted average number of shares outstanding | 85,630 | 82,930 | 85,147 | 82,572 |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Operating activities: | |||||||||||||||
Net loss | $ | (55 | ) | $ | (4,134 | ) | $ | (2,371 | ) | $ | (9,239 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||||||
Depreciation and amortization expense | 3,589 | 3,532 | 7,076 | 7,110 | |||||||||||
Stock-based expense | 4,527 | 4,239 | 9,349 | 8,183 | |||||||||||
Bad debt expense (recovery) | 128 | (64 | ) | 207 | (243 | ) | |||||||||
Amortization of deferred financing costs | 78 | 59 | 137 | 118 | |||||||||||
Loss on sublease | — | 501 | — | 501 | |||||||||||
Other non-cash expense | 13 | (88 | ) | (33 | ) | (127 | ) | ||||||||
Changes in operating assets and liabilities: | |||||||||||||||
Accounts receivable | 7,310 | 596 | 2,083 | 2,345 | |||||||||||
Prepaid expenses and other current assets | 531 | (7 | ) | 1,335 | (514 | ) | |||||||||
Other non-current assets | (254 | ) | 89 | (341 | ) | 958 | |||||||||
Accounts payable | 544 | 212 | 83 | (2,404 | ) | ||||||||||
Accrued expenses and other current liabilities | (1,320 | ) | (127 | ) | (5,125 | ) | (4,569 | ) | |||||||
Deferred revenue | (5,449 | ) | (3,062 | ) | (2,470 | ) | (88 | ) | |||||||
Other liabilities, long-term | (107 | ) | (156 | ) | (123 | ) | (312 | ) | |||||||
Net cash provided by operating activities | 9,535 | 1,590 | 9,807 | 1,719 | |||||||||||
Investing activities: | |||||||||||||||
Purchases of property, equipment and capitalized internal-use software development costs | (2,263 | ) | (2,113 | ) | (4,595 | ) | (4,873 | ) | |||||||
Purchases of short-term investments | (3,161 | ) | (2,349 | ) | (20,215 | ) | (15,040 | ) | |||||||
Proceeds from maturities of short-term investments | 2,600 | 8,870 | 20,814 | 23,880 | |||||||||||
Proceeds from sale of short-term investments | 24,847 | — | 24,847 | — | |||||||||||
Net cash provided by investing activities | 22,023 | 4,408 | 20,851 | 3,967 | |||||||||||
Financing activities: | |||||||||||||||
Proceeds from employee stock compensation plans | 469 | 329 | 582 | 724 | |||||||||||
Payments on revolving line of credit | (27,000 | ) | (5,000 | ) | (32,000 | ) | (5,000 | ) | |||||||
Net cash used in financing activities | (26,531 | ) | (4,671 | ) | (31,418 | ) | (4,276 | ) | |||||||
Effect of exchange rate fluctuations on cash and cash equivalents | (55 | ) | (408 | ) | 254 | (946 | ) | ||||||||
Net change in cash and cash equivalents | 4,972 | 919 | (506 | ) | 464 | ||||||||||
Cash and cash equivalents at beginning of period | 47,016 | 43,508 | 52,494 | 43,963 | |||||||||||
Cash and cash equivalents at end of period | $ | 51,988 | $ | 44,427 | $ | 51,988 | $ | 44,427 | |||||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||||||||
Purchase of fixed assets recorded in accounts payable and accrued expenses | $ | 562 | $ | 85 | $ | 964 | $ | 85 | |||||||
Purchase of leasehold improvements funded by tenant improvement allowance | $ | — | $ | — | $ | 925 | $ | — | |||||||
Capitalized stock-based compensation | $ | 163 | $ | 124 | $ | 300 | $ | 246 |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Non-GAAP net income per share: | |||||||||||||||
GAAP net loss | $ | (55 | ) | $ | (4,134 | ) | $ | (2,371 | ) | $ | (9,239 | ) | |||
Stock-based expense (1) | 4,527 | 4,239 | 9,349 | 8,183 | |||||||||||
Restructuring charges (3) | 16 | 767 | 56 | 1,094 | |||||||||||
Amortization of acquired intangible assets | 472 | 472 | 945 | 945 | |||||||||||
Acquisition-related and other expense | 478 | 120 | 739 | 296 | |||||||||||
Other stock-related benefit (4) | (41 | ) | (25 | ) | (41 | ) | (25 | ) | |||||||
Income tax adjustment for non-GAAP items | 6 | 3 | 4 | — | |||||||||||
Non-GAAP net income | $ | 5,403 | $ | 1,442 | $ | 8,681 | $ | 1,254 | |||||||
GAAP basic and diluted shares | 85,630 | 82,930 | 85,147 | 82,572 | |||||||||||
Non-GAAP basic and diluted net income per share | $ | 0.06 | $ | 0.02 | $ | 0.10 | $ | 0.02 | |||||||
Adjusted EBITDA: | |||||||||||||||
GAAP net loss | $ | (55 | ) | $ | (4,134 | ) | $ | (2,371 | ) | $ | (9,239 | ) | |||
Stock-based expense (1) | 4,527 | 4,239 | 9,349 | 8,183 | |||||||||||
Depreciation and amortization (2) | 3,589 | 3,532 | 7,076 | 7,110 | |||||||||||
Restructuring charges (3) | 16 | 767 | 56 | 1,094 | |||||||||||
Acquisition-related and other expense | 478 | 120 | 739 | 296 | |||||||||||
Other stock-related benefit (4) | (41 | ) | (25 | ) | (41 | ) | (25 | ) | |||||||
Income tax expense | 220 | 92 | 344 | 227 | |||||||||||
Total other expense, net | 562 | 569 | 845 | 1,428 | |||||||||||
Adjusted EBITDA | $ | 9,296 | $ | 5,160 | $ | 15,997 | $ | 9,074 | |||||||
Free cash flow: | |||||||||||||||
Net cash provided by operating activities | $ | 9,535 | $ | 1,590 | 9,807 | 1,719 | |||||||||
Purchases of property, equipment and capitalized internal-use software development costs | (2,263 | ) | (2,113 | ) | (4,595 | ) | (4,873 | ) | |||||||
Free cash flow | $ | 7,272 | $ | (523 | ) | 5,212 | (3,154 | ) |
Stock-based expense includes the following: | |||||||||||||||
Cost of revenue | $ | 618 | $ | 486 | $ | 1,185 | $ | 830 | |||||||
Sales and marketing | 970 | 843 | 2,037 | 1,423 | |||||||||||
Research and development | 1,083 | 907 | 2,163 | 1,960 | |||||||||||
General and administrative | 1,856 | 2,003 | 3,964 | 3,970 | |||||||||||
Stock-based expense | $ | 4,527 | $ | 4,239 | $ | 9,349 | $ | 8,183 |
Depreciation and amortization includes the following: | |||||||||||||||
Cost of revenue | $ | 2,595 | $ | 2,600 | $ | 5,175 | $ | 5,192 | |||||||
Sales and marketing | 177 | 189 | 320 | 385 | |||||||||||
Research and development | 231 | 204 | 440 | 435 | |||||||||||
General and administrative | 276 | 229 | 522 | 479 | |||||||||||
Amortization of acquired intangible assets | 310 | 310 | 619 | 619 | |||||||||||
Depreciation and amortization | $ | 3,589 | $ | 3,532 | $ | 7,076 | $ | 7,110 |
(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. |
(4) | 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 and six 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 believes is probable to be incurred related to 401(k) deferrals on employee stock-based compensation. During the three and six months ended October 31, 2017, the Company recorded a benefit of $41 thousand due to a reduction in previously recorded estimated tax liabilities that have exceeded the statute of limitations. |
Three Months Ended | |||||||||||||||||||||||||||||||
Jan 31, | Apr 30, | Jul 31, | Oct 31, | Jan 31, | Apr 30, | Jul 31, | Oct 31, | ||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2017 | 2017 | 2017 | 2017 | ||||||||||||||||||||||||
Revenue (1) | $ | 50,255 | $ | 50,709 | $ | 50,093 | $ | 50,408 | $ | 50,525 | $ | 50,209 | $ | 52,158 | $ | 53,409 | |||||||||||||||
Cost of revenue | 18,920 | 19,253 | 18,756 | 18,855 | 19,196 | 19,596 | 19,765 | 19,565 | |||||||||||||||||||||||
Gross profit | 31,335 | 31,456 | 31,337 | 31,553 | 31,329 | 30,613 | 32,393 | 33,844 | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||
Sales and marketing | 16,113 | 18,027 | 15,304 | 15,819 | 16,322 | 17,803 | 14,604 | 14,245 | |||||||||||||||||||||||
Research and development | 10,199 | 10,391 | 11,073 | 9,959 | 9,588 | 9,467 | 10,503 | 10,055 | |||||||||||||||||||||||
General and administrative | 6,940 | 7,577 | 8,259 | 8,051 | 7,299 | 8,343 | 8,585 | 8,013 | |||||||||||||||||||||||
Restructuring charges | — | 1,575 | 327 | 767 | — | 1,108 | 40 | 16 | |||||||||||||||||||||||
Sales tax refund | — | — | — | — | — | (3,341 | ) | — | — | ||||||||||||||||||||||
Acquisition-related and other expense | 332 | 157 | 176 | 120 | 84 | 196 | 261 | 478 | |||||||||||||||||||||||
Amortization of acquired intangible assets | 309 | 309 | 309 | 310 | 309 | 309 | 309 | 310 | |||||||||||||||||||||||
Total operating expenses | 33,893 | 38,036 | 35,448 | 35,026 | 33,602 | 33,885 | 34,302 | 33,117 | |||||||||||||||||||||||
Operating income (loss) | (2,558 | ) | (6,580 | ) | (4,111 | ) | (3,473 | ) | (2,273 | ) | (3,272 | ) | (1,909 | ) | 727 | ||||||||||||||||
Total other expense, net | (719 | ) | (384 | ) | (859 | ) | (569 | ) | (332 | ) | (499 | ) | (283 | ) | (562 | ) | |||||||||||||||
Income (loss) before income taxes | (3,277 | ) | (6,964 | ) | (4,970 | ) | (4,042 | ) | (2,605 | ) | (3,771 | ) | (2,192 | ) | 165 | ||||||||||||||||
Income tax expense (benefit) | (163 | ) | 165 | 135 | 92 | 123 | 203 | 124 | 220 | ||||||||||||||||||||||
Net loss | $ | (3,114 | ) | $ | (7,129 | ) | $ | (5,105 | ) | $ | (4,134 | ) | $ | (2,728 | ) | $ | (3,974 | ) | $ | (2,316 | ) | $ | (55 | ) | |||||||
Stock-based expense (2) | $ | 3,762 | $ | 3,602 | $ | 3,944 | $ | 4,239 | $ | 3,989 | $ | 4,110 | $ | 4,822 | $ | 4,527 | |||||||||||||||
Depreciation and amortization (3) | 3,512 | 3,575 | 3,578 | 3,532 | 3,513 | 3,516 | 3,487 | 3,589 | |||||||||||||||||||||||
Restructuring charges (4) | — | 1,575 | 327 | 767 | — | 1,108 | 40 | 16 | |||||||||||||||||||||||
Sales tax refund (5) | — | — | — | — | — | (3,341 | ) | — | — | ||||||||||||||||||||||
Acquisition-related and other expense | 332 | 157 | 176 | 120 | 84 | 196 | 261 | 478 | |||||||||||||||||||||||
Other stock-related benefit (6) | — | — | — | (25 | ) | — | — | — | (41 | ) | |||||||||||||||||||||
Income tax expense (benefit) | (163 | ) | 165 | 135 | 92 | 123 | 203 | 124 | 220 | ||||||||||||||||||||||
Total other expense, net | 719 | 384 | 859 | 569 | 332 | 499 | 283 | 562 | |||||||||||||||||||||||
Adjusted EBITDA (7) | $ | 5,048 | $ | 2,329 | $ | 3,914 | $ | 5,160 | $ | 5,313 | $ | 2,317 | $ | 6,701 | $ | 9,296 | |||||||||||||||
Number of active clients (at period end) | 1,383 | 1,399 | 1,397 | 1,412 | 1,456 | 1,494 | 1,524 | 1,580 | |||||||||||||||||||||||
Full-time employees (at period end) (8) | 806 | 747 | 744 | 764 | 769 | 755 | 763 | 776 |
Revenue includes the following: | |||||||||||||||||||||||||||||||
SaaS | $ | 47,884 | $ | 49,108 | $ | 47,799 | $ | 48,121 | $ | 47,266 | $ | 47,870 | $ | 49,323 | $ | 50,530 | |||||||||||||||
Advertising | 2,371 | 1,601 | 2,294 | 2,287 | 3,259 | 2,339 | 2,835 | 2,879 | |||||||||||||||||||||||
Revenue | $ | 50,255 | $ | 50,709 | $ | 50,093 | $ | 50,408 | $ | 50,525 | $ | 50,209 | $ | 52,158 | $ | 53,409 |
(2) | During the first quarter of fiscal 2017 we updated our calculation of Adjusted EBITDA. As a result of this update prior period stock compensation amounts have been updated to conform to the current presentation. Under the new definition of Adjusted EBITDA the capitalized portion of stock-based compensation related to the capitalization of internal-use software is excluded from stock-based expense. |
Three Months Ended | |||||||||||||||||||||||||||||||
Jan 31, | Apr 30, | Jul 31, | Oct 31, | Jan 31, | Apr 30, | Jul 31, | Oct 31, | ||||||||||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2017 | 2017 | 2017 | 2017 | ||||||||||||||||||||||||
Stock-based expense includes the following: | |||||||||||||||||||||||||||||||
Cost of revenue | $ | 585 | $ | 503 | $ | 344 | $ | 486 | $ | 475 | $ | 429 | $ | 567 | $ | 618 | |||||||||||||||
Sales and marketing | 686 | 543 | 580 | 843 | 850 | 723 | 1,067 | 970 | |||||||||||||||||||||||
Research and development | 786 | 769 | 1,053 | 907 | 867 | 943 | 1,080 | 1,083 | |||||||||||||||||||||||
General and administrative | 1,705 | 1,787 | 1,967 | 2,003 | 1,797 | 2,015 | 2,108 | 1,856 | |||||||||||||||||||||||
Stock-based expense | $ | 3,762 | $ | 3,602 | $ | 3,944 | $ | 4,239 | $ | 3,989 | $ | 4,110 | $ | 4,822 | $ | 4,527 |
(3) | 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. |
Depreciation and amortization includes the following: | |||||||||||||||||||||||||||||||
Cost of revenue | $ | 2,559 | $ | 2,619 | $ | 2,592 | $ | 2,600 | $ | 2,601 | $ | 2,613 | $ | 2,580 | $ | 2,595 | |||||||||||||||
Sales and marketing | 210 | 201 | 196 | 189 | 183 | 168 | 143 | 177 | |||||||||||||||||||||||
Research and development | 228 | 227 | 231 | 204 | 194 | 191 | 209 | 231 | |||||||||||||||||||||||
General and administrative | 206 | 219 | 250 | 229 | 226 | 235 | 246 | 276 | |||||||||||||||||||||||
Amortization of acquired intangible assets | 309 | 309 | 309 | 310 | 309 | 309 | 309 | 310 | |||||||||||||||||||||||
Depreciation and amortization | $ | 3,512 | $ | 3,575 | $ | 3,578 | $ | 3,532 | $ | 3,513 | $ | 3,516 | $ | 3,487 | $ | 3,589 |
(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 |
(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 and stock-based compensation 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. All periods prior to the first fiscal quarter of 2017 discussed in this press release or presented in the accompanying financial tables have been revised to conform to this definition Adjusted EBITDA. |
(8) | During the first quarter of fiscal 2018 we updated our definition of full-time employees to exclude temporary contractors. As a result of this update all prior period amounts have been updated to conform to the current definition. |