Bazaarvoice Inc - FORM 8-K - EX-99.1

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8-K - FORM 8-K - Bazaarvoice Inc	d630443d8k.htm
EX-99.2 - EX-99.2 - Bazaarvoice Inc	d630443dex992.htm

Exhibit 99.1

Bazaarvoice, Inc. Announces its Financial Results for the Second Fiscal Quarter of 2014

Highlights include:

•

Increased total revenue for the second quarter by 17.9% year-over-year to $45.5 million.

•

Added 50 new active enterprise clients in the second quarter.

AUSTIN, Texas, November 20, 2013 — 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 second fiscal quarter of 2014 ended October 31, 2013.

“We were pleased with the continuing growth of our active enterprise clients and the number of brands connecting to our platform during the second quarter,” said Stephen Collins, Chief Executive Officer. “The combination of our expanding global network and our ability to provide deeper insights to both retailers and brands on their ecommerce ecosystems, positions the company well for future growth.”

Second Fiscal Quarter of 2014 Financial Details

Revenue: Bazaarvoice reported revenue of $45.5 million for the second quarter of 2014, up 17.9% from the second quarter of 2013, which consisted of SaaS revenue of $44.2 million and net media revenue of $1.3 million.

Adjusted EBITDA: Adjusted EBITDA for the second quarter of 2014 was a loss of $3.1 million, compared to a loss of $4.0 million for the second quarter of 2013.

GAAP net loss and net loss per share: GAAP net loss was $14.2 million, compared to a GAAP net loss of $11.2 million for the second quarter of 2013. GAAP net loss per share was $0.19 based upon weighted average shares outstanding of 75.1 million, compared to $0.16 for the second quarter of 2013 based upon weighted average shares outstanding of 69.8 million.

Non-GAAP net loss and net loss per share: Non-GAAP net loss was $4.8 million, compared to a non-GAAP net loss of $4.9 million for the second quarter of 2013. Non-GAAP net loss per share was $0.06 based upon weighted average shares outstanding of 75.1 million, compared to $0.07 for the second quarter of 2013 based upon weighted average shares outstanding of 69.8 million.

Clients: The number of active enterprise clients at the end of the second quarter was 1,289, and the number of active network clients at the end of the second quarter was 1,918. Annualized SaaS revenue per average active enterprise client for the second quarter was approximately $140,000. Active enterprise client retention rate for the second quarter was approximately 96.8%.

Quarterly Conference Call

Bazaarvoice will host a conference call today at 5:00 p.m. Eastern Time to review the company’s financial results for the second fiscal quarter of 2014 ended October 31, 2013. To access this call, dial (888) 208-1427 from the United States or (913) 312-0684 internationally with conference ID 7857573. 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 December 4, 2013 by dialing (877) 870-5176 from the United States or (858) 384-5517 internationally with recording access code 7857573.

About Bazaarvoice

Bazaarvoice is a network that connects brands and retailers to the authentic voices of people where they shop. Each month, more than 400 million people view and share authentic opinions, questions and experiences about tens of millions of products in the Bazaarvoice network. The company's technology platform amplifies these voices into the places that influence purchase decisions. Network analytics help marketers and advertisers provide more engaging experiences that drive brand awareness, consideration, sales and loyalty. Headquartered in Austin, Texas, Bazaarvoice has offices across North America, Europe and Asia-Pacific. 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 or more of our 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. 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, 2013, our Form 10-Q for the fiscal quarter ended July 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 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

Bazaarvoice, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)


	October 31,			April 30,
	2013			2013
Assets
Current assets:
Cash and cash equivalents	$	27,477		$	25,045
Restricted cash		604			604
Short-term investments		47,304			70,290
Accounts receivable, net		30,420			29,261
Prepaid expenses and other current assets		6,613			6,632

Total current assets		112,418			131,832
Property, equipment and capitalized internal-use software development costs, net		17,093			14,593
Goodwill		141,833			141,833
Acquired intangible assets, net		48,415			51,924
Other non-current assets		2,615			1,761

Total assets	$	322,374		$	341,943

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	6,628		$	6,637
Accrued expenses and other current liabilities		33,903			32,390
Deferred revenue		51,069			54,854

Total current liabilities		91,600			93,881
Deferred revenue less current portion		1,910			2,049
Deferred tax liability, long-term		2,024			2,032
Other liabilities, long-term		2,090			2,632

Total liabilities		97,624			100,594
Stockholders’ equity:
Common stock		8			7
Additional paid-in capital		385,140			370,397
Accumulated other comprehensive loss		33			(146	)
Accumulated deficit		(160,431	)		(128,909	)

Total stockholders’ equity		224,750			241,349

Total liabilities and stockholders’ equity	$	322,374		$	341,943

Bazaarvoice, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except net loss per share data)

(unaudited)


	Three Months						Six Months
	Ended October 31,						Ended October 31,
	2013			2012			2013			2012
Revenue	$	45,538		$	38,626		$	90,109		$	74,288
Cost of revenue		14,475			14,488			28,774			27,396

Gross profit		31,063			24,138			61,335			46,892

Operating expenses:
Sales and marketing		21,014			17,503			42,031			32,864
Research and development		10,024			8,237			19,140			15,936
General and administrative		3,959			7,153			12,888			22,830
Acquisition-related and other		8,283			1,366			15,787			2,750
Amortization of acquired intangible assets		1,305			898			2,609			1,378

Total operating expenses		44,585			35,157			92,455			75,758

Operating loss		(13,522	)		(11,019	)		(31,120	)		(28,866	)

Other income (expense), net:
Interest income		46			—			112			50
Other income (expense)		(295	)		51			(354	)		(403	)

Total other income (expense), net		(249	)		51			(242	)		(353	)

Loss before income taxes		(13,771	)		(10,968	)		(31,362	)		(29,219	)
Income tax expense		383			274			160			562

Net loss	$	(14,154	)	$	(11,242	)	$	(31,522	)	$	(29,781	)

Net loss per share:
Basic and diluted	$	(0.19	)	$	(0.16	)	$	(0.42	)	$	(0.45	)

Basic and diluted weighted average number of shares outstanding		75,088			69,846			74,535			66,203

Bazaarvoice, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Three Months						Six Months
	Ended October 31,						Ended October 31,
	2013			2012			2013			2012
Operating activities:
Net loss	$	(14,154	)	$	(11,242	)	$	(31,522	)	$	(29,781	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense		3,843			2,622			7,319			4,335
Stock-based expense		3,648			3,595			7,656			15,933
Revaluation of contingent consideration		(3,270	)		—			(3,270	)		—
Bad debt expense		65			630			631			783
Excess tax benefit related to stock-based expense		(3	)		(190	)		(93	)		(272	)
Changes in operating assets and liabilities:
Accounts receivable		(4,296	)		(5,929	)		(1,789	)		(4,800	)
Prepaid expenses and other current assets		384			(670	)		28			(228	)
Other non-current assets		(290	)		(173	)		(813	)		(116	)
Accounts payable		460			1,090			(14	)		3,176
Accrued expenses and other current liabilities		2,832			3,578			4,561			2,534
Deferred revenue		(1,493	)		1,610			(3,925	)		1,334
Other liabilities, long-term		(298	)		937			(537	)		1,138

Net cash used in operating activities		(12,572	)		(4,142	)		(21,768	)		(5,964	)
Investing activities:
Acquisitions, net of cash acquired, and purchase of intangible asset		—			—			(205	)		(30,314	)
Purchases of property, equipment and capitalized internal-use software development costs		(2,288	)		(2,635	)		(6,251	)		(5,830	)
Purchases of short-term investments		(8,956	)		(42,591	)		(34,117	)		(66,717	)
Proceeds from maturities of short-term investments		18,649			20,888			39,899			21,165
Proceeds from sales of short-term investments		1,150			—			17,250			—

Net cash provided by (used in) investing activities		8,555			(24,338	)		16,576			(81,696	)
Financing activities:
Proceeds from follow-on stock offering, net of costs		—			(241	)		—			51,943
Proceeds from employee stock compensation plans		4,553			5,416			7,390			6,196
Excess tax benefit related to stock-based expense		3			190			93			272

Net cash provided by financing activities		4,556			5,365			7,483			58,411
Effect of exchange rate fluctuations on cash and cash equivalents		198			86			141			(2	)

Net change in cash and cash equivalents		737			(23,029	)		2,432			(29,251	)
Cash and cash equivalents at beginning of period		26,740			68,145			25,045			74,367

Cash and cash equivalents at end of period	$	27,477		$	45,116		$	27,477		$	45,116

Supplemental disclosure of other cash flow information:
Cash paid (refunded) for income taxes	$	(57	)	$	—		$	300		$	236
Supplemental disclosure of non-cash investing and financing activities:
Accrued stock offering costs	$	—		$	—		$	—		$	246
Issuance of stock for acquisition		—			—			—			119,696

Bazaarvoice, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except net loss per share data)

(unaudited)


	Three Months						Six Months
	Ended October 31,						Ended October 31,
	2013			2012			2013			2012
Non-GAAP net loss and net loss per share:
GAAP net loss	$	(14,154	)	$	(11,242	)	$	(31,522	)	$	(29,781	)
Stock-based expense ⁽¹⁾		3,648			3,595			7,656			15,933
Contingent consideration related to acquisition⁽²⁾		(4,230	)		—			(3,860	)		—
Amortization of acquired intangible assets		1,754			1,349			3,508			2,068
Acquisition-related and other expense		8,283			1,366			15,787			2,750
Income tax adjustment for non-GAAP items		(53	)		35			(47	)		59

Non-GAAP net loss	$	(4,752	)	$	(4,897	)	$	(8,478	)	$	(8,971	)

GAAP basic and diluted shares		75,088			69,846			74,535			66,203

Non-GAAP basic and diluted net loss per share	$	(0.06	)	$	(0.07	)	$	(0.11	)	$	(0.14	)


Adjusted EBITDA:
GAAP net loss	$	(14,154	)	$	(11,242	)	$	(31,522	)	$	(29,781	)
Stock-based expense ⁽¹⁾		3,648			3,595			7,656			15,933
Contingent consideration related to acquisition⁽²⁾		(4,230	)		—			(3,860	)		—
Adjusted depreciation and amortization ⁽³⁾		2,705			2,099			5,264			3,437
Acquisition-related and other expense		8,283			1,366			15,787			2,750
Income tax expense (benefit)		383			274			160			562
Total other (income) expense, net		249			(51	)		242			353

Adjusted EBITDA	$	(3,116	)	$	(3,959	)	$	(6,273	)	$	(6,746	)


⁽¹⁾ Stock-based expense includes the following:
Cost of revenue	$	396		$	594		$	888		$	895
Sales and marketing		1,326			878			2,557			2,708
Research and development		679			1,062			1,503			1,709
General and administrative		1,247			1,061			2,708			10,621

Stock-based expense	$	3,648		$	3,595		$	7,656		$	15,933


⁽²⁾ Contingent consideration related to acquisition includes the following:
(a) Revaluation of contingent consideration
General and administrative	$	(3,270	)	$	—		$	(3,270	)	$	—
(b) Contingent consideration included in compensation expense
General and administrative		(480	)		—			(295	)		—
Sales and marketing		(480	)		—			(295	)		—

Contingent consideration related to acquisition	$	(4,230	)	$	—		$	(3,860	)	$	—


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. As of October 31, 2013, the Company determined that the probability of attaining the underlying performance goals had become remote and the resultant payout was estimated to be zero. As a result, the fair value of the liability-classified contingent consideration and the liability accrued for contingent consideration included in compensation expense were reduced to zero. We exclude these items from our non-GAAP financial measures in order to facilitate the comparison of post-acquisition operating results.

⁽³⁾ Adjusted depreciation and amortization includes the following:
Cost of revenue	$	688		$	681		$	1,364		$	1,118
Sales and marketing		318			175			539			308
Research and development		226			161			415			305
General and administrative		168			183			337			327
Amortization of acquired intangible assets		1,305			899			2,609			1,379

Adjusted depreciation and amortization	$	2,705		$	2,099		$	5,264		$	3,437

Bazaarvoice, Inc.

Selected Quarterly Financial and Operational Metrics

(in thousands, except active enterprise clients and full-time employees data)

(unaudited)


	Three Months Ended
	Jan 31,			Apr 30,			Jul 31,			Oct 31,			Jan 31,			Apr 30,			Jul 31,			Oct 31,
	2012			2012			2012			2012			2013			2013			2013			2013
Revenue ⁽¹⁾	$	27,602		$	31,431		$	35,662		$	38,626		$	42,678		$	43,330		$	44,571		$	45,538
Cost of revenue ⁽²⁾		9,760			10,606			12,908			14,488			14,659			14,572			14,299			14,475

Gross profit		17,842			20,825			22,754			24,138			28,019			28,758			30,272			31,063
Operating expenses:
Sales and marketing^{(2), (4)}		12,228			14,284			15,361			17,503			20,193			22,140			21,017			21,014
Research and development ⁽²⁾		6,189			6,995			7,699			8,237			9,217			8,983			9,116			10,024
General and administrative ^{(2), (4)}		5,482			5,555			15,677			7,153			8,555			10,900			8,929			3,959
Acquisition-related and other		—			—			1,384			1,366			2,021			7,441			7,504			8,283
Amortization of acquired intangible assets		—			—			480			898			1,165			1,381			1,304			1,305

Total operating expenses		23,899			26,834			40,601			35,157			41,151			50,845			47,870			44,585

Operating loss		(6,057	)		(6,009	)		(17,847	)		(11,019	)		(13,132	)		(22,087	)		(17,598	)		(13,522	)
Total other income (expense), net		(337	)		(15	)		(404	)		51			12			(473	)		7			(249	)

Net loss before income taxes		(6,394	)		(6,024	)		(18,251	)		(10,968	)		(13,120	)		(22,560	)		(17,591	)		(13,771	)
Income tax expense (benefit)		181			343			288			274			(2,293	)		584			(223	)		383

Net loss		(6,575	)		(6,367	)		(18,539	)		(11,242	)		(10,827	)		(23,144	)		(17,368	)		(14,154	)


Stock-based expense ⁽³⁾		2,503			1,952			12,338			3,595			3,139			3,381			4,008			3,648
Contingent consideration related to acquisition ⁽⁴⁾		—			—			—			—			—			(410	)		370			(4,230	)
Adjusted depreciation and amortization ⁽⁵⁾		569			552			1,338			2,099			2,462			2,537			2,559			2,705
Acquisition-related and other expense		—			—			1,384			1,366			2,021			7,441			7,504			8,283
Other stock-related expense ⁽⁶⁾		—			—			—			—			—			2,200			—			—
Income tax expense (benefit)		181			343			288			274			(2,293	)		584			(223	)		383
Total other (income) expense, net		337			15			404			(51	)		(12	)		473			(7	)		249

Adjusted EBITDA	$	(2,985	)	$	(3,505	)	$	(2,787	)	$	(3,959	)	$	(5,510	)	$	(6,938	)	$	(3,157	)	$	(3,116	)

Number of active enterprise clients (at period end) ⁽⁷⁾		737			790			1,076			1,109			1,179			1,208			1,239			1,289
Full-time employees (at period end)		608			640			771			777			796			783			776			798

⁽¹⁾ Revenue includes the following:
SaaS	$	27,602		$	31,431		$	35,662		$	38,626		$	40,710		$	42,373		$	43,042		$	44,231
Media		—			—			—			—			1,968			957			1,529			1,307

Revenue	$	27,602		$	31,431		$	35,662		$	38,626		$	42,678		$	43,330		$	44,571		$	45,538


⁽²⁾ To conform with the basis of presentation adopted in the three months ended July 31, 2013, the presentation of certain expense line items for prior periods has been adjusted to reflect the reclassification of bad debt expense from sales and marketing to general and administrative, and to allocate certain information technology costs from general and administrative to cost of revenue, sales and marketing, and research and development.

⁽³⁾ Stock-based expense includes the following:
Cost of revenue	$	319		$	240		$	301		$	594		$	454		$	385		$	492		$	396
Sales and marketing		419			640			1,830			878			718			846			1,231			1,326
Research and development		356			410			647			1,062			681			757			824			679
General and administrative		1,409			662			9,560			1,061			1,286			1,393			1,461			1,247

Stock-based expense	$	2,503		$	1,952		$	12,338		$	3,595		$	3,139		$	3,381		$	4,008		$	3,648

Bazaarvoice, Inc.

Selected Quarterly Financial and Operational Metrics (continued)

(in thousands, except active enterprise clients and full-time employees data)

(unaudited)


	Three Months Ended
	Jan 31,		Apr 30,		Jul 31,		Oct 31,		Jan 31,		Apr 30,			Jul 31,		Oct 31,
	2012		2012		2012		2012		2013		2013			2013		2013

⁽⁴⁾ Contingent consideration related to acquisition includes the following:

(a) Revaluation of contingent consideration
General and administrative	$	—	$	—	$	—	$	—	$	—	$	(1,000	)	$	—	$	(3,270	)
(b) Contingent consideration included in compensation expense
General and administrative		—		—		—		—		—		295			185		(480	)
Sales and marketing		—		—		—		—		—		295			185		(480	)

Contingent consideration related to acquisition	$	—	$	—	$	—	$	—	$	—	$	(410	)	$	370	$	(4,230	)


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. As of October 31, 2013, the Company determined that the probability of attaining the underlying performance goals had become remote and the resultant payout was estimated to be zero. As a result, the fair value of the liability-classified contingent consideration and the liability accrued for contingent consideration included in compensation expense were reduced to zero. We exclude these items from our non-GAAP financial measures in order to facilitate the comparison of post-acquisition operating results.
	Three Months Ended
	Jan 31,		Apr 30,		Jul 31,		Oct 31,		Jan 31,		Apr 30,			Jul 31,		Oct 31,
	2012		2012		2012		2012		2013		2013			2013		2013

⁽⁵⁾ Adjusted depreciation and amortization includes the following:

Cost of revenue	$	210	$	194	$	437	$	681	$	682	$	681		$	676	$	688
Sales and marketing		120		117		133		175		173		120			221		318
Research and development		134		136		144		161		169		173			189		226
General and administrative		105		105		144		184		273		182			169		168
Amortization of acquired intangible assets		—		—		480		898		1,165		1,381			1,304		1,305

Adjusted depreciation and amortization	$	569	$	552	$	1,338	$	2,099	$	2,462	$	2,537		$	2,559	$	2,705


⁽⁶⁾ Other stock-related expense includes the following:

General and administrative	$	—	$	—	$	—	$	—	$	—	$	2,200		$	—	$	—

Other stock-related expense	$	—	$	—	$	—	$	—	$	—	$	2,200		$	—	$	—

Other stock-related expense represents an 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.

⁽⁷⁾

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.

Bazaarvoice Inc - FORM 8-K - EX-99.1 - November 20, 2013

Attached files

Bazaarvoice Inc Reports