Post Earnings Coverage as Bazaarvoice Q1 Results Beats Expectations
LONDON, UK / ACCESSWIRE / September 9, 2016 / Active Wall St. announces its post-earnings coverage on Bazaarvoice, Inc. (NASDAQ: BV). The company reported its financial results for the first quarter fiscal 2017 (Q1 FY17) on September 07, 2016. The Austin, Texas-based company reported a 2.5% y-o-y revenue growth for Q1 FY17, thus beating market expectation. Register with us now for your free membership at: http://www.activewallst.com/register/.
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Earnings Reviewed
For Q1 FY17, Bazaarvoice reported revenue of $50.09 million, which was above $48.88 million recorded at the end of Q1 FY16, which was above the company's earlier provide guidance range of $48.8 million to $49.3 million. The company's Q1 FY17 revenue also topped market estimate of $49.0 million.
The company recorded GAAP net loss of $5.11 million, or $0.06 loss per diluted share, in Q1 FY17, compared GAAP net loss of $10.24 million, or $0.13 loss diluted share, in Q1 FY16. Non-GAAP net loss for Q1 FY17 narrowed to $188.0 thousand, or $0.00 loss per diluted share, from $5.13 million, or $0.06 loss per diluted share, in Q1 FY16. The company's non-GAAP net loss outperformed market expectations of $0.01 loss per diluted share.
"The first quarter was a very good start to fiscal 2017 as we continued to experience a number of positive trends that suggest the business is turning the corner," said Gene Austin, chief executive officer and president, "Our mission going forward is to fully unleash that value to our clients and our shareholders."
Earnings Metrics
During Q1 FY17, the company's gross margins came in at 68.4%, up 220 basis points from the prior year comparable period, primarily due to economies of scale. The company was able to reduce its sales and marketing expenses in Q1 FY17 to $14.5 million, or 29% of revenue, from $17.7 million, or 36% of revenue, in the year-ago period.
During the quarter, the company updated it adjusted EBITDA definition to align with the definition used by other SaaS peers. As per the update definition, Bazaarvoice's adjusted EBITDA for Q1 FY17 was $3.91 million compared to a loss of $1.34 million in Q1 FY16.
Segment-wise
During the quarter, the social media marketing company's SaaS revenue grew 2% y-o-y to $47.8 million. The annualized SaaS revenue per average active client stood at $137,000 for Q1 FY17, with client retention ratio of 95.2%. Further, advertising revenue surged 12% y-o-y to $2.3 million as the company's stabilized its legacy advertising revenue and ramped up its shopper advertising solution.
Cash Flow & Balance Sheet
The company was able to achieve positive operating cash flow for the fourth quarter in a row. In the quarter ended on July 31, 2016, Bazaarvoice generated $129.0 thousand in cash from operations compared to cash used in operating activities of $6.38 million during Q1 FY16. As on July 31, 201, Bazaarvoice has $37 million as debt outstanding, $20 million less than a year-ago period. Additionally, the company had $43.51 million in cash and cash equivalents as on July 31, 2016, compared to $43.96 million as of April 30, 2016.
Outlook
For Q2 FY17, Bazaarvoice forecasts revenue to be in the range of $50.3 million to $50.9 million. The company anticipates non-GAAP loss per share to be in the range of $0.00 to $0.02. In its guidance for full year fiscal 2017, the management increased its revenue guidance to the range of $202.3 million to $204.3 million. The full-year FY17 non-GAAP loss per share is forecasted to range of $0.01 to $0.05. Furthermore, adjusted EBITDA is anticipated to be in the range of $15.3 million to $17.3 million for FY17.
Stock Performance
The stock closed the trading session at $4.76, surging 10.19% from its previous closing price of $4.32, on Thursday. A total volume of 1.71 million shares have exchanged hands, which was higher than the 3 months average volume of 682.58 thousand shares. Bazaarvoice's stock price advanced 12.26% in the last month, 20.20% in the past three months, and 43.81% in the previous six months.
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