With Bazaarvoice's (BV +16.9%) shares having closed yesterday near their 52-week low of $6.45, investors are paying more attention to the company's FQ3 beat than the light FQ4 guidance - revenue of $44.9M-$45.9M and EPS of -$0.12 to -$0.12 vs. a consensus of $46.3M and -$0.09 - it provided on its CC (transcript).
Bazaarvoice ended FQ3 with 1,308 enterprise clients, up 19 Q/Q. Total customers rose to 3,300+ from 3,200+, and the company's deferred revenue balance grew to $55.7M from $53M.
CEO Eugene Austin mentioned Bazaarvoice has "received significant interest from multiple parties" for its PowerReviews unit, following a January court ruling backing a DOJ suit opposing Bazaarvoice's 2012 acquisition of PowerReviews.
Morgan Stanley (Equal-Weight) thinks the FQ3 results "showed some signs of improved execution." But it also notes "low-end attrition continues to weigh on net adds," and believes "distractions" related to PowerReviews are still an overhang.