Bazaarvoice soars on FQ3 beat; PowerReviews sees M&A interest

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.

From other sites
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs