Image source: Bazaarvoice Inc.
Continue Reading Below
Shares of Bazaarvoice Inc. (NASDAQ: BV) fell 11.3% Thursday after the smart shopper-network specialist released mixed fiscal second-quarter 2017 results and a disappointing outlook.
Quarterly revenue climbed a modest 1% year over year, to $50.4 million, while the company's net loss (based on generally accepted accounting principles, or GAAP) narrowed to $4.1 million from $4.9 million in last year's fiscal second quarter. On an adjusted (non-GAAP) basis, Bazaarvoice's net income was $1.4 million, or $0.02 per share, compared to an adjusted net loss of $0.4 million, or flat on a per-share basis in the same year-ago period. Adjusted earnings before interest, taxes, depreciation and amortization rose 67.7% year over year, to $5.2 million.
For perspective, these results were mixed relative to the guidance Bazaarvoice provided last quarter, which called for quarterly revenue in the range of $50.3 million to $50.9 million, adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $4.1 million to $4.7 million, and an adjusted loss per share ranging from $0.00 to $0.02.
Bazaarvoice CEO Gene Austin added:
Management also provided fresh guidance during the subsequent quarterly conference call. For the current quarter, Bazaarvoice anticipates revenue of $50.4 million to $51.2 million, adjusted EBITDA ranging from $3.5 million to $4.1 million, and an adjusted loss per share of $0.01 to $0.03. And for the full fiscal year, the company reiterated guidance for revenue in the range of $202.3 million to $204.3 million.
By comparison, analysts' consensus estimates called for higher current-quarter revenue of $51.4 million, quarterly adjusted net income of $0.01 per share, and roughly the same full-year revenue.
That's not to say this quarter was as bad as today's steep pullback might indicate, as the company indeed made strides improving margins for the quarter. But given Bazaarvoice's top-line shortfall and light forward guidance, and with shares still up around 16% over the past three months as of this writing, it's no surprise to see investors taking a step back today.
10 stocks we like better than Bazaarvoice When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Bazaarvoice wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 7, 2016
Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.