Fourth fiscal quarter highlights include:

• Delivered Q4 revenue from continuing operations of $50.7 million, up 5.0% from the same period a year ago
• Achieved positive operating cash flow of $4.7 million
• Improved GAAP net loss from continuing operations to $6.4 million from a loss of $8.8 million in the same period a year ago
• Achieved Adjusted EBITDA from continuing operations of $0.3 million as compared to a loss of $3.6 million in the same period a year ago

AUSTIN, Texas, June 02, 2016 (GLOBE NEWSWIRE) -- Bazaarvoice, Inc. (Nasdaq:BV), the world’s largest network of active shoppers, reported its financial results for the fourth fiscal quarter and full year ended April 30, 2016.

“We delivered our third consecutive quarter of positive adjusted EBITDA and positive operating cash flow for the fiscal fourth quarter," said Gene Austin, chief executive officer and president. “Fiscal 2016 was a pivotal year for Bazaarvoice as we launched a number of new initiatives to position the company for long term growth while simultaneously driving improved operating margin performance.  We are uniquely positioned with our broad Consumer Generated Content offerings and shopper advertising and additional solutions to further monetize our network of retailers and brands.”

Fourth Fiscal Quarter of 2016 Financial Details

Revenue from continuing operations: Bazaarvoice reported revenue of $50.7 million for the fourth fiscal quarter of 2016, up 5.0% from the fourth fiscal quarter of 2015, which consisted of SaaS revenue of $49.1 million and net advertising revenue, formerly referred to as media revenue, of $1.6 million.

GAAP net loss and net loss per share from continuing operations: GAAP net loss was $6.4 million, compared to a GAAP net loss of $8.8 million for the fourth fiscal quarter of 2015. GAAP net loss per share was $0.08 based upon weighted average shares outstanding of 81.5 million, compared to GAAP net loss per share of $0.11 for the fourth fiscal quarter of 2015 based upon weighted average shares outstanding of 79.7 million.

Adjusted EBITDA from continuing operations: Adjusted EBITDA for the fourth fiscal quarter of 2016 was $0.3 million compared to a loss of $3.6 million for the fourth fiscal quarter of 2015.

Non-GAAP net loss and net loss per share from continuing operations: Non-GAAP net loss was $0.5 million, compared to non-GAAP net loss of $4.4 million for the fourth fiscal quarter of 2015. Non-GAAP net loss per share was $0.01 based upon weighted average shares outstanding of 81.5 million, compared to non-GAAP net loss per share of $0.06 for the fourth fiscal quarter of 2015 based upon weighted average shares outstanding of 79.7 million.

Fiscal Year 2016 Financial Details

Revenue from continuing operations: Bazaarvoice reported revenue of $199.8 million for the fiscal year ended April 30, 2016, up 4.5% from the fiscal year ended April 30, 2015, which consisted of SaaS revenue of $191.5 million and net advertising revenue, formerly referred to as media revenue, of $8.3 million.

GAAP net loss and net loss per share from continuing operations: GAAP net loss was $24.6 million, compared to a GAAP net loss of $33.2 million for the fiscal year ended 2015. GAAP net loss per share was $0.30 based upon weighted average shares outstanding of 80.9 million, compared to GAAP net loss per share of $0.42 for the fiscal year ended of April 30, 2015 based upon weighted average shares outstanding of 78.6 million.

Adjusted EBITDA from continuing operations: Adjusted EBITDA for the fiscal year ended April 30, 2016 was $1.2 million compared to a loss of $8.7 million for the fiscal year ended April 30, 2015.

Non-GAAP net loss and net loss per share from continuing operations: Non-GAAP net loss was $4.2 million, compared to non-GAAP net loss of $15.0 million for the fiscal year ended April 30, 2015. Non-GAAP net loss per share was $0.05 based upon weighted average shares outstanding of 80.9 million, compared to non-GAAP net loss per share of $0.19 for the fiscal year ended April 30, 2015 based upon weighted average shares outstanding of 78.6 million.

Clients: The number of active clients at the end of the fourth fiscal quarter of 2016 was 1,399 and the number of network clients at the end of the fourth fiscal quarter of 2016 was over 5,100. Annualized SaaS revenue per average active client for the fourth fiscal quarter of 2016 was approximately $141,000.

Active Clients

We define an active client as an organization for which we have a contract and the client is launched as of the last day of the quarter, and we count organizations that are closely related as one client, even if they have signed separate contractual agreements.

Network Clients

We define a network client as an organization that does not have recurring revenue. 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 active client base is an indicator of the reach of our network.

Quarterly Conference Call

Bazaarvoice will host a conference call today at 4:30 p.m. Eastern Time to review the Company’s financial results for the fourth fiscal quarter and full year 2016. To access this call, dial (877) 407-3982 from the United States or (201) 493-6780 internationally with conference ID 13636594. 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 June 16, 2016 by dialing (877) 870-5176 from the United States or (858) 384-5517 internationally with recording access code 13636594.

About Bazaarvoice

Bazaarvoice is the world’s largest network of active shoppers, connecting more than one-half billion consumers monthly to thousands of retailers and brands that represent tens of millions of products and services. Online, in-store, and on mobile devices, Bazaarvoice’s technology platform engages consumers, increases sales, and protects loyalty through authentic ratings and reviews, Q&A, and brand-relevant photos, videos, and social posts. Interactions across the Bazaarvoice network yield insights on past, present, and future shopping behavior, enabling marketers to identify competitive advantage. For more information, visit http://www.bazaarvoice.com, read the blog at www.bazaarvoice.com/blog, and follow on Twitter at www.twitter.com/bazaarvoice or LinkedIn at https://www.linkedin.com/company/bazaarvoice.

Discontinued Operations

The divestiture of PowerReviews was completed on July 2, 2014. The terms of the transaction were approved by the Department of Justice on June 26, 2014. As a result, PowerReviews revenues, related expenses and loss on disposal, net of tax, are components of “Loss from discontinued operations, net of tax” in the Condensed Consolidated Statements of Operations since our fourth fiscal quarter of 2014 and for all comparative fiscal quarters presented. The Statement of Cash Flows is reported on a combined basis without separately presenting cash flows from discontinued operations for all periods presented.

Non-GAAP Financial Measures

Adjusted EBITDA for continuing operations discussed in this press release is defined as our GAAP net loss from continuing operations adjusted for stock-based compensation, contingent consideration related to acquisitions, adjusted depreciation and amortization (which excludes amortization of capitalized internal-use software development costs), restructuring charges, integration and other costs related to acquisitions, other non-business costs and benefits, income tax expense and other (income) expense, net.

Adjusted EBITDA for discontinued operations presented in the accompanying financial tables is defined as our GAAP net loss from discontinued operations adjusted for stock-based compensation, adjusted depreciation and amortization (which excludes amortization of capitalized internal-use software development costs), impairment of acquired intangibles, integration and other costs related to the acquisition and the divestiture of PowerReviews, estimated loss on disposal of discontinued operations, other non-business costs and benefits, income tax expense and other (income) expense, net.

Non-GAAP net loss for continuing operations, which is used to calculate non-GAAP net loss per share for continuing operations, is defined as our GAAP net loss from continuing operations, adjusted to exclude stock-based compensation, contingent consideration related to acquisitions, amortization of acquired intangible assets, restructuring charges, integration and other costs related to acquisitions, and other non-business costs and benefits along with the associated income tax effect of these adjustments.

Non-GAAP net loss for discontinued operations, which is used to calculate non-GAAP net loss per share for discontinued operations, is defined as our GAAP net loss from discontinued operations adjusted to exclude stock-based compensation, amortization of acquired intangible assets, impairment of acquired intangibles, integration and other costs related to the acquisition and divestiture of PowerReviews, estimated loss on disposal of discontinued operations 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. Further, management has presented these non-GAAP financial measures separately for discontinued operations as it may prove useful to securities analysts and investors in evaluating the impact of the divestiture of PowerReviews on the Company’s continuing 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 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; 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,” “target” and similar 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 driving future improvements in profitability, monetizing the Bazaarvoice network and driving revenue growth over the long term 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; changes in accounting standards; our ability to realize efficiencies and to execute on our strategic initiatives; our limited operating history; our ability to operate in a new and unproven market; our ability to effectively manage growth; our ability to develop and launch new products; risks associated with the uncertainty of market acceptance of our new products; our ability to retain our existing customers and satisfy their obligations and needs and upsell to existing clients; the effects of increased competition and commoditization of products we offer, including pricing pressure, reduced profitability or loss of market share; our ability to attract and retain employees; our ability to maintain pricing for our products and services; our ability to manage expansion into new vertical industries; risks and challenges associated with international sales; our ability to successfully identify, manage and integrate potential acquisitions; the impact of the Department of Justice stipulation regarding PowerReviews on our business; and other risks and potential factors that could affect our business and financial results identified in our Form 10-K for the fiscal year ended April 30, 2015 as filed with the Securities and Exchange Commission on June 25, 2015. 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, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
	April 30,  2016				April 30,  2015
Assets
Current assets:
Cash and cash equivalents	$	43,963			$	54,041
Short-term investments	50,682				52,730
Accounts receivable, net	39,597				49,532
Prepaid expenses and other current assets	8,783				12,977
Total current assets	143,025				169,280
Property, equipment and capitalized internal-use software development costs, net	31,649				19,054
Goodwill	139,155				139,155
Acquired intangible assets, net	9,607				11,498
Other non-current assets	5,214				3,974
Total assets	$	328,650			$	342,961
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	6,110			$	3,539
Accrued expenses and other current liabilities	22,799				27,397
Deferred revenue	62,735				60,400
Total current liabilities	91,644				91,336
Long-term liabilities:
Revolving line of credit	42,000				57,000
Deferred revenue less current portion	2,481				2,530
Other liabilities, long-term	7,255				712
Total liabilities	143,380				151,578
Commitments and contingencies
Stockholders’ equity:
Common stock	8				8
Additional paid-in capital	437,239				418,509
Accumulated other comprehensive loss	(878		)		(638		)
Accumulated deficit	(251,099		)		(226,496		)
Total stockholders’ equity	185,270				191,383
Total liabilities and stockholders’ equity	$	328,650			$	342,961

Bazaarvoice, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except net loss per share data)
(unaudited)
	Three Months Ended April 30,								Year Ended April 30,
	2016				2015				2016				2015
Revenue	$	50,709			$	48,317			$	199,766			$	191,181
Cost of revenue	19,253				18,148				76,867				69,906
Gross profit	31,456				30,169				122,899				121,275
Operating expenses:
Sales and marketing	18,027				20,427				69,808				78,373
Research and development	10,391				9,880				41,477				37,695
General and administrative	7,577				7,582				30,398				30,507
Acquisition-related and other	157				815				1,415				4,046
Restructuring charges	1,575				—				1,575				—
Amortization of acquired intangible assets	309				309				1,237				1,237
Total operating expenses	38,036				39,013				145,910				151,858
Operating loss	(6,580		)		(8,844		)		(23,011		)		(30,583		)
Other income (expense), net:
Interest income	137				52				412				95
Interest expense	(552		)		(433		)		(2,180		)		(1,451		)
Other income (expense)	767				(140		)		214				(1,171		)
Total other income (expense), net	352				(521		)		(1,554		)		(2,527		)
Loss from continuing operations before income taxes	(6,228		)		(9,365		)		(24,565		)		(33,110		)
Income tax expense (benefit)	165				(540		)		38				54
Net loss from continuing operations	$	(6,393	)		$	(8,825	)		$	(24,603	)		$	(33,164	)
Loss from discontinued operations, net of tax	—				—				—				(1,257		)
Net loss applicable to common stockholders	$	(6,393	)		$	(8,825	)		$	(24,603	)		$	(34,421	)
Net loss per share applicable to common stockholders:
Continuing operations	$	(0.08	)		$	(0.11	)		$	(0.30	)		$	(0.42	)
Discontinued operations	—				—				—				(0.02		)
Basic and diluted loss per share	$	(0.08	)		$	(0.11	)		$	(0.30	)		$	(0.44	)
Basic and diluted weighted average number of shares outstanding	81,502				79,668				80,859				78,645

Bazaarvoice, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
	Three Months Ended April 30,								Year Ended April 30,
	2016				2015				2016				2015
Operating activities:
Net loss	$	(6,393	)		$	(8,825	)		$	(24,603	)		$	(34,421	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense	3,575				3,284				14,062				12,453
Loss on disposal of discontinued operations, net of tax	—				—				—				1,537
Loss on sub-lease	546				—				546				—
Stock-based expense	3,521				2,963				14,761				12,201
Bad debt expense	358				1,029				93				3,155
Excess tax benefit related to stock-based expense	—				(4		)		—				(6		)
Amortization of deferred financing costs	59				59				235				98
Other non-cash expense (benefit)	(9		)		6				73				151
Changes in operating assets and liabilities:
Accounts receivable	(873		)		5,168				9,842				(13,589		)
Prepaid expenses and other current assets	298				1,435				(181		)		(165		)
Other non-current assets	(563		)		(65		)		(1,531		)		(177		)
Accounts payable	604				(1,141		)		2,401				(297		)
Accrued expenses and other current liabilities	342				1,226				(4,796		)		(1,165		)
Deferred revenue	2,061				(552		)		2,286				6,258
Other liabilities, long-term	1,165				(1,666		)		6,204				(2,599		)
Net cash provided by (used in) operating activities	4,691				2,917				19,392				(16,566		)
Investing activities:
Proceeds from sale of discontinued operations	—				—				4,501				25,500
Purchases of property, equipment and capitalized internal-use software development costs	(4,479		)		(2,639		)		(23,657		)		(11,438		)
Decrease in restricted cash	—				—				—				500
Purchases of short-term investments	(8,367		)		(3,634		)		(61,834		)		(82,770		)
Proceeds from maturities of short-term investments	8,633				9,914				63,650				65,681
Proceeds from sale of short-term investments	—				—				—				5,012
Net cash provided by (used in) investing activities	(4,213		)		3,641				(17,340		)		2,485
Financing activities:
Proceeds from employee stock compensation plans	250				1,330				3,027				7,545
Proceeds from revolving line of credit	—				—				—				57,000
Payments on revolving line of credit	(15,000		)		—				(15,000		)		(27,000		)
Deferred financing costs	—				—				—				(706		)
Excess tax benefit related to stock-based expense	—				4				—				6
Net cash provided by (used in) financing activities	(14,750		)		1,334				(11,973		)		36,845
Effect of exchange rate fluctuations on cash and cash equivalents	291				362				(157		)		(657		)
Net change in cash and cash equivalents	(13,981		)		8,254				(10,078		)		22,107
Cash and cash equivalents at beginning of period	57,944				45,787				54,041				31,934
Cash and cash equivalents at end of period	$	43,963			$	54,041			$	43,963			$	54,041
Supplemental disclosure of non-cash investing and financing activities:
Purchase of fixed assets recorded in accounts payable	$	180			$	282			$	180			$	282
Asset retirement obligation costs incurred	$	100			$	532			$	100			$	532
Capitalized stock-based compensation	$	203			$	150			$	813			$	601

Bazaarvoice, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures for Continuing Operations
(in thousands, except net loss per share data)
(unaudited)
			Three Months Ended April 30,						Year Ended April 30,
				2016			2015			2016			2015
Non-GAAP net income (loss) and net income (loss) per share from continuing operations:
GAAP net loss from continuing operations (1)			$	(6,393	)	$	(8,825	)	$	(24,603	)	$	(33,164	)
Stock-based compensation (2)				3,724			3,113			15,574			12,678
Amortization of acquired intangible assets				472			472			1,890			1,890
Acquisition-related and other expense				157			815			1,415			4,046
Restructuring charges (3)				1,575		—				1,575		—
Other stock-related benefit (5)			—			—			—				(430	)
Income tax adjustment for non-GAAP items				(10	)		(6	)		(10	)		(8	)
Non-GAAP net loss from continuing operations			$	(475	)	$	(4,431	)	$	(4,159	)	$	(14,988	)
GAAP basic and diluted shares				81,502			79,668			80,859			78,645
Non-GAAP basic and diluted net loss per share from continuing operations			$	(0.01	)	$	(0.06	)	$	(0.05	)	$	(0.19	)
Adjusted EBITDA from continuing operations:
GAAP net loss from continuing operations (1)			$	(6,393	)	$	(8,825	)	$	(24,603	)	$	(33,164	)
Stock-based compensation (2)				3,724			3,113			15,574			12,678
Adjusted depreciation and amortization (4)				1,401			1,349			5,665			5,609
Restructuring charges (3)				1,575		—				1,575		—
Acquisition-related and other expense				157			815			1,415			4,046
Other stock-related benefit (5)			—			—			—				(430	)
Income tax expense (benefit)				165			(540	)		38			54
Total other (income) expense, net				(352	)		521			1,554			2,527
Adjusted EBITDA from continuing operations			$	277		$	(3,567	)	$	1,218		$	(8,680	)
(1) During the fourth quarter of fiscal 2016, the Company recorded out of period adjustments to revenue, the cumulative effect of which increased revenue, and decreased net loss from continuing operations, by $0.6 million and $0.9 million for the twelve and three month periods ended April 30, 2016. The adjustments related to errors in the timing of recognition of revenue, for which all required criteria had been satisfied in prior periods. The Company has determined that these adjustments were not material to any prior annual or interim periods, and the resulting correction is not material to its annual results for fiscal 2016 or to the trend in earnings.
(2) Stock-based compensation includes the following:
Cost of revenue			$	503		$	294		$	2,167		$	1,517
Sales and marketing				543			950			2,956			3,923
Research and development				688			557			2,671			1,960
General and administrative				1,787			1,162			6,967			4,677
Stock-based expense			$	3,521		$	2,963		$	14,761		$	12,077
Capitalized stock compensation				203			150			813			601
Stock-based compensation			$	3,724		$	3,113		$	15,574		$	12,678
(3) In February 2016, the Company made the decision to suspend sales of its BV Local product, reduce its cost structure to improve operating efficiencies and align resources with its growth strategies. Costs associated with these restructuring activities include workforce reductions charges, and facilities charges related to the loss recorded on the sub-lease of excess office space at the Company's headquarters.
(4):
			Three Months Ended April 30,						Year Ended April 30,
				2016			2015			2016			2015
Adjusted depreciation and amortization includes the following:
Cost of revenue			$	445		$	405		$	1,816		$	1,713
Sales and marketing				201			220			957			1,002
Research and development				227			181			839			786
General and administrative				219			234			816			871
Amortization of acquired intangible assets				309			309			1,237			1,237
Adjusted depreciation and amortization			$	1,401		$	1,349		$	5,665		$	5,609
(5)  Other stock-related expense represents an estimated liability for taxes and related items in connection with the 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 the non-GAAP financial measures, the Company excluded this estimated liability. During the twelve months ended April 30, 2015, the Company recorded a benefit of $0.4 million due to a reduction of this estimated liability. Other stock-related expense includes the following:
General and administrative			$	—		$	—		$	—		$	(430	)
Other stock-related expense			$	—		$	—		$	—		$	(430	)

Bazaarvoice, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures for Discontinued Operations
(in thousands, except net loss per share data)
(unaudited)
		Three Months Ended April 30,								Year Ended April 30,
		2016				2015				2016				2015
Non-GAAP net income and net earnings per share from discontinued operations:
GAAP net loss from discontinued operations		$	—			$	—			$	—			$	(1,257	)
Stock-based expense (1)		—				—				—				124
Acquisition-related, divestiture-related and other expenses		—				—				—				682
Loss on disposal of discontinued operations, net of tax (2)		—				—				—				1,537
Non-GAAP net income from discontinued operations		$	—			$	—			$	—			$	1,086
GAAP basic weighted average shares outstanding														78,645
GAAP diluted weighted average shares outstanding														79,793
Non-GAAP basic earnings per share from discontinued operations		$	—			$	—			$	—			$	0.01
Non-GAAP diluted earnings per share from discontinued operations		$	—			$	—			$	—			$	0.01
Adjusted EBITDA from discontinued operations:
GAAP net loss from discontinued operations		$	—			$	—			$	—			$	(1,257	)
Stock-based expense (1)		—				—				—				124
Acquisition-related, divestiture-related and other expenses		—				—				—				682
Income tax expense (benefit)		—				—				—				23
Estimated loss on disposal of discontinued operations, net of tax (2)		—				—				—				1,537
Adjusted EBITDA from discontinued operations		$	—			$	—			$	—			$	1,109
(1) Stock-based compensation includes the following:
Cost of revenue		$	—			$	—			$	—			$	115
Research and development			—				—				—				4
General and administrative			—				—				—				5
Stock-based compensation		$	—			$	—			$	—			$	124
(2)  On July 2, 2014, the Company completed the sale of PowerReviews for a total cash consideration of $30.0 million. Of the $30.0 million sales price, $4.5 million was placed into escrow as partial security for the Company’s indemnification obligations. The Company recognized a loss on the disposal of PowerReviews of $1.5 million for the twelve months ended April 30, 2015.

Bazaarvoice, Inc.
Selected Quarterly Financial and Operational Metrics for Continuing and Discontinued Operations
(in thousands, except active enterprise clients and full-time employees data)
(unaudited)
			Three Months Ended
			Jul 31,			Oct 31,			Jan 31,			Apr 30,			Jul 31,			Oct 31,			Jan 31,			Apr 30,
				2014			2014			2015			2015			2015			2015			2016			2016
Continuing Operations:
Revenue (1)			$	45,977		$	47,325		$	49,562		$	48,317		$	48,876		$	49,926		$	50,255		$	50,709
Cost of revenue				16,356			17,414			17,988			18,148			19,548			19,146			18,920			19,253
Gross profit				29,621			29,911			31,574			30,169			29,328			30,780			31,335			31,456
Operating expenses:
Sales and marketing				20,995			18,931			18,020			20,427			19,166			16,502			16,113			18,027
Research and development				9,730			9,306			8,779			9,880			10,533			10,354			10,199			10,391
General and administrative				7,893			8,100			6,932			7,582			8,238			7,643			6,940			7,577
Acquisition-related and other expense				492			2,326			413			815			702			224			332			157
Restructuring charges			—			—			—			—			—			—			—				1,575
Amortization of acquired intangible assets				309			310			309			309			309			310			309			309
Total operating expenses				39,419			38,973			34,453			39,013			38,948			35,033			33,893			38,036
Operating loss				(9,798	)		(9,062	)		(2,879	)		(8,844	)		(9,620	)		(4,253	)		(2,558	)		(6,580	)
Total other expense, net				(498	)		(588	)		(920	)		(521	)		(712	)		(475	)		(719	)		352
Loss before income taxes				(10,296	)		(9,650	)		(3,799	)		(9,365	)		(10,332	)		(4,728	)		(3,277	)		(6,228	)
Income tax expense (benefit)				12			258			324			(540	)		(88	)		124			(163	)		165
Net loss from continuing operations			$	(10,308	)	$	(9,908	)	$	(4,123	)	$	(8,825	)	$	(10,244	)	$	(4,852	)	$	(3,114	)	$	(6,393	)
Stock-based compensation (2)			$	3,122		$	3,343		$	3,100		$	3,113		$	4,049		$	3,909		$	3,892		$	3,724
Adjusted depreciation and amortization (3)				1,334			1,598			1,328			1,349			1,600			1,255			1,409			1,401
Restructuring charges (4)			—			—			—			—			—			—			—				1,575
Acquisition-related and other expense				492			2,326			413			815			702			224			332			157
Other stock-related benefit (5)				(430	)	—			—			—			—			—			—			—
Income tax expense (benefit)				12			258			324			(540	)		(88	)		124			(163	)		165
Total other (income) expense, net				498			588			920			521			712			475			719			(352	)
Adjusted EBITDA from continuing operations			$	(5,280	)	$	(1,795	)	$	1,962		$	(3,567	)	$	(3,269	)	$	1,135		$	3,075		$	277
Loss from discontinued operations			$	(1,257	)	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Stock-based compensation (2)				124		—			—			—			—			—			—			—
Acquisition-related, divestiture-related and other expenses				682		—			—			—			—			—			—			—
Income tax expense				23		—			—			—			—			—			—			—
Estimated loss on disposal of discontinued operations, net of tax  (7)				1,537		—			—			—			—			—			—			—
Adjusted EBITDA from discontinued operations			$	1,109		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Number of active clients from continuing operations (at period end) (6)				1,189			1,243			1,292			1,331			1,337			1,360			1,383			1,399
Full-time employees including employees attributable to discontinued operations (at period end)				787			814			825			826			834			855			817			756
(1):
			Three Months Ended
			Jul 31,			Oct 31,			Jan 31,			Apr 30,			Jul 31,			Oct 31,			Jan 31,			Apr 30,
				2014			2014			2015			2015			2015			2015			2016			2016
Revenue from continuing operations includes the following:
SaaS			$	44,324		$	45,199		$	46,429		$	46,173		$	46,830		$	47,671		$	47,884		$	49,108
Advertising				1,653			2,126			3,133			2,144			2,046			2,255			2,371			1,601
Revenue			$	45,977		$	47,325		$	49,562		$	48,317		$	48,876		$	49,926		$	50,255		$	50,709
Revenue from discontinued operations includes the following:
SaaS			$	2,517		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Advertising				18		—			—			—			—			—			—			—
Revenue			$	2,535		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Total revenue:
SaaS			$	46,841		$	45,199		$	46,429		$	46,173		$	46,830		$	47,671		$	47,884		$	49,108
Advertising				1,671			2,126			3,133			2,144			2,046			2,255			2,371			1,601
Revenue			$	48,512		$	47,325		$	49,562		$	48,317		$	48,876		$	49,926		$	50,255		$	50,709
(2) Stock-based compensation from continuing operations includes the following:
Cost of revenue			$	314		$	458		$	451		$	294		$	472		$	607		$	585		$	503
Sales and marketing				944			1,162			867			950			1,084			643			686			543
Research and development				473			380			550			557			566			717			700			688
General and administrative				1,217			1,201			1,097			1,162			1,736			1,739			1,705			1,787
Stock-based expense from continuing operations			$	2,948		$	3,201		$	2,965		$	2,963		$	3,858		$	3,706		$	3,676		$	3,521
Capitalized stock-based compensation				174			142			135			150			191			203			216			203
Stock-based compensation from continuing operations			$	3,122		$	3,343		$	3,100		$	3,113		$	4,049		$	3,909		$	3,892		$	3,724
Stock-based compensation from discontinued operations includes the following:
Cost of revenue			$	115		$	—		$	—		$	—		$	—		$	—		$	—		$	—
Research and development				4		—			—			—			—			—			—			—
General and administrative				5		—			—			—			—			—			—			—
Stock-based compensation from discontinued operations			$	124		$	—		$	—		$	—		$	—		$	—		$	—		$	—
(3):
			Three Months Ended
			Jul 31,			Oct 31,			Jan 31,			Apr 30,			Jul 31,			Oct 31,			Jan 31,			Apr 30,
				2014			2014			2015			2015			2015			2015			2016			2016
Adjusted depreciation and amortization from continuing operations includes the following:
Cost of revenue			$	427		$	481		$	400		$	405		$	514		$	401		$	456		$	445
Sales and marketing				258			303			221			220			349			197			210			201
Research and development				199			242			164			181			209			175			228			227
General and administrative				141			262			234			234			220			171			206			219
Amortization of acquired intangible assets				309			310			309			309			308			311			309			309
Adjusted depreciation and amortization from continuing operations			$	1,334		$	1,598		$	1,328		$	1,349		$	1,600		$	1,255		$	1,409		$	1,401
(4) In February 2016, the Company made the decision to suspend sales of its BV Local product, reduce its cost structure to improve operating efficiencies and align resources with its growth strategies. Costs associated with these restructuring activities include workforce reductions charges, and facilities charges related to the loss recorded on the sub-lease of excess office space at the Company's headquarters.
(5) Other stock-related benefit from continuing operations includes the following:
General and administrative			$	(430	)	$	—		$	—		$	—		$	—		$	—		$	—		$	—
Other stock-related benefit			$	(430	)	$	—		$	—		$	—		$	—		$	—		$	—		$	—
(6) Beginning as of our first fiscal quarter of 2016, we define an active client as an organization for which we have a contract and the client is launched as of the last day of the quarter, and we count organizations that are closely related as one client, even if they have signed separate contractual agreements.
Due to the presentation of the PowerReviews business as discontinued operations, we have separated our active clients into two categories: 1) active clients from continuing operations and 2) active clients from discontinued operations. As a result, each category could include a common client for which we recognized recurring revenue who has organizations that have separate contractual agreements.
All periods prior to the first fiscal quarter of 2016 discussed in this press release or presented in the accompanying financial tables have been revised to conform to this definition of an active client.
(7) On July 2, 2014, the Company completed the sale of PowerReviews for a total cash consideration of $30.0 million. Of the $30.0 million sales price, $4.5 million was placed into escrow as partial security for the Company’s indemnification obligations. The Company incurred a total loss of $10.7 million on the sale of PowerReviews. The loss on disposal of discontinued operations was determined by offsetting the total consideration from selling the PowerReviews business by any associated transaction costs and the net carrying value of the assets and liabilities held for sale as of July 2, 2014. Of the $10.7 million loss on disposal of discontinued operations, $9.2 million was recognized as an estimated loss on disposal of discontinued operations during the three months ended April 30, 2014 resulting in the incremental loss of $1.5 million being recognized in the three months ended July 31, 2014.

Investor Relations Contact:
Linda Wells
Bazaarvoice, Inc.
415-872-3612
linda.wells@bazaarvoice.com

Media Contact:
Andy North
Bazaarvoice, Inc.
512-551-6502
andy.north@bazaarvoice.com

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