OREANDA-NEWS. June 03, 2016. 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 investments50,682  52,730 
Accounts receivable, net39,597  49,532 
Prepaid expenses and other current assets8,783  12,977 
Total current assets143,025  169,280 
Property, equipment and capitalized internal-use software development costs, net31,649  19,054 
Goodwill139,155  139,155 
Acquired intangible assets, net9,607  11,498 
Other non-current assets5,214  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 liabilities22,799  27,397 
Deferred revenue62,735  60,400 
Total current liabilities91,644  91,336 
Long-term liabilities:   
Revolving line of credit42,000  57,000 
Deferred revenue less current portion2,481  2,530 
Other liabilities, long-term7,255  712 
Total liabilities143,380  151,578 
Commitments and contingencies   
Stockholders’ equity:   
Common stock8  8 
Additional paid-in capital437,239  418,509 
Accumulated other comprehensive loss(878) (638)
Accumulated deficit(251,099) (226,496)
Total stockholders’ equity185,270  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 revenue19,253  18,148  76,867  69,906 
Gross profit31,456  30,169  122,899  121,275 
Operating expenses:       
Sales and marketing18,027  20,427  69,808  78,373 
Research and development10,391  9,880  41,477  37,695 
General and administrative7,577  7,582  30,398  30,507 
Acquisition-related and other157  815  1,415  4,046 
Restructuring charges1,575  —  1,575  — 
Amortization of acquired intangible assets309  309  1,237  1,237 
Total operating expenses38,036  39,013  145,910  151,858 
Operating loss(6,580) (8,844) (23,011) (30,583)
Other income (expense), net:       
Interest income137  52  412  95 
Interest expense(552) (433) (2,180) (1,451)
Other income (expense)767  (140) 214  (1,171)
Total other income (expense), net352  (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 outstanding81,502  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 expense3,575  3,284  14,062  12,453 
Loss on disposal of discontinued operations, net of tax—  —  —  1,537 
Loss on sub-lease546  —  546  — 
Stock-based expense3,521  2,963  14,761  12,201 
Bad debt expense358  1,029  93  3,155 
Excess tax benefit related to stock-based expense—  (4) —  (6)
Amortization of deferred financing costs59  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 assets298  1,435  (181) (165)
Other non-current assets(563) (65) (1,531) (177)
Accounts payable604  (1,141) 2,401  (297)
Accrued expenses and other current liabilities342  1,226  (4,796) (1,165)
Deferred revenue2,061  (552) 2,286  6,258 
Other liabilities, long-term1,165  (1,666) 6,204  (2,599)
Net cash provided by (used in) operating activities4,691  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 investments8,633  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 plans250  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 equivalents291  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 period57,944  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.