Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Bazaarvoice (BV) jumped more than 13% Thursday after the company announced mixed fiscal fourth-quarter results and an agreement to divest its PowerReviews business.
So what: Bazaarvoice's quarterly revenue rose 11% year-over-year to in at $47.1 million -- including sales from PowerReviews -- which translated to an adjusted net loss of $8.4 million, or $0.11 per share. Analysts, on average, were modeling a slightly narrower loss of $0.10 per share on lower sales of $45.45 million.
Investors appear more pleased, though, with Bazaarvoice's agreement to divest PowerReviews for $30 million in cash to Viewpoints subsidiary Wavetable Labs. Remember, in March Bazaarvoice CEO Gene Austin stated several interested buyers for the divestiture, which is the result of a previously announced U.S. court decision that Bazaarvoice violated U.S. antitrust law with its acquisition of the company.
Now what: Putting aside lost time and litigation costs, Bazaarvoice didn't do too badly considering it paid just $31 million for PowerReviews in June, 2012. However, I'm still not particularly intrigued by Bazaarvoice given its already sluggish top-line growth and lack of profitability. For now, I'm content watching this one from the sidelines.
