Why Bazaarvoice Shares Jumped
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 have jumped today by as much as 10% after the company reported earnings and reassured investors that the company was in good shape despite an antitrust suit.
So what: Revenue in the fiscal third quarter totaled $42.7 million, which translated into a non-GAAP net loss of $4.1 million, or $0.06 per share. Compared to consensus estimates, the top line was shy of the $48.9 million forecast but topped the expected loss of $0.12 per share. The company closed out the quarter with an active enterprise client retention rate of 97%.
Now what: Last month, the Department of Justice filed an antitrust suit against Bazaarvoice regarding its acquisition of PowerReviews last year. CEO Stephen Collins said he remains optimistic despite the suit and that the company continues to focus on the core business. Collins reiterated that Bazaarvoice's clients as well as PowerReviews' clients are both still pleased with their relationships. The comments helped boost shares, but weren't enough to keep them from giving up their gains throughout the day.
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The article Why Bazaarvoice Shares Jumped originally appeared on Fool.com.Fool contributor Evan Niu, CFA, 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.
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