Those of you who have kids may have had their child wake up crying, saying their legs are throbbing. While there’s no proof that the growth of bones may cause pain, there is such a thing as growing pains and the most probable reasons are all the jumping, running, etc., that an active kid does.
In a way, the same thing can be said of growing companies. One such company is Bazaarvoice, Inc. (NASDAQ:BV). In the last several sessions BV has been losing value closing down 3.87% at $14.90 per share – a new low since the company IPO in late April.[BANNER]
The current streak of negative moves started roughly around the time the company completed its follow-on offering on July 23. Especially for the offering the lock-up of some insider shares was lifted, and a couple of officers cashed in some of their shares. Erin Nelson, the Chief Marketing Oficer, and Heather Brunner, COO, both sold an aggregate of almost 78 thousand shares.
The company itself got approximately $53 million. That cash should be very much welcome for BV. The company has been posting losses which would be the aforementioned pains caused by the growth. The losses aside BV has been reporting consistent growth in revenues.
- July 30, 2011 – $22 million
- Oct. 30, 2011 – $25 million
- Jan. 30, 2012 – $27.6 million
- Apr. 29, 2012 – $31.4 million
In June, BV closed the acquisition of a would-be competitor PowerReviews, Inc. for $31 million in cash and 6.4 million shares of BV common stock. It’s way too early to say whether this acquisition will work out for BV, but analysts seem to agree that by 2014 BV may reduce its losses significantly.
That, however, won’t matter if the company doesn’t survive that long. Is there an imminent threat? Probably no, but BV is engaged in a new field where it will face severe competition and given it’s business model there are a lot of risk factors.
At the time of this writing, BV is down another 2.89%. With children growing pains are never lethal, but only the future will show what will happen with Bazaarvoice, Inc.
