Financial Data and Key Metrics Changes - Total revenue for Q2 FY2025 was $3.9 million, an increase from $3.8 million in the prior year period [22] - Subscription license revenue was $3.1 million, up from $3.0 million, accounting for 79% of total revenue [22] - Services revenue remained flat at $800,000, representing 21% of total revenue [23] - Gross profit increased to $2.6 million, with a gross profit margin of 68%, up from 66% in the prior year [23][24] - Net loss for the quarter was $700,000, compared to a net loss of $600,000 in the prior year [24] Business Line Data and Key Metrics Changes - Core revenue, primarily from ecommerce products like Hawk Search and WooRank, showed double-digit growth with a net revenue retention rate of 113% [12][16] - Noncore revenue has declined at a rate nearly equal to core revenue growth, resulting in relatively flat total revenue [13] - The company signed 20 license sales in Q2 FY2025, adding $1.7 million in new contracts and $700,000 in annual recurring revenue [6] Market Data and Key Metrics Changes - The company reported a 24% year-over-year increase in first-half license sales, reaching $1.6 million in annual recurring revenue [16] - Hawk Search is positioned as a leader in AI-powered ecommerce search, with significant growth potential in the B2B ecommerce market [11][18] Company Strategy and Development Direction - The company plans to increase investments in sales and marketing, funded by a $2.2 million capital raise, to enhance lead generation and expand its customer base [7][8] - The focus remains on organic growth through internal R&D, particularly in AI, while M&A opportunities are considered opportunistically [34][35] - The launch of new features like smart conversion and smart response aims to enhance customer engagement and drive revenue growth [14][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong demand for Hawk AI products and a favorable market environment [11][33] - The expectation is to see an increase in deal flow starting at the end of Q4 FY2025, leading to revenue impacts in Q1 FY2026 [30][32] - The company anticipates that core revenue will continue to grow, becoming a larger percentage of total revenue [36] Other Important Information - The company had cash of over $2.7 million and total assets of $17 million as of March 31, 2025 [25] - The weighted average interest rate on total debt was 3.8%, with no other debt or earn-outs from prior acquisitions [25] Q&A Session Summary Question: Are you at an inflection point to increase your sales efforts to bring in new customers? - Management indicated that both product competitiveness and market conditions justify increased sales investments, supported by a recent capital raise [29] Question: Do you have a handle on the return for every extra dollar spent on acquiring a new customer? - The company models customer acquisition costs and generally sees a three times value of the LTV to CAC ratio [31] Question: Is most of your product development internal or are there acquisition opportunities? - The company focuses on internal R&D for AI products, with potential acquisitions aimed at companies lacking AI capabilities [34] Question: When do you expect to see growth in top-line revenue? - Growth in top-line revenue is expected in Q1 FY2026, with core revenue becoming a larger percentage of total revenue [36] Question: What is the standard contract length currently? - The average initial contract length is approximately 30 months, with customers typically purchasing additional software over their lifespan [46]

Financial Data and Key Metrics Changes - Total revenue for Q2 FY 2025 was $3.9 million, an increase from $3.8 million in the prior year period [20] - Subscription license revenue was $3.1 million, up from $3.0 million, accounting for 79% of total revenue [20] - Services revenue remained flat at $800,000, representing 21% of total revenue [21] - Gross profit increased to $2.6 million, with a gross profit margin of 68%, up from 66% in the prior year [21] - Net loss for the quarter was $700,000, compared to a net loss of $600,000 in the prior year [22] Business Line Data and Key Metrics Changes - Core revenue, primarily from ecommerce products like Hawk Search, showed double-digit growth with a net revenue retention rate of 113% [11][12] - Noncore revenue has declined at a rate nearly equal to core revenue growth, resulting in relatively flat total revenue [12] - The company signed 20 license sales in Q2 FY 2025, adding $1.7 million in new contracts and $700,000 in annual recurring revenue [6] Market Data and Key Metrics Changes - The company is experiencing strong demand for its Hawk AI products, with a sales cycle of 120 days and a 19% win rate on qualified leads [6] - Year-to-date, the company booked $4.2 million in contracts, with $1.6 million in annual recurring revenue [7] Company Strategy and Development Direction - The company plans to increase investments in sales and marketing, funded by a $2.2 million capital raise, to expand lead generation efforts [8][10] - The focus is on enhancing core products and leveraging AI capabilities to drive growth in the ecommerce sector [10][17] - The company aims to maintain its leadership position in AI-powered ecommerce search and expects to see growth in 2026 [10][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong market conditions and product competitiveness as reasons to increase sales efforts [27] - The expectation is for increased deal flow starting at the end of Q4 FY 2025, leading to revenue impacts in Q1 FY 2026 [28][30] - Management highlighted the importance of organic growth, with M&A being opportunistic rather than a primary focus [32] Other Important Information - The company has a cash balance of over $2.7 million and total assets of $17 million as of March 31, 2025 [23] - The average initial contract length is approximately 30 months, with customers typically purchasing additional software over their lifespan [45] Q&A Session Summary Question: Are you at an inflection point to increase your sales efforts to bring in new customers? - Management confirmed that both product competitiveness and market conditions justify increased sales investments, supported by a recent capital raise [27] Question: Does Bridgeline have a handle on the return for every extra dollar spent on acquiring a new customer? - Management indicated a strong LTV to CAC ratio of around 3:1, expecting significant increases in new customer acquisitions in Q1 FY 2026 [29][30] Question: Is most of the product development internal or are there acquisition opportunities? - Management stated that AI-based product development is primarily internal, with a focus on organic sales rather than acquisitions at this time [32] Question: When do you expect to see growth in top line revenue? - Management expects to see growth in core revenue starting in Q1 FY 2026, with a continued focus on core products [35] Question: Will sales and marketing expenses rise as a percentage of sales? - Management confirmed that sales and marketing expenses are expected to increase by $250,000 to $500,000 per quarter in the coming months [39] Question: How many languages can your products support? - Management stated that their default language model supports 50 languages, allowing for customization based on customer needs [49] Question: What is the standard contract length currently? - The average initial contract length is approximately 30 months, with customers typically purchasing additional software over time [45]

Financial Performance - Total net revenue for the three months ended March 31, 2025, was $3.9 million, consistent with the same period in 2024, while the net loss increased to $(0.7) million from $(0.6) million[112]. - For the six months ended March 31, 2025, total net revenue was $7.7 million, a slight increase from $7.6 million in 2024, with a net loss of $(1.4) million compared to $(1.2) million in 2024[113]. - Subscription and perpetual licenses revenue for the three months ended March 31, 2025, was $3.1 million, up from $3.0 million in 2024, representing 79% of total revenue[116][117]. - Digital engagement services revenue for the three months ended March 31, 2025, remained at $0.8 million, accounting for 21% of total revenue[118][119]. - Gross profit for the three months ended March 31, 2025, was $2.6 million, representing a gross margin of 68%, compared to 66% in 2024[114]. - Adjusted EBITDA for the three months ended March 31, 2025, was $(0.2) million, a deterioration from $(0.1) million in 2024, reflecting a 188% increase in losses[114]. - The loss from operations was $(0.7) million for the three months ended March 31, 2025, compared to $(0.5) million for the same period in 2024[145]. Revenue and Cost Breakdown - Total cost of revenue for the three months ended March 31, 2025, was $1.3 million, unchanged from the same period in 2024[121]. - The cost of subscription and perpetual licenses was 28% of the revenue for the three months ended March 31, 2025, consistent with the same period in 2024[122]. - Subscription and perpetual licenses cost increased to $1.8 million for the six months ended March 31, 2025, from $1.7 million for the same period in 2024, representing a 5.88% increase[123]. - The cost of subscription and perpetual licenses as a percentage of revenue was 29% for the six months ended March 31, 2025, compared to 28% for the same period in 2024[123]. - Digital engagement services cost remained consistent at $0.4 million for the three months ended March 31, 2025, and 2024, with a decrease in cost as a percentage of revenue from 53% to 48%[126]. Operating Expenses - Operating expenses for the three months ended March 31, 2025, increased by 10% to $3.4 million from $3.0 million in 2024[114]. - Sales and marketing expenses rose to $1.1 million for the three months ended March 31, 2025, from $0.9 million in 2024, with the expense as a percentage of total revenue increasing from 25% to 28%[132]. - Research and development expenses increased to $1.1 million for the three months ended March 31, 2025, from $1.0 million in 2024, with the percentage of total revenue rising from 27% to 29%[136]. Customer and Market Information - The company currently has over 2,000 active customers, with no single customer exceeding 10% of total revenue[111]. Cash Flow and Financing Activities - Cash used in operating activities decreased to $(0.2) million for the six months ended March 31, 2025, from $(1.0) million in 2024[156]. - Cash provided by financing activities was $1.6 million for the six months ended March 31, 2025, primarily from common stock issuance[158]. - The Company issued 1,000,000 shares of common stock at an offering price of $1.50 per share, generating approximately $1.5 million in gross proceeds before expenses, with net proceeds of $1.3 million after deducting offering expenses[161]. - A separate private placement transaction sold 473,979 unregistered shares at $1.52 per share, resulting in gross proceeds of approximately $720,000 and net proceeds of $700,000 after expenses[162]. - The company plans to offer up to $50 million of debt or equity securities under its effective registration statement[160]. Accounting and Valuation Policies - Revenue is derived from Software Licenses and Digital Engagement Services, with revenue recognized when control of services is transferred to customers[167][168]. - The Company uses a five-step model for revenue recognition, which includes identifying customer contracts and performance obligations[171]. - Goodwill is tested for impairment annually, with potential impairment factors including operational and economic uncertainties[172][173]. - The Company allocates acquisition costs to assets and liabilities based on fair values, with excess purchase price allocated to goodwill[174]. - Stock-based compensation is recognized based on fair values, with expenses expected to vest over a service period, generally three years[178]. - The fair value of stock options is estimated using the Black-Scholes-Merton model, with subjective inputs affecting the valuation[179][180]. Lease and Debt Obligations - Total gross obligations for operating leases amount to $0.2 million, with obligations extending through January 2028, and debt payments total $0.4 million, of which $0.2 million is expected to be paid in the next twelve months[164]. - The Company has no off-balance sheet arrangements or relationships with unconsolidated entities[163].

Revenue Performance - Total revenue for the first quarter of fiscal 2025 was $3.8 million, unchanged from the same period in 2024[15] - Subscription and licenses revenue was $3.0 million, down 1% year-over-year, accounting for 80% of total revenue[15] - Services revenue increased by 11% to $0.7 million, representing 20% of total revenue[15] - Total net revenue for the three months ended December 31, 2024, was $3,791 million, a 1.0% increase from $3,755 million in the same period of 2023[26] - Gross profit for the same period was $2,535 million, slightly down from $2,552 million year-over-year[26] Operating Expenses and Profitability - Operating expenses decreased to $3.0 million from $3.2 million year-over-year[15] - Total operating expenses decreased to $3,046 million from $3,187 million, representing a 4.4% reduction[26] - The company reported a net loss of $0.6 million, consistent with the same period in 2023[15] - The net loss for the quarter was $634 million, compared to a net loss of $622 million in the prior year[26] - Adjusted EBITDA for the three months ended December 31, 2024, was $(193) million, worsening from $(117) million in the same period of 2023[32] Financial Position - Cash and cash equivalents increased to $1,483 million from $1,390 million quarter-over-quarter[28] - Total current assets rose to $3,127 million, up from $2,947 million in the previous quarter[28] - Total liabilities increased to $5,995 million from $5,596 million, reflecting a 7.1% rise[29] - The accumulated deficit grew to $(92,172) million from $(91,538) million, indicating a continued loss trend[30] - The number of weighted average shares outstanding remained constant at 10,417,609 for both basic and diluted shares[26] Business Development and Strategy - Net Revenue Retention (NRR) for core products was 107% for the quarter[7] - Bridgeline signed 28 new subscription contracts totaling $2.7 million, adding over $800,000 in Annual Recurring Revenue[7] - Bridgeline plans to deepen its presence in B2B industries through targeted partnerships and events in 2025[7] - HawkSearch will expand its product line with Agentic-AI innovations aimed at increasing online revenue for customers[7] Gross Margin - Gross margin for the quarter was 67%, slightly down from 68% in the prior year[15]

Financial Data and Key Metrics Changes - Total revenue for Q1 FY2025 was $3.8 million, unchanged from the prior year period [24] - Subscription license revenue was $3 million, down 1% from $3.1 million in the prior year [24] - Services revenue was $700,000, up 11% from the prior year [25] - Gross profit was $2.5 million, down 1% from around $2.6 million in the prior year [25] - Net loss was $0.6 million, consistent with the prior year [26] - Adjusted EBITDA was negative $193,000 compared to negative $117,000 in the prior year [26] Business Line Data and Key Metrics Changes - Core revenue from Hawk Search products was $2.1 million with double-digit growth and a net revenue retention of 107% [11][24] - Non-core products, including professional services, represent the balance of revenue [11] Market Data and Key Metrics Changes - The sales cycle is now 105 days with an 18% win rate on qualified leads, indicating a strong market position [9][50] - The company signed 28 license sales, adding $2.7 million in new contracts and $800,000 in annual contract value [8][13] Company Strategy and Development Direction - The company plans to reallocate resources from R&D to sales and marketing to capitalize on market demand [10][23] - Partnerships with platforms like BigCommerce and Salesforce are crucial for expanding market reach [20][63] - The focus will be on enhancing existing verticals while gradually migrating to new sectors [67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales pipeline and the efficiency of customer acquisition costs [54][56] - The company is optimistic about growth prospects in 2025, driven by strong product demand and market conditions [29][75] Other Important Information - The company had cash of $1.5 million and total assets of $15.5 million as of December 31, 2024 [27][28] - Total liabilities were $6 million, with no remaining earnouts from previous acquisitions [28][29] Q&A Session Summary Question: Insights on core product revenue and services ratio - Management clarified that core product revenue is primarily subscription-based, with services making up about 19% of that revenue [36][39] Question: Lead generation and sales pipeline - Management noted that leads are coming in at a higher rate, with an efficient customer acquisition cost [42][44] Question: Shift in operating expenses towards sales and marketing - Management confirmed that operating expenses will remain stable while increasing investment in marketing [60] Question: Partnership opportunities and vertical expansion - Management discussed the importance of partnerships with ISVs and digital agencies for sales growth [62][64]

Company Performance - Bridgeline Digital, Inc. reported a quarterly loss of $0.06 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.05, marking an earnings surprise of -20% [1] - The company posted revenues of $3.79 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.82% and showing a slight increase from $3.76 million a year ago [2] - Over the last four quarters, Bridgeline Digital has exceeded consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Bridgeline Digital shares have increased approximately 30.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 2.9% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.04 on revenues of $3.9 million, while for the current fiscal year, it is -$0.15 on revenues of $15.64 million [7] Industry Outlook - The Internet - Services industry, to which Bridgeline Digital belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Financial Performance - Total net revenue for the three months ended December 31, 2024, was $3.8 million, a 1% increase from $3.8 million in the same period of 2023[113]. - Subscription and perpetual licenses revenue was $3.1 million, accounting for 80% of total revenue, down from 82% in the prior year[116]. - Digital engagement services revenue increased to $0.7 million, representing 20% of total revenue, up from 18% in the previous year[117]. - Gross profit for the three months ended December 31, 2024, was $2.5 million, with a gross profit margin of 67%, slightly down from 68% in 2023[124][125]. - Total operating expenses decreased to $3.0 million, down 4% from $3.2 million in the same period last year[132]. - Loss from operations improved to $(0.5) million for the three months ended December 31, 2024, compared to $(0.6) million in 2023[131]. - Adjusted EBITDA for the three months ended December 31, 2024, was $(0.2) million, a decline of 65% from $(0.1) million in the same period of 2023[134]. - Adjusted EBITDA for the three months ended December 31, 2024, was $(193) thousand, compared to $(117) thousand for the same period in 2023, indicating a decline in operating performance[139]. - The company incurred a net loss of $(634) thousand for the three months ended December 31, 2024, compared to a net loss of $(622) thousand for the same period in 2023[139]. Cash Flow and Investments - Cash provided by operating activities was $0.2 million for the three months ended December 31, 2024, a significant improvement from cash used in operating activities of $(0.9) million for the same period in 2023[140]. - Cash used in investing activities was $(5) thousand for the three months ended December 31, 2024, while there was no cash used in investing activities for the same period in 2023[141]. Customer and Revenue Recognition - The company currently has over 2,000 active customers, with no single customer exceeding 10% of total revenue[111]. - The company recognizes revenue from software licenses and digital engagement services, with revenue recognized when control of services is transferred to customers[149][150]. Cost Management and Future Planning - The cost of subscription and perpetual licenses was 29% of revenue for the three months ended December 31, 2024, compared to 27% in 2023[120]. - The company plans to maintain tight control over discretionary spending for the 2025 fiscal year to support future revenue growth[142]. - The company is evaluating future financing options, including the potential filing of a new shelf registration statement to replace the existing one set to expire on March 4, 2025[144]. - The company has historically incurred operating losses and has relied on cash on hand and financing activities to fund operations and develop new products[142]. Liabilities and Obligations - The company recognized a loss of $114 thousand related to the change in fair value of warrant liabilities for the three months ended December 31, 2024[133]. - The gross obligations for operating leases total $0.1 million, all expected to be paid in the next twelve months[146]. - Debt payments on various obligations total $0.4 million, with $0.2 million expected to be paid in the next twelve months[146].

Revenue Performance - Total revenue for the fourth quarter was $3.9 million, a slight increase from $3.8 million in the prior year period[22]. - Subscription and licenses revenue for the fourth quarter was $3.0 million, down from $3.1 million in the prior year period, representing 78% of total revenue[46]. - Services revenue for the twelve months ended September 30, 2024, was $3.2 million, up from $3.1 million in the prior year, accounting for 21% of total revenue[26]. - Total revenue for the twelve months ended September 30, 2024, was $15.4 million, compared to $15.9 million in the prior year[51]. - Total net revenue for the three months ended September 30, 2024, was $3,863 million, a slight increase from $3,798 million in the same period last year, representing a growth of 1.7%[72]. - Subscription and perpetual licenses revenue decreased to $3,025 million from $3,072 million year-over-year, reflecting a decline of 1.5%[72]. - Digital engagement services revenue increased to $838 million, up 15.5% from $726 million in the prior year[72]. Profitability and Loss - Gross margin for the fourth quarter improved to 69%, compared to 68% in the prior year period[12]. - Operating loss for the fourth quarter was $0.5 million, significantly reduced from $8.2 million in the same period last year[24]. - Net loss for the fourth quarter was $0.4 million, compared to a net loss of $8.1 million for the same period in 2023[50]. - GAAP net loss for the three months ended September 30, 2024, was $432 thousand, compared to a net loss of $8,063 thousand for the same period in 2023[64]. - Adjusted EBITDA for the twelve months ended September 30, 2024, was a loss of $192 thousand, improving from a loss of $309 thousand for the same period in 2023[64]. - The net loss for the three months ended September 30, 2024, was $432 million, an improvement from a net loss of $8,063 million in the same period last year[72]. - Non-GAAP adjusted net loss for the three months ended September 30, 2024, was $38 million, compared to a non-GAAP adjusted net loss of $213 million in the prior year[73]. - The company reported a basic net loss per share of $0.04 for the three months ended September 30, 2024, compared to a loss of $0.77 per share in the same period last year[72]. Assets and Liabilities - Total current assets decreased from $3,659 million in September 2023 to $2,947 million in September 2024, a decline of approximately 19.4%[61]. - Total liabilities decreased from $6,171 million in September 2023 to $5,596 million in September 2024, a reduction of approximately 9.3%[61]. - Total stockholders' equity decreased from $11,460 million in September 2023 to $10,006 million in September 2024, a decline of approximately 12.7%[61]. - Current portion of long-term debt increased slightly from $267 million in September 2023 to $282 million in September 2024[61]. Strategic Initiatives - For fiscal year 2024, Bridgeline signed 83 license sales, adding $2.1 million in annual recurring revenue, totaling $6.2 million in new customer contracts[7]. - HawkSearch launched new features including Smart Response and Conversational Search, enhancing user interaction and search accuracy[8][36]. - Bridgeline's management reported the largest sales pipeline in the company's history as they enter 2025[3]. - The company plans to focus on increasing recurring revenue and attracting new customers as part of its future growth strategy[69]. Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were $3,134 million, significantly lower than $10,818 million in the same period last year, primarily due to the absence of goodwill impairment charges[72]. - Research and development expenses for the three months ended September 30, 2024, were $1,022 million, slightly down from $1,070 million year-over-year[72]. Margins - Gross margin remained stable at 68% for the twelve months ended September 30, 2024, compared to the same period in 2023[66]. - Subscription and licenses gross margin decreased from 74% in 2023 to 72% in 2024, while services gross margin improved from 48% to 52%[66].

Financial Performance - The company incurred a net loss of approximately $(2.0) million for the year ended September 30, 2024, with an accumulated deficit of approximately $92 million as of the same date[300]. Funding and Financial Needs - The company may require additional funding to expand operations, depending on financing sources which may not be available on acceptable terms[301]. Revenue Dependence and Risks - A reduction in license renewal rates could negatively impact revenue, highlighting dependence on major customers[302]. - The sales cycle length can vary significantly, leading to fluctuations in license revenue recognition from quarter to quarter[303]. Operational Risks - The company relies on a third-party cloud platform provider for its SaaS environment, and any service disruption could harm its business and reputation[304]. Competitive Landscape - The complexity and rapid evolution of AI technology present uncertainties regarding successful integration and commercialization, potentially affecting competitive positioning[307]. - The company faces competition from larger firms with greater resources, which may hinder its ability to compete effectively in the marketplace[310]. - The markets for the company's products are highly competitive and fragmented, with low barriers to entry and increasing competition expected in the future[320]. - The company emphasizes a deeply integrated and multi-faceted approach in its platforms compared to competitors focusing on singular functions[321]. - The company does not own any patents, and the loss of trade secrets or trademarks could adversely affect its competitive position[324].

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $3.9 million, a slight increase from $3.8 million in the prior year period [28] - Subscription license revenue was $3.0 million, down from $3.1 million in the prior year, accounting for 78% of total revenue [28] - Services revenue increased to $800,000 from $700,000 in the prior year, representing 22% of total revenue [29] - Gross profit was $2.7 million, compared to $2.6 million in the prior year, with a gross margin of 69% [29] - GAAP net loss was $0.4 million, significantly improved from a net loss of $8.1 million in the prior year [31] - Adjusted EBITDA for the quarter was $5,000, compared to negative $192,000 in the prior year [31] Business Line Data and Key Metrics Changes - Hawk Search is now the majority of the company's business, powering over 1,000 websites and achieving a net revenue retention rate of 103% [10][15] - Fiscal year 2024 sales contracts nearly doubled in annual contract value to $2.1 million in ARR, with 83 new licenses sold [11] - The company launched a new Hawk Search site every week in 2024, showcasing strong growth in its AI-powered product suite [10] Market Data and Key Metrics Changes - The company reported a significant increase in its sales pipeline, nearly doubling from the start of FY2024, with 186 sales qualified leads valued at over $3.6 million in annual contract value [67] - The company is particularly strong in the electrical and plumbing distribution sectors, with nine of the top 50 electrical distributors as customers [68] Company Strategy and Development Direction - The company is focused on driving revenue growth through its AI-powered products, particularly Hawk Search, which is central to its e360 strategy [15] - Partnerships with platforms like Optimizely and BigCommerce are expected to generate new customers and enhance market presence [22] - The company aims to expand its customer base and improve sales efficiency through targeted marketing and lead generation strategies [71] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth driven by investments in AI and recognition from industry analysts [41] - The company is focused on increasing its sales and marketing budget to capitalize on the strong return on investment seen in marketing efforts [42] - Management acknowledged challenges related to stock price and historical capital raises affecting market perception [84] Other Important Information - The company had cash of $1.4 million as of September 30, 2024, a $200,000 increase from June 30, 2024 [32] - Total assets were reported at $15.6 million, with total liabilities of $5.6 million [33] Q&A Session Summary Question: Future runway for Hawk Search - Management indicated that Hawk Search accounts for over half of revenue and is expected to see continued growth due to strong B2B differentiation and AI investments [40] Question: Customer satisfaction and measurable benefits - Customers are reportedly seeing significant improvements in conversion rates and average order values, which are key metrics for their success [44] Question: Importance of WooRank - WooRank is integrated with Hawk Search and contributes to sales, although it is smaller in scale compared to Hawk Search [48] Question: Opportunity backlog and sales pipeline - The company ended FY2024 with nearly double the sales pipeline, indicating strong future revenue potential [67] Question: Breakdown of sales sources - Approximately 25% of deals come directly from partners, while 75% involve partners but originate from the company's own marketing efforts [80]