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]

Core Insights - Bridgeline Digital, Inc. reported a quarterly loss of $0.04 per share, better than the Zacks Consensus Estimate of a loss of $0.05, and a significant improvement from a loss of $0.77 per share a year ago, indicating a 20% earnings surprise [1] - The company achieved revenues of $3.86 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.93% and showing a slight increase from $3.8 million in the same quarter last year [2] - Bridgeline Digital shares have increased approximately 71.3% year-to-date, outperforming the S&P 500's gain of 24.3% [3] Earnings Outlook - The future performance of Bridgeline Digital's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook, which includes current consensus earnings expectations for upcoming quarters [4] - The estimate revisions trend for Bridgeline Digital is currently mixed, resulting in a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Internet - Services industry, to which Bridgeline Digital belongs, is currently ranked in the top 14% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% of ranked industries [7]

Core Insights - Bridgeline Digital, Inc. reported financial results for its fiscal fourth quarter ended September 30, 2024, showing a slight increase in total revenue compared to the prior year [1][2]. Financial Performance - Total revenue for the fourth quarter was $3.9 million, up from $3.8 million in the same period last year [2][16]. - Subscription and licenses revenue decreased to $3.0 million from $3.1 million year-over-year, representing 78% of total revenue [2][16]. - Gross profit for the quarter was $2.7 million, compared to $2.6 million in the prior year, with a gross margin of 69%, up from 68% [2][22]. - For the twelve months ended September 30, 2024, total revenue was $15.4 million, down from $15.9 million in 2023, with subscription and licenses revenue at $12.1 million, down from $12.7 million [6][13]. Product Developments - The Hawk AI Product Suite has been enhanced with features such as Smart Search, Smart Response, and Smart Tools, aimed at optimizing user interactions [3]. - HawkSearch introduced Conversational Search powered by GenAI, which utilizes natural language processing to improve search accuracy [3]. - A new Smart Response feature was launched to analyze PDF content and provide specific answers to user queries, enhancing the search experience [3]. Customer Engagement - Bridgeline signed 17 license sales in the fourth quarter, contributing over $360 thousand in annual recurring revenue [21]. - For the fiscal year 2024, the company signed 83 license sales, adding $2.1 million in annual recurring revenue, totaling $6.2 million in new customer contracts [21]. Operating Expenses - Operating expenses for the fourth quarter were significantly reduced to $3.1 million from $10.8 million in the same period last year, which included a goodwill impairment of $7.5 million [22]. - The operating loss for the quarter was $0.5 million, a substantial improvement from an operating loss of $8.2 million in the prior year [22]. Market Position - The demand for AI-powered search solutions is driving sales growth, as companies seek to meet customer expectations for smarter search experiences [21]. - Bridgeline's HawkSearch platform is positioned as a leader in AI-powered product discovery, with a strong sales pipeline heading into 2025 [19].

WOBURN, Mass., Dec. 20, 2024 (GLOBE NEWSWIRE) -- Bridgeline Digital, Inc. (NASDAQ:BLIN), a global leader in AI-powered marketing technology, announced today that it will release its financial results for the fourth quarter of fiscal 2024 after market close on Monday, December 23, 2024. On that day, Ari Kahn, the Company's President and Chief Executive Officer, and Thomas Windhausen, the Company's Chief Financial Officer, plan to host a live conference call at 4:30 p.m. ET to discuss the financial results.Th ...

WOBURN, Mass., Dec. 19, 2024 (GLOBE NEWSWIRE) -- Bridgeline Digital, Inc. (NASDAQ:BLIN), a provider of AI-driven marketing technology, has announced a new Smart Response feature for HawkSearch that analyzes PDF content and delivers specific answers to user queries. The innovation includes tools for extracting content from large PDF repositories and using Generative AI (GenAI) to create helpful search features such as thumbnails of PDFs, summaries of pages within each PDF, and extraction of other important m ...

Core Insights - Bridgeline Digital, Inc. has launched Smart Facets, a new feature in HawkSearch's Smart Response product line, which utilizes Generative AI to enhance search capabilities [1][3] - Smart Facets allows users to conduct natural language searches and automatically selects relevant facets, improving the search experience [2][3] - The feature integrates with Concept Search, enabling users to ask detailed questions and receive precise results as if they had manually selected the facets [2] Company Overview - Bridgeline Digital focuses on helping companies increase online revenue by enhancing traffic, conversion rates, and average order value [4]