Bridgeline Announces Financial Results for the Fourth Quarter of Fiscal 2024

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].