Financial Data and Key Metrics Changes - Total revenue for Q4 FY2025 was $3.9 million, unchanged from the prior year period [17] - Subscription revenue was $3.1 million, up from $3 million in the prior year, accounting for 81% of total revenue [17] - Gross profit was $2.5 million with a gross profit margin of 66%, while subscription gross margin was 69% [18] - Net loss remained at $400,000, with Adjusted EBITDA at minus $169,000 compared to a positive $5,000 in the prior year [18] Business Line Data and Key Metrics Changes - HawkSearch Suite and its AI products contributed 58% of total revenue, amounting to $8.9 million, and over 60% of subscription revenue at $7.4 million [5] - Net revenue retention for HawkSearch was 117%, with an 18% increase in sales over FY2024 [6][15] - Average annual recurring revenue (ARR) per sale increased by 35% from $18,500 to $25,000 [5] Market Data and Key Metrics Changes - The sales pipeline grew by 65% compared to the beginning of FY2025, with a reduction in the average sales cycle from 160 days to 92 days [6][15] - The company added 28 new customers, contributing $2 million in total contract value and $700,000 in ARR [9] Company Strategy and Development Direction - The company aims to focus on core products, particularly HawkSearch, and anticipates accelerated growth in FY2026 as the decline of legacy products is expected to end [6][15] - Marketing budget has been doubled to $500,000 per quarter to enhance brand visibility and sales lead generation [11][46] - Partnerships with Unilog and Salesforce are expected to expand the total addressable market and accelerate sales cycles [12][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the customer base, with less than 4% churn rate for HawkSearch customers [35] - The company is optimistic about the growth potential in FY2026, driven by product innovations and strong customer satisfaction [20][52] Other Important Information - The company injected $2 million into expanding its marketing budget, which has resulted in a more efficient sales cycle and larger average sales size [10] - Six new AI-powered products were launched, enhancing the company's competitive position in the market [12][14] Q&A Session Summary Question: Clarification on ARR number - The $8.9 million in ARR is specific to HawkSearch, part of the total cumulative revenue of $15.4 million [25] Question: Future sharing of ARR metrics - The company intends to continue sharing ARR growth quarterly as it is expected to dominate overall financials moving forward [27][28] Question: Changes in contract length for HawkSearch - Average contract length remains consistent at around two to three years, with increased initial investments from customers [30][31] Question: Stability of non-HawkSearch revenue - Management expressed confidence in the stability of the remaining non-HawkSearch revenue base for FY2026 [34] Question: Impact of Salesforce AppExchange on revenue - The partnership with Salesforce is expected to start generating revenue in the upcoming quarters, with significant growth anticipated [40] Question: Comfort with sales and marketing spend - The current sales and marketing spend level of $1.1 million per quarter is deemed appropriate for 2026, with a focus on maximizing lead generation [44][46]

Core Insights - Bridgeline Digital, Inc. has announced that its HawkSearch platform will be utilized by a global electrical distribution systems provider to enhance their careers portal [1] Group 1: Company Overview - Bridgeline Digital, Inc. is recognized as a leader in AI-powered marketing technology [1] - The HawkSearch platform is designed to deliver advanced search and filtering capabilities [1] Group 2: Industry Impact - The implementation of HawkSearch will facilitate job seekers in discovering opportunities across 10 countries [1] - The platform aims to provide an intuitive and streamlined search experience within the careers portal [1]

Financial Performance - Bridgeline Digital's Q1 FY25 revenue was $3.791 million, a 1% increase compared to $3.755 million in Q1 FY24 [72] - The company's subscription and license revenue in Q1 FY25 was $3.048 million, a 1% decrease compared to $3.086 million in Q1 FY24 [72] - Adjusted EBITDA for Q1 FY25 was $(193) thousand, compared to $(117) thousand in Q1 FY24, representing a 65% change [72] - Core Net Revenue Retention (NRR) was 107% [13] - Subscription Gross Margin (GM) was 71% [13] Business Highlights - Bridgeline powers 350 companies [25] - The company is launching more than 1 new site per week [26, 32] - Bridgeline drives $1 million per hour for HP.com [33, 37] - Bridgeline manages 750 CED sites [38] - Sales Total Contract Value (TCV) was $2.7 million [13] Market & Technology - The marketing technology market has over 14,000 players [17] - Bridgeline released 5 AI products in 2024 [67] - Core Compound Annual Growth Rate (CAGR) is 10% [13, 73] Capitalization - Total outstanding shares are 13,326,790, including common stock (10,442,609 shares), warrants (804,533 shares), and stock options (2,079,648 shares) [78]