Bridgeline Digital(US:BLIN)2021-12-21 06:55Financial Data and Key Metrics Changes - Total revenue increased 52% to $4.1 million for Q4 2021 compared to $2.7 million in Q4 2020 [19] - Subscription license revenue rose 67% to $3.4 million for Q4 2021 from $2 million in Q4 2020, accounting for 82% of total revenue [20] - Net loss for Q4 2021 was $1.4 million compared to a net income of $1.1 million in Q4 2020 [25] - Adjusted EBITDA for Q4 2021 was $200,000 compared to $500,000 for the same period in 2020 [26] Business Line Data and Key Metrics Changes - Subscription revenue for the year reached $10 million, with Q4 subscriptions growing to $3.35 million [9] - Site search now constitutes 40% of total revenue and is the fastest-growing product set [13] - R&D expenses were about 23% of revenue in Q4, while sales and marketing expenses were 24% of revenue [31] Market Data and Key Metrics Changes - The company has more than 400 customers in the site search market, with significant growth in the Midwestern region [13][36] - New customer acquisitions include B2B distributors, government contracts, and tech companies, with a focus on verticals like electronics and plumbing [37] Company Strategy and Development Direction - The company’s strategy, referred to as eCommerce 360, aims to increase recurring subscription and license revenue with minimal service requirements [21] - Investments in business development and marketing have been made, with a tripling of the marketing budget [10] - The integration of WooRank and Hawksearch is expected to enhance product offerings and drive revenue growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth in 2022, focusing on revenue growth, customer success, and technical innovations [29] - The company is leveraging partnerships with Salesforce, BigCommerce, and Optimizely to reduce customer acquisition costs [34] Other Important Information - The company ended the fiscal year with $9 million in cash and a comfortable cash buffer for future acquisitions [10] - All Series D preferred shares have been converted to common stock [29] Q&A Session Summary Question: Will R&D expenses remain high with the integration of WooRank and Hawksearch? - Management indicated that R&D expenses are at a steady state and will remain reasonable as revenue grows [31] Question: What is the lead generation and conversion experience with WooRank? - WooRank is generating numerous leads and new customers, with successful cross-selling into the Hawksearch pipeline [32] Question: How have customer acquisition costs changed? - Customer acquisition costs have improved significantly, aided by partnerships and cross-selling strategies [34] Question: What is the geographic distribution of new customers? - New customers are primarily from North America, with a notable presence in the Midwest [36] Question: What is the current number of common shares outstanding? - Approximately 10.2 million common shares are outstanding post-preferred conversion [39]