Bridgeline Digital, Inc. (NASDAQ:BLIN) Q1 2025 Earnings Conference Call February 13, 2025 4:30 PM ET Company Participants Thomas Windhausen - CFO and Treasurer Ari Kahn - President and CEO Conference Call Participants Casey Ryan - WestPark Capital Howard Halpern - Taglich Brothers Operator Good day, everyone. Welcome to the Bridgeline Digital First Quarter 2025 Earnings Call. At this time, all participants have been placed on a listen-only mode. If you have any questions or comments during the presentation, ...

Financial Data and Key Metrics Changes - For the fiscal year 2024, revenue increased by 30% year-over-year to $4.8 billion, and adjusted EBITDA improved by $332 million year-over-year to $181 million, marking the first positive free cash flow in the company's history [7][8] - In Q4 2024, revenue was $1.393 billion, representing a 13% year-over-year growth, with adjusted EBITDA of $89 million [17][18] - Customer acquisition costs were at record lows, with 3.5 million new customers acquired, increasing the total customer base by 42% year-over-year to 10.1 million [8][17] Business Line Data and Key Metrics Changes - The structural Sportsbook hold percentage improved by 80 basis points year-over-year to 11.2% for Q4 2024, with promotional reinvestment outperforming expectations [18] - Adjusted gross margins reached 45%, reflecting the improved structural Sportsbook hold percentage and optimization of promotional offers [18][25] Market Data and Key Metrics Changes - The company noted strong customer engagement and retention, particularly during the Super Bowl, where the DraftKings Sportsbook app reached 1 in the App Store in the sports category [21] - The same-game Parlay handle increased approximately 40% year-over-year, contributing to the highest Sportsbook gross gaming revenue day in the company's history [22] Company Strategy and Development Direction - The company aims to extend its lead in live betting, focusing on integrating recent acquisitions to enhance product offerings [12][14] - DraftKings is positioned to capture significant market share in the growing real money online gaming industry, with plans to explore international expansion in the long term [11][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2025, with revenue guidance raised to $6.3 billion to $6.6 billion, representing year-over-year growth of 32% to 38% [23][24] - The company anticipates that investments in live betting will be neutral to adjusted EBITDA in 2025 and positive in 2026 and beyond [23][68] Other Important Information - The company plans to optimize its capital structure and explore opportunities in the debt markets while maintaining a prudent approach to leverage [14][70] - Management emphasized the importance of establishing relationships with event organizers to enhance customer acquisition and engagement [78] Q&A Session Summary Question: Trends on volume and handle growth - Management noted that handle growth slowed in Q4 2024 but has accelerated since the elections, with confidence in 2025 due to positive trends [28][30] Question: Promotional intensity and its evolution - Management expects a meaningful decline in promotional intensity in 2025, reflecting the industry's maturation [39] Question: In-play betting trajectory - Management highlighted the importance of product quality and partnerships with broadcasters to enhance in-play betting experiences [45][48] Question: Guidance adjustments - Management refrained from raising guidance prematurely, emphasizing the need for consistent performance tracking [50][51] Question: Customer acquisition in older states - Management indicated that older states have reached high population penetration, with ongoing growth potential [73][76] Question: ROI of sponsorship strategies - Management acknowledged the success of specific events but emphasized the need for a consistent framework for evaluating sponsorship ROI [78] Question: Live betting adoption - Management sees significant upside in live betting adoption, with trends indicating increasing customer engagement [84][86] Question: Jackpocket cross-sell effectiveness - Management expressed optimism about Jackpocket's potential, particularly in states with legal sports betting [131] Question: Structural hold trends - Management noted better-than-expected performance in structural hold, with continued improvement anticipated [108] Question: Gaming taxes and cost structure - Management indicated no anticipated changes in gaming taxes for 2025, maintaining a conservative approach to guidance [126]

Financial Data and Key Metrics Changes - In 2024, the company achieved a total revenue growth of 31%, driven by the success of eight commercialized medicines, including EPKINLY and TIVDAK [8][10] - Operating profit grew by 26%, reflecting strong business performance despite significant investments [9][10] - Recurring revenues increased by 35%, representing 91% of total revenue, up from 88% in 2023 [41][43] Business Line Data and Key Metrics Changes - EPKINLY generated $281 million in sales for the year, with $78 million in Q4, primarily from the U.S. and Japan [30][34] - TIVDAK produced $131 million in sales for the year, including $38 million in Q4, driven by strong utilization rates [36] - The company has 12 products or candidates in 30 clinical trials, including seven Phase III trials [11] Market Data and Key Metrics Changes - EPKINLY is positioned as the first and only bi-specific approved for dual indications in the U.S. and Japan, with anticipated approval for additional indications [15][34] - TIVDAK is regarded as the global standard of care in advanced cervical cancer, with expected approvals in new markets [36][38] Company Strategy and Development Direction - The company is focused on accelerating late-stage programs and maximizing the success of commercialized medicines, with significant investments planned for 2025 [7][23] - Strategic investments are being made in high-potential programs like EPKINLY, Rina-S, and Acasunlimab, with a disciplined approach to capital allocation [61][62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong execution and disciplined investments that have solidified the company's foundation for sustainable success [7][10] - The company anticipates continued growth in recurring revenues and plans to maintain a focus on high-impact late-stage programs [50][56] Other Important Information - The company plans to repurchase approximately 1.9 million shares, equivalent to around $370 million, reflecting confidence in future growth [63] - The effective tax rate decreased to 14.4% from 22.8% due to the recognition of deferred tax assets [47] Q&A Session Summary Question: Confidence in endometrial cancer opportunity for Rina-S - Management highlighted robust efficacy data expected to be presented publicly, driving excitement for the Phase III commitment [71][72] Question: Competitive landscape for EPKINLY in DLBCL - Management noted recent NCCN inclusion of GemOx with EPKINLY, enhancing its competitive positioning [78] Question: Market dynamics for EPKINLY in Q4 - A one-time accounting adjustment in Europe impacted Q4 numbers, but overall growth trajectory remains strong [87] Question: Peak sales estimate for Acasunlimab - Management explained that the estimate considers the competitive landscape and treatment intervals [84][91] Question: Clinical development plans for Rina-S in other solid tumors - The company is enrolling patients in non-small cell lung cancer and triple-negative breast cancer cohorts, with plans for further updates [140]

Financial Data and Key Metrics Changes - The company reported a nearly $250 million increase in cash flow year-on-year, reaching almost $300 million for IAC's businesses [25] - Angi's EBITDA was significantly reduced from approximately $260 million to $35 million, while capital expenditures (CapEx) increased to $115 million before being cut down to about $50 million [10][14] - Dotdash Meredith's EBITDA expectations dropped from $450 million to $230 million, indicating a challenging financial environment [11] Business Line Data and Key Metrics Changes - Angi has seen a turnaround in performance, with management focusing on improving product quality and customer experience, leading to expectations of revenue growth in the upcoming year [16][27] - Dotdash Meredith experienced a 10% digital revenue growth, driven by performance marketing which grew 22%, indicating strong e-commerce performance [56] Market Data and Key Metrics Changes - The company noted an 8% increase in traffic for Dotdash Meredith, reversing previous declines [17] - The first quarter of 2025 is expected to see a low-20% year-over-year decline due to regulatory changes impacting the market dynamics [48] Company Strategy and Development Direction - The company is focused on spinning off Angi to allow it to operate independently, with management expressing confidence in the leadership of Joey Levin and Jeff Kip [73] - The strategy includes a shift towards a single product and pricing structure for Angi, which is expected to improve operational efficiency and revenue per transaction [95] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to growth in 2026, citing improvements in customer experience and operational adjustments [49][92] - The company is adjusting to regulatory changes while maintaining a competitive position in the marketplace [43] Other Important Information - The company plans to complete the spin-off of Angi by March 31, 2025, with no dividends planned for Angi at the time of the spin [38] - Corporate costs are expected to be elevated in 2025 due to non-recurring expenses related to the spin-off and other legacy matters [124] Q&A Session Summary Question: Could you talk about your motivations for moving to Angi with the spin? - Joey Levin mentioned both personal and professional motivations, emphasizing the asymmetrical upside potential of Angi [34] Question: What are the next steps in the spin process? - Christopher Halpin outlined that the registration statement was filed, and the goal is a seamless transition for Angi as a standalone public company [37] Question: What gives you confidence in improving through the year despite the Q1 guide coming in below expectations? - Jeff Kip explained that the implementation of consumer choice consistent with FCC orders is expected to enhance customer experience and market dynamics [40] Question: Can you discuss the drivers of Dotdash Meredith's 4Q revenue and EBITDA? - Christopher Halpin highlighted strong performance in traffic and advertising, particularly in the food category, contributing to a 10% digital revenue growth [55] Question: How should we think about capital allocation post-Angi spin? - Barry Diller indicated a balanced approach between investing in current businesses and returning capital to shareholders, emphasizing the importance of seeking new opportunities [105] Question: What are the key steps to grow direct traffic and eliminate middlemen? - Christopher Halpin discussed the focus on direct-to-consumer efforts and leveraging premium content to engage customers directly [139]

Financial Data and Key Metrics Changes - Fourth quarter revenue reached $445.6 million, exceeding previous guidance despite a 4% negative foreign currency impact of $20.1 million [33] - Adjusted earnings per share for Q4 was $0.38, surpassing guidance and slightly ahead of the prior year's $0.37 [34] - Full year revenue totaled $1.73 billion, within original guidance despite an unexpected foreign exchange headwind of approximately $60 million [34] - Adjusted gross margin for Q4 was 71.4%, down from 72.1% in the prior year, while the core Nu Skin business adjusted gross margin was 76.6%, down from 77.4% [34] Business Line Data and Key Metrics Changes - The launch of the AgeLock TrueFase peptide retinol complex contributed to Q4 results, with the new TrueFace product showing strong market acceptance [12][13] - The RISE segment achieved 28% year-on-year growth in Q4, indicating strong performance in this area [13] - A $38.8 million write-down was recorded this quarter as part of a strategy to streamline the product portfolio [35] Market Data and Key Metrics Changes - Growth was noted in Latin America and parts of Southeast Asia, while persistent headwinds remained in China and South Korea [11] - The Americas segment showed constant currency growth, with particular strength in Latin America [11] - The company anticipates revenue declines of 3% to 11% for 2025, excluding the impact of the Mable business from the prior year [44] Company Strategy and Development Direction - The company aims to strengthen its core Nu Skin business, accelerate innovation in its intelligent beauty and wellness platform, and improve operational performance and efficiency [15] - A new business model is being rolled out to enhance the entrepreneurial model for affiliates, focusing on social-first selling [18] - The company plans to refine its product portfolio to meet emerging consumer needs and increase focus on developing markets [19] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing economic challenges in South Korea and China, with consumer spending dropping and savings rates increasing [51] - The company is optimistic about growth opportunities in Latin America, Southeast Asia, and Japan for 2025 [60][61] - The management expressed confidence in achieving meaningful earnings growth despite top-line pressures in certain markets [46] Other Important Information - The strategic transaction involving the sale of the Mable business for $250 million was highlighted, which generated a five times return on investment [14] - The company has made significant progress in strengthening its balance sheet, reducing debt by $110 million funded through cash from operations [41] - The restructuring plan is now materially complete, positioning the company for a more sustainable future [39] Q&A Session Summary Question: Economic challenges in South Korea and China - Management acknowledged ongoing economic challenges in these regions, with consumer spending dropping and local brands gaining priority [50][52] Question: Markets expected to return to growth in 2025 - Management highlighted Latin America, Southeast Asia, and Japan as key markets with potential for growth in 2025 [60][61] Question: Performance on Amazon - Management discussed the importance of maintaining brand image on Amazon and noted that the strategy has been beneficial in minimizing discount reselling [66][70]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 increased by 1.5% to $7.4 million compared to $7.3 million in the same quarter last year [40] - Gross profit decreased by 11% to $1.9 million, representing 26% of total revenues, down from 30% in the prior year [41] - Net loss for Q2 2025 totaled $2.6 million, compared to a loss of $1.7 million in the same quarter last year [43] - EBITDA loss for Q2 2025 was $1.5 million, compared to a loss of $0.5 million for the same period last year [44] - Cash and cash equivalents as of December 31, 2024, totaled $3.2 million, down from $3.5 million as of June 30, 2024 [44] Business Line Data and Key Metrics Changes - Revenue from infrared components was $3.1 million (42% of total revenue) [40] - Revenue from visible components was $2.8 million (37% of total revenue) [40] - Revenue from assemblies and modules was $0.9 million (12% of total revenue) [40] - Revenue from engineering services was $0.7 million (9% of total revenue) [40] Market Data and Key Metrics Changes - The acquisition of G5 Infrared is expected to bring in preliminary unaudited revenue of $15 million in 2024, with combined revenue projections exceeding $55 million in the next 12 months [27][45] - G5's cooled mid-infrared cameras have ASPs ranging from $50,000 to $500,000, indicating a significant market opportunity [20] Company Strategy and Development Direction - The acquisition of G5 Infrared is seen as a transformative event, aligning with the company's strategy to transition from a pure optical components manufacturer to a solutions and subsystem provider [7][11] - The company aims to leverage its differentiated technology to become a systems supplier, enhancing its product offerings and market position [8][10] - The focus on high-margin, high-ASP products is expected to expedite the path to achieving long-term EBITDA margins of 15% [48] Management's Comments on Operating Environment and Future Outlook - Management noted that the recent restrictions on germanium exports from China have impacted supply chains, but they do not expect to lose revenue, only a delay in shipments [29][30] - There is optimism regarding the redesign of systems to replace germanium with alternative materials, which is expected to drive future growth [34] - The company anticipates significant growth opportunities in defense and security markets, particularly with the introduction of G5's products [49][100] Other Important Information - The company has invested nearly $6 million in its Orlando facility to prepare for growth and does not expect significant additional capital outlay for increased capacity [36] - The acquisition of G5 was a preemptive move based on a long-standing relationship, indicating a strategic fit and cultural alignment [117][120] Q&A Session Summary Question: Regarding gross margin and manufacturing yield issues - Management indicated that yield issues were normal and exacerbated by supply chain delays from China, but they do not expect long-term impacts [57][58] Question: Customer overlap and cross-selling opportunities with G5 - There are significant cross-selling opportunities, particularly in optics and camera systems, which are not yet included in revenue projections [59][63] Question: Clarification on large programs and LRIP - Management confirmed that they are in final negotiations for large programs, with expectations for low-rate initial production (LRIP) to begin soon [72][74] Question: Impact of tariffs and supply chain concerns - Management is passing through tariff costs to customers and is more concerned about supply chain disruptions than tariffs themselves [138][140] Question: Current quarter performance and shipment updates - Most delayed shipments have been completed, but supply chain issues from China remain a concern [102][103] Question: G5's pipeline and potential revenue - Management expects G5's programs to generate significant revenue, with potential annual production values ranging from $5 million to $20 million [161]

Procore Technologies, Inc. (NYSE:PCOR) Q4 2024 Results Earnings Conference Call February 14, 2025 5:00 PM ET Company Participants Alexandra Geller - Head, Investor Relations Tooey Courtemanche - Founder, President and Chief Executive Officer Howard Fu - Chief Financial Officer Conference Call Participants Brent Bracelin - Piper Sandler Joe Vruwink - Robert W. Baird DJ Hynes - Canaccord Brent Thill - Jefferies Saket Kalia - Barclays Dylan Becker - William Blair Adam Borg - Stifel Daniel Jester - BMO Capital ...

Financial Data and Key Metrics Changes - The company reported a full-year adjusted EBITDA improvement of $50 million, despite macroeconomic challenges such as geopolitical uncertainty and high inflation [12][19] - Fourth quarter adjusted EBITDA was $26 million, which was $6 million higher than the prior year, but negatively impacted by unfavorable net timing effects [25][19] - Cash provided by operations during the fourth quarter was $85 million, resulting in free cash flow of $64 million, marking the highest quarter of free cash flow generation in over two years [26][20] Business Line Data and Key Metrics Changes - Sales of recycled content products increased by 47% year-over-year, now representing 4% of total company variable margin in 2024 [15] - Engineered Materials segment saw a 3% increase in PMMA Resins sales volumes year-over-year, despite weak end market demand [15] - The Polymer Solutions segment faced significant negative timing impacts due to falling raw material prices, particularly styrene [25][19] Market Data and Key Metrics Changes - The company noted a significant decline in consumer confidence across major markets, particularly in Europe and China, affecting end markets such as automotive and construction [12] - The company anticipates a compound annual demand growth of at least 7% in target end markets through the end of the decade, particularly in India [18] Company Strategy and Development Direction - The company is focused on executing self-help actions and transformation strategies to navigate macroeconomic challenges [12] - Significant advancements in circular technologies were highlighted, including the commissioning of pilot facilities for polycarbonate and PMMA [16] - The company is pursuing a strategic partnership with Deepak Nitrite Limited, viewing India as a significant growth market [17][18] Management's Comments on Operating Environment and Future Outlook - Management does not anticipate meaningful demand recovery in major end markets in 2025, citing ongoing geopolitical issues [27] - The first quarter of 2025 is expected to be sequentially better than Q4, with anticipated adjusted EBITDA of $60 million to $80 million, including a one-time contribution from the licensing agreement [29] - Management expressed confidence in the actions taken over the past two years to position the company for eventual market recovery [30] Other Important Information - The company has restructured its reporting segments to better reflect its operational strategy [22] - A transaction was closed in January that increased available liquidity by approximately $150 million and extended debt maturity to 2028 [24] Q&A Session Summary Question: Follow-up on cash spends for 2025 - Management indicated that the increase in cash expenditures is primarily due to working capital changes and higher cash taxes resulting from increased profitability [33][36] Question: Impact of lower styrene pricing on profitability - Management explained that pricing on styrene-containing products is generally indexed, leading to a pass-through effect on profitability [39][40] Question: Guidance for Q1 and potential destocking - Management noted that they do not foresee significant destocking initiatives from customers and that demand in automotive is more related to consumer confidence than inventory levels [81][82] Question: Status of the AmSty sale process - Management clarified that the sale process is not halted but is being timed to optimize value [122] Question: Insights on the recycling platform and margins - Management reported that recycled products are seeing significant demand and margins are substantially higher than virgin products [75][76]

Financial Data and Key Metrics Changes - For Q4 2024, adjusted net income was $41.3 million or $1.52 per share, representing a 47.5% increase from $28 million or $1.11 per share in Q4 2023 [47] - Gross written premiums for Q4 were $373.7 million, a 23% increase year-over-year, and 39% growth excluding runoff business [48] - The annualized adjusted return on equity for Q4 was 23.1%, compared to 25.1% for the same period last year [48] Business Line Data and Key Metrics Changes - The earthquake franchise grew gross written premiums by 20% in Q4, maintaining a balanced approach between residential and commercial insurance [19] - The inland marine and other property category grew 36% year-over-year, with strong premium growth from builders risk and Hawaii hurricane lines [22] - The casualty segment saw a significant premium increase of 112% year-over-year, now representing 50% of the total portfolio [25] Market Data and Key Metrics Changes - The company exited 2024 as the third largest writer of earthquake insurance in North America, indicating strong market positioning [19] - The California homeowners market is experiencing dislocation due to recent wildfires, which may lead to increased opportunities for the company's earthquake insurance products [15][72] Company Strategy and Development Direction - The company aims to integrate and operate effectively, build new market leaders, and maintain a conservative risk appetite while focusing on profitable growth [40][41] - The acquisition of First Indemnity of America (FIA) is expected to enhance the company's casualty product group and provide growth opportunities in the surety market [36] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the reinsurance market, noting that recent wildfires may slow the pace of rate decreases but could also create opportunities in the earthquake insurance market [16][37] - The company anticipates adjusted net income guidance for 2025 to be in the range of $180 million to $192 million, reflecting a growth of 39% [60] Other Important Information - The company reported a stockholders' equity increase of 55% year-over-year, reaching $729 million [58] - The adjusted combined ratio for the full year was 73.7%, with a loss ratio of 26.4% [59] Q&A Session Summary Question: Clarification on reinsurance pricing expectations - Management indicated that the guidance range for reinsurance pricing is built around a flat renewal to a potential decrease of 5%, reflecting a conservative approach given market conditions [68] Question: Opportunities in the disrupted California market - Management noted that the disruption in the California market could lead to opportunities in residential earthquake insurance as insurers reduce their exposure [72] Question: Impact of 6/1 pricing on outlook - Management stated that lower pricing on excess of loss reinsurance would positively impact results, especially since it constitutes a significant expense [79] Question: Elasticity of demand for earthquake insurance - Management highlighted that the residential earthquake market remains underpenetrated, and rising homeowners' costs could lead to increased opportunities as insurers nonrenew policies [85] Question: Crop insurance exposure and reinsurance structure - Management confirmed that the crop business will focus on core Midwest states, with a shift towards a combination of quota share and stop loss in reinsurance [136]

Financial Data and Key Metrics Changes - GoDaddy reported total revenue growth of 8% for the full year 2024, reaching $4.6 billion, with normalized EBITDA margin expanding to 31%, an increase of nearly 400 basis points year-over-year [26][28][19] - Free cash flow grew 25% to $1.4 billion, exceeding guidance, while unlevered free cash flow for the year increased 20% to $1.5 billion [29][19] - In Q4 2024, total revenue was $1.2 billion, exceeding guidance, with normalized EBITDA margin expanding to 32% [21][22] Business Line Data and Key Metrics Changes - Applications and commerce (A&C) segment revenue grew 17% to $441 million, driven by strong performance across products including website plus marketing and managed WordPress [22][23] - Core platform segment revenue grew 4% to $751 million, with bookings also increasing by 4% [23][24] - A&C bookings grew 17%, while core platform bookings rose 4% [22][23] Market Data and Key Metrics Changes - Annualized gross payment volume (GPV) increased 55% to $2.6 billion, indicating strong growth in the commerce initiative [10] - The company expects revenue growth in the US to outpace international growth by approximately 200 basis points due to currency headwinds [36] Company Strategy and Development Direction - GoDaddy's strategy focuses on creating customer value and transforming it into shareholder value through better conversion, attach, and retention [3] - The company is targeting significant contributions to growth from pricing and bundling initiatives in 2025, particularly in presence products and specific customer populations within the hosting business [7][48] - The Aero initiative is seen as a key driver of future growth, with plans to enhance customer experience and engagement through AI and new product offerings [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to customer growth in 2025, driven by high-value customer acquisition and improved retention rates [32][56] - The company anticipates modest financial benefits from the Aero experience in the near term, with a focus on long-term growth [38] - Management highlighted the importance of maintaining operational discipline while pursuing innovation and customer engagement [40][41] Other Important Information - GoDaddy exited 2024 with $1.1 billion in cash and total liquidity of $2.1 billion, with net debt at $2.8 billion [33] - The company plans to maintain a disciplined approach to capital allocation, including covering dilution from share-based compensation through buybacks [44][45] Q&A Session Summary Question: Can you elaborate on the pricing and bundling strategy for 2025? - Management indicated that the focus will be on presence products and specific customer cohorts, emphasizing a customer cohort-based approach rather than a product-centric one [48][52] Question: What are the drivers for returning to customer growth in 2025? - Management highlighted the focus on high-quality customers and the positive signs from the Aero initiative, which is expected to improve customer engagement and retention [56][58] Question: Are there any one-off headwinds impacting revenue growth? - Management acknowledged that while bookings momentum is strong, there are transactional aspects that could impact revenue recognition, particularly in the aftermarket business [66][134] Question: What is the expected impact of the Aero initiative on monetization? - Management noted that Aero is entering the monetization phase earlier than planned, with positive metrics on customer engagement and retention [78][81] Question: How does the company view the growth potential of GPV? - Management expressed optimism about GPV growth, indicating that there is still significant room for penetration within the customer base [85][86] Question: What are the expectations for EBITDA margin in 2025? - Management projected a normalized EBITDA margin expansion of approximately 100 basis points, with continued focus on A&C growth contributing to this [41][157]