“Fresh off our record sales in the first quarter, our Zeus product launch featuring Smart Search has been a remarkable success in Q2 and will continue to be a major sales focus in 2024 and beyond,” said
Financial Highlights – Second Quarter of Fiscal Year 2024
- Total revenue was
$3.8 million , compared to$4.1 million in the prior year period. - Subscription and licenses revenue was
$3.0 million , compared to$3.3 million in the prior year period. - Gross profit was
$2.5 million , compared to$2.8 million in the prior year period. - Gross margin was 66% compared to 69% in the prior year period.
Financial Highlights – First 6 Months of Fiscal Year 2024
- Total revenue was
$7.6 million , compared to$8.2 million in the prior year period. - Subscription and licenses revenue was
$6.1 million , compared to$6.5 million in the prior year period. - Gross profit was
$5.1 million , compared to$5.6 million in the prior year period. - Gross margin was 67% compared to 69% in the prior year period.
Product Highlights
- HawkSearch launched 23 sites over the last 24 weeks, with 5 more scheduled to go live this month. Many of these sites are in partnership with
Optimizely and BigCommerce where we have connector apps prominently available in their app stores. - In late March we launched Smart Search’s Zeus release, which introduces two new ways to search: Concept Search and Image Search. This changes how customers interact with search, leading to increased engagement and revenue for businesses. Smart Search uses AI large language models and vector databases, and retrieval augmented generation to process customer queries through text or images. Image Search allows a customer to upload an image of a product, and HawkSearch will show similar items for purchase. Concept Search lets users describe their needs in natural language, and HawkSearch finds relevant products or information.
Partner Highlights
- BigCommerce – HawkSearch is featured on the first page of the Big Commerce app store. Big Commerce partnered with HawkSearch at the B2B Online Chicago conference to help their customers understand how HawkSearch can increase online sales.
Optimizely – HawkSearch is recognized byOptimizely as a top paid app in their app store. HawkSearch andOptimizely have partnered in several online webinars and have launched several customer websites recently.- CSS Commerce is introducing HawkSearch’s AI-powered SmartSearch to hundreds of BigCommerce and Magento customers.
Springthrough Agency will leverage Bridgeline’s HawkSearch AI technology to grow revenue for eCommerce websites on the Sitefinity platform. The partnership allows thousands of Progress Sitefinity customers easy access to HawkSearch AI-powered search. Springthrough brings knowledge and expertise as a Premier Sitefinity Partner and a recipient of the Sitefinity Champion Award.- Moblico, a leader in mobile engagement solutions for wholesale distributors, will leverage Bridgeline's HawkSearch to grow revenue for distributors through mobile search. HawkSearch and Moblico will be hosting a joint session on AI mobile search at the Applied AI for
Distributors Conference at Marriott Chicago O’Hare onTuesday, June 4th, 2024 .
Customer Highlights
- Bridgeline sold nearly 50 new licenses this fiscal year to companies such as
Agri Supply ,Max Warehouse , Nail Gun Depot, Rainbow Resource, and Trusted Choice. Schaedler Yesco Distribution , an electrical distributor with over 29 locations representing over 1,000 brands has implemented Bridgeline's HawkSearch on itsOptimizely powered eCommerce site using the Xngage Connector for HawkSearch.- Voltus, a leading German electrical distributor, has selected Bridgeline to power site search for its eCommerce site. Voltus aims to increase online revenue by using Bridgeline’s AI-powered site search for its online catalog of 80,000 products.
- An electrical distribution leader has implemented HawkSearch to power their eCommerce site on the
Optimizely platform. HawkSearch will enhance the distributor's revenue, already over$200 million annually, through its AI-powered search bar that offers a more personalized user experience. - A manufacturer of automotive accessories opted for HawkSearch to improve the eCommerce experience on both its main site in
the United States and its international brand site. The manufacturer has selected HawkSearch to boost revenue by improving product discovery within its catalog of over 7,000 SKUs. The manufacturer will leverage HawkSearch Recommendations to provide a personalized shopping experience, encouraging exploration of the retailer’s diverse range of products and streamlining the customer’s decision-making process. - A building supplies chain selected HawkSearch for its eCommerce site to boost its revenue by improving product discovery within its catalog of over 40,000 products. The retailer will use HawkSearch Recommendations to provide personalized shopping for customers and product recommendations that increase the average size of each order.
- A leading office furniture manufacturer has implemented HawkSearch on its eCommerce site. The manufacturer will use HawkSearch AI to increase online revenue for over 500,000 product searches per month. HawkSearch AI will increase conversions through features such as autocomplete which leads to faster conversion for each search query.
Other Highlights
- Bridgeline has been recognized as one of the top 20 E-commerce solution providers of 2024 by
Icon Outlook Technology Magazine . This accolade underscores Bridgeline’s innovations as an e-commerce solution provider, including the recent launch of HawkSearch’s Smart Search, the AI technology powering online sales through concept and image search. Ari Kahn , has been recognized as one of the top 20 visionary CEOs of 2024 by CEOOutlook Magazine .
Financial Results – Second Quarter of Fiscal Year 2024
- Total revenue, which is comprised of Licenses and Services revenue, was
$3.8 million for the quarter endedMarch 31, 2024 , as compared to$4.1 million for the same period in 2023. - Subscription and licenses revenue, which is comprised of SaaS licenses, maintenance and hosting revenue and perpetual license revenue was
$3.0 million for the quarter endedMarch 31, 2024 , as compared to$3.3 million for the same period in 2023. As a percentage of total revenue, Subscription and licenses revenue was 79% of total revenue for the quarter endedMarch 31, 2024 , compared to 80% for the same period in 2023. - Services revenue was
$0.8 million for the quarter endedMarch 31, 2024 , as compared to$0.8 million for the same period in 2023. As a percentage of total revenue, Services revenue accounted for 21% of total revenue for the quarter endedMarch 31, 2024 , compared to 20% for the same period in 2023. - Cost of revenue of
$1.3 million for the quarter endedMarch 31, 2024 , was consistent with the$1.3 million for the same period in 2023. Gross profit was$2.5M for the quarter endedMarch 31, 2024 , as compared to$2.8 million for the same period in 2023. - Gross margin was 66% for the quarter ended
March 31, 2024 , as compared to 69% for the same period in 2023. Subscription and licenses gross margin were 71% for three months endedMarch 31, 2024 , as compared to 74% for the same period in 2023. Services gross margins were 47% for the three months endedMarch 31, 2024 , as compared to 49% for the same period in 2023. - Operating expenses were
$3.0 million for the quarter endedMarch 31, 2024 , as compared to$3.5 million for the same period in 2023. - Operating loss for the quarter ended
March 31, 2024 , was$0.5 million , as compared to$0.7 million for the same period in 2023. - The warrant liability revaluation resulted in a
$25 thousand non-cash loss attributable to the change in the fair value of the warrant liabilities for the quarter endedMarch 31, 2024 . This compares to a net gain from revaluation of$171 thousand for the same period in 2023. - Net loss for the quarter ended
March 31, 2024 , was$0.6 million , compared to a net loss of$0.5 million for the same period in 2023.
Financial Results – First 6 Months of Fiscal Year 2024
- Total revenue, which is comprised of Licenses and Services revenue, was
$7.6 million for the six months endedMarch 31, 2024 , as compared to$8.2 million for the same period in 2023. - Subscription and licenses revenue, which is comprised of SaaS licenses, maintenance and hosting revenue and perpetual license revenue was
$6.1 million for the six months endedMarch 31, 2024 , as compared to$6.5 million for the same period in 2023. As a percentage of total revenue, Subscription and licenses revenue was 81% of total revenue for the six months endedMarch 31, 2024 , compared to 80% for the same period in 2023. - Services revenue was
$1.5 million for the six months endedMarch 31, 2024 , as compared to$1.7 million for the same period in 2023. As a percentage of total revenue, Services revenue accounted for 19% of total revenue for the six months endedMarch 31, 2024 , compared to 20% for the same period in 2023. - Cost of revenue was
$2.5 million for the six months endedMarch 31, 2024 , as compared to$2.5 million for the same period in 2023. Gross profit was$5.1 million for the six months endedMarch 31, 2024 , as compared to$5.6 million for the same period in 2023. - Gross margin was 67% for the six months ended
March 31, 2024 , as compared to 69% for the same period in 2023. Subscription and licenses gross margin were 72% for the six months endedMarch 31, 2024 , as compared to 74% for the same period in 2023. Services gross margin was 46% for the six months endedMarch 31, 2024 , as compared to 50% for the same period in 2023. - Operating expenses were
$6.2 million for the six months endedMarch 31, 2024 , as compared to$6.7 million for the same period in 2023. - Operating loss for the six months ended
March 31, 2024 , was$1.2 million , as compared to an operating loss of$1.0 million for the same period in 2023. - The warrant liability revaluation resulted in a
$7 thousand non-cash loss attributable to the change in the fair value of the warrant liabilities for the six months endedMarch 31, 2024 . This compares to a net gain from revaluation of$468 thousand for the same period in 2023. - Net loss for the six months ended
March 31, 2024 , was$1.2 million , compared to a net loss of$0.6 million for the same period in 2023.
Conference Call
The details of the conference call and replay are as follows:
Bridgeline Digital Second Quarter 2024 Earnings Call
https://register.vevent.com/register/BI42f1ba1d13914dd0a2e04a4a44ab5bb1
Participants can register for the conference call using the above URL above. Once registered, participants will receive dial-in numbers and unique PIN number.
Replays of the conference call will be available through the following link:
https://edge.media-server.com/mmc/p/hq9nipce
Non-GAAP Financial Measures
This press release contains the following Non-GAAP financial measures: Adjusted EBITDA, Non-GAAP adjusted net income (loss), and Non-GAAP adjusted net earnings (loss) per diluted share.
Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization, stock-based compensation expense, impairment of goodwill and intangible assets, non-cash warrant related income/expense, changes in fair value of contingent consideration, restructuring and acquisition-related costs, amortization of debt discounts, preferred stock dividends and any related tax effects. Bridgeline uses Adjusted EBITDA and Non-GAAP adjusted net income (loss) as supplemental measures of our performance that are not required by, or presented in accordance with, accounting principles generally accepted in
Non-GAAP adjusted net income (loss) and Non-GAAP adjusted net income (loss) per diluted share are calculated as net income (loss) or net income (loss) per share on a diluted basis, excluding, where applicable, amortization of intangible assets, change in fair value of warrants, stock-based compensation, restructuring and acquisition-related costs, goodwill impairment charges, preferred stock dividends and any related tax effects.
Bridgeline's management does not consider these Non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these Non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these Non-GAAP financial measures. To compensate for these limitations, Bridgeline management presents Non-GAAP financial measures in connection with GAAP results. Bridgeline urges investors to review the reconciliation of its Non-GAAP financial measures to the comparable GAAP financial measures, which is included in this press release, and not to rely on any single financial measure to evaluate Bridgeline's financial performance.
Our definitions of Non-GAAP Adjusted EBITDA and adjusted net income (loss) may differ from and therefore may not be comparable with similarly titled measures used by other companies, thereby limiting their usefulness as comparative measures. As a result of the limitations that Adjusted EBITDA and Non-GAAP adjusted net income (loss) have as an analytical tool, investors should not consider them in isolation, or as a substitute for analysis of our operating results as reported under GAAP.
Safe Harbor for Forward-Looking Statements
Statement under the Private Securities Litigation Reform Act of 1995
All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, are based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These statements appear in a number of places and include statements regarding the intent, belief or current expectations of
About
Bridgeline is a marketing technology company that offers a suite of products that help companies grow online revenue by driving more traffic to their websites, converting more visitors to purchasers, and increasing average order value.
To learn more, please visit www.bridgeline.com or call (800) 603-9936.
Contact:
Chief Financial Officer
twindhausen@bridgeline.com
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||
(in thousands, except share and per share data) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Revenue: | |||||||||||||||||||
Subscription and perpetual licenses | $ | 3,010 | $ | 3,273 | $ | 6,096 | $ | 6,502 | |||||||||||
Digital engagement services | 794 | 821 | 1,463 | 1,675 | |||||||||||||||
Total net revenue | 3,804 | 4,094 | 7,559 | 8,177 | |||||||||||||||
Cost of revenue: | |||||||||||||||||||
Subscription and perpetual licenses | 860 | 840 | 1,687 | 1,701 | |||||||||||||||
Digital engagement services | 420 | 422 | 796 | 840 | |||||||||||||||
Total cost of revenue | 1,280 | 1,262 | 2,483 | 2,541 | |||||||||||||||
Gross profit | 2,524 | 2,832 | 5,076 | 5,636 | |||||||||||||||
Operating expenses: | |||||||||||||||||||
Sales and marketing | 941 | 1,386 | 1,854 | 2,595 | |||||||||||||||
General and administrative | 766 | 756 | 1,547 | 1,588 | |||||||||||||||
Research and development | 1,037 | 926 | 2,130 | 1,673 | |||||||||||||||
Depreciation and amortization | 299 | 381 | 684 | 759 | |||||||||||||||
Restructuring and acquisition related expenses | - | 45 | 15 | 45 | |||||||||||||||
Total operating expenses | 3,043 | 3,494 | 6,230 | 6,660 | |||||||||||||||
Loss from operations | (519 | ) | (662 | ) | (1,154 | ) | (1,024 | ) | |||||||||||
Interest expense and other, net | (53 | ) | (10 | ) | (53 | ) | (19 | ) | |||||||||||
Change in fair value of warrant liabilities | (25 | ) | 171 | (7 | ) | 468 | |||||||||||||
Income (loss) before income taxes | (597 | ) | (501 | ) | (1,214 | ) | (575 | ) | |||||||||||
Provision for (benefit from) income taxes | 5 | 10 | 10 | 16 | |||||||||||||||
Net (loss) income | $ | (602 | ) | $ | (511 | ) | $ | (1,224 | ) | $ | (591 | ) | |||||||
Net (loss) income per share attributable to common shareholders: | |||||||||||||||||||
Basic net (loss) income per share | $ | (0.06 | ) | $ | (0.05 | ) | $ | (0.12 | ) | $ | (0.06 | ) | |||||||
Diluted net (loss) income per share | $ | (0.06 | ) | $ | (0.05 | ) | $ | (0.12 | ) | $ | (0.06 | ) | |||||||
Number of weighted average shares outstanding: | |||||||||||||||||||
Basic | 10,417,609 | 10,417,609 | 10,417,609 | 10,417,609 | |||||||||||||||
Diluted | 10,430,602 | 10,430,710 | 10,430,602 | 10,430,766 | |||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||
(in thousands, except share and per share data) | ||||||||||||
(Unaudited) | ||||||||||||
ASSETS | ||||||||||||
2024 | 2023 | |||||||||||
Current assets: | ||||||||||||
Cash and cash equivalents | $ | 1,302 | $ | 2,377 | ||||||||
Accounts receivable, net | 1,462 | 1,004 | ||||||||||
Prepaid expenses and other current assets | 388 | 278 | ||||||||||
Total current assets | 3,152 | 3,659 | ||||||||||
Property and equipment, net | 84 | 151 | ||||||||||
Operating lease assets | 246 | 390 | ||||||||||
Intangible assets, net | 4,278 | 4,890 | ||||||||||
8,468 | 8,468 | |||||||||||
Other assets | 54 | 73 | ||||||||||
Total assets | $ | 16,282 | $ | 17,631 | ||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
Current liabilities: | ||||||||||||
Current portion of long-term debt | $ | 273 | $ | 267 | ||||||||
Current portion of operating lease liabilities | 165 | 148 | ||||||||||
Accounts payable | 1,204 | 1,255 | ||||||||||
Accrued liabilities | 796 | 995 | ||||||||||
Deferred revenue | 2,161 | 2,084 | ||||||||||
Total current liabilities | 4,599 | 4,749 | ||||||||||
Long-term debt, net of current portion | 339 | 435 | ||||||||||
Operating lease liabilities, net of current portion | 81 | 241 | ||||||||||
Warrant liabilities | 181 | 174 | ||||||||||
Other long-term liabilities | 577 | 572 | ||||||||||
Total liabilities | 5,777 | 6,171 | ||||||||||
Commitments and contingencies | ||||||||||||
Stockholders' equity: | ||||||||||||
Preferred stock - | ||||||||||||
Series C Convertible Preferred stock: 11,000 shares authorized; 350 shares issued and outstanding at | - | - | ||||||||||
Common stock - | ||||||||||||
10,417,609 shares issued and outstanding at | 10 | 10 | ||||||||||
Additional paid-in-capital | 101,569 | 101,275 | ||||||||||
Accumulated deficit | (90,801 | ) | (89,577 | ) | ||||||||
Accumulated other comprehensive loss | (273 | ) | (248 | ) | ||||||||
Total stockholders' equity | 10,505 | 11,460 | ||||||||||
Total liabilities and stockholders' equity | $ | 16,282 | $ | 17,631 | ||||||||
RECONCILIATION OF GAAP TO NON-GAAP RESULTS | |||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||||
Reconciliation of GAAP net income (loss) to Adjusted EBITDA: | |||||||||||||||||||
GAAP net loss | $ | (602 | ) | $ | (511 | ) | $ | (1,224 | ) | $ | (591 | ) | |||||||
Provision for income taxes | 5 | 10 | 10 | 16 | |||||||||||||||
Interest expense and other, net | 53 | 10 | 53 | 19 | |||||||||||||||
Change in fair value of warrants | 25 | (171 | ) | 7 | (468 | ) | |||||||||||||
Amortization of intangible assets | 266 | 344 | 612 | 686 | |||||||||||||||
Depreciation and other amortization | 41 | 45 | 86 | 87 | |||||||||||||||
Restructuring and acquisition related charges | - | 45 | 15 | 45 | |||||||||||||||
Stock-based compensation | 129 | 84 | 241 | 177 | |||||||||||||||
Adjusted EBITDA | $ | (83 | ) | $ | (144 | ) | $ | (200 | ) | $ | (29 | ) | |||||||
Reconciliation of GAAP net income (loss) to non-GAAP | |||||||||||||||||||
adjusted net income (loss): | |||||||||||||||||||
GAAP net loss | $ | (602 | ) | $ | (511 | ) | $ | (1,224 | ) | $ | (591 | ) | |||||||
Change in fair value of warrants | 25 | (171 | ) | 7 | (468 | ) | |||||||||||||
Amortization of intangible assets | 266 | 344 | 612 | 686 | |||||||||||||||
Restructuring and acquisition related charges | - | 45 | 15 | 45 | |||||||||||||||
Stock-based compensation | 129 | 84 | 241 | 177 | |||||||||||||||
Non-GAAP adjusted net income (loss) | $ | (182 | ) | $ | (209 | ) | $ | (349 | ) | $ | (151 | ) | |||||||
Reconciliation of GAAP net earnings (loss) per diluted share to | |||||||||||||||||||
non-GAAP adjusted net earnings (loss) per diluted share: | |||||||||||||||||||
GAAP net loss per diluted share | $ | (0.06 | ) | $ | (0.05 | ) | $ | (0.12 | ) | $ | (0.06 | ) | |||||||
Change in fair value of warrants | 0.00 | (0.02 | ) | 0.00 | (0.04 | ) | |||||||||||||
Amortization of intangible assets | 0.03 | 0.03 | 0.06 | 0.07 | |||||||||||||||
Restructuring and acquisition related charges | - | 0.00 | 0.00 | 0.00 | |||||||||||||||
Stock-based compensation | 0.01 | 0.01 | 0.02 | 0.02 | |||||||||||||||
Non-GAAP adjusted net loss per diluted share | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.01 | ) | |||||||
Source:
2024 GlobeNewswire, Inc., source