Bridgeline Digital, Inc. (NASDAQ:BLIN), The Digital Engagement
Company™, today announced financial results for its fiscal second
quarter ended March 31, 2018.
“Bridgeline continues to see interest in the B2B
market as well as enhanced hosting needs due to regulatory
requirements including those of the American Disability Act (ADA)
and the General Data Protection Regulation (GDPR) in Europe,” said
Ari Kahn, Bridgeline’s President and Chief Executive Officer.
“Bridgeline’s enterprise commerce and hosting capabilities position
us well to address and complement these regulatory requirements by
providing further value to our existing customers and winning new
business.”
Second Quarter Summary:
- SaaS revenue was $1.3 million in
the second quarter of fiscal 2018, compared to $1.4 million in the
second quarter of fiscal 2017.
- Hosting revenue increased 12.4% to
$293,000 in the second quarter of fiscal 2018, compared to $261,000
in the second quarter of fiscal 2017.
- Recurring revenue was $1.7 million
in the second quarter of fiscal 2018, compared to $1.8 million in
the second quarter of fiscal 2017.
- Subscription and perpetual license revenue was $1.5 million in
the second quarter of fiscal 2018, compared to $1.6 million in the
second quarter of fiscal 2017.
- Operating expenses were reduced by
$287,000, or 10.5% to $2.4 million in the second quarter of fiscal
2018, from $2.7 million in the second quarter of fiscal 2017.
Year to Date Summary:
- SaaS revenue was $2.8 million in
the first six months of fiscal 2018, consistent with the $2.8
million in the first six months of fiscal 2017.
- Hosting revenue increased 19.0% to
$596,000 in the first six months of fiscal 2018, compared to
$501,000 in the first six months of fiscal 2017.
- Recurring revenue increased 2.6% to
$3.6 million in the first six months of fiscal 2018, compared to
$3.5 million in the first six months of fiscal 2017.
- Subscription and perpetual license
revenue was $3.1 million in the first six months of fiscal 2018,
compared to $3.3 million in the first six months of fiscal
2017.
- Operating expenses were reduced by
$593,000, or 11.0% to $4.8 million in the first six months of
fiscal 2018, from $5.4 million in the first six months of fiscal
2017.
Financial Results
Second Quarter
Revenue for the second quarter of fiscal 2018
was $3.7 million, compared to $4.0 million in the second quarter of
fiscal 2017. SaaS revenue was $1.3 million in the second quarter of
fiscal 2018, compared to $1.4 million in the second quarter of
fiscal 2017. Hosting revenue was $293,000 in the second quarter of
fiscal 2018, compared to $261,000 in the second quarter of fiscal
2017. Recurring revenue was $1.7 million in the second quarter of
fiscal 2018, compared to $1.8 million in the second quarter of
fiscal 2017. Subscription and perpetual license revenue was $1.5
million in the second quarter of fiscal 2018, compared to $1.6
million in the second quarter of fiscal 2017.
Operating expenses were reduced by $287,000, or
10.5% to $2.4 million in the second quarter of fiscal 2018,
compared to $2.7 million in the second quarter of fiscal 2017,
reflecting management’s ongoing expense control initiatives. Loss
from Operations was $616,000 in the second quarter of fiscal 2018,
compared to $447,000 in the second quarter of fiscal 2017.
Net loss was $680,000 in the second quarter of
fiscal 2018, compared to a net loss of $530,000 in the second
quarter of fiscal 2017.
Adjusted EBITDA was a loss of $185,000 in the
second quarter of fiscal 2018, compared to a gain of $22,000 in the
second quarter of fiscal 2017.
Year to Date
Revenue for the first six months of fiscal 2018
was $7.7 million, compared to $8.0 million in the first six months
of fiscal 2017. SaaS revenue was $2.8 million in the first six
months of fiscal 2018, consistent with the $2.8 million in the
first six months of fiscal 2017. Hosting revenue was $596,000 for
the first six months of fiscal 2018, compared to $501,000 in the
first six months of fiscal 2017. Recurring revenue increased 2.6%
to $3.6 million in the first six months of fiscal 2018, compared to
$3.5 million in the first six months of fiscal 2017. Subscription
and perpetual license revenue was $3.1 million in the first six
months of fiscal 2018, compared to $3.3 million in the first six
months of fiscal 2017.
Operating expenses were reduced by $593,000, or
11.0% to $4.8 million in the first six months of fiscal 2018,
compared to $5.4 million in the first six months of fiscal 2017,
reflecting management’s ongoing expense control initiatives. Loss
from Operations was $959,000 in the first six months of fiscal
2018, compared to $812,000 in the first six months of fiscal
2017.
Net loss was $1.1 million in the first six
months of fiscal 2018, compared to a net loss of $938,000 in the
first six months of fiscal 2017.
Adjusted EBITDA was a loss of $279,000 in the
first six months of fiscal 2018, compared to a gain of $32,000 in
the first six months of fiscal 2017.
Financial Outlook
For fiscal 2018, the Company expects revenue to
be between $15.0 - $15.5 million for fiscal 2018, and management
expects to generate Adjusted EBITDA between negative $500,000 and
positive $100,000 for full year fiscal 2018.
Conference Call Information
Bridgeline Digital will host a conference call
to discuss second quarter 2018 results at 4:30 p.m. ET today. To
listen to the conference call, please dial (877) 837-3910 within
the U.S. or (973) 796-5077 for international callers.
Non-GAAP Financial Measures
This press release contains the following
non-GAAP financial measures: non-GAAP adjusted net income/(loss),
non-GAAP adjusted earnings/(loss) per diluted share, Adjusted
EBITDA and Adjusted EBITDA per diluted share.
Non-GAAP adjusted net income/(loss) and non-GAAP
adjusted earnings/(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,
stock-based compensation, restructuring charges, preferred stock
dividends and any related tax effects.
Adjusted EBITDA and Adjusted EBITDA per diluted
share are defined as earnings before interest, taxes, depreciation
and amortization, stock-based compensation charges, restructuring
charges, preferred stock dividends and any related tax effects.
Bridgeline uses non-GAAP adjusted net income/(loss) and Adjusted
EBITDA as supplemental measures of our performance that are not
required by, or presented in accordance with, accounting principles
generally accepted in the United States (“GAAP”).
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. In order 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 net
income/(loss) and Adjusted EBITDA 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 non-GAAP adjusted net
income and Adjusted EBITDA 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 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 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," or similar expressions, and
variations or negatives of these words. These forward-looking
statements are not guarantees of future results and are subject to
risks, uncertainties and assumptions, including, but not limited
to, the impact of the weakness in the U.S. and international
economies on our business, our inability to manage our future
growth effectively or profitably, fluctuations in our revenue and
quarterly results, our license renewal rate, the impact of
competition and our ability to maintain margins or market share,
the limited market for our common stock, the volatility of the
market price of our common stock, the ability to maintain our
listing on the NASDAQ Capital market, the ability to raise capital,
the performance of our products, our ability to respond to rapidly
evolving technology and customer requirements, our ability to
protect our proprietary technology, the security of our software,
our dependence on our management team and key personnel, our
ability to hire and retain future key personnel, or our ability to
maintain an effective system of internal controls as well as other
risks described in our filings with the Securities and Exchange
Commission. Any of such risks could cause our actual results to
differ materially and adversely from those expressed in any
forward-looking statement. We expressly disclaim any obligation to
update any forward-looking statement.
About Bridgeline Digital
Bridgeline Digital, The Digital Engagement
Company™, helps customers maximize the performance of their
complete digital experience – from websites and intranets to online
stores and campaigns. Bridgeline’s Unbound platform deeply
integrates Web Content Management, eCommerce, eMarketing, Social
Media management, and Web Analytics to help marketers deliver
digital experiences that attract, engage, nurture, and convert
their customers across all channels. Headquartered in Burlington,
Mass., Bridgeline has thousands of quality customers that range
from small- and medium-sized organizations to Fortune 1000
companies. To learn more, please visit www.bridgeline.com or call
(800) 603-9936.
Contact:Company ContactBridgeline Digital,
Inc.:Michael D. PrinnChief Financial
Officer(781)497-3016mprinn@bridgeline.com
|
|
|
|
|
|
|
|
|
|
BRIDGELINE DIGITAL, INC. |
RECONCILIATION OF GAAP TO NON-GAAP
RESULTS |
(Dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
March 31 |
|
March 31 |
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Reconciliation of GAAP net loss
to |
|
|
|
|
|
|
|
|
non-GAAP adjusted net loss: |
|
|
|
|
|
|
|
|
|
GAAP net loss |
|
$ |
(757 |
) |
|
$ |
(598 |
) |
|
$ |
(1,262 |
) |
|
$ |
(1,074 |
) |
|
Amortization of
intangible assets |
|
|
71 |
|
|
|
72 |
|
|
|
143 |
|
|
|
143 |
|
|
Stock-based
compensation |
|
|
122 |
|
|
|
127 |
|
|
|
247 |
|
|
|
272 |
|
|
Restructuring
charges |
|
|
181 |
|
|
|
217 |
|
|
|
181 |
|
|
|
248 |
|
|
Preferred stock
dividends |
|
|
77 |
|
|
|
68 |
|
|
|
152 |
|
|
|
136 |
|
|
Non-GAAP adjusted net
loss |
|
$ |
(306 |
) |
|
$ |
(114 |
) |
|
$ |
(539 |
) |
|
$ |
(275 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net loss per diluted share
to |
|
|
|
|
|
|
|
|
non-GAAP adjusted net loss per diluted share: |
|
|
|
|
|
|
|
|
|
GAAP net loss per
share |
|
$ |
(0.18 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.26 |
) |
|
Amortization of
intangible assets |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.03 |
|
|
|
0.03 |
|
|
Stock-based
compensation |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.06 |
|
|
|
0.07 |
|
|
Restructuring
charges |
|
|
0.04 |
|
|
|
0.05 |
|
|
|
0.04 |
|
|
|
0.06 |
|
|
Preferred stock
dividends |
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.04 |
|
|
|
0.03 |
|
|
Non-GAAP adjusted net
loss per diluted share |
|
$ |
(0.07 |
) |
|
$ |
(0.03 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.07 |
) |
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net loss to Adjusted
EBITDA: |
|
|
|
|
|
|
|
|
|
GAAP net loss |
|
$ |
(757 |
) |
|
$ |
(598 |
) |
|
$ |
(1,262 |
) |
|
$ |
(1,074 |
) |
|
Provision for income
tax |
|
|
- |
|
|
|
1 |
|
|
|
1 |
|
|
|
13 |
|
|
Interest expense,
net |
|
|
75 |
|
|
|
34 |
|
|
|
161 |
|
|
|
65 |
|
|
Amortization of
intangible assets |
|
|
71 |
|
|
|
72 |
|
|
|
143 |
|
|
|
143 |
|
|
Depreciation |
|
|
29 |
|
|
|
74 |
|
|
|
65 |
|
|
|
163 |
|
|
Restructuring
charges |
|
|
181 |
|
|
|
217 |
|
|
|
181 |
|
|
|
248 |
|
|
Other amortization |
|
|
17 |
|
|
|
27 |
|
|
|
33 |
|
|
|
66 |
|
|
Stock-based
compensation |
|
|
122 |
|
|
|
127 |
|
|
|
247 |
|
|
|
272 |
|
|
Preferred stock
dividends |
|
|
77 |
|
|
|
68 |
|
|
|
152 |
|
|
|
136 |
|
|
Adjusted EBITDA |
|
$ |
(185 |
) |
|
$ |
22 |
|
|
$ |
(279 |
) |
|
$ |
32 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net loss per diluted share
to |
|
|
|
|
|
|
|
|
Adjusted EBITDA per diluted share: |
|
|
|
|
|
|
|
|
|
GAAP net loss per
share |
|
$ |
(0.18 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.26 |
) |
|
Provision for income
tax |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Interest expense,
net |
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.02 |
|
|
Amortization of
intangible assets |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.03 |
|
|
|
0.03 |
|
|
Depreciation |
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.04 |
|
|
Restructuring
charges |
|
|
0.04 |
|
|
|
0.05 |
|
|
|
0.04 |
|
|
|
0.06 |
|
|
Other amortization |
|
|
- |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
Stock-based
compensation |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.06 |
|
|
|
0.07 |
|
|
Preferred stock
dividends |
|
|
0.02 |
|
|
|
0.01 |
|
|
|
0.04 |
|
|
|
0.03 |
|
|
Adjusted EBITDA per
diluted share |
|
$ |
(0.04 |
) |
|
$ |
0.01 |
|
|
$ |
(0.07 |
) |
|
$ |
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BRIDGELINE DIGITAL, INC. |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Dollars in thousands, except share and per share
data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
|
March 31 |
|
March 31 |
|
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenue: |
|
|
|
|
|
|
|
|
|
Digital
engagement services |
|
$ |
1,921 |
|
|
$ |
2,151 |
|
|
$ |
3,981 |
|
|
$ |
4,177 |
|
|
Subscription and perpetual licenses |
|
|
1,499 |
|
|
|
1,582 |
|
|
|
3,105 |
|
|
|
3,307 |
|
|
Managed
service hosting |
|
|
293 |
|
|
|
261 |
|
|
|
596 |
|
|
|
501 |
|
|
|
Total revenue |
|
|
3,713 |
|
|
|
3,994 |
|
|
|
7,682 |
|
|
|
7,985 |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue: |
|
|
|
|
|
|
|
|
|
Digital
engagement services |
|
|
1,292 |
|
|
|
1,144 |
|
|
|
2,689 |
|
|
|
2,272 |
|
|
Subscription and perpetual licenses |
|
|
513 |
|
|
|
499 |
|
|
|
993 |
|
|
|
995 |
|
|
Managed
service hosting |
|
|
86 |
|
|
|
73 |
|
|
|
166 |
|
|
|
144 |
|
|
|
Total cost of
revenue |
|
|
1,891 |
|
|
|
1,716 |
|
|
|
3,848 |
|
|
|
3,411 |
|
|
|
Gross profit |
|
|
1,822 |
|
|
|
2,278 |
|
|
|
3,834 |
|
|
|
4,574 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Sales and
marketing |
|
|
950 |
|
|
|
1,174 |
|
|
|
2,054 |
|
|
|
2,468 |
|
|
General and
administrative |
|
|
795 |
|
|
|
803 |
|
|
|
1,531 |
|
|
|
1,594 |
|
|
Research
and development |
|
|
408 |
|
|
|
422 |
|
|
|
815 |
|
|
|
782 |
|
|
Depreciation and amortization |
|
|
104 |
|
|
|
157 |
|
|
|
212 |
|
|
|
342 |
|
|
Restructuring charges |
|
|
181 |
|
|
|
169 |
|
|
|
181 |
|
|
|
200 |
|
|
|
Total operating
expenses |
|
|
2,438 |
|
|
|
2,725 |
|
|
|
4,793 |
|
|
|
5,386 |
|
Loss from
operations |
|
|
(616 |
) |
|
|
(447 |
) |
|
|
(959 |
) |
|
|
(812 |
) |
|
Interest
and other expense, net |
|
|
(64 |
) |
|
|
(82 |
) |
|
|
(150 |
) |
|
|
(113 |
) |
Loss before
income taxes |
|
|
(680 |
) |
|
|
(529 |
) |
|
|
(1,109 |
) |
|
|
(925 |
) |
|
Income
Taxes |
|
|
- |
|
|
|
1 |
|
|
|
1 |
|
|
|
13 |
|
Net
loss |
|
$ |
(680 |
) |
|
$ |
(530 |
) |
|
$ |
(1,110 |
) |
|
$ |
(938 |
) |
Dividends
on convertible preferred stock |
|
|
(77 |
) |
|
|
(68 |
) |
|
|
(152 |
) |
|
|
(136 |
) |
Net loss
applicable to common shareholders |
|
$ |
(757 |
) |
|
$ |
(598 |
) |
|
$ |
(1,262 |
) |
|
$ |
(1,074 |
) |
Net loss
per share attributable to common shareholders: |
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
$ |
(0.18 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.26 |
) |
Number of
weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic and
diluted |
|
|
4,227,101 |
|
|
|
4,180,818 |
|
|
|
4,213,660 |
|
|
|
4,096,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BRIDGELINE DIGITAL, INC. |
CONSOLIDATED BALANCE SHEETS |
(Dollars in thousands, except share and per share
data) |
(Unaudited) |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
March 31 |
|
September 30 |
|
|
|
|
2018 |
|
2017 |
Current
Assets: |
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
756 |
|
|
$ |
748 |
|
|
Accounts
receivable and unbilled revenues, net |
|
|
2,879 |
|
|
|
3,026 |
|
|
Prepaid
expenses and other current assets |
|
|
429 |
|
|
|
352 |
|
|
|
Total current
assets |
|
|
4,064 |
|
|
|
4,126 |
|
Property
and equipment, net |
|
|
98 |
|
|
|
209 |
|
Intangible
assets, net |
|
|
120 |
|
|
|
263 |
|
Goodwill |
|
|
12,641 |
|
|
|
12,641 |
|
Other
assets |
|
|
273 |
|
|
|
334 |
|
|
|
Total assets |
|
$ |
17,196 |
|
|
$ |
17,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts
payable |
|
$ |
1,787 |
|
|
$ |
1,241 |
|
|
Accrued
liabilities |
|
|
718 |
|
|
|
920 |
|
|
Debt,
current |
|
|
120 |
|
|
|
- |
|
|
Deferred
revenue |
|
|
1,193 |
|
|
|
1,466 |
|
|
|
Total current
liabilities |
|
|
3,818 |
|
|
|
3,627 |
|
Debt, net
of current portion |
|
|
2,591 |
|
|
|
2,500 |
|
Other long
term liabilities |
|
|
380 |
|
|
|
172 |
|
|
|
Total liabilities |
|
|
6,789 |
|
|
|
6,299 |
|
|
|
|
|
|
|
|
Commitments
and contingencies |
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
Convertible
preferred stock - $0.001 par value; 1,000,000
shares authorized; |
|
|
|
258,494 and
243,536 issued and outstanding |
|
|
- |
|
|
|
- |
|
|
Common
stock - $0.001 par value; 50,000,000 shares authorized; |
|
|
|
|
|
4,241,225
and 4,200,219 issued and outstanding |
|
|
4 |
|
|
|
4 |
|
|
Additional
paid-in-capital |
|
|
66,265 |
|
|
|
65,869 |
|
|
Accumulated
deficit |
|
|
(55,511 |
) |
|
|
(54,249 |
) |
|
Accumulated
other comprehensive loss |
|
|
(351 |
) |
|
|
(350 |
) |
|
|
Total stockholders'
equity |
|
|
10,407 |
|
|
|
11,274 |
|
|
|
Total liabilities and
stockholders' equity |
|
$ |
17,196 |
|
|
$ |
17,573 |
|
|
|
|
|
|
|
|
Bridgeline Digital (NASDAQ:BLIN)
Historical Stock Chart
From Aug 2024 to Sep 2024
Bridgeline Digital (NASDAQ:BLIN)
Historical Stock Chart
From Sep 2023 to Sep 2024