Bridgeline Digital, Inc. (NASDAQ: BLIN), The Digital Engagement
Company™, today announced financial results for its fiscal fourth
quarter and fiscal year ended September 30, 2018.
“Bridgeline has partnered with key
customers to expand its product line to access global markets and
position itself as a leader in the multinational B2B eCommerce
space,” said Ari Kahn, Bridgeline’s President and Chief Executive
Officer. “These investments, along with significant wins in
the manufacturing category, position us for growth 2019.
Furthermore, in the most recent quarter, Bridgeline initiated
strategic conversations that may lead to multi-national growth
in our customer base where our eCommerce investments can be
cross-sold for accelerated growth. Additional strategic
opportunities will be a key focus in 2019.”
Fourth Quarter Summary:
- SaaS revenue was $1.1 million in the fourth quarter of fiscal
2018, compared to $1.4 million in the fourth quarter of fiscal
2017.
- Hosting revenue was $206,000 in the fourth quarter of fiscal
2018, compared to $263,000 in the fourth quarter of fiscal
2017.
- Recurring revenue was $1.4 million in the fourth quarter of
fiscal 2018, compared to $1.8 million in the fourth quarter of
fiscal 2017.
- Subscription and perpetual license revenue was $1.2 million in
the fourth quarter of fiscal 2018, compared to $1.8 million in the
fourth quarter of fiscal 2017.
- Operating expenses (excluding a goodwill impairment charge of
$243,000) were reduced by $534,000, or 20.8% to $2.0 million in the
fourth quarter of fiscal 2018, from $2.6 million in the fourth
quarter of fiscal 2017.
Year to Date Summary:
- SaaS revenue was $5.1 million in fiscal 2018, compared to $5.5
million in fiscal 2017.
- Hosting revenue remained constant at $1.0 million in both
fiscal 2018 and fiscal 2017.
- Recurring revenue was $6.6 million in fiscal 2018, compared to
$7.1 million in fiscal 2017.
- Subscription and perpetual license revenue was $5.6 million in
fiscal 2018, compared to $6.8 million in fiscal 2017.
- Operating expenses (excluding a goodwill impairment charge of
$4.9 million) were reduced by $1.6 million, or 14.9% to $9.0
million in fiscal 2018, from $10.5 million in fiscal 2017.
Financial Results
Fourth Quarter
Revenue for the fourth quarter of fiscal 2018
was $2.8 million, compared to $4.2 million in the fourth quarter of
fiscal 2017. Services revenue was $1.4 million in the fourth
quarter of fiscal 2018, compared to $2.2 million in the fourth
quarter of fiscal 2017. SaaS revenue was $1.1 million in the fourth
quarter of fiscal 2018, compared to $1.4 million in the fourth
quarter of fiscal 2017. Hosting revenue was $206,000 in the fourth
quarter of fiscal 2018, compared to $263,000 in the fourth quarter
of fiscal 2017. Recurring revenue was $1.4 million in the fourth
quarter of fiscal 2018, compared to $1.8 million in the fourth
quarter of fiscal 2017. Subscription and perpetual license revenue
was $1.2 million in the fourth quarter of fiscal 2018, compared to
$1.8 million in the fourth quarter of fiscal 2017.
Operating expenses (excluding goodwill
impairment charge of $243,000) were reduced by $534,000, or 20.8%
to $2.0 million in the fourth quarter of fiscal 2018, compared to
$2.6 million in the fourth quarter of fiscal 2017, reflecting
management’s ongoing expense control initiatives. Loss from
Operations was $842,000 in the fourth quarter of fiscal 2018,
compared to $250,000 in the fourth quarter of fiscal 2017. The
operating loss of $842,000 in the fourth quarter of fiscal 2018 is
inclusive of a goodwill impairment charge of $243,000.
Net loss, including a goodwill impairment charge
of $243,000, was $947,000 in the fourth quarter of fiscal 2018,
compared to a net loss of $332,000 in the fourth quarter of fiscal
2017.
Adjusted EBITDA was a loss of $414,000 in the
fourth quarter of fiscal 2018, compared to income of $41,000 in the
fourth quarter of fiscal 2017.
Year to Date
Revenue in fiscal 2018 was $13.6 million,
compared to $16.3 million in fiscal 2017. SaaS revenue was $5.1
million in fiscal 2018, compared to $5.5 million in fiscal 2017.
Hosting revenue remained constant at $1.0 million in both fiscal
2018 and fiscal 2017. Recurring revenue was $6.6 million in fiscal
2018, compared to $7.1 million in fiscal 2017. Subscription and
perpetual license revenue was $5.6 million in fiscal 2018, compared
to $6.8 million in fiscal 2017.
Operating expenses (excluding a goodwill
impairment charge of $4.9 million) were reduced by $1.6 million, or
14.9% to $9.0 million in fiscal 2018, compared to $10.5 million in
fiscal 2017, reflecting management’s ongoing expense control
initiatives. Loss from Operations was $7.0 million in fiscal 2018,
compared to $1.4 million in fiscal 2017. The operating loss
of $7.0 million in fiscal 2018 is inclusive of a goodwill
impairment charge of $4.9 million.
Net loss, including a goodwill impairment charge
of $4.9 million, was $7.2 million in fiscal 2018, compared to a net
loss of $1.6 million in fiscal 2017.
Adjusted EBITDA was a loss of $1.0 million in
fiscal 2018, compared to income of $122,000 in fiscal 2017.
Conference Call Information
Bridgeline Digital will host a conference call
to discuss fourth quarter and fiscal year ended 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, goodwill impairment charges,
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, goodwill
impairment charges, restructuring charges, loss on disposal of
fixed assets, 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 full
digital experience from websites and intranets to eCommerce
experiences. Bridgeline’s Unbound platform is a Digital Experience
Platform that deeply integrates Web Content Management, eCommerce,
eMarketing, Social Media management, and Web Analytics (Insights)
with the goal of assisting marketers to deliver exceptional 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.Carole A. TynerChief Financial Officer(781)
497-3020ctyner@bridgeline.com
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BRIDGELINE DIGITAL, INC. |
RECONCILIATION OF GAAP TO NON-GAAP
RESULTS |
(Dollars in thousands, except per share data) |
|
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|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
September 30 |
|
September 30 |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Reconciliation
of GAAP net loss to |
|
|
|
|
|
|
|
|
non-GAAP
adjusted net loss: |
|
|
|
|
|
|
|
|
GAAP net
loss |
|
$ |
(1,026 |
) |
|
$ |
(406 |
) |
|
$ |
(7,529 |
) |
|
$ |
(1,883 |
) |
Amortization of intangible assets |
|
|
30 |
|
|
|
71 |
|
|
|
242 |
|
|
|
285 |
|
Goodwill
impairment charge |
|
|
243 |
|
|
|
- |
|
|
|
4,859 |
|
|
|
- |
|
Stock-based compensation |
|
|
120 |
|
|
|
126 |
|
|
|
492 |
|
|
|
559 |
|
Restructuring charges |
|
|
1 |
|
|
|
37 |
|
|
|
127 |
|
|
|
286 |
|
Preferred
stock dividends |
|
|
79 |
|
|
|
74 |
|
|
|
310 |
|
|
|
281 |
|
Non-GAAP
adjusted net loss |
|
$ |
(553 |
) |
|
$ |
(98 |
) |
|
$ |
(1,499 |
) |
|
$ |
(472 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of GAAP net loss per diluted share to |
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|
|
|
non-GAAP
adjusted net loss per diluted share: |
|
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|
|
|
|
GAAP net
loss per share |
|
$ |
(0.24 |
) |
|
$ |
(0.10 |
) |
|
$ |
(1.78 |
) |
|
$ |
(0.45 |
) |
Amortization of intangible assets |
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.06 |
|
|
|
0.07 |
|
Goodwill
impairment charge |
|
|
0.05 |
|
|
|
- |
|
|
|
1.15 |
|
|
|
- |
|
Stock-based compensation |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.12 |
|
|
|
0.13 |
|
Restructuring charges |
|
|
- |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.07 |
|
Preferred
stock dividends |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.07 |
|
|
|
0.07 |
|
Non-GAAP
adjusted net loss per diluted share |
|
$ |
(0.13 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.11 |
) |
|
|
|
|
|
|
|
|
|
Reconciliation
of GAAP net loss to Adjusted EBITDA: |
|
|
|
|
|
|
|
|
GAAP net
loss |
|
$ |
(1,026 |
) |
|
$ |
(406 |
) |
|
$ |
(7,529 |
) |
|
$ |
(1,883 |
) |
Provision
for income tax |
|
|
(14 |
) |
|
|
3 |
|
|
|
(3 |
) |
|
|
16 |
|
Interest
expense, net |
|
|
119 |
|
|
|
34 |
|
|
|
244 |
|
|
|
128 |
|
Amortization of intangible assets |
|
|
30 |
|
|
|
71 |
|
|
|
242 |
|
|
|
285 |
|
Goodwill
impairment charge |
|
|
243 |
|
|
|
- |
|
|
|
4,859 |
|
|
|
- |
|
Depreciation |
|
|
20 |
|
|
|
41 |
|
|
|
105 |
|
|
|
256 |
|
Loss on
disposal of fixed assets |
|
|
- |
|
|
|
45 |
|
|
|
60 |
|
|
|
94 |
|
Restructuring charges |
|
|
1 |
|
|
|
37 |
|
|
|
127 |
|
|
|
286 |
|
Other
amortization |
|
|
14 |
|
|
|
16 |
|
|
|
66 |
|
|
|
100 |
|
Stock-based compensation |
|
|
120 |
|
|
|
126 |
|
|
|
492 |
|
|
|
559 |
|
Preferred
stock dividends |
|
|
79 |
|
|
|
74 |
|
|
|
310 |
|
|
|
281 |
|
Adjusted
EBITDA |
|
$ |
(414 |
) |
|
$ |
41 |
|
|
$ |
(1,027 |
) |
|
$ |
122 |
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
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Reconciliation
of GAAP net loss per diluted share
to |
|
|
|
|
|
|
|
|
Adjusted EBITDA
per diluted share: |
|
|
|
|
|
|
|
|
GAAP net
loss per share |
|
$ |
(0.24 |
) |
|
$ |
(0.10 |
) |
|
$ |
(1.78 |
) |
|
$ |
(0.45 |
) |
Provision
for income tax |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Interest
expense, net |
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.06 |
|
|
|
0.03 |
|
Amortization of intangible assets |
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.06 |
|
|
|
0.07 |
|
Goodwill
impairment charge |
|
|
0.05 |
|
|
|
- |
|
|
|
1.15 |
|
|
|
- |
|
Depreciation |
|
|
- |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.06 |
|
Loss on
disposal of fixed assets |
|
|
- |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.02 |
|
Restructuring charges |
|
|
- |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.07 |
|
Other
amortization |
|
|
- |
|
|
|
- |
|
|
|
0.02 |
|
|
|
0.03 |
|
Stock-based compensation |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.12 |
|
|
|
0.13 |
|
Preferred
stock dividends |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.07 |
|
|
|
0.07 |
|
Adjusted
EBITDA per diluted share |
|
$ |
(0.10 |
) |
|
$ |
0.01 |
|
|
$ |
(0.24 |
) |
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BRIDGELINE DIGITAL, INC. |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Dollars in thousands, except share and per share
data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
September 30 |
|
September 30 |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Revenue: |
|
|
|
|
|
|
|
|
Digital
engagement services |
|
$ |
1,355 |
|
|
$ |
2,201 |
|
|
$ |
6,914 |
|
|
$ |
8,498 |
|
Subscription and perpetual licenses |
|
|
1,242 |
|
|
|
1,770 |
|
|
|
5,609 |
|
|
|
6,788 |
|
Managed
service hosting |
|
|
206 |
|
|
|
263 |
|
|
|
1,045 |
|
|
|
1,007 |
|
Total
revenue |
|
|
2,803 |
|
|
|
4,234 |
|
|
|
13,568 |
|
|
|
16,293 |
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
Digital
engagement services |
|
|
807 |
|
|
|
1,342 |
|
|
|
4,473 |
|
|
|
4,911 |
|
Subscription and perpetual licenses |
|
|
508 |
|
|
|
501 |
|
|
|
2,011 |
|
|
|
1,969 |
|
Managed
service hosting |
|
|
51 |
|
|
|
71 |
|
|
|
264 |
|
|
|
280 |
|
Total
cost of revenue |
|
|
1,366 |
|
|
|
1,914 |
|
|
|
6,748 |
|
|
|
7,160 |
|
Gross
profit |
|
|
1,437 |
|
|
|
2,320 |
|
|
|
6,820 |
|
|
|
9,133 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Sales and
marketing |
|
|
906 |
|
|
|
1,147 |
|
|
|
3,951 |
|
|
|
4,807 |
|
General
and administrative |
|
|
696 |
|
|
|
861 |
|
|
|
2,852 |
|
|
|
3,256 |
|
Research
and development |
|
|
383 |
|
|
|
412 |
|
|
|
1,604 |
|
|
|
1,587 |
|
Depreciation and amortization |
|
|
51 |
|
|
|
113 |
|
|
|
356 |
|
|
|
582 |
|
Goodwill
impairment |
|
|
243 |
|
|
|
- |
|
|
|
4,859 |
|
|
|
- |
|
Restructuring charges |
|
|
- |
|
|
|
37 |
|
|
|
187 |
|
|
|
286 |
|
Total
operating expenses |
|
|
2,279 |
|
|
|
2,570 |
|
|
|
13,809 |
|
|
|
10,518 |
|
Loss from
operations |
|
|
(842 |
) |
|
|
(250 |
) |
|
|
(6,989 |
) |
|
|
(1,385 |
) |
Interest
and other expense, net |
|
|
(119 |
) |
|
|
(79 |
) |
|
|
(233 |
) |
|
|
(201 |
) |
Loss before income
taxes |
|
|
(961 |
) |
|
|
(329 |
) |
|
|
(7,222 |
) |
|
|
(1,586 |
) |
(Benefit)/provision for income taxes |
|
|
(14 |
) |
|
|
3 |
|
|
|
(3 |
) |
|
|
16 |
|
Net loss |
|
$ |
(947 |
) |
|
$ |
(332 |
) |
|
$ |
(7,219 |
) |
|
$ |
(1,602 |
) |
Dividends on
convertible preferred stock |
|
|
(79 |
) |
|
|
(74 |
) |
|
|
(310 |
) |
|
|
(281 |
) |
Net loss applicable to
common shareholders |
|
$ |
(1,026 |
) |
|
$ |
(406 |
) |
|
$ |
(7,529 |
) |
|
$ |
(1,883 |
) |
Net loss per share
attributable to common shareholders: |
|
|
|
|
|
|
|
|
Basic and
diluted |
|
$ |
(0.24 |
) |
|
$ |
(0.10 |
) |
|
$ |
(1.78 |
) |
|
$ |
(0.45 |
) |
Number of weighted
average shares outstanding: |
|
|
|
|
|
|
|
|
Basic and
diluted |
|
|
4,241,225 |
|
|
|
4,200,119 |
|
|
|
4,227,442 |
|
|
|
4,147,140 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BRIDGELINE DIGITAL, INC. |
CONSOLIDATED BALANCE SHEETS |
(Dollars in thousands, except share and per share
data) |
(Unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
September 30 |
|
September 30 |
|
|
2018 |
|
2017 |
Current Assets: |
|
|
|
|
Cash and cash
equivalents |
|
$ |
644 |
|
|
$ |
748 |
|
Accounts
receivable and unbilled revenues, net |
|
|
1,721 |
|
|
|
3,026 |
|
Prepaid
expenses and other current assets |
|
|
473 |
|
|
|
352 |
|
Total
current assets |
|
|
2,838 |
|
|
|
4,126 |
|
Property and equipment,
net |
|
|
80 |
|
|
|
209 |
|
Intangible assets,
net |
|
|
20 |
|
|
|
263 |
|
Goodwill |
|
|
7,782 |
|
|
|
12,641 |
|
Other assets |
|
|
280 |
|
|
|
334 |
|
Total
assets |
|
$ |
11,000 |
|
|
$ |
17,573 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
1,577 |
|
|
$ |
1,241 |
|
Accrued
liabilities |
|
|
580 |
|
|
|
920 |
|
Debt,
current portion |
|
|
1,017 |
|
|
|
- |
|
Deferred
revenue |
|
|
594 |
|
|
|
1,466 |
|
Total
current liabilities |
|
|
3,768 |
|
|
|
3,627 |
|
Debt, net of current
portion |
|
|
2,574 |
|
|
|
2,500 |
|
Other long term
liabilities |
|
|
234 |
|
|
|
172 |
|
Total
liabilities |
|
|
6,576 |
|
|
|
6,299 |
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
Stockholders'
equity: |
|
|
|
|
Preferred
stock - $0.001 par value; 1,000,000 shares authorized, 264,000
designated as Series A Preferred stock; |
|
|
- |
|
|
|
- |
|
264,000
and 262,364 at September 30, 2018 and 243,536 and 241,900 at
September 30, 2017 issued and outstanding (liquidation preference
$2,624 at September 30, 2018) |
|
|
|
|
Common
stock - $0.001 par value; 50,000,000 shares authorized; |
|
|
5 |
|
|
|
4 |
|
4,241,225
at September 30, 2018 and 4,200,119 at September 30, 2017, issued
and outstanding |
|
|
|
|
Additional paid-in-capital |
|
|
66,548 |
|
|
|
65,869 |
|
Accumulated deficit |
|
|
(61,778 |
) |
|
|
(54,249 |
) |
Accumulated other comprehensive loss |
|
|
(351 |
) |
|
|
(350 |
) |
Total
stockholders' equity |
|
|
4,424 |
|
|
|
11,274 |
|
Total
liabilities and stockholders' equity |
|
$ |
11,000 |
|
|
$ |
17,573 |
|
|
|
|
|
|
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