Bridgeline Digital, Inc. (NASDAQ: BLIN), a leader in cloud-based
digital experience software, is pleased to provide the following
corporate update as it closed its fiscal year.
“I’m happy to report that our fourth quarter exceeded
expectations in revenue, profit, and customer acquisitions,” said
Ari Kahn, Bridgeline’s President and Chief Executive Officer. “Our
strong fourth quarter revenue positions the business well to
execute its growth strategy for 2021.”
Bridgeline’s fiscal year concluded on September 30, 2020. The
Company expects to meet the fourth quarter guidance it provided in
its previous earnings call and in the September Investor
Presentation for:
- revenue growth
- increased gross margin
- positive operating income and adjusted EBITDA
Bridgeline won more new customers in its fourth quarter than it
did in its third quarter, and its third quarter won more new
customers than the first two quarters combined.
The Company’s Celebros Search App performed strongest with
several sales each month of the fourth quarter. These App sales
leveraged Bridgeline’s new touchless sales strategy, winning new
customers through eCommerce marketplaces (i.e. Shopify and
Salesforce) with greater ease and faster sales cycles. Apps are a
major growth area for Bridgeline, a key part of the business’s
growth strategy for 2021 and has contributed to higher license to
services ratios.
In the fourth quarter, the Company also won multiple Enterprise
Platform customers including a global franchise who committed to a
multi-year agreement valued at more than $650,000 to power more
than 200 websites with Bridgeline’s Unbound Franchise Platform.
Bridgeline ended its fiscal year with a strong balance sheet,
with its only debt being a $1M PPP loan from the SBA that is
expected to be forgiven. The Company’s cap table also
improved in its 2020 fiscal year with all dividend yielding
preferred stock converting to common stock at $1.75/share.
Looking forward to 2021, Bridgeline intends to further invest in
its touchless sales and marketing strategy for Apps by hiring more
salespeople and investing in lead generating marketing activities.
It will also release new Apps leveraging the technology base that
powers its Platform software.
The Company does not require any capital for operations and
expects its cash balance to grow thanks to large collections due in
the first quarter of its 2021 fiscal year, from existing customer’s
annual subscription contracts.
Bridgeline continues to evaluate opportunities to acquire
accretive, small software companies that sell Apps to provide added
value to its growing customer base and drive cross-sell
opportunities. In 2019, Bridgeline made two acquisitions that have
helped it grow and achieve operating profit. Further, growth
through acquisition is part of Bridgeline’s strategy in 2021.
Bridgeline has engaged a team to find additional software companies
for it to acquire. The companies Bridgeline evaluates have $2M -
$4M in annual recurring revenue with compatible “plug-n-play” Apps
in the marketing technology software sector. Bridgeline evaluates
several opportunities monthly and is careful to select candidates
who fulfill its strategic and financial goals.
Bridgeline looks forward to continued success in 2021 to deliver
shareholder value, customer success, and exciting technical
innovations.
Bridgeline’s September 2020 Investor Presentation can be found
online at:
https://www.bridgeline.com/file%20library/investor%20information/blin-01-sept-2020-investor-presentation.pdf.
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 in this press release and include statements
regarding the intent, belief or current expectations of Bridgeline
Digital, Inc. 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 COVID
– 19 pandemic and related public health measures that may affect
our financial results; business operations and the business of our
customers, suppliers and partners; our ability to retain and
upgrade current customers, increasing our recurring revenue, our
ability to attract new customers, our revenue growth rate; our
history of net loss and our ability to achieve or maintain
profitability, our liability for any unauthorized access to our
data or our users’ content, including through privacy and data
security breaches; any decline in demand for our platform or
products; changes in the interoperability of our platform across
devices, operating systems, and third party applications that we do
no control; competition in our markets; our ability to respond to
rapid technological changes, extend our platform, develop new
features or products, or gain market acceptance for such new
features or products, particularly in light of potential
disruptions to the productivity of our employees resulting from
remote work; our ability to manage our growth or plan for future
growth, and our acquisition of other businesses and the potential
of such acquisitions to require significant management attention,
disrupt our business, or dilute stockholder value; the volatility
of the market price of our common stock, the ability to maintain
our listing on the NASDAQ Capital Market, 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. Bridgeline Digital, Inc. assumes no
obligation to, and does not currently intend to, update any such
forward-looking statements after the date of this release, except
as required by applicable law.
About Bridgeline Digital
Bridgeline Digital, The Digital Engagement Company, helps
customers maximize the performance of their omni-channel digital
experience from websites and intranets to online stores and
campaigns. Bridgeline’s Unbound platform is a Digital Experience
Platform (DXP) that deeply integrates Web Content Management,
eCommerce, Marketing Automation, Site Search, Authenticated
Portals, Social Media Management, Translation, Locator Pages and
Web Analytics to help the goal of assisting marketers to help
organizations deliver digital experiences that attract, engage,
nurture and convert their customers across all channels and
streamline business operations. OrchestraCMS is the
only content and digital experience platform built 100% native on
Salesforce. OrchestraCMS helps Salesforce create digital
experiences for their customers and partners; combining content
with business data, processes and applications across multiply
channels and device including Salesforce Communities, social media,
portals, intranets, websites, applications and services. Celebros
Search is a commerce oriented, site search product that provides
for Natural Language Processing with artificial intelligence (AI)
to present very relevant search results in seven languages.
Headquartered in Woburn, MA., Bridgeline customers 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:
Jeremy LaDuqueEVP of MarketingBridgeline Digital,
Inc.press@bridgeline.com
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