FY 2022 Revenue Increases 27% Versus Prior Year
FY 2022 Subscription and Licenses Revenue Increases 36% Versus Prior Year
WOBURN, Mass., Dec. 20, 2022 (GLOBE NEWSWIRE) -- Bridgeline Digital, Inc. (NASDAQ: BLIN ), a leading SaaS marketing technology provider, today announced financial results for its fiscal fourth quarter ended September 30, 2022.
“Bridgeline continues to grow with an increase of 27% in annual revenue compared to the prior year,” said Ari Kahn, Bridgeline’s President and Chief Executive Officer. “Our partner network is driving new customer wins, and in addition to our ISV partners such as BigCommerce, Kentico, Optimizely, and Sitefinity, we have added several system integrators including Niteco and Thanx Media to drive more sales.”
Financial Highlights – Fourth Fiscal Quarter of Fiscal Year 2022
Financial Highlights – Fiscal Year 2022
Business Highlights
Corporate Highlights
New Customer Highlights
Partner Highlights
Financial Results - Fourth Fiscal Quarter of Fiscal Year 2022
Financial Results – Year-to-Date Twelve Months of Fiscal Year 2022
Conference Call:
Bridgeline Digital, Inc. will hold a conference call today, December 20, 2022, at 4:30 p.m. Eastern Time to discuss these results. The Company's President and Chief Executive Officer, Ari Kahn, and Chief Financial Officer, Thomas Windhausen, will host the call, followed by a question-and-answer period.
The details of the conference call are as follows:
Bridgeline Digital Fourth Quarter 2022 Earnings Call
Tuesday, December 20, 2022, at 4:30 p.m. ET
https://register.vevent.com/register/BI40734be2e87c439597c84167873d6fc6
Participants can register for the conference call using the above URL above.
Once registered, participants will receive dial-in numbers and unique PIN numbers.
Replays of the conference call will be available through the following link:
https://edge.media-server.com/mmc/p/k5d5qaxc
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 the United States ("GAAP").
Non-GAAP adjusted net income (loss) and Non-GAAP adjusted net 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, 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. 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 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 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 not 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 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:
Bridgeline Digital, Inc.
Thomas R. Windhausen
Chief Financial Officer
twindhausen@bridgeline.com
BRIDGELINE DIGITAL, INC. | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(in thousands, except share and per share data) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Net revenue: | |||||||||||||||
Digital engagement services | $ | 767 | $ | 753 | $ | 3,259 | $ | 3,296 | |||||||
Subscription and perpetual licenses | 3,443 | 3,351 | 13,560 | 9,963 | |||||||||||
Total net revenue | 4,210 | 4,104 | 16,819 | 13,259 | |||||||||||
Cost of revenue: | |||||||||||||||
Digital engagement services | 406 | 472 | 1,759 | 1,743 | |||||||||||
Subscription and perpetual licenses | 826 | 844 | 3,358 | 2,790 | |||||||||||
Total cost of revenue | 1,232 | 1,316 | 5,117 | 4,533 | |||||||||||
Gross profit | 2,978 | 2,788 | 11,702 | 8,726 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | 1,352 | 997 | 5,232 | 2,726 | |||||||||||
General and administrative | 927 | 678 | 3,387 | 2,359 | |||||||||||
Research and development | 722 | 934 | 3,217 | 2,387 | |||||||||||
Depreciation and amortization | 386 | 425 | 1,599 | 1,202 | |||||||||||
Restructuring and acquisition related expenses | - | 373 | 164 | 1,235 | |||||||||||
Total operating expenses | 3,387 | 3,407 | 13,599 | 9,909 | |||||||||||
Loss from operations | (409 | ) | (619 | ) | (1,897 | ) | (1,183 | ) | |||||||
Change in fair value of contingent consideration, interest expense and other, net | (10 | ) | (876 | ) | 417 | (883 | ) | ||||||||
Government grant income | - | - | - | 88 | |||||||||||
Change in fair value of warrant liabilities | (38 | ) | 135 | 3,655 | (5,885 | ) | |||||||||
Income (loss) before income taxes | (457 | ) | (1,360 | ) | 2,175 | (7,863 | ) | ||||||||
Provision for (benefit from) income taxes | 18 | 1 | 30 | (1,174 | ) | ||||||||||
Net income (loss) | $ | (475 | ) | $ | (1,361 | ) | $ | 2,145 | $ | (6,689 | ) | ||||
Deemed dividend on convertible preferred stock | - | (2,015 | ) | - | (2,015 | ) | |||||||||
Net income (loss) attributable to common shareholders | $ | (475 | ) | $ | (3,376 | ) | $ | 2,145 | $ | (8,704 | ) | ||||
Net income (loss) per share attributable to common shareholders: | |||||||||||||||
Basic | $ | (0.05 | ) | $ | (0.40 | ) | $ | 0.21 | $ | (1.47 | ) | ||||
Diluted | $ | (0.05 | ) | $ | (0.40 | ) | $ | 0.20 | $ | (1.47 | ) | ||||
Number of weighted average shares outstanding: | |||||||||||||||
Basic | 10,320,906 | 8,381,657 | 10,232,862 | 5,935,981 | |||||||||||
Diluted | 10,320,906 | 8,381,657 | 10,366,907 | 5,935,981 | |||||||||||
BRIDGELINE DIGITAL, INC. | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands, except share and per share data) | |||||||
ASSETS | September 30 | September 30 | |||||
2022 | 2021 | ||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 2,856 | $ | 8,852 | |||
Accounts receivable, net | 1,182 | 1,370 | |||||
Prepaid expenses and other current assets | 242 | 196 | |||||
Total current assets | 4,280 | 10,418 | |||||
Property and equipment, net | 268 | 252 | |||||
Operating lease assets | 589 | 481 | |||||
Intangible assets, net | 6,268 | 7,755 | |||||
Goodwill | 15,985 | 15,985 | |||||
Other assets | 123 | 76 | |||||
Total assets | $ | 27,513 | $ | 34,967 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 429 | $ | 732 | |||
Current portion of operating lease liabilities | 199 | 161 | |||||
Accounts payable | 972 | 974 | |||||
Accrued liabilities | 995 | 908 | |||||
Purchase price and contingent consideration payable, current portion | 250 | 3,463 | |||||
Deferred revenue | 1,943 | 2,097 | |||||
Total current liabilities | 4,788 | 8,335 | |||||
Long-term debt, net of current portion | 588 | 1,197 | |||||
Operating lease liabilities, net of current portion | 390 | 320 | |||||
Purchase price and contingent consideration payable, net of current portion | - | 2,360 | |||||
Warrant liabilities | 749 | 4,404 | |||||
Other long-term liabilities | 646 | 774 | |||||
Total liabilities | 7,161 | 17,390 | |||||
Commitments and contingencies | |||||||
Stockholders' equity: | |||||||
Preferred stock - $0.001 par value; 1,000,000 shares authorized; | |||||||
Series C Convertible Preferred stock: 11,000 shares authorized; 350 shares issued and outstanding at September 30, 2022 and 2021 | - | - | |||||
Series D Convertible Preferred Stock: 4,200 shares authorized; no shares issued and outstanding at September 30, 2022 and 2021 | - | - | |||||
Common stock - $0.001 par value; 50,000,000 shares authorized; | |||||||
10,417,609 shares at September 30, 2022 and 10,187,128 shares at September 30, 2021, issued and outstanding | 10 | 10 | |||||
Additional paid-in-capital | 100,704 | 100,207 | |||||
Accumulated deficit | (80,142 | ) | (82,287 | ) | |||
Accumulated other comprehensive loss | (220 | ) | (353 | ) | |||
Total stockholders' equity | 20,352 | 17,577 | |||||
Total liabilities and stockholders' equity | $ | 27,513 | $ | 34,967 | |||
BRIDGELINE DIGITAL, INC. | |||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP RESULTS | |||||||||||||||
(in thousands, except per share data) | |||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||
Reconciliation of GAAP net income (loss) to Adjusted EBITDA: | |||||||||||||||
GAAP net income (loss) | $ | (475 | ) | $ | (1,361 | ) | $ | 2,145 | $ | (6,689 | ) | ||||
Provision for (benefit from) income tax | 18 | 1 | 30 | (1,174 | ) | ||||||||||
Change in fair value of contingent consideration, interest expense and other, net | 10 | 876 | (417 | ) | 883 | ||||||||||
Government grant income | - | - | - | (88 | ) | ||||||||||
Change in fair value of warrant liabilities | 38 | (135 | ) | (3,655 | ) | 5,885 | |||||||||
Amortization of intangible assets | 336 | 404 | 1,487 | 1,130 | |||||||||||
Depreciation and other amortization | 59 | 21 | 121 | 72 | |||||||||||
Restructuring and acquisition-related expenses | - | 373 | 164 | 1,235 | |||||||||||
Stock-based compensation | 114 | 55 | 321 | 188 | |||||||||||
Adjusted EBITDA | $ | 100 | $ | 234 | $ | 196 | $ | 1,442 | |||||||
Reconciliation of GAAP net income (loss) to non-GAAP adjusted net income (loss): | |||||||||||||||
GAAP net income (loss) | $ | (475 | ) | $ | (1,361 | ) | $ | 2,145 | $ | (6,689 | ) | ||||
Amortization of intangible assets | 336 | 404 | 1,487 | 1,130 | |||||||||||
Change in fair value of warrant liabilities | 38 | (135 | ) | (3,655 | ) | 5,885 | |||||||||
Restructuring and acquisition-related charges | - | 373 | 164 | 1,235 | |||||||||||
Stock-based compensation | 114 | 55 | 321 | 188 | |||||||||||
Non-GAAP adjusted net income (loss) | $ | 13 | $ | (664 | ) | $ | 462 | $ | 1,749 | ||||||
Reconciliation of GAAP net earnings (loss) per diluted share to non-GAAP adjusted net earnings (loss) per diluted share: | |||||||||||||||
GAAP net income (loss) | $ | (0.05 | ) | $ | (0.16 | ) | $ | 0.21 | $ | (1.13 | ) | ||||
Amortization of intangible assets | 0.03 | 0.05 | 0.14 | 0.19 | |||||||||||
Change in fair value of warrant liabilities | 0.00 | (0.02 | ) | (0.35 | ) | 0.99 | |||||||||
Restructuring and acquisition-related expenses | - | 0.04 | 0.02 | 0.21 | |||||||||||
Stock-based compensation | 0.01 | 0.01 | 0.03 | 0.03 | |||||||||||
Non-GAAP adjusted net earnings (loss) per diluted share | $ | 0.00 | $ | (0.08 | ) | $ | 0.04 | $ | 0.29 | ||||||