WOBURN, Mass., Dec. 23, 2020 (GLOBE NEWSWIRE) -- Bridgeline Digital, Inc. (NASDAQ: BLIN), The Digital Engagement Company, today announced financial results for its fiscal fourth quarter ended September 30, 2020.

“In our fourth quarter, recurring revenue grew 20% and we delivered another quarter of strong profits,” said Ari Kahn, Bridgeline’s President and Chief Executive Officer. “In addition to our App Sales, which have hit a new high, we won multiple Enterprise Platform customers including a global franchise who committed to a multi-year agreement valued at more than $650,000 to power 200 websites with Bridgeline’s Unbound Franchise software.”

“Bridgeline continues to evaluate opportunities to acquire synergistic software companies that provide added value to our growing customer base and drive cross-selling opportunities,” continued Mr. Kahn. “The company evaluates several opportunities every month and is careful to select candidates who fulfill our strategic and financial goals.”

Fourth Quarter Summary:

• Total revenue, which is comprised of License and Services revenue, was consistent at $2.7 million for the quarters ended September 30, 2020 and 2019. License revenue grew by 20% and Services decreased by 31%.
• Subscription and perpetual licenses revenue, which is comprised of SaaS licenses, maintenance and hosting revenue and perpetual license revenue increased 20% to $2 million for the quarter ended September 30, 2020, from $1.7 million for the same period in 2019. As a percentage of total revenue, Subscription and perpetual license revenue increased 12% to 74% of total revenue for the quarter ended September 30, 2020, compared to 62% for the same period in 2019.
• Services revenue decreased $314,000 to $701,000 for the quarter ended September 30, 2020 as compared to $1 million for the same period in 2019. As a percentage of total revenue, Services revenue accounted for 26% of total revenue for the quarter ended September 30, 2020, compared to 38% for the same period in 2019.
• Gross profit increased 16% or $253,000 to $1.8 million for the quarter ended September 30, 2020 as compared to $1.6 million for the same period in 2019. Cost of revenue decreased 21% or $236,000 to $885,000 for the quarter ended September 30, 2020 compared to $1.1 million for the same period in 2019. Gross margin increased to 67% for the quarter ended September 30, 2020, compared to 58% for the same period in 2019. Subscription and perpetual licenses gross margin were 76% for three months ended September 30, 2020 as compared to 59% for the same period in 2019. Services gross margin were 43% for the three months ended September 30, 2020 as compared to 57% for the same period in 2019.
• Operating expenses decreased 46% or $1.4 million to $1.7 million for the quarter ended September 30, 2020 from $3.1 million for the same period in 2019. Included within the quarterly totals as of September 30, 2020 are the net benefits and overall efficiencies of the previously announced reduction of our U.S. and Canada operations by eliminating redundancies and combining certain responsibilities and functions. Included within the quarter ended September 2019 results are acquisition charges of $35,000 related to the acquisition of Stantive and Celebros, respectively.
• Operating income for the quarter ended September 30, 2020 is $164,000 as compared to an operating loss of $1.5 million for the same period in 2019.
• Net income applicable to common shareholders for the fiscal quarter ended September 30, 2020 is $1.1 million, compared to net income of $619,000 for the same period in 2019. Included within the net income for the three months ended September 30, 2020 was the non-cash loss of $50,000 attributable to the change in fair value of certain derivative warrant liabilities offset by the government grant income of $960,000 related to the forgiveness of the PPP loan. For the three months ended September 30, 2019, the net gain attributable to the change in fair value of certain derivative warrant liabilities was $2.2 million offset by the dividend on convertible preferred stock of $73,000, respectively.

Year to Date Summary:

• Total revenue, which is comprised of License and Services revenue, increased 10% to $11 million for the twelve months ended September 30, 2020, as compared to $10 million for the same period in 2019. License revenue grew by 29% and Services decreased by 17%.
• Subscription and perpetual licenses revenue, which is comprised of SaaS licenses, maintenance and hosting revenue and perpetual license revenue increased 29% to $7.5 million for the twelve months ended September 30, 2020, from $5.8 million for the same period in 2019. As a percentage of total revenue, Subscription and perpetual licenses revenue increased 10% to 69% of total revenue for the twelve months ended September 30, 2020, compared to 59% for the same period in 2019.
• Services revenue decreased $708,000 to $3.4 million for the twelve months ended September 30, 2020 as compared to $4.1 million for the same period in 2019. As a percentage of total revenue, Services revenue decreased 10% to 31% of total revenue for the twelve months ended September 30, 2020, compared to 41% for the same period in 2019.
• Gross profit increased 39% or $1.8 million to $6.4 million for the twelve months ended September 30, 2020 as compared to $4.6 million for the same period in 2019. Cost of revenue decreased 16% or $853,000 to $4.5 million for the twelve months ended September 30, 2020 compared to $5.4 million for the same period in 2019. Gross margin increased to 59% for the twelve months ended September 30, 2020, compared to 46% for the same period in 2019. Subscription and perpetual licenses gross margin were 64% for twelve months ended September 30, 2020 as compared to 44% for the same period in 2019. Services gross margin were 46% for the twelve months ended September 30, 2020 as compared to 50% for the same period in 2019.
• Operating expenses decreased 49% or $7.6 million to $8.1 million for the twelve months ended September 30, 2020 from $15.7 million for the same period in 2019. Included within the twelve month totals as of September 30, 2020 are restructuring charges of $366,000 which reflect the net benefits and overall efficiencies of the previously announced reduction of our U.S. and Canada operations by eliminating redundancies and combining certain responsibilities and functions. Included within the twelve months ended September 2019 results are acquisition charges of $1.1 million related to the acquisition of Stantive and Celebros and a goodwill impairment charge of $3.7 million respectively.
• Net loss applicable to common shareholders for the twelve months ended September 30, 2020 is $2.1 million, compared to $9.8 million for the same period in 2019. Included within the net loss for the twelve months ended September 30, 2020 is a non-cash gain of $1 million attributable to the change in fair value of certain derivative warrant liabilities, government grant income of $960,000 related to the forgiveness of the PPP loan and a deemed dividend expense on the amendment of convertible preferred stock of $2.3 million. For the twelve months ended September 30, 2019, the net gain attributable to the change in fair value of certain derivative warrant liabilities was $2.1 million offset by the dividend on convertible preferred stock of $315,000, respectively.

Financial Results

Fourth Quarter

Total revenue, which is comprised of License and Services revenue, was consistent at $2.7 million for the quarters ended September 30, 2020 and 2019. License revenue grew by 20% and Services decreased by 31%. Subscription and perpetual licenses revenue, which is comprised of SaaS licenses, maintenance and hosting revenue and perpetual license revenue increased 20% to $2 million for the quarter ended September 30, 2020, from $1.7 million for the same period in 2019. As a percentage of total revenue, Subscription and perpetual license revenue increased 12% to 74% of total revenue for the quarter ended September 30, 2020, compared to 62% for the same period in 2019. Services revenue decreased $314,000 to $701,000 for the quarter ended September 30, 2020 as compared to $1 million for the same period in 2019. As a percentage of total revenue, Services revenue accounted for 26% of total revenue for the quarter ended September 30, 2020, compared to 38% for the same period in 2019.

Gross profit increased 16% or $253,000 to $1.8 million for the quarter ended September 30, 2020 as compared to $1.6 million for the same period in 2019. Cost of revenue decreased 21% or $236,000 to $885,000 for the quarter ended September 30, 2020 compared to $1.1 million for the same period in 2019. Gross margin increased to 67% for the quarter ended September 30, 2020, compared to 58% for the same period in 2019. Subscription and perpetual licenses gross margin were 76% for three months ended September 30, 2020 as compared to 59% for the same period in 2019. Services gross margin were 43% for the three months ended September 30, 2020 as compared to 57% for the same period in 2019.

Operating expenses decreased 46% or $1.4 million to $1.7 million for the quarter ended September 30, 2020 from $3.1 million for the same period in 2019. Included within the quarterly totals as of September 30, 2020 are the net benefits and overall efficiencies of the previously announced reduction of our U.S. and Canada operations by eliminating redundancies and combining certain responsibilities and functions. Included within the quarter ended September 2019 results are acquisition charges of $35,000 related to the acquisition of Stantive and Celebros, respectively.

Operating income for the quarter ended September 30, 2020 is $164,000 as compared to an operating loss of $1.5 million for the same period in 2019.

Net income applicable to common shareholders for the fiscal quarter ended September 30, 2020 is $1.1 million, compared to net income of $619,000 for the same period in 2019. Included within the net income for the three months ended September 30, 2020 was the non-cash loss of $50,000 attributable to the change in fair value of certain derivative warrant liabilities offset by the government grant income of $960,000 related to the forgiveness of the PPP loan. For the three months ended September 30, 2019, the net gain attributable to the change in fair value of certain derivative warrant liabilities was $2.2 million offset by the dividend on convertible preferred stock of $73,000, respectively.

Adjusted EBITDA gain for the quarter ended September 30, 2020 is $455,000 or $0.10 per diluted share, compared to a loss of $1.2 million or $0.41 per diluted share for the same period in 2019.

Year to Date

Total revenue, which is comprised of License and Services revenue, increased 10% to $11 million for the twelve months ended September 30, 2020, as compared to $10 million for the same period in 2019. License revenue grew by 29% and Services decreased by 17%. Subscription and perpetual licenses revenue, which is comprised of SaaS licenses, maintenance and hosting revenue and perpetual license revenue increased 29% to $7.5 million for the twelve months ended September 30, 2020, from $5.8 million for the same period in 2019. As a percentage of total revenue, Subscription and perpetual licenses revenue increased 10% to 69% of total revenue for the twelve months ended September 30, 2020, compared to 59% for the same period in 2019. Services revenue decreased $708,000 to $3.4 million for the twelve months ended September 30, 2020 as compared to $4.1 million for the same period in 2019. As a percentage of total revenue, Services revenue decreased 10% to 31% of total revenue for the twelve months ended September 30, 2020, compared to 41% for the same period in 2019.

Gross profit increased 39% or $1.8 million to $6.4 million for the twelve months ended September 30, 2020 as compared to $4.6 million for the same period in 2019. Cost of revenue decreased 16% or $853,000 to $4.5 million for the twelve months ended September 30, 2020 compared to $5.4 million for the same period in 2019. Gross margin increased to 59% for the twelve months ended September 30, 2020, compared to 46% for the same period in 2019. Subscription and perpetual licenses gross margin were 64% for twelve months ended September 30, 2020 as compared to 44% for the same period in 2019. Services gross margin were 46% for the twelve months ended September 30, 2020 as compared to 50% for the same period in 2019.

Operating expenses decreased 49% or $7.6 million to $8.1 million for the twelve months ended September 30, 2020 from $15.7 million for the same period in 2019. Included within the twelve month totals as of September 30, 2020 are restructuring charges of $366,000 which reflect the net benefits and overall efficiencies of the previously announced reduction of our U.S. and Canada operations by eliminating redundancies and combining certain responsibilities and functions. Included within the twelve months ended September 2019 results are acquisition charges of $1.1 million related to the acquisition of Stantive and Celebros and a goodwill impairment charge of $3.7 million respectively.

Net loss applicable to common shareholders for the twelve months ended September 30, 2020 is $2.1 million, compared to $9.8 million for the same period in 2019. Included within the net loss for the twelve months ended September 30, 2020 is a non-cash gain of $1 million attributable to the change in fair value of certain derivative warrant liabilities, government grant income of $960,000 related to the forgiveness of the PPP loan and a deemed dividend expense on the amendment of convertible preferred stock of $2.3 million. For the twelve months ended September 30, 2019, the net gain attributable to the change in fair value of certain derivative warrant liabilities was $2.1 million offset by the dividend on convertible preferred stock of $315,000, respectively.

Adjusted EBITDA loss for the twelve months ended September 30, 2020 is $128,000 or $0.04 per diluted share, compared to $5.4 million or $4.49 per diluted share for the same period in 2019.

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