Bridgeline Digital, recognized by its stock ticker (BLIN, Financial), has officially launched its HawkSearch solution for a prominent industrial distributor. This enhancement has been achieved through the integration with the Optimizely X-Connect connector.
The distributor's website, powered by Optimizely, now offers a significantly improved search experience. This enhancement allows users to efficiently find relevant products among thousands of stock-keeping units (SKUs).
The advanced search functionality enables customers to search by part number, product category, or specific product attributes. Such capabilities streamline the navigation process, ultimately speeding up customers' journey to make a purchase.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Bridgeline Digital Inc (BLIN, Financial) is $3.96 with a high estimate of $4.62 and a low estimate of $3.50. The average target implies an upside of 160.31% from the current price of $1.52. More detailed estimate data can be found on the Bridgeline Digital Inc (BLIN) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Bridgeline Digital Inc's (BLIN, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Bridgeline Digital Inc (BLIN, Financial) in one year is $1.14, suggesting a downside of 25% from the current price of $1.52. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Bridgeline Digital Inc (BLIN) Summary page.
BLIN Key Business Developments
Release Date: February 13, 2025
- Total Revenue: $3.8 million for the quarter ended December 31, 2024, unchanged from the prior year period.
- Subscription License Revenue: $3 million, down 1% from $3.1 million in the prior year period, accounting for 80% of total revenue.
- Services Revenue: $700,000, up 11% from the prior year period, accounting for 20% of total revenue.
- Cost of Revenue: $1.3 million, up from $1.2 million in the prior year period.
- Gross Profit: $2.5 million, down 1% from $2.6 million in the prior year period.
- Gross Profit Margin: 67%, compared to 68% in the prior year period.
- Services Gross Margin: 51%, up from 44% in the prior year period.
- Subscription License Gross Margin: 71%, compared to 73% in the prior year period.
- Operating Expenses: $3.0 million, down 4% from $3.2 million in the prior year period.
- Net Loss: $0.6 million, unchanged from the prior year period.
- Adjusted EBITDA: Negative $193,000, compared to negative $117,000 in the prior year period.
- Cash: $1.5 million as of December 31, 2024.
- Accounts Receivable: $1.2 million as of December 31, 2024.
- Total Debt: Approximately $409,000 USD as of December 31, 2024.
- Total Assets: $15.5 million as of December 31, 2024.
- Total Liabilities: $6 million as of December 31, 2024.
- Outstanding Shares: 10.4 million as of December 31, 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Bridgeline Digital Inc (BLIN, Financial) signed 28 license sales in Q1 FY'25, adding $2.7 million in new contracts and $800,000 in annual contract value.
- The company has a sales cycle of only 105 days with an 18% win rate on qualified leads, indicating strong market performance.
- Bridgeline Digital Inc (BLIN) released 8 AI-based products last year, establishing a leading position in AI e-commerce search.
- The company has a net revenue retention rate of 107% and a customer acquisition cost payback period better than 20 months.
- Bridgeline Digital Inc (BLIN) is expanding its marketing budget and reallocating resources from R&D to sales and marketing to capitalize on market demand.
Negative Points
- Total revenue for Q1 FY'25 was flat at $3.8 million compared to the prior year period.
- Subscription license revenue decreased by 1% from the prior year period, indicating potential challenges in maintaining growth.
- Gross profit margin decreased slightly from 68% to 67% compared to the prior year period.
- The company reported a net loss of $0.6 million for the quarter, consistent with the prior year period.
- Adjusted EBITDA was negative $193,000, worsening from negative $117,000 in the prior year comparable period.
