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Bridgeline Digital (BLIN)
NASDAQ:BLIN
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Bridgeline Digital
(NASDAQ:BLIN)
56Neutral
Bridgeline Digital (BLIN) vs. S&P 500 (SPY)
Market Cap
$15.46M
Dividend YieldN/A
Average Volume (3M)109.22K
Price to Earnings (P/E)―
Beta (1Y)0.10
Revenue Growth-1.05%
EPS Growth80.22%
CountryUS
Employees51
SectorTechnology
Sector Strength45
IndustrySoftware
Share Statistics
EPS (TTM)-0.19
Shares Outstanding10,442,609
10 Day Avg. Volume65,489
30 Day Avg. Volume109,219
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.98
Price to Cash Flow (P/CF)21.30
P/FCF Ratio21.30
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$4.62Price Target Upside212.16% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Bridgeline Digital Business Overview & Revenue Model
Company DescriptionBridgeline Digital, Inc. is an information technology company. It engages in the development of web engagement management product platform and related digital solutions. The company also enables its customers to maximize the performance of their mission critical websites, intranets, and online stores. Its platform provides Web Content Management, eCommerce, eMarketing, Social Media management, and Web Analytics. The company was founded by Thomas L. Massie on August 28, 2000 and is headquartered in Burlington, MA.
How the Company Makes MoneyBridgeline Digital generates revenue primarily through the sale of its software solutions and services. The company operates a software-as-a-service (SaaS) model, where clients subscribe to its digital engagement platforms for recurring fees. In addition to subscription-based income, Bridgeline offers professional services, including implementation, customization, and support, which provide additional revenue streams. The company may also engage in strategic partnerships and collaborations to expand its market reach and enhance its product offerings, thereby contributing to its earnings.
Bridgeline Digital Financial Statement Overview
Summary
Bridgeline Digital faces operational challenges with declining revenues and consistent net losses, impacting its income statement score. The balance sheet reflects low leverage and reasonable equity stability, but declining asset values are a concern. Cash flow management has shown recent improvements with a positive free cash flow, yet overall profitability remains a challenge. The company needs to focus on improving profitability and stabilizing revenue streams to enhance financial health.Income Statement
Bridgeline Digital shows a declining revenue trend with a negative net income and EBIT, indicating operational challenges. The gross profit margin remains healthy at around 66% for TTM, but the net profit margin is negative, which highlights profitability issues. Revenue has decreased over the last three years, with a slight improvement in the most recent TTM compared to 2023 fiscal year.45
Neutral
Balance Sheet
The company maintains a strong equity position with a debt-to-equity ratio of 0.03 in TTM, indicating low leverage and a stable financial structure. However, total assets and stockholders' equity have decreased over the past years. The equity ratio is relatively strong at 61.42% for TTM, suggesting stability despite declining assets.60
Neutral
Cash Flow
Free cash flow has improved recently, turning positive in the TTM period, which is a positive sign. The operating cash flow to net income ratio indicates challenges in converting income into cash. Despite historical fluctuations, the recent positive free cash flow suggests improvements in cash management.55
Neutral
| Breakdown | |||||
| TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 15.39M | 15.36M | 15.88M | 16.82M | 13.26M | 10.91M | Gross Profit |
| 10.12M | 10.43M | 10.87M | 11.70M | 8.73M | 6.40M | EBIT |
| -1.90M | -2.02M | -9.91M | -1.73M | 140.00K | -318.00K | EBITDA |
| -1.10M | -979.00K | -880.00K | -282.00K | 835.00K | 1.31M | Net Income Common Stockholders |
| -1.97M | -1.96M | -9.44M | 2.15M | -6.69M | 326.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.48M | 1.39M | 2.38M | 2.86M | 8.85M | 861.00K | Total Assets |
| 15.54M | 15.60M | 17.63M | 27.51M | 34.97M | 10.66M | Total Debt |
| 323.00K | 689.00K | 1.09M | 1.61M | 2.41M | 382.00K | Net Debt |
| -1.16M | -701.00K | -1.29M | -1.25M | -6.44M | -479.00K | Total Liabilities |
| 6.00M | 5.60M | 6.17M | 7.16M | 17.39M | 6.30M | Stockholders Equity |
| 9.55M | 10.01M | 11.46M | 20.35M | 17.58M | 4.36M |
| Cash Flow | Free Cash Flow | ||||
| 275.00K | -794.00K | 252.00K | -329.00K | -1.10M | -498.00K | Operating Cash Flow |
| 309.00K | -765.00K | 277.00K | -134.00K | -989.00K | -498.00K | Investing Cash Flow |
| -34.00K | -29.00K | -25.00K | -195.00K | -4.52M | 0.00 | Financing Cash Flow |
| -208.00K | -209.00K | -649.00K | -5.48M | 13.47M | 1.05M |
Bridgeline Digital Technical Analysis
Positive
1.48
Price Trends
1.70
Negative
1.46
Positive
1.24
Positive
Market Momentum
-0.08
Negative
47.11
Neutral
91.55
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLIN, the sentiment is Positive. The current price of 1.48 is above the 20-day moving average (MA) of 1.46, below the 50-day MA of 1.70, and above the 200-day MA of 1.24, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 47.11 is Neutral, neither overbought nor oversold. The STOCH value of 91.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BLIN.
Bridgeline Digital Risk Analysis
Bridgeline Digital disclosed 26 risk factors in its most recent earnings report. Bridgeline Digital reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bridgeline Digital Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $4.78B | 60.49 | 10.12% | ― | 18.78% | 15.01% | |
67 Neutral | $945.29M | 47.42 | 5.72% | 0.36% | 4.51% | 32.28% | |
58 Neutral | $21.86B | 10.10 | -18.37% | 2.42% | 4.91% | -23.24% | |
56 Neutral | $15.46M | ― | -19.27% | ― | -1.05% | 80.22% | |
54 Neutral | $3.12B | 78.53 | -60.37% | ― | 4.49% | -18773.97% |
* Technology Sector Average
Performance Comparison
BLIN
Bridgeline Digital
1.48
0.48
48.00%
BLKB
Blackbaud
63.45
-7.06
-10.01%
HSTM
HealthStream
31.06
5.06
19.46%
SPSC
SPS Commerce
129.43
-49.33
-27.60%
Bridgeline Digital Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -25.25% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong sales performance, growth in core revenue, and successful product launches and partnerships, indicating positive market momentum. However, flat overall revenue growth, a slight decline in gross profit margin, and increased net loss and negative adjusted EBITDA suggest challenges remain. The strategic focus on reallocating resources to sales and marketing may address these issues.Highlights
Strong Q1 Sales Performance
Bridgeline signed 28 license sales, adding $2.7 million in new contracts and $800,000 in annual contract value. This represents the second-best sales quarter in the company's history.
Growth in Core Revenue
Core revenue from Hawk Search products and eCommerce 360 embedding, including WooRank, was $2.1 million with double-digit growth and a net revenue retention of 107%.
Successful Product Launches and Partnerships
Released eight AI-based products, launched BigCommerce Catalyst Connector, and formed partnerships with Optimizely, OroCommerce, and Salesforce, enhancing market reach and product capabilities.
Cost Efficiency and Strategic Resource Allocation
Operating expenses decreased by 4% compared to the prior year, with a strategic shift from R&D to sales and marketing to leverage market demand.
Lowlights
Flat Overall Revenue Growth
Total revenue for the quarter was $3.8 million, unchanged from the prior year period. Subscription license revenue decreased by 1% year-over-year.
Decline in Gross Profit Margin
Gross profit margin decreased slightly to 67% from 68% in the prior year period.
Increased Net Loss and Negative Adjusted EBITDA
Net loss remained at $0.6 million compared to the prior year period, with adjusted EBITDA worsening to negative $193,000 from negative $117,000.
Company Guidance
In the Bridgeline Digital First Quarter 2025 earnings call, the company reported signing 28 license sales, generating $2.7 million in new contracts and adding $800,000 to annual contract value. The core revenue, driven by Hawk Search products, reached $2.1 million with double-digit growth and a net revenue retention rate of 107%. The sales cycle was notably short at 105 days, with an 18% win rate on qualified leads. Operating expenses were maintained at $3.0 million, while total revenue for the quarter was $3.8 million, unchanged from the previous year. The company emphasized reallocating resources from R&D to sales and marketing to capitalize on the market demand, aiming to sustain its growth momentum in 2025.Bridgeline Digital Corporate Events
Executive/Board Changes
Brandon Ross Joins Bridgeline Digital’s Board of Directors
Neutral
Feb 14, 2025
On February 10, 2025, Michael Taglich resigned from the Board of Directors of Bridgeline Digital, Inc., with his departure not due to any disagreements with the company. Subsequently, on February 14, 2025, Brandon Ross was appointed to the Board as a Class III Director to fill the vacancy. Ross, a seasoned investment banker with over 30 years in financial services, has a significant background in handling public and private offerings, making him a strategic addition to Bridgeline Digital’s board.
Executive/Board Changes
Bridgeline Digital Appoints Michael Ketslakh to Board
Neutral
Feb 11, 2025
Scott Landers resigned from Bridgeline Digital’s Board of Directors on February 5, 2025, and his resignation was not due to any disagreements with the company’s operations or policies. Subsequently, on February 10, 2025, Michael Ketslakh was appointed to the Board to fill the vacancy. Ketslakh, who has a background in diagnostic services and wellness programs, will serve until the 2025 Annual Meeting of Stockholders, although no committee appointments have been made yet.
Executive/Board ChangesBusiness Operations and Strategy
Bridgeline Digital Extends CEO Roger Kahn’s Contract
Positive
Feb 7, 2025
On February 3, 2025, Bridgeline Digital announced an Amended and Restated Employment Agreement with its President and CEO, Roger ‘Ari’ Kahn, effective from January 1, 2025. This new agreement extends Kahn’s employment through September 30, 2026, with potential for automatic one-year renewals. Key changes include an increased annual salary of $421,500 and a target incentive bonus of $215,000, alongside discretionary equity awards. The agreement also outlines severance benefits, including salary continuation, bonuses, and health insurance coverage, in the event of termination without cause or resignation for good reason. These changes aim to solidify leadership stability and align executive compensation with performance, potentially impacting company operations and investor confidence.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.