Bridgeline Digital, Inc. (NASDAQ: BLIN), The Digital
Engagement Company™, today announced financial results for its
fiscal fourth quarter ended September 30, 2019.
“This year Bridgeline nearly tripled its
customer base, added two product lines, and is now driving quarter
over quarter growth in SaaS revenue which paves our path to profits
in 2020,” said Ari Kahn, Bridgeline’s President and Chief
Executive Officer. “Customer sentiment is strong with significant
renewals across all product lines including multi-year renewals
that substantially add to our revenue backlog. Bridgeline is
driving new business through its Salesforce.com partnership,
cross-sales and account expansion within our expanded customer
base, and new opportunities from our new product lines including
the Artificial Intelligence capabilities in our Celebros Search
product.”
Fourth Quarter Summary:
- Total revenue for the quarter ended September 30, 2019
was $2.7 million, compared to $2.8 million for the same period last
year.
- Recurring revenue increased 16% to $1.7 million for the
quarter ended September 30, 2019, from $1.4 million for the same
period in 2018.
- SaaS revenue increased 20% to $1.4 million for the
quarter ended September 30, 2019, from $1.1 million for the same
period last year.
- Hosting revenue increased 20% to $0.3 million or 9% of
total revenue for the quarter ended September 30, 2019, from $0.2
million or 7% of total revenue for the same quarter last year.
- Services revenue was $1.0 million or 38% of total revenue
for the quarter ended September 30, 2019, compared to $1.4 million
or 48% of total revenue for the same period last year.
- Operating expenses increased 35% or $0.8 million to $3.1
million for the quarter ended September 30, 2019 from $2.3 million
for the same quarter last year. Included within the
fourth quarter 2019 results are the increased costs associated
with additional headcount from the two acquisitions and a
goodwill impairment charge of $0.2 million for the same period
ended 2018.
- Net income for the quarter ended September 30, 2019 was
$0.6 million, compared to a net loss of $1.0 million for the same
quarter last year. Included within the $0.6 million of
net income for the three months ended September 30, 2019 was a
non-cash gain of $2.2 million attributable to the change in fair
value of certain derivative warrant liabilities.
Year to Date Summary:
- Total revenue was $10.0 million for the fiscal year ended
September 30, 2019, compared to $13.6 million for the fiscal period
ended September 30, 2018.
- Recurring revenue was $5.7 million or 57% of total
revenue for the fiscal year ended September 30, 2019, compared to
$6.6 million or 48% for the same period last year.
- SaaS revenue was $4.3 million or 43% of total revenue for
the fiscal year ended September 30, 2019, compared to $5.1 million
or 37% for the same period last year.
- Hosting revenue was consistent at $1.0 million or 10% of
total revenue for the fiscal year ended September 30, 2019,
compared to 8% of total revenue for the same period last year.
- Services revenue was $4.1 million or 41% of total revenue
for the fiscal year ended September 30, 2019, compared to $6.9
million or 51% of total revenue for the same period last year.
- Operating expenses are $15.7 million as compared to $13.8
million for the same period last year. Included within
these amounts are restructuring and acquisition-related costs of
$1.1 million and $0.2 million and goodwill impairment charges of
$3.7 million and $4.9 million for the fiscal year ended September
30, 2019 and 2018, respectively.
- Net loss applicable to common shareholders was $9.8
million for the fiscal year ended September 30, 2019, compared to
$7.5 million for the same period last year. Reflected in
net results for the fiscal years ended September 30, 2019 and 2018
is a non-cash net adjustment to other income of $2.1 million and
$0.2 million attributable to the change in fair value of certain
derivative warrant liabilities and warrant expense, interest
expense, net of $0.3 million and $0.2 million, dividends on
preferred stock of $0.3 million and $0.3 million and a
non-cash charge to amortization of debt discount of $0.2 million
and $0.1 million, respectively.
Financial Results
Fourth Quarter
Revenue for the period ended September 30, 2019
was $2.7 million, compared to $2.8 million for the same period
last year. Recurring revenue generated increased 16% to
$1.7 million for the period ended September 30, 2019
from $1.4 million for the same period last
year. SaaS revenue, which represents 81% of total
recurring revenue increased 19% to $1.4 million for the quarter
ended September 30, 2019, compared to $1.1 million for the
same period last year. Hosting revenue increased 20% to
$0.3 million or 9% of total revenue for the quarter ended September
30, 2019, from $0.2 million or 7% of total revenue for the
same period last year. Services revenue was $1.0 million
or 38% of total revenue for the three months ended September 30,
2019, compared to $1.4 million or 48% of total revenue for the
same period last year.
Operating expenses increased 35% to $3.1 million
from $2.3 million for the quarter ended September 30, 2019 and
2018. Included within these amounts are the
increased costs associated with additional headcount from the two
acquisitions and goodwill impairment charges of $0.2 million
for the applicable quarters ended September 30, 2019 and
2018. Loss from operations for the periods ended
September 30, 2019 and 2018 were $1.5 million and $0.9 million,
respectively.
Net income applicable to common shareholders for
the quarter ended September 30, 2019 is $0.6 million, inclusive of
a non-cash gain to other income attributable to the change in fair
value of certain derivative warrant liabilities of $2.2 million,
compared to a net loss of $1.0 million for the quarter ended
September 30, 2018.
Adjusted EBITDA loss for the quarter ended
September 30, 2019 is $1.2 million, compared to $0.4
million for the same period in 2018.
Year to Date
Revenue for the fiscal year ended September 30,
2019 was $10.0 million, compared to $13.6 million for the same
period last year. Recurring revenue was $5.7 million for
the fiscal period ended September 30, 2019, compared to $6.6
million for the same period last year. SaaS revenue,
which represents 75% of total recurring revenue was $4.3 million
for the fiscal year ended September 30, 2019, compared to $5.1
million for the same period last year. Hosting revenue was
consistent at $1.0 million or 10% of total revenue for the
fiscal year ended September 30, 2019, compared to 8% of total
revenue for the same period last year. Services revenue
was $4.1 million or 41% of total revenue for the fiscal year ended
September 30, 2019, compared to $6.9 million or 51% of total
revenue in 2018.
Operating expenses, excluding restructuring and
acquisition-related costs of $1.1 million and a goodwill impairment
charge of $3.7 million, were $10.9 million for the fiscal year
ended September 30, 2019. For the same period in 2018,
operating expenses, excluding restructuring and acquisition-related
costs of $0.2 million and a goodwill impairment charge of $4.8
million, were $8.8 million. Loss from operations, were
$11.1 million and $7.0 million for the fiscal year ended September
30, 2019 and 2018, respectively.
Net loss applicable to common shareholders,
inclusive of a non-cash adjustment to other income (expense)
attributable to the net change in fair value of certain derivative
warrant liabilities is $9.8 million for the fiscal year ended
September 30, 2019, compared to $7.5 million for the same
period in 2018.
Adjusted EBITDA loss for the fiscal year ended
September 30, 2019 is $5.4 million, compared to $1.0
million for the same period in 2018.
Non-GAAP Financial Measures
This press release contains the following
non-GAAP financial measures: non-GAAP adjusted net income/(loss),
non-GAAP adjusted earnings/(loss) per diluted share, Adjusted
EBITDA and Adjusted EBITDA per diluted share.
Non-GAAP adjusted net income/(loss) and non-GAAP
adjusted 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,
non-cash stock-based compensation, goodwill impairment charges,
restructuring and acquisition-related costs, preferred stock
dividends and any related tax effects.
Adjusted EBITDA and Adjusted EBITDA per diluted
share are defined as earnings before interest, taxes, depreciation
and amortization, non-cash stock-based compensation charges,
goodwill impairment charges, restructuring and acquisition-related
costs, changes in fair value of derivative liabilities and warrant
expense, amortization of debt discounts, preferred stock dividends
and any related tax effects. Bridgeline uses non-GAAP adjusted net
income/(loss) and Adjusted EBITDA 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”).
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 net
income/(loss) and Adjusted EBITDA 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 non-GAAP adjusted net
income and Adjusted EBITDA 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 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 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," or similar expressions, and
variations or negatives of these words. 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 weakness in the U.S. and international
economies on our business, our inability to manage our future
growth effectively or profitably, fluctuations in our revenue and
quarterly results, our license renewal rate, the impact of
competition and our ability to maintain margins or market share,
the limited market for our common stock, the volatility of the
market price of our common stock, the ability to maintain our
listing on the NASDAQ Capital market, the ability to raise
capital, the performance of our products, our ability to
respond to rapidly evolving technology and customer requirements,
our ability to protect our proprietary technology, the security of
our software, our dependence on our management team and key
personnel, our ability to hire and retain future key personnel, 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. We expressly
disclaim any obligation to update any forward-looking
statement.
About Bridgeline Digital
Bridgeline Digital, The Digital Engagement
Company™, helps customers maximize the performance of their full
digital experience from websites and intranets to online stores and
campaigns. Bridgeline’s Unbound platform is a Digital Experience
Platform that deeply integrates Web Content Management, eCommerce,
Marketing Automation, Site Search, Authenticated Portals, Social
Media Management, Translation 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. Headquartered in Burlington, Mass., Bridgeline has
customers that range from small- and medium-sized organizations to
Fortune 1000 companies. To learn more, please
visit www.bridgeline.com or call (800) 603-9936.
Company Contact:
Bridgeline Digital, Inc.
Mark G. Downey
Chief Financial Officer
(631) 203-6820
mdowney@bridgeline.com
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