• May 15, 2019
  • Burlington, MA

Bridgeline Announces Earnings for Second Quarter of Fiscal 2019

BURLINGTON, Mass., May 15, 2019 (GLOBE NEWSWIRE) -- Bridgeline Digital, Inc. (NASDAQ:BLIN), The Digital Engagement Company™, today announced financial results for its fiscal second quarter ended March 31, 2019.

“One of Bridgeline’s focus in 2019 is to reduce customer acquisition cost through strategic expansion of its customer base and product suite in the crowded Marketing Technology sector. Bridgeline has made two strategic acquisitions; we acquired the Celebros assets from SeeVolution and the OrchestraCMS assets from Stantive. These acquisitions include over 100 new customers with strong gross margin and annual recurring revenue,” said Ari Kahn, Bridgeline’s President and Chief Executive Officer. “The acquisitions include exciting new technologies such as eCommerce search with Natural Language Processing Artificial Intelligence and 100% native Salesforce.com integration. They also launch a strong partnership with Salesforce.com that we expect to help accelerate sales.”

Second Quarter Summary:

  • Subscription and perpetual license revenue was $1.0 million in the second quarter of fiscal 2019, compared to $1.5 million in the second quarter of fiscal 2018.

  • Recurring revenue was $1.3 million in the second quarter of fiscal 2019, compared to $1.7 million in the second quarter of fiscal 2018.

  • SaaS revenue was $940,000 in the second quarter of fiscal 2019, compared to $1.3 million in the second quarter of fiscal 2018.

  • Hosting revenue was $241,000 in the second quarter of fiscal 2019, compared to $293,000 in the second quarter of fiscal 2018.

  • Services revenue was $911,000 in the second quarter of fiscal 2019, compared to $1.9 million in the second quarter of fiscal 2018.

  • Operating expenses, excluding restructuring and acquisition-related expenses of $304,000, were $2.5 million in the second quarter of fiscal 2019, compared to $2.3 million in the second quarter of fiscal 2018.

  • We recorded a non-cash charge to interest expense of $10.3 million related to the allocation of proceeds from the sale of Series C Preferred Stock and associated warrants.

Year to Date Summary:

  • Subscription and perpetual license revenue was $2.1 million in the first six months of fiscal 2019, compared to $3.1 million in the first six months of fiscal 2018.
  • Recurring revenue was $2.4 million in the first six months of fiscal 2019, compared to $3.6 million in the first six months of fiscal 2018.
  • SaaS revenue was $1.7 million in the first six months of fiscal 2019, compared to $2.8 million in the first six months of fiscal 2018.
  • Hosting revenue was $498,000 in the first six months of fiscal 2019, compared to $596,000 in the first six months of fiscal 2018.
  • Services revenue was $2.0 million in the first six months of fiscal 2019, compared to $4.0 million in the first six months of fiscal 2018.
  • Operating expenses, excluding restructuring and acquisition-related expenses of $304,000, and a goodwill impairment charge of $3.7 million, were reduced to $4.5 million in the first six months of fiscal 2019 compared to $4.6 million the first six months of fiscal 2018.
  • We recorded a non-cash charge to interest expense of $10.3 million related to the allocation of proceeds from the sale of Series C Preferred Stock and associated warrants.

Financial Results

Second Quarter

Revenue for the second quarter of fiscal 2019 was $2.2 million, compared to $3.7 million in the second quarter of fiscal 2018. Subscription and perpetual license revenue was $1.0 million in the second quarter of fiscal 2019, compared to $1.5 million in the second quarter of fiscal 2018. Recurring revenue was $1.3 million in the second quarter of fiscal 2019, compared to $1.7 million in the second quarter of fiscal 2018. SaaS revenue was $940,000 in the second quarter of fiscal 2019, compared to $1.3 million in the second quarter of fiscal 2018. Hosting revenue was $241,000 in the second quarter of fiscal 2019, compared to $293,000 in the second quarter of fiscal 2018. Services revenue was $911,000 in the second quarter of fiscal 2019, compared to $1.9 million in the second quarter of 2018.

Operating expenses, excluding restructuring and acquisition-related expenses of 304,000, were $2.5 million in the second quarter of fiscal 2019, compared to $2.3 million in the second quarter of fiscal 2018. Loss from Operations, excluding restructuring and acquisition-related expenses of $304,000 was $1.7 million in the second quarter of fiscal 2019, compared to $435,000 in the second quarter of fiscal 2018.

Net loss, excluding restructuring and acquisition-related expenses of $304,000, a non-cash charge to extinguish debt of $221,000, and a non-cash charge to interest expense for the fair value allocation of the Preferred C Stock warrants of $10.3 million, was $1.7 million in the second quarter of fiscal 2019, compared to a net loss of $499,000 in the second quarter of fiscal 2018.

Adjusted EBITDA was a loss of $1.5 million in the second quarter of fiscal 2019, compared to a loss of $185,000 in the second quarter of fiscal 2018.

Year to Date

Revenue for the first six months of fiscal 2019 was $4.6 million, compared to $7.7 million in the first six months of fiscal 2018. Subscription and perpetual license revenue was $2.1 million in the first six months of fiscal 2019, compared to $3.1 million in the first six months of fiscal 2018. Recurring revenue was $2.4 million in the first six months of fiscal 2019, compared to $3.6 million in the first six months of fiscal 2018. SaaS revenue was $1.7 million in the first six months of fiscal 2019, compared to $2.8 million in the first six months of fiscal 2018. Hosting revenue was $498,000 for the first six months of fiscal 2019, compared to $596,000 in the first six months of fiscal 2018. Services revenue was $2.0 million in the first six months of fiscal 2019, compared to $4.0 million in the first six months of fiscal 2018.

Operating expenses, excluding restructuring and acquisition-related expenses of $304,000, and a goodwill impairment charge of $3.7 million, were reduced to $4.5 million in the first six months of fiscal 2019, compared to $4.6 million in the first six months of fiscal 2018. Loss from Operations, excluding restructuring and acquisition-related expenses of $304,000, and a goodwill impairment charge of $3.7 million, was $2.7 million in the first six months of fiscal 2019, compared to $778,000 in the first six months of fiscal 2018.

Net loss, excluding restructuring and acquisition-related expenses of $304,000, a goodwill impairment charge of $3.7 million, a non-cash charge to extinguish debt of $221,000, and a non-cash charge to interest expense for the fair value allocation of the Preferred C Stock warrants of $10.3 million, was $2.9 million in the first six months of fiscal 2019, compared to a net loss of $929,000 in the first six months of fiscal 2018.

Adjusted EBITDA was a loss of $2.4 million in the first six months of fiscal 2019, compared to a loss of $279,000 in the first six months of fiscal 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, stock-based compensation, restructuring charges, 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, stock-based compensation charges, restructuring charges, 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 thousands of quality 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.

Contact:
Bridgeline Digital, Inc.:                                                            
Carole A. Tyner                                            
Chief Financial Officer                                   
781.497.3020                                      
ctyner@bridgeline.com   

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