• Dec 28, 2018
  • Burlington, MA

Bridgeline Digital to Report Financial Results for the Fourth Quarter and Fiscal Year Ended September 30th, 2018

BURLINGTON, Mass., Dec. 28, 2018 (GLOBE NEWSWIRE) -- Bridgeline Digital, Inc. (NASDAQ:BLIN), The Digital Engagement Company™, today announced financial results for its fiscal fourth quarter and fiscal year ended September 30, 2018.

“Bridgeline has partnered with key customers to expand its product line to access global markets and position itself as a leader in the multinational B2B eCommerce space,” said Ari Kahn, Bridgeline’s President and Chief Executive Officer. “These investments, along with significant wins in the manufacturing category, position us for growth 2019. Furthermore, in the most recent quarter, Bridgeline initiated strategic conversations that may lead to multi-national growth in our customer base where our eCommerce investments can be cross-sold for accelerated growth.  Additional strategic opportunities will be a key focus in 2019.”

Fourth Quarter Summary:

  • SaaS revenue was $1.1 million in the fourth quarter of fiscal 2018, compared to $1.4 million in the fourth quarter of fiscal 2017.
  • Hosting revenue was $206,000 in the fourth quarter of fiscal 2018, compared to $263,000 in the fourth quarter of fiscal 2017.
  • Recurring revenue was $1.4 million in the fourth quarter of fiscal 2018, compared to $1.8 million in the fourth quarter of fiscal 2017.
  • Subscription and perpetual license revenue was $1.2 million in the fourth quarter of fiscal 2018, compared to $1.8 million in the fourth quarter of fiscal 2017.
  • Operating expenses (excluding a goodwill impairment charge of $243,000) were reduced by $534,000, or 20.8% to $2.0 million in the fourth quarter of fiscal 2018, from $2.6 million in the fourth quarter of fiscal 2017.

Year to Date Summary:

  • SaaS revenue was $5.1 million in fiscal 2018, compared to $5.5 million in fiscal 2017.
  • Hosting revenue remained constant at $1.0 million in both fiscal 2018 and fiscal 2017.
  • Recurring revenue was $6.6 million in fiscal 2018, compared to $7.1 million in fiscal 2017.
  • Subscription and perpetual license revenue was $5.6 million in fiscal 2018, compared to $6.8 million in fiscal 2017.
  • Operating expenses (excluding a goodwill impairment charge of $4.9 million) were reduced by $1.6 million, or 14.9% to $9.0 million in fiscal 2018, from $10.5 million in fiscal 2017.

Financial Results

Fourth Quarter

Revenue for the fourth quarter of fiscal 2018 was $2.8 million, compared to $4.2 million in the fourth quarter of fiscal 2017. Services revenue was $1.4 million in the fourth quarter of fiscal 2018, compared to $2.2 million in the fourth quarter of fiscal 2017. SaaS revenue was $1.1 million in the fourth quarter of fiscal 2018, compared to $1.4 million in the fourth quarter of fiscal 2017. Hosting revenue was $206,000 in the fourth quarter of fiscal 2018, compared to $263,000 in the fourth quarter of fiscal 2017. Recurring revenue was $1.4 million in the fourth quarter of fiscal 2018, compared to $1.8 million in the fourth quarter of fiscal 2017. Subscription and perpetual license revenue was $1.2 million in the fourth quarter of fiscal 2018, compared to $1.8 million in the fourth quarter of fiscal 2017.

Operating expenses (excluding goodwill impairment charge of $243,000) were reduced by $534,000, or 20.8% to $2.0 million in the fourth quarter of fiscal 2018, compared to $2.6 million in the fourth quarter of fiscal 2017, reflecting management’s ongoing expense control initiatives. Loss from Operations was $842,000 in the fourth quarter of fiscal 2018, compared to $250,000 in the fourth quarter of fiscal 2017. The operating loss of $842,000 in the fourth quarter of fiscal 2018 is inclusive of a goodwill impairment charge of $243,000.

Net loss, including a goodwill impairment charge of $243,000, was $947,000 in the fourth quarter of fiscal 2018, compared to a net loss of $332,000 in the fourth quarter of fiscal 2017. 

Adjusted EBITDA was a loss of $414,000 in the fourth quarter of fiscal 2018, compared to income of $41,000 in the fourth quarter of fiscal 2017.

Year to Date

Revenue in fiscal 2018 was $13.6 million, compared to $16.3 million in fiscal 2017. SaaS revenue was $5.1 million in fiscal 2018, compared to $5.5 million in fiscal 2017. Hosting revenue remained constant at $1.0 million in both fiscal 2018 and fiscal 2017. Recurring revenue was $6.6 million in fiscal 2018, compared to $7.1 million in fiscal 2017. Subscription and perpetual license revenue was $5.6 million in fiscal 2018, compared to $6.8 million in fiscal 2017.

Operating expenses (excluding a goodwill impairment charge of $4.9 million) were reduced by $1.6 million, or 14.9% to $9.0 million in fiscal 2018, compared to $10.5 million in fiscal 2017, reflecting management’s ongoing expense control initiatives. Loss from Operations was $7.0 million in fiscal 2018, compared to $1.4 million in fiscal 2017.  The operating loss of $7.0 million in fiscal 2018 is inclusive of a goodwill impairment charge of $4.9 million.

Net loss, including a goodwill impairment charge of $4.9 million, was $7.2 million in fiscal 2018, compared to a net loss of $1.6 million in fiscal 2017.

Adjusted EBITDA was a loss of $1.0 million in fiscal 2018, compared to income of $122,000 in fiscal 2017.

Conference Call Information

Bridgeline Digital will host a conference call to discuss fourth quarter and fiscal year ended 2018 results at 4:30 p.m. ET today. To listen to the conference call, please dial (877) 837-3910 within the U.S. or (973) 796-5077 for international callers.

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, goodwill impairment charges, 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, goodwill impairment charges, restructuring charges, loss on disposal of fixed assets, 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 complete digital experience - from websites and intranets to online stores and marketing campaigns. Bridgeline's Unbound (formerly iAPPS) platform deeply integrates Web Content Management, eCommerce, eMarketing, Social Media management, and Web Analytics to ensure marketers deliver digital experiences that attract, engage and convert their customers across all channels. 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.

Company Contact:

Bridgeline Digital, Inc

Carole A. Tyner

Chief Financial Officer

(781) 497-3020

ctyner@bridgeline.com

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