Bridgeline Digital Inc (NASDAQ:BLIN) has announced encouraging results for the full year ended September 30, 2022, with a big surge in total annual revenue underscoring a strong overall performance.
Total revenue increased by 27% to $16.8 million for the twelve months ended September 30, 2022, compared to $13.3 million for the same period in 2021, the company said.
“Our partner network is driving new customer wins, and in addition to our ISV (Independent Software Vendor) partners such as BigCommerce, Kentico, Optimizely, and Sitefinity, we have added several system integrators including Niteco and Thanx Media to drive more sales," Ari Kahn, Bridgeline’s president and CEO said in the results statement.
READ: Bridgeline Digital expands partnership with BigCommerce, HawkSearch now available for Multi-Storefront users
Subscription and licenses revenue increased 36% to $13.6 million for the twelve months ended September 30, 2022, from $10.0 million for the same period in 2021. As a percentage of total revenue, subscription and licenses revenue increased to 81%, compared to 75% for the same period in 2021.
Services revenue was $3.3 million, a slight decrease from the $3.3 million recorded during the same period in 2021. As a percentage of total revenue, services revenue accounted for 19%, compared to 25% for the same period in 2021.
Gross profit increased by 34% or $3.0 million to $11.7 million for the twelve months ended September 30, 2022, as compared to $8.7 million for the same period in 2021. The cost of revenue increased 13% or $0.6 million to $5.1, compared to $4.5 million for the same period in 2021.
Gross margin, meanwhile, increased to 70%, compared to 66% for the same period in 2021. Subscription and licenses gross margin were 75% compared to 72% for the same period in 2021.
In the fourth quarter ended September 30, services revenue was $0.8 million compared to $0.8 million for the same period in 2021. As a percentage of total revenue, services revenue accounted for 18% of total revenue for the quarter, compared to 18% for the same period in 2021.
Gross profit increased by 7%, or $0.2 million, to $3.0 million for the quarter compared to $2.8 million for the same period in 2021. Gross margin increased to 71% for the quarter, compared to 68% for the same period in 2021.
Corporate 2022 Highlights:
- Bridgeline reported 28 SaaS license sales totaling over $1 million in total contract value with $340 thousand in annual recurring revenue for its fourth quarter of fiscal year 2022. The company’s cross-sale strategy remains strong, with 13 subscription sales to its existing customer base and 15 newly won customers.
- The company saw a top electrical distributor commit to a more than $250,000 multi-year license for Bridgeline's TruPresence and HawkSearch products to power their site search and recommendations. HawkSearch's AI site search technology was identified to help grow the distributor's massive online catalog with 700 sites, 5 million products, and 15 million monthly queries. Additionally, a major Asia Pacific retailer with 150 brands and 2,600 locations selected Bridgeline to power ten of its brands including New Balance, Reebok, Converse, Skechers, and Foot Locker.
- The company entered into a partnership agreement Niteco, the world's largest Optimizely partner. Niteco services 500 customers in 30 countries including Panasonic, Heineken, and Electrolux. The partnership is focused on selling and implementing HawkSearch, which is Optimizely’s first non-native site search integrated with their B2B and B2C platforms.
- Thanx Media, a systems integrator that serves Fortune 500 customers such as PayPal, Target, and Ulta Beauty partnered with Bridgeline in November 2022 to sell and implement Bridgeline's HawkSearch product. Thanx Media is certified in both the Optimizely and BigCommerce platforms.
Bridgeline Digital provides solutions that transform how brands interact with their customers. Bridging the gaps between marketing, content, commerce, social & insights, the company enables marketers to deliver exceptional customer experiences, engage prospects and build customer relationships across multiple channels.
Contact the author at jon.hopkins@proactiveinvestors.com