Bridgeline Digital Inc has “substantial growth potential” in its eCommerce360 digital engagement offerings, Taglich Brothers said in a recent note, while maintaining a “Speculative Buy” rating on the stock.
The analysts also repeated their $3.25 price target on Bridgeline’s stock, which is currently trading around $1.40 on the tech-dominated Nasdaq.
“Brideline Digital has substantial growth potential for its eCommerce360 digital engagement offerings through its sales and marketing strategy that enables a streamlined and nearly virtual sales process via an artificial intelligence (AI) dashboard,” said the analysts.
READ: Bridgeline Digital announces strong growth in revenue and gross profit for its 3Q
The global customer experience management market is tipped to grow 18.1% annually to around $39 billion by 2030, up from $8.8 billion in 2021, according to some estimates.
“Bridgeline’s eCommerce360 growth strategy was enhanced by acquiring Woorank and HawkSearch in FY21,” said the analysts. “The company anticipates it will increase spending on R&D and sales and marketing initiatives through our forecast period in order to support recurring subscription revenue growth.”
For its third quarter ended June 30, 2022, Bridgeline grew revenue by 22% to $4.2 million, compared to the same period a year earlier. In addition, gross profit increased to $2.9 million, up 30% from the same quarter in 2021.
Meanwhile, for the 2023 fiscal year, the Taglich Brothers are projecting a loss per share of $0.06 on 12% revenue expansion to $18.8 million, driven by 15% subscription growth to $15.5 million.
“We previously forecast a loss per share of $0.10. Our revised loss per share forecast anticipates gross margins of 70.9% (prior was 70.3%), compared to an estimated 69.4% in FY22,” said Taglich.
Woburn, Massachusetts-based Bridgeline is a digital engagement company that assists customers in maximizing the performance of their digital experience from websites and intranets, to online stores and marketing and promotional campaigns.
Bridgeline helps companies grow online revenue by increasing their traffic, conversion rate, and average order value with its Unbound platform and suite of apps.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive