Bridgeline Digital (BLIN) 10 Feb 222022 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Bridgeline Digital, Inc.

First Quarter 2022 Earnings Call. [Operator Instructions] Please be advised that this call is being recorded. [Operator Instructions] I would now like to hand the conference over to your host today, Thomas Windhausen, Chief Financial Officer. ahead. go Please

to and us operator, I'm everyone. you call. I'm Thank Chief XXXX our Thank quarter first My good name joining conference pleased Digital. Bridgeline today. Officer and you is for to Financial fiscal you, for afternoon, welcome Thomas the Windhausen,

quarter, On results update a we'll Digital's our discussion and and the business is for you who questions. CEO, highlights. Bridgeline this Kahn, afternoon then on of financial our will the call I'll taking by Ari President begin conclude with

Before today. impact business, of in made or performance. Changes materially Bridgeline's economic, and over XXXX. base this Section projections subject our by change we today pursuant from XXA events Section report which actual harbor not within the expressed such considered technological, and we and or The an Act of upon that we XXE be inform uncertainties Bridgeline as differ begin, XXXX competitive, that as measures, I'd public made time, cause statements results health future provisions like if materially to obligation no Act and the of the Securities are we conference Securities indication are and make forward-looking statements Results implied of to regulatory factors, of projections differ could remind the statements those Litigation expressly future from to may of risks today listeners the that Reform historical internal that during we to to forward-looking expectations and to meaning that facts Private of other disclaim you Securities assume safe are of call, Act do. actual beliefs and comments results. These they are the XXXX or such regarding of statements could the cause should not

that and our note Commission. Also, For the business, Digital and the measures measures the more on Exchange of financial a time to we time our financials impact by this non-GAAP these discuss earnings may Bridgeline will risks on provide other reports performance. please commenting reconciliation release. please documents factors non-GAAP We financial call to detailed company's filed in these review afternoon, with that our the some and GAAP information from Securities when about

our like You call now to can copy over President by obtain Ari our would a Kahn, release our of turn visiting the website. I CEO. to Ari? and earnings

$X.X to laid XX% and Subscription increased another total foundation Tom, revenue Thank good quarter that and for license had by great $X.X you, XX% We afternoon, which license the revenue million, makes growth. Subscription and everyone. now. up our continued of have paying customers the a ended signed after gross that cash, quarter automatically X-year and deferred million and annually acquisition costs in that XX% in generally and for WooRank was renew with margin, thereafter. We million engagements $X.X HawkSearch. initial revenues

existing winning balance to base organic that new are fact marketing cash us outstanding WooRank customer as our we adjusted across customer investments product Celebros delivered the positive growth and new positions and leading and sales base our customers, cross-sales continue deals. Our our and cross-selling and well. and customers partner-led our several in with into is innovation. HawkSearch EBITDA well

leads well in quarter, that momentum we've our last are first first grow. customers of in our sales as sales quarter. We new made new half network to our BigCommerce delivering Optimizely future Salesforce, customer are our And made year generating in as partner every expect month. We exceeded the second for sales sales. great already investments and the substantial

partners. like marketing cycles relationships a businesses, cost in otherwise revenue to than quarter, who pharmaceuticals, for won than ISV responsible the partnerships full-time Our at our have additional quarter, forward. with output channel addition achieve. and sales presence more generate exposes team their upsell in customers ever built with partner All could managers to with We've us to associations. sales strengthening as close a much thousands even X we opportunities marketplace rates are of bringing distributors Americaneagle.com, partnerships, dedicated prospective we agency and sales faster before. In companies, and efficient opportunities hospitals, we this gaming technology stronger our are with into us move multiple major greater expanding

their with websites. An a becoming in the XX,XXX gaining in Our signed it HawkSearch allows new the leader we users online license with to especially chose trends a web their DataBravo sector product intelligence another traction a identify intelligence multiple and BXB DataBravo for hit, company customers them also language of product the string processing market and SEO sales solution Natural promotional solution product language as WooRank company search to including content mines We're customizable marketing wins, power and the search our e-commerce is site. with over differentiators with electrical product quickly unique accumulated related long-term to plumbing. selecting search. has to customers a customers. promotional specific provide distributor The products crucial help and feature. We're by natural vertical, for recent preferred been competitive to to

customers Our sales product offerings organize help large and order and increase size. online their drive

in to and area, new distributors leading this from our deals. Bridgeline including We the have several BXB is excellent we multi-location other franchises presence differentiating expanding to businesses. capabilities and continue sector, us have in multi-location bring references

are Our and reputation and continue drive experience in new to this business. significant sector

Franchise product and the newest this there, at release We we'll will Conference present our later TruPresence. month, line, Association International

TruPresence suite of tuned e-commerce companies. apps, is a for specifically multi-location

invest year, in to can continue look We addition can only to and strategic we'll winning opportunities. an existing us to organic did we on which Europe. adjusted healthy to into our and sector technology emphasis we and great matches and a North EBITDA marketing The which selective find cross-sell in to and base a with as cash. positive our that offer customers. products are acquisition companies product as turn whom HawkSearch. Bridgeline sold continue shareholder in and have WooRank customer XXXX customers Officer, further sales just this customer globally, We Windhausen. to expect consider at are acquisitions, growth, value. At call Chief new America accretive, like Tom? committed We'll base with to products acquisitions has marketing that this Thomas as increase We over and Financial be well innovation evaluate and for many X innovation franchises the in sector. Last to company time, we made opportunities, to I'd continue allows our to is new be with

this for excited which with XXXX, of quarter further I'm share you the to ended Ari. afternoon. our first financial XX, fiscal XXXX, results you positive Thanks, with December

December year revenue ended is comprised million the of revenue, for XX, revenue XXXX, million the quarter prior services license $X.X which subscription both in period. $X.X total was versus and Our and

into going revenue. component Now each of

to Our ended for million comprised of XXXX, license December which XX, maintenance period. the and license in million prior revenue, SaaS from and increased licenses, XX% and $X quarter subscription the hosting is revenue, revenue, $X.X perpetual year

prior As revenue subscription that in This increased points as revenue a percentage December million percentage in XX, subscription prior of a percentage percent license to XX period. acquisitions of million and revenue, total high period. WooRank increase license revenue to year as prior $X.X of in XX% of revenue. Services also ended XXXX, which total have the quarter XXXX, XX% compared and of total driven increased the $X.X the for subscription compared a was for be by by ended and year HawkSearch, December quarter to revenue to revenue the XX, the

or XX, increased for ended a XX% for to total quarter. Cost December $X of percentage prior of total revenue period. accounted compared services the of XXXX, revenue As be to million revenue, $X.X quarter the revenue year $X.X in million for XX% million the

million ended XXXX, as in As December increased the compared a result, or year $X.X for quarter the to XX% $X.X XX, gross to prior be period. profit million $X million

in prior and XX, gross the versus the year. the margin to subscription ended X the the year Our services -- a for in the XX, quarter for compared licenses December XX% margins was in for ended revenue That compared December XX% prior XX% XXXX, to for period. months as margin for profit X XXXX, in and ended year XX% December XX% to months prior XX% increased

increased million on year $X.X expenses million $X.X operating operating increase from the to year of million XXXX, year's compared of quarter acquisitions. Income The for the period. costs operations from million prior XX, the a to in quarter December period. includes They ended operating prior to expenses. $X.X the last or $X.X loss from as for was the in Moving for operations income

in million as classified value fair compared we of income quarter liability $X.X resulted warrants, in for $X.X period. the our ended of prior December the loss million noncash year a to had For noncash a change XX, which

changes the of is primary value Our change of in price the the share in warrants. fair driver

in as per a of of for the million $X.XX net a net December to compared income XXXX, loss a share loss a quarter As $X.X basic EPS or or million a XX, was per result, The fiscal share ended in basic $X.XX $X.X prior value quarter the in adjustments driven $X.X prior primarily compared for year by EPS the to period. was $X.X That the EBITDA fair net for year. in the million income of resulted adjusted warrants. change million the

Moving sheet. to our balance

were at on answers. and and $X.X success, $X.X to $X.X open joining total million and receivable At of in XXXX, value. Thank $X.X $XX.X December when us XX, our to time, technical million. million. We growth, look today. mentioned, our September on continued liabilities million questions this you expanding success we'd continue of -- to had accounts XXXX, cash focus revenue XXXX accounts XX, and And million delivering XXXX, were As and compared shareholder the like total have customer of million $XX.X we to receivable at as to we forward already Operator? call we September and up beyond cash call assets the for XX, innovation of at December

question [Operator Halpern comes Howard Taglich Instructions] our And first Brothers. from from

quarter, Great guys.

Howard. you, Thank

is First helping do your question or that sales drive the And partner you networks. partner really envision growing? of how you development to growth? that relates How

really great. It's

just focused are they explain can the need to both ways. The conjunction them, have Salesforce, a our people a like buy customers quick is and the their BigCommerce, the Optimizely, to ISVs, platform already Optimizely management and top agencies. the webinars runs drive their one; this already in. full-time content They're X in platform, platform us partners. sales help rather how And in And they on of. generally on base software that marketplaces. got because great selling solutions BigCommerce, different. them. This include cycle software software classes there for software invested we've results don't With an been help are independent more in have of generally we've our So X They there they've add-on revenue they to to which vendors; are there's ISVs, hosting with very partners: customers that customer our

needed that And in their to the small buy customers And who include success, grow customers are sides trusted different relationships. fit Optimizely, we one have webinar for the platforms and any marketplace, the us -- great us the they tremendously. that, We're growth us. find are in attend just marketplaces, so these: BigCommerce, to for can full of for of their as billion to doing browse technologies got Optimizely, agencies are who market. software. And see ability a that to more huge we've Salesforce, their relatively in agencies, and addition all I these the In opportunities advisers to can with our for us $X recommendations. Both than like a for even example, don't and reselling it digital implementation our

And Okay. achieved penetration program X what have you ago? more kind talk customers gained you that little of year from cross-selling about about have? you can you a or And a bit that the

Yes. Yes.

what that's exactly get so that's spend want have don't you X the this to within cross-selling because we attention customers, have full-time quarters ads today, anything any -- your people to X. more marketing We dedicated and or existing base. to or quarter So -- than did sold -- our to new to running great. Wait, existing customers. to customers dollars software we X, X, of we That's our customer new X

customer So is much cost your lower. acquisition

another selling them for selling responsible then customer existing that. have pipeline. customers. licenses, where for they're further And call responsible renewals we success, software. our They're one pipeline customize they they're finally, Our services, so team, and have for they responsible of They that's professional for also

sell have They've part for companies inorganic So products strategic a a to great into. they both products going exceeded have sell success our and quarter. goals success can forward. growth the our their can be into current customer And of team will acquire customers team our pipeline our current base that customer customer that our that also got

and they integrate seeing and also into future or upgrade getting need to continuing fit what how that have, product are the of expand want terms technology in And Okay. might and feedback you you customer that on offerings?

Absolutely.

in also from deadlines. that's it customers management. They have responsible customers, and from management. team to information present map to own from and set that directive information our for management our and are our and is competitors, compile then analysts existing product called people and our So There their product engineering X collect to team; road that to for is -- executive prioritization from

We have customers that road key them they show briefing meetings where to on with regularly map. fit

now. that's perhaps to our on our pretty priority paid And perspective. us. a customers road going our set. pay that accelerate from We those for have is the market want coming pay customers And into product years high that not a sometimes, on feature map. feature always a for particular And instances, a feature for the been R&D much They in broader

Now that and X-Eleven, the suite at What consistent well, Association like in Graphics, Clips, franchise International we're we're Franchise related software TruPresence. that very one's UPS that packaged to strong chance We've expand No is weeks, now got customers customers is of space us store. We've foothold our We've into our customers. TruPresence debuting on have them very competition. focused in a for announcing X got CVS And Conference all a now, like to bring market time. responded we're of we this got a technology needs. -- specific being features. space. to Alpha right announce going We've the is, the is those. Sport is a to where They all franchise can in has very little today. Those

for us almost of So is the entry nothing. barrier

last just one Okay. And one.

are couple Over mix? a might the anticipate next you you where you in stay? now Or XX-XX of where split is the years, revenue getting do to maybe

XX-XX. as are to we will increase Yes. that I that our actually know percentage it going revenue. be think don't of license a I

that think I number. we're I healthy close, think is a XX-XX and

on expand me Let that.

So customers, making increases the time terms only of of but customers. customize. software first for more our is consulting costs our there the of implementation for dollars out that have of theirs a all, on investment believe to we our and more return on Not if they in box lot

a we of big have So box. prioritization out the of

a from when implement tremendous some has engaged our needs, and Now with that deeply needs. said, unique we every customer to learn those customers amount we're them

like for although TruPresence XX-XX which think like is healthy. the a example, technology completely click products, got of is we've we'll point our continue So require like and WooRank, space marketing that Pages, buy, is hands-off, products ratio And some and many to we have that implementation. TruPresence products in

comes Hirschman question Orin And our Partners. next AIGH from Investment from

ago some And licenses now is to and be SaaS? of to as they customers, it a the of there years able are they opportunity the existing site TruPresence, ones, some of to chance few In lot terms to upsell that an of existing bigger well customers, customers as a convert expand? of were were the some the

That's exactly right.

customers, is already we've into and TruPresence begun already TruPresence brand, under for now packaged specifically and them, cross-selling we've being TruPresence brand. begun, under customized the franchise the So everything not but

Google's make One perspective, of WooRank companies have they selling their so giving it for view it by visible. In increase of each that our franchisee them is website can the local products the into has franchise franchise competition. website biggest the tune the been from to a WooRank. traffic customers individual space, that and allows more

their competition. competing shop so compare can And not barbershop that the Sport local the the themselves of across to with chain. allows they're Clips, ours, barber national them much customer a to WooRank You really imagine barbershop street,

So that's big. very

as are collects is groups Again, second about space. The what the advises a of group. DataBravo. sites that beat information competitively and one to in DataBravo opportunities to everybody franchise great

a seeing the from strong coming we're franchise. of gate, cross-sell So demand we're the franchise of really lot in customers. Out

of and franchise. they big feeding Myers Global, like got be Triumph We've Motorcycles, Allergan, brands some needs. operate MRC And franchised, in but exactly to customers a Sanofi, this we're of space. been are a very AstraZeneca. lot We've big with information, got not strong us Squibb, going They've these Sears, Bristol

product familiar the a just Could on mentioned. that. before, any about just product product you that I'm a refresh it's it tells you us that And You more mentioned yet? -- DataBravo tell it. not with new us -- If have sold you product, of

we Yes, have sold.

fact, In had a we sale this quarter, DataBravo. strong very of

marketed. wasn't product that the being So within DataBravo -- minor was really a company is a WooRank

it at we launched collects an combines the information fact, -- up individual on that WooRank all the DataBravo WooRank information from even acquisition. identifies the recommendations with WooRank companies pharmaceutical information team an that's and the information. We've it. DataBravo the finished industry customers, are In actual as so company using website. be instance, we intelligent launched time broader DataBravo wasn't selling, fintech websites. and company reflects acquisition trends got makes it sales a all competitor about did competitive it licensed it for is evaluate opportunities information. from set for using basis. a data to can a collect We've online to that And from got that

So it's and hidden close don't gem and a of WooRank. inside that was of I powerful data that very even anyone we DataBravo, data. has a free to for got know it set unique

long because like how sounds though, by does -- long officially on, it's It was launched? -- how WooRank, early this this

customers, between for data. now, And was $X,XXX July. there. launched It the paying the I to $XX,XXX are around access and believe, we a officially customers X month in have, And something generally right

Okay.

as So this is a SaaS offering, offering multiyear SaaS well.

Subscription. Yes. Yes.

WooRank I'm the not and customers? product, move be idea HawkSearch other into the a that quickly, use it customers? difficult understand to can sure... product able it possible Or sell sounds people to like to this very to very Is the it's

And sold we other closed, quarter in not that in to at that this just all. move customers it we it WooRank were is It into fact, possible to new customers. group the the

it's interesting allow in demand. And got us industry. data set it's that's with is be that to to for another thing going that TruPresence one DataBravo So a no have has else going to

a brand that additional get a to they away order after will stuff. taste different give generate stronger we'll the able in inside free franchise, of information be a franchises of data the license Some then to to and

were question. And the in Okay. to final of percent QX search? sales What related

approximately related In the number. have XX%. the sales license were I QX, exact don't

is bit very organic businesses We opportunities. M&A a search can a that That space. see a crowded of is area growth. little think the on we us. So driving strong. for And front, It's search It's our space. in we accumulate growth

it growing double is And digits?

Yes. at XX%. nearly It's growing

Organically?

growth, Organic yes.

box, Is there do of opportunity Can a having said, install, off growing And speak, real brand, that can What without you you to customization easier the the you accelerate if to opposed big or further? do it of make you do? it the what obviously, that must name aspect? as so capability. further? so, to be Because, out like it's fast, to

Yes.

couple So a things there. of

space is these CVO.TO. ton and competitor. C-O-V-E-O, So they're there's look can is They of for it the lot The at a you just guys growing. BigCommerce, important. ticker making really nobody a easier very They this owns a are of on -- take it. their drive But a And Coveo, Salesforce, healthily. Exchange. to They've public trading in November went install a majority in partnership should us. And Toronto been leads important. is

than other what as opportunity you to can fast it or search. and else, companies purely grow of when on anybody So they're do focused an example an faster we've got gives

enough obviously, maybe still and question or shuffle. And a lost marquee get a is in my is like don't partner BigCommerce you small also name yet the just, final

sales? that like first have the yet guess online online -- they yet begin I with sales? So that, meaningful they come does Have really earn? come When a and with partner so

with with had think, but had jointly they've a that already for we we've and I this them way, pipeline less their we're So in provided webinar, a last BigCommerce And reaching a sales We us. them. joint organized And formal quarter. next with customers, contract. sales out to to prior week without got

to Salesforce less huge, organized So in basically harder for get the Optimizely the is they're and generates well. position. nevertheless, a relationship sales going little of their to attention in right same keep now. And us but, -- is as terms

today. several of all partners, we have from So customers existing these

is Right. saying But what the relationships. on it's you're early in

Hawk the quarter X right. partnerships every Hawk partner quarter, it; sale early but I before that, That's to all a the almost expecting to had on. sale. attached It's be or to And X. am attached Last every

So it's a important part our lead of gen. very

-- would I would Instructions] closing back I Ari Kahn call no and go for showing the [Operator now further ahead over ahead like remarks. to go and like to now turn questions. to I'm

growth again Stay today. you, We're Thank shareholders. for the speaking on continued business the ongoing well. excited look of forward and our fiscal our 'XX appreciate to We customers everybody, and Thank model conference joining QX our with us support call. healthy about and our you. and you opportunities,

conference today's concludes for you call. This Thank participating.

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