Bridgeline Digital (BLIN) 2026 財年第三季法說會：核心營收成長使虧損收窄

Bridgeline Digital (NASDAQ: BLIN) 公布截至 2026 年 6 月 30 日的 2026 財年第三季營收為 390 萬美元。核心產品成長與營運費用的降低，有助於縮減淨虧損與調整後 EBITDA 虧損。

主要重點

• 總營收由去年同期的 380 萬美元增加至 390 萬美元，而核心產品營收則由 220 萬美元成長至 240 萬美元。
• 核心產品占總營收的 62%，占訂閱營收的 66%，高於去年同期的 57% 與 58%。
• Bridgeline 簽下了 9 家新客戶和 19 份訂閱合約，創造了 170 萬美元的總合約價值以及超過 37 萬美元的年度經常性營收 (ARR)。
• 核心淨營收留存率為 106%，反映出核心產品組合中的客戶留存與業務擴張。
• 淨虧損由 80 萬美元縮減至 50 萬美元，而調整後 EBITDA 則由負 33 萬美元改善至負 10.2 萬美元。
• 管理層預計公司在 2027 年將大致維持現金收支平衡，部分季度可能呈輕微負值，其他季度則呈輕微正值。

關鍵財務數據

業務與營運表現

HawkSearch 仍是主要的成長引擎。公司平紀錄地贏得 9 家新客戶，同時有 10 家既有客戶購買額外授權。由此產生的 19 份訂閱合約帶來了 170 萬美元的總合約價值和超過 37 萬美元的 ARR。

新客戶包括一家美國批發分銷商，該公司在為期 14 天的銷售週期後，選擇在 BigCommerce 平台上採用 HawkSearch。該部署覆蓋約 2.5 萬種產品及每月超過 45 萬次會話。

一家居家與園藝供應商在其 B2B 及直面消費者 (D2C) 產品組合中上線了合約中五項部署的前兩項，涵蓋約 8 萬個 SKU。一家大型企業批發分銷商亦為其五個電商網站選擇了 HawkSearch，未來有可能擴展至八個。

HawkSearch 在 Gartner 的《2026 年搜尋與產品探索關鍵能力報告》中，於 B2B 搜尋應用場景排名第一，為連續第二年獲此殊榮。Bridgeline 還報告指出，其 AI Agent Suite（包含 Shopping Assistant 和 Analytics Assistant）的採用率與潛在客戶管道活動有所成長。

管理層展望

基於當前核心業務的成長與舊款產品的流失情況，管理層預計明年核心產品占總營收比重將超過 70%，占訂閱營收比重將超過 75%。公司表示，在這些條件下，核心業務達到雙位數的年複合成長率可轉化為總營收的雙位數成長。

Bridgeline 目前每季在潛在客戶開發上花費約 35 萬美元。管理層引述內部營運協同效應與擴大人工智慧應用，預計能在無大幅現金消耗的情況下維持該支出水準。

展望 2027 年，管理層預計現金流將大致保持平衡，視季度不同呈現輕微正值或負值。公司打算優先進行成長型投資，而非追求短期現金產生的最大化，同時尋求避免進行非增值性的資本募集。

風險與關注焦點

儘管淨虧損與調整後 EBITDA 有所改善，Bridgeline 本季度仍處於虧損狀態。訂閱及服務毛利率亦較去年同期下降。

舊款產品的流失持續抵銷 HawkSearch 及其他核心產品產生的部分成長。管理層對於總營收達到雙位數成長的預期，取決於核心業務能否持續擴張並在營收組合中占據更大比重。

公司在本季度末擁有 150 萬美元現金。管理層表示，可裁量廣告支出提供了管理現金流的靈活性，但其現金收支平衡的展望仍取決於營運表現與支出紀律。

投資人問答焦點

管理層表示，由 2025 年 3 月資本募集所資助的銷售與行銷投資帶來了正面回報，並指出新客戶銷售額已連續兩個季度刷新紀錄。目前的潛在客戶開發支出約為每季 35 萬美元。

被問及核心業務成長何時能抵銷舊款產品下滑時，管理層表示，核心產品已占總營收的 62% 與訂閱營收的 66%。預計明年這些數字將分別上升至 70% 和 75% 以上。

管理層還強調了 Bridgeline 正從數位代理商併購平台，轉型為以 HawkSearch 為中心、並由能產生現金的舊款產品及截至 2026 年 6 月 30 日負債 18.7 萬美元之資產負債表所支持的軟體導向企業。

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管理層陳述

Operator

Good afternoon, and welcome to Bridgeline Digital's Third Quarter 2026 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Tom Windhausen, CFO. The floor is yours.

Thomas Windhausen

Thank you. Thank you very much, and good afternoon, everyone. Thanks for joining us today. My name is Tom Windhausen, I'm the Chief Financial Officer of Bridgeline Digital, Inc. I'm pleased to welcome you today to our fiscal 2026 third quarter conference call. On the call today is Mr. Ari Kahn, Bridgeline's President and CEO. He'll begin the call with a discussion of our business highlights. And then I'll update you on our financial results for the quarter, and we'll conclude by taking some questions.

Before we begin, I'd like to remind everyone that our remarks and responses to your questions today may contain forward-looking statements, and those are based upon current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including, without limitation, those identified in the Risk Factors section of our most recent annual report on Form 10-K, our most recent 10-Q filing and the company's other filings with the Securities and Exchange Commission.

Such factors may be updated from time to time in our filings with the SEC, which are available on our website. We undertake no obligation to publicly update or revise our forward-looking statements as a result of new information, future events or otherwise. Be advised that today's results should not be viewed as an indication of future performance. This call will also include references to certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAAP. We generally refer to these as non-GAAP financial measures.

Reconciliations of those non-GAAP financial measures to our most comparable measures calculated and presented in accordance with GAAP are available in the earnings press release on the Investor Relations portion of our website. I'd now like to turn the call over to Mr. Ari Kahn, Bridgeline's President and CEO. Ari?

Roger Kahn

Thank you, Tom, and good afternoon, everyone. Before I review the quarter, I want to briefly frame what Bridgeline does and why our strategy matters. Bridgeline is a MarTech marketing technology software company that helps businesses grow online revenue by delivering more traffic to their websites, converting more visitors of those websites into purchasers and increasing the average order for each purchase.

Our software supports both B2C and B2B businesses, and we're particularly strong with manufacturers and distributors that manage complex catalogs and sophisticated digital commerce requirements. As Bridgeline has evolved, certain products have shown such great promise that we drive most of our R&D and marketing investments towards them.

Collectively, we call these products core, and we use the term legacy for the rest of our products. Our core products include HawkSearch suite of AI-powered search and product discovery solutions. Our legacy products continue to contribute profit that helps fund investments and growth in the core product lines. Because our financial statements consolidate core and legacy, total company results do not always show the revenue growth profile of our core business.

That's why we also discuss core revenue mix, core net revenue retention, core growth and new annual recurring revenue for our core products. Sales momentum remained strong in the third quarter. Last quarter, we set a record of 9 new customer wins. And this quarter, we tied that record. In addition to winning 9 new customers, 10 existing customers purchased additional license from us, resulting in 19 new subscription contracts and $1.7 million in total contract value with more than $370,000 in annual recurring revenue.

This performance demonstrates continued demand for our AI-powered product discovery solutions across both new customers and expansion opportunities. Core net revenue retention was 106%, reflecting strong retention and expansion across the core customer base. Core product revenue grew to $2.4 million for the quarter compared to $2.2 million in the prior year period and 13% growth in the trailing 12 months. Core revenue is now 62% of total revenue and 66% of subscription revenue compared to 57% of total revenue and 58% of subscription revenue in the prior year quarter, respectively. Investors and stock analysts often ask us to separate core and legacy revenue to provide additional details for valuation calculations, recognizing the inefficiency in capital markets for microcap stocks such as Bridgeline because core and legacy products have different growth profiles, they also have different valuation metrics.

Growing AI SaaS companies with products like our core product lines are often valued with a multiple of 3x SaaS revenue and 1x services revenue, for example. Nongrowing SaaS companies that generate gross profit like our legacy product lines often have multiples closer to 1x SaaS and 1.5x services, for instance. Investors may use such multiples with our legacy revenue results in addition to the value of our core products for valuation analysis. The third quarter marked a record time quarter for new customer acquisitions, 9 customer logo wins, 19 subscription contracts in total.

And examples during this quarter include a U.S.-based wholesale distributor of pet, farm and garden and home products, who selected HawkSearch for its BigCommerce e-commerce platform following a 14-day sales cycle. That's right 14, 14. That's how quick the sales cycle is.

The deployment supports approximately 25,000 products and more than 450,000 monthly sessions. Another win for the quarter is a leading home garden supplier who launched the first 2 of 5 contracted HawkSearch deployments across its B2B and D2C direct-to-consumer e-commerce portfolio, covering approximately 80,000 SKUs with additional deployments scheduled for the future.

A large-scale enterprise wholesale distributor selected HawkSearch to power search and product discovery across 5 commerce sites with the potential to expand to 8 sites. Collectively, these wins and launches demonstrate HawkSearch's strength in complex commerce environments, including large product catalogs, multisite deployments, wholesale distribution networks and sophisticated B2B buying experiences.

On the product side, HawkSearch was ranked #1 for the B2B search use case in Gartner's Critical Capabilities for Search and Product Discovery of 2026. This is the second consecutive year that HawkSearch was selected to be #1 for B2B search by Gartner. This recognition is particularly meaningful because Gartner is widely relied upon by organizations when evaluating technology platforms.

Unlike consumer commerce, B2B organizations must support customer-specific pricing product entitlements, complex catalogs and purchasing workflows designed for professional buyers rather than casual shoppers. HawkSearch leadership in B2B commerce reflects its deep expertise in solving these challenges for manufacturers, distributors and industrial suppliers, helping earn recognition as the highest scoring solution in Gartner's B2B use case. This quarter, we expanded the adoption of HawkSearch AI Agent Suite.

Customer sales and pipeline activity grew for Shopping Assistant, Analytics Assistant and other AI-powered commerce tools as businesses increasingly look to use AI to improve product discovery and online revenue with HawkSearch. Customers and business buyers alike are becoming more accustomed to conversational experiences that allow them to ask questions, receive recommendations and quickly find products that they need. HawkSearch provides this experience to our customers. In addition, we advanced the Hawk AI Shopping Assistant with our Aura AI Agent Framework to connect product discovery with inventory, pricing, entitlements, order history and other commerce workflows. Together, these innovations help customers deliver more intelligent personalized buying experiences across both B2B and B2C commerce environments.

Our strategy is to continue growing core revenue, expanding ARR through new customers and existing customer adoption, maintain strong retention and use AI to help customers drive more revenue from their digital commerce operations. The quarter's sales, customer deployments and product progress reinforce HawkSearch's value for businesses with complex catalogs, multisite requirements and sophisticated B2B commerce needs. Now I'll turn the call over to our Chief Financial Officer, Tom Windhausen, to share details. Tom?

Thomas Windhausen

Thanks, Ari. I'll provide an update of our financial results for the third quarter of fiscal 2026, which ended June 30, 2026. Total revenue for the quarter ended June 2026 was $3.9 million compared to $3.8 million in the prior year period. And as we look at the components of revenue, our subscription revenue, which is comprised of SaaS licenses, maintenance and hosting was $3.1 million for the quarter ended June '26 compared to $3.1 million in the prior year period.

Subscription revenue was 79% of total revenue compared to 81% in the prior year. Services revenue was $0.8 million for the quarter ended June '26 compared to $700,000 in the prior year period, and our services revenue accounted for 21% of that revenue compared to 19% last year. Cost of revenue was $1.4 million for the quarter ended June '26 compared to $1.3 million in the prior year, and our gross profit then was $2.5 million for the quarter ended June '26 compared to $2.5 million in the prior year period. Our overall gross margin was 46% for the quarter ended June 2026 with subscription gross margin of 69% compared to 70% in the prior year and services margin of 47% compared to 50% in the prior year. Our operating expenses were $3.0 million for the quarter ended June '26 compared to $3.2 million in the prior year.

And our net loss then was only $500,000 for the quarter ended June '26 compared to a net loss of $800,000 in the prior year period. Moving to adjusted EBITDA. Our adjusted EBITDA for the quarter ended June was negative $102,000 compared to a negative $330,000 in the prior year same period. And moving to our balance sheet. On June 30, the company had cash of $1.5 million and accounts receivable of $1.2 million. Our total debt outstanding as of June 30, 2026, was $187,000 with a weighted average interest rate of 3.5% and principal payments due equally through 2028.

At June '26, our total assets were $15.3 million and our total liabilities were $6.4 million. Finally, a quick update on our cap table, which as of June 30 included 12.6 million shares, 660,000 warrants and 2.1 million options. Of those 660,000 warrants, 592,000 of them with a $2.51 exercise price expire in November 2026, with the remaining 70,000 warrants not expiring until March 2030 at $1.88 exercise price.

Thomas Windhausen

We'll now transition over to a Q&A period. But operator, as you check for those questions, I do have some questions that were sent in advance, so we will start with those. We had questions come in from a long-term investor. 3 questions. First question, about a year ago, we had the $2 million capital raise. And then we mentioned that we'd be spending roughly $500,000 a quarter in advertising for the next 4 quarters. So now for these upcoming quarters, how do we see our advertising spending currently?

Roger Kahn

So March 2025, we raised $2 million above market explicitly to invest in ad spend for sales and marketing to capitalize on the momentum that we've been seeing at that time, both by experimenting with new lead sources and then expanding investments in existing ones. I'm happy to say that this was a successful investment, as shown by the last 2 quarters of record new logo sales, right?

So when we invest in sales and marketing, it's not so much about upselling existing customers, which is an important part of our growth, but in attracting new ones. We did experiments. We expanded investments in known lead sources. And all in all, we had good ROI.

Today, we're at about $350,000 per quarter in lead spend. And going forward, even though we've deployed most of the capital from that raise, I think we got $1.5 million in the bank at the end of this quarter.

Going forward, we expect to be able to remain at the current level. We've created several synergies within the business that will allow us to maintain this level of ad spend investment without significant cash burn. And I'm happy to say that thanks to our internal sophistication with artificial intelligence, we've become a much more efficient organization than I think many have.

Thomas Windhausen

The second question talks about pipeline. So the nature of our business is that we have revenue coming in at the back of the pipeline -- sorry, we have more business and revenue coming in the back of the pipeline than ending at the front of the pipeline. We understand that these forward-looking statements, but can we get an idea of how cash flow will progress over the next 2 quarters? And will it be positive?

Roger Kahn

Got it. Sure. Yes. Well, that is the nature of SaaS in general from a cash flow perspective. You're signing multiyear contracts and a lot of times, the payback, customer acquisition cost payback in the MarTech sector is 24 months or higher.

And the great thing about this industry is that once you lock in these longer-term contracts, you take your foot off of the gas and start -- I don't want to say [ cruising ] money, but it's not a bad place to be in, and that's where we're heading.

We do ensure that our negative cash flow is less than our discretionary spending so that it's easier for us to manage cash flow without having to, for example, change headcounts, but instead pull back on things like specifically ad spend. And that we always have more than a year of cash. So we balance our spending growth and are going to likely remain cash neutral, which is kind of where we are right now.

In 2027, that means some quarters will have minor negative and others minor positive. But our strategy in 2027 is not going to be a bottom line focused cash-generating business. We think there's greater shareholder value in investing as much as we can in growth without positioning ourselves to have to do a non-accretive capital raise. And as the largest investor in the business, I am well aligned with that thought process.

Thomas Windhausen

Excellent. Next question asks about some history. So it acknowledges Ari has been with the company for the last 10 years, seeing lots of changes in the business. What is it that we could share with shareholders in regards to our financial health now compared to the past? And secondly, if someone asked why they should invest in Bridgeline, what do you tell them?

Roger Kahn

It's dangerous I could go into all sorts of ancient history and talk for a long time. I'll try not to. When I first came -- became involved in Bridgeline, it was a completely different company. It was a roll-up of digital agencies, made a valid attempt at being that type of entity, but it wasn't quite working. The revenue was declining. The company was burning a lot of cash and the cap table was problematic.

I invested in the company. I originally invested about -- I think it was $250,000 before I became actively involved from a management perspective because specifically, I saw that there was a lot of value in the customer base that the software that it did have could be cash generating and that the market space overall was getting ready for a lot of opportunities to happen and one could see exactly where they were.

But I've been around the block long enough as one of the founders in content management back in the dot-com booms and with the PhD in AI to have a good sense that we could do something special with the business. So we started off really resetting the company, looking for acquisitions. Now we're talking about the 2016, '17. It took a little while. We found Celebros, which was really an important acquisition for the business in terms of getting the direction into -- getting the business pointed in a direction to be squarely a software company that can be partnered with e-commerce platforms and agencies. And Celebros is really a competitor to HawkSearch and is in a growth area well positioned for AI. We acquired OrchestraCMS and WooRank, both of which are cash flowing.

And after a long courtmanship with HawkSearch, it took several years to make that happen, but HawkSearch is such a great product, we were able to make it happen. We did that acquisition and shifted towards a company that has a true opportunity for organic growth. Now it doesn't mean that everything is going to be organic going forward.

But with that type of a platform, we became a business with a clean cap table, with a clean balance sheet with a growing software with small competitors and great partners. I, at that point, personally invested well over $1 million in common stock open market buys, supporting the business. We did an above-market raise, which we spoke about just a minute ago to test out and expand on the sales and marketing capabilities.

And today, I think that you're really in a position where you've got a well-aligned leadership team, money where their mouth is all in with deep experience in AI, right? My experience in AI is from the early 1990s. So this isn't like Johnny come lately stuff, deep experience in e-commerce, super successful, but successful in the dot-com e-commerce space.

But most importantly, a truly well positioned product that delivers clear value to its customers, whose customers put their money where their mouth is and reinvest and expand their investment in the HawkSearch product suite that is squarely in the sweet spot for artificial intelligence.

Search, product discovery and agent recommendations are exactly what large language model with this particular form of artificial intelligence are best at, and you don't need to be a multibillion-dollar business to implement that stuff. It levels the playing field where a dedicated, well-aligned team like Bridgeline can leapfrog over other businesses and deliver outsized investor returns. And I don't want to understate this at all. Clean cap table and balance sheet is an important part of all that and huge investor alignment is as well.

Thomas Windhausen

Excellent. We had one other question from a different investor came in. Is there an expected time frame for the growth in HawkSearch's core business to offset the decline in the legacy business? So when we can start seeing that growth.

Roger Kahn

This is an important aspect because one of the challenges for Bridgeline investors is transparency. We spoke about it at the beginning of this, really be able to understand because we've got this dichotomy of legacy and core products, when do the core product dominate everything so you can truly just count on the cumulative revenues and expenses as representing the vast majority of the business and see exactly where everything is going. And it's been a little bit of a long haul game there, and I think it's been a worthy investment. Today, our core is 62% of revenue, 66% of subscription revenue.

And at the current -- at our current growth rates, our current growth rates, which I think are going to accelerate, but at the current rates and the attrition of legacy that is kind of part of the equation. I'm expecting us to be over 70% of core next year and over 75% of core subscription next year. That means the double-digit CAGR, compounded annual growth rate in core should deliver double-digit CAGR in overall revenue as well.

And that's when you really start seeing, I think, the multiples for HawkSearch overall starting to look more like what you see for a typical software company that has a single product that looks like our core products. And my expectation is that there'll be some happy investors at that point.

Thomas Windhausen

Excellent. Thank you. Operator, are there any questions that have been submitted any questions pending on the line?

Operator

I'm not seeing any questions in the queue at the moment. [Operator Instructions]

Thomas Windhausen

We'll wait 10, 15 seconds here. Right. If no questions have further come in, we'll wrap up the call.

Roger Kahn

Well, everybody, thank you so much for joining us on our call today, and we really appreciate the continued support from our investors, but also our customers and partners. We remain confident in Bridgeline's opportunity to help customers drive more online revenue through AI-powered product discovery or complex commerce solutions. And we also look forward to speaking with you again on our fourth quarter fiscal 2026 conference call. Until then, be well.

Operator

Thank you very much. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. We thank you for your participation.