Bridgeline Digital Stock Earnings Reports

Bridgeline reported modest revenue growth in Q2 FY'25 (total revenue $3.9M vs $3.8M yr/yr) driven by subscription/license strength (79% of revenue). Core e-commerce products (HawkSearch, WooRank) showed momentum: 20 licensed sales in Q2 adding $1.7M in contracts and $700k in ARR, YTD bookings of $4.2M with $1.6M in ARR (24% YoY increase in first-half new ARR). Management highlights strong unit economics (CAC payback under 20 months, LTV:CAC about 3x, average initial contract ~30 months, net revenue retention 113%) and fast sales cycles (120 days, 19% win rate on qualified leads). The board/executive team raised $2.2M in March to more than double ad spend (launched April 1) to drive lead generation; management expects increased deal flow ~120 days after the spend and revenue impact in Q1 FY'26. Product and partner progress includes multiple AI product releases (Smart Conversation, Smart Response, Rapid UI 2.0), SDKs (BigCommerce Catalyst) and partnerships (Shopware, Groove Commerce), supporting expansion into B2B and international markets. Profitability remains a near-term challenge: operating expenses rose (to $3.4M) and the company reported a net loss of $700k and adjusted EBITDA of negative $239k. Balance sheet: cash of over $2.7M, modest debt (€374k), and a post-raise share count of ~11.9M. Key investor considerations: the planned marketing ramp could drive outsized ARR growth if historical unit economics hold, but near-term spend increases will pressure GAAP losses and cash burn until new bookings convert on the 120-day cadence.