Bridgeline Digital Reports $3.9 Million Revenue and Increased Net Loss for Quarter Ending March 31, 2025

Bridgeline Digital, Inc. reported its financial results for the quarter ending March 31, 2025, revealing total net revenue of $3.9 million, a slight increase from $3.8 million in the same period last year. The company experienced a net loss of $730,000, compared to a loss of $602,000 in the prior year. For the six months ending March 31, 2025, total net revenue was $7.7 million, up from $7.6 million, while the net loss widened to $1.4 million from $1.2 million. The basic and diluted loss per share for the quarter was $0.10, compared to $0.06 in the previous year.

In terms of revenue composition, subscription and perpetual licenses generated $3.1 million for the quarter, slightly up from $3.0 million, while digital engagement services remained stable at $823,000. For the six-month period, subscription revenue held steady at $6.1 million, while digital engagement services increased to $1.6 million from $1.5 million. The gross profit margin improved to 68% for the quarter, up from 66% a year earlier, reflecting effective cost management despite rising operational expenses.

Bridgeline Digital has made strategic moves, including a registered direct offering of 1,000,000 shares at $1.50 per share, generating approximately $1.5 million in gross proceeds. Additionally, the company executed a private placement of 473,979 shares at $1.52 per share, raising around $720,000. These capital-raising efforts are part of the company's strategy to bolster its financial position and support ongoing operations and product development.

Operationally, Bridgeline Digital reported over 2,000 active customers, with no single customer accounting for more than 10% of total revenue. The company has maintained a focus on enhancing its product offerings, which include AI-powered marketing technologies designed to drive online revenue for clients. The company’s employee headcount remains stable, supporting its operational needs as it navigates the competitive landscape of digital marketing solutions.

Looking ahead, Bridgeline Digital aims to continue its focus on revenue growth while managing costs effectively. The company plans to maintain tight control over discretionary spending and believes that future revenues will enhance its working capital. However, it acknowledges the potential risks associated with market conditions and competition, which could impact its ability to achieve profitability. The company remains committed to leveraging its technology and expanding its market presence to drive long-term growth.