Bridgeline Digital Reports $3.8 Million Revenue and $634,000 Net Loss for December Quarter

Bridgeline Digital, Inc. reported its financial results for the quarter ending December 31, 2024, revealing total net revenue of $3.8 million, a slight increase from $3.75 million in the same period last year. The company experienced a net loss of $634,000, consistent with the loss of $622,000 reported in the prior year. The basic and diluted net loss per share remained unchanged at $(0.06) for both periods. The revenue breakdown showed that subscription and perpetual licenses accounted for $3.05 million, while digital engagement services contributed $743,000, reflecting a 1% increase in the latter compared to the previous year.

In terms of operational performance, Bridgeline Digital's gross profit for the quarter was $2.54 million, down from $2.55 million a year earlier, resulting in a gross profit margin of 67%. The total cost of revenue increased to $1.26 million from $1.20 million, primarily due to higher server costs and lower personnel costs in the subscription segment. Operating expenses decreased to $3.05 million from $3.19 million, driven by reductions in research and development costs and restructuring expenses. The company reported a loss from operations of $511,000, an improvement from the $635,000 loss in the prior year.

Bridgeline Digital continues to maintain a customer base of over 2,000 active clients, with no single customer contributing more than 10% of total revenue. The company has also been focusing on expanding its product offerings, which include various AI-powered marketing technologies designed to enhance online revenue for businesses. The firm operates under a Software as a Service (SaaS) model and has a presence in multiple countries, including subsidiaries in India, Canada, and Belgium.

Looking ahead, Bridgeline Digital is committed to maintaining tight control over discretionary spending while exploring future financing options, including a potential new shelf registration statement to replace its existing one, which is set to expire in March 2025. The company believes that its current cost structure will support future revenue growth, although it acknowledges the ongoing challenges of achieving profitability amid fluctuating market conditions. The management remains optimistic about the potential for increased revenues and cash flows to bolster working capital in the coming fiscal year.