Bridgeline Digital Inc
For the period ended Jun 30, 2024. Filed Aug 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 14, 2024
BLIN$0.62-7.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-14.
0001437749-24-016714
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-14.
0001437749-24-026874
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 133 previous paragraphs and 135 current paragraphs.
77 unchanged; 40 reworded; 17 added; 16 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
Revenue from digital engagement services of $0.9 million for the three months ended June 30, 2024 increased from $0.7 million for the three months ended June 30, 2023.
Current report
Revenue from digital engagement services of $2.4 million for the nine months ended June 30, 2024 remained consistent with $2.4 million for the nine months ended June 30, 2023.
Current report
The increase in revenue from digital engagement services for the three months ended June 30, 2024 was a result of additional services volumes in the three months ended June 30, 2024.
Current report
Total cost of revenue of $3.7 million for the nine months ended June 30, 2024 decreased from $3.8 million for the nine months ended June 30, 2023.
Current report
Cost of subscription and perpetual licenses of $0.8 million for the three months ended June 30, 2024 remained consistent with $0.8 million for the three months ended June 30, 2023.
Current report
Cost of digital engagement services of $1.2 million for the nine months ended June 30, 2024 decreased from $1.3 million for the nine months ended June 30, 2023.
Current report
Gross profit of $2.7 million for the three months ended June 30, 2024 increased from $2.6 million for the three months ended June 30, 2023.
Current report
Gross profit of $7.8 million for the nine months ended June 30, 2024 decreased from $8.3 million for the nine months ended June 30, 2023.
Current report
Sales and marketing expenses of $2.8 million for the nine months ended June 30, 2024 decreased from $3.8 million for the nine months ended June 30, 2023.
Current report
General and administrative expenses of $0.9 million for the three months ended June 30, 2024 increased from $0.8 million for the three months ended June 30, 2023.
Current report
General and administrative expense as a percentage of total revenue was 22% and 20% for the three months ended June 30, 2024 and 2023, respectively.
Current report
General and administrative expenses of $2.4 million for the nine months ended June 30, 2024 remained consistent with $2.4 million for the nine months ended June 30, 2023.
Current report
General and administrative expense as a percentage of total revenue was 21% and 20% for the nine months ended June 30, 2024 and 2023, respectively.
Current report
Depreciation and amortization expense was $0.9 million and $1.1 million for the nine months ended June 30, 2024 and 2023, respectively.
Current report
The loss from operations was $(1.5) million and $(1.7) million for the nine months ended June 30, 2024 and 2023, respectively.
Current report
Interest expense and other, net, was $5 thousand and $0 thousand for the three months ended June 30, 2024 and 2023.
Current report
Interest expense and other, net, was $58 thousand and $19 thousand for the nine months ended June 30, 2024 and 2023, respectively.
Removed paragraphs (16)
Previous report
Revenue from digital engagement services of $0.8 million for the three months ended March 31, 2024 remained consistent with the three months ended March 31, 2023.
Previous report
Revenue from digital engagement services of $1.5 million for the six months ended March 31, 2024 decreased from $1.7 million for the six months ended March 31, 2023 with a majority of the decrease in the three months ended March 31, 2024.
Previous report
Cost of subscription and perpetual licenses increased 2% to $0.9 million for the three months ended March 31, 2024, from $0.8 million for the three months ended March 31, 2023.
Previous report
Cost of subscription and perpetual licenses decreased (1)% to $1.7 million for the six months ended March 31, 2024, from $1.7 million for the six months ended March 31, 2023.
Previous report
Cost of digital engagement services decreased (5)% to $0.8 million for the six months ended March 31, 2024 from $0.8 million for the six months ended March 31, 2023.
Previous report
Gross profit of $2.5 million for the three months ended March 31, 2024 decreased $(0.3) million from $2.8 million for the three months ended March 31, 2023.
Previous report
Gross profit of $5.1 million for the six months ended March 31, 2024 decreased $(0.6) million from $5.6 million for the six months ended March 31, 2023.
Previous report
General and administrative expenses of $0.8 million for the three months ended March 31, 2024 remained consistent with the three months ended March 31, 2023.
Previous report
General and administrative expense as a percentage of total revenue was 20% for the three months ended March 31, 2024 and 18% for the three months ended March 31, 2023.
Previous report
General and administrative expenses of $1.5 million for the six months ended March 31, 2024 decreased from $1.6 million for the six months ended March 31, 2023.
Previous report
General and administrative expense as a percentage of total revenue was 20% for the six months ended March 31, 2024 and 19% for the six months ended March 31, 2023.
Previous report
The increases changes as a percentage of total revenue in both the three and six month comparable period is primarily due to the decrease in revenue.
Previous report
Research and development expenses of $2.1 million for the six months ended March 31, 2024 increased $0.5 million, from $1.7 million for the six months ended March 31, 2023.
Previous report
Depreciation and amortization expense was $0.7 million and $0.8 million for the six months ended March 31, 2024 and 2023, respectively.
Previous report
During the three months ended March 31, 2024 and 2023, interest expense and other, net, was $(53) and $(10) thousand, respectively.
Previous report
During the six months ended March 31, 2024 and 2023, interest expense and other, net, was $(53) thousand and $(19) thousand, respectively.
Reworded paragraphs (40)
Previous wording
We currently have over 2,000 active customers. For the three and six months ended March 31, 2024 and 2023, no customer exceeded 10% of our revenue.
Current wording
We currently have over 2,000 active customers. For the three and nine months ended June 30, 2024 and 2023, no customer exceeded 10% of our revenue.
Previous wording
Results of Operations for the Three and Six Months Ended March 31, 2024 compared to the Three and Six Months Ended March 31, 2023
Current wording
Results of Operations for the Three and Nine Months Ended June 30, 2024 compared to the Three and Nine Months Ended June 30, 2023
Previous wording
Total net revenue for each of the three months ended March 31, 2024 and 2023, was $3.8 million and $4.1 million, respectively. We had net loss of $(0.6) million and $(0.5) million for the three months ended March 31, 2024 and 2023, respectively. Basic and diluted loss per share attributable to common shareholders was $ (0.06) for the three months ended March 31, 2024. Basic and diluted net loss per share attributable to common shareholders was $ (0.05) for the three months ended March 31, 2023.
Current wording
Total net revenue for each of the three months ended June 30, 2024 and 2023, was $3.9 million. We had net loss of $(0.3) million and $(0.8) million for the three months ended June 30, 2024 and 2023, respectively. Basic and diluted loss per share attributable to common shareholders was $ (0.03) for the three months ended June 30, 2024. Basic and diluted net loss per share attributable to common shareholders was $ (0.07) for the three months ended June 30, 2023.
Previous wording
Total net revenue for each of the six months ended March 31, 2024 and 2023, was $7.6 million and $8.2 million, respectively. We had net loss of $(1.2) million and $(0.6) million for the six months ended March 31, 2024 and 2023, respectively. Included in the net loss for the six months ended March 31, 2023, was a gain of $0.5 million as a result of the change in the fair value of certain warrant liabilities. Basic and diluted loss per share attributable to common shareholders was $ (0.12) for the six months ended March 31, 2024. Basic and diluted net loss per share attributable to common shareholders was $ (0.06) for the six months ended March 31, 2023.
Current wording
Total net revenue for each of the nine months ended June 30, 2024 and 2023, was $11.5 million and $12.1 million, respectively. We had net loss of $(1.5) million and $(1.4) million for the nine months ended June 30, 2024 and 2023, respectively. Included in the net loss for the nine months ended June 30, 2023, was a gain of $0.4 million as a result of the change in the fair value of certain warrant liabilities. Basic and diluted loss per share attributable to common shareholders was $ (0.15) for the nine months ended June 30, 2024. Basic and diluted net loss per share attributable to common shareholders was $ (0.13) for the nine months ended June 30, 2023.
Previous wording
Revenue from subscription (SaaS) and perpetual licenses for the three months ended March 31, 2024 of $3.0 million decreased $(0.3) million from $3.3 million for the three months ended March 31, 2023.
Current wording
Revenue from subscription (SaaS) and perpetual licenses of $3.0 million for the three months ended June 30, 2024 decreased from $3.2 million for the three months ended June 30, 2023.
Previous wording
Revenue from subscription (SaaS) and perpetual licenses for the six months ended March 31, 2024 of $6.1 million decreased $(0.4) million from $6.5 million for the six months ended March 31, 2023.
Current wording
Revenue from subscription (SaaS) and perpetual licenses of $9.1 million for the nine months ended June 30, 2024 decreased from $9.7 million for the nine months ended June 30, 2023.
Previous wording
The decrease for the six months ended March 31, 2024 compared to the prior period partially resulted from a reduction in revenue from a particular customer as well as reduced subscriptions on legacy products, which offset increases in revenue from HawkSearch.
Current wording
The decrease for the nine months ended June 30, 2024 compared to the prior period was a result of reduced subscriptions on legacy products, which offset increases in revenue from HawkSearch.
Previous wording
Subscription and perpetual licenses revenue as a percentage of total revenue increased to 81% for the six months ended March 31, 2024 from 80% for the six months ended March 31, 2023.
Current wording
Subscription and perpetual licenses revenue as a percentage of total revenue of 77% for the three months ended June 30, 2024 decreased from 81% for the three months ended June 30, 2023.
Previous wording
Subscription and perpetual licenses revenue as a percentage of total revenue decreased to 79% from 80% for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.
Current wording
Subscription and perpetual licenses revenue as a percentage of total revenue of 79% for the nine months ended June 30, 2024 decreased from 80% for the nine months ended June 30, 2023.
Previous wording
Digital engagement services revenue as a percentage of total revenue decreased to 19% for the six months ended March 31, 2024 from 20% for the six months ended March 31, 2023.
Current wording
Digital engagement services revenue as a percentage of total revenue of 23% for the three months ended June 30, 2024 increased from 19% for the three months ended June 30, 2023.
Previous wording
Digital engagement services revenue as a percentage of total revenue increased to 21% for the three months ended March 31, 2024 from 20% for the three months ended March 31, 2023.
Current wording
Digital engagement services revenue as a percentage of total revenue of 21% for the nine months ended June 30, 2024 increased from 20% for the nine months ended June 30, 2023.
Previous wording
Total cost of revenue of $1.3 million for the three months ended March 31, 2024 remained consistent with the three months ended March 31, 2023.
Current wording
Total cost of revenue of $1.2 million for the three months ended June 30, 2024 decreased from $1.3 million for the three months ended June 30, 2023.
Previous wording
The cost of subscription and perpetual licenses as a percentage of subscription and perpetual licenses revenue was 29% and 26% for the three months ended March 31, 2024 and 2023, respectively.
Current wording
The cost of subscription and perpetual licenses as a percentage of subscription and perpetual licenses revenue was 28% and 27% for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
Total cost of revenue of $2.5 million for the six months ended March 31, 2024 remained consistent with the six months ended March 31, 2023.
Current wording
Cost of subscription and perpetual licenses of $2.5 million for the nine months ended June 30, 2024, remained consistent with $2.5 million for the nine months ended June 30, 2023.
Previous wording
The cost of subscription and perpetual licenses as a percentage of subscription and perpetual licenses revenue was 28% and 26% for the six months ended March 31, 2024 and 2023, respectively.
Current wording
The cost of subscription and perpetual licenses as a percentage of subscription and perpetual licenses revenue was 28% and 26% for the nine months ended June 30, 2024 and 2023, respectively.
Previous wording
The changes are primarily due to server costs and personnel costs.
Current wording
The changes in cost of subscription and perpetual licenses are primarily due to server costs and personnel costs.
Previous wording
Cost of digital engagement services of $0.4 million remained consistent for the three months ended March 31, 2024, with the three months ended March 31, 2023.
Current wording
Cost of digital engagement services of $0.4 million for the three months ended June 30, 2024 remained consistent with $0.4 million for the three months ended June 30, 2023.
Previous wording
The cost of total digital engagement services as a percentage of total digital engagement services revenue was 53% and 51% for the three months ended March 31, 2024 and 2023, respectively.
Current wording
The cost of total digital engagement services as a percentage of total digital engagement services revenue was 42% and 56% for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
The cost of total digital engagement services as a percentage of total digital engagement services revenue was 54% and 50% for the six months ended March 31, 2024 and 2023, respectively.
Current wording
The cost of total digital engagement services as a percentage of total digital engagement services revenue was 49% and 52% for the nine months ended June 30, 2024 and 2023, respectively.
Previous wording
The decrease in cost of digital engagement services in the six month period is primarily due to lower total digital engagement services revenue.
Current wording
The decrease in cost of digital engagement services in the three and nine month periods is primarily due to lower personnel costs.
Previous wording
The gross profit margin was 66% and 69% for the three months ended March 31, 2024 and 2023, respectively.
Current wording
The gross profit margin was 69% and 68% for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
The gross profit margin was 67% and 69% for the six months ended March 31, 2024 and 2023, respectively.
Current wording
The gross profit margin was 68% for each of the nine months ended June 30, 2024 and 2023, respectively.
Previous wording
Sales and marketing expenses of $0.9 million for the three months ended March 31, 2024 decreased from $1.4 million for the three months ended March 31, 2023.
Current wording
Sales and marketing expenses of $0.9 million for the three months ended June 30, 2024 decreased from $1.2 million for the three months ended June 30, 2023.
Previous wording
Sales and marketing expense as a percentage of total revenue was 25% and 34% for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Sales and marketing expense as a percentage of total revenue was 24% and 31% for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
Sales and marketing expense as a percentage of total revenue was 25% and 32% for the six months ended March 31, 2024 and 2023, respectively.
Current wording
Sales and marketing expense as a percentage of total revenue was 24% and 31% for the nine months ended June 30, 2024 and 2023, respectively.
Previous wording
Research and development expenses of $1.0 million for the three months ended March 31, 2024 increased $0.1 million, from $0.9 million for the three months ended March 31, 2023.
Current wording
Research and development expenses of $1.0 million for the three months ended June 30, 2024 increased from $0.9 million for the three months ended June 30, 2023.
Previous wording
Research and development expenses as a percentage of total revenue was 27% for the three months ended March 31, 2024 and 23% for the three months ended March 31, 2023.
Current wording
Research and development expenses as a percentage of total revenue was 26% and 24% for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
Sales and marketing expenses of $1.9 million for the six months ended March 31, 2024 decreased from $2.6 million for the six months ended March 31, 2023.
Current wording
Research and development expenses of $3.1 million for the nine months ended June 30, 2024 increased from $2.6 million for the nine months ended June 30, 2023.
Previous wording
Research and development expenses as a percentage of total revenue was 28% for the six months ended March 31, 2024 and 20% for the six months ended March 31, 2023.
Current wording
Research and development expenses as a percentage of total revenue was 27% and 22% for the nine months ended June 30, 2024 and 2023, respectively.
Previous wording
Depreciation and amortization expense was $0.3 million and $0.4 million for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Depreciation and amortization expense was $0.2 million and $0.4 million for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
Depreciation and amortization as a percentage of total revenue was 9% for the six months ended March 31, 2024 and 2023.
Current wording
Depreciation and amortization as a percentage of total revenue was 5% and 10% for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
Depreciation and amortization as a percentage of total revenue was 8% and 9% for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Depreciation and amortization as a percentage of total revenue was 8% and 9% for the nine months ended June 30, 2024 and 2023, respectively.
Previous wording
The loss from operations was $(0.5) million and $(0.7) for the three months ended March 31, 2024 and 2023. The loss from operations was $(1.2) million and $(1.0) million for the six months ended March 31, 2024 and 2023.
Current wording
The loss from operations was $(0.4) million and $(0.7) for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
The increase were primarily the result of stock based compensation from options issued to board members.
Current wording
The increase is primarily the result of stock-based compensation from options issued to board members.
Previous wording
We recognized a gain/(loss) related to the change in fair value of warrant liabilities of $(25) thousand and $0.2 million, for the three months ended March 31, 2024 and 2023, respectively.
Current wording
We recognized a gain/(loss) related to the change in fair value of warrant liabilities of $88 thousand and $(107) thousand for the three months ended June 30, 2024 and 2023, respectively.
Previous wording
We recognized a gain/(loss) related to the change in fair value of warrant liabilities of $(7) thousand and $0.5 million, for the six months ended March 31, 2024 and 2023, respectively.
Current wording
We recognized a gain related to the change in fair value of warrant liabilities of $81 thousand and $361 thousand for the nine months ended June 30, 2024 and 2023, respectively.
Previous wording
The provision for income taxes was $5 thousand for the three months ended March 31, 2024 and $10 thousand for the three months ended March 31, 2023. The provision for income taxes was $10 thousand for the six months ended March 31, 2024 and $16 thousand for the six months ended March 31, 2023. The provision for income taxes consists of estimated liability for federal and state income taxes owed by us. Net operating loss (“NOL”) carryforwards are estimated to be sufficient to offset any potential taxable income for all periods presented. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. We maintain a valuation allowance against its net deferred tax assets.
Current wording
The provision for income taxes was $5 thousand for the three months ended June 30, 2024 and $9 thousand for the three months ended June 30, 2023. The provision for income taxes was $15 thousand for the nine months ended June 30, 2024 and $25 thousand for the nine months ended June 30, 2023. The provision for income taxes consists of estimated liability for federal and state income taxes owed by us. Net operating loss (“NOL”) carryforwards are estimated to be sufficient to offset any potential taxable income for all periods presented. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. We maintain a valuation allowance against its net deferred tax assets.
Previous wording
Cash used in operating activities was $(1.0) million for the six months ended March 31, 2024, compared to $0.5 million cash provided by operating activities for the six months ended March 31, 2023. The change in cash used in operating activities, compared to the prior period, was primarily due to a decrease in net earnings and changes in non-cash items, including changes in fair value of warrant liabilities, and changes in accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities and deferred revenue.
Current wording
Cash used in operating activities was $(1.0) million for the nine months ended June 30, 2024, compared to $0.3 million cash provided by operating activities for the nine months ended June 30, 2023. The change in cash used in operating activities, compared to the prior period, was primarily due to a decrease in net earnings and changes in non-cash items, including changes in fair value of warrant liabilities, and changes in accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities and deferred revenue.
Previous wording
There was $(5) thousand cash used in investing activities for the six months ended March 31, 2024 and $(16) thousand for the six months ended March 31, 2023, related primarily to purchases of property and equipment.
Current wording
There was $(24) thousand cash used in investing activities for the nine months ended June 30, 2024 and $(23) thousand for the nine months ended June 30, 2023, related primarily to purchases of property and equipment.
Previous wording
Cash used in financing activities was $(0.1) million for the six months ended March 31, 2024, related to long-term debt payments related to acquisitions completed during fiscal 2021. Cash used in financing activities was $(0.6) million for the six months ended March 31, 2023, primarily related to payments of long-term debt and deferred purchase price payable and contingent consideration payments related to acquisitions completed during fiscal 2021.
Current wording
Cash used in financing activities was $(0.2) million for the nine months ended June 30, 2024, related to long-term debt payments related to acquisitions completed during fiscal 2021. Cash used in financing activities was $(0.6) million for the nine months ended June 30, 2023, primarily related to payments of long-term debt and deferred purchase price payable and contingent consideration payments related to acquisitions completed during fiscal 2021.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
The increases for each of the comparable periods is primarily attributable to additional personnel costs.