Bridgeline Digital (BLIN) Q4 Loss Widens, Revenues Fall Y/Y
Bridgeline Digital BLIN reported fourth-quarter fiscal 2023 loss of 77 cents per share, which was much wider than the Zacks Consensus Estimate of a loss of 6 cents per share. The company had incurred a loss of 5 cents per share in the year-ago quarter.
Revenues of $3.8 million decreased 8.2% year over year in the fourth quarter of fiscal 2023.
In the fourth quarter of fiscal 2023, Bridgeline's core product revenues were stable, while legacy product revenues decreased substantially as several major clients were seen winding down their licenses.
In fiscal 2023, Bridgeline signed new customer contracts worth more than $6 million and had a revenue renewal rate of more than 90%.
Bridgeline Digital, Inc. Price, Consensus and EPS Surprise
Bridgeline Digital, Inc. price-consensus-eps-surprise-chart | Bridgeline Digital, Inc. Quote
Quarter Details
Bridgeline’s subscription revenues (81% of revenues) decreased 8.8% year over year to $3.1 million. Digital Engagement Services revenues (19% of revenues) decreased 5.3% to $0.7 million.
In the fiscal fourth quarter, Bridgeline booked an additional 27 sales contracts or $900 thousand in contract value, adding $375 thousand in annual recurring revenue (ARR).
In the quarter under review, Bridgeline provided new licenses to leading technology providers like Spectrum Control, Saviynt and Project Insight, as well as industrial distributors like Trident Enterprises and Filters Fast.
In the reported quarter, the non-GAAP gross margin was 67.7% compared with 71.5% in the year-ago quarter.
Sales and marketing expenses, as a percentage of revenues, were 25.2%, which contracted 720 basis points (bps) on a year-over-year basis.
General and administrative expenses, as a percentage of revenues, were 21.1%, down 120 bps year over year.
Research and development expenses, as a percentage of revenues, were 28% compared with 17.3% reported in the year-ago quarter.
Depreciation and amortization expenses, as a percentage of revenues, were 10.1% compared with 9.3% reported in the year-ago quarter.
Goodwill impairment expenses were $7.5 million, while restructuring and acquisition-related expenses were $0.1 million in the fourth quarter of fiscal 2023.
In the fiscal fourth quarter, Bridgeline incurred a non-GAAP loss from operations of $8.2 million compared with a non-GAAP loss from operations of $0.4 million in the year-ago quarter.
Balance Sheet
As of Sep 30, 2023, Bridgeline had cash equivalents of $2.38 million compared with $2.61 million as of Jun 30, 2023.
Zacks Rank & Other Stocks to Consider
Bridgeline currently carries a Zacks Rank #2 (Buy).
Ceridian HCM CDAY, Camtek CAMT and Vertiv VRT are some other top-ranked stocks that investors can consider from the broader sector. Ceridian HCM and Camtek sport a Zacks Rank #1 (Strong Buy) each, while Vertiv carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Ceridian HCM, Camtek, and Vertiv shares have returned 6%, 258.6%, and 258.4%, respectively, on a year-to-date basis.
The Zacks Consensus Estimate for Ceridian HCM’s revenues for the fourth quarter of 2023 is pegged at $400.09 million, indicating a surge of 19.04% year over year. The consensus mark for earnings is pegged at 32 cents per share, unchanged over the past 30 days.
The consensus estimate for Camtek’s revenues for the fourth quarter of 2023 is pegged at $88 million, indicating an increase of 7.1% year over year. The consensus mark for earnings is pegged at 52 cents per share, unchanged over the past 30 days.
The consensus mark for Vertiv’s revenues for the fourth quarter of 2023 is pegged at $1.87 billion, indicating a rise of 13.2% year over year. The consensus mark for earnings has declined by 2 cents over the past 30 days to 51 cents per share.
Long-term earnings growth rates for Ceridian HCM, Camtek, and Vertiv are pegged at 44.2%, 12.3% and 53.9%, respectively.
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