Bridgeline Digital (BLIN) AI Stock Analysis

• Market Cap: $15.62M
• Dividend Yield: N/A
• Average Volume (3M): 60.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.15
• Revenue Growth: 0.54%
• EPS Growth: 70.74%
• Country: US
• Employees: 51
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Infrastructure
• EPS (TTM): -0.03
• Shares Outstanding: 12,112,068
• 10 Day Avg. Volume: 47,217
• 30 Day Avg. Volume: 60,042
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 1.45
• Enterprise Value/Ebitda: -8.68
• 1Y Price Target: $1.50
• Price Target Upside: 16.28% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: $1.50 ▲(16.28% Upside)

Bridgeline Digital's overall stock score is primarily impacted by its financial performance, which shows operational challenges and declining revenues. Technical analysis indicates a bearish trend, further weighing down the score. Valuation metrics are weak, with a negative P/E ratio and no dividend yield. The earnings call provided some positive insights into product growth and market position, but these were offset by flat revenue growth and increased net losses.

Bridgeline Digital Business Overview & Revenue Model

Company Description

Bridgeline Digital, Inc. operates as a digital engagement company in the United States. The company's Bridgeline's Unbound platform enables companies and developers to create websites, web applications, and online stores. It offers Bridgeline Unbound Experience Manager, a marketing automation engine and content management system; Bridgeline Unbound Content Manager that enables non-technical users to create, edit, and publish content via a browser-based interface; and Bridgeline Unbound Commerce, an online B2B and B2C commerce solution that allows users to manage domestic and international commerce initiatives. The company also provides Bridgeline Unbound Marketing, an online marketing management solution that helps marketers drive to their sites through personalized and targeted marketing automation flows; and Bridgeline Unbound Insights to manage, measure, and optimize web properties by recording detailed events and mining data for statistical analysis. In addition, it offers Bridgeline Unbound Social, a social media management solution that empowers customers to set up customized watch lists; and Bridgeline Unbound Franchises, a web content management and e-commerce platform to multi-unit organizations and franchises. Further, the company provides digital strategy, web design and development, usability engineering, information architecture, and search engine optimization services; application monitoring, emergency response, version control, load balancing, managed firewall security, and virus protection services; and shared, dedicated, and Software as a Service hosting services. Further, it offers OrchestraCMS by Bridgeline and Celebros Search by Bridgeline digital solutions. It serves vertical markets, such as financial services, retail brand names, health services and life sciences, technology, credit unions and regional banks, and associations and foundations through its direct sales force. The company was formerly known as Bridgeline Software, Inc. Bridgeline Digital, Inc. was founded in 2000 and is based in Burlington, Massachusetts.

How the Company Makes Money

Bridgeline Digital generates revenue through multiple streams, primarily by offering subscription-based services for its software solutions, which include its flagship product, the Bridgeline Unbound platform. This platform allows clients to manage their digital content and marketing efforts seamlessly. The company also earns income from professional services such as consulting, implementation, and support services, which are designed to assist clients in maximizing the value of their digital solutions. Additionally, strategic partnerships with other technology providers and agencies help expand Bridgeline's market reach and can lead to collaborative revenue opportunities.

Bridgeline Digital Financial Statement Overview

Summary

Bridgeline Digital faces operational challenges with declining revenues and consistent net losses, impacting its income statement score. The balance sheet reflects low leverage and reasonable equity stability, but declining asset values are a concern. Cash flow management has shown recent improvements with a positive free cash flow, yet overall profitability remains a challenge. The company needs to focus on improving profitability and stabilizing revenue streams to enhance financial health.

Income Statement

Bridgeline Digital shows a declining revenue trend with a negative net income and EBIT, indicating operational challenges. The gross profit margin remains healthy at around 66% for TTM, but the net profit margin is negative, which highlights profitability issues. Revenue has decreased over the last three years, with a slight improvement in the most recent TTM compared to 2023 fiscal year.

Balance Sheet

The company maintains a strong equity position with a debt-to-equity ratio of 0.03 in TTM, indicating low leverage and a stable financial structure. However, total assets and stockholders' equity have decreased over the past years. The equity ratio is relatively strong at 61.42% for TTM, suggesting stability despite declining assets.

Cash Flow

Free cash flow has improved recently, turning positive in the TTM period, which is a positive sign. The operating cash flow to net income ratio indicates challenges in converting income into cash. Despite historical fluctuations, the recent positive free cash flow suggests improvements in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.38M	15.36M	15.88M	16.82M	13.26M	10.91M
Gross Profit	10.35M	10.43M	10.87M	11.70M	8.73M	6.40M
EBITDA	-1.73M	-831.00K	-880.00K	-282.00K	835.00K	1.31M
Net Income	-2.58M	-1.96M	-9.44M	2.15M	-6.69M	326.00K
Balance Sheet
Total Assets	16.15M	15.60M	17.63M	27.51M	34.97M	10.66M
Cash, Cash Equivalents and Short-Term Investments	2.10M	1.39M	2.38M	2.86M	8.85M	861.00K
Total Debt	514.00K	689.00K	1.09M	1.61M	2.41M	382.00K
Total Liabilities	6.20M	5.60M	6.17M	7.16M	17.39M	6.30M
Stockholders Equity	9.95M	10.01M	11.46M	20.35M	17.58M	4.36M
Cash Flow
Free Cash Flow	-559.00K	-794.00K	252.00K	-329.00K	-1.10M	-498.00K
Operating Cash Flow	-542.00K	-765.00K	277.00K	-134.00K	-989.00K	-498.00K
Investing Cash Flow	-17.00K	-29.00K	-25.00K	-195.00K	-4.52M	0.00
Financing Cash Flow	1.46M	-209.00K	-649.00K	-5.48M	13.47M	1.05M

Bridgeline Digital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLIN, the sentiment is Negative. The current price of 1.29 is below the 20-day moving average (MA) of 1.45, below the 50-day MA of 1.47, and below the 200-day MA of 1.52, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 34.37 is Neutral, neither overbought nor oversold. The STOCH value of 20.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLIN.

Bridgeline Digital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VRAR	57 Neutral	$28.21M	―	-40.76%	―	-12.30%	76.19%
Sector *	54 Neutral	€2.22B	11.75	-1.78%	1.65%	5.63%	-16.73%
BLIN	48 Neutral	$15.62M	―	-25.48%	―	0.54%	70.74%
DTSS	48 Neutral	$13.90M	―	-501.24%	―	141.65%	60.23%
RVYL	39 Underperform	$10.16M	―	-2201.06%	―	-33.86%	74.09%
BNAI	35 Underperform	$13.42M	―	-254.58%	―	20.51%	30.55%
FAAS	―	$17.90M	―		―	―	―

Bridgeline Digital Corporate Events

Brandon Ross Joins Bridgeline Digital’s Board of Directors

On February 10, 2025, Michael Taglich resigned from the Board of Directors of Bridgeline Digital, Inc., with his departure not due to any disagreements with the company. Subsequently, on February 14, 2025, Brandon Ross was appointed to the Board as a Class III Director to fill the vacancy. Ross, a seasoned investment banker with over 30 years in financial services, has a significant background in handling public and private offerings, making him a strategic addition to Bridgeline Digital’s board.