WOBURN, Mass. - Bridgeline Digital, Inc. (NASDAQ: BLIN), a provider of AI-powered marketing technology, announced today that it has partnered with one of the top 10 electrical distributors in the United States. The partnership involves the implementation of Bridgeline's HawkSearch engine to enhance search capabilities across nearly one thousand local store websites owned by the distributor.
HawkSearch is designed to improve sales by facilitating better navigation within the distributor's extensive catalog, which includes five million products. The newly introduced Multi-Engine Management (MEM) feature of HawkSearch will allow the distributor to make centralized changes to the websites, while also providing each store the ability to run targeted local campaigns.
The MEM feature is expected to streamline the process of updating product information across the distributor's network of stores by using a robust indexing capability that automatically distributes data feeds and product updates. This is intended to reduce the complexity and cost associated with managing these updates at a central level while also promoting revenue growth at the local store level.
Ari Kahn, CEO of Bridgeline, stated that the HawkSearch MEM feature is designed to address the challenges B2B distributors face in managing a large network of store-associated websites. By enabling both corporate control and local customization, Bridgeline aims to balance the need for scale with the flexibility required for local market targeting.
Bridgeline Digital focuses on assisting companies in increasing their online revenue through enhanced traffic, conversion rates, and average order value.
The financial terms of the deal were not disclosed in the press release statement.
In other recent news, Bridgeline Digital reported a decrease in total revenue for Q2, falling to $3.8 million from $4.1 million in the previous year. Despite this dip, the company remains optimistic about the growth of its HawkSearch product, which has sold nearly 50 licenses this fiscal year. The company also reported a net loss of $602,000 for the quarter.
Bridgeline Digital is focused on expanding its presence in the e-commerce sector, particularly in B2B construction sectors. The company's strategy includes growing through acquisitions and maintaining a diverse product base while scaling up HawkSearch.
These are recent developments for Bridgeline Digital, which is aiming to drive subscription revenue growth through HawkSearch and plans to expand AI Smart Search technology. The company anticipates growth in fiscal 2024 with a focus on revenue growth, product innovation, customer success, and delivering shareholder value.
InvestingPro Insights
As Bridgeline Digital (NASDAQ: BLIN) announces its significant partnership with a top electrical distributor in the United States, investors and industry observers are closely monitoring the company's financial health and stock performance. With a market capitalization of just 9.17 million USD, Bridgeline Digital is a relatively small player in the technology sector. Despite this, the company's strategic move to implement its HawkSearch engine across a vast network of local store websites could signal potential for growth and increased market share.
InvestingPro data shows that Bridgeline Digital's revenue over the last twelve months as of Q2 2024 stands at 15.27 million USD, with a gross profit margin of 67.54%. This robust margin suggests the company's ability to retain a significant portion of its sales as gross profit. However, Bridgeline has been grappling with challenges, as indicated by a -17.0% operating income margin and a return on assets of -46.73%, reflecting the company's difficulties in translating its sales into operational profitability and asset efficiency.
InvestingPro Tips indicate that Bridgeline's stock is currently in oversold territory according to the Relative Strength Index (RSI), which could attract investors looking for potential rebounds. Additionally, the stock's price movements have been quite volatile, which might appeal to traders seeking short-term opportunities. It's important to note that the company holds more cash than debt, providing it with a degree of financial flexibility despite short-term obligations exceeding its liquid assets.
For investors considering Bridgeline Digital as a potential addition to their portfolios, further analysis is available. There are 10 additional InvestingPro Tips that could provide deeper insights into the company's performance and outlook. For those interested in accessing these valuable tips, visit Investing.com/pro/BLIN and consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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