Bridgeline Digital: Is there Any Light at the End of the Tunnel?

Bridgeline Digital

Bridgeline Digital Inc. (NASDAQ:BLIN) is among the biggest losers in the small-cap sphere. Its share price has been declining at a sharp pace over the last five years.

Bridgeline Digital
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Bridgeline Digital shares lost almost 50% of value since the start of this year, and the stock is down close to 95% in the past five years. Its shares are currently trading around $2.30, slightly higher from the 52-week low of $1 per share.

Bridgeline Digital Financials are Falling at a Robust Pace

Bridgeline Digital Inc. didn’t perform according to expectations in the last couple of years. The company has been losing its revenue base at a significant rate, and its losses are widening especially in the last couple of periods. Bridgeline Digital develops web management software suites and business technology solutions.

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Bridgeline Digital
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Bridgeline Digital revenues plunged from $24 million in 2013 to $16 million in fiscal 2017; the downtrend in its revenues is likely to extend into this year.

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The company reported a revenue of $7.7 million in the first six months of this year, down from the revenue of $8 million in the same period last year. Besides its revenue from web hosting, all of its other business segments are declining at a sharp pace. Its net loss jumped to $1.1 million in the first half of this year from a net loss of $938,000 in the first six months of fiscal 2017.

Outlook is Bleak

Although Bridgeline Digital Inc. announced a partnership with a full-service bank and the Massachusetts healthcare system, the company expects its fiscal 2018 revenues to continue to decline.

The digital company expects its fiscal 2018 revenue to stand close to $15.0 – $15.5 million, down from $16 million in the past year. It also expects an adjusted EBITDA between negative $500,000 for the full year in fiscal 2018. By and large, Bridgeline Digital shares are likely to remain under pressure due to poor financial numbers.  

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