What changed in this filing

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Item 1. Business

2024-12-26 compared with 2023-12-27 · 70 added, 53 removed, 83 unchanged (60% of the section changed)

Bridgeline Digital is a marketing technology company that offers a suite of products that help companies grow online revenue by driving more traffic to their websites, converting more visitors to purchasers, and increasing average order value.

All of Bridgeline’s software is available through a cloud-based Software as a Service (“SaaS”) model, whose flexible architecture provides customers hosting and support.

Additionally, Unbound and HawkSearch have the option to be available via a traditional perpetual licensing business model, in which the software can reside on a dedicated infrastructure either on premise at the customer’s facility, or manage-hosted by Bridgeline via a cloud-based, dedicated hosted services model.

Bridgeline's product offerings include: 

a site search, recommendation, and personalization software application, built for marketers, merchandisers, and developers to enhance, normalize, and enrich an online customer's content search and product discovery experience. 

Celebros Search:

a commerce-oriented site search product that provides Natural Language Processing with artificial intelligence to present relevant search results based on long-tail keyword searches.

a Search Engine Optimization (“SEO”) audit tool that generates an instant performance audit of the site’s technical, on-page, and off-page SEO.

a Digital Experience Platform that includes Web Content Management, eCommerce, Digital Marketing, and Web Analytics. 

a web content management and eCommerce platform that supports the needs of multi-unit organizations and franchises.

OrchestraCMS:

the only content and digital experience platform built 100% native on Salesforce and helps customers create websites and intranets for their customers, partners, and employees.

Bridgeline Digital is an AI-powered marketing technology company that offers a suite of products that help companies grow online revenue by driving more visitors to their websites, converting more visitors to purchasers, and increasing average order value per purchaser.

Bridgeline’s software is available through a cloud-based Software as a Service (“SaaS”) model.

Additionally, Bridgeline’s software is available via a perpetual licensing business model, in which the software can reside on premise at the customer’s facility, or manage-hosted by Bridgeline.

Bridgeline Digital was incorporated under the laws of the State of Delaware on August 28, 2000.

The Company’s corporate headquarters is located in Woburn, Massachusetts. The Company maintains regional field offices serving the following geographical locations:

The Company’s corporate headquarters is located in Woburn, Massachusetts.

The Company maintains regional field offices serving the following geographical locations:

Woodbury, New York;

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Hawk Search Inc.

located in Rosemont, Illinois and Bridgeline Digital Belgium BV, located in Brussels, Belgium.

located in Rosemont, Illinois and Bridgeline Digital Belgium BV, located in Brussels, Belgium.

Bridgeline launched multiple new product enhancements this year, particularly in the area of Artificial Intelligence (“AI”) and Generative AI.

The following are key capabilities of Bridgeline's software:

Smart Search (Retrieval Augmentation)

Concept Search

NLP Multi-lingual

Smart Search (Retrieval Augmentation)

Visual Search

Image upload via mobile devices

Smart Search (Retrieval Augmentation)

Search images with text

Smart Response (Generative AI)

Smart Summary

Prompt driven analysis of results

Smart Response (Generative AI)

Conversational Search

Thread maintained and prompt driven

Smart Response (Generative AI)

Smart Filters

Automated facet selection

AI Multiplier

Machine learning based on site usage

AI Content Assistant

Extension to WYSIWYG editor

AI Synonym Generator

Extension of standard synonym option

Products and Services

Subscription and Perpetual Licenses

All of Bridgeline’s software is available through a cloud-based Software as a Service (“SaaS”) model, whose flexible architecture provides customers hosting and support.

Additionally, HawkSearch and Unbound have the option to be available via a traditional perpetual licensing business model, in which the software can reside on a dedicated infrastructure either on premise at the customer’s facility, or manage-hosted by Bridgeline via a cloud-based, dedicated hosted services model. This software is reported as Subscription and Perpetual Licenses in the accompanying consolidated financial statements.

Bridgeline’s software is available through a cloud-based SaaS model.

Bridgeline's software is available via a perpetual licensing business model, in which the software can reside on premise at the customer’s facility, or manage-hosted by Bridgeline.

This software is reported as Subscription and Perpetual Licenses in the accompanying consolidated financial statements.

Bridgeline offers enterprise site search solutions with its HawkSearch and Celebros Search products.

HawkSearch is an AI-powered site search, recommendation, and personalization software application for marketers, merchandisers, and developers to enhance, normalize, and enrich an online customer's product discovery.

HawkSearch leverages artificial intelligence, machine learning and industry-leading merchandising features to deliver accurate, relevant and personalized results and recommendations derived from multiple data sources.

HawkSearch is an AI-powered site search, recommendation, and personalization software application for marketers to enhance an online customer's product discovery.

HawkSearch leverages artificial intelligence, machine learning and merchandising features to deliver accurate, relevant and personalized results and recommendations from multiple data sources.

HawkSearch’s Keyword Search and Merchandising allows site visitors to search product catalogs and content using keywords and allows markets to improve search results with synonyms, unit of measure conversions, and trending products.

HawkSearch’s Smart Search allows site visitors to search by image upload or phone camera, textual image description, and concept (aka Natural Language Processing) through Retrieval Augmented Generation to get relevant results.

HawkSearch’s Smart Response leverages generative AI to summarize, synthesize, compare or start a conversation with the visitor to help find the most relevant results.

HawkSearch has integrations and partner relationships with platforms such as Adobe, BigCommerce, Optimizely, Sitefinity, Shopify and others.

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Celebros Search has plug-ins into the Bridgeline Unbound Commerce offering in addition to many other third-party Commerce platforms such as Adobe, Hybris and Shopify.

Bridgeline offers Search Engine Optimization auditing through its WooRank by Bridgeline software. 

Woorank is a Search Engine Optimization (“SEO”) audit tool that generates an instant performance audit of the site’s technical, on-page, and off-page SEO. Woorank’s clear, actionable insights help companies increase their search engine ranking, while boosting website traffic, audience engagement, conversion, and customer retention rates.

Bridgeline offers franchise marketing software with its TruPresence platform. 

TruPresence is a Web Content Management and eCommerce platform that supports the needs of multi-unit organizations and franchises. The TruPresence product empowers large franchises, brand networks, and other multi-unit organizations to manage a large hierarchy of digital properties at scale. TruPresence provides centralized and distributed management of content and products from parent sites down to multiple child sites for consistency in branding and messaging while also enabling regional / local site owners to manage the local messaging, products and promotions specific to their local market.

Bridgeline offers Bridgeline Unbound as a Digital Experience Platform. 

Bridgeline offers Search Engine Optimization auditing through its WooRank by Bridgeline software.

Woorank is a Search Engine Optimization (“SEO”) audit tool that generates an instant performance audit of the site’s technical, on-page, and off-page SEO.

Woorank’s clear, actionable insights help companies increase their search engine ranking, while boosting website traffic, audience engagement, conversion, and customer retention rates.

Bridgeline offers franchise marketing software with its TruPresence platform.

TruPresence is a Web Content Management and eCommerce platform that supports the needs of multi-unit organizations and franchises.

The TruPresence product empowers large franchises, brand networks, and other multi-unit organizations to manage a large hierarchy of digital properties at scale.

TruPresence provides centralized and distributed management of content and products from parent sites down to multiple child sites for consistency in branding and messaging while also enabling regional/local site owners to manage the local messaging, products and promotions specific to their local market.

Bridgeline offers Bridgeline Unbound as a Digital Experience Platform.

Unbound is a Digital Experience Platform that includes Web Content Management, eCommerce, Digital Marketing, and Web Analytics.

Unbound Content, Unbound Marketing, Unbound Commerce, and Unbound Insights empower marketers to easily manage their digital experiences and create personalized customer journeys.

Each Unbound implementation incorporates a set of flexible templates and modules to accelerate implementation speed and reduce costs. The Unbound platform, combined with its professional services, assists customers in powering engaging digital experiences that drive lead generation, increase revenue, improve customer service and loyalty, enhance employee knowledge, and reduce operational costs. 

Each Unbound implementation incorporates a set of flexible templates and modules to accelerate implementation speed and reduce costs.

The Unbound platform, combined with its professional services, assists customers in powering engaging digital experiences that drive lead generation, increase revenue, improve customer service and loyalty, enhance employee knowledge, and reduce operational costs.

Bridgeline also offers OrchestraCMS as a Digital Experience Platform.

OrchestraCMS is a digital experience platform built 100% native on Salesforce and helps customers create websites and intranets for their customers, partners, and employees.

The software combines content with business data, processes and applications, including Salesforce Communities, social media, portals, intranets, websites, applications and services. OrchestraCMS also has a rich set of APIs to enable development of custom solutions, third-party integrations and delivery of digital transformation initiatives on the Salesforce platform, helping customers drive deeper engagement and collaboration, increase efficiency and minimize risk.

The software combines content with business data, processes and applications, including Salesforce Communities, social media, portals, intranets, websites, applications and services.

OrchestraCMS also has a rich set of APIs to enable development of custom solutions, third-party integrations and delivery of digital transformation initiatives on the Salesforce platform, helping customers drive deeper engagement and collaboration, increase efficiency and minimize risk.

Revenue from Digital Engagement Services

Revenue from all digital engagement services is reported as “

Digital engagement services ” in the accompanying consolidated financial statements.

Revenue from all digital engagement services is reported as “ Digital engagement services ” in the accompanying consolidated financial statements.

Digital engagement services address specific customer needs such as digital strategy, web design and web development, usability engineering, information architecture, and SEO for their mission critical website, intranet or online store.

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Manufacturers

For the years ended September 30, 2024 and 2023, no customer exceeded 10% of the Company’s total revenues.

We also pursue strategic alliances and partnerships to enhance the sales and distribution opportunities of Bridgeline intellectual property.

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We use surveying techniques to gauge and monitor customer sentiment as well as digital marketing capabilities to inform our customer base of the latest feature releases and product innovations.

We make product releases available via email campaigns as well as publication on our website.

We make product releases available via email campaigns as well as publication on our website.

Bridgeline also provides educational white papers and featured case studies, to inform customers of best practices and enhancements.

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Social Media Programs

We market Bridgeline’s upcoming events, white papers, blogs, case studies, digital product tutorials, announcements, and related articles frequently on leading social media platforms such as Twitter, LinkedIn, YouTube and Facebook.

Research and Development

We have research and development activities focusing on creating new products and innovations, product enhancements, and funding future market opportunities.

Research and development expenses were approximately $3.7 million or 23% of revenues and $3.2 million or 19% of revenues during fiscal 2023 and 2022, respectively.

Research and development expenses were approximately $4.2 million or 27% of revenues and $3.7 million or 23% of revenues during fiscal 2024 and 2023, respectively.

Human Capital

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In order to continue to design innovative experiences and products and compete and succeed in our highly competitive and rapidly evolving market, we continue to attract and retain experienced and talented employees.

As part of these efforts, we strive to offer a competitive compensation and benefits program, foster a community of inclusion and empower individuals to do their best work.

As of September 30, 2023, we had approximately 55 full-time employees.

Of our full-time employees, approximately 40 were in the United States and the remaining were based in our various international locations.

As part of these efforts, we strive to offer a competitive compensation and benefits program, foster a community of inclusion and empower individuals to do their best work.

As of September 30, 2024, we had approximately 51 full-time employees.

Of our full-time employees, approximately 37 were in the United States and the remaining were based in our various international locations.

None of our employees are represented by a labor union or covered by a collective bargaining agreement.

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In addition to cash and equity compensation, we also offer employees benefits such as life and health (medical, dental & vision) insurance, paid time off, and a 401(k) plan.

We primarily serve the following vertical markets that we believe have a history of investing in information technology enhancements and initiatives:

Associations and Foundations

Banks and Credit Unions

eCommerce Retailers

Franchises & Enterprises

Health Services and Life Sciences

Industrial Distribution and Wholesale

Manufacturers

For the years ended September 30, 2023 and 2022, no customer exceeded 10% of the Company’s total revenues.

The markets for our products and services, including eCommerce platform software, eMarketing software, software for web content management, web analytics software and digital engagement services are highly competitive, fragmented, and rapidly changing.

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We believe we compete adequately with others and we distinguish ourselves from our competitors in a number of ways, including:

Our competitors generally offer their web application software with an emphasis on a singular focus/function (such as content management only, or commerce only) as compared to the deeply integrated and multi-faceted approach provided by Bridgeline’s platforms.

The architecture comprising Bridgeline’s platforms are flexible and some are capable of being deployed in either a SaaS or dedicated server environment.

The majority of our competitors do not provide interactive technology development services that complement their software products.

Many AI software providers are offering a one size fits all solution for their customers which lack customer specific rules and insights, or what we call ‘Merchandising Capabilities’ that power the underlying AI and Machine Learning features.

Bridgeline allows customers to tailor an AI that is specific to their needs.

Many of our competitors offer their web application software with an emphasis on a singular focus/function (such as content management only, or commerce only) as compared to the deeply integrated and multi-faceted approach provided by Bridgeline’s platforms.

Some of Bridgeline’s software can be deployed in either a SaaS or in a dedicated hosting environment.

Many of our competitors do not provide development services that complement their software products.

Our ability to develop mission critical websites and online stores on our own deeply integrated platforms provides a quality end-to-end solution.

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We do not own any patents.

For additional information see Risk Factor – 

If we are unable to protect our proprietary technology and other intellectual property rights, our ability to compete in the marketplace may be substantially reduced.

For additional information see Risk Factor – If we are unable to protect our proprietary technology and other intellectual property rights, our ability to compete in the marketplace may be substantially reduced.

Available Information

This Annual Report on Form 10-K, as well as our quarterly reports on Form 10-Q and current reports on Form 8-K, along with any amendments to those reports, are made available upon request, on our website www.bridgeline.com as soon as reasonably practicable after such material is electronically filed with or furnished to the Securities and Exchange Commission (“SEC”).

Copies of the following are also available through our website on the “About –

Investor Relations”

page and are available in print to any stockholder who requests it:

The information posted on our website is not incorporated by reference into this Annual Report on Form 10-K.

Copies of the following are also available through our website on the “About – Investor Relations” page and are available in print to any stockholder who requests it:

Code of Business Ethics

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Compensation Committee

The public may read and copy any materials that we file with the SEC at the SEC’s Public Reference Room at 450 Fifth Street, N.W., Washington, D.C.

Information regarding the SEC’s Public Reference Room can be obtained by calling the SEC at 1-800-SEC-0330.

The public may read and copy any materials that we file with the SEC at the SEC’s Public Reference Room at 450 Fifth Street, N.W., Washington, D.C.

Information regarding the SEC’s Public Reference Room can be obtained by calling the SEC at 1-800-SEC-0330.

The SEC also maintains an Internet site that contains reports, proxy and information statements, and other information and can be found at http://www.sec.gov.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business