Bridgeline Digital, Inc. · NASDAQ:BLIN
Bridgeline Digital — Investor Presentation (May 2021)
32 slides from Bridgeline Digital's investor presentation, May 19, 2021
Slide 1: Investor Update
NASDAQ: BLIN Investor Update May 19, 2021
Slide 2: Safe Harbor Statement
Safe Harbor Statement The information in this presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statement by use of the words “may,” “will,” “should,” “plans,” “explores,” “expects,” “anticipates,” “
Slide 3: Highlights
Bridgeline Digital, Inc. Highlights NASDAQ: BLIN Company • Marketing Technology SaaS • Help retailers grow online sales Profitable Growing Company • 8% CAGR subscription revenue • Positive Adj EBITDA Strategic Growth • Acquire Apps & Customers • Efficient cross-sales strategy 3
Slide 4: MarTech Market
BRIDGELINE D!IGttTAL MarTech Market
Slide 5: MarTech: A Market with Accelerating Growth
MarTech: A Market with Accelerating Growth Accelerating Growth • 22% CAGR in 2019 => 28% CAGR since COVID • 28% CAGR in 2020 for Bridgeline • COVID advances online consumer demand beyond boxed products • Delivery of perishables like take-out food • Curbside pickup orders • COVID advances online mark
Slide 6: MarTech Software and Competition
MarTech Software and Competition Platforms Apps • Foundation for online marketing • Extend platforms • Require extensive customization • Out of the Box • Purchased once every 5 years • Purchased as needed • Enterprise sales cycle • Touchless sales cycle Enterprise Platforms Apps SMB Platforms 6
Slide 7: Marketplaces – Superstores without Aisles
Marketplaces – Superstores without Aisles Platforms Marketplaces for Apps Marketplace • Sea of one-off apps • Must know product name to find it • No consistent branding • Can only search by feature (eg. traffic) Platform 7
Slide 8: Strategy
BRIDGELINE D!IGttTAL Strategy
Slide 9: Expanding our Total Addressable Market
Expanding our Total Addressable Market Platform Apps CONTENT COMMERCE PORTAL MARKETING PAGES TRANSLATE INSIGHTS SEARCH Publishing Catalog Native Salesforce Email Marketing Franchise Pages Translation Dashboards Natural Language Enterprise Search Cart & Checkout Compliance Lead Capture Store Locator
Slide 10: eCommerce 360 Revenue
eCommerce 360 REVENUE = TRAFFIC x CONVERSION x AOV Our Message • Drive traffic • Boost conversions • Raise AOV TRAFFIC CONVERSION Branding for Growth • Simplify key concept behind growing revenue REVENUE • 3 “buckets” to efficiently organize large portfolio of apps • Speak to main buying motivator -
Slide 11: eCommerce has No Focus & No Leaders
eCommerce 360 has No Focus & No Leaders Revenue Apps Fail to Market • Apps are ‘products’ not ‘companies’ • No focus on revenue • One app per company • No growth strategy TRAFFIC CONVERSION AOV Platform 11
Slide 12: Marketplaces – Bridgeline Connects the Dots
Marketplaces – Bridgeline Connects the Dots Branding and Messaging • Land grab in marketplaces Traffic Builder Coupons • Feature & benefit messaging for SEO Pages Search • Focus marketing on revenue category • Freemium model TRAFFIC CONVERSION • OEM and open source accelerate REVENUE AOV Merchandise
Slide 13: eCommerce Dashboard
eCommerce 360 Dashboard Gamification • At-a-glance ROI • Rapid feedback for actions Cross Sale Dashboards • Product recommendations • Freemium for rapid adoption Revenue from Every Angle • Artificial intelligence • Trusted advisor • Recommends what you need – this is unlike other apps that only serv
Slide 14: Touchless Sales Cycle
Touchless Sales Cycle Platforms – Enterprise Sales Cycle Apps – Touchless Sales Cycle • 6 months • 3 weeks • High salaried sales exec • Less expensive inside sales rep • Travel and entertainment • No travel • Expensive marketing, eg. conferences • Marketplaces and online adds • $2M Booking Quota per
Slide 15: Woorank
woorank 5 “unbound attract + engage + nurture + convert
Slide 16: Woorank Overview
Woorank Overview $2M 1,800 1,000+ ARR Customers Leads/month TRAFFIC CONVERSION Highlights • Recommendation Dashboard • Traffic App • Lead Generator • Strong Technical and Marketing Team • Build European Presence in Brussels AOV Competition 16
Slide 17: Recommendation Dashboard
Recommendation Dashboard AI Recommendation Engine • Rank recommendations on: • Category • Role • Impact • Effort • Link to: • Apps • Professional services • Tutorials 17
Slide 18: Traffic App
Traffic App Grow Online Traffic • SEO Auditing • Competitive Analysis • Searched Keyword Monitoring • Lead Generation 18
Slide 19: Lead Generator
Lead Generator Touchless Sales and Leads • 200k monthly unique visitors • 1,500 Credit Card free trials • Lead categorization and distribution • Convert 18% trials to subscriptions • Touchless sales process • Land & expand strategy 19
Slide 20: Cross Sales
Cross Sales Woorank Enterprise Customers 1,800 Customers • 1,000 SMB • 500 Mid-Market • 300 Enterprise 20
Slide 21: attract + engage + nurture + convert
attract + engage + nurture + convert © CELEBROS @woorank orchestra c\\s
Slide 22: Hawk Overview
Hawk Overview $5M 350 8 ARR Customers Partners TRAFFIC CONVERSION Highlights • Recommendation Dashboard • Traffic App • Lead Generator • Strong Technical and Marketing Team • Build European Presence in Brussels AOV 22
Slide 23: Hawk Search
Hawk Search Hawk Search • Strong technical competitor in Site Search Market, Celebros Competitor • Wins 3-5 sales per month at $18K ARR/contract from partner channels • 300 customers and $5M revenue growing at 4% per year • Selected by EPI as private-label replacement to their embedded search • Focu
Slide 24: Competitive Opportunity
Competitive Opportunity Celebros • Sophisticated NLP Algorithms powering concept-based search • InstantSearch key differentiator • Out of the box Hawk • Search Information Manager • Dashboard • Visitor targeting & personalization • Live preview feature w/ insights on matches & ranking • SEO influenc
Slide 25: Strategic Growth
BRIDGELINE D!IGttTAL Strategic Growth 25
Slide 26: MarTech Market
MarTech Market Market • Apps are “products” and not “companies” • Target rich environment Integration • Add dashboard to App • Train dashboard to recommend Cross Sales • Marketplaces • Dashboard • Touchless Sources: • www. chiefmartec.com/2020/04/marketing-technology-landscape-2020-martech-5000 26
Slide 27: Pipeline
Pipeline Target Criteria • eCommerce360 Apps • $2M - $5M revenue • Accretive bottom line Deal Structure • < 2x Revenue • < 10x Adj EBITDA • 40% Earn-Out • Stock and Cash Mix Deal Sourcing • 2 Buy-side bankers Recent Acquisitions • Criteria distributed to sell-side bankers • Direct outreach Sources:
Slide 28: Financials
BRIDGELINE D!IGttTAL Financials 28
Slide 29: Income Statement
Income Statement Income Statement Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 1H FY21 Revenue Q1 FY21 Results Services 1,096 899 714 701 837 885 1,722 Subscription & License 1,736 1,840 1,919 2,004 1,999 1,989 3,988 • Subscription impacted by single Revenue 2,832 2,738 2,633 2,705 2,836 2,873 5,
Slide 30: Balance Sheet
Balance Sheet Balance Sheet Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Assets Assets Current Assets Cash and Equivalents 408 234 1,165 861 1,277 3,497 • $2.2M Cash increase from Q1 FY21 Accounts Receivable and Unbilled Revenue 1,427 1,661 1,317 1,068 1,347 1,679 Prepaid Expenses and Other Curre
Slide 31: Cap Table
Cap Table Total Shares Preferred Stock Common Stock 5,391,548 • Dividend producing preferred converted Series C Preferred Stock (as converted) 38,889 • Series A – all converted at $1.75 • Series C – no rights, no dividends New Warrants 2,945,561 • Series C – 350 shares remaining convert Stock Option
Slide 32: Comps
Comps BLIN Represents a Compelling Opportunity • Profitable • No debt • High average daily volume • Trading at discount to comps • No capital required for operations 32
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