Bridgeline Digital, Inc. revenue started to decline in FY2018: dropped 16.7% vs. 2.5% growth a year earliner
12/28/2018 • About Bridgeline Digital, Inc. (
$BLIN) • By InTwits
Bridgeline Digital, Inc. reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Bridgeline Digital, Inc. is a company in decline: FY2018 revenue growth was -16.7%, 5 years revenue CAGR was -11.2%
- The company operates at negative EBITDA Margin: -49.0%
- Bridgeline Digital, Inc. spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2014-FY2018 is 0.0%. Average EBITDA Margin for the same period was -31.1%
- Bridgeline Digital, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has unprofitable business model: ROIC is -63.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Bridgeline Digital, Inc.'s Revenue dropped on 16.7%. Revenue decline showed acceleration in FY18Q4 - it was 33.8% YoY. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 43.8 pp from -5.2% to -49.0% in FY2018.
Gross Margin decreased on 5.8 pp from 56.1% to 50.3% in FY2018. SG&A as a % of Revenue increased slightly on 0.65 pp from 49.5% to 50.1% in FY2018.
Net Income margin dropped on 43.4 pp from -9.8% to -53.2% in FY2018.
Investments (CAPEX, working capital and M&A)
In FY2018 the company had CAPEX/Revenue of 0.26%. CAPEX/Revenue decreased slightly on 0.71 pp from 0.97% in FY2015 to 0.26% in FY2018. For the last three years the average CAPEX/Revenue was 0.53%. CAPEX as a % of Revenue declined at -0.41 pp per annum in the last 5 years.
Return on investment
The company operates at negative ROIC (-63.0%) and ROE (-142.5%). ROIC dropped on 53.0 pp from -10.0% to -63.0% in FY2018. ROE dropped on 122 pp from -20.9% to -143% in FY2018.
Leverage (Debt)
Debt level is -1.1x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2018. Debt surged on 43.6% while cash dropped on 13.9%.
Bridgeline Digital, Inc. has short term refinancing risk: cash is only 63.3% of short term debt.
Financial and operational results
FY ended 09/30/2018
Bridgeline Digital, Inc. ($BLIN) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 23.737 | 19.224 | 15.895 | 16.293 | 13.568 | -16.7% |
| Gross Profit | 11.532 | 8.185 | 8.613 | 9.133 | 6.820 | -25.3% |
| SG&A | 12.380 | 9.695 | 8.390 | 8.063 | 6.803 | -15.6% |
| EBITDA | -3.296 | -14.483 | -2.356 | -0.844 | -6.642 | |
| Net Income | -6.215 | -16.768 | -7.824 | -1.602 | -7.219 | |
Balance Sheet
|
|---|
| Cash | 1.256 | 0.337 | 0.661 | 0.748 | 0.644 | -13.9% |
| Short Term Debt | 1.349 | 0.412 | 0.045 | 0.000 | 1.017 | |
| Long Term Debt | 6.182 | 7.695 | 2.115 | 2.500 | 2.574 | 3.0% |
Cash flow
|
|---|
| Capex | 0.468 | 0.187 | 0.165 | 0.047 | 0.035 | -25.5% |
Ratios
|
|---|
| Revenue growth | -3.1% | -19.0% | -17.3% | 2.5% | -16.7% | |
| EBITDA growth | 125.1% | 339.4% | -83.7% | -64.2% | 687.0% | |
|
|---|
| Gross Margin | 48.6% | 42.6% | 54.2% | 56.1% | 50.3% | -5.8% |
| EBITDA Margin | -13.9% | -75.3% | -14.8% | -5.2% | -49.0% | -43.8% |
| SG&A, % of revenue | 52.2% | 50.4% | 52.8% | 49.5% | 50.1% | 0.7% |
| Net Income Margin | -26.2% | -87.2% | -49.2% | -9.8% | -53.2% | -43.4% |
| CAPEX, % of revenue | 2.0% | 1.0% | 1.0% | 0.3% | 0.3% | -0.0% |
|
|---|
| ROIC | -19.6% | -77.6% | -25.6% | -10.0% | -63.0% | -53.0% |
| ROE | -30.6% | -157.9% | -124.2% | -20.9% | -142.5% | -121.6% |
Bridgeline Digital, Inc. ($BLIN) key quoterly financial indicators
| mln. $ | FY18Q1 | FY18Q2 | FY18Q3 | FY18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 4 | 4 | 3 | 3 | | -0.6% | -7.0% | -24.3% | -33.8% |
| EBITDA | -0 | -1 | -5 | -1 | | | | | |
| Net Income | -0 | -1 | -5 | -1 | | | | | |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 0 | 1 | | -21.8% | -43.2% | -43.3% | -13.9% |
| Short Term Debt | 0 | 0 | 0 | 1 | | 27.3% | 471.4% | -100.0% | |
| Long Term Debt | 3 | 3 | 3 | 3 | | 31.5% | 16.1% | 19.9% | 3.0% |
Ratios
|
|---|
| Gross Margin | 50.7% | 49.1% | 50.2% | 51.3% | | -6.8% | -8.0% | -4.7% | -3.5% |
| EBITDA Margin | -5.9% | -13.9% | -165.3% | -28.3% | | -0.8% | -6.4% | -160.4% | -25.0% |
| Net Income Margin | -10.8% | -18.3% | -167.4% | -33.8% | | -0.6% | -5.0% | -159.3% | -25.9% |
Peers in Application Software
Below you can find Bridgeline Digital, Inc. benchmarking vs. other companies in Application Software industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| nFusz Inc ($FUSZ) | | | | | 433.3% |
| CloudCommerce Inc ($CLWD) | | -38.1% | 247.6% | 40.9% | 301.1% |
| Seven Stars Cloud Group, Inc. ($SSC) | | 134.7% | 663.8% | 310.3% | 161.7% |
| Aurora Mobile Limited ($JG) | | | | 304.9% | 150.8% |
| Intelligent Systems Corporation ($INS) | | 14.2% | 71.0% | 12.2% | 119.0% |
| |
|---|
| Median (150 companies) | 27.9% | 14.0% | 14.3% | 15.7% | 15.2% |
|---|
| Bridgeline Digital, Inc. ($BLIN) | | -19.0% | -17.3% | 2.5% | -16.7% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Skkynet Cloud Systems Inc ($SKKY) | 99.7% | 97.4% | 98.0% | 97.6% | 96.5% |
| hopTo Inc ($HPTO) | 91.8% | 87.8% | 95.9% | 98.2% | 95.4% |
| Aware, Inc. ($AWRE) | 75.4% | 87.2% | 90.3% | 94.6% | 92.3% |
| Alteryx, Inc. ($AYX) | 77.5% | 80.5% | 81.3% | 83.4% | 91.0% |
| Aspen Technology, Inc. ($AZPN) | 86.5% | 88.7% | 89.7% | 90.2% | 89.9% |
| |
|---|
| Median (149 companies) | 63.4% | 61.9% | 64.2% | 64.6% | 66.0% |
|---|
| Bridgeline Digital, Inc. ($BLIN) | 48.6% | 42.6% | 54.2% | 56.1% | 50.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Aspen Technology, Inc. ($AZPN) | 34.5% | 42.2% | 46.0% | 45.2% | 43.3% |
| ANSYS, Inc. ($ANSS) | 45.9% | 45.8% | 45.1% | 41.9% | 41.4% |
| Paycom Software, Inc. ($PAYC) | 15.1% | 19.5% | 35.1% | 34.4% | 35.9% |
| j2 Global, Inc. ($JCOM) | 41.6% | 40.6% | 41.7% | 36.5% | 35.7% |
| Adobe Inc. ($ADBE) | 17.5% | 25.9% | 31.2% | 34.2% | 35.3% |
| |
|---|
| Median (151 companies) | -10.1% | -9.4% | -4.7% | -3.3% | -3.1% |
|---|
| Bridgeline Digital, Inc. ($BLIN) | -13.9% | -75.3% | -14.8% | -5.2% | -49.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| TimefireVR Inc ($TFVR) | 0.0% | 350.5% | 4.3% | | 1,021.9% |
| MGT Capital Investments Inc ($MGTI) | 0.0% | 36.5% | 221.4% | 129.8% | 344.5% |
| Integrated Ventures Inc ($INTV) | | | | | 199.9% |
| ShotSpotter, Inc. ($SSTI) | | 18.3% | 28.9% | 27.1% | 24.3% |
| Ellie Mae, Inc. ($ELLI) | 12.3% | 20.6% | 16.7% | 21.1% | 19.4% |
| |
|---|
| Median (152 companies) | 2.8% | 2.7% | 3.0% | 2.3% | 2.4% |
|---|
| Bridgeline Digital, Inc. ($BLIN) | 2.0% | 1.0% | 1.0% | 0.3% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| InsPro Technologies Corp ($ITCC) | -558.9% | | | | 127.4% |
| Manhattan Associates, Inc. ($MANH) | 64.8% | 78.7% | 99.3% | 102.5% | 80.9% |
| Intuit Inc. ($INTU) | 34.2% | 23.7% | 52.1% | 72.6% | 66.8% |
| Aspen Technology, Inc. ($AZPN) | 133.4% | | | | 58.1% |
| Paycom Software, Inc. ($PAYC) | 16.7% | 30.5% | 75.4% | 51.1% | 47.5% |
| |
|---|
| Median (178 companies) | -14.2% | -11.2% | -9.2% | -11.8% | -9.1% |
|---|
| Bridgeline Digital, Inc. ($BLIN) | -19.6% | -77.6% | -25.6% | -10.0% | -63.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Upland Software, Inc. ($UPLD) | | | 16.4x | 115.6x | 16.7x |
| Nuance Communications, Inc. ($NUAN) | 7.9x | 5.7x | 5.3x | 7.1x | 15.2x |
| Asure Software Inc ($ASUR) | 3.4x | 4.5x | 3.6x | 9.5x | 14.5x |
| SS&C Technologies Holdings, Inc. ($SSNC) | 1.7x | 7.3x | 4.6x | 3.1x | 8.5x |
| Avaya Holdings Corp. ($AVYA) | | | | | 7.4x |
| |
|---|
| Median (70 companies) | -1.4x | -1.0x | -0.9x | -0.8x | -0.7x |
|---|
