Bridgeline Digital, Inc. reports 9.6% revenue growth in FY2020 and 101 pp EBITDA Margin growth from -105% to -4.5%
12/23/2020 • About Bridgeline Digital, Inc. (
$BLIN) • By InTwits
Bridgeline Digital, Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- The company operates at negative EBITDA Margin: -4.5%
- Bridgeline Digital, Inc. spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.0%. Average EBITDA Margin for the same period was -31.2%
- Bridgeline Digital, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has unprofitable business model: ROIC is -37.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue increased on 9.6%. Revenue growth showed slowdown in FY20Q4 - it was 0.6% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 5.7 pp from 15.4% to 21.0% in FY2020.
Gross Margin jumped on 12.5 pp from 46.1% to 58.7% in FY2020. SG&A as a % of Revenue dropped on 34.6 pp from 81.1% to 46.5% in FY2020.
Net Income margin jumped on 98.2 pp from -95.2% to 3.0% in FY2020.
Return on investment
The company operates at negative ROIC (-37.9%) and ROE (-75.7%). ROIC jumped on 145 pp from -183% to -37.9% in FY2020. ROE jumped on 583 pp from -659% to -75.7% in FY2020.
Leverage (Debt)
Debt level is 3.5x Net Debt / EBITDA and Debt / EBITDA. Debt surged while cash jumped on 191%.
Bridgeline Digital, Inc. has no short term refinancing risk: cash is higher than short term debt (896.9%).
Financial and operational results
FY ended 09/30/2020
Bridgeline Digital, Inc. ($BLIN) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 15.895 | 16.293 | 13.568 | 9.952 | 10.907 | 9.6% |
| Gross Profit | 8.613 | 9.133 | 6.820 | 4.592 | 6.400 | 39.4% |
| SG&A | 8.390 | 8.063 | 6.803 | 8.070 | 5.069 | -37.2% |
| EBITDA | -2.356 | -0.844 | -6.642 | -10.458 | -0.492 | |
| Net Income | -7.824 | -1.602 | -7.219 | -9.474 | 0.326 | |
Balance Sheet
|
|---|
| Cash | 0.661 | 0.748 | 0.644 | 0.296 | 0.861 | 190.9% |
| Short Term Debt | 0.045 | 0.000 | 1.017 | 0.000 | 0.096 | |
| Long Term Debt | 2.115 | 2.500 | 2.574 | 0.000 | 0.198 | |
Cash flow
|
|---|
| Capex | 0.165 | 0.047 | 0.035 | 0.020 | 0.000 | -100.0% |
Ratios
|
|---|
| Revenue growth | -17.3% | 2.5% | -16.7% | -26.7% | 9.6% | |
| EBITDA growth | -83.7% | -64.2% | 687.0% | 57.5% | -95.3% | |
|
|---|
| Gross Margin | 54.2% | 56.1% | 50.3% | 46.1% | 58.7% | 12.5% |
| EBITDA Margin | -14.8% | -5.2% | -49.0% | -105.1% | -4.5% | 100.6% |
| SG&A, % of revenue | 52.8% | 49.5% | 50.1% | 81.1% | 46.5% | -34.6% |
| Net Income Margin | -49.2% | -9.8% | -53.2% | -95.2% | 3.0% | 98.2% |
| CAPEX, % of revenue | 1.0% | 0.3% | 0.3% | 0.2% | 0.0% | |
|
|---|
| ROIC | -25.6% | -10.0% | -63.0% | -182.9% | -37.9% | 145.0% |
| ROE | -124.2% | -20.9% | -142.5% | -658.5% | -75.7% | 582.8% |
Bridgeline Digital, Inc. ($BLIN) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 3 | 3 | 3 | 3 | | 19.2% | 24.7% | -2.3% | 0.6% |
| EBITDA | -1 | -1 | 0 | 0 | | - | - | - | - |
| Net Income | 0 | 1 | -2 | 1 | | - | - | -123.3% | 54.3% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 1 | 1 | | -80.6% | -85.5% | -10.2% | 190.9% |
| Short Term Debt | 0 | 0 | 1 | 0 | | 5.6% | - | - | - |
| Long Term Debt | 0 | 0 | 1 | 0 | | -89.1% | - | - | - |
Ratios
|
|---|
| Gross Margin | 53.7% | 56.8% | 59.0% | 67.3% | | 10.2% | 20.8% | 14.4% | 9.0% |
| EBITDA Margin | -23.1% | -24.8% | 15.7% | 14.7% | | 175.3% | 61.5% | 111.5% | 62.1% |
| Net Income Margin | 4.8% | 30.0% | -64.6% | 39.5% | | 213.4% | 600.2% | -336.1% | 13.7% |
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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | - | -0.2% | -95.9% | 34.9% | 355,942.4% |
| AudioEye, Inc. ($AEYE) | - | 175.5% | 106.6% | 90.2% | 90.2% |
| Cloudera, Inc. ($CLDR) | - | 57.2% | 42.6% | 28.9% | 65.5% |
| Integrated Ventures Inc ($INTV) | - | - | - | -8.9% | 62.7% |
| Smartsheet Inc. ($SMAR) | - | 64.3% | 66.1% | 59.7% | 52.4% |
| |
|---|
| Median (92 companies) | 12.0% | 15.7% | 15.2% | 19.5% | 14.7% |
|---|
| Bridgeline Digital, Inc. ($BLIN) | - | 2.5% | -16.7% | -26.7% | 9.6% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Aware, Inc. ($AWRE) | 90.3% | 94.6% | 92.3% | 89.7% | 92.8% |
| Alteryx, Inc. ($AYX) | 81.3% | 83.4% | 91.0% | 90.6% | 91.1% |
| Autodesk, Inc. ($ADSK) | 85.2% | 83.2% | 85.2% | 88.9% | 90.1% |
| Smith Micro Software, Inc. ($SMSI) | 73.2% | 77.9% | 83.5% | 90.9% | 89.9% |
| Cadence Design Systems, Inc. ($CDNS) | 85.9% | 87.8% | 87.9% | 88.6% | 88.6% |
| |
|---|
| Median (89 companies) | 64.2% | 64.6% | 66.0% | 68.4% | 70.6% |
|---|
| Bridgeline Digital, Inc. ($BLIN) | 54.2% | 56.1% | 50.3% | 46.1% | 58.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -1,837.2% | -1,118.0% | -40,379.4% | -23,127.1% | 52.2% |
| j2 Global, Inc. ($JCOM) | 41.7% | 36.5% | 35.7% | 38.6% | 40.5% |
| Intelligent Systems Corporation ($INS) | -5.4% | -12.8% | 33.6% | 43.6% | 40.4% |
| Adobe Inc. ($ADBE) | 31.2% | 34.2% | 35.3% | 35.8% | 39.7% |
| SS&C Technologies Holdings, Inc. ($SSNC) | 34.9% | 37.9% | 27.7% | 38.2% | 38.3% |
| |
|---|
| Median (89 companies) | -4.7% | -3.3% | -3.3% | 4.5% | 7.7% |
|---|
| Bridgeline Digital, Inc. ($BLIN) | -14.8% | -5.2% | -49.0% | -105.1% | -4.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| MicroStrategy Incorporated ($MSTR) | 0.5% | 0.8% | 1.4% | 2.1% | 234.8% |
| Integrated Ventures Inc ($INTV) | - | - | 199.9% | 15.2% | 27.2% |
| Intelligent Systems Corporation ($INS) | 3.8% | 9.7% | 4.3% | 4.9% | 19.2% |
| LivePerson, Inc. ($LPSN) | 5.5% | 7.9% | 8.8% | 16.3% | 11.4% |
| PROS Holdings, Inc. ($PRO) | 4.7% | 0.8% | 0.7% | 2.1% | 11.3% |
| |
|---|
| Median (87 companies) | 3.0% | 2.3% | 2.4% | 3.0% | 2.6% |
|---|
| Bridgeline Digital, Inc. ($BLIN) | 1.0% | 0.3% | 0.3% | 0.2% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -210.9% | -256.8% | -416.3% | -247.2% | 137.3% |
| Manhattan Associates, Inc. ($MANH) | 99.3% | 102.5% | 80.9% | 71.7% | 53.4% |
| Citrix Systems, Inc. ($CTXS) | 16.1% | 16.7% | 25.2% | 29.8% | 33.5% |
| Sonic Foundry, Inc. ($SOFO) | -18.1% | -50.6% | -786.4% | - | 31.3% |
| Paycom Software, Inc. ($PAYC) | 75.4% | 51.1% | 47.5% | 47.5% | 28.7% |
| |
|---|
| Median (92 companies) | -9.2% | -11.8% | -9.8% | -4.2% | -1.8% |
|---|
| Bridgeline Digital, Inc. ($BLIN) | -25.6% | -10.0% | -63.0% | -182.9% | -37.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dropbox, Inc. ($DBX) | - | -3.8x | - | 2.4x | 1,341.0x |
| Avaya Holdings Corp. ($AVYA) | - | - | 7.4x | - | 77.9x |
| Alteryx, Inc. ($AYX) | - | - | 2.5x | 6.1x | 32.2x |
| Five9, Inc. ($FIVN) | -6.7x | -8.6x | 7.3x | 5.3x | 17.6x |
| Synchronoss Technologies, Inc. ($SNCR) | - | - | - | - | 11.6x |
| |
|---|
| Median (54 companies) | -0.9x | -0.8x | -0.7x | 0.4x | 0.2x |
|---|
