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Bridgeline (BLIN) Strengthens Portfolio With HawkSearch Launch

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BridgeLine Digital (BLIN - Free Report) shares have returned 13.2% in the past three months compared with the Zacks Computer & Technology sector’s rise of 6.3%. It has been expanding its presence in the dynamic field of marketing technology software.

In the fiscal 2023, the HawkSearch product line played a crucial role in Bridgeline's success, contributing nearly 50% to its revenues. With a renewal rate of more than 95%, HawkSearch demonstrated strong growth and customer loyalty.

Bridgeline's noteworthy innovation in integrating AI across product lines yielded a substantial Annual Recurring Revenue (ARR) increase of $375K.

The innovative HawkSearch AI product, Smart Search, emerged as a key driver, resulting in seven notable sales in the past two months and a promising $700K ARR pipeline.


Smart Search secured five new license sales and generated more than $60K in ARR within its first month.

Smart Search, distinguished by its advanced AI algorithms, vector DBs, Natural Language Processing (NLP), and Large Language Models (LLMs), is reshaping the e-commerce search experience with keyword, concept and image search capabilities.

 

Expanding Portfolio Aids Growth

Bridgeline Digital's commitment to innovation and delivering advanced solutions in the digital marketing landscape is evident through its extension of Smart Search, showcasing HawkSearch as a key catalyst in this endeavor.

BLIN is riding on a strong partner base with the likes of BigCommerce (BIGC - Free Report) , Salesforce (CRM - Free Report) , Xngage and many more.

In November, Bridgeline collaborated with BigCommerce to extend the reach of its AI-powered site search, HawkSearch, to Multi-Storefront users, enabling enhanced product search, personalization, and data quality across diverse online storefronts.

Bridgeline Digital's Hawksearch introduced an advanced 'Lightning-Ready' integration for Salesforce B2B Commerce Cloud on AppExchange, enhancing conversions and customer insights for global enterprises effortlessly.

In November, Bridgeline Digital and Xngage jointly launched the Xngage Connector for HawkSearch AI in the Optimizely Configured Commerce platform, revolutionizing e-commerce search capabilities for Optimizely customers.

Bridgeline’s strong portfolio and partner base are contributing to its growth prospects continuously and driving top-line growth.

In the fiscal 2023, Bridgeline signed new customer contracts worth more than $6 million and had a revenue renewal rate of more than 90%.

However, Bridgeline’s legacy product revenues declined substantially as several major clients were seen winding down licenses. This is likely to impact the top line.

The Zacks Consensus Estimate for first-quarter fiscal 2024 revenues is pegged at $3.97 million, indicating a year-over-year decline of 2.7%.

Zacks Rank & Other Stocks to Consider

Bridgeline currently has a Zacks Rank #2 (Buy).

A top-ranked stock in the broader technology sector is Camtek (CAMT - Free Report) , which currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Camtek’s shares have returned 100% in the past six months. The long-term earnings growth rate for CAMT is pegged at 12.26%.

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