Bridgeline Digital, Inc.

Good day and thank you for standing by. Welcome to the Bridge Line Digital, Inc., third quarter 2021 earnings call. At this time, all participants are in the listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 on your telephone's keypad. I would now like to hand the conference over to your first speaker for today, Mr. Mark Downey, CFO of BridgeLine Digital. Thank you. Please go ahead, sir.

Thank you, and good afternoon, everyone. My name is Mark Downey, and I am the Chief Financial Officer for BridgeLine Digital. I am pleased to welcome you to our fiscal 2021 third quarter conference call. On the call this afternoon is Eric Kahn, BridgeLine Digital President and CEO, who will begin with a discussion of our business highlights. I'll then update you on our financial results for the quarter, and we'll conclude by taking questions. Before we begin, I would like to remind listeners that during this conference call, comments that we make regarding Bridgeline that are not historical facts or forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to risks and uncertainties could cause such statements to differ materially from actual future events or results. These statements are made pursuant to the safe harbor provisions of the private securities litigation reform act of 1995. The internal projections and beliefs upon which we base our expectations today may change over time, and we expressly disclaim and assume no obligation to inform you if they do. Results that we report today should not be considered as an indication of future performance. Changes in economic, business, competitive, technological, regulatory, and other factors, such as the impact of related public health measures, could cause Bridgeline's actual results to differ materially from those expressed or implied by the projections or forward-looking statements made today. for more detailed information about these factors and other risks that may impact our business. Please review the reports and documents filed from time to time at Bridgeline Digital with the Securities and Exchange Commission. Also, please note that on the call this afternoon, we will discuss some non-GAAP financial measures when discussing the company's financial performance. We provide a reconciliation of these non-GAAP measures to our GAAP financials in our earnings release. You can obtain a copy of our earnings release by visiting our website. I would now like to turn the call over to Ari Kahn, our president and CEO.

Ari Kahn Thank you, Mark, and good afternoon, everybody. I'm happy to report that we delivered more than 30 percent top line growth and expect to deliver double digit growth the next quarter as well. Subscription revenue grew by 37 percent and is now 76 percent of our overall revenue. We've also accumulated a cash position of nearly $10 million, which will be invested in sales and marketing to win even more customers. In our third quarter, we closed more sales than any time in the company's history. Most of these sales were multi-year subscriptions, which will drive additional recurring revenue in future quarters. Our subscription and license revenue is now more than 75% of our total revenue, and as subscriptions continue to grow, our gross margin will increase even further. This year, we made two acquisitions, WooRank and Hawk Search. Both companies are fully integrated with Bridgeline at this time, and the bulk of the restructuring expenses is in our third quarter. With the combination of Celebros and Hawk Search, we are especially strong in the site search market, with more than 400 customers and a feature set that is second to none. Site search leads led sales for the company in our third quarter with nearly all contracts being multi-year commitments and two of them being larger than the company had ever signed before. Our strategy to merge Celebros and Hawk Search products is underway. This will result in a single product with the strongest feature set in the market, including natural language processing, personalization, and recommendations. We released the WooRank Assistant in our third quarter also. The WooRank Assistant incorporates an artificial intelligent agent that monitors your global core web vitals and makes recommendations that drive more site traffic and increase your Google ranking. Bridgeron released e-commerce 360 dashboards for both the Hawk Search and WooRank product lines. The e-commerce 360 dashboard measures your e-commerce strength and makes recommendations with bridge line software that can help drive your site traffic boost your site's conversions and increase your online average order value. The e-commerce 360 dashboard is an important part of our organic growth strategy and facilitates cross-sales across the customer bases of our product lines. Our dashboard delivered sales leads the very first day of its release and is impacting our sales pipeline above and beyond the new leads generated by marketing and our partner networks. Our partner network, by the way, is making a strong impact on our revenue. Both agency and ISV partners are creating sales in our third quarter. Partners produce nearly half of our customer wins. On the marketing front, we released a new website for both Bridgeline and our Unbound product suite. These sites better articulate our e-commerce 360 strategy and will convert more site traffic to leads. We will continue to grow our investments and lead generation to drive even more revenue. To sum it up, we've delivered record growth. We expect to deliver strong growth next quarter. We have a strong cash position that will enable further investments in sales and marketing. And we've made great strides in product development with the e-commerce 360 strategy. At this time, I'd like to turn the call over to our Chief Financial Officer, Mark Downey. Thanks, Harry.