Bridgeline Digital, Inc.

Good day, and thank you for standing by, and welcome to Bridgeline Digital, Inc., fourth quarter 2021 earnings call. At this time, all participants are in a listen-only mode. After this presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 on your telephone. Please be advised that this call is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your host today, Tom Windhausen, Chief Financial Officer. Please go ahead.

Thank you, Justin. Good afternoon, everyone. Thank you for joining us today. My name is Thomas Windhausen and I'm the Chief Financial Officer for BridgeLine Digital, Inc. I am pleased to welcome you to our fourth quarter fiscal 2021 conference call. Joining me on the call this afternoon is Ari Kahn, BridgeLine Digital's 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 are forward-looking statements. Within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934, are subject to risks and uncertainties that 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 of our 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 by 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. Now, I would like to turn the call over to Ari Kahn, President and CEO of Bridgeline. Ari?

Thank you, Tom. Good afternoon, everyone. In fiscal 2021, we delivered 22% top line growth over the prior year with subscription revenue of $10 million for the year. Our fourth quarter subscriptions grew to 3.35 million. More than 80% of our fourth quarter revenue is recurring subscription now, and we have a $13.4 million run rate for subscriptions heading into 2022. We ended our fiscal year with $9 million in cash, putting us in a great position to invest in growth for 2022. We have expanded our business development team with eight new people and tripled our marketing budget. These investments will position us for additional growth while leaving a comfortable cash buffer for future acquisitions and other opportunities. BridgeLine's partner network is a strong part of our lead generation strategy. We recently announced product releases for Salesforce.com, for Optimizely, and for BigCommerce. Each of these partnerships can drive substantial deal flow for Bridgeline in addition to the leads created by our marketing investments. We continue to attract additional ISV partners as well as agency partnerships. This year, we made two acquisitions, WooRank and HawkSearch. Both companies are fully integrated with Bridgeline and no significant restructuring expenses are required going forward. HawkSearch brought us site search and recommendation products that help companies increase online revenue with stronger e-commerce conversion, similar to our Celebros product. Today, BridgeLine has more than 400 customers in the site search market. Site search is now 40% of our revenue and is our fastest growing product set. We're merging Celebros and HawkSearch to create the strongest feature set in the market. WooRank is winning new customers every single day, and its underlying data set has enabled us to launch a new product, Data Bravo. Data Bravo is a web intelligence application that helps sales professionals and market analysts grow revenue with AI-driven trend identification and prediction about web technologies and usage. We've won several Data Bravo customers already, including enterprise customers and embedded licensed sales. Bridgeline released our e-commerce 360 dashboards for both the Hawk Search and the WooRank product lines. The e-commerce 360 dashboard measures your e-commerce strength and makes recommendations when Bridgeline software and services can help you drive more site traffic, boost your site's conversion, and increase your e-commerce site's average order value. The eCommerce 360 dashboard is an important part of our organic growth strategy and facilitates cross-sales across the customer bases of our product line. We have a dedicated sales team who leverages our dashboard to sell additional Bridgeline software into our customer base. This team has been particularly successful in cross-selling Hawk Search to customers who use Bridgeline's unbound software. To sum it up, we're winning new customers at the strongest pace of our history and have the resources to further invest in sales and marketing to build on that success. Our strongest growth area is site search, and by merging our capabilities with HawkSearch and Sellegros, we have a winning solution for the market. Our e-commerce 360 strategy is helping expand subscription and license revenue within our own customer base, and our partner strategy is accelerating new logo wins. This time, I'd like to turn the call over to our Chief Financial Officer, Tom Windhausen, to tell you more details.