Bridgeline Digital, Inc.

Good afternoon and welcome to Bridgeline Digital's third quarter 2026 earnings call. At this time, all participants have been placed on a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Tom Windhausen, CFO. The floor is yours.

Thank you. Thank you very much. And good afternoon, everyone. Thanks for joining us today. My name is Tom Windhausen. I'm the chief financial officer at Bridgeline Digital, Inc. I'm pleased to welcome you today to our fiscal 2026 third quarter conference call. On the call today is Mr. Ari Kahn, Bridgeline's president and CEO. He'll begin the call with a discussion of our business highlights, and then I'll update you on our financial results for the quarter, and we'll conclude by taking some questions. Before we begin, I'd like to remind everyone that our remarks and responses to your questions today may contain forward-looking statements, and those are based upon current expectations of management and involve inherent risks and uncertainties that could cause actual results to differ materially from those indicated, including without limitation, those identified in the risk factor section of our most recent annual forum 10-K, our most recent 10Q filing, and the company's other filings with the Securities and Exchange Commission. Such factors may be updated from time to time in our filings with the SEC, which are available on our website. We undertake no obligation to publicly update or revise our form-looking statements as a result of new information, future events, or otherwise. The advice of today's results should not be viewed as an indication of future performance. This call will also include references to certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAAP. We generally refer to these as non-GAAP financial measures. Reconciliations of those non-GAAP financial measures to our most comparable measures calculated and presented in accordance with GAAP are available in the earnings press release on the investor relations portion of our website. I'd now like to turn the call over to Mr. Ari Kahn, Bridgeline's president and CEO. Ari?

Thank you, Tom, and good afternoon, everyone. Before I review the quarter, I want to briefly frame what Bridgeline does and why our strategy matters. Ridgeline is a marketing technology software company that helps businesses grow online revenue by delivering more traffic to their websites, converting more visitors of those websites into purchasers, and increasing the average order for each purchase. Our software supports both B2C and B2B businesses, and we're particularly strong with manufacturers and distributors that manage complex catalogs and sophisticated digital commerce requirements. As Bridgeline has evolved, certain products have shown such great promise that we drive most of our R&D and marketing investments towards them. Collectively, we call these products core, and we use the term legacy for the rest of our products. Our core products include Hawk's Search Suite of AI-powered search and product discovery solutions. Our legacy products continue to contribute profit that helps fund investments and grow and growth in the core product lines. Because our financial statements consolidate core and legacy, total company results do not always show the revenue growth profile of our core business. That's why we also discuss core revenue mix, core net revenue retention, core growth and new annual recurring revenue. Sales momentum remained strong in the third quarter. Last quarter, we set a record of nine new customer wins. And this quarter, we tied that record. In addition to winning nine new customers, 10 existing customers purchased additional license from us, resulting in 19 new subscription contracts and $1.7 million in total contract value, with more than $370,000 in annual recurring revenues. This performance demonstrates continued demand for our AI-powered product discovery solutions across both new customers and expansion opportunities. Core net revenue retention was 106%, reflecting strong retention and expansion across the core customer base. Core product revenue grew to $2.4 million for the quarter, compared to $2.2 million in the prior year period, and 13% growth in the trailing 12 months. Core revenue is now 62% of total revenue and 66% of subscription revenue compared to 57% of total revenue and 58% of subscription revenue in the prior year quarter respectively. Investors and stock analysts often ask us to separate core and legacy revenue to provide additional details for valuation calculations, recognizing the inefficiency in capital markets for Microcap stocks such as Bridgeline. Because core and legacy products have different growth profiles, they also have different valuation metrics. Growing AI SaaS companies with products like our core product lines are often valued with a multiple of three-time SaaS revenue and one-time services revenue, for example. Non-growing SaaS companies that generate gross profit like our legacy product lines often have multiples closer to one-time SAS and one-half-time services, for instance. Investors may use such multiples with our legacy revenue results in addition to the value of our core products for valuation analysis. The third quarter marked a record-time quarter for new customer acquisition, nine customer logo wins, 19 subscription contracts in total. And examples during this quarter include a U.S.-based wholesale distributor of pet farm and garden and home products who selected HawkSearch for its BigCommerce e-commerce platform following a 14-day sales cycle. That's right, 14-1-4. That's how quick the sales cycle is. The deployment supports approximately 25,000 products and more than 450,000 monthly sessions. Another Win for the quarter is a leading home and garden supplier who launched the first two of five contracted HawkSearch deployments across its B2B and D2C directed consumer e-commerce portfolio, covering approximately 80,000 SKUs with additional deployments scheduled for the future. A large-scale enterprise wholesale distributor selected HawkSearch to power search and product discovery across five oral commerce sites, with the potential to expand to eight sites. Collectively, these wins and launches demonstrate HawkSearch's strength in complex commerce environments, including large product catalogs, multi-site deployments, wholesale distribution networks, and sophisticated B2B buying experiences. On the product side, HawkSearch was ranked number one for the B2B search use case and garners critical capabilities for search and product discovery of 2026. This is the second consecutive year that Hawk Search was selected to be number one for B2B search by Gartner. This recognition is particularly meaningful because Gartner is widely relied upon by organizations when evaluating technology platforms. Unlike consumer commerce, B2B organizations must support customer-specific pricing, product entitlements, Complex catalogs and purchasing workflows designed for professional buyers rather than casual shoppers. HawkSearch leadership in B2B commerce reflects its deep expertise in solving these challenges for manufacturers, distributors, and industrial suppliers, helping earn recognition as the highest scoring solution in Gartner's B2B use case. This quarter, we expanded the adoption of HawkSearch AI Agent Suite. Customer sales and pipeline activity grew for shopping assistant, analytics assistant, and other AI-powered commerce tools as businesses increasingly look to use AI to improve product discovery and online revenue with Hawk Search. Customers and business buyers alike are becoming more accustomed to conversational experiences that allow them to ask questions, receive recommendations, and quickly find products that they need. HawkSearch provides this experience to our customers. In addition, we advanced the Hawk AI Shopping Assistant with our Aura AI Agent Framework to connect product discovery with inventory, pricing, entitlements, order history, and other commerce workflows. Together, these innovations help customers deliver more intelligent, personalized buying experiences across both B2B and B2C commerce environments. Our strategy is to continue growing core revenue, expanding ARR through new customers and existing customer adoption, maintain strong retention, and use AI to help customers drive more revenue from their digital commerce operations. The corridor's sales, customer deployments, and product progress reinforce HawkSearch's value for businesses with complex catalogs, multi-site requirements, and sophisticated B2B commerce needs. I'll turn the call over to our Chief Financial Officer, Tom Windhausen, to share details. Tom?