Bridgeline Digital (BLIN) Stock Climbs On Client Adoption

Bridgeline Digital BLIN Stock News

Bridgeline Digital Inc (NASDAQ: BLIN) is up more than 8% early on this morning after the company made an announcement with regard to client adoption. The client adoption specifically revolved around its recently acqauired asset, Celebros Search. Here’s what’s happening:

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BLIN Announces Positive Customer Adoption Of Celebros Search

In mid-February of 2019, Bridgeline Digital announced that it would acquire Celebros Search. This is an eCommerce platform that’s powered by AI with machine learning and incorporates Natural Language Processing algorithms. To put it simply, Celebros is a smart eCommerce search engine.

The engine is based on providing conversion-oriented search results to end users. It also offers a recommendation engine that opens the door to a potentially strong revenue stream.

Since the acquisition of the asset, it seems as though the company has been doing a great job generating sales. In fact, in a press release issued this morning, BLIN announced that seven new eCommerce brands have selected Celebros Search to power their customer search and merchandising experience. The new customers announced today include:

  • Inish Pharmacy
  • Vaughan Shoes
  • Mood Fabrics
  • ABC Carpet & Home
  • Restaurant Supply
  • Runnings
  • KSi International

According to the release, the license revenue that will be generated through these new relationships comes to $75,000 in annual recurring revenue. The fees will be paid for licensing the Natural Language Processing Search, Machine Learning Algorithms, Dynamic AutoComplete & Merchandising Capabilities and Search Analytics.

The new clients have also agreed to pay hosting and maintenance fees. Moreover, the licenses are on automatic annual renewal, suggesting that these seven new customers will be long term revenue drivers for BLIN and its new asset, Celebros.

In a statement, Ari Kahn, CEO at BLIN, had the following to offer:

Customer highly value the artificial intelligence (AI) built-in of the Celebros Search product to properly understand and interpret long-tail queries and provide the most accurate results. With Natural Language Processing and Machine Learning, our customers can expect to see great success in converting shoppers to buyers and loyal customers.

What’s The Big Deal?

$75,000 is not a lot of money for a publicly traded company. Even for a company with a market cap of under $3 million, this isn’t a very significant number. So, what’s the big deal?

Well, it’s important to keep in mind that Bridgeline Digital announced the acquisition of Celebros in February of 2019. That was just a few months ago, well 4 months to be exact. In just the span of 4 months, the company has been able to onboard 7 customers, leading to $75,000 in recurring revenue.

If the company were able to keep this rate of adoption going, a year from now, BLIN could be generating around $300,000 per year in recurring revenue from Celebros alone. This would be a meaningful amount of revenue, and it’s not out of sight.

Let’s not forget, Celebros isn’t the only product at Bridgeline Digital. The company actually has a trademark for The Digital Engagement Company. Ultimately, the company assists other companies in increasing the performance of omni-channel technologies. This includes websites, intranets, online stores, campaigns and more.

The company’s claim to fame is its Unbound platform that integrates Web Content Management, eCommerce, Marketing Automation, Site Search, Community Portals, Social Media Management, Translation and Web Analytics.

However, with the strong uptake of Celebros early on, the company may have two flagship products relatively soon.

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What Do You Think?

Where do you think BLIN stock is headed moving forward? Join the discussion in the comments below!

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