Bridgeline Digital Inc Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Casey Ryan - Westpark Capital, Inc. - Analyst : Ari, Thomas, how are you? Nice quarter.

Question: Casey Ryan - Westpark Capital, Inc. - Analyst : I have a question about, hey, great to talk to you. What are the incremental margins, you're talking about sort of expanding what the like example customer might spend using HawkSearch, right? What's the incremental gross margin, I guess, is what I'm thinking about. So the corporate average is 68%. But if a customer moves from billing, say, $12,000 a year or something to $20,000 because they're utilizing more features of Hawk, does the gross margin expand, say, directionally far above the corporate average?

Question: Casey Ryan - Westpark Capital, Inc. - Analyst : Yeah. That's actually a helpful point on the services side. So that 58% margin was sort of an anomaly maybe in the quarter and it shouldn't be something we expect every quarter moving forward from here.

Question: Casey Ryan - Westpark Capital, Inc. - Analyst : Okay. Thank you. That's really helpful. And then one more question. I'm just thinking about on the OpEx line. Maybe this is a market that needs evangelism and there's a natural cycle to it, I think as you were suggesting, as customers need to evaluate what these tools can do for them and start to integrate them, and as you say, not integrate them. But is there any value or potential, say, in like an unconstrained resource market where more sales and marketing could speed that up or does the market feel too big and it kind of needs to move at the pace and you guys can't necessarily drive that yourself? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 14, 2024 / 8:30PM, BLIN.OQ - Q3 2024 Bridgeline Digital Inc Earnings Call

Question: Casey Ryan - Westpark Capital, Inc. - Analyst : That makes a lot of sense. Thank you. It was a great quarter. We look forward to following along as we move forward. Thanks.