Q4 2023 Bridgeline Digital Inc Earnings Call

Okay.

Thank you for standing by and welcome to Bridgeline Digital's 4th Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode.

Yeah.

Thank you for standing by and welcome to Bridge line Digital's fourth quarter 2023 earnings Conference call. At this time all participants are in a listen only mode. After the speaker presentation. There will be a question and answer session to ask a question. During the session you will need to press star one one on your tell us.

After the speaker presentation, there will be a question and answer session.

To ask a question during the session, you will need to press star one one on your telephone. To remove yourself from the question queue, you may press star one one again. I would now like to hand the call over to CFO Thomas Windhausen. Please.

Phone to remove yourself from the question queue, you May press Star one one again.

I'd now like to hand, the call over to CFO Thomas warehousing.

Go ahead.

Thomas Wenhouse: Thank you and good afternoon everyone. Thank you for joining us today. My name is Tom Windhouse and I'm the Chief Financial Officer of Bridgeline Digital. I'm pleased to welcome you to our fiscal 2023 fourth quarter conference call. On the call list this afternoon is Ari Khan, Bridgeline's President and CEO , who will begin the call to the discussion of our business highlights. I will then update you on our financial results for the quarter and we will conclude by taking questions.

Okay.

Thank you and good afternoon, everyone. Thank you for joining US today. My name is Tom with housing and I'm, The Chief Financial Officer of Bridge line digital.

I'm pleased to welcome you to our fiscal 2023 fourth quarter conference call.

On the call with US this afternoon, as Ari Kahn, President and CEO, who will begin the call with a discussion of our business highlights I will then update you our financial results for the quarter and we will conclude by taking questions.

Aric: Before we begin, I'd like to remind listeners that during this conference call, comments that we make regarding Bridgeline that are not historical facts are forward-looking statements in 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 that could cause such statements to differ materially from actual future events or results.

Before we begin I'd like to remind listeners that during this conference call comments that we make regarding bridge line.

Not historical facts are forward looking statements within the meaning of section 27 a.

Of the Securities Act of 1933 and section 21 E of the Securities Act of 1934.

Subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results.

Aric: These statements are made pursuant to the safe harbor provisions of the private securities litigation reform act of 1995 the internal projections of 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 the results of report today should not be considered indication of future performance.

These statements are made pursuant to the safe Harbor provisions of the private Securities Litigation Reform Act of 1095.

At our projections beliefs upon which we base our expectations today may change overtime, and we expressly disclaim an extreme no obligation to inform you if they do.

The results that we report today should not be considered indication of future performance.

Aric: Changes in economic, business, competitive, technological, regulatory, and other factors, such as the impact of public health measures, could cause bridgelines actually to develop the different material 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 have an impact on our business, please review the reports and documents filed in time-to-time by Bridgeline Digital for the Security and Exchange Commission.

Changes in economic business competitive technological regulatory and other factors such as the impact of public health measures could cause <unk> actual results to differ materially from those expressed or implied by the projections or forward looking statements made today.

Detailed for more detailed information about these factors and other risks that may have an impact on our business. Please review the reports and documents filed from time to time by <unk> digital with the Securities and Exchange Commission.

Aric: Also please note on the call this afternoon we will discuss some non- GAAP financial measures when commenting on the company's financial performance. We provide a reconciliation of our GAAP financial s to these non- GAAP measures in our earnings release. You can obtain a copy of our earnings release by visiting our GAAP financial s website.

Also please note on the call. This afternoon, we will discuss some non-GAAP financial measures when commenting on the company's financial performance. We've provided a reconciliation of our GAAP financials to these non-GAAP measures in our earnings release, you can obtain a copy of our earnings release by visiting our website at.

Aric: I'd now like to turn the call over to Ari Khan, Bridge Line's President and CEO . Ari? Thank you, Tom. Good afternoon, everyone.

Now I'd like to turn the call over to Ari Kahn Bridge lines, President and CEO.

Thank you Tom good afternoon, everyone.

Frank: In fiscal 23, Bridgeline signed more than $6 million in sales and had a revenue renewal rate of more than 90%.

Fiscal 'twenty three rigs one side more than $6 million in sales and had a revenue renewal rate of more than 90%.

Frank: The Hawks Search product line led the company sales with Hawks Search growing to nearly 50% of Richline's revenue with a renewal rate of more than 95%. In our fourth quarter, Richline booked an additional 27 sales for 900,000 in contract value that adds 375,000 in annual recurring revenue.

The Hot search product line led the company's sales with <unk> growing to nearly 50% of bridge lines revenue with a renewal rate of more than 95%.

In our fourth quarter <unk> booked an additional 27 sales for 900000 in contract value that adds 375000 in annual recurring revenue.

Frank: Bridgine closed the fourth quarter with a 92% revenue renewal rate for $2 million in renewed contracts, totaling $9 million in renewals for the year.

We're trying to close the fourth quarter with 92% revenue renewal rate for $2 million and renewed contracts totaling $9 million in renewals for the year.

Frank: Earlier this year, we explained that a large customer on a legacy product was winding down its license over 2023, which impacted the year's revenue. But at the same time, we delivered strong sales with our core products, especially Hawke.

Earlier this year, we explained that a large customer on a legacy product with winding down its license over 2023, which impacted the year's revenue, but at the same time, we delivered strong sales with our core product the question Hock search.

Frank: And our revenue mix is now driven by our core product lives, which has seen over 6 million in new customer contracts with a 95% renewal rate.

Our revenue mix is now.

And by our core product lines, which had seen over $6 million of new customer contracts with a 95% renewal rate.

Frank: This positions us for growth in 2024, and we expect Hawk Search to lead the way with our recently released AI capabilities such as our Smart Search module.

The vessels apps for growth in 2024, and we expect hog search to lead the way with our recently released AI capabilities, such as our smart search module.

Frank: Hawks Search sales are largely driven through our platform partnerships with big commerce, sales force, and optimizely. We also have agency partners including Xengage and AmericanEagle.com to drive new Hawks Search sales.

<unk> sales are largely driven through our platform partnerships with big Commerce, Salesforce and optimize labor.

It's about agency partner concluded X engaged at American Eagle that comp would drive new Hawk search sales.

Frank: Sales in our fourth quarter included Digital, a top multi-family apartments marketing agency who uses WooRank to grow online revenue for their customers. The agency will deliver WooRank SEO to accelerate its clients' online presence and help businesses access their digital reach, recognize areas for growth, and implement fast and effective strategies for improvement.

Sales in our fourth quarter included digital atop multifamily apartments marketing agency, who uses will rank to grow online revenue for their customers. The agency will deliver Reg FD object celebrate its clients online presence in health care Council expressed their digital reach recognize areas for growth and.

Fast and effective strategies for improvement.

Frank: FiltersFast, a number one filtration retail in the United States, licensed POC search to power their online search and recommendation.

Filter as fast a number one filtration retail in the United States licensed Hawk search to power their online search and recommendation.

Frank: The Hawks search rapid UI feature was integrated with their custom e-commerce platform, which allowed filter staff to quickly launch their site.

<unk> rapid UI feature was integrated with their customer ecommerce platform, which allowed filter fab to quickly launch their site.

Frank: Another new customer is Trident Enterprises, a leading live stock fencing supplier, selected talk search to grow online revenue on their big commerce website.

Another new customer is tried and enterprise.

Enterprises are leading livestock stock sensing supplier selected hot search to grow online revenue on their big Commerce website.

Frank: Hock Search will help Trident's customers quickly find products in their massive catalog using artificial intelligence powered search and natural language products.

Hock search will help <unk> customers quickly find products and their massive catalog using artificial intelligence powered search and natural language processing.

Frank: the Promoted Franchise listed in the Franchise 500 list, selected Bridgeline's TruePresence Franchise software to host local pages for their over 1,800 locations through TruePresence's high-performance local page system.

Prominent franchise listed in the franchise 500 list selected bridge line to correct. This franchise software to local pages for their over 1800 locations through true presence with high performance local cage system.

Frank: And another important win was the top financial institution who selected BridgeLine's accessibility product powered by accessibility to ensure its website is accessible to all and compliant with the American Disabilities Act.

And another important win was it.

Financial institution, who selected bridge lines acceptability product powered by capacity to ensure its website is acceptable to all in compliant with the American disabilities back.

Frank: Our partnerships with Optimizing and X Engage is an important part of our future.

Our partnerships with optimizing and excellent gauge is an important part of our future growth.

Frank: In October , we joined optimizing their annual user conference where we jointly announced heart searches integration with optimizelies configured commerce using X Engaged Connect.

However, we joined optimizing their annual user conference, where we jointly announced <unk> integration with optimized lease configure commerce.

Excellent gauge connector.

Frank: This announcement was followed with online webinars to further promote sales. Hawks Search is now in a unique position to provide site search for more than a thousand optimistically configured commerce customers, and several have already purchased the license for this integration.

Announcement was followed with online Webinars to further promote sales Hawks searches now in a unique position to provide site search for more than 1000 optimized we configured commerce customers and several have already purchased the license for this integration.

Frank: We recently announced a reseller partnership with Accessiby, the Market Leader and Web Accessibility. Accessiby helps over 180,000 companies, including PlayStation, Johnson & Johnson, and NBC, to improve compliance with the American Disability Act and similar legislation in Canada and in Europe .

We recently announced a reseller partnership with except to be the market leader in web accessibility, except to be helps over 180000 companies.

Companies, who Couldnt, Playstation Johnson, <unk> Johnson to NBC to improve compliance with American Disability Act similar legislation in Canada and in Europe.

Frank: BridgeLine's engineering team has focused on artificial intelligence to improve usability and productivity for both end users and site visitors.

Rich lines engineering team has focused on artificial intelligence to improve usability and productivity for both end users and site visitors.

Frank: Unbound added the AI assistant to help content creation with Gen AI capabilities to create new content for websites. And this same capability is now available on the Hawk Search landing page creator.

Unbound added the AI assistant to help content creation with Gen AI capabilities to create new content for website and this capability is now available on the Hartford's landing page creator.

Frank: Park Search announced an important AI-based capability called Smart Search as part of the Keywords to Concepts Initiative.

Hock search announced an important AI based capability called smart search as part of the keywords to concepts initiative.

Frank: SmartSearch has two core capabilities that improve sales conversions for hawk-search powered websites, concept search and visual search.

Smart search has two core capabilities that improve sales conversion for Hawk search powered websites concept search and visual search.

Frank: Concept search uses large language models to enable online shoppers to describe their goals in natural language rather than describe the product that they're searching for. For example, a shopper on a sporting goods site may search, I am going camping, rather than

Concept search use with large language model to enable online shoppers to describe their goals the natural language rather than describe the product that they're searching for for example, a sharper on our sporting goods site may search.

I am going camping rather than.

Waterproof caps.

Frank: concept search will return a wet waterproof tent as well as additional items that they may need to purchase. This is important as many shoppers may not know what specific products they need and instead only know the goal that they have such as the fact that they're going camping.

And concept search will return a wet waterproof pants as well as additional items that they may need to purchase. This is important as many shoppers may now may not know what specific products they need and instead only know the goal that they have such as the fact that they are going.

Frank: One great part of concept search is that it's largely language independent. It supports 50 languages, even for sites that have not yet been translated.

One great heart of concept search instead is largely language independence. It's of course 50 languages EBIT per site that have not yet been translated.

Frank: Visual Search allows online shoppers to upload an image or even take a picture with their iPhone to find visually similar products.

Visual search allows online shoppers to upload an image or even take a picture with your iPhone.

Visually similar products.

Frank: Industries like fashion retail require this because customers want to find a product that is similar to the one that they've seen before, but not exactly the same.

Industries like fashion retail required us because customers want to find a product that is similar to the one that <unk> seen before but not exactly the same.

Frank: Furthering our focus on the franchise market with TruePresence, Ridgeline released multi-engine management in partnership with an enterprise franchise customer.

Furthering our focus on the franchise market with true.

Rich line released multi engine management in partnership with an enterprise franchise customer.

Frank: Multi-engine management allows franchisors to tune search and merchandising features across thousands of franchises these sites and then allow individual franchises to further refine their individual sites. For example, when the change of clothing retailers wants to boost certain seasonal products to the top of their search results, they can do so from the multi-engine console to automatically boost sales in every single one of their stores who have those items in stock.

The engine management allows franchise ours to turn search and merchandising features across thousands of franchisees site and then allow individual franchisees to further refine their individual sites for example in the clothing retailers wants to boost certain seasonal products to the top of their search results. They can do so from the water.

Engine Council to automatically boost sales that every single one of their stores, who have those items in stock.

Frank: Going forward, we expect hawk search and true presence to be important parts of our growth with investments in AI across both product lines that will drive new sales and upgrades in our existing customer base.

Going forward, we expect hog search and true practice to be important parts of our growth with investments in AI across both bulk product line that will drive new sales and upgrades in our existing customer base Smart search has been especially strong with seven sales and just the last two months and a pipeline of more 100 more than 700000.

Frank: Smart Search has been especially strong with seven sales in just the last two months and a pipeline of more than 700,000 in ARR since its release in September .

Since its release.

In September.

Speaker Change: This time, I'd like to turn the call over to our Chief Financial Officer, Tom Woodhouse.

At this time I'd like to turn the call over to our Chief Financial Officer, Tom warehouses Tom.

Tomlin Houses: Thanks, Ari. I'll provide an update of our financial results for the fourth quarter of fiscal 2023, which ended September 30th, 2020.

Yeah.

Thanks, Sorry, I will provide an update of our financial results for the.

The fourth quarter of fiscal 2023, which ended September 32023.

Tomlin Houses: Total revenue for the quarter ended September 30, 2023 with 3.8 million compared to 4.2 million in the prior year.

Total revenue for the quarter ended September 32023 was $3 8 million compared to $4 2 million in the prior year period.

Tomlin Houses: Now going into each component of revenue, our subscription license revenue, which is comprised of SAS licenses, maintenance and hosting revenue and perpetual license revenue for the quarter ended September 30th, 2023 with 3.1 million compared to 3.4 million in the prior year period.

Now going into each component of revenue our subscription license revenue, which is comprised of SaaS licenses maintenance and hosting revenue and perpetual license revenue for the quarter ended September 32023 was $3 1 million compared to $3 4 million in the prior year period.

Tomlin Houses: As a percentage of total revenue, subscription and licenses revenue was 81% of total revenue, but a quarter ended to 2023.

As a percentage of total revenue subscription licenses revenue was 81% of total revenue for the quarter ended the 2023.

Tomlin Houses: Services revenue was over $700,000 for the quarter and at September 30th, 23, a slight decrease from just under $800,000 in the prior year fourth quarter. As a percentage of revenue, services revenue account for 19% of total revenue for the quarter ended September .

Services revenue was over 700000 for the quarter ended September 32003, a slight decrease from just under 800000 in the prior year fourth quarter.

That's in terms of revenue services revenue accounted for 19% of total revenue for the quarter ended September 23.

Tomlin Houses: Our cost of revenue is $1.2 million for the quarter end of September 23, which is consistent with $1.2 million in the prior year.

Our cost of revenue was $1 2 million for the quarter ended September 23, which is consistent with $1 2 million in the prior year period.

Tomlin Houses: And as a result, our gross profit for the quarter end of September 23 was 2.6 million compared to 3.0 million in a prior year.

As a result, our gross profit for the quarter ended September 23 was $2 6 million compared to 3.0 million in the prior year period.

Tomlin Houses: Overall, our gross profit margin was 68% for the quarter ended September 23 compared to 71% in the prior year period.

Overall, our gross profit margin was 68% for the quarter ended September 23, compared to 71% in the prior year period.

Tomlin Houses: Our subscription and license gross margins were 73% for the quarter ended September 23 compared to 76% in the prior year period, and our services gross margins were 46% for the quarter ended September 23 compared to 47% in the same period in 2022.

Our subscription and license gross margins were 73% for the quarter ended September 23, compared to 76% in the prior year period, and our services gross margins were 46% for the quarter ended September 23, compared to 47% in the same period in 2022.

Tomlin Houses: Our operating expenses were $10.8 million for the quarter ended September 30, 2023, an increase of $3.4 million in the prior year period. Our operating expenses in the current year quarter included a $7.5 million goodwill impairment.

Our operating expenses were $10 8 million for the quarter ended September 30, 23, an increase of $3 4 million.

In the prior year period, our operating expenses in the current year quarter included a $7 $5 million goodwill impairment charge.

Tomlin Houses: Moving to below OPEX, the change in fair value of our liability classified warrants resulted in non-cash income of $200,000 compared to a slight loss in the prior year period. The change in share price is the primary driver of the change in fair value of the warrants.

Moving to below Opex the change in fair value of our liability classified warrants resulted in noncash income of 200000 compared to a slight loss in the prior year period. The change in share price was the primary driver of the change in fair value of warrants.

Tomlin Houses: Moving to the bottom line, our net loss was $8.1 million for the quarter ended September 30, 2023, compared to a net loss of $500,000 in the prior year period. And the current year period included the impact of the $7.5 million in goodwill.

Moving to the bottom line, our net loss was $8 1 million for the quarter ended September 32023, compared to a net loss of 500000 in the prior year period and the current year period included the impact of the $7 5 million goodwill impairment.

Tomlin Houses: Moving to EBITDA, our adjusted EBITDA for the quarter, September 23 with negative 100,000 compared to a positive 100,000 in the prior year period.

Moving to EBITDA, our adjusted EBITDA for the quarter September 23 was negative 100000.

<unk> to a positive 100000 in the prior year period.

Tomlin Houses: Moving on to our balance sheet, on September 30th, 23, we had cash of 2.4 million and accounts receivable of 1.0 million. Our total data outstanding at September 30th, 23 was about 660,000 euros or 700,000 US dollars. The weighted average interest rate on that is about four and a half percent and principal payments are due through 2020.

Yeah.

Moving onto our balance sheet on September 30 of 'twenty, three we had cash of $2 4 million and accounts receivable of 1.0.

Our total debt outstanding at September 30 of 'twenty, three was about 660000 euros or 700000 U S dollars. The weighted average interest rate on that is about four 5% and principal payments are due through 2028.

Tomlin Houses: We have no other debt or remaining earn out from any of our previous acquisitions on our balance sheet and it's September 30 23 our total assets were 17.6 million and our total liabilities were 6.2 million.

We have no other debt remaining earn out from any of our previous acquisitions on our balance sheet at September 32003, our total assets were $17 $6 million and our total liabilities were $6 2 million.

Finally, I wanted to give an update on our cap table as of September 30th 23, our cap table included $10 4 million of outstanding shares.

Tomlin Houses: As of September 30th, 23, our cap table included 10.4 million outstanding shares, 39,000 shares from a series C preferred stock on an as-converted basis, 1.75 million warrants,

9000 shares from our series C preferred stock on an as converted basis.

175 million warrants and $1 8 million options.

Tomlin Houses: In October 23, 54,000 warrants expired. That leaves just over 1.7 million warrants currently outstanding.

On October $23 54000 warrants expired that leaves just over $1 7 million warrants currently outstanding.

Tomlin Houses: 900,000 warrants whose exercise price is $4 will expire in less than one year in September 2024. After that, we will have approximately 800,000 warrants, primarily including 180,000 warrants with a $2.85 exercise price expiring in May 26 and 590,000 warrants with a $2.51 exercise price, which expire in November 2026.

901000 warrants with exercise prices $4 will expire in less than one year in September 2024.

After that we will have approximately 800000 warrants primarily including a 180000 warrants with a $2 85 exercise price expiring in May 26, and 590000 warrants with a $2 51 extra price exercise price, which expire in November 2026.

Tomlin Houses: Bridgeline looks forward to continued growth and success in fiscal 24 and beyond as we continue our focus on revenue growth, product innovation, customer success and delivering shareholder.

Richard I look forward to continued growth and success in fiscal 'twenty four and beyond as we continue our focus on revenue growth product innovation customer success and delivering shareholder value.

Speaker Change: Thank you for joining us on the call today, and at this time, we'd like to open the call up to questions and answers.

Thank you for joining us on the call today at this time I'd like to open the call up to questions and answers moderator.

Speaker Change: As a reminder, to ask a question, you will need to press star 11 on your telephone. To remove yourself from the question queue, you may press star 11 again. Again, that's star 11. Please stand by while we compile the Q&A roster.

As a reminder to ask a question you will need to press star one one on your telephone to remove yourself from the question queue. You May press Star one again.

Again, Thats star one one.

Please standby, while we compile the Q&A roster.

Okay.

Our first question.

Our first question.

Comes from the line.

Mr Halpern.

Speaker Change: Hi, of Tagliate brothers. Your line is open. Please go ahead, Howard.

Hi.

Click brothers. Your line is open. Please go ahead Howard.

Speaker Change: Hi guys, congratulations on navigating an interesting year.

Hi, guys congratulations on navigating navigating an interesting year.

Speaker Change: Well, thank you Howard, check to hear your voice so based on the commentary in the beginning.

Thank you Howard.

Okay.

So based on the commentary in the beginning.

Speaker Change: Can we assume that the fourth quarter revenue is sort of going to be the low point and sequentially from that 3.8 million we should start to see to see growth quarter

Can we.

Assume that.

Fourth quarter revenue is sort of going to be.

Be the low point and sequentially from that $3 8 million, we should start to see.

To see growth.

Quarter by quarter.

Speaker Change: Yeah, you should start to see quarter by quarter growth. So, uh, last year we had an important customer on a legacy product, uh, wind down beginning the first quarter, uh, Equationally, each quarter and their final.

Yes, you should.

Starting to see quarter by quarter growth.

Last year, we had an important customer on a legacy product.

Wind down beginning the first.

First quarter.

Sequentially each quarter.

Again they are final.

Hi.

Speaker Change: license decrease is actually Q1. This quarter that we're in right now. However, our other product lines have grown. Now we are more than half our core products, which are growing and that's going to overshadow the legacy decline that we saw in the past.

License decrease is actually Q1 this quarter that we're in right now however, our other.

Our product lines have grown now that now we are more than half our core products, which are growing and that's going to overshadow. The legacy decline that we saw in the past.

Okay.

How important I guess was it bigger.

Speaker Change: in developing the, you know, the AI capabilities for new customers and to

In developing that.

The AI capabilities for.

New customers and two.

Maybe upper.

Speaker Change: upgrade the upgrade and expand within your existing customer

Upgrade though.

Great and expand within.

Your existing customer base.

Speaker Change: So, you know, the advancements that have happened in AI as a science in the last two years have been amazing. My background is in AI. I've got a PhD in AI, and I'm very energized and excited over everything that's happened, especially with area of research called large language models. We've been able to very quickly.

So.

The advancements that have happened in AI as the science in the last two years have been amazing my background is in AI and got a Phd in AI and Im very energized and excited over everything thats happened, especially with.

Area of research called large language models, we've been able to very quickly.

Speaker Change: incorporate capabilities in large language models specifically into both Hocksearch and our TruePresent products. These capabilities are allowing our customers to increase the revenue on their websites by allowing

Incorporate capabilities in large language models, specifically into both hot search and our true present products. These capabilities are allowing our customers to increase the revenue on their websites by allowing the end users of those websites to more naturally.

Speaker Change: end users of those websites to more naturally search for products even if they don't know what they need to just say what they're going to do. I'm going to go camping for instance and have the

Search for products, even if they don't know what they need to just say, what they're going to do I'm going to go camping for instance, and have the <unk>.

Speaker Change: site say, well, great, if you're going to go camping, here's the products we have that you might want to buy.

Site say well, great if youre going to go camping here are the products, we have that you might want to buy.

Speaker Change: Our existing customers have tremendous demand for these capabilities in just a very short period of time. We've signed seven licenses within our existing customer base and we've got a huge pipeline over $700,000 in annual recurring revenue.

Our existing customers have tremendous demand for these capabilities and just a very short period of time, we've signed seven licenses within our existing customer base and we've got a huge pipeline over 700000 annual recurring revenue.

Speaker Change: and we are already winning new customers with these capabilities as well. They really differentiate Hawks search from anyone else in the marketplace.

And we are already winning new customers with these capabilities as well they really differentiate hawk search from anyone else.

In the marketplace shows the company Bridge line is a true innovator and leader in artificial intelligence and bring capabilities to true present that are not they're natively within any other page local pages system, especially a franchise system. So we think that this is.

Speaker Change: shows the company bridge line as a true innovator and leader in artificial intelligence and brings capabilities to true presence that are not there natively within any other page, local pages system, especially a franchise system. So we think that this is going to be a huge part of e-commerce 360 strategy for us, differentiator, and we've got the expertise in-house to move faster than anyone else.

Going to be a huge part of E. Commerce 360 strategy for us differentiator and we've got the expertise in house to move faster than anyone else.

Speaker Change: And so as AI continues to develop, you'll be able to maintain that cutting edge for your customers.

So as AI.

AI continues to develop you'll be you'll be able to maintain that cutting edge for your customers.

Yes, it's a sprint right now to get ahead.

Speaker Change: And we are moving very quickly. We've got a lead on all of our competitors. One of them, Algolia, is very strong, and I'll say that they've got some great capabilities. They're the only ones that are in the same area as we are from lead perspective. And one of the amazing things that's happening with AI, and this will be disruptive across many, many industries, is that the foundational capabilities from companies like,

And we are moving very quickly.

Got a.

Our lead on all of our competitors one of them. Our goal here is very strong and I will say that they've got.

Some great capabilities, they're the only ones that are in the same area as we are from.

From <unk> perspective, and what are the amazing thing thats happening with AI and this will be disruptive across many many industries is that the foundational capabilities.

From companies like open AI.

Speaker Change: are mature.

Our mature and easy to develop a pi now if you don't understand the underlying concepts you can get caught up and.

Speaker Change: easy to develop upon. Now, if you don't understand the underlying concepts, you can get caught up in a million dead ends, but we do understand those concepts. So, we don't need the hundreds of millions of dollars to develop, for instance, a large language model ourselves in the years and years of research. Now, those capabilities are generally available. We know how to use them, and we're this is going to change the

Dan, but we do understand the concept. So we don't need the hundreds of millions of dollars to develop for instance, a large language model ourself in the years and years of research now those are those.

Those capabilities are generally available we know how to use them and we're going to move quickly and this is going to change.

Speaker Change: the software industry and many industries because if you can understand the business problems that your customers have.

The software industry and many industries, because if you can understand the business problems that your customers have.

Speaker Change: Then you can solve them in new ways without an army of engineers and it will level the playing fields for companies that are bridgeline size with companies that are much larger and allow us to innovate through our customer relationships and our deeper understanding of the core business problems that they have as opposed to just raw mass. So this is our time. We're excited for 2024. We're going to make big, big moves in AI.

Then you can solve them in new ways without an army of engineers and then it will level the playing fields for companies that are bridge line side with companies that are much larger and allow us to innovate through our customer relationship and our deeper understanding of the core business problems that they have as opposed.

Adjust raw math. So this is our time, we're excited for 2024.

Okay Big moves in AI.

Speaker Change: And does all this also factor in in potential acquisitions that you will look for?

And does this also factor in potential acquisitions that you would look for.

Speaker Change: companies now that leverage everything that you've developed.

Companies know that absolutely.

Leverage everything that you've developed developed it does it's interesting because we have for a long time, how does the thesis.

Speaker Change: It does. It's interesting because, you know, we have for a long time held as a thesis that the customer base and an acquisition is something that is often undervalued and that we, and this is a big part of our e-commerce 360 capability, have an understanding of that and can leverage that with new products to cross sell. Now, when you take a look at a lot of the businesses that might be acquisition targets,

<unk>.

Customer base and an acquisition is something that is often undervalued and that we.

And this is a big part of our E Commerce 360 capability.

And understanding of that and can leverage that with new products to cross sell now when you take a look at a lot of the businesses that might be acquisition targets.

Speaker Change: A lot of times they may have challenges with regards to innovating new technologies and that might be one of the reasons why they would be a candidate target for us, but over the years they have accumulated customers. We can approach those customers with new capabilities, bring AI swiftly into the products that they're already using and grow on that customer

A lot of times. They may have challenges with regards to innovating new technologies to that might be one of the reasons why they would be a candidate target for us but over the years. They have accumulated customers. We can approach those customers with new capabilities bring AI swiftly into the products that they are already using.

And and grow on that customer base, so that is.

Speaker Change: So that is certainly an opportunity for us in 2024. And, you know, we're continuing to look at pipelines. It's a challenge. Our stock price is not helpful with regards to doing those acquisitions, obviously, but our capabilities are there. And, you know, we'll continue to evaluate companies and find the right one at the right time to add to our mix. Okay, well, keep up the great work, guys.

Certainly an opportunity for us in 2024 and.

We're continuing to look at pipeline, it's a challenge our stock price is not helpful with regards to doing those acquisitions obviously.

Our capabilities are there and.

We'll continue to evaluate companies and find the right one at the right time to add to our mix.

Okay, well keep up the great work guys.

Thank you Howard.

No.

Speaker Change: Thank you. I would now like to turn the conference back to management for closing remarks.

Thank you.

I would now like to turn the conference back to management for closing remarks.

Speaker Change: Well, everybody, thank you for joining us today. We appreciate your continued support of all of our customers, our partners, and our shareholders. We're really excited about our business, ongoing growth prospects, and the new products that we're releasing. We look forward to speaking with you again in our first quarter fiscal 24 conference call. That will be in February . And until then, happy New Year, everybody. Have a great 2024.

Great well everybody. Thank you for joining us today. We appreciate your continued support of all of our customers our partners and our shareholders. So we're really excited about our business ongoing growth product prospects and the new products that we're releasing.

We look forward to speaking with you again in our first quarter fiscal 'twenty four conference call that will be in February and till then happy new year, everybody have a great 2024.

Speaker Change: This concludes today's conference call. Thank you for participating. You may now disconnect.

This concludes today's conference call. Thank you for participating you may now disconnect.

Okay.

[music].

Okay.

Yes.

[music].

Sure.

[music].

Okay.

[music].

Okay.

So.

Tim.

Thank.