Bridgeline Digital achieves 117% net revenue retention and 16% CAGR, driven by AI product expansion and shorter sales cycles in fiscal 2025.

Greetings. Welcome to the Bridgeland Digital fourth quarter 2025 earnings call. At this time, all participants are in 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 0 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Thomas Winhausen. You may begin.

Begin. Thank you and good afternoon everyone. Thank you for joining us today. My name is Thomas Winhausen and I'm the Chief Financial Officer of Bridgeline Digital. I'm pleased to welcome you to our fiscal 2025 fourth quarter conference call. On the call with us today is Ari Khan, Bridgeline's President and CEO. We'll begin the call with a discussion of our business highlights. I will then update you on our financial results for the quarter. We will conclude by taking questions. Before we begin, I'd like to remind listeners that during the conference call, comments that are made 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 Exchange Act of 1934 and are subject to risks and uncertainties that could cause our 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 Act 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. The results that we report today should not be considered as an indication of future performance. Changes in economic, business, competitive, technological, regulatory and other factors 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 the factors and other risks that may have an impact on our business, please review the reports and documents as filed from time to time by Bridgeline Digital with the securities and Exchange Commission. Also, please note that on the call this afternoon we'll discuss some non GAAP financial measures when commenting on the Company's financial performance. We provide a reconciliation of our GAAP financials to these non GAAP measures in our earnings release. You can obtain a copy of our earnings release from our website. I'd now like to turn the call over to Ari Khan, Bridgeline's President and CEO.

Ari? Thank you, Tom. Good afternoon everyone. It's been a transformative year for Bridgeline with our core products led by Hawk Search suite and its AI products, reaching 58% of our total revenue or $8.9 million and over 60% of our subscription revenue 7.4 million with 75% gross margin, validating our dominance in the B2B segment. Gartner ranked Hawk Search number one for the B2B search use case in their 2025 Critical Capabilities Report. Hawk Search customers voted with their pocketbooks by renewing their subscription, expanding their license limits and investing in our AI products. Together, this resulted in 117% net revenue retention and 16% Compound Annual Growth Rate (CAGR) for our core products. Hawk Search's average sales cycle reduced from 160 days in fiscal 2024 to just 92 days in fiscal 2025, and our average ARR per sale grew by 35% from 18,500 to $25,000. This year we sold 83 licenses with 6.9 million in total contract value for 2.4 million in ARR. This is an 18% increase over fiscal 2024, which itself was a 74% increase over fiscal. 2023. 2024. 74% increase was hard to top, but we did it. We start fiscal 2026 with 65% larger sales pipeline, a shorter sales cycle, a higher average sales size and top analyst recognition from Gartner compared to the beginning of fiscal 2025. Of course we want cumulative growth for the total whole company, and it's been a long haul with our.