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BRIDGELINE DIGITAL Marketing Technology Software Company Third quarter Summary : Bridgeline Announces Financial Results for the Third Quarter of Fiscal 2021 Revenue Increases by 31 % with Strong Revenue Expected Next Quarter Strong Cash Position Enables Additional Investment in Sales & Marketing Woburn , Mass . , August 16 , 2021 - Bridgeline Digital , Inc. ( NASDAQ : BLIN ) , a provider of cloud - based Marketing Technology software , today announced financial results for its fiscal third quarter ended June 30 , 2021 . ● Exhibit 99.1 " Bridgeline posted 31 % topline growth this quarter and expects license and subscription revenue to grow by double digits next quarter , ” said Ari Kahn , Bridgeline's President , and Chief Executive Officer . Mr. Kahn continued , " We won more license sales in our third quarter than ever before in the company's history , plus Bridgeline has approximately $ 10M in cash , which will accelerate sales and marketing investments for even stronger quarters to come . " Total revenue , which is comprised of Licenses and Services revenue , was $ 3.4 million for the quarter ended June 30 , 2021 as compared to $ 2.6 million for the same period in 2020. Subscription and licenses revenue grew by 37 % and Services revenue by 15 % . Subscription and licenses revenue , which is comprised of SaaS licenses , maintenance and hosting revenue and perpetual license revenue increased 37 % to $ 2.6 million for the quarter ended June 30 , 2021 , from $ 1.9 million for the same period in 2020. As a percentage of total revenue , Subscription and licenses revenue increased 3 % to 76 % of total revenue for the quarter ended June 30 , 2021 , compared to 73 % for the same period in 2020 . Services revenue increased 15 % or $ 108,000 to $ 821,000 for the quarter ended June 30 , 2021 as compared to $ 713,000 for the same period in 2020. As a percentage of total revenue , Services revenue accounted for 24 % of total revenue for the quarter ended June 30 , 2021 , compared to 27 % for the same period in 2020 . Gross profit increased 45 % or $ 699,000 to $ 2.3 million for the quarter ended June 30 , 2021 as compared to $ 1.6 million for the same period in 2020. Cost of revenue increased 11 % or $ 114,000 to $ 1.2 million for the quarter ended June 30 , 2021 compared to $ 1.1 million for the same period in 2020. Gross margin percentage increased to 65 % for the quarter ended June 30 , 2021 , compared to 59 % for the same period in 2020. Subscription and licenses gross margin percentage were 72 % for three months ended June 30 , 2021 as compared to 64 % for the same period in 2020. Services gross margin percentage were consistent at 45 % for the three months ended June 30 , 2021 and 2020 . ● Operating expenses increased $ 1.5 million to $ 2.9 million for the quarter ended June 30 , 2021 from $ 1.4 million for the same period in 2020. Included within the quarterly totals as of June 30 , 2021 are additional investment in sales and marketing , and acquisition related costs associated with the integration of both Woorank and Hawksearch . ● Operating loss for the quarter ended June 30 , 2021 is $ 615,000 as compared to $ 150,000 profit for the same period in 2020 .