Building materials distributor adopts AI search tech

WOBURN, MASSACHUSETTS - Bridgeline Digital, Inc. (NASDAQ:BLIN), a provider of AI-driven marketing technology with a market capitalization of $14.31 million and annual revenue of $15.39 million, recently announced that a significant building materials distributor in the United States has chosen its HawkSearch tool to improve their eCommerce search functionality on Optimizely platforms. This move aims to enhance product discovery and customer engagement for the distributor, which operates multiple distribution centers nationwide. According to InvestingPro data, Bridgeline maintains an impressive gross profit margin of 67.67%, suggesting strong pricing power in its software solutions.

The distributor sought a scalable search solution to boost online product visibility and engagement. HawkSearch will provide AI-powered search capabilities designed to increase relevance, conversion rates, and revenue on the company’s eCommerce site. The search tool’s integration with Optimizely includes features essential to enterprise distributors, such as Unit of Measure support, Concept Search, and advanced marketing and merchandising tools. For deeper insights into Bridgeline’s technology and market position, InvestingPro subscribers can access comprehensive analysis and multiple additional ProTips.

A notable aspect of HawkSearch’s appeal was its ability to quickly set up a development environment and begin product indexing prior to the finalization of the contract, which is expected to lead to a faster realization of value for the building materials distributor.

Ari Kahn, CEO of Bridgeline Digital, stated, "This implementation reinforces HawkSearch’s expanding role in the Optimizely Configured Commerce ecosystem. Our intelligent search technology is helping enterprise distributors create seamless, relevant customer experiences that drive measurable results."

Bridgeline Digital focuses on helping companies increase their online revenue by enhancing traffic, conversion rates, and average order value. This recent adoption of HawkSearch by a prominent distributor indicates Bridgeline’s growing influence within the eCommerce search and marketing technology sector. While the stock has shown significant volatility, analyst targets suggest considerable upside potential, with price targets ranging from $3.50 to $4.62. InvestingPro analysis indicates the stock is currently fairly valued based on its proprietary Fair Value model.

The information for this article is based on a press release statement from Bridgeline Digital.

In other recent news, Bridgeline Digital reported its Q4 2024 financial results, revealing flat revenue at $3.8 million year-over-year. The company maintained a net loss of $600,000, consistent with the previous year, despite launching several new AI-based products. Subscription license revenue saw a slight decline of 1%, while services revenue increased by 11%. Bridgeline Digital has also announced a shift in its strategy, reallocating resources from research and development to sales and marketing to capitalize on market demand. In a separate development, Bridgeline Digital successfully implemented its HawkSearch tool for a major scientific equipment retailer, enhancing the customer experience with AI-driven search capabilities. Additionally, the company experienced changes in its Board of Directors, with Michael Taglich resigning and Brandon Ross being appointed as a new director, bringing significant financial services experience. These developments reflect Bridgeline Digital’s ongoing efforts to innovate and expand its market presence.

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