Investor Update

NASDAQ: BLIN

May 19, 2021

The information in this presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statement by use of the words “may,” “will,” “should,” “plans,” “explores,” “expects,” “anticipates,” “continues,” “estimates,” “projects,” “intends,” and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in customer order patterns, changes in customer offering mix, continued success in technological advances and delivering technological innovations, delays due to issues with outsourced service providers, and various other factors beyond the control of Bridgeline Digital, Inc. (the “Company”). Given these uncertainties, you should not place undue reliance on these forward-looking statements. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, among others, those set forth in our Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on December 23, 2020, as well as any updates to those risk factors that may be filed with the SEC from time to time in our periodic and current reports on Forms 8-K and 10-Q. All statements contained in this presentation are made only as of the date of this presentation, and the Company undertakes no duty to update this information unless required by law.

This presentation includes statistical and other industry and market data that the Company obtained from the industry publications and research, surveys and studies conducted by third parties. Industry publications and third-party research, surveys and studies generally indicate that their information has been obtained from sources believed to be reliable, although they do not guarantee the accuracy or completeness of such information. While the Company believes that these industry publications and third-party research, surveys and studies are reliable, the Company has not independently verified such data and the Company does not make any representation as to the accuracy of the information.

Safe Harbor Statement

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Company• Marketing Technology SaaS

• Help retailers grow online sales

Profitable Growing Company• 8% CAGR subscription revenue

• Positive Adj EBITDA

Strategic Growth• Acquire Apps & Customers

• Efficient cross-sales strategy

Highlights

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Bridgeline Digital, Inc.NASDAQ: BLIN

MarTech Market

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MarTech: A Market with Accelerating Growth

Accelerating Growth• 22% CAGR in 2019 => 28% CAGR since COVID• 28% CAGR in 2020 for Bridgeline• COVID advances online consumer demand beyond boxed products

• Delivery of perishables like take-out food • Curbside pickup orders

• COVID advances online marketing budgets from brick & mortar• B2B is 2/3 of offline market but 1/3 online market, this is shifting

5Sources:• https://www.statista.com/chart/14011/e-commerce-share-of-total-retail-sales/

Platforms• Foundation for online marketing

• Require extensive customization

• Purchased once every 5 years

• Enterprise sales cycle

MarTech Software and CompetitionApps• Extend platforms

• Out of the Box

• Purchased as needed

• Touchless sales cycle

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Enterprise Platforms

SMB Platforms

Apps

Platform

Marketplaces – Superstores without Aisles

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Platforms Marketplaces for Apps• Sea of one-off apps • Must know product name to find it• No consistent branding• Can only search by feature (eg. traffic)

Marketplace

Strategy

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Email Marketing

Lead Capture

Automation

Segmentation

Landing Pages

Franchise Pages

Store Locator

Traffic & SEO

Email

Online Order

Translation

Workflow

Language

Industry Solutions

International SEO

Dashboards

Performance

Heatmapping

Recording

Funnel Analysis

Natural Language

Machine Learning

Merchandising

Product Finder

Search Analytics

PORTAL

Publishing

Enterprise Search

SEO Management

Workflows

Translation

Catalog

Cart & Checkout

Shipping & Payments

Coupons

Personalization

Native Salesforce

Compliance

Authenticated Users

Omni-Channel

Intranet

CONTENT COMMERCE

• TAM – companies who re-platform every 5 years• Bridgeline differentiates on Revenue features• Convert features into Apps

• Stand alone • Out of the box• Compatible with competitors

• TAM is anyone with an e-Commerce site• Bridgeline can quickly product Apps from its platform• Launch Touchless Sales Program

• Lead generation – marketplaces, ratings, free trials• Close sales – BDRs• Upsells – dashboard

Expanding our Total Addressable Market

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Platform

MARKETING PAGES INSIGHTS SEARCHTRANSLATE

Apps

eCommerce 360

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REVENUE = TRAFFIC x CONVERSION x AOV

TRAFFIC CONVERSION

AOV

REVENUE

Our Message • Drive traffic• Boost conversions• Raise AOV

Branding for Growth• Simplify key concept behind growing revenue• 3 “buckets” to efficiently organize large portfolio of apps• Speak to main buying motivator - Revenue

Platform

eCommerce 360 has No Focus & No Leaders

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TRAFFIC CONVERSION

AOV

Revenue Apps Fail to Market• Apps are ‘products’ not ‘companies’• No focus on revenue• One app per company• No growth strategy

Platform

TRAFFIC CONVERSION

AOV

REVENUE

Marketplaces – Bridgeline Connects the Dots

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Branding and Messaging• Land grab in marketplaces• Feature & benefit messaging for SEO• Focus marketing on revenue category• Freemium model• OEM and open source accelerate

Traffic BuilderPages

MerchandiserRecommendations

CouponsSearch

eCommerce 360 Dashboard

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Gamification• At-a-glance ROI• Rapid feedback for actions

Cross Sale Dashboards• Product recommendations• Freemium for rapid adoption

Revenue from Every Angle• Artificial intelligence• Trusted advisor• Recommends what you need – this is

unlike other apps that only serve one dimension of the revenue equation

Touchless Sales Cycle

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Platforms – Enterprise Sales Cycle• 6 months• High salaried sales exec• Travel and entertainment• Expensive marketing, eg. conferences• $2M Booking Quota per Rep = 5 sales / year

• $1M services over 6 months• $1M subscription over 36 months = $28K MRR

Apps – Touchless Sales Cycle• 3 weeks• Less expensive inside sales rep• No travel• Marketplaces and online adds• $1M Booking Quota per Rep = 6 sales / month

• $0M services• $1M subscription over 24 months = $42K MRR

Sources:• www.forentrepreneurs.com/sales-complexity

EnterpriseSales

TouchlessSales

Highlights• Recommendation Dashboard• Traffic App• Lead Generator• Strong Technical and Marketing Team• Build European Presence in Brussels

Customers

1,800

Woorank Overview

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ARR

$2M

Leads/month

1,000+

Competition

TRAFFIC CONVERSION

AOV

Recommendation Dashboard

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AI Recommendation Engine• Rank recommendations on:

• Category• Role• Impact• Effort

• Link to:• Apps• Professional services• Tutorials

Traffic App

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Grow Online Traffic• SEO Auditing• Competitive Analysis• Searched Keyword Monitoring• Lead Generation

Lead Generator

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Touchless Sales and Leads• 200k monthly unique visitors• 1,500 Credit Card free trials• Lead categorization and distribution• Convert 18% trials to subscriptions• Touchless sales process• Land & expand strategy

1,800 Customers• 1,000 SMB

• 500 Mid-Market

• 300 Enterprise

Cross Sales

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Woorank Enterprise Customers

Highlights• Recommendation Dashboard• Traffic App• Lead Generator• Strong Technical and Marketing Team• Build European Presence in Brussels

Customers

350

Hawk Overview

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ARR

$5M

Partners

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TRAFFIC CONVERSION

AOV

Hawk SearchHawk Search

• Strong technical competitor in Site Search Market, Celebros Competitor• Wins 3-5 sales per month at $18K ARR/contract from partner channels• 300 customers and $5M revenue growing at 4% per year• Selected by EPI as private-label replacement to their embedded search• Focused on mid-market ($100M - $1B customers)• Owned by Chicago-based digital agency AmericanEagle.com• Strong sales and technology leadership motivated to join Bridgeline

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Partner Driven Sales300 Mid-Market Customers Drive $5M ARR

Competitive OpportunityCelebros

• Sophisticated NLP Algorithms powering concept-based search• InstantSearch key differentiator• Out of the box

Hawk• Search Information Manager• Dashboard • Visitor targeting & personalization• Live preview feature w/ insights on matches & ranking• SEO influencer tool - generating sitemaps for landing pages

Better Together - Rapid Path to Product Combination• Hawk is stronger platform w/ 3x customers and revenue• Celebros NLP pre-process for Elastic and Hawk index is Elastic• Celebros InstantSearch decoupled from backend as JS layer• Both products based on .NET stack• Sell upgrade to both customer bases for premium combined product

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Strategic Growth

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MarTech Market

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Market• Apps are “products” and not “companies”

• Target rich environment

Integration• Add dashboard to App

• Train dashboard to recommend

Cross Sales• Marketplaces

• Dashboard

• Touchless

Sources:• www. chiefmartec.com/2020/04/marketing-technology-landscape-2020-martech-5000

Recent Acquisitions

Pipeline

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Target Criteria• eCommerce360 Apps

• $2M - $5M revenue

• Accretive bottom line

Deal Structure• < 2x Revenue

• < 10x Adj EBITDA

• 40% Earn-Out

• Stock and Cash Mix

Deal Sourcing• 2 Buy-side bankers

• Criteria distributed to sell-side bankers

• Direct outreach

Sources:• www. chiefmartec.com/2020/04/marketing-technology-landscape-2020-martech-5000

Financials

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Q1 FY21 Results• Subscription impacted by single

customer• Growing Op Income and Adj. EBITDA• Net Income has non-cash fluctuations in

Other Expenses from Warrants

Q2 FY21 Guidance• Positive Op Income and Adj. EBITDA• Subscription revenue growth

Income Statement

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Income Statement Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 1H FY21Revenue

Services 1,096 899 714 701 837 885 1,722Subscription & License 1,736 1,840 1,919 2,004 1,999 1,989 3,988

Revenue 2,832 2,738 2,633 2,705 2,836 2,873 5,710

Cost of Goods SoldServices 568 469 378 393 374 474 848Subscription & License 790 716 701 492 583 591 1,174

Cost of Goods Sold 1,359 1,185 1,079 885 957 1,065 2,022Gross profit 1,473 1,554 1,554 1,820 1,879 1,809 3,688

Services GM 48% 48% 47% 44% 55% 46% 51%Subscription & License GM 54% 61% 63% 75% 71% 70% 71%

Gross Margin 52% 57% 59% 67% 66% 63% 65%

Operating ExpensesS&M 1,032 786 313 483 444 524 968G&A 750 723 464 529 465 608 1,073R&D 390 427 401 423 349 479 828Depr&Amort 258 249 224 229 232 240 471Restructuring 5 367 2 (7) 210 85 295

Operating Expenses 2,434 2,550 1,403 1,657 1,699 1,936 3,635Operating Income (961) (997) 151 163 180 (127) 53

Other Income/Expenses 1,097 1,819 (1,851) 892 (1,341) (429) (1,769)Net Income 136 823 (1,700) 1,055 (1,160) (556) (1,716)Adjusted EBITDA (664) (329) 434 448 676 239 915

Balance Sheet

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Assets• $2.2M Cash increase from Q1 FY21• $332K A/R grew from Q1 FY21• Q1 cash increase due to collection cycle

and Q2 proceeds from stock offering

Liabilities• No debt• $179K A/P reduction from Q4 FY20• $292K Deferred Rev grew from Q1 FY21• Deferred revenue increase with cash• Warrant liability fluxes with stock price

Equity• $1M PPP loan converted to equity

Balance Sheet Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21Assets

Current AssetsCash and Equivalents 408 234 1,165 861 1,277 3,497

Accounts Receivable and Unbilled Revenue 1,427 1,661 1,317 1,068 1,347 1,679Prepaid Expenses and Other Current Assets 424 328 252 378 588 597

Other Current Assets 1,852 1,990 1,569 1,446 1,935 2,275Total Current Assets 2,260 2,224 2,734 2,307 3,212 5,772

Equipment, Intangibles, and Depreciation 4,014 3,692 3,409 3,149 3,227 5,015Goodwill 5,557 5,557 5,557 5,557 5,557 8,018Other Assets 83 102 84 369 411 86

Total Assets 11,913 11,575 11,784 11,382 12,408 18,893

LiabilitiesCurrent Liabilities

Accounts Payable 1,909 2,235 1,869 1,311 1,132 1,237Accrued Liabilities 986 1,131 651 695 982 892Dividends Payable 159 185 0 0 0 0Accrued Earnouts - - - - - 2,006Deferred Revenue 2,304 2,527 2,297 1,914 2,335 2,627Current Portion of Debt - - - - - 659

Total Current Liabilities 5,357 6,077 4,817 3,920 4,450 7,422

Long Term Debt, Net of Current Portion 0 0 1,048 88 0 1,461Warrant Liability, Net of Current Portion 2,413 593 2,436 2,486 3,927 4,204Other Long Term Liabilities 258 234 235 533 774 416

Total Liabilities 8,028 6,904 8,535 7,026 9,151 13,503

Total Stockholders' Equity 3,885 4,670 3,248 4,356 3,257 5,390Total Liabilities and Stockholders' Equity 11,913 11,575 11,784 11,382 12,408 18,893

Preferred Stock• Dividend producing preferred converted • Series A – all converted at $1.75• Series C – no rights, no dividends• Series C – 350 shares remaining convert

to 38,889 common stock

Warrants• 2.5M Exercise Price $4.00• 677K Exercise Price $2.51• Expirations and new additions

• 2.5M expired March 2021• 677K added with May PIPE• Remaining expire Sept 2024

Cap Table Total Shares

Common Stock 5,391,548

Series C Preferred Stock (as converted) 38,889

New Warrants 2,945,561

Stock Options 573,201

Total 8,949,199

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After closing of $5.1 million Register. Direct + PIPE – May 14, 2021 Total SharesCommon Stock 6,451,548

Series C and D Preferred Stock (as converted) 1,223,100

New Warrants 3,622,682

Stock Options 573,201

Total 11,870,531

BLIN Represents a Compelling Opportunity

• Profitable• No debt• High average daily volume• Trading at discount to comps • No capital required for operations

Comps

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