Bridgeline Digital Inc (NASDAQ: BLIN) is having an incredibly strong start to the trading session this morning, and for good reason. The company announced a multi-year license renewal, exciting investors and pushing the stock for the top. Today, we’ll talk about:
- The license renewal;
- what we’re seeing from BLIN stock as a result; and
- what we’ll be watching for ahead.
BLIN Announces License Renewal
As mentioned above, Bridgeline Digital is having a great day in the market today after announcing a renewal to a licensing agreement. The announcement came via press release early this morning.
In the release, BLIN said that a global biopharmaceutical company will continue to leverage its OrchestraCMS to power its mission-critical websites. The comapny just so happens to be one of the largest license holders of OrchestraCMS.
In the release, Bridgeline said that the large customer renewed their Website Channel License for a three-year term valued at about $700,000. This renewal follows the largest license renewal of the product, which was executed in December of 2018 and was also a three-year term.
In the release, the company said that as a result of these license agreement renewals, over one third of its OrchestraCMS revenue is now committed to three-year license renewals.
In a statement, Ari Kahn, CEO at BLIN, had the following to offer:
Customer satisfaction and retention is a large part of our culture at Bridgeline and winning long term commitments – as opposed to the industry standard of 12-month renewals – is great validation of the strength of OrchestraCMS, the commitment of its users, and the success of our focus on customer satisfaction.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Bridgeline, the news proved to be overwhelmingly positive.
After all, the license renewal shows that not only are large clients happy with the service they receive, it will also drive significant revenue. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:46), BLIN is trading at $9.08 per share after a gain of $2.90 per share or 26.93% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on BLIN. In particular, we’re interested in following the story surrounding the company’s continued work to expand the licensed revenue of its services and provide value to investors. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
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