Exhibit 99.1

The Digital Engagement Company

Bridgeline Announces Financial Results for the Third Quarter of Fiscal 2020

Recurring Revenue Increases by 22%

Positive Operating Income and Adjusted EBITDA

Woburn, Mass., August 13, 2020 - Bridgeline Digital, Inc. (NASDAQ: BLIN), The Digital Engagement Company, today announced financial results for its fiscal third quarter ended June 30, 2020.

“In our third quarter, recurring revenue grew 22% and we delivered positive operating income and positive Adjusted EBITDA,” said Ari Kahn, Bridgeline’s President and Chief Executive Officer. “We expect similar success in Q4 with continued growth in recurring revenue, positive operating income and positive Adjusted EBITDA. We have seen very few business delays from COVID, and we have experienced growth in several areas including several online pharmacies purchasing our Celebros product to improve personal protective equipment sales.”

“Bridgeline won more license sales in Q3 than in the previously two quarters combined and in the first half of Q4, we’ve already won more license sales than in all of Q3,” continued Mr. Kahn. “We have a faster telephonic sales cycle thanks to our focus on making our products more turn-key. Our turn-key focus differentiates us from competitors who require expensive customizations for capabilities we now provide out-of-the-box. We will continue investing along this path to deliver even greater ROI to our customers and further accelerate license sales.”

Third Quarter Summary:

Year to Date Summary:

Financial Results

Third Quarter

Total revenue which is comprised of License and Services revenue for the quarter ended June 30, 2020 was $2.6 million, compared to $2.7 million for the same period in 2019. Subscription and perpetual licenses revenue, which is comprised of SaaS licenses, maintenance and hosting revenue, and perpetual license revenue increased 22% to $1.9 million for the quarter ended June 30, 2020, compared to $1.6 million for the same period in 2019. Recurring revenue, which is comprised of SaaS licenses, maintenance and hosting revenue, increased 22% to $1.9 million for the quarter ended June 30, 2020 from $1.6 million for the same period in 2019. Services revenue decreased $405,000 to $713,000 for the quarter ended June 30, 2020 as compared to $1.1 million for the same period in 2019.

Gross profit increased 29% or $351,000 to $1.6 million for the quarter ended June 30, 2020 as compared to $1.2 million for the same period in 2019. Cost of revenue decreased 28% or $412,000 to $1.1 million for the quarter ended June 30, 2020 compared to $1.5 million for the same period in 2019. Gross margin increased to 59% for the quarter ended June 30, 2020, compared to 45% for the same period in 2019.

Operating expenses decreased 65% or $2.6 million to $1.4 million for the quarter ended June 30, 2020 from $4.0 million for the same period in 2019. Included within the quarter ended June 2019 results are acquisition charges of $938,000, respectively.

Net loss applicable to common shareholders for the fiscal quarter ended June 30, 2020 is $1.7 million, compared to net income of $7.2 million for the same period in 2019. Included within the net loss for the three months ended June 30, 2020 and net income for the same period in 2019 was a non-cash loss of $1.8 million and net gain of $10.1 million attributable to the change in fair value of certain derivative warrant liabilities, respectively.

Adjusted EBITDA gain for the quarter ended June 30, 2020 is $428,000 or $0.11 per diluted share, compared to a loss of $1.6 million or $0.77 per diluted share for the same period in 2019.

Year to Date

Total revenue which is comprised of License and Services revenue for the nine months ended June 30, 2020 increased 13% to $8.2 million, compared to $7.3 million for the same period in 2019. Subscription and perpetual licenses revenue, which is comprised of SaaS licenses, maintenance and hosting revenue, and perpetual license revenue increased 32% to $5.5 million for the nine months ended June 30, 2020, compared to $4.2 million for the same period in 2019. Recurring revenue, which is comprised of SaaS licenses, maintenance and hosting revenue, increased 36% to $5.5 million for the nine months ended June 30, 2020 from $4.0 million for the same period in 2019. Services revenue decreased $394,000 to $2.7 million for the nine months ended June 30, 2020 as compared to $3.1 million for the same period in 2019, respectively.

Gross profit increased 51% or $1.6 million to $4.6 million for the nine months ended June 30, 2020 as compared to $3.0 million for the same period in 2019. Cost of revenue decreased 15% or $617,000 to $3.6 million for the nine months ended June 30, 2020 compared to $4.2 million for the same period in 2019. Gross margin increased to 56% for the nine months ended June 30, 2020, compared to 42% for the same period in 2019, respectively.

Operating expenses decreased 49% or $6.2 million to $6.4 million (including $373,000 restructuring charges) from $12.6 million (including a goodwill impairment charge of $3.7 million and acquisition charges of $1.2 million) for the nine months ended June 30, 2020 and 2019, respectively.

Net loss applicable to common shareholders was $3.2 million for the nine months ended June 30, 2020, compared to $10.4 million for the same period in 2019. Reflected in net results for the nine months ended June 30, 2020 is a non-cash net adjustment to other expense of $1.1 million attributable to the change in fair value of certain derivative warrant liabilities and a deemed dividend expense on the amendment of convertible preferred stock of $2.4 million, respectively.

Adjusted EBITDA loss for the nine months ended June 30, 2020 is $571,000 or $0.17 per diluted share, compared to $4.0 million or $4.72 per diluted share for the same period in 2019.

Conference Call:

Bridgeline Digital, Inc. will hold a conference call today, August 13, 2020 at 4:30 pm Eastern time to discuss these results. The Company's President and Chief Executive Officer, Ari Kahn and Chief Financial Officer, Mark G. Downey will host the call, followed by a question and answer period.

The details of the conference call and replay are as follows:

Please call the conference telephone number 5 – 10 minutes prior to the start time. An operator will register your name and organization.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: non-GAAP adjusted net income/(loss), non-GAAP adjusted earnings/(loss) per diluted share, Adjusted EBITDA and Adjusted EBITDA per diluted share.

Non-GAAP adjusted net income/(loss) and non-GAAP adjusted earnings/(loss) per diluted share are calculated as net income/(loss) or net income/(loss) per share on a diluted basis, excluding, where applicable, amortization of intangible assets, non-cash stock-based compensation, goodwill impairment charges, restructuring and acquisition-related costs, preferred stock dividends and any related tax effects.

Adjusted EBITDA and Adjusted EBITDA per diluted share are defined as earnings before interest, taxes, depreciation and amortization, non-cash stock-based compensation charges, goodwill impairment charges, restructuring and acquisition-related costs, changes in fair value of derivative liabilities and warrant expense, amortization of debt discounts, preferred stock dividends and any related tax effects. Bridgeline uses non-GAAP adjusted net income/(loss) and Adjusted EBITDA as supplemental measures of our performance that are not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”).

Bridgeline’s management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, Bridgeline management presents non-GAAP financial measures in connection with GAAP results. Bridgeline urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which is included in this press release, and not to rely on any single financial measure to evaluate Bridgeline's financial performance.

Our definitions of non-GAAP adjusted net income/(loss) and Adjusted EBITDA may differ from and therefore may not be comparable with similarly titled measures used by other companies, thereby limiting their usefulness as comparative measures. As a result of the limitations that non-GAAP adjusted net income and Adjusted EBITDA have as an analytical tool, investors should not consider them in isolation, or as a substitute for analysis of our operating results as reported under GAAP.

Safe Harbor for Forward-Looking Statements

Statement under the Private Securities Litigation Reform Act of 1995

All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, are based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These statements appear in a number of places in this press release and include statements regarding the intent, belief or current expectations of Bridgeline Digital, Inc. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions, including, but not limited to, the impact of the COVID – 19 pandemic and related public health measures that may affect our financial results; business operations and the business of our customers, suppliers and partners; our ability to retain and upgrade current customers, increasing our recurring revenue, our ability to attract new customers, our revenue growth rate; our history of net loss and our ability to achieve or maintain profitability, our liability for any unauthorized access to our data or our users’ content, including through privacy and data security breaches; any decline in demand for our platform or products; changes in the interoperability of our platform across devices, operating systems, and third party applications that we do no control; competition in our markets; our ability to respond to rapid technological changes, extend our platform, develop new features or products, or gain market acceptance for such new features or products, particularly in light of potential disruptions to the productivity of our employees resulting from remote work; our ability to manage our growth or plan for future growth, and our acquisition of other businesses and the potential of such acquisitions to require significant management attention, disrupt our business, or dilute stockholder value; the volatility of the market price of our common stock, the ability to maintain our listing on the NASDAQ Capital Market, or our ability to maintain an effective system of internal controls as well as other risks described in our filings with the Securities and Exchange Commission. Any of such risks could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. Bridgeline Digital, Inc. assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release, except as required by applicable law.

About Bridgeline Digital

Bridgeline Digital, The Digital Engagement Company, helps customers maximize the performance of their omni-channel digital experience from websites and intranets to online stores and campaigns. Bridgeline’s Unbound platform is a Digital Experience Platform (DXP) that deeply integrates Web Content Management, eCommerce, Marketing Automation, Site Search, Authenticated Portals, Social Media Management, Translation, Locator Pages and Web Analytics to help the goal of assisting marketers to help organizations deliver digital experiences that attract, engage, nurture and convert their customers across all channels and streamline business operations. OrchestraCMS is the only content and digital experience platform built 100% native on Salesforce. OrchestraCMS helps Salesforce create digital experiences for their customers and partners; combining content with business data, processes and applications across multiply channels and device including Salesforce Communities, social media, portals, intranets, websites, applications and services. Celebros Search is a commerce oriented, site search product that provides for Natural Language Processing with artificial intelligence (AI) to present very relevant search results in seven languages. Headquartered in Woburn, MA., Bridgeline customers range from small- and medium-sized organizations to Fortune 1000 companies. To learn more, please visit www.bridgeline.com or call (800) 603-9936.

Contact:

Company Contact

Bridgeline Digital, Inc.

Mark G. Downey

Chief Financial Officer

(631) 203-6820

mdowney@bridgeline.com