Ladies and gentlemen, thank you for standing by. And welcome to the Bridgeline Digital Incorporated Fourth Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. [Operator Instructions] I would now like to hand the conference to your speaker today, Mark Downey, Chief Financial Officer. Please go ahead, sir.

Thank you and good afternoon, everyone. My name is Mark Downey, and I am the Chief Financial Officer for Bridgeline Digital. I am pleased to welcome you to our fiscal 2019 fourth quarter conference call. Before we begin, I would like to remind listeners that during this conference call, comments that we make regarding Bridgeline Digital that are not historical facts are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. These statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. The internal projections and beliefs upon which we base our expectations today may change over time, and we undertake no obligation to inform you if they do. Results that we report today should not be considered as an indication of future performance. Changes in economic, business, competitive, technological, regulatory, and other factors could cause Bridgeline’s actual results to differ materially from those expressed or implied by the projections or forward-looking statements made today. For more detailed information about these factors and other risks that may impact our business, please review the reports and documents filed from time to time by Bridgeline Digital with the Securities and Exchange Commission. Also, please note that on the call today we will discuss some non-GAAP financial measures when discussing the Company’s financial performance. We provide a reconciliation of these non-GAAP measures to our GAAP financials in our earnings release. You can obtain a copy of our earnings release by visiting our website. I would now like to turn the call over to Ari Kahn, our President and CEO. Ari?

Thank you, Mark, and good afternoon, everyone. In 2019, Bridgeline nearly tripled its customer base, added two product lines, and is now driving quarter-over-quarter growth in SaaS revenue which paves our path to generating profits in 2020. Our SaaS revenue annual run rate nearly doubled from $3 million to $5.5 million, and we’ve already signed more than $1 million in additional SaaS revenue to kick off 2020 and continue our trend of quarterly growth in SaaS revenue. Customer satisfaction in license renewal has been a core focus in 2019 and will continue to be a primary objective going forward. Our SaaS renewal rates were strong this year, and many of our customers even signed multiyear renewals. The increased renewal rate brought our contractual revenue backlog to approximately $11 million. And when renewals are projected, the three-year backlog has more than doubled from $13 million at the beginning of fiscal 2019 to $28 million today. We initiated a Customer Conference program this year, and conferences will continue to be a major initiative in 2020. Our first conference was held in New York City last October and had excellent feedback from attendees. Our next conference will be in Austin, Texas in March. We’re also holding smaller regional conferences, starting in Los Angeles next month. Conferences allow our customers, prospective customers and partners to understand our latest products and features, learn new ways to use our software and is a great way to gather direct feedback from customers to drive innovation. Our New York conference resulted in significant new sales and we expect future conferences to help drive growth. Bridgeline’s new product line now includes Web Content Management, Commerce Portal, Site Search, Translation, Social Media Management and Marketing Automation. Bridgeline provides unique capabilities for franchises as well as multilingual and currency enterprises, including…

Thanks, Ari. Today, I will review our financial results for the fourth quarter of fiscal 2019 as well as the fiscal year ended September 30, 2019. Total revenue for the quarter ended September 30, 2019 was $2.7 million, compared to $2.8 million for the same period last year. The following are the various components of revenue. Recurring revenue, which consists of SaaS licenses, annual maintenance on perpetual licenses and hosting, increased 16% to $1.7 million for the quarter ended September 30, 2019, from $1.4 million for the same period in 2018. As mentioned in prior earnings calls, deferred revenue accounting rules dictate a full contract is not recognized upon acquisition and only a portion of those revenues associated with OrchestraCMS can be reflected. Upon the first annual license payment of these acquired contracts, we will be able to recognize the full value of the contract over the term of the license. SaaS revenue which represents 81% of the September 30, 2019 quarterly recurring revenue, increased 20% to $1.4 million, from $1.1 million or 78% of the September 30th quarterly recurring revenue. Hosting revenue increased 20% to $247,000 or 9% of total revenue for the quarter ended September 30, 2019, from $206,000 or 7% of total revenue for the same period last year. Services revenue was $1 million, or 38% of total revenue for the quarter ended September 30, 2019, compared to $1.4 million or 48% of total revenue for the same period last year. Bridgeline’s focus is on increasing license revenue with some of our newer products, such as the Celebros product line, which require little or no services to implement. This focus along with the Company’s new partnerships and customers’ ability for self service are expected to further increase our license to service ratio over time. Total revenues from…

Thank you. [Operator Instructions] And our first question comes from William Urschel with Accord Network Partners. Your line is now open.

Thank you, gentlemen. Congratulations, good numbers.

Hello, William. Thank you.

Hello. In your last call, you suggested that the Company could reach profitability by the first quarter or calendar quarter 2020. Are you still on track for that?

No. We’re going to reach profitability. We’re expecting it to be in the second half of the year, of our fiscal year for 2020. We’re generating cash right now. And that’s the schedule.

All right. Thank you very much.

Thank you. [Operator Instructions] I’m not showing any further questions at this time. I would now like to turn the call back over to Ari Kahn for closing remarks.

Thank you. We appreciate the support and patience of our shareholders. And it’s our goal to continue building a scalable business model which in turn will build shareholder value. Thanks for joining us today, and we look forward to speaking again on our Q1 2020 conference call. Have a great weekend.

Ladies and gentlemen, this concludes today’s conference call. Thank you for participating. You may now disconnect.