Good afternoon, ladies and gentlemen, and welcome to Bridgeline Digital Inc. Second Quarter 2020 Earnings Call. [Operator Instructions] As a reminder, this conference may be recorded. I would now like to turn the conference over to your host, Mr. Mark Downey, Chief Financial Officer for Bridgeline Digital. Sir, please go ahead.

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 2020 second 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 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. Bridgeline continues to see growth in subscription and license revenue, as well as improvement to our bottom line. Revenue increased 20% over this quarter last year, and license and subscription recurring revenue is up 42%. Customer renewals for licenses and subscriptions are the foundation for the future growth and remain strong today. An important focus for the business is its bottom line, which has also improved. Our strategic goal for this year remains on track and specifically our profitability expectations have not changed. Net income is strong, but includes several non-cash adjustments, adjusted EBITDA is a better metric for profitability, which we expect to be positive in the second half of this year. My heart goes out to all those hurt by the COVID-19 pandemic, which is first and foremost a health issue, but also an economic one. The pandemic will create predictable and several unpredictable challenges as well as opportunities. One challenge and opportunity is that both commerce and community will become even more enabled through the online world. This is Bridgeline's expertise, and we're here to help our customers and other businesses get the most out of their online stores and employee portals. We can expect elongated sales cycles and delays and team coordination that impact implementation timelines as businesses adjust. I expect Bridgeline to come out of this crisis even stronger than we were when we entered it, with a more healthy bottom line, deep strategic value demonstrated to our customers, and an efficient sales organization. I'll take a few minutes to share the impact we have seen due to COVID-19 outbreak, the actions we've taken and how it relates to our longer-term strategic plans. Bridgeline's operations have supported remote work for years, which is common for software companies. Our…

Thanks Ari. Today, I will review our financial results for the second quarter of fiscal 2020 ended March 31, 2020. In March, the World Health Organization declared the outbreak of the Novel Coronavirus Disease, COVID-19 as a pandemic. And while we anticipated our operations in all locations to be affected, we have a robust business continuity plan even as the virus continues to proliferate. We have adjusted certain aspects of our operations to protect employees and customers, while still meeting customers' needs for mission-critical technology. We will continue to monitor the situation closely and as possible that we may implement further measures. Total revenues for the quarter ended March 31, 2020, increased 20% to $2.7 million as compared to $2.2 million for the same period last year. The following are the various components of revenue. Recurring revenue, which is comprised of SaaS licenses, maintenance, and hosting revenue increased 42% to $1.8 million for the quarter ended March 31, 2020, from $1.3 million for the same period last year. As mentioned in prior earnings calls, deferred revenue accounting rules associated from our 2019 acquisitions dictated that full contracts are not recognized upon acquisition. But only a portion of those revenues associated with OrchestraCMS has been reflected. We are now able as of March 1, the first annual license payment after acquisition to recognize the full 100% value of these acquired contracts. Subscriptions and license revenue which is comprised of recurring revenue and perpetual license revenue, increased 63% for the quarter ended March 31, 2020 to $1.5 million from $1 million for the same period last year. Services revenue was consistent at $900,000, for the quarters ended March 31, 2020 and 2019 respectively. As a percentage of total revenue, services revenue decreased 9% to 33% of total revenue for the quarter ended…

[Operator Instructions] Your first question comes from the line of [David Hoff]. Your line is open.

I'm a Private Investor. And I was - just got into your call a few minutes late, but I see that the market has reacted very favorably to news, so I'm anticipating that the positive earnings and as a shareholder, one of the things about your company that I'm very - unique and interesting is that, there are 2 million plus shares outstanding, is that correct?

In terms of total shares outstanding, it sounds about right.

Yes. 2,800,060. And I guess that was due to a reverse split that took place in the past. So I'm wondering that's the extremely low amount of shares, for the average company to have. Would your company anticipate the possibility of having a split at a certain price if the stock price was to go up to a certain point, to increase the number of shares?

Well, I can see something like that happening or as we grow in the stock and improve significantly in our market, there are acquisition opportunities, whether it could be a chance to increase the share price in the context of the number of shares, in the context of the financing and acquisition, but neither of those are really something that we expect happening in the immediate future.

[Operator Instructions] I'm showing no further questions at this time. I would like to turn the conference back to Mr. Ari Kahn, President and CEO. Sir, please go ahead.

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. Thank you for joining us today. We look forward to speaking again on our Q3 fiscal 2020 conference call this summer. Thank you.

Ladies and gentlemen, this concludes today's conference call. Thank you all for joining. You may now disconnect.