Bridgeline Digital, Inc. (BLIN) stock prices were up by a massive 26.84% as of the market closing on June 30th, 2021, bringing the price per share up to USD$4.30 at the end of the trading day. Subsequent pre-market fluctuations have seen the stock rise by 25.58%, bringing it up to USD$5.40.
Unbound CMS Contract
June 22nd 2021 saw the company announced the signing of a long-term contract of Unbound CMS with one of the largest haircutting franchises in the U.S. With more than 1800 locations across the U.S., the customer has been a long term client with Unbound CMS since 2021, when their corporate site was designed and built by the Unbound Team. Over the years, Unbound integrated store locators and developed franchisee local sites, with each Unbound-powered franchise site having its own unique URL with webpages for each location.
Unbound Merits
The company made moves recently to consolidate the network of franchises under the main domain, hoping to streamline the overall digital experience, while also reducing costs over the long term. After market research into evaluating CMS options, Unbound was recognized as the most appropriate solution for the project. As per a key part of the closing of this franchise-specific renewal deal, Unbound will facilitate the provision of a powerful Local Pages solution. The contract to develop and implement the new digital strategy is set to last 36 months.
Q2 2021 Financial Reports
Total revenue for the second quarter of fiscal 2021, ended March 31st 2021, was reported at USD$2.9 million, up from the USD$2.7 million reported for the prior year period. With total revenue consisting of Licenses and Services revenue, the former exhibited 8% growth, while the latter grew by 2%. Gross profits were also up, by 16% up to USD$1.8 million for the quarter ended March 31st 2021, comparable to the USD$1.6 million reported in the prior year period.
Meme Stock Phenomenon
Despite these promising developments over the quarter, there has been no news coverage or change in the fundamentals of BLIN to justify the meteoric rise it has seen lately. It seems very likely that the company is fortuitously finding itself to be the next target of the meme stock phenomenon that has been taking over stock markets as of late. Driven by retail investors who use the social media platform Reddit, this phenomenon sees underperforming stocks with high short interests get pumped by a coordinated short squeeze.
Future Outlook for BLIN
Despite being rife with volatility on the basis of there not being sound reasons to invest in a company based on its merit, the activity affords BLIN extensive opportunities as it sees its equity value skyrocket. Investors are hopeful that the company will make moves to maintain the momentum generated by the Reddit-driven investor community.
