Shares of Bridgeline Digital (BLIN) soared 56% Friday to close the session at their 52-week high of $8.97 following news of an increase in its cash balance on its exercise of warrants on hand. However, will the stock continue to gain based on increasing demand for its Celebros solution? Let’s find out.Digital engagement company Bridgeline Digital, Inc. (BLIN) is known for its award-winning Bridgeline Unbound experience management platform, which was formerly known as iAPPS. The stock of the Burlington, Mass. company has rallied 246.3% over the past month to close Friday’s trading session at its 52-week high of $8.97. This 56% rally in the last trading session can be attributed primarily to investors’ optimism surrounding the company’s increase in cash balance from its warrants. BLIN announced on July 2 that it had received more than $2.5 million in cash on its exercise of warrants, which brought its cash balance to roughly $6 million.
The company’s acquisition of WooRank and HawkSearch in 2021 also contributed to its growth, with WooRank driving traffic to websites by helping improve search engine optimization, and HawkSearch growing online revenues for ecommerce websites by increasing conversion and optimizing the search experience for visitors.
However, BLIN incurred losses in its last-reported quarter (ended March 31, 2021). Moreover, it priced a registered direct offering for gross proceeds of $5.1 million, which is expected to lead to share dilution. So, BLIN’s near-term prospects seem uncertain.