Good day, and thank you for standing by. Welcome to the Bridgeline Digital, Inc. Q3 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one one on your telephone. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Tom Windhausen, Chief Financial Officer. Please go ahead.
Thank you and good afternoon, everyone. Thank you for joining us today. My name is Tom Windhausen, and I'm Bridgeline's Chief Financial Officer. I am pleased to welcome you to our fiscal 2022 Q3 conference call. On the call this afternoon is Ari Kahn, Bridgeline's President and CEO, who will begin with a discussion of our business highlights. I will then update you on our financial results for the quarter. We will conclude by taking questions.
Before we begin, I'd 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 within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, 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 expressly disclaim and assume no obligation to inform you if they do. Results we report today should not be considered as an indication of future performance.
Changes in economic, business, competitive, technological, regulatory, and other factors, such as the impact of public health measures, 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 this afternoon, we will discuss some non-GAAP financial measures when commenting on the company's financial performance. We provide a reconciliation of our GAAP financials to these non-GAAP measures in our earnings release. You can obtain a copy of the earnings release by visiting our website. I will now turn the call over to Ari Kahn, our President and CEO. Ari?
Thank you, Tom, and good afternoon, everyone. Bridgeline Digital had 22% revenue growth this quarter compared to the same quarter last year, totaling $4.2 million. Most of our growth is in subscription and license, which increased by 29% to $3.4 million. Subscription and license is now over 80% of our total revenue and drove gross profit to increase by 30% to $2.9 million with a 5-point gain in gross margin percentage. We booked $690,000 in new license ARR from 23 sales this quarter. Our cross-sale strategy drove 11 license sales to existing customers on top of 12 newly won customers. Site Search is our strongest growth area with 19% CAGR organic growth.
Our cash and projected operations position us well to continue our investments in innovation and sales and marketing without additional capital for operations. We ended the quarter with $3.9 million in cash after paying $500,000 in financing activities from the WooRank and acquisitions. We also negotiated a $600,000 discount to the earn-out and working capital adjustment on the HawkSearch acquisition in consideration for a six-month early payment. Our eCommerce 360 strategy fuels more efficient growth, not only by winning new customers with multiple entry points to our product suite, but of new products to existing customers from our growing product suite. Bridgeline saw growth in the finance, automotive, retail, and manufacturing industry. Belmetrics is an auto parts dealer who chose our HawkSearch product to power their BigCommerce online store.
This is the latest in a series of new automotive customers, including 1-800 Radiator & A/C and [D-Buck]. Procon Pump, a B2B pump manufacturer, selected HawkSearch to power search, recommendations, and search information management on their online store. Our AI-powered search information management product increases B2B sales for companies with products that require unit measurement conversion. For example, with search information management, your customer can search for a part using metric sizes when the underlying catalog is an English measurement. This is a straightforward example, but the same technology powered searches for colors and other descriptors where more subjective conversions are needed. A new European customer is PharmaDirect, who selected Celebros to grow online revenue with superior site search on their B2C website, where Celebros' natural language processing better understands customer intent to provide more relevant search products for customers using imprecise search terms.
In addition to new customer wins, we also had over 100 renewed customers this quarter, including Bristol Myers Squibb, 7-Eleven, Shell, Oreo and, Triumph Motorcycles. Many of our customers renewed with price adjustments for inflation. Platform partners like Adobe, BigCommerce, Kentico, Optimizely, Sitefinity, and Shopify are an important part of our growth. This quarter, we released a new Magento connector for HawkSearch that reduces implementation time and cost for our customers while providing a more seamless look and feel to their product catalog management in Adobe Magento's administrative interface. Sitefinity and BigCommerce continue to drive new business, often with sophisticated sales being powered by both platforms simultaneously, as is the case with Sage Publishing, a new customer of ours. Our Kentico partnership drove the win of a large financial institution selecting HawkSearch to help their 1 million customers more easily find content on their website.
Bridgeline's TruePresence product suite for the franchise industry continues to bring new opportunities, including a recent win using our DataBravo product for individual location analytics and personalized SEO recommendations. Bridgeline has added over $100,000 in ARR this fiscal year to date for the TruePresence product suite alone. It's winning customers ahead of schedule, and the location analytics solution is already receiving outstanding feedback. Last year, we made two acquisitions, and we will continue to evaluate strategic opportunities. This is a challenging environment for public stocks, and we only consider acquisitions that can be financed accretively. We believe that the valuations of our targets will continue to drop and intend to be patient as we evaluate opportunities.
The companies we consider for acquisitions need to have a customer base to whom we can cross-sell our products, in addition to acquisitions bringing products that can be sold to our customer base as well as attract new customers. We look at companies globally with an emphasis in North America and Europe, and again, only consider opportunities with terms that are accretive compared to our enterprise value to revenue ratio. At this time, I'd like to turn the call back over to our Chief Financial Officer, Tom Windhausen. Tom?
Thanks, Ari. I'm thrilled to share with you all this afternoon our positive financial results for the Q3 of fiscal 2022, which ended 30 June 2022. Total revenue for the quarter ended 30 June 2022 was $4.2 million, an increase of 22% as compared to $3.4 million in the prior year period. Subscription and license revenue increased 29% for the quarter ended 30 June 2022, to $3.4 million, from $2.6 million in the prior year period. As a percentage of total revenue, subscription and licenses revenue increased to 81% of total revenue for the quarter ended 30 June 2022, as compared to 76% in the prior year period. Subscription and license revenue is comprised of SaaS licenses, maintenance and hosting revenue, and perpetual license revenue.
This increase in subscription license revenue as a percentage of total revenue was driven by the prior acquisition of WooRank and HawkSearch, which have a high percentage of subscription revenue. Services revenue was $0.8 million for the quarter ended 30 June 2022, as compared to the same $0.8 million in the prior year period. As a percentage of total revenue, services revenue accounted for 19% of total revenue for the quarter ended 30 June 2022. Cost of revenue increased 7% or $0.1 million to $1.3 million for the quarter ended 30 June 2022, compared to $1.2 million in the prior year period.
As a result, gross profit increased 30% or $0.7 million to $2.9 million for the quarter ended June, as compared to $2.3 million in the prior year period. Our overall gross profit margin increased to 70% for the quarter ended 30 June 2022, compared to 65% in the prior year period. Our subscription license gross margin was 75% for June 2022 as compared to 72% in the prior year period, and our services gross margins were 46% for the three months ending June 2022, compared to 45% for the same period in 2021. Our operating expenses increased to $3.3 million for the quarter ended 30 June 2022, from $2.9 million in the prior year period. Moving to other income and expense.
For the quarter ended 30 June 2022, the change in fair value of our liability-classified warrants resulted in non-cash income of $0.8 million, as compared to a $4.2 million loss, non-cash loss for the same period in 2021. The bottom line, our net income was positive $0.4 million for the quarter ended 30 June 2022, as compared to a net loss of $3.6 million in the prior year period. The increase in net income includes the impact of fair value adjustments, such as the warrants I just mentioned. Moving on to EBITDA. Our adjusted EBITDA for the quarter ended 30 June 2022, was $0.1 million compared to $0.3 million in the prior year period.
Looking at our balance sheet on 30 June 2022, we had cash of $3.9 million and accounts receivable of $1.8 million. Our total assets were $29 million, and our total liabilities were $9 million. Bridgeline looks forward to continued success in the final quarter of fiscal 2022 and beyond, as we continue to focus on revenue growth, product innovation, expanding our customer success, and delivering shareholder value. Thank you for joining us on the call today. At this time, we would like to open the call up to questions and answers. Moderator?
As a reminder, to ask a question, you will need to press star one one on your telephone. Please stand by while we compile the Q&A roster. Our first question comes from Howard Halpern with Taglich Brothers. Your line is now open.
Hi, guys. Congratulations.
Thank you, Howard. How are you doing?
Okay. Excited to, you know, TruePresence, got a nice customer win. What kind of deployment timeline are we looking for with that new customer?
This is great. A big focus for us internally here is to reduce deployment time and the cost of initial implementation. For this new customer with TruePresence, they're able to use the product right out of the box with zero services. It's 100% pure SaaS.
Okay. I guess with that customer win, do you have a little bit of a pipeline developing for other potential customer wins for that product?
We do. Specifically in the TruePresence brand, all of our products exist with tuning specifically for the for the franchise industry. DataBravo was the product, underlying product that was sold with TruePresence. What DataBravo allows you to do, and we've got a great pipeline for this, is that when you are a franchise and you have perhaps several thousand franchisees, each with their own website. Look, the challenge that you will have is that if one of those franchisees neglects their website and it has poor search engine optimization, that weakness will bubble up throughout the rest of your site and pull down all of their rankings. With DataBravo, you can evaluate your entire network of franchisee websites, identify any weaknesses, and receive recommendations as to exactly how to address those weaknesses to fix that site.
This is a need that's in very high demand. We've got a great pipeline of franchisees, and nobody else is doing this.
Okay. Overall, how are customer acquisition costs trending, for you?
Our CAC is improving every day, and it's in the 2.9 range of lifetime value to CAC right now. We think that's going to get even better. Part of the improvement is that we have now a broader product suite where our own existing customers have opportunities to buy additional products from us. We're gonna keep expanding that suite. DataBravo, for example, is a launch that we did last year using some of the technology that we acquired with WooRank, and that'll further reduce CAC going forward.
Talking about WooRank, are you still seeing, you know, compared to maybe a couple quarters back, the same kind of traffic rank that generates customer leads?
It is consistent with what it's been for the past couple of quarters. We're expanding our strategy with WooRank, where we are creating partnerships with platforms, and we'll be releasing Shopify specifically this quarter to further distribute WooRank. Then all of those WooRank customers will then have a conversation with to introduce our other products as well through our dashboard.
Okay. I guess, one last one. I mean, you talked about, you know, in the press release, different, partnerships. What is that gonna mean for you a year, two, or three down the road?
Well, it's more right now that our new customer wins have a partner to them compared with. It very much changes the structure of our own sales team. We have every single direct salesperson now owns one or more partnership relationships and manages that. The way that we manage and structure our own sales team is different. Our CAC goes down because now we're coming in with a partner and have lower marketing costs and greater credibility out of the gate. We expect this to be transformative for our sales process, and in fact, it already is.
Okay. Well, thanks, and keep up the great work.
Thank you, Howard.
At this time, I am not showing any questions. I would now like to turn the conference back to management for closing remarks.
Thank you for joining us today. We appreciate the continued support of all of our customers, partners, and shareholders. We're excited about our business and ongoing growth prospects. We look forward to speaking with you again on our year-end fiscal 2022 conference call in December. Thank you, and stay healthy.
This concludes today's conference call. Thank you for participating. You may now disconnect.