AudioEye, Inc. (AEYE) Q1 2025 Earnings Call Transcript
Revenue $9.7 million, 20% year-over-year growth due to strong product features and increased demand in both U.S. and EU markets.
Annual Recurring Revenue (ARR) $37.1 million, a $500,000 increase from Q4 2024, driven by a growing pipeline and customer retention.
Gross Profit $7.7 million (80% of revenue), up from $6.3 million (78% of revenue) year-over-year, attributed to increased revenue.
Operating Expenses $8.7 million, a 25% increase year-over-year, primarily due to litigation expenses and investments in sales and marketing.
Net Loss $1.5 million or $0.12 per share, compared to $800,000 or $0.07 per share year-over-year, due to increased litigation expenses and higher depreciation.
Adjusted EBITDA $1.9 million or $0.15 per share, a $1 million improvement year-over-year, reflecting strong revenue growth and operational efficiencies.
Cash Position $8.3 million as of March 31, 2025, strengthened by refinancing existing debt, reducing interest rates from 14% to approximately 7.5%.
Adjusted Free Cash Flow $1.4 million in Q1 2025, expected to approach $3 million in Q4 2025, indicating over 40% year-over-year growth.
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AudioEye Expects Record Revenue for Q4 2025
- Record Revenue Streak: AudioEye anticipates reporting its fortieth consecutive quarter of record revenue in Q4 2025, primarily driven by strong performance in the European Union, which will further solidify its leadership in the digital accessibility sector.
- ARR Growth: The company expects significant growth in annual recurring revenue (ARR), reflecting ongoing expansion in its customer base and market demand, enhancing the predictability of its future financial performance.
- Management Presentation: AudioEye's management will present at the 28th Annual Needham Growth Conference, where they are expected to share more insights on company strategy and future outlook, further boosting investor confidence.
- Technological Innovation Edge: With its leading AI automation technology and 24/7 accessibility monitoring services, AudioEye has provided solutions to over 131,000 customers, which not only enhances client compliance capabilities but also creates a sustainable revenue stream for the company.
AudioEye Secures 2025 SaaS Award for Enhancing Compliance and Accessibility Innovations
Recognition in SaaS Awards: AudioEye, Inc. has been awarded in the 2025 SaaS Awards for its innovative use of AI technology to enhance digital accessibility and compliance, standing out among other leading SaaS companies.
Impact on Compliance and Risk: The company's platform provides significant legal protection and compliance support, helping organizations navigate complex regulations like the European Accessibility Act and the Americans with Disabilities Act.
