The chart below shows how AEYE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AEYE sees a -1.39% change in stock price 10 days leading up to the earnings, and a +5.51% change 10 days following the report. On the earnings day itself, the stock moves by +3.46%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Q4 2024 Revenue Surge: Record revenue in Q4 2024 at $9.7 million, a 24% increase from Q4 2023 and a 9% increase sequentially from Q3 2024.
Gross Margin Improvement: Gross margins improved to 80% in Q4 2024, up from 78% in Q4 2023, indicating enhanced operational efficiency.
Record EBITDA Margins: Adjusted EBITDA margins reached a record 24% in Q4 2024, showcasing significant profitability improvements.
Employee Revenue Growth: Revenue per employee increased to over $330,000 in Q4 2024, reflecting better productivity and efficiency.
Annual Recurring Revenue Growth: Annual recurring revenue (ARR) grew to $36.6 million, a 17% increase year-over-year, indicating strong customer retention and growth.
Customer Acquisition Success: Customer count increased to approximately 127,000, up from 126,000 in Q3 2024 and 17,000 from December 2023, demonstrating effective customer acquisition strategies.
Free Cash Flow Improvement: Free cash flow generated in Q4 2024 was $1.9 million, an improvement of $1 million from Q4 2023, indicating better cash management.
Strong Future Performance Expectations: For 2025, the company expects revenue growth of around 18% and adjusted EBITDA growth of 41%, signaling strong future performance expectations.
EU Market Expansion Strategy: The company is expanding its presence in the EU market in anticipation of the European Accessibility Act, which is expected to drive demand.
Share Repurchase Authorization: The Board of Directors authorized a share repurchase program of up to $12.5 million, reflecting confidence in the company's financial health and future cash flow.
Negative
Earnings Miss Report: AudioEye, Inc. misses on earnings expectations, reporting an EPS of $-0.12 against expectations of $0.18.
Operating Expenses Increase: Operating expenses in Q4 2024 increased by $2.4 million to $9.1 million, primarily due to non-recurring or non-cash items, including additional stock compensation and litigation expenses.
Quarterly Net Loss Comparison: Net loss in Q4 2024 was $1.5 million or $0.12 per share, compared to a net loss of $500,000 or $0.04 per share in the same period last year.
Net Loss Improvement: Despite record revenue, the company still reported a net loss for the full year 2024 of $4.3 million, although this was an improvement from a net loss of $5.9 million in 2023.
Operating Expenses Increase: The increase in operating expenses was also driven by additional investment in selling and marketing, which may indicate challenges in achieving growth without increased spending.
Cash Position Concerns: The company’s cash and cash equivalents at the end of Q4 2024 were $5.7 million, which may raise concerns about liquidity and financial stability moving forward.
AudioEye, Inc. (NASDAQ:AEYE) Q4 2024 Earnings Call Transcript
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