AudioEye Inc (AEYE) Q1 2024 Earnings Call Transcript Highlights: Record Revenues and Strategic ...

GuruFocus Research
3 min read
0
In this article:

  • Revenue: Q1 2024 revenue reached $8.1 million, marking a 33rd consecutive quarter of record revenue.

  • Annual Recurring Revenue (ARR): Ended Q1 2024 at $32 million, up $800,000 from Q4 2023.

  • Gross Profit: $6.3 million in Q1 2024, maintaining a gross margin of 78%.

  • Operating Expenses: Decreased by 14% to $7 million in Q1 2024.

  • Net Loss: Reduced to $800,000 in Q1 2024 from $2 million in Q1 2023.

  • Adjusted EBITDA: Improved to $920,000 in Q1 2024 from a lower figure in Q1 2023.

  • Free Cash Flow: Positive $430,000 in Q1 2024.

  • Customer Count: Grew to approximately 112,000 by March 31, 2024, from 95,000 a year earlier.

  • Share Repurchase: 548,000 shares bought back at an average price of $5.73 as of April 23, 2024.

  • 2024 Revenue Guidance: Increased to between $34.3 million and $34.7 million.

  • 2024 Adjusted EBITDA Guidance: Raised by approximately $1 million to between $4.5 million and $5.5 million.

Release Date: April 23, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q & A Highlights

Q: Can you talk about what sorts of things you're doing to prep for the European and DOJ opportunities? A: David Moradi, CEO of AudioEye, highlighted the company's readiness for upcoming regulatory changes, emphasizing their strong position with enterprise and reseller channels, and a full product suite that caters to both small businesses and large enterprises. He anticipates a significant uptick in demand by 2025 due to new regulations.

Q: Can you walk through some of the reseller relationships that are key and how are those typically structured? A: David Moradi explained that AudioEye has exclusive relationships with key resellers serving about 80,000 websites, mainly in the government sector. He sees a massive opportunity for growth, expecting near full penetration with these partners in the next two to three years.

Q: Can you give any specificity as to specific partners that drove the new partners or new relationships with those partners? A: Kelly Georgevich, CFO of AudioEye, mentioned growth in both existing and new reseller partnerships. She highlighted the continuous emergence of new resellers each quarter, contributing to the company's growth.

Q: Can you talk about the key underlying factor that's driving the upside in terms of the adjusted EBITDA margin? A: Kelly Georgevich attributed the improved EBITDA margins to the company's ability to scale revenue efficiently without significantly increasing expenses. She expects this trend to continue, maintaining high EBITDA margins.

Q: Any additional investments needed in your direct channel to take full advantage of the growing demand opportunity? A: David Moradi indicated that no immediate additional investments are necessary for the direct channel. The company is currently well-balanced between growth and profitability, with plans still being formulated.

Q: How are you thinking about investments in the organic business versus potentially looking at incremental M&A? A: David Moradi stated that while the company does not comment on potential M&A activities, they are focused on maintaining sustainable operating margins and may consider more investments in sales, marketing, and R&D if conditions are favorable.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

Advertisement

Recommended Stories

  • Palantir Slides After Annual Sales Forecast Fails to Impress

    (Bloomberg) -- Palantir Technologies Inc. shares slid in extended trading on Monday as the market appeared unimpressed by the company’s outlook for annual sales after the stock has tripled in the past year.Most Read from BloombergIsrael Says a Cease-Fire Plan Backed by Hamas Falls Far ShortAt $2 Million Per Minute, Treasuries Mint Cash Like Never BeforeJack Dorsey Leaves Bluesky Board, Calls X ‘Freedom Technology’Ex-Trump Controller Says Cohen Repaid From Personal AccountS&P 500 Extends Gains in

  • The Federal Reserve Just Indicated Social Security Could Get a Bigger 2025 Cost-of-Living Adjustment (COLA) Than Expected

    A bigger COLA may sound great, but it has some big drawbacks for retirees too.

  • Palantir raises 2024 forecast on robust AI demand

    Data analytics firm Palantir Technologies raised its annual revenue and profit forecast and beat first-quarter sales estimates on Monday, riding on strong demand for its services that help businesses deploy artificial intelligence applications. The company has emerged as a winner of the generative AI boom thanks to its artificial intelligence platform, which is used to test and debug code and help evaluate AI-related scenarios, among other uses. "AIP is driving a huge part of both our new customers and growth within existing customers and its having a huge impact on our business," chief revenue officer Ryan Taylor told Reuters.

  • Palantir Earnings Crush Estimates. The Stock Still Slips Following Big Run.

    Palantir followed up its “bombastic” December quarter with even better results for the March quarter as the data analytics software company continued to gain traction with its artificial intelligence tools in particular with U.S. commercial customers. Palantir shares, which rallied 8.1% in Monday’s regular session, was off about 4 % in after-hours trading. For the March quarter, Palantir posted revenue of $634 million, up 21% from a year ago, and ahead of both the company’s guidance range of $612 million to $616 million and Wall Street’s consensus of $615 million as tracked by FactSet.

  • GE Stock Soars 110% To A 15-Year High — Is GE Aerospace A Buy?

    General Electric officially split into GE Aerospace and GE Vernova in April. GE Aerospace now trades at its best level since the 2008 meltdown.

  • Seeking at Least 8% Dividend Yield? Analysts Offer 2 Dividend Stocks to Buy

    The last inflation report, which came in worse than expected, had investors worried about the Federal Reserve’s plans for interest rates this year. The central bank held rates steady in its most recent decision, cooling fears that a hike is in the offing. When combined with moderate gains in the Q1 earnings reports, it makes sense that we saw stocks rebounding as confidence in the market was restored. However, according to JPMorgan’s chief market strategist Marko Kolanovic, we’re not out of the

  • Grant Cardone Slams Biden's Tax Proposal As 'Another Attempt To Destroy Middle-Class America'

    Real estate mogul Grant Cardone took aim at the Biden administration's proposed 25% tax on unrealized gains on taxpayers with wealth greater than $100 million, asking his followers on X to imagine the value of their homes or stocks increasing $400,000. "YOU would owe $25,000 without selling," Cardone posted. "Another attempt to destroy middle-class America." The Budget of the United States Government for fiscal 2025 proposes a new minimum tax on income and unrealized capital gains — for the smal

  • Warren Buffett Bought $9.2 Billion of This Stock Last Year, and He Could Buy Even More in 2024

    One of Buffett's favorite stocks of all time topped his list of buys in 2023.

  • 3 Dividend-Paying Energy Stocks to Buy Hand Over Fist in May

    With energy prices on the rise, here are three dividend stocks to consider in the energy sector, from high risk to low risk.

  • Forget Nvidia: Smart Money Is Selling It and Buying These 2 Roaring Artificial Intelligence (AI) Stocks Instead

    Nvidia's run at the top of the AI trend may be coming to an end, and smart money is pouring into these 2 AI winners.