Core Viewpoint - AudioEye (AEYE) has reached a significant support level and shows potential for investors from a technical perspective, with a recent breakthrough of the 20-day moving average indicating a short-term bullish trend [1]. Technical Analysis - The 20-day simple moving average (SMA) is a popular trading tool that reflects a stock's price over a 20-day period, smoothing out short-term price trends and providing trend reversal signals [2]. - A stock price above the 20-day moving average indicates a positive trend, while a price below suggests a downward trend [3]. Performance Metrics - AEYE shares have increased by 6.4% over the past four weeks, and the company holds a Zacks Rank 2 (Buy), indicating potential for continued growth [5]. - Positive earnings estimate revisions support the bullish outlook, with no estimates decreasing in the past two months and one estimate increasing, alongside a rise in the consensus estimate [5]. Investment Consideration - Given the important technical indicators and positive earnings estimate revisions, AEYE should be considered for a watchlist by investors [6].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on AudioEye (AEYE), and highlights the importance of using these recommendations in conjunction with other indicators like the Zacks Rank for making informed investment decisions [1][5][10]. Brokerage Recommendations - AudioEye has an average brokerage recommendation (ABR) of 1.20, indicating a consensus between Strong Buy and Buy, with 80% of recommendations being Strong Buy and 20% being Buy [2][14]. - The article emphasizes that while the ABR suggests a buying opportunity, it should not be the sole basis for investment decisions due to the potential bias of brokerage analysts [5][10]. Zacks Rank Comparison - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, with a strong correlation to near-term stock price movements, making it a more reliable indicator than ABR [8][11]. - The Zacks Consensus Estimate for AudioEye has increased by 10.4% over the past month to $0.71, reflecting analysts' optimism about the company's earnings prospects [13]. Investment Implications - The recent increase in the consensus estimate and the Zacks Rank of 2 (Buy) for AudioEye suggests a positive outlook for the stock, indicating it may be worth considering for investment [14].

Shares of AudioEye (AEYE) have gained 14.3% over the past four weeks to close the last trading session at $12.90, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $22.40 indicates a potential upside of 73.6%.The mean estimate comprises five short-term price targets with a standard deviation of $2.51. While the lowest estimate of $20 indicates a 55% increase from the current price ...

Revenue Growth - Total revenue for the three months ended March 31, 2025, increased by 20% to $9.733 million compared to $8.083 million in the same period of 2024[116] - Annual Recurring Revenue (ARR) as of March 31, 2025, was approximately $37.1 million, representing a 16% year-over-year increase[106] - The customer base grew to approximately 119,000, a 6% increase from 112,000 customers at March 31, 2024[107] - Revenue from the Partner and Marketplace channel grew by 17% to $5.520 million, while revenue from the Enterprise channel increased by 26% to $4.213 million[108] - As of March 31, 2025, Annual Recurring Revenue (ARR) was $37.1 million, reflecting a 16% increase year-over-year, driven by growth in both the Partner and Marketplace channel and the Enterprise channel[134] Profit and Loss - Gross profit for the three months ended March 31, 2025, increased by 22% to $7.738 million, up from $6.322 million in the prior year[121] - The operating loss for the three months ended March 31, 2025, was $940,000, a 49% increase from the operating loss of $631,000 in the prior year[116] - Net loss for the three months ended March 31, 2025, was $1.469 million, representing a 77% increase compared to a net loss of $829,000 in the same period of 2024[116] Expenses - Research and development expenses decreased by 13% to $1.153 million, while total research and development costs decreased by 10% to $1.625 million[126][128] - General and administrative expenses increased by 45% to $3.811 million, primarily due to a $617,000 increase in litigation expenses and transaction costs related to business acquisitions[130] - Selling and marketing expenses increased by 24% to $3.714 million, driven by higher third-party marketing expenses and costs associated with the acquisition of ADA Site Compliance[125] - For the three months ended March 31, 2025, net interest expense increased by 16% year-over-year, totaling $(198,000) compared to $(229,000) in the prior year[131] Cash Flow and Financing - Cash provided by operating activities decreased to $(44,000) for the three months ended March 31, 2025, compared to $203,000 in the prior year, mainly due to increased selling and marketing expenses[140] - Cash used in investing activities increased to $(790,000) primarily due to the acquisition of Criterion 508 Solutions, Inc., for $300,000[141] - Cash provided by financing activities increased to $3.448 million, driven by proceeds from a new $12 million credit facility[142] - Working capital increased by $3.0 million to $3.585 million as of March 31, 2025, primarily due to a new $12 million credit facility[136] - As of March 31, 2025, the company had $8.265 million in cash and cash equivalents[136] Shareholder Actions - The Board of Directors authorized a share repurchase program of up to $12.5 million, effective through January 24, 2027, with no repurchases made to date[137] Contingent Liabilities - As of March 31, 2025, the company had $1.4 million in noncurrent contingent consideration liability related to the acquisition of ADA Site Compliance[138] Debt Management - The company recognized a $300,000 loss on extinguishment of debt in connection with the termination of a previous term loan[132]

AudioEye (AEYE) Q1 2025 Earnings Call April 29, 2025 09:12 PM ET Speaker0 Good afternoon, and welcome to AudioEye's First Quarter twenty twenty five Earnings Conference Call. Joining us for today's call are AudioEye's CEO, Mr. David Marotti and CFO, Ms. Kelly Georgievich. Following their remarks, we will open the call for questions from the company's publishing analysts. I would like to remind everyone that this call will be recorded and made available for replay via a link available in the Investor Relatio ...

AudioEye (AEYE) came out with quarterly earnings of $0.15 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this company would post earnings of $0.18 per share when it actually produced earnings of $0.18, delivering no surprise.Over the last four quarters, the company has surpassed consensus EPS estimates two times.AudioEye, which belongs to the Zacks Internet - ...

Financial Data and Key Metrics Changes - The company achieved record revenue for the thirty-seventh consecutive quarter, with Q1 2025 revenue at $9.7 million, reflecting a 20% year-over-year growth [5][12] - Annual recurring revenue (ARR) increased to $37.1 million, a $500,000 increase from Q4 2024 [12] - Adjusted EBITDA for Q1 2025 was $1.9 million, a $1 million improvement year-over-year [19] - The net loss for Q1 2025 was $1.5 million, compared to a loss of $800,000 in the same period last year [18] Business Line Data and Key Metrics Changes - The partner and marketplace channel grew 17% year-over-year, representing 57% of revenue and around 58% of ARR [14] - The enterprise channel grew 26% year-over-year, contributing 43% of revenue and around 42% of ARR [15] - Customer count increased to approximately 119,000 from 112,000 year-over-year, although there was a sequential decrease due to contract renegotiation [15] Market Data and Key Metrics Changes - The company is experiencing strong deal progression in both the U.S. and European markets, with a notable increase in leads and deal closures expected [7][24] - The European Accessibility Act deadline is approaching, creating significant demand for the company's services [7] Company Strategy and Development Direction - The company is focused on expanding its product features and enhancing its sales engine, particularly in Europe [6][9] - There is an emphasis on building AI capabilities into the company's offerings to improve margins and operational efficiency [29] - The company plans to continue investing in sales and marketing while exploring stock buybacks and potential acquisitions [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment but expressed confidence in revenue and operating leverage improvements in the second half of the year [5][6] - The company expects quarterly revenues and ARR growth to accelerate in Q2 2025, with guidance for Q2 revenue between $9.85 million and $10 million [10] Other Important Information - The company refinanced its existing debt for a $20 million facility, reducing net interest expense from 14% to approximately 7.5% [19] - Adjusted free cash flow is expected to approach $3 million in Q4 2025, representing over 40% year-over-year growth [20] Q&A Session Summary Question: Insights on the pipeline in the U.S. and Europe - Management reported strong deal progression in all stages in both regions, with direct sales momentum increasing in the U.S. [24] Question: Financial flexibility and investment strategy - The company plans to balance investments in sales and marketing with expected ROI, while also considering stock buybacks and acquisitions [27] Question: Implementation of AI in new products - AI is being integrated into various workflows, with internal tests showing improvements in solving common accessibility issues [29] Question: Details on European market opportunities - The company is actively winning deals in Europe and plans to expand its sales force to capture the growing demand [31] Question: Impact of U.S. legal rulings on business - Management indicated that while there are various rulings, the overall demand remains consistent with historical levels [34] Question: Sales and marketing spending details - The increase in sales and marketing expenses is attributed to additional hires and expansion efforts in both the U.S. and EU [40] Question: Confidence in ARR acceleration - Management expressed confidence in ARR growth due to strong performance in direct enterprise sales and reseller channels [49] Question: Near-term margin impact from platform migration - A temporary increase in costs is expected in Q2 due to customer migration to the upgraded platform, with margins expected to normalize in the second half [50]

First Quarter 2025 Financial Results Other Updates Financial Outlook AudioEye expects revenue of between $9.85M and $10.0M for the second quarter of 2025 and between $41.0M and $42.0M for the full year 2025. The Company expects adjusted EBITDA of between $1.9M and $2.0M for the second quarter of 2025 and between $9.0M and $10.0M for the full year 2025. The Company expects adjusted EPS of between $0.15 and $0.16 per share for the second quarter of 2025 and between $0.70 and $0.80 per share for the full year ...

Core Insights - AudioEye, Inc. reported a record revenue of $9.7 million for Q1 2025, marking a 20% increase from $8.1 million in the same period last year [6] - The company achieved an adjusted EBITDA of $1.9 million and an adjusted EPS of $0.15, compared to $0.9 million and $0.08 in the prior year [6] - AudioEye anticipates revenue between $9.85 million and $10.0 million for Q2 2025 and between $41.0 million and $42.0 million for the full year [4] Financial Performance - Total revenue increased by 20% to $9.7 million from $8.1 million year-over-year [6] - Gross profit rose to $7.7 million, representing 80% of total revenue, up from $6.3 million (78% of total revenue) in the prior year [6] - Operating expenses increased by 25% to $8.7 million, primarily due to higher selling and marketing expenses, litigation expenses, and depreciation [6] Cash Flow and Debt - The company expects to generate nearly $1 per share of run-rate free cash flow by Q4 2025, indicating over 40% year-over-year growth [2] - As of March 31, 2025, AudioEye had $8.3 million in cash and cash equivalents, up from $5.7 million at the end of 2024 [6] - AudioEye completed a new $20 million loan facility with Western Alliance Bank, which includes a $12 million term loan used to repay existing debt [6] Customer Metrics - As of March 31, 2025, AudioEye had approximately 119,000 customers, an increase of 7,000 from the previous year [6] - The customer count decreased by 8,000 from December 31, 2024, due to a contract renegotiation with an existing partner [6] Future Outlook - The company is optimistic about its business momentum, with a strong pipeline in both the U.S. and Europe [1] - AudioEye's financial outlook includes expectations for adjusted EBITDA of $1.9 million to $2.0 million for Q2 2025 and $9.0 million to $10.0 million for the full year [4]

AudioEye (AEYE) closed the latest trading day at $11.12, indicating a +1.74% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 1.81%. Elsewhere, the Dow saw an upswing of 1.56%, while the tech-heavy Nasdaq appreciated by 2.06%.The the stock of company has fallen by 0.36% in the past month, leading the Computer and Technology sector's loss of 7.27% and the S&P 500's loss of 6.14%.The investment community will be paying close attention to the earnings perform ...