Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about AudioEye (AEYE) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.AudioEye currently has an average brokerag ...

TUCSON, Ariz., April 9, 2025 /PRNewswire/ -- AudioEye, Inc. (Nasdaq: AEYE) ("AudioEye" or the "Company"), the industry-leading digital accessibility company, will hold a conference call on Tuesday, April 29, 2025 at 4:30 p.m. Eastern Time to discuss its financial results for the first quarter ended March 31, 2025. Financial results will be issued in a press release prior to the call. AudioEye management will host the conference call, followed by a question and answer period. Date: Tuesday, April 29, 2025Tim ...

Facility materially reduces interest rate with added flexibility TUCSON, Ariz., April 1, 2025 /PRNewswire/ -- AudioEye, Inc. (Nasdaq: AEYE) ("AudioEye" or the "Company"), the industry-leading digital accessibility company, today announced a new $20 million loan facility with Bridge Bank, a division of Western Alliance Bank, Member FDIC (NYSE: WAL), a financial institution with over $80 billion of assets. The new facility comprises a $12 million term loan, a $3 million revolver, and a $5 million delayed draw ...

Core Viewpoint - AudioEye's stock performance has lagged behind major indices, with a significant monthly decline, while upcoming earnings are projected to show substantial growth in both EPS and revenue [1][2][3]. Company Performance - AudioEye's stock closed at $11.49, down 1.79% from the previous day, underperforming the S&P 500's loss of 0.22% [1]. - Over the last month, AudioEye's shares have decreased by 28.79%, compared to a 12% loss in the Computer and Technology sector and a 7.48% loss in the S&P 500 [1]. - The upcoming earnings per share (EPS) are projected at $0.15, reflecting an 87.5% increase year-over-year, with revenue expected to reach $9.7 million, a 20.05% increase [2]. Earnings Estimates - For the full year, earnings are projected at $0.70 per share and revenue at $41.64 million, indicating increases of 27.27% and 18.29% respectively from the previous year [3]. - Recent changes in analyst estimates suggest a positive outlook for AudioEye's business and profitability [3]. Valuation Metrics - AudioEye has a Forward P/E ratio of 16.71, which is below the industry average of 27.92, indicating it is trading at a discount [6]. - The company has a PEG ratio of 0.67, significantly lower than the industry average PEG ratio of 2.06, suggesting favorable growth expectations relative to its valuation [7]. Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 84, placing it in the top 34% of over 250 industries [8].

Financial Data and Key Metrics Changes - In Q4 2024, gross margins improved to 80% and adjusted EBITDA margins reached a record 24% [6] - Revenue per employee increased to over $330,000 in Q4 2024 [6] - Q4 2024 revenue was $9,700,000, a 24% increase year-over-year and a 9% sequential increase [13] - For the full year 2024, revenue grew 12% to $35,200,000 from $31,300,000 [13] - Net loss in Q4 2024 was $1,500,000 or $0.12 per share, compared to a net loss of $500,000 or $0.04 per share in the same period last year [18] - Full year 2024 net loss was $4,300,000 or $0.36 per share, an improvement from a net loss of $5,900,000 or $0.50 per share in 2023 [18][19] Business Line Data and Key Metrics Changes - The partner and marketplace channel grew 14% year-over-year in Q4 2024, representing approximately 58% of ARR [13][14] - The enterprise channel contributed 42% of ARR in Q4 2024, with a total ARR of $36,600,000, a 17% increase year-over-year [14][15] - Customer count increased to approximately 127,000 by the end of Q4 2024, up from 126,000 in Q3 2024 and an increase of about 17,000 from the previous year [15] Market Data and Key Metrics Changes - The company is preparing for the European Accessibility Act (EAA) set to take effect in June 2025, which will require compliance from digital products and services [8] - The company anticipates demand in the EU to mirror the rollout of GDPR, which scaled over five years [9] Company Strategy and Development Direction - The company continues to invest in its product suite, significantly increasing AI automated detection capabilities [7] - Plans for further expansion in the EU market are underway, including hiring new account executives [8] - The company aims to maintain a "Rule of 40" status, balancing growth and profitability [12] Management's Comments on Operating Environment and Future Outlook - Management expects growth in revenue and adjusted EBITDA in 2025, with acceleration anticipated in the second half of the year [11] - Economic conditions are being considered in guidance, with a cautious outlook due to potential federal budget cuts and tariffs [58] Other Important Information - The company achieved record adjusted EBITDA of approximately $6,700,000 for the full year 2024, compared to $1,300,000 in 2023 [19] - A share repurchase program of up to $12,500,000 was authorized by the Board of Directors [19] Q&A Session Summary Question: Can you provide details on the EBITDA guidance for the year? - The guidance includes necessary investments for sales and marketing in Europe and the U.S. [22][24] Question: How are bookings from the partner channel performing? - Aggressive go-to-market plans are expected to contribute to growth in the second half of the year [28] Question: What trends are being observed in the enterprise channel? - Strong growth and improved close rates are being seen in the enterprise channel [35] Question: How is the company preparing for the European accessibility opportunity? - There is a significant increase in inbound demand and deal progression is being observed [37] Question: What is the balance between buybacks and debt reductions? - The company plans to balance buybacks with debt reductions, focusing on shareholder interests [44][45] Question: What are the retention rates compared to last year? - Gross retention rates are around 90%, showing stability year-over-year [47][48] Question: What challenges might arise if demand in Europe accelerates? - The primary challenge would be hiring sufficient sales personnel to meet demand [51][52]

Core Viewpoint - AudioEye reported quarterly earnings of $0.18 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.11 per share a year ago [1] - The company posted revenues of $9.72 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.10%, but up from $7.87 million year-over-year [2] Financial Performance - The earnings surprise for the previous quarter was 14.29%, with actual earnings of $0.16 per share compared to an expected $0.14 [1] - Over the last four quarters, AudioEye has surpassed consensus EPS estimates three times and topped revenue estimates twice [2] Stock Performance - AudioEye shares have declined approximately 20.6% since the beginning of the year, contrasting with the S&P 500's decline of 5.3% [3] - The current Zacks Rank for AudioEye is 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $9.91 million, and for the current fiscal year, it is $0.69 on revenues of $42.94 million [7] - The outlook for the Internet - Software industry is positive, ranking in the top 33% of over 250 Zacks industries, suggesting potential for outperformance [8]

Financial Performance - The company incurred a net loss of $4,254,000 for the year ended December 31, 2024, with an accumulated deficit of $95,746,000 as of the same date[44]. - The company has $5.7 million in cash as of December 31, 2024, and will require additional capital for future business development[46]. - The company has a history of generating significant losses and may not achieve consistent profitability in the future[44]. Competition and Market Risks - The company is subject to significant competition from larger, better-financed companies, which may impact its ability to achieve profitability[59]. - The company must navigate weakened global economic conditions that may impact its business and results[49]. - If the company fails to adapt to changing market conditions and customer requirements, it could lose customers and market share[80]. Strategic Opportunities and Acquisitions - The company may pursue strategic opportunities, including acquisitions, which could involve significant management resources and costs[52]. - The company acquired ADA Site Compliance on September 27, 2024, but faces risks in successfully integrating the business and achieving expected benefits[62]. - Expansion into new products and markets presents additional risks, including potential lower profitability and challenges in customer adoption[74]. Legal and Regulatory Risks - The company faces risks related to litigation, which could adversely affect its financial position and results of operations[50]. - The company may face increased legal proceedings related to intellectual property rights, which could adversely affect its financial condition and operations[69]. - The current legal environment remains unclear, and there is a risk of unintentional violations of laws that could impact the company's offerings[70]. - The company may face risks related to government contracts, including audits and potential penalties for violations[78]. Operational Risks - The company relies on its intellectual property rights for competitive advantage, but faces challenges in protecting these rights[63]. - The growth of online services, IoT, and next-generation applications is critical for the company's success, but there are risks that this growth may not occur as expected[71]. - System interruptions and lack of redundancy could lead to reduced net sales and negatively affect the attractiveness of the company's products and services[75]. - The company’s success is dependent on its employees, including senior management, and any delays in execution due to new personnel could impact business strategies[73]. Stockholder and Market Considerations - The company does not expect to pay dividends to common stockholders in the foreseeable future, affecting potential investor returns[93]. - The company has approximately 12,285,000 shares of common stock issued and outstanding as of December 31, 2024[108]. - The company has outstanding options to purchase an aggregate of approximately 36,000 shares of common stock and restricted stock units covering approximately 1,315,000 shares[108]. - As of January 31, 2025, directors and executive officers beneficially owned approximately 29% of the aggregate voting power of the company's outstanding shares[113]. - The company must maintain a minimum amount of stockholders' equity and a minimum number of holders of its securities to avoid delisting from the Nasdaq Capital Market[99]. - The company has historically experienced limited trading volume and significant price volatility, which may reduce liquidity[98]. - The company is subject to reporting obligations under the Securities Exchange Act of 1934, which places significant demands on its resources[112]. - The company may face substantial costs and management time consumption if it fails to maintain effective internal controls over financial reporting[97]. - The company’s common stock may be subject to delisting if it fails to meet the continuing listing criteria of the Nasdaq Capital Market[99]. - The issuance of additional shares may dilute existing stockholders' interests and reduce the market price of the common stock[110]. - The company’s stock price may decline if analysts publish unfavorable research or cease coverage[111].

Revenue Growth - Total revenue for Q4 2024 increased 24% to a record $9.7 million from $7.9 million in the same prior year period[6] - Total revenue for the full year 2024 increased 12% to a record $35.2 million from $31.3 million in 2023[6] - Revenue for Q4 2024 was $9,723,000, a 23.5% increase from $7,869,000 in Q4 2023[30] - For 2025, the company is guiding revenue between $41 million and $42 million, representing an 18% growth at the midpoint[3] Adjusted EBITDA and Earnings - Adjusted EBITDA for Q4 2024 was a record $2.3 million, with an adjusted EPS of $0.18 per share, compared to adjusted EBITDA of $1.3 million and adjusted EPS of $0.11 per share in the same prior year period[6] - The company expects adjusted EBITDA for 2025 to be between $9 million and $10 million, indicating a 41% growth at the midpoint[3] - Adjusted EBITDA for Q4 2024 was $2,291,000, representing an Adjusted EBITDA margin of 24%, compared to 17% in Q4 2023[33] - Adjusted earnings per diluted share for Q4 2024 was $0.18, up from $0.11 in Q4 2023[33] Customer Growth - The company had approximately 127,000 customers as of December 31, 2024, an increase of 17,000 from December 31, 2023[12] Operating Expenses - In Q4 2024, total operating expenses increased 36% to $9.1 million, primarily due to increased selling and marketing expenses and litigation costs[6] - Total operating expenses for Q4 2024 were $9,081,000, compared to $6,665,000 in Q4 2023, reflecting a 36.3% increase[30] Financial Position - Total assets increased to $29,766,000 as of December 31, 2024, from $25,495,000 in 2023, marking a growth of 17.8%[32] - Cash and cash equivalents decreased to $5,651,000 in 2024 from $9,236,000 in 2023, a decline of 38.5%[32] Capital Raising - The company completed an at-the-market offering in Q4 2024, raising approximately $7 million at an average share price of $24.65[12] Product Development - AudioEye launched new role-based courses on its accessibility learning platform, AudioEyeQ, in February 2025[12] Net Loss - Net loss for Q4 2024 was $1,488,000, compared to a net loss of $533,000 in Q4 2023, indicating a deterioration in performance[30] Forward-Looking Statements - The company anticipates providing forward-looking non-GAAP financial measures for adjusted EBITDA and adjusted EPS guidance for Q1 and full year 2025[27]

Core Insights - AudioEye, Inc. reported a record revenue of $9.7 million for Q4 2024, reflecting a 24% year-over-year growth from $7.9 million in Q4 2023 [7] - The company achieved an adjusted EBITDA margin of 24% in Q4 2024, aligning with the 'Rule of 40' metric [3][7] - For 2025, AudioEye is guiding revenue between $41 million and $42 million, indicating an 18% growth at the midpoint [3][9] Financial Performance - Total revenue for the full year 2024 increased by 12% to a record $35.2 million from $31.3 million in 2023 [7] - Gross profit for 2024 rose to $27.9 million, representing 79% of total revenue, compared to $24.3 million or 78% in 2023 [7] - The net loss for 2024 was $4.3 million, or $(0.36) per share, an improvement from a net loss of $5.9 million, or $(0.50) per share, in 2023 [7] Operational Metrics - Annual Recurring Revenue (ARR) as of December 31, 2024, increased to $36.6 million from $36.2 million as of September 30, 2024 [7] - Revenue per employee exceeded $330,000 on an annualized basis in Q4 2024 [3] - Adjusted EBITDA for Q4 2024 was a record $2.3 million, compared to $1.3 million in Q4 2023 [7] Strategic Developments - In March 2025, AudioEye appointed Jim Hawkins to its board of directors, who has a strong track record in driving growth [14] - The company released its 2025 Digital Accessibility Index, analyzing compliance across various industries and identifying an average of 297 accessibility issues per page [8] - AudioEye completed an at-the-market offering in Q4 2024, raising approximately $7 million [14] Future Outlook - For Q1 2025, AudioEye expects revenue between $9.7 million and $9.8 million, with adjusted EBITDA projected between $1.85 million and $1.95 million [9] - The company anticipates adjusted EPS of between $0.14 and $0.16 per share for Q1 2025 and between $0.70 and $0.80 per share for the full year 2025 [9]

Core Viewpoint - AudioEye is set to report its fourth-quarter 2024 results on March 12, with expectations of significant revenue growth and improved earnings metrics, despite a premium valuation and competitive pressures in the digital accessibility market [1][19]. Financial Performance - The company anticipates revenues between $9.7 million and $9.8 million for Q4 2024, reflecting a 24% year-over-year increase [1]. - The Zacks Consensus Estimate for revenues is $9.73 million, indicating a 23.67% rise from the previous year [2]. - Adjusted EBITDA is expected to be between $2.2 million and $2.3 million, with adjusted EPS projected at 18 to 19 cents per share [1][2]. Earnings Surprise and Estimates - AudioEye achieved an earnings surprise of 14.229% in the last reported quarter, consistently beating the Zacks Consensus Estimate over the past four quarters, with an average surprise of 83.57% [4]. - Current EPS estimates remain stable at 18 cents for Q4 2024, with no changes over the past 90 days [3]. Growth Drivers - The company has benefited from the expansion of its Enterprise and Partner/Marketplace channels, which grew at an annualized rate of 21% in Q3 [8]. - The acquisition of ADA Site Compliance, contributing approximately $2 million in 2023 revenues, is expected to enhance Q4 performance, despite potential integration costs [8]. - New features like the Accessibility Protection Status are designed to improve competitive positioning against traditional consulting firms and automation-only competitors [9]. Market Position and Valuation - AudioEye's stock price has increased by 46.2% over the past year, outperforming the broader Zacks Computer and Technology sector [13]. - The company’s trailing-12 month price-to-earnings ratio stands at 74.18, significantly higher than the industry average of 39.48, raising concerns about sustainability [16]. Strategic Partnerships - Expanded partnerships with Finalsite and CivicPlus are expected to gain traction, with potential for "tens of millions of dollars additional" revenues at full penetration [11]. - The A11iance Team, consisting of accessibility experts with disabilities, has identified over 35,000 accessibility issues, enhancing the company's service offerings [10]. Investment Considerations - While AudioEye shows strong revenue growth and improving profitability, its premium valuation relative to peers suggests a cautious investment approach [19]. - Investors may consider waiting for Q4 results to assess the effectiveness of integration initiatives and competitive advantages before making new investments [20].