AudioEye(US:AEYE)2025-05-01 21:10Revenue 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]