[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Second Quarter 2025 Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Highlights) AudioEye achieved its 38th consecutive quarter of record revenue, with significant year-over-year growth in total revenue, gross profit, adjusted EBITDA, and adjusted EPS, alongside a substantial reduction in net loss and sequential increases in ARR and customer count Second Quarter 2025 Key Financial & Operational Highlights | Metric | Q2 2025 | Q2 2024 | Change (YoY) | | :----------------------- | :------ | :------ | :----------- | | Total Revenue | $9.9M | $8.5M | +16% | | Gross Profit | $7.6M | $6.7M | +13.4% | | Gross Margin | 77% | 79% | -2 ppts | | Net Loss | $0.0M | $0.7M | -100% | | Net Loss per Share | $(0.00) | $(0.06) | -100% | | Adjusted EBITDA | $1.9M | $1.5M | +26.7% | | Adjusted EPS | $0.15 | $0.12 | +25% | | Annual Recurring Revenue (ARR) (as of June 30, 2025) | $38.2M | $37.1M (as of Mar 31, 2025) | +$1.1M (Seq) | | Total Customers (as of June 30, 2025) | 120,000 | 119,000 (as of Mar 31, 2025) | +1,000 (Seq) | [Strategic Updates](index=1&type=section&id=Strategic%20Updates) AudioEye is experiencing business momentum in the US and EU, driven by the newly enacted European Accessibility Act, while strategically phasing out legacy platforms to enhance efficiency and focus on synergistic cash flow - Business momentum is driven by the United States and the newly enacted European Accessibility Act (EAA), which went into effect on June 28, 2025, and is expected to drive demand and compliance[2](index=2&type=chunk)[6](index=6&type=chunk) - The company is phasing out certain customers and legacy platforms from previous acquisitions to avoid duplicate systems, remove technology debt, and focus on synergistic cash flow[5](index=5&type=chunk) - Customer count increased sequentially by **1,000** to approximately **120,000**, driven by growth in both the Partner and Marketplace and Enterprise channels[6](index=6&type=chunk) [Financial Outlook](index=1&type=section&id=Financial%20Outlook) AudioEye provided updated full-year 2025 guidance, projecting continued revenue growth and improved profitability, with an aspirational goal for significant annual EPS growth over the next three years Financial Outlook (Q3 2025 & Full Year 2025 Guidance) | Metric | Q3 2025 Guidance | Full Year 2025 Guidance (Updated) | | :----------------- | :--------------- | :-------------------------------- | | Revenue | $10.2M - $10.4M | $40.3M - $40.7M | | Annualized Growth Rate (midpoint) | 18% | N/A | | Adjusted EBITDA | $2.2M - $2.4M | $8.9M - $9.1M | | Adjusted EPS | $0.17 - $0.19 | $0.71 - $0.73 | - Aspirational goal to grow adjusted EPS and EPS annually by **30-40%** for the next three years[2](index=2&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) [About AudioEye](index=3&type=section&id=About%20AudioEye) AudioEye is a leading digital accessibility company dedicated to ensuring an accessible digital future, with a comprehensive solution combining AI automation and expert human fixes, serving over 120,000 customers and holding 24 US patents - **AudioEye** is an industry-leading digital accessibility company, aiming to ensure the digital future is accessible[1](index=1&type=chunk)[9](index=9&type=chunk) - The company's solution combines **AI automation technology** with expert fixes informed by the disability community[9](index=9&type=chunk) - AudioEye serves over **120,000 customers**, including major brands like Samsung, Calvin Klein, and Samsonite, helping them meet and exceed compliance standards[9](index=9&type=chunk) - The solution includes **24/7 accessibility monitoring**, automated WCAG issue testing and fixes, expert testing, developer tools, and legal protection, backed by **24 US patents**[9](index=9&type=chunk) [Key Operating Metrics & Definitions](index=3&type=section&id=Key%20Operating%20Metrics%20%26%20Definitions) AudioEye considers Annual Recurring Revenue (ARR) as a key operating metric and defines its customer base through two primary channels: Enterprise and Partner & Marketplace, each with distinct characteristics and service models - **Annual Recurring Revenue (ARR)** is considered a key operating metric and indicator of overall business performance, used for planning, forecasting, and evaluating results[11](index=11&type=chunk) [Customer Channels](index=4&type=section&id=Customer%20Channels) AudioEye manages its customers through two primary channels: Enterprise, which serves larger organizations with custom solutions, and Partner & Marketplace, which caters to small and medium-sized businesses via partners or direct marketplace purchases - The **Enterprise channel** consists of larger customers and organizations, including those with non-platform custom websites, who generally engage directly with AudioEye sales personnel for custom pricing and solutions, and also includes federal, state, and local government agencies[12](index=12&type=chunk)[13](index=13&type=chunk) - The **Partner and Marketplace channel** serves small and medium-sized businesses (SMBs) who are on a partner or reseller's web-hosting platform or who purchase an AudioEye solution from its marketplace, including CMS partners, platform & agency partners, and authorized resellers[13](index=13&type=chunk) [Annual Recurring Revenue (ARR) Definition](index=5&type=section&id=Annual%20Recurring%20Revenue%20%28ARR%29%20Definition) ARR is calculated as the sum of annualized recurring fees from active contracts in the Enterprise channel and annual or monthly recurring fees for active customers in the Partner & Marketplace channel, specifically including subscription-based services and excluding one-time fees - **ARR** is defined as the sum of (i) the total annualized recurring fee at the date of determination under each active contract for the Enterprise channel, plus (ii) the annual or monthly recurring fee for all active customers at the date of determination for the Partner and Marketplace channel, assuming no changes to the subscription[14](index=14&type=chunk) - Recurring fees include revenues from subscription services or annual service offerings such as automation and platform, periodic auditing, human-assisted technological fixes, legal support, professional service offerings, and other multi-year recurring services[14](index=14&type=chunk) - **ARR excludes non-recurring fees**, which are revenues from services typically not offered as a subscription or annual service, such as PDF remediation, one-time mobile application reports, and other miscellaneous one-time services[14](index=14&type=chunk) [Financial Statements & Non-GAAP Reconciliations](index=8&type=section&id=Financial%20Statements%20%26%20Non-GAAP%20Reconciliations) [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) The unaudited consolidated statements of operations show AudioEye's financial performance for the three and six months ended June 30, 2025, compared to the prior year, highlighting revenue growth and a significant reduction in net loss Consolidated Statements of Operations (Unaudited, in thousands, except per share data) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $9,857 | $8,470 | $19,590 | $16,553 | | Cost of revenue | $2,238 | $1,764 | $4,233 | $3,525 | | Gross profit | $7,619 | $6,706 | $15,357 | $13,028 | | Total operating expenses | $7,377 | $7,203 | $16,055 | $14,156 | | Operating income (loss) | $242 | $(497) | $(698) | $(1,128) | | Net loss | $(2) | $(735) | $(1,471) | $(1,564) | | Net loss per common share-basic and diluted | $0.00 | $(0.06) | $(0.12) | $(0.13) | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) The unaudited consolidated balance sheets present AudioEye's financial position as of June 30, 2025, compared to December 31, 2024, showing changes in assets, liabilities, and stockholders' equity Consolidated Balance Sheets (Unaudited, in thousands, except per share data) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Cash and cash equivalents | $6,869 | $5,651 | | Total current assets | $14,789 | $12,120 | | Total assets | $33,900 | $29,766 | | Total current liabilities | $13,405 | $11,571 | | Total liabilities | $26,551 | $20,330 | | Total stockholders' equity | $7,349 | $9,436 | [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) AudioEye utilizes non-GAAP financial measures, specifically Adjusted EBITDA and Adjusted EPS, to provide a clearer view of its core operating performance by excluding certain non-cash or non-recurring items, while also providing detailed definitions and reconciliations to GAAP measures [Use and Rationale of Non-GAAP Measures](index=5&type=section&id=Use%20and%20Rationale%20of%20Non-GAAP%20Measures) AudioEye uses non-GAAP measures like Adjusted EBITDA and Adjusted EPS to offer a consistent, period-to-period comparison of operating performance, believing they provide a more complete understanding of business trends by excluding items not reflective of core operations - **Adjusted EBITDA**, **Adjusted EBITDA margin**, and **Adjusted EPS** are used to facilitate consistent period-to-period comparison and provide a more complete understanding of factors and trends affecting the business than GAAP measures alone[16](index=16&type=chunk) - Adjustments primarily exclude recurring non-cash items (e.g., stock-based compensation, valuation adjustments) and items management does not consider in assessing ongoing operating performance (e.g., litigation expense)[16](index=16&type=chunk) - These non-GAAP measures have limitations; they are not GAAP liquidity measures, not alternatives to cash flow, and should not be considered in isolation or as substitutes for GAAP results[17](index=17&type=chunk)[18](index=18&type=chunk) [Definitions of Non-GAAP Measures](index=5&type=section&id=Definitions%20of%20Non-GAAP%20Measures) AudioEye provides specific definitions for its non-GAAP measures: Adjusted EBITDA is net loss adjusted for various non-cash and non-operating expenses, and Adjusted EPS is net loss per diluted common share similarly adjusted, including incremental shares - **Adjusted EBITDA** is defined as net loss, plus interest expense, plus depreciation and amortization expense, plus stock-based compensation expense, less change in fair value of contingent consideration, plus certain litigation expense, plus certain severance expense, plus certain acquisition expense, plus loss on disposal or impairment of long-lived assets, plus loss on extinguishment of debt, and plus lost deposit on alternative financing[19](index=19&type=chunk) - **Adjusted EBITDA margin** is Adjusted EBITDA as a percentage of GAAP revenue[19](index=19&type=chunk) - **Adjusted EPS** is defined as net loss per diluted common share, plus the same adjustments as Adjusted EBITDA (on a per share basis), and includes incremental shares in the share count that are considered anti-dilutive in a GAAP net loss position[19](index=19&type=chunk)[20](index=20&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) The company provides a detailed reconciliation of its GAAP net loss and net loss per common share to its non-GAAP Adjusted EBITDA and Adjusted EPS for the three and six months ended June 30, 2025 and 2024 Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited, in thousands, except per share data) | Metric | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :---------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss (GAAP) | $(2) | $(735) | $(1,471) | $(1,564) | | Adjusted EBITDA | $1,931 | $1,472 | $3,839 | $2,389 | | Adjusted EBITDA margin | 20 % | 17 % | 20 % | 14 % | | Net loss per common share (GAAP) — diluted | $0.00 | $(0.06) | $(0.12) | $(0.13) | | Adjusted earnings per diluted share | $0.15 | $0.12 | $0.30 | $0.20 | | Diluted weighted average shares (GAAP) | 12,446 | 11,703 | 12,418 | 11,706 | | Adjusted diluted shares (Non-GAAP) | 12,660 | 12,271 | 12,620 | 12,178 | [Forward-Looking Non-GAAP Financial Measures](index=7&type=section&id=Forward-Looking%20Non-GAAP%20Financial%20Measures) AudioEye provides forward-looking non-GAAP guidance for adjusted EBITDA and adjusted EPS but does not offer quantitative reconciliations to GAAP measures due to the impracticality of prospective data and to avoid implying undue precision - The company includes forward-looking non-GAAP financial measures (**adjusted EBITDA** and **adjusted EPS guidance**) for Q3 and full year 2025, based on internal forecasts[21](index=21&type=chunk) - Quantitative reconciliations of these forward-looking non-GAAP measures to GAAP measures are not provided because the excluded items are not available on a prospective basis without unreasonable effort, and such reconciliations could imply a confusing degree of precision and certainty[21](index=21&type=chunk) [Corporate & Legal Information](index=3&type=section&id=Corporate%20%26%20Legal%20Information) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) AudioEye announced details for its Q2 2025 earnings conference call, including the date, time, dial-in numbers, webcast link, and replay availability for investors and interested parties - AudioEye management will hold a conference call on **Thursday, August 7, 2025, at 4:30 p.m. Eastern time** to discuss the Q2 2025 results[7](index=7&type=chunk) - Participants can dial in using **888-645-4404 (U.S.)** or **862-298-0702 (International)**, or access the live webcast via the Q225 Webcast Link[7](index=7&type=chunk) - A telephonic replay will be available until **August 21, 2025**, and the audio recording will remain available on the investor relations section of the Company's website for **90 days**[8](index=8&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section serves as a cautionary statement, indicating that any forward-looking statements regarding AudioEye's future expectations are subject to various risks and uncertainties, and the company disclaims any obligation to update them - Statements about AudioEye's future expectations, beliefs, plans, objectives, goals, prospects, financial condition, assumptions, or future events or performance are considered "**forward-looking statements**" under federal securities laws[10](index=10&type=chunk) - These statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from what is expressed or implied[10](index=10&type=chunk) - AudioEye does not undertake any obligation to update such forward-looking statements to reflect events or uncertainties after the date of the press release[10](index=10&type=chunk) [Investor Contact](index=7&type=section&id=Investor%20Contact) Contact information for investor relations is provided for inquiries regarding AudioEye - For investor inquiries, contact **Tom Colton** at Gateway Group, Inc. via email (**AEYE@gateway-grp.com**) or phone (**949-574-3860**)[22](index=22&type=chunk)

Core Insights - AudioEye, Inc. reported its 38th consecutive quarter of record revenue, achieving a total revenue of $9.9 million for Q2 2025, a 16% increase from $8.5 million in the same period last year [7] - The company anticipates annualized sequential revenue growth in the high teens for the second half of 2025, driven by business momentum in the U.S. and the EU due to the European Accessibility Act [2] - AudioEye aims for adjusted EPS and EPS growth of 30-40% annually over the next three years [2] Financial Performance - Total revenue for Q2 2025 was $9.9 million, up from $8.5 million in Q2 2024, with gross profit increasing to $7.6 million [7] - Adjusted EBITDA for Q2 2025 was $1.9 million, compared to $1.5 million in Q2 2024, reflecting a margin increase to 20% from 17% [25][26] - The net loss for Q2 2025 was $0.0 million, an improvement from a net loss of $0.7 million in the same prior year period [7] Financial Outlook - For Q3 2025, AudioEye expects revenue between $10.2 million and $10.4 million, representing an annualized growth rate of 18% at the midpoint [5] - The full-year 2025 revenue guidance has been updated to between $40.3 million and $40.7 million, reflecting the phase-out of certain customers due to previous acquisitions [5] - Adjusted EBITDA for Q3 2025 is expected to be between $2.2 million and $2.4 million, with adjusted EPS projected between $0.17 and $0.19 per share [5] Customer Base and Market Position - As of June 30, 2025, AudioEye had approximately 120,000 customers, an increase of 1,000 from the previous quarter, driven by growth in both Partner and Marketplace and Enterprise channels [7] - The European Accessibility Act, effective June 28, 2025, is expected to drive demand for AudioEye's services as businesses in the EU must comply with new accessibility requirements [7]

Core Viewpoint - AudioEye, Inc. will hold a conference call on August 7, 2025, to discuss its financial results for Q2 2025, which ended on June 30, 2025 [1] Group 1: Conference Call Details - The conference call is scheduled for Thursday, August 7, 2025, at 4:30 p.m. Eastern Time [2] - U.S. dial-in number is 888-645-4404, and the international number is 862-298-0702 [2] - A webcast will be available live and for replay on the company's investor relations website [3] Group 2: Company Overview - AudioEye is a leader in digital accessibility, providing solutions that combine AI automation technology with expert fixes [4] - The company serves over 119,000 customers, including notable brands like Samsung, Calvin Klein, and Samsonite [4] - AudioEye holds 24 U.S. patents and offers services such as 24/7 accessibility monitoring and legal protection [4]

Company Performance - AudioEye closed at $11.59, reflecting a -1.11% change from the previous day, underperforming compared to the S&P 500's 0.14% gain [1] - Over the past month, AudioEye shares gained 3.26%, lagging behind the Computer and Technology sector's gain of 5.36% and the S&P 500's gain of 3.97% [1] Earnings Forecast - AudioEye is projected to report earnings of $0.16 per share, indicating a year-over-year growth of 33.33% [2] - Revenue is expected to be $9.94 million, representing a 17.31% increase compared to the same quarter last year [2] Annual Estimates - For the entire year, earnings are forecasted at $0.71 per share and revenue at $41.51 million, showing changes of +29.09% and +17.91% respectively compared to the previous year [3] - Recent changes to analyst estimates for AudioEye may reflect shifting business dynamics, with positive revisions seen as a favorable sign for the business outlook [3] Valuation Metrics - AudioEye has a Forward P/E ratio of 16.62, which is a discount compared to its industry's Forward P/E of 27.71 [6] - The company has a PEG ratio of 0.66, significantly lower than the Internet - Software industry's average PEG ratio of 2.15 [6] Industry Ranking - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 65, placing it in the top 27% of over 250 industries [7] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on AudioEye (AEYE), and emphasizes the importance of using these recommendations in conjunction with other analytical tools like the Zacks Rank [1][5]. Group 1: 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]. - The article highlights that brokerage firms often exhibit a positive bias in their ratings due to vested interests, leading to a disproportionate number of favorable recommendations compared to negative ones [6][10]. Group 2: Zacks Rank Comparison - The Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, providing a more reliable indicator of future price performance compared to ABR [8][11]. - The Zacks Rank is updated more frequently and reflects the latest earnings estimates, making it a timely tool for predicting stock price movements [13]. Group 3: Current Performance and Outlook - The Zacks Consensus Estimate for AudioEye remains unchanged at $0.71, suggesting stable analyst views on the company's earnings prospects [14]. - Due to the unchanged consensus estimate and other factors, AudioEye holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the favorable ABR [15].

Company Performance - AudioEye (AEYE) closed at $11.63, reflecting a -4.59% change from the previous day, underperforming compared to the S&P 500's loss of 0.79% [1] - Prior to the latest trading session, shares had decreased by 3.79%, while the Computer and Technology sector gained 7.88% and the S&P 500 gained 5.22% [1] Upcoming Earnings - The upcoming earnings release is expected to show an EPS of $0.16, representing a 33.33% increase year-over-year [2] - Quarterly revenue is anticipated to be $9.94 million, up 17.31% from the same period last year [2] Full-Year Estimates - Full-year Zacks Consensus Estimates project earnings of $0.71 per share and revenue of $41.51 million, indicating year-over-year increases of +29.09% and +17.91%, respectively [3] - Recent analyst estimate revisions suggest optimism regarding the company's business and profitability [3] Analyst Ratings - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), indicates that AudioEye currently holds a Zacks Rank of 3 (Hold) [5] - Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged [5] Valuation Metrics - AudioEye is trading at a Forward P/E ratio of 17.29, which is a discount compared to the industry average Forward P/E of 29.69 [6] - The company has a PEG ratio of 0.69, significantly lower than the industry average PEG ratio of 2.24 [6] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, ranks in the top 18% of all industries according to the Zacks Industry Rank [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - The European Accessibility Act (EAA) introduces significant digital accessibility requirements for businesses, with penalties for non-compliance [1][8] - AudioEye is expanding its operations in the EU to meet the growing demand for compliance solutions as businesses adapt to the EAA [1][2] - The EAA applies to companies operating in the EU with over 10 employees and €2 million in annual revenue, covering various digital platforms [8] Company Overview - AudioEye is a leading digital accessibility company, providing solutions that combine AI-driven automation with expert-led testing [5][6] - The company claims to offer 300-400% more legal protection compared to other solutions in the market [3][7] - AudioEye has over 119,000 customers, including notable brands like Samsung and Calvin Klein [6] Market Demand - There is an increasing demand for AudioEye's platform among U.S.-based customers to ensure compliance with new global accessibility standards [2] - The company is experiencing growth in the UK and EU, particularly in sectors such as retail, SaaS, transportation, and hospitality [2] Compliance Requirements - Organizations must align with the Web Content Accessibility Guidelines (WCAG) 2.1, Level AA, as part of the EAA compliance [8] - Non-compliance can lead to fines of up to €3 million, depending on the Member State, and may increase legal risks for brands [8] Service Offerings - AudioEye's platform detects an average of 500% more accessibility issues than other solutions [7] - The company provides custom legal support and guidance, claiming to have the industry's only real legal guarantee [7]

Company Performance - AudioEye (AEYE) stock increased by 2.93% to $11.96, outperforming the S&P 500's daily gain of 1.11% [1] - Over the past month, shares of AudioEye have decreased by 4.36%, while the Computer and Technology sector gained 5.67% and the S&P 500 gained 3.92% [1] Earnings Projections - The upcoming EPS for AudioEye is projected at $0.16, reflecting a 33.33% increase compared to the same quarter last year [2] - Revenue is anticipated to be $9.94 million, indicating a 17.31% increase from the same quarter last year [2] - For the entire fiscal year, earnings are projected at $0.71 per share and revenue at $41.51 million, representing increases of 29.09% and 17.91% respectively from the prior year [3] Analyst Forecasts - Recent revisions to analyst forecasts for AudioEye are being monitored, as upward revisions indicate positive sentiment regarding the company's business operations and profit generation capabilities [4] - The Zacks Consensus EPS estimate has remained unchanged over the past month, with AudioEye currently holding a Zacks Rank of 2 (Buy) [6] Valuation Metrics - AudioEye is trading at a Forward P/E ratio of 16.48, which is a discount compared to the industry average Forward P/E of 28 [6] - The PEG ratio for AudioEye is currently 0.66, significantly lower than the industry average PEG ratio of 2.2 [7] Industry Context - The Internet - Software industry, which includes AudioEye, has a Zacks Industry Rank of 46, placing it within the top 19% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Performance - AudioEye's stock closed at $12.67, reflecting a +2.84% increase from the previous day, outperforming the S&P 500's gain of 1.03% [1] - The stock has risen by 3.36% over the past month, which is lower than the Computer and Technology sector's gain of 9.02% and the S&P 500's gain of 5.27% [1] Earnings Estimates - The upcoming earnings report for AudioEye is projected to show earnings per share (EPS) of $0.16, a 33.33% increase year-over-year [2] - Revenue is anticipated to be $9.94 million, indicating a 17.31% increase from the same quarter last year [2] Fiscal Year Projections - For the entire fiscal year, earnings are estimated at $0.71 per share and revenue at $41.51 million, reflecting increases of +29.09% and +17.91% respectively from the previous year [3] - Recent analyst estimate revisions indicate optimism regarding AudioEye's business and profitability [3] Analyst Ratings - The Zacks Rank system currently rates AudioEye as 2 (Buy), with a historical average annual return of +25% for 1 rated stocks since 1988 [5] - The Zacks Consensus EPS estimate has remained unchanged over the past month [5] Valuation Metrics - AudioEye has a Forward P/E ratio of 17.48, which is lower than the industry average Forward P/E of 29.63 [6] - The company has a PEG ratio of 0.7, significantly below the Internet - Software industry's average PEG ratio of 2.35 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 55, placing it in the top 23% of over 250 industries [8] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [8]

Core Viewpoint - AudioEye is expected to show strong earnings growth in its upcoming release, with projected EPS of $0.16 and revenue of $9.94 million, indicating significant year-over-year increases [2][3]. Company Performance - AudioEye's stock closed at $12.22, reflecting a slight decline of 0.81% from the previous day, underperforming the S&P 500's daily loss of 0.01% [1]. - Over the past month, AudioEye's shares gained 11.19%, outperforming the Computer and Technology sector's gain of 10.75% and the S&P 500's gain of 6.43% [1]. Earnings Estimates - The Zacks Consensus Estimates forecast earnings of $0.71 per share and revenue of $41.51 million for the entire year, representing increases of 29.09% and 17.91% respectively compared to the previous year [3]. - The EPS estimate has increased by 33.33% for the upcoming quarter compared to the same quarter last year [2]. Analyst Sentiment - Recent changes to analyst estimates for AudioEye indicate a positive outlook, reflecting analysts' confidence in the company's business performance and profit potential [4]. - The Zacks Rank for AudioEye is currently 2 (Buy), with a 6.67% increase in the consensus EPS estimate over the past month [6]. Valuation Metrics - AudioEye has a Forward P/E ratio of 17.48, which is lower than the industry's average Forward P/E of 28.91, suggesting it may be undervalued [7]. - The company has a PEG ratio of 0.7, significantly below the Internet - Software industry's average PEG ratio of 2.03, indicating favorable growth prospects relative to its valuation [8]. Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 53, placing it in the top 22% of over 250 industries [9].