AudioEye(US:AEYE)2025-03-13 02:12Financial 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]