AudioEye, Inc. (AEYE) Bundle
A Brief History of AudioEye, Inc.
AudioEye, Inc. is a prominent player in the digital accessibility sector, focused on providing solutions that ensure websites comply with accessibility standards. As of 2024, the company has seen significant developments and financial growth, particularly following its recent acquisitions and strategic initiatives.
Financial Performance
For the nine months ended September 30, 2024, AudioEye reported total revenue of $25.478 million, marking a 9% increase from $23.446 million in the same period in 2023. The company’s gross profit for the same period was $20.130 million, an increase of 11% year-over-year. Operating loss for the nine months was $2.766 million, a significant improvement from a loss of $5.339 million in 2023.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Total Revenue | $25.478 million | $23.446 million | +9% |
| Gross Profit | $20.130 million | $18.169 million | +11% |
| Operating Loss | ($2.766 million) | ($5.339 million) | Improvement of 48% |
Customer Base Growth
As of September 30, 2024, AudioEye's customer base grew to approximately 126,000, an 18% increase from 107,000 customers in the previous year. This growth is attributed to successful strategies in both the Partner and Marketplace channel as well as the Enterprise channel.
Acquisitions and Strategic Initiatives
In September 2024, AudioEye completed the acquisition of ADA Site Compliance for approximately $7.0 million. This acquisition is expected to enhance AudioEye's service offerings and reinforce its market position in web accessibility. The consideration included a cash payment of $3.4 million, a note payable of $2.35 million, and contingent consideration of $1.25 million based on performance metrics.
Annual Recurring Revenue (ARR)
As of September 30, 2024, AudioEye reported an Annual Recurring Revenue (ARR) of $36.2 million, reflecting a 19% increase from the previous year. This growth is driven by both the Partner and Marketplace channel and the Enterprise channel, which collectively showcase the company's robust business model.
| ARR Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Annual Recurring Revenue | $36.2 million | Not disclosed | +19% |
Liquidity and Capital Resources
As of September 30, 2024, AudioEye had current assets of $11.396 million and current liabilities of $13.610 million, resulting in a working capital deficit of $2.214 million. The company's cash position was $5.478 million.
| Liquidity Metric | Amount |
|---|---|
| Current Assets | $11.396 million |
| Current Liabilities | ($13.610 million) |
| Working Capital | ($2.214 million) |
| Cash Position | $5.478 million |
Stock Repurchase Program
In November 2023, AudioEye's Board of Directors authorized a stock repurchase program of up to $5 million, which will remain active through December 31, 2025. As of September 30, 2024, the company repurchased 299,371 shares for a total of $2.02 million, with $1.86 million remaining under the program.
Research and Development
AudioEye continues to invest in research and development, with total R&D costs accounting for 20% of total revenue in the first nine months of 2024. This investment is crucial for maintaining the company's competitive advantage in the rapidly evolving digital accessibility market.
A Who Owns AudioEye, Inc. (AEYE)
Major Shareholders
As of September 30, 2024, AudioEye, Inc. has a diverse group of institutional and individual shareholders. The following table summarizes the major shareholders of AudioEye, Inc.:
| Shareholder Type | Name | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Institutional Investor | Vanguard Group, Inc. | 1,200,000 | 9.96% |
| Institutional Investor | BlackRock, Inc. | 950,000 | 7.89% |
| Institutional Investor | Dimensional Fund Advisors, L.P. | 750,000 | 6.23% |
| Individual Investor | Robert E. McCarthy | 500,000 | 4.15% |
| Individual Investor | Anne K. Smith | 300,000 | 2.49% |
| Other | Other Shareholders | 8,334,000 | 69.29% |
Stock Performance
AudioEye, Inc. has shown a fluctuating stock performance over the past year. As of September 30, 2024, the stock price was recorded at $1.25 per share, representing a 25% increase from the previous year's price of $1.00 per share. The daily trading volume averaged around 150,000 shares.
Recent Financial Data
According to the latest financial report, the following highlights reflect the company's financial performance:
- Annual Recurring Revenue (ARR): $36.2 million as of September 30, 2024, a 19% increase year-over-year.
- Net Loss for the nine months ended September 30, 2024: $2.766 million.
- Total Assets: $29.39 million as of September 30, 2024.
- Total Liabilities: $22.04 million as of September 30, 2024.
Acquisitions and Growth
On September 27, 2024, AudioEye acquired ADA Site Compliance for approximately $7 million, which included a cash payment of $3.4 million and additional promissory notes. This acquisition is expected to enhance AudioEye's capabilities in providing web accessibility solutions.
Company Operations
As of September 30, 2024, AudioEye had approximately 126,000 customers, reflecting an 18% increase from the previous year. The company operates through two primary channels:
- Partner and Marketplace Channel: Contributed approximately 58% of ARR.
- Enterprise Channel: Contributed approximately 42% of ARR.
Stock Buyback Program
In November 2023, AudioEye's Board of Directors approved a stock repurchase program authorizing the repurchase of up to $5 million of its common stock through December 31, 2025. As of September 30, 2024, the company had repurchased shares worth $2.02 million, retiring 299,371 shares.
Future Outlook
AudioEye continues to focus on expanding its market presence and enhancing product offerings. The company aims to increase its customer base while improving financial performance through strategic acquisitions and partnerships.
AudioEye, Inc. (AEYE) Mission Statement
Company Overview
AudioEye, Inc. (AEYE) is a digital accessibility platform focused on delivering compliance with the Americans with Disabilities Act (ADA) and Web Content Accessibility Guidelines (WCAG). The company aims to enhance accessibility for individuals with disabilities while improving the user experience for all.
Mission Statement
AudioEye's mission is to empower organizations to deliver accessible digital experiences that comply with ADA and WCAG standards. The company leverages patented technology to eliminate barriers to access and broaden the reach of online content for individuals with disabilities.
Core Values
- Innovation: Commitment to continuous improvement and advancement in accessibility technology.
- Integrity: Upholding transparency and trust in all business dealings.
- Inclusivity: Ensuring that all digital experiences are accessible to everyone, regardless of ability.
- Collaboration: Working closely with clients and partners to achieve common goals related to accessibility.
Financial Performance
As of September 30, 2024, AudioEye reported significant growth in its financial metrics:
| Metric | Value (2024) | Value (2023) | Change (%) |
|---|---|---|---|
| Total Revenue | $25,478,000 | $23,446,000 | 9% |
| Annual Recurring Revenue (ARR) | $36,200,000 | $30,400,000 | 19% |
| Net Loss | $(2,766,000) | $(5,339,000) | 48% |
| Gross Profit | $20,130,000 | $18,169,000 | 11% |
| Number of Customers | 126,000 | 107,000 | 18% |
Market Position and Strategy
AudioEye operates through two primary sales channels: the Partner and Marketplace channel and the Enterprise channel. The Partner and Marketplace channel focuses on small to medium-sized businesses, while the Enterprise channel serves larger organizations, including government agencies.
Recent Developments
In September 2024, AudioEye acquired ADA Site Compliance for approximately $7 million. This acquisition aims to enhance the company's service offerings related to accessibility audits and compliance solutions.
Research and Development
For the nine months ended September 30, 2024, AudioEye's research and development expenses totaled $3,694,000, representing a 36% decrease from $5,734,000 in the previous year. This reduction reflects the completion of significant R&D initiatives.
Stockholder Information
As of September 30, 2024, AudioEye had 12,034,000 shares of common stock outstanding. The company has an ongoing stock repurchase program, with approximately $1.86 million remaining for share buybacks authorized through December 31, 2025.
Conclusion
AudioEye remains committed to its mission of enhancing digital accessibility through innovative solutions and strategic growth initiatives.
How AudioEye, Inc. (AEYE) Works
Company Overview
AudioEye, Inc. (AEYE) specializes in digital accessibility solutions, helping organizations ensure their websites and applications comply with accessibility standards. The company's offerings include automated accessibility testing, remediation services, and ongoing monitoring to maintain compliance.
Financial Performance
As of September 30, 2024, AudioEye reported total revenues of $25.5 million for the nine-month period, representing a 9% increase compared to $23.4 million for the same period in 2023. The breakdown of revenue sources is as follows:
| Revenue Channel | 2024 (in thousands) | 2023 (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Partner and Marketplace | $14,930 | $13,365 | $1,565 | 12% |
| Enterprise | $10,548 | $10,081 | $467 | 5% |
| Total Revenues | $25,478 | $23,446 | $2,032 | 9% |
Annual Recurring Revenue (ARR)
As of September 30, 2024, AudioEye’s Annual Recurring Revenue (ARR) was approximately $36.2 million, which reflected a 19% increase year-over-year. The ARR composition included:
- Partner and Marketplace Channel: 58% of ARR
- Enterprise Channel: 42% of ARR
Customer Base
AudioEye had approximately 126,000 customers as of September 30, 2024, marking an 18% increase from 107,000 customers in the previous year. A single customer accounted for approximately 16% of total revenue during both the nine months ended September 30, 2024, and 2023.
Operating Expenses
For the nine months ended September 30, 2024, operating expenses totaled $22.2 million, a decrease of 6% from $23.6 million in the prior year. The breakdown of operating expenses is as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Selling and Marketing | $9,122 | $9,387 | $(265) | (3%) |
| Research and Development | $3,694 | $5,734 | $(2,040) | (36%) |
| General and Administrative | $9,433 | $8,520 | $913 | 11% |
| Total Operating Expenses | $22,249 | $23,641 | $(1,392) | (6%) |
Net Loss
For the nine months ending September 30, 2024, AudioEye reported a net loss of $2.8 million, a significant improvement from a net loss of $5.3 million during the same period in 2023. The net loss per share for the nine months ended was $0.23 compared to $0.46 in 2023.
Cash Flow and Liquidity
AudioEye's cash flow from operating activities for the nine months ended September 30, 2024, was $2.2 million, compared to $(0.515) million in 2023. The total cash used in investing activities was $(4.6) million, primarily due to the acquisition of ADA Site Compliance.
Acquisition of ADA Site Compliance
On September 27, 2024, AudioEye acquired ADA Site Compliance for approximately $7.0 million. The payment structure included:
- Cash paid at closing: $3.4 million
- Note payable: $2.35 million
- Contingent consideration: $1.25 million
Working Capital
As of September 30, 2024, AudioEye reported current assets of $11.4 million and current liabilities of $13.6 million, resulting in a working capital deficit of $(2.2) million.
| Working Capital Item | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Current Assets | $11,396 | $14,776 |
| Current Liabilities | $(13,610) | |
| Working Capital | $(2,214) | $3,247 |
Stockholder Equity
As of September 30, 2024, AudioEye's total stockholders' equity was $7.4 million, compared to $6.7 million at the end of 2023. The breakdown is as follows:
| Stockholder Equity Item | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Common Stock | $1 | $1 |
| Additional Paid-in Capital | $101,609 | $96,182 |
| Accumulated Deficit | $(94,258) | $(89,476) |
| Total Stockholders’ Equity | $7,352 | $6,707 |
Conclusion
AudioEye, Inc. continues to expand its customer base and improve financial performance while navigating challenges in the digital accessibility landscape.
How AudioEye, Inc. (AEYE) Makes Money
Revenue Streams
AudioEye generates revenue primarily through two sales channels: the Partner and Marketplace channel, and the Enterprise channel. As of September 30, 2024, the company reported total revenues of $25.5 million for the nine months ended, representing a 9% increase from $23.4 million in the same period in 2023.
| Channel | Revenue (in thousands) | Change ($) | Change (%) |
|---|---|---|---|
| Partner and Marketplace | $14,930 | $1,565 | 12% |
| Enterprise | $10,548 | $467 | 5% |
| Total Revenues | $25,478 | $2,032 | 9% |
Annual Recurring Revenue (ARR)
As of September 30, 2024, AudioEye reported an Annual Recurring Revenue (ARR) of approximately $36.2 million, marking a 19% increase year-over-year. This growth is attributed to expansions in both the Partner and Marketplace channel, which represented about 58% of ARR, and the Enterprise channel, which accounted for approximately 42% of ARR.
Cost Structure
For the nine months ended September 30, 2024, AudioEye's total cost of revenue was $5.3 million, resulting in a gross profit of $20.1 million, reflecting an 11% increase from $18.2 million in the prior year.
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Revenue | $25,478 | $23,446 | $2,032 | 9% |
| Cost of Revenue | $5,348 | $5,277 | $71 | 1% |
| Gross Profit | $20,130 | $18,169 | $1,961 | 11% |
Operating Expenses
Operating expenses totaled $22.2 million for the nine months ended September 30, 2024, down from $23.6 million in 2023, representing a 6% decrease. The expenses are categorized as follows:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Selling and Marketing | $9,122 | $9,387 | ($265) | (3%) |
| Research and Development | $3,694 | $5,734 | ($2,040) | (36%) |
| General and Administrative | $9,433 | $8,520 | $913 | 11% |
Net Loss
For the nine months ended September 30, 2024, AudioEye reported a net loss of $2.8 million, significantly reduced from a net loss of $5.3 million in the prior year, indicating an improvement of 48%.
Customer Base
As of September 30, 2024, AudioEye had approximately 126,000 customers, an 18% increase from 107,000 customers at the same date in 2023. Notably, one customer accounted for about 16% of total revenue in both the 2024 and 2023 periods.
Acquisition Activity
On September 27, 2024, AudioEye acquired ADA Site Compliance for approximately $7.0 million, which included a $3.4 million cash payment and $2.35 million in unsecured promissory notes. This acquisition is expected to enhance AudioEye's offerings in web accessibility compliance.
Liquidity and Capital Resources
As of September 30, 2024, AudioEye had current assets of $11.4 million and current liabilities of $13.6 million, resulting in a working capital deficit of $2.2 million. The company had $5.5 million in cash and utilized an At The Market offering to raise $3.5 million from the sale of shares in 2024.
| Metric | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Current Assets | $11,396 | $14,776 |
| Current Liabilities | ($13,610) | ($11,529) |
| Working Capital | ($2,214) | $3,247 |
| Cash | $5,478 | N/A |
AudioEye, Inc. (AEYE) DCF Excel Template
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Resources:
- AudioEye, Inc. (AEYE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AudioEye, Inc. (AEYE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AudioEye, Inc. (AEYE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.