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AEYE Nasdaq· AudioEye Inc.
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AEYE Nasdaq· AudioEye Inc.
Earnings report Q3 2023

AudioEye Reports Revenue Growth and Increased Customer Count in Latest Quarter

Segments of revenue

In the latest quarter, AudioEye reported revenue of $7.84 million, representing a 2% increase compared to the same quarter last year. For the nine months ended September 30, 2023, total revenue reached $23.45 million, reflecting a 6% growth over the prior year comparable period. The company operates through two sales channels: the Partner and Marketplace channel, and the Enterprise channel. AudioEye focuses on recurring revenue growth in both channels while offering website and native mobile app report services and PDF services.

Strengths

AudioEye demonstrated strengths in its financial performance, including increased revenue and customer count. The company's revenue growth can be attributed to its focus on recurring revenue and the expansion of its customer base. As of September 30, 2023, AudioEye had approximately 107,000 customers, a significant 32% increase from the previous year. This growth in customer count is primarily attributed to the Partner and Marketplace channel. Additionally, AudioEye highlighted efficiencies in cost of revenue, leading to increased gross margins and decreased total operating expenses.

Challenges

Despite the revenue growth, AudioEye reported a net loss of $1.36 million for the quarter and $5.34 million for the nine months ended September 30, 2023. The company's operating loss for the quarter was $1.39 million, reflecting an improvement compared to the same quarter last year. However, the accumulated net losses indicate ongoing challenges in achieving profitability. AudioEye continues to invest in research and development and aims to expand its portfolio of proprietary intellectual property, which may impact its financial performance in the short term.

Noteworthy

AudioEye's Annual Recurring Revenue (ARR) as of September 30, 2023, was approximately $30.5 million, representing a 4% increase year-over-year. The company also disclosed that it holds two granted US patents in the United States and has three pending US patent applications, indicating its commitment to developing and protecting its proprietary technology.

Summary

AudioEye reported revenue growth and increased customer count in the latest quarter. The company's focus on recurring revenue and expansion in the Partner and Marketplace channel contributed to its financial performance. Efficiencies in cost of revenue led to improved gross margins and decreased total operating expenses. However, AudioEye continues to face challenges in achieving profitability, as indicated by its net losses. The company plans to invest in research and development and expand its portfolio of proprietary intellectual property. Overall, AudioEye's performance demonstrates positive momentum, but profitability remains a key area of focus for the company.

Source documents

Form 10-Q  filed on Nov 02, 2023
37 pages scanned

Reference data

Company financials Q3 revenue 7.9M
Analyst estimates Q3 EPS missed by -1,200.00%
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