AudioEye Reports Record First Quarter 2025 Results

AudioEye, Inc., a leading digital accessibility company, has released its financial results for the first quarter of 2025, ending March 31. The company has achieved its thirty-seventh consecutive period of record revenue, showcasing strong business momentum in both the United States and Europe.

Financial Highlights

For the first quarter of 2025, AudioEye reported a total revenue increase of 20% to $9.7 million, up from $8.1 million in the same period last year. Gross profit also saw an increase, reaching $7.7 million, which is 80% of total revenue, compared to $6.3 million or 78% of total revenue in the prior year period. However, the company reported a net loss of $1.5 million or $(0.12) per share, compared to a net loss of $0.8 million or $(0.07) per share in the same period last year.

Business and Operational Highlights

AudioEye's total operating expenses increased by 25% to $8.7 million, primarily due to additional investments in selling and marketing expenses, litigation expenses, and depreciation and amortization. The company also reported an adjusted EBITDA of $1.9 million and an adjusted EPS of $0.15, reflecting improvements from the previous year's adjusted EBITDA of $0.9 million and adjusted EPS of $0.08.

Annual Recurring Revenue (ARR) as of March 31, 2025, increased to $37.1 million from $36.6 million as of December 31, 2024. The company had $8.3 million in cash and cash equivalents, up from $5.7 million at the end of 2024.

Strategic Initiatives and Corporate Developments

On March 31, 2025, AudioEye completed a new $20 million loan facility with Western Alliance Bank, which includes a $12 million term loan, a $3 million revolver, and a $5 million delayed draw term loan. This new facility's interest rate represents a significant reduction from the previous facility, and the initial $12 million term loan was used to fully repay the existing term loan, further strengthening the company's cash position.

As of March 31, 2025, AudioEye had approximately 119,000 customers, an increase of 7,000 from the same period last year. However, the customer count decreased by 8,000 from December 31, 2024, primarily due to a contract renegotiation with an existing partner, which allowed for consolidating licenses previously billed individually.

Management's Perspective

AudioEye CEO David Moradi expressed satisfaction with the company's performance, highlighting the achievement of the 'Rule of 40' and strong business momentum. He emphasized the company's track record of growing revenues while increasing cash flow margin, positioning AudioEye well in an uncertain and changing macroeconomic environment. Moradi also mentioned the company's anticipation of generating nearly $1 per share of run-rate free cash flow by the fourth quarter, implying over 40% year-over-year growth.

Future Outlook

Looking ahead, AudioEye expects revenue of between $9.85 million and $10.0 million for the second quarter of 2025 and between $41.0 million and $42.0 million for the full year 2025. The company also projects adjusted EBITDA of between $1.9 million and $2.0 million for the second quarter and between $9.0 million and $10.0 million for the full year. Adjusted EPS is expected to be between $0.15 and $0.16 per share for the second quarter and between $0.70 and $0.80 per share for the full year.

SEC Filing: AUDIOEYE INC [ AEYE ] - 8-K - Apr. 29, 2025