AudioEye Reports Record Second Quarter 2024 Results
AudioEye reported record Q2 2024 results with total revenue increasing 8% to $8.5M. Gross profit rose to $6.7M (79% of revenue) while operating expenses decreased 11% to $7.2M. Net loss improved 63% to $0.7M. Adjusted EBITDA was $1.5M compared to -$0.2M in Q2 2023. Annual Recurring Revenue (ARR) grew to $33.3M.
The company highlighted new accessibility regulations from the DOJ and HHS, an expanded partnership with Finalsite, and the launch of AudioEyeQ learning platform. Customer count increased 16% to 121,000. AudioEye raised its full-year 2024 guidance, projecting revenue between $34.5M-$34.8M and adjusted EBITDA of $6.0M-$6.3M.
AudioEye ha riportato risultati record per il secondo trimestre del 2024, con un aumento dei ricavi totali dell'8% a $8,5 milioni. L'utile lordo è salito a $6,7 milioni (79% dei ricavi) mentre le spese operative sono diminuite dell'11% a $7,2 milioni. La perdita netta è migliorata del 63% a $0,7 milioni. L'EBITDA rettificato è stato di $1,5 milioni rispetto a -$0,2 milioni nel secondo trimestre del 2023. Il reddito annuo ricorrente (ARR) è cresciuto a $33,3 milioni.
L'azienda ha evidenziato nuove normative sull'accessibilità emanate dal DOJ e dall'HHS, un'alleanza ampliata con Finalsite e il lancio della piattaforma di apprendimento AudioEyeQ. Il numero di clienti è aumentato del 16% a 121.000. AudioEye ha migliorato le sue previsioni per l'intero anno 2024, prevedendo ricavi compresi tra $34,5 milioni e $34,8 milioni e un EBITDA rettificato di $6,0 milioni a $6,3 milioni.
AudioEye informó sobre resultados récord para el segundo trimestre de 2024, con un aumento de los ingresos totales del 8% a $8.5 millones. La ganancia bruta se elevó a $6.7 millones (79% de los ingresos) mientras que los gastos operativos disminuyeron un 11% a $7.2 millones. La pérdida neta mejoró un 63% a $0.7 millones. El EBITDA ajustado fue de $1.5 millones en comparación con -$0.2 millones en el segundo trimestre de 2023. Los Ingresos Anuales Recurrentes (ARR) crecieron a $33.3 millones.
La compañía destacó nuevas regulaciones de accesibilidad del DOJ y HHS, una asociación expandida con Finalsite, y el lanzamiento de la plataforma de aprendizaje AudioEyeQ. La cantidad de clientes aumentó un 16% a 121,000. AudioEye aumentó su proyección para todo 2024, proyectando ingresos entre $34.5 millones y $34.8 millones y un EBITDA ajustado de $6.0 millones a $6.3 millones.
AudioEye는 2024년 2분기 기록적인 실적을 보고하며, 총 수익이 8% 증가하여 $8.5M에 달했습니다. 매출 총 이익은 $6.7M (매출의 79%)로 증가했으며 운영 비용은 11% 감소하여 $7.2M이 되었습니다. 순손실은 63% 개선되어 $0.7M에 달했습니다. 조정 EBITDA는 $1.5M으로, 2023년 2분기의 -$0.2M에 비해 개선되었습니다. 연간 반복 수익(ARR)은 $33.3M으로 증가했습니다.
회사는 DOJ와 HHS의 새로운 접근성 규정, Finalsite와의 파트너십 확장, AudioEyeQ 학습 플랫폼 출시를 강조했습니다. 고객 수는 16% 증가하여 121,000명이 되었습니다. AudioEye는 2024년 전체 연도 가이던스를 상향 조정하여, 수익을 $34.5M에서 $34.8M 사이, 조정 EBITDA를 $6.0M에서 $6.3M로 예상하고 있습니다.
AudioEye a annoncé des résultats record pour le deuxième trimestre 2024, avec un chiffre d'affaires total en hausse de 8% à 8,5 millions de dollars. Le bénéfice brut a atteint 6,7 millions de dollars (79% des revenus), tandis que les dépenses d'exploitation ont diminué de 11% à 7,2 millions de dollars. La perte nette s'est améliorée de 63% à 0,7 million de dollars. Le bénéfice avant intérêts, impôts, dépréciation et amortissement ajusté (EBITDA) s'élevait à 1,5 million de dollars contre -0,2 million de dollars au deuxième trimestre 2023. Les revenus annuels récurrents (ARR) ont atteint 33,3 millions de dollars.
L'entreprise a souligné de nouvelles réglementations d'accessibilité émises par le DOJ et le HHS, un partenariat élargi avec Finalsite, et le lancement de la plateforme d'apprentissage AudioEyeQ. Le nombre de clients a augmenté de 16% pour atteindre 121 000. AudioEye a relevé ses prévisions pour l'année 2024, projetant un chiffre d'affaires compris entre 34,5 millions et 34,8 millions de dollars et un EBITDA ajusté de 6,0 millions à 6,3 millions de dollars.
AudioEye meldete Rekordzahlen für das zweite Quartal 2024 mit einem Anstieg des Gesamtumsatzes um 8% auf 8,5 Millionen Dollar. Der Bruttogewinn stieg auf 6,7 Millionen Dollar (79% des Umsatzes), während die Betriebskosten um 11% auf 7,2 Millionen Dollar sanken. Der Nettoverlust verbesserte sich um 63% auf 0,7 Millionen Dollar. Das angepasste EBITDA betrug 1,5 Millionen Dollar im Vergleich zu -0,2 Millionen Dollar im zweiten Quartal 2023. Der wiederkehrende Jahresumsatz (ARR) wuchs auf 33,3 Millionen Dollar.
Das Unternehmen hob neue Zugänglichkeitsvorschriften des DOJ und HHS hervor, eine erweiterte Partnerschaft mit Finalsite und die Einführung der Lernplattform AudioEyeQ. Die Kundenzahl stieg um 16% auf 121.000. AudioEye erhöhte seine Gesamtjahresprognose für 2024 und erwartet einen Umsatz von 34,5 Millionen bis 34,8 Millionen Dollar sowie ein angepasstes EBITDA von 6,0 Millionen bis 6,3 Millionen Dollar.
- Record Q2 revenue of $8.5M, up 8% year-over-year
- Gross profit increased to $6.7M (79% of revenue) from $6.0M (77% of revenue)
- Net loss improved 63% to $0.7M from $2.0M
- Adjusted EBITDA turned positive at $1.5M compared to -$0.2M in Q2 2023
- ARR grew to $33.3M, up $1.3M sequentially
- Customer count increased 16% to 121,000
- Raised full-year 2024 guidance for revenue and adjusted EBITDA
- Cash decreased to $5.1M from $7.0M in the previous quarter
Insights
AudioEye's Q2 2024 results demonstrate solid financial performance and growth. The company reported its 34th consecutive quarter of record revenue, with total revenue increasing
Key financial highlights include:
- Gross profit increased to
$6.7 million (79% of revenue), up from$6.0 million (77% of revenue) in Q2 2023. - Operating expenses decreased by
11% to$7.2 million , primarily due to increased efficiency in sales and marketing. - Net loss improved by
63% to$0.7 million , or$(0.06) per share. - Adjusted EBITDA turned positive at
$1.5 million , compared to a loss of$0.2 million in Q2 2023. - Annual Recurring Revenue (ARR) grew to
$33.3 million , a sequential increase of$1.3 million .
The company's improved financial performance and strong business momentum have led management to increase guidance for full-year 2024. The revised outlook projects revenue between
While the cash position decreased to
Overall, AudioEye's financial results reflect a company transitioning towards profitability while maintaining strong top-line growth. The focus on operational efficiency and the expanding market for digital accessibility solutions position the company well for continued growth and margin expansion.
The recent regulatory developments in digital accessibility present significant opportunities for AudioEye. Two key regulatory changes stand out:
- In April 2024, the Department of Justice issued an approved rule for updated regulations under Title II of the ADA. This mandates state and local government entities to ensure their websites and mobile apps are accessible to people with disabilities, following WCAG 2.1, Level AA standards by April 2026 or 2027, depending on entity size.
- In May 2024, the Department of Health and Human Services (HHS) issued a final rule under Section 504 of the Rehabilitation Act. This rule requires web content and mobile applications provided by HHS-funded organizations to comply with WCAG 2.1, Level AA standards by May 2026 or 2027, based on organization size.
These regulatory changes significantly expand the potential market for AudioEye's services. Government entities, healthcare providers and related organizations will need to ensure compliance with these new standards, likely driving increased demand for digital accessibility solutions.
The timing of these regulations is particularly favorable for AudioEye. With implementation deadlines set for 2026 and 2027, organizations have a window to achieve compliance. This urgency could accelerate adoption of AudioEye's services in the coming years.
Furthermore, these regulations may set a precedent for other sectors, potentially leading to broader adoption of digital accessibility standards across industries. This could create a ripple effect, expanding AudioEye's addressable market beyond government and healthcare sectors.
However, it's important to note that these regulatory changes may also attract new competitors to the market. AudioEye will need to leverage its established position and continue innovating to maintain its competitive edge in an potentially expanding market.
AudioEye's market position appears to be strengthening, as evidenced by several key indicators in their Q2 2024 results:
- Customer count increased by
16% year-over-year to approximately 121,000, indicating strong market penetration and customer acquisition. - The expansion of partnership with Finalsite, a leading K-12 school community relationship management platform, opens up significant opportunities in the education sector.
- The launch of AudioEyeQ, a free, on-demand accessibility education platform, demonstrates a strategic move to increase awareness and potentially drive future sales.
The digital accessibility market is poised for substantial growth, driven by regulatory changes and increasing awareness of the importance of web accessibility. AudioEye's focus on both enterprise clients and the partner/marketplace channel positions it well to capture this growth across various segments.
The company's ability to achieve 34 consecutive quarters of record revenue suggests a robust and expanding market demand for its services. The sequential revenue growth at an annualized rate of
However, it's important to monitor the competitive landscape. As the market expands due to regulatory pressures, new entrants may emerge, potentially challenging AudioEye's market share. The company's focus on innovation, as evidenced by the launch of AudioEyeQ, will be critical in maintaining its competitive edge.
The increase in Annual Recurring Revenue (ARR) to
Overall, AudioEye's market position appears strong, with significant growth potential driven by regulatory tailwinds and increasing market awareness of digital accessibility needs. The company's ability to capitalize on these opportunities while maintaining operational efficiency will be key to its future success.
Thirty-Fourth Consecutive Period of Record Revenue
"For the second quarter, sequential revenues grew at an annualized growth rate of
Second Quarter 2024 Financial Results
- Total revenue increased
8% to a record$8.5M $7.8M - Gross profit increased to
$6.7M 79% of total revenue) from$6.0M 77% of total revenue) in the same prior year period. The increase was due to revenue growth compared to the same prior year period. - Total operating expenses decreased
11% to$7.2M $8.1M - Net loss available to common stockholders improved
63% to$0.7M $(0.06) $2.0M $(0.17) - Adjusted EBITDA in the second quarter of 2024 was
$1.5M $0.12 $(0.2M )$(0.02) - Annual Recurring Revenue ("ARR") as of June 30, 2024, increased
$1.3M $33.3M $32.0M - As of June 30, 2024, the Company had
$5.1M $7.0M $1.0M
Other Updates
- In April 2024, the Department of Justice issued an approved rule for updated regulations under Title II of the ADA. These regulations mandate that state and local government entities ensure their websites and mobile apps are accessible to people with disabilities, following WCAG 2.1, Level AA technical standards beginning April 24, 2026, or April 26, 2027, depending upon the entity size.
- In May 2024, the Department of Health and Human Services (HHS) Office for Civil Rights (OCR) issued a final rule bolstering protection for individuals with disabilities under Section 504 of the Rehabilitation Act. The rule ensures that web content and mobile applications provided by organizations that receive funding from HHS, including hospitals and most doctor's offices, social service providers, nursing homes, etc. are compliant with WCAG 2.1, Level AA technical standards. Beginning May 11, 2026, organizations with 15 or more employees must ensure web content and mobile application compliance. Organizations with less than 15 employees will have until May 10, 2027.
- The Company announced an expanded partnership with Finalsite, the leading K-12 school community relationship management platform serving 7,000 clients in 115 countries worldwide, to significantly enhance digital accessibility for K-12 schools.
- In July 2024, AudioEye announced the launch of AudioEyeQ, a best-in-class accessibility learning platform offering free, on-demand accessibility education courses for anyone looking to expand their accessibility knowledge.
- Customer count increased
16% to approximately 121,000 customers as of June 30, 2024, compared to about 104,000 as of June 30, 2023. Both the Enterprise and the Partner and Marketplace channels contributed to the increase in customer count.
Financial Outlook
In the third quarter of 2024, the Company expects to generate revenue between
Based on strong results achieved year-to-date and a revised growth projection for the remainder of 2024, AudioEye management is updating its full-year financial outlook. The Company is increasing its full-year 2024 revenue guidance to between
Conference Call Information
AudioEye management will hold a conference call today, July 25, 2024 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these results, followed by a question-and-answer period.
Date: Thursday, July 25, 2024
Time: 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time)
International number: 201-689-8341
Webcast: Q224 Webcast Link
Please call the conference telephone number 5-10 minutes prior to the start time. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860.
The conference call will also be webcast live and available for replay via the investor relations section of the Company's website. The audio recording will remain available via the investor relations section of the Company's website for 90 days.
A telephonic replay of the conference call will also be available after 7:30 p.m. Eastern Time on the same day through August 8, 2024 via the following numbers:
Toll-free replay number: 877-660-6853
International replay number: 201-612-7415
Replay passcode: 13747156
About AudioEye
AudioEye exists to ensure the digital future we build is inclusive. By combining the latest AI automation technology with guidance from certified experts and direct input from the disability community, AudioEye helps ensure businesses of all sizes — including over 121,000 customers like Samsung, Calvin Klein, and Samsonite — are accessible and usable. Holding 23 US patents, AudioEye helps companies solve every aspect of digital accessibility with flexible approaches that best meet their needs. The comprehensive solution includes 24/7 accessibility monitoring, automated accessibility fixes, expert testing, developer tools, and industry-leading legal protection.
Forward-Looking Statements
Any statements in this press release about AudioEye's expectations, beliefs, plans, objectives, prospects, financial condition, assumptions or future events or performance are not historical facts and are "forward-looking statements" as that term is defined under the federal securities laws. Forward-looking statements are often, but not always, made through the use of words or phrases such as "believe", "anticipate", "should", "confident", "intend", "plan", "will", "expects", "estimates", "projects", "positioned", "strategy", "outlook" and similar words. You should read the statements that contain these types of words carefully. Such forward-looking statements contained herein include, but are not limited to, statements regarding future cash flows of the Company, anticipated contributions from new sales channels, long-term growth prospects, opportunities in the digital accessibility industry, our revenue and ARR guidance, and our expectation of investments in marketing and sales. These statements are subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what is expressed or implied in such forward-looking statements, including the variability of AudioEye's revenue and financial performance; risks associated with our new platform, sales channels and offerings; product development and technological changes; the acceptance of AudioEye's products in the marketplace; the effectiveness of our integration efforts; competition; inherent uncertainties and costs associated with litigation; and general economic conditions. These and other risks are described more fully in AudioEye's filings with the Securities and Exchange Commission. There may be events in the future that AudioEye is not able to predict accurately or over which AudioEye has no control. Forward-looking statements reflect management's view as of the date of this press release, and AudioEye urges you not to place undue reliance on these forward-looking statements. AudioEye does not undertake any obligation to update such forward-looking statements to reflect events or uncertainties after the date hereof. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.
About Key Operating Metrics
We consider annual recurring revenue ("ARR") as a key operating metric and a key indicator of our overall business. We also use ARR as one of the primary methods for planning and forecasting overall expectations and for evaluating, on at least a quarterly and annual basis, actual results against such expectations.
We manage customers through two primary channels, Enterprise and Partner and Marketplace. Enterprise channel consists of our larger customers and organizations, including those with non-platform custom websites, who generally engage directly with AudioEye sales personnel for custom pricing and solutions. This channel also includes federal, state and local government agencies. The Partner and Marketplace channel consists of our CMS partners, platform & agency partners, authorized resellers and our marketplace. This channel serves small and medium sized businesses who are on a partner or reseller's web-hosting platform or who purchase an AudioEye solution from our marketplace.
We define ARR as the sum of (i) for our Enterprise channel, the total of the annualized recurring fee at the date of determination under each active contract, plus (ii) for our Partner and Marketplace channel, the annual or monthly recurring fee for all active customers at the date of determination, in each case, assuming no changes to the subscription, multiplied by 12 if applicable. Recurring fees are defined as revenues expected to be generated from services typically offered as a subscription service such as our automation and platform, periodic auditing, human-assisted technological remediations, legal support and professional service offerings and other services that reoccur on a multi-year contract. This determination includes both annual and monthly contracts for recurring products. Some of our contracts are terminable prior to the expected term, which may impact future ARR. ARR excludes non-recurring fees, which are defined as revenue expected to be generated from services typically not offered as a subscription service such as our PDF remediation services business, one-time mobile application reports, and other miscellaneous services that are offered as non-subscription services or are expected to be one-time in nature.
Use of Non-GAAP Financial Measures
From time to time, we review adjusted financial measures that assist us in comparing our operating performance consistently over time, as such measures remove the impact of certain items, as applicable, such as our capital structure (primarily interest charges), items outside the control of the management team (taxes), and expenses that do not relate to our core operations, including significant transaction and litigation-related expenses and other costs that are expected to be non-recurring. In order to provide investors with greater insight and allow for a more comprehensive understanding of the information used in our financial and operational decision-making, the Company has supplemented the consolidated financial statements presented on a GAAP basis in this press release with the following non-GAAP financial measures: Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted earnings (loss) per diluted share.
These non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of Company results as reported under GAAP. The Company compensates for such limitations by relying primarily on our GAAP results and using non-GAAP financial measures only as supplemental data. We also provide a reconciliation of non-GAAP to GAAP measures used. Investors are encouraged to carefully review this reconciliation. In addition, because these non-GAAP measures are not measures of financial performance under GAAP and are susceptible to varying calculations, these measures, as defined by us, may differ from and may not be comparable to similarly titled measures used by other companies.
Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Earnings (Loss) per Diluted Share
We define: (i) Adjusted EBITDA as net income (loss), plus (less) interest expense (income), plus depreciation and amortization expense, plus stock-based compensation expense, plus non-cash valuation adjustment to contingent consideration, plus certain litigation expense, and plus loss on disposal or impairment of long-lived assets; (ii) Adjusted EBITDA margin as Adjusted EBITDA as a percentage of GAAP revenue; and (iii) Adjusted earnings (loss) per diluted share as net income (loss) per diluted common share, plus (less) interest expense (income), plus depreciation and amortization expense, plus stock-based compensation expense, plus non-cash valuation adjustment to contingent consideration, plus certain litigation expense, and plus loss on disposal or impairment of long-lived assets, each on a per share basis. Adjusted earnings per diluted share would include incremental shares in the share count that are considered anti-dilutive in a GAAP net loss position. However, no incremental shares apply when there is an Adjusted loss per diluted share, as is the case for some of the periods presented in this press release.
Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted earnings (loss) per diluted share are used to facilitate a comparison of our operating performance on a consistent basis from period to period and provide for a more complete understanding of factors and trends affecting our business than GAAP measures alone. All of the items adjusted in the Adjusted EBITDA to net loss and the Adjusted earnings (loss) per share calculations are either recurring non-cash items, or items that management does not consider in assessing our on-going operating performance. In the case of the non-cash items, such as stock-based compensation expense and valuation adjustments to assets and liabilities, management believes that investors may find it useful to assess our comparative operating performance because the measures without such items are expected to be less susceptible to variances in actual performance resulting from expenses that do not relate to our core operations and are more reflective of other factors that affect operating performance. In the case of items that do not relate to our core operations, management believes that investors may find it useful to assess our operating performance if the measures are presented without these items because their financial impact does not reflect ongoing operating performance.
Adjusted EBITDA is not a measure of liquidity under GAAP, or otherwise, and is not an alternative to cash flow from continuing operating activities, despite the advantages regarding the use and analysis of these measures as mentioned above. Adjusted EBITDA, Adjusted EBITDA margin, and Adjusted earnings (loss) per diluted share, as disclosed in this press release, have limitations as analytical tools, and you should not consider these measures in isolation or as a substitute for analysis of our results as reported under GAAP; nor are these measures intended to be measures of liquidity or free cash flow.
To properly and prudently evaluate our business, we encourage readers to review the consolidated GAAP financial statements included in this press release, and not rely on any single financial measure to evaluate our business. The following table sets forth reconciliations of Adjusted EBITDA to net loss, the most directly comparable GAAP-based measure, as well as Adjusted earnings (loss) per diluted share to net loss per diluted share, the most directly comparable GAAP-based measure. We strongly urge readers to review these reconciliations, along with the financial statements included in this press release.
Investor Contact:
Tom Colton
Gateway Group, Inc.
AEYE@gateway-grp.com
949-574-3860
AUDIOEYE, INC. | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
(in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenue | $ | 8,470 | $ | 7,836 | $ | 16,553 | $ | 15,608 | ||||||||
Cost of revenue | 1,764 | 1,787 | 3,525 | 3,489 | ||||||||||||
Gross profit | 6,706 | 6,049 | 13,028 | 12,119 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling and marketing | 2,971 | 3,253 | 5,974 | 6,496 | ||||||||||||
Research and development | 1,221 | 2,033 | 2,543 | 3,779 | ||||||||||||
General and administrative | 3,011 | 2,791 | 5,639 | 5,926 | ||||||||||||
Total operating expenses | 7,203 | 8,077 | 14,156 | 16,201 | ||||||||||||
Operating loss | (497) | (2,028) | (1,128) | (4,082) | ||||||||||||
Interest income (expense), net | (238) | 55 | (436) | 98 | ||||||||||||
Net loss | $ | (735) | $ | (1,973) | $ | (1,564) | $ | (3,984) | ||||||||
Net loss per common share-basic and diluted | $ | (0.06) | $ | (0.17) | $ | (0.13) | $ | (0.34) | ||||||||
Weighted average common shares outstanding-basic | 11,703 | 11,738 | 11,706 | 11,688 | ||||||||||||
AUDIOEYE, INC. | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(unaudited) | ||||||||
June 30, | December 31, | |||||||
(in thousands, except per share data) | 2024 | 2023 | ||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 5,086 | $ | 9,236 | ||||
Accounts receivable, net | 5,420 | 4,828 | ||||||
Prepaid expenses and other current assets | 1,050 | 712 | ||||||
Total current assets | 11,556 | 14,776 | ||||||
Property and equipment, net | 222 | 218 | ||||||
Right of use assets | 474 | 611 | ||||||
Intangible assets, net | 5,628 | 5,783 | ||||||
Goodwill | 4,001 | 4,001 | ||||||
Other | 123 | 106 | ||||||
Total assets | $ | 22,004 | $ | 25,495 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 2,688 | $ | 2,339 | ||||
Operating lease liabilities | 211 | 312 | ||||||
Finance lease liabilities | — | 7 | ||||||
Deferred revenue | 7,050 | 6,472 | ||||||
Contingent consideration | — | 2,399 | ||||||
Total current liabilities | 9,949 | 11,529 | ||||||
Long term liabilities: | ||||||||
Term loan, net | 6,773 | 6,727 | ||||||
Operating lease liabilities | 319 | 417 | ||||||
Deferred revenue | 1 | 10 | ||||||
Other | 105 | 105 | ||||||
Total liabilities | 17,147 | 18,788 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, | ||||||||
Common stock, | 1 | 1 | ||||||
Additional paid-in capital | 97,912 | 96,182 | ||||||
Accumulated deficit | (93,056) | (89,476) | ||||||
Total stockholders' equity | 4,857 | 6,707 | ||||||
Total liabilities and stockholders' equity | $ | 22,004 | $ | 25,495 | ||||
AUDIOEYE, INC. | ||||||||||||||||
RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
(unaudited) | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
(in thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||||||
Adjusted EBITDA Reconciliation | ||||||||||||||||
Net loss (GAAP) | $ | (735) | $ | (1,973) | $ | (1,564) | $ | (3,984) | ||||||||
Non-cash valuation adjustment to contingent | — | 159 | (12) | 214 | ||||||||||||
Interest (income) expense, net | 238 | (55) | 436 | (98) | ||||||||||||
Stock-based compensation expense | 975 | 1,031 | 1,858 | 2,149 | ||||||||||||
Litigation expense (1) | 394 | 39 | 499 | 194 | ||||||||||||
Depreciation and amortization | 596 | 577 | 1,168 | 1,103 | ||||||||||||
Loss on disposal or impairment of long-lived assets | 4 | — | 4 | 147 | ||||||||||||
Adjusted EBITDA | $ | 1,472 | $ | (222) | $ | 2,389 | $ | (275) | ||||||||
Adjusted EBITDA margin (2) | 17 | % | (3) | % | 14 | % | (2) | % | ||||||||
Adjusted Earnings (Loss) per Diluted Share | ||||||||||||||||
Net loss per common share (GAAP) — diluted | $ | (0.06) | $ | (0.17) | $ | (0.13) | $ | (0.34) | ||||||||
Non-cash valuation adjustment to contingent | — | 0.01 | — | 0.02 | ||||||||||||
Interest (income) expense, net | 0.02 | — | 0.04 | (0.01) | ||||||||||||
Stock-based compensation expense | 0.08 | 0.09 | 0.15 | 0.18 | ||||||||||||
Litigation expense (1) | 0.03 | — | 0.04 | 0.02 | ||||||||||||
Depreciation and amortization | 0.05 | 0.05 | 0.10 | 0.09 | ||||||||||||
Loss on disposal or impairment of long-lived | — | — | — | 0.01 | ||||||||||||
Adjusted earnings (loss) per diluted share (3) | $ | 0.12 | $ | (0.02) | $ | 0.20 | $ | (0.02) | ||||||||
Diluted weighted average shares (GAAP) | 11,703 | 11,738 | 11,706 | 11,688 | ||||||||||||
Includable incremental shares (Non-GAAP) (3) | 568 | — | 472 | — | ||||||||||||
Adjusted diluted shares (Non-GAAP) (4) | 12,271 | 11,738 | 12,178 | 11,688 | ||||||||||||
(1) | Represents legal expenses related primarily to non-recurring litigation. |
(2) | Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of GAAP revenue. |
(3) | Adjusted earnings per adjusted diluted share for our common stock is computed using the treasury stock method. |
(4) | The number of diluted weighted average shares used for this calculation is the same as the weighted average common shares outstanding share count when the Company reports a GAAP net loss and a negative Adjusted EBITDA. |
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SOURCE AudioEye, Inc.
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