Audioeye, Inc. (AEYE) Misses Q4 EPS by 8c, Revenues Beat; Offers FY19 Revenue Mid-Point Guidance Above Consensus

Audioeye, Inc. (NASDAQ: AEYE) reported Q4 EPS of ($0.19), $0.08 worse than the analyst estimate of ($0.11). Revenue for the quarter came in at $1.78 million versus the consensus estimate of $1.73 million.

• Total revenues increased 103% to a record $1.78 million from $876,000 in the same period a year-ago. The increase in revenues was primarily due to continued execution in direct channel as well as steady growth in the indirect channel.
• Cash contract bookings increased 124% to a record $3.50 million from $1.56 million in the same year-ago period. The increase in cash contract bookings was primarily due to execution in contract closings in the direct channel and securing a significant contract with a new indirect channel partner.
• Gross profit increased 94% to $1.04 million (58.2% of total revenues) from $536,000 (61.2% of total revenues) in the same year-ago period. The increase in gross profit was primarily due to the increase in revenues previously described. The decrease in gross profit margin was primarily due to increased payroll costs as the Company prepares for continued growth and timely implementation.
• Total operating expenses decreased 4% to $2.05 million from $2.14 million in the same year-ago period. The decrease in total operating expenses was primarily due to a decrease in stock-based compensation expense and increased efficiencies being realized as the Company continues to scale its operations.
• Net loss available to common stockholders improved to $1.44 million, or $(0.19) per share, compared to $2.78 million, or $(0.53) per share, in the same year-ago period. The improvement in net loss was primarily due to the increase in revenues and decrease in total operating expenses previously mentioned.
• At quarter-end, the Company had $5.74 million in cash and cash equivalents, compared to $1.96 million at December 31, 2017, and no debt.

Management CommentaryAudioEye Executive Chairman Carr Bettis said, "With the fourth quarter's 103% increase in revenues as compared to Q4 2017, we've now realized record revenues for the past twelve consecutive quarters, which translates to three years of consistent growth and improvement. We are off to a good start this year and believe that the new investments we are making this quarter in our sales team, lead generation, marketing and public relations will enable AudioEye to leverage our competitive advantages and continue to improve both mindshare and market share going forward."

AudioEye CEO Todd Bankofier added: "2018 was a banner year for our organization as we continued to generate substantial growth through direct sales as well as our indirect channel partnerships. More specifically, we entered 2019 with nearly 1,000 total customers and a growing number of channel partners. Our current sales pipeline is now more than double where it was just a year ago. We also have new partners coming on board to sell our Ally Managed Service and have made enhancements in our technology to be able to implement our solution on more websites in a more timely and cost-efficient manner."

GUIDANCE:

Audioeye, Inc. sees FY2019 revenue of $11-13 million, versus the consensus of $11.21 million.

For earnings history and earnings-related data on Audioeye, Inc. (AEYE) click here.

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