Audioeye, Inc. (AEYE) Tops Q4 EPS by 23c, Revenues Beat; Reiterates FY21 Revenues Outlook

Audioeye, Inc. (NASDAQ: AEYE) reported Q4 EPS of ($0.09), $0.23 better than the analyst estimate of ($0.32). Revenue for the quarter came in at $5.6 million versus the consensus estimate of $5.5 million.

Fourth Quarter 2020 Financial Results

• Total revenue increased 57% to a record $5.6M from $3.6M in the same prior year period.
• Monthly Recurring Revenue (MRR) as of December 31, 2020 increased 54% to a record $1.9M from $1.2M as of December 31, 2019.
• Gross profit increased to a record $4.1M (73% of total revenue) from $2.4M (66% of total revenue) in the same prior year period. The 74% increase in gross profit was primarily due to increased efficiencies as the Company continues to improve and expand the level of automation.
• Total operating expenses increased 84% to $7.1M from $3.9M in the same prior year period. A primary driver of the increase was non-cash equity-based compensation costs of $2.1M in Q4 compared to $0.2M in the prior year quarter.
• Net loss available to common stockholders was $3.0M, or $(0.30) per share, compared to $1.4M, or $(0.16) per share, in the same prior year period.
• Non-GAAP net loss improved to $0.9M, or $(0.09) per share, compared to the same prior year period of $1.3M, or $(0.14) per share. The non-GAAP earnings and EPS reflects adjustment primarily for stock-based compensation as well as interest expense primarily related to debt issuance.
• At quarter-end, the Company had $9.1M in cash, compared to $2.0M on December 31, 2019.

AudioEye Interim CEO David Moradi said, "We increased revenue 90% year over year to a record $20.5M for 2020 and ended the year with record MRR of about $1.9M and approximately 32,000 customers. We also expanded our gross margins to 73% in the fourth quarter from 66% in the prior year, underscoring our ability to create leverage in our operations as more customers come online. We have also bolstered our balance sheet by raising over $14M in cash through our ATM program. It is our expectation to generate revenue for the year of $30M - $32M and to turn cash flow positive."

"Operationally, we have continued to strengthen our senior leadership team by hiring Rob Ulveling as Chief Business Officer, who comes to us from Pinterest, and Zach Okun, formerly of Facebook as Chief Product Officer. We remain excited about the market dynamics of the digital accessibility industry as a whole. We have continued to invest in our differentiated, category-leading platform to ensure that it is not only highly scalable, but that it remains the most robust and transparent solution available. The special combination of terrific market dynamics along with our superior technology and extraordinary team makes us confident that we will continue to grow both MRR and customer count as we further expand margins."

GUIDANCE:

Audioeye, Inc. sees FY2021 revenue of $30-32 million, versus the consensus of $31.79 million.

The Company is reiterating its previously stated full-year revenue guidance range of $30M to $32M. Subject to ongoing economic conditions, management expects the Company to grow MRR, increase gross margins and turn cash flow positive in 2021. The Company remains confident in its long-term growth prospects as well as the opportunities in the digital accessibility industry.

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

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