Audioeye, Inc. (NASDAQ: AEYE) reported Q4 EPS of ($0.16), $0.14 better than the analyst estimate of ($0.30). Revenue for the quarter came in at $3.6 million versus the consensus estimate of $3.14 million.

Fourth Quarter 2019 Financial Results

• Bookings increased 90% to $6.6M from $3.5M in the same year-ago period. The increase in bookings was primarily due to strength in the Company\'s enterprise channel and execution against the current sales pipeline as well as improved performance within the Company\'s vertical partner channel through deeper penetration in existing customers.
• Total revenue increased 100% to a record $3.6M from $1.8M in the same period a year ago. The increase in revenue was primarily due to continued growth in the Company\'s vertical partner channel and strength in renewals, upsells and bookings in its enterprise sales business.
• Gross profit increased 127% to $2.4M (~66% of total revenue) from $1M (~58% of total revenue) in the same year-ago period. The increase in gross profit and gross margin was primarily due to increased efficiencies being realized as the Company continues to improve and expand the level of automation in its remediations as well as an increase in revenues.
• Total operating expenses increased 92% to $3.9M from $2.1M in the same year-ago period. The increase in total operating expenses was primarily due to increases in sales and marketing expenses as well as research and development and general and administrative expenses.
• Net loss available to common stockholders was $1.4M, or $(0.16) per share, compared to $1.4M, or $(0.19) per share, in the same year-ago period. The greater net loss was primarily due to continued investments to support scalable and profitable long-term growth.
• At quarter-end, the Company had $2M in cash, compared to $5.7M at December 31, 2018, and no debt.
• Deferred revenue increased 82% to $5.5M from $3M in the fourth quarter of 2018.
• Contracts in excess of revenue and deferred revenue increased 128% to $17.3M from $7.6M in the same period last year.
• As of December 31, 2019, total customer count had grown to over 6,800 customers, which was a 95% increase compared to the prior quarter and a more than 600% increase compared to the fourth quarter of 2018.
• As of December 31, 2019, monthly recurring revenue (MRR) was approximately $1.2M, which was an increase of 20% compared to approximately $997K at September 30, 2019.

Management Commentary

AudioEye Executive Chairman Carr Bettis said, "Q4 was a great finish to what ended up being another year of tremendous growth for our business. Financially, we achieved our sixteenth consecutive quarter of record revenue and produced $10.8M for the year, a 90% increase over 2018 and also another record. During the fourth quarter, we also expanded our margins to 66% from 58% in Q4 last year, underscoring our ability to create leverage in our operations as more customers come online. Going forward, and absent other macroeconomic market changes, as we continue taking advantage of the automation and increased efficiencies we've built into our onboarding processes across our enterprise and vertical partner channels, it is our current expectation to be cash flow positive in 2021.

"Operationally, we nearly doubled our customer count sequentially for the second straight quarter to over 6,800 businesses and, as of today, have grown to more than ten times our size when compared to the end of 2018. We have a massively untapped market just within our own customer base, and with our recent launch of the AudioEye Digital Marketplace, coupled with the initial rollout of our platform partnership strategy, our accelerated customer growth should continue for the foreseeable future. Over the past year, we've solidified our senior leadership team, made tremendous progress within our existing business channels, dramatically expanded our total addressable market, and fulfilled our promise to make comprehensive digital accessibility solutions available for all constituencies. We remain incredibly confident in our long-term growth prospects as well as the opportunities in the digital accessibility industry as a whole."

Financial Outlook

AudioEye has historically provided year-ahead annual bookings and revenue guidance. Going forward, its focus will be on growing MRR as its updated leading financial metric. The Company remains confident in its long-term growth prospects as well as the opportunities in the digital accessibility industry as a whole. Both the board and management remain focused on driving revenue and bookings growth to support the long-term health of its business. Going forward, the Company will continue to re-evaluate the growth and predictability of its operating performance with respect to providing financial forecasts.

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