Companies have started releasing their financial reports for the last quarter of the previous business year. While website accessibility solution providers are not excluded, AudioEye Inc. was among the few companies that finished strong. Despite the devastating effect of COVID-19 on the global economy. The accessibility compliance brand recently reported its financial results for the fourth quarter, in the Audioeye Q4 report.
Audioeye Q4 Report
In the new Q4 report, AudioEye, Inc. increased its revenue to a record of $20.5 million for last year. Therefore ended the year with a Monthly Recurring Revenue (MRR) record of about $1.9 million –a 90% year-over-year (YOY) growth. All of the above with an astonishing record of 32,000 customers.
Interim CEO, David Moradi
The Company recorded an expansion in gross margins, which intensified its ability to create operational leverage as more customers reportedly came online. Disclosing the Company’s projections for the future, the Interim CEO, David Moradi, stated that AudioEye had raised over $14 million cash through their ATM program. Thus fostering the Company’s expectation to generate more revenue this 2021.
In David’s words,
“We increased revenue 90% year-over-year to a record $20.5million for 2020 and ended the year with a record MRR of about $1.9million and 32,000 customers approximately. Our gross margins also increased to 73 percent in Q4. Transitioning from 66 percent the prior quarter, demonstrating our ability to utilize our processes as new clients come online. We have strengthened our financial position by raising over $14 million in cash through our ATM program. We expect to generate revenue for the year of $30million to $32million and turn cash flow positive.”
What’s more, AudioEye recorded Q4 Earnings per share (EPS) of $0.09 – a 71% increase in the analyst estimate of $0.32.
AudioEye Inc. Q4 2020 financial results
- 57% increase in total revenue (from $3.6 million to $5.6 million) compared to the previous year.
- 54% increase in Monthly Recurring Revenue (MRR). From $1.2 million on December 31, 2019, to $1.9 million as of December 31, 2020.
- Increase gross profit from $2.4million (66% of total revenue) to $4.1 million (73% of total revenue) in the same previous year. Note that the increase in gross profits was borne out of increased efficiencies and higher automation implemented.
- 84% increase in total operating expenses. From $3.9 million to $7.1 million in the same previous year. The rise was a primarily for the increase in compensation costs. This translates to $2.1 million in the fourth quarter compared to $0.2 million during the last quarter. Analysis was based on non-cash equity.
- Compared to $1.4million or $0.16 per share, the net loss available to stakeholders was $3.0million or $0.30 per share in the same year period.
- Improvements in Non-GAAP net loss to $0.9million, or $(0.09) per share, compared to $1.3million, or $(0.14) in the same previous year. The non-GAAP and Earnings per Share (EPS) reflects adjustments basically for interest expense primarily related to debt assurance as well as stock-based compensation.
- The Company had %1.9million in cash at quarter-end, compared to $2.0million on December 31, 2019.
Factors for the success
Interim CEO David Moradi, describing the factors that produced this success, said, “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.
“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 the extraordinary team makes us confident that we will continue to grow both MRR and customer count as we further expand margins.”
AudioEye Inc. remains confident of continuous growth in Monthly Recurring Revenue (MRR) and customer count while expanding its margins. This is due to the industry’s current leadership strength, marketing dynamics, and commitment to providing a more robust and transparent solution to their clients.
AudioEye Inc., full-year financial results 2020
- 90% increase in total revenue from $10.8million in 2019 to a record $20.5million
- 128% increase in gross profit from $6.4million (59% of total revenue) to $14.5million (71% of total revenue)
- 53% increase in total operating expenses. From $14.2 million in 2019 to a record $21.6 million. This increase results from an increase in sales and marketing costs and higher non-cash equity compensation costs.
- $2.7million or $(0.77) net loss was available to stockholders per share, compared to $7.8million, or $(0.97) per share, in 2019
- Improvement in Non-GAAP net loss from $6.6million, or $(0.81) per share in 2019 to $2.6million, or $(0.28) per share. The non-GAAP earnings and Earnings per Share (EPS) reflect adjustments basically for stock-based compensation, severance expenses, and interest expense, including, mainly, expenses related to debt issuance.
