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AudioEye Stories File Fourth Quarter and Full Yr 2021 Outcomes

TUCSON, Ariz., March 10, 2022 /PRNewswire/ — AudioEye, Inc. (NASDAQ: AEYE), the industry-leading digital accessibility platform delivering web site accessibility compliance to companies of all sizes, reported monetary outcomes for the fourth quarter and full yr ended December 31, 2021.

“As famous in our preliminary outlook for fourth-quarter outcomes, we’re happy to substantiate that we achieved income on the excessive finish of our steering vary of $6.5 million, representing accelerated progress from prior quarters,” stated David Moradi, CEO of AudioEye. “Our sturdy outcomes present that AudioEye’s hybrid strategy, which pairs industry-leading automation and human-assisted expertise, resonates with each new and current clients, filling the market hole for an reasonably priced and scalable accessibility answer.”

“We’re excited to announce the acquisition of the Bureau of Web Accessibility (“BoIA”). The acquisition of BoIA provides a key dimension to our product suite for these clients preferring to repair accessibility points on the supply, giving us an end-to-end answer for all clients of their accessibility journey.”

Fourth Quarter 2021 Monetary Outcomes

  • Complete income elevated 16% to a document $6.5M from $5.6M in the identical prior yr interval.
  • Month-to-month Recurring Income (MRR) as of December 31, 2021 elevated 16% to a document $2.2M from $1.9M as of December 31, 2020.
  • Gross revenue elevated to a document $4.8M (74% of whole income) from $4.1M (73% of whole income) in the identical prior yr interval. As in earlier durations, the rise in gross revenue was primarily on account of continued recurring income progress and continued enchancment in automation in product choices.
  • Complete working bills elevated to $9.8M from $7.1M in the identical prior yr interval. The rise in working bills was due primarily to will increase in analysis and improvement and gross sales and advertising and marketing bills because the Firm continues funding to construct a best-in-class product and assist scalable and worthwhile long-term progress.
  • Internet loss accessible to widespread stockholders was $5.0M or $(0.44) per share, in comparison with $3.0M or $(0.30) per share in the identical prior yr interval. The larger internet loss was primarily as a result of improve in working bills mentioned above.
  • Non-GAAP internet loss elevated to $1.8M or $(0.16) per share, in comparison with the identical prior yr interval of $0.9M or $(0.09) per share. The non-GAAP internet loss and EPS efficiency displays changes primarily for stock-based compensation expense and patent litigation expense.
  • At quarter finish, the Firm had $19.0M in money, in comparison with $9.1M on December 31, 2020.

Full Yr 2021 Monetary Outcomes

  • Full yr 2021 income elevated 20% to a document $24.5M from $20.5M in 2020.
  • Gross revenue elevated to $18.4M (75% of whole income) from $14.5M (71% of whole income) in 2020.
  • Complete working bills elevated 57% to $33.9M from $21.6M in 2020. The rise in whole working expense was primarily pushed by investments in analysis and improvement ($4.1M improve, or 331%) and gross sales and advertising and marketing ($6.1M improve, or 73%). Common & administrative bills additionally elevated by $2.0M, or 17% from the prior yr interval.
  • Internet loss accessible to widespread stockholders was $14.2M or $(1.29) per share, in comparison with $7.2M or $(0.77) per share in 2020 primarily as a result of objects famous above.
  • Non-GAAP internet loss elevated to $5.8M or $(0.53) per share in 2021 in comparison with $2.6M or $(0.28) per share in 2020. The non-GAAP earnings and EPS displays changes for stock-based compensation, patent litigation expense and achieve on mortgage forgiveness.

Different Updates

  • In January 2022, AudioEye appointed David Moradi as Chief Government Officer. Mr. Moradi has served as Interim CEO of AudioEye for the previous 18 months.
  • Continued to develop the shopper roster to roughly 82,000 clients as of December 31, 2021, representing a rise of roughly 156% over December 31, 2020.
  • In December 2021, AudioEye acquired Sq. ADA, bringing net accessibility expertise to Squarespace customers.
  • In This fall 2021, AudioEye renewed a major contract with a worldwide HR and payroll software program and repair firm and signed a significant company and a big monetary establishment.
  • WP Engine has chosen AudioEye as a digital accessibility expertise and providers associate, which is able to assist house owners of greater than 1.5 million WordPress websites present accessible digital experiences to all their customers.
  • On March 9, 2022, the Firm acquired the Bureau of Web Accessibility, a number one automated testing platform mixed with a seamless information for web site house owners and builders to repair accessibility points on the supply.
  • Administration has deemed the Firm to have efficient disclosure controls and procedures and inner controls of economic reporting, in compliance with SOX 404, as of December 31, 2021.

Monetary Outlook
The Firm expects income to be between $6.7M and $6.9M within the first quarter, representing yr over yr progress of 17% on the midpoint. 

Convention Name Info
AudioEye administration will host the convention name, adopted by a query and reply interval.

Date: Thursday, March 10, 2022
Time: 4:30 p.m. Japanese time (1:30 p.m. Pacific time)
U.S. dial-in quantity: 1-855-327-6837
Worldwide quantity: 1-631-891-4304

Please name the convention phone quantity 5-10 minutes previous to the beginning time. An operator will register your identify and group. You probably have any issue connecting with the convention name, please contact Gateway Investor Relations at 1-949-574-3860.

The convention name can even be webcast reside and accessible for replay, which might be accessible by way of the investor relations part of the corporate’s web site. The audio recording will stay accessible by way of the investor relations part of the corporate’s web site for 90 days.

A telephonic replay of the convention name can even be accessible after 7:30 p.m. Japanese time at the moment by March 17, 2022.

Toll-free replay quantity: 1-844-512-2921
Worldwide replay quantity: 1-412-317-6671
Replay ID: 10018308

About AudioEye
AudioEye is an industry-leading digital accessibility platform delivering ADA and WCAG compliance at scale. By combining easy-to-use expertise and material experience, AudioEye helps firms and content material creators remedy each facet of net accessibility–from discovering and resolving points to navigating authorized compliance, to ongoing monitoring and maintenance. Trusted by the FCC, ADP, SSA, Samsung, and others, AudioEye delivers automated remediations and steady monitoring for accessibility points with out making elementary modifications to web site structure, supply code, or browser-based instruments. Be a part of us on our mission to eradicate limitations to digital entry, go to www.audioeye.com.

Ahead-Trying Statements
Any statements on this press launch about AudioEye’s expectations, beliefs, plans, aims, prospects, monetary situation, assumptions or future occasions or efficiency usually are not historic details and are “forward-looking statements” as that time period is outlined beneath the federal securities legal guidelines. Ahead-looking statements are sometimes, however not all the time, made by the usage of phrases or phrases comparable to “consider”, “anticipate”, “ought to”, “assured”, “intend”, “plan”, “will”, “expects”, “estimates”, “initiatives”, “positioned”, “technique”, “outlook” and related phrases. You must learn the statements that comprise these kind of phrases fastidiously. Such forward-looking statements contained herein embody, however usually are not restricted to, statements concerning anticipated contributions from new gross sales channels, long-term progress prospects, alternatives within the digital accessibility {industry}, our income and MRR steering, and our expectation of investments in advertising and marketing and gross sales. These statements are topic to quite a lot of dangers, uncertainties and different components that might trigger precise outcomes to vary materially from what’s expressed or implied in such forward-looking statements, together with the variability of AudioEye’s income and monetary efficiency; dangers related to our new platform and gross sales channels; product improvement and technological modifications; the acceptance of AudioEye’s merchandise within the market by current and potential future clients; competitors; inherent uncertainties and prices related to litigation; common financial situations; and uncertainties concerning the affect on our enterprise and the general financial system from the coronavirus (COVID-19) outbreak. These and different dangers are described extra totally in AudioEye’s filings with the Securities and Change Fee (the “SEC”), together with AudioEye’s Annual Report on Kind 10-Ok for the yr ended December 31, 2020 filed with the SEC on March 11, 2021 and in subsequent filings with the SEC. There could also be occasions sooner or later that AudioEye shouldn’t be capable of predict precisely or over which AudioEye has no management. Ahead-looking statements replicate administration’s view as of the date of this press launch, and AudioEye urges you to not place undue reliance on these forward-looking statements. AudioEye doesn’t undertake any obligation to replace such forward-looking statements to replicate occasions or uncertainties after the date hereof. Because of rounding, numbers offered all through this doc might not add up exactly to the totals offered and percentages might not exactly replicate absolutely the figures.

About Key Working Metrics
We contemplate month-to-month recurring income (“MRR”) as a key working metric and a key indicator of our general enterprise. We additionally use MRR as (i) one of many major strategies for planning and forecasting general expectations and for evaluating, on not less than a quarterly and annual foundation, precise outcomes towards such expectations; and (ii) as a efficiency metric for sure government stock-based compensation awards.

We handle clients by two major channels, Enterprise and Accomplice and Market. Enterprise channel consists of our bigger clients and organizations, together with these with non-platform customized web sites, who usually interact straight with AudioEye gross sales personnel for customized pricing and options. This channel additionally consists of federal, state and native authorities companies. The Accomplice and Market channel consists of our CMS companions, platform & company companions, approved resellers and our market. This channel serves small and medium sized companies who’re on a associate or reseller’s web-hosting platform or who buy an AudioEye answer from our market.

We outline MRR because the sum of (i) for our Enterprise channel, the overall of the typical month-to-month recurring payment quantity beneath every energetic paid contract on the date of willpower, plus (ii) for our Accomplice and Market channel, the acknowledged month-to-month payment quantity for all paying clients on the date of willpower, in every case, assuming no modifications to the subscription. This willpower consists of each annual and month-to-month contracts for recurring merchandise. A few of our contracts are cancelable, which can affect future MRR. MRR excludes income from our PDF remediation providers enterprise and Cellular App report enterprise.

Use of Non-GAAP Monetary Measures
Sometimes, we assessment adjusted monetary measures that help us in evaluating our working efficiency constantly over time, as such measures take away the affect of sure objects, as relevant, comparable to our capital construction (primarily curiosity fees), objects exterior the management of the administration crew (taxes), and bills that don’t relate to our core operations, together with transaction-related bills and different prices which are anticipated to be non-recurring, comparable to severance associated to strategic shift. As a way to present traders with larger perception, and permit for a extra complete understanding of the data utilized in our monetary and operational decision-making, the Firm has supplemented the Monetary Statements offered on a GAAP foundation on this Annual Report on Kind 10-Ok with the next non-GAAP monetary measures: Non-GAAP earnings (loss) and Non-GAAP earnings (loss) per diluted share.

These non-GAAP monetary measures have limitations as analytical instruments and shouldn’t be thought-about in isolation or as an alternative to evaluation of Firm outcomes as reported beneath GAAP. The Firm compensates for such limitations by relying totally on our GAAP outcomes and utilizing non-GAAP monetary measures solely as supplemental information. We additionally present a reconciliation of non-GAAP to GAAP measures used. Buyers are inspired to fastidiously assessment this reconciliation. As well as, as a result of these non-GAAP measures usually are not measures of economic efficiency beneath GAAP and are vulnerable to various calculations, these measures, as outlined by us, might differ from and is probably not similar to equally titled measures utilized by different firms.

We outline: (i) Non-GAAP earnings (loss) as internet earnings (loss), much less non-cash valuation changes to liabilities, plus curiosity expense, plus stock-based compensation expense, plus sure litigation expense, plus sure severance expense, plus loss on impairment of long-lived belongings, plus loss on disposal of property and gear, and fewer achieve on mortgage forgiveness; and (ii) Non-GAAP earnings (loss) per diluted share as internet earnings (loss) per diluted widespread share, much less non-cash valuation changes to liabilities, plus curiosity expense, plus stock-based compensation expense, plus sure litigation expense, plus sure severance expense, plus loss on impairment of long-lived belongings, plus loss on disposal of property and gear, and fewer achieve on mortgage forgiveness, every on a per share foundation. Non-GAAP earnings per diluted share would come with incremental shares within the share rely which are thought-about anti-dilutive in a GAAP internet loss place. Nonetheless, no incremental shares apply when there’s a Non-GAAP loss per diluted share, as is the case for the durations offered on this Annual Report on Kind 10-Ok.

Non-GAAP earnings (loss) and Non-GAAP earnings (loss) per diluted share are used to facilitate a comparability of our working efficiency on a constant foundation from interval to interval and supply for a extra full understanding of things and developments affecting our enterprise than GAAP measures alone. The entire objects adjusted within the Non-GAAP earnings (loss) to internet loss and the associated per share calculations are both recurring non-cash objects, or objects that administration doesn’t contemplate in assessing our on-going working efficiency. Within the case of the non-cash objects, comparable to stock-based compensation expense and valuation changes to belongings and liabilities, administration believes that traders might discover it helpful to evaluate our comparative working efficiency as a result of the measures with out such objects are anticipated to be much less vulnerable to variances in precise efficiency ensuing from bills that don’t relate to our core operations and are extra reflective of different components that have an effect on working efficiency. Within the case of things that don’t relate to our core operations, administration believes that traders might discover it helpful to evaluate our working efficiency if the measures are offered with out these things as a result of their monetary affect doesn’t replicate ongoing working efficiency.

Non-GAAP earnings (loss) shouldn’t be a measure of liquidity beneath GAAP, or in any other case, and isn’t a substitute for money movement from persevering with working actions, regardless of the benefits concerning the use and evaluation of those measures as talked about above. Non-GAAP earnings (loss) and Non-GAAP earnings (loss) per diluted share, as disclosed on this Annual Report on Kind 10-Ok, have limitations as analytical instruments, and you shouldn’t contemplate these measures in isolation or as an alternative to evaluation of our outcomes as reported beneath GAAP; nor are these measures meant to be measures of liquidity or free money movement for our discretionary use. 

To correctly and prudently consider our enterprise, we encourage readers to assessment the GAAP monetary statements included elsewhere on this press launch, and never depend on any single monetary measure to guage our enterprise. Reconciliations of Non-GAAP earnings (loss) to internet loss, probably the most straight comparable GAAP-based measure, in addition to Non-GAAP earnings (loss) per diluted share to internet loss per diluted share, probably the most straight comparable GAAP-based measure, are included on this press launch. We strongly urge readers to assessment these reconciliations, together with the consolidated monetary statements included elsewhere on this press launch. 

Company Contact:
AudioEye, Inc.
Dr. Carr Bettis, Government Chairman
[email protected]

Investor Contact:
Matt Glover or Tom Colton
[email protected]
(949) 574-3860

AUDIOEYE, INC.

STATEMENTS OF OPERATIONS




Yr ended December 31,


(in 1000’s, besides per share information)


2021



2020


Income


$

24,503



$

20,475











Price of income



6,121




5,961











Gross revenue



18,382




14,514











Working bills:









Promoting and advertising and marketing



14,621




8,472


Analysis and improvement



5,304




1,230


Common and administrative



13,970




11,945


Complete working bills



33,895




21,647











Working loss



(15,513)




(7,133)











Different earnings (expense):









Achieve on mortgage forgiveness



1,316





Change in truthful worth of warrant legal responsibility






120


Curiosity expense



(12)




(145)


Complete different earnings (expense)



1,304




(25)











Internet loss



(14,209)




(7,158)











Dividends on Sequence A Convertible Most well-liked Inventory



(69)




(51)











Internet loss accessible to widespread stockholders


$

(14,278)



$

(7,209)











Internet loss per widespread share-basic and diluted


$

(1.29)



$

(0.77)











Weighted common widespread shares outstanding-basic and diluted



11,040




9,313


AUDIOEYE, INC.

BALANCE SHEETS

DECEMBER 31, 2021 AND 2020




December 31,



December 31,


(in 1000’s, besides per share information)


2021



2020


ASSETS









Present belongings:









Money


$

18,966



$

9,095


Accounts receivable, internet of allowance for uncertain accounts of $157 and $79,
respectively



5,311




5,096


Deferred prices, quick time period



103




152


Pay as you go bills and different present belongings



451




288


Complete present belongings



24,831




14,631











Property and gear, internet of accrued depreciation of $210 and $209,
respectively



196




91


Proper of use belongings



834




617


Deferred prices, long run



34




77


Intangible belongings, internet of accrued amortization of $5,285 and $4,328,
respectively



2,622




2,137


Goodwill



701




701


Different



95





Complete belongings


$

29,313



$

18,254











LIABILITIES AND STOCKHOLDERS’ EQUITY









Present liabilities:









Accounts payable and accrued bills


$

3,542



$

2,190


Finance lease liabilities



57




49


Working lease liabilities



415




229


Deferred income



7,068




6,328


Contingent consideration



134





Time period mortgage, quick time period






219


Complete present liabilities



11,216




9,015











Long run liabilities:









Finance lease liabilities



45




12


Working lease liabilities



450




427


Deferred income



5




83


Time period mortgage, long run






1,083


Complete liabilities



11,716




10,620











Stockholders’ fairness:









Most well-liked inventory, $0.00001 par worth, 10,000 shares approved









Sequence A Convertible Most well-liked inventory, $0.00001 par worth, 200 shares approved,
zero and 90 shares issued and excellent as of December 31, 2021 and 2020,
respectively






1


Widespread inventory, $0.00001 par worth, 50,000 shares approved, 11,435 and 10,130
shares issued and excellent as of December 31, 2021 and 2020, respectively



1




1


Further paid-in capital



88,889




64,716


Collected deficit



(71,293)




(57,084)


Complete stockholders’ fairness



17,597




7,634











Complete liabilities and stockholders’ fairness


$

29,313



$

18,254


AUDIOEYE, INC.

RECONCILIATIONS OF GAAP to NON-GAAP FINANCIAL MEASURES

(unaudited)




Three months ended



Yr ended




December 31,



December 31,


(in 1000’s, besides per share information)


2021



2020



2021



2020


Non-GAAP Earnings (Loss) Reconciliation

















Internet loss (GAAP)


$

(5,003)



$

(3,007)



$

(14,209)



$

(7,158)


Non-cash valuation changes to liabilities












(120)


Curiosity expense



1




4




12




145


Inventory-based compensation expense



2,191




2,134




7,616




4,138


Severance expense (1)












360


Litigation expense (2)



1,035







2,099





Loss on impairment of long-lived belongings









10





Loss on disposal of property and gear









12





Achieve on mortgage forgiveness









(1,316)





Non-GAAP loss


$

(1,776)



$

(869)



$

(5,776)



$

(2,635)



















Non-GAAP Earnings (Loss) per Diluted Share
Reconciliation

















Internet loss per widespread share (GAAP) — diluted


$

(0.44)



$

(0.30)



$

(1.29)



$

(0.77)


Non-cash valuation changes to liabilities












(0.01)


Curiosity expense












0.02


Inventory-based compensation expense



0.19




0.21




0.69




0.44


Severance expense (1)












0.04


Litigation expense (2)



0.09







0.19





Loss on impairment of long-lived belongings













Loss on disposal of property and gear













Achieve on mortgage forgiveness









(0.12)





Non-GAAP loss per diluted share (3)


$

(0.16)



$

(0.09)



$

(0.53)



$

(0.28)


Diluted weighted common shares (4)



11,368




10,045




11,040




9,313






(1)

Represents severance expense related to the transfer of our expertise heart to Portland, Oregon, and is unique of accrued trip paid upon termination of employment.





(2)

Represents authorized bills in direction of patent litigation pursued by the Firm.





(3)

Non-GAAP earnings per adjusted diluted share for our widespread inventory is computed utilizing the extra dilutive of the two-class technique or the if-converted technique.





(4)

The variety of diluted weighted common shares used for this calculation is identical because the weighted common widespread shares excellent share rely when the Firm reviews a GAAP and non-GAAP internet loss.

SOURCE AudioEye, Inc.

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