AudioEye (AEYE) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 and full-year 2024 revenue, gross margins, Adjusted EBITDA, and free cash flow, marking the 36th consecutive period of record revenue and significant operational improvements since 2019.

• Continued investment in AI-driven product suite, with automated detection identifying 500% more accessibility issues than competitors.

• Expanded European presence in anticipation of the European Accessibility Act, with new hires and plans for further growth.

• No impact from U.S. federal administration changes; demand remains strong, driven by private litigation and regulatory clarity.

• Welcomed Jim Hawkins to the board, bringing extensive growth and operational experience.

Financial highlights

• Q4 2024 revenue reached $9.7 million, up 24% year-over-year and 9% sequentially; full-year revenue grew 12% to $35.2 million.

• Q4 gross margin improved to 80%; full-year gross margin was 79%.

• Q4 Adjusted EBITDA was $2.3 million, up from $1.3 million in Q4 2023; full-year Adjusted EBITDA was $6.7 million, up from $1.3 million in 2023.

• Q4 net loss was $1.5 million ($0.12/share), full-year net loss $4.3 million ($0.36/share), both improved from prior year.

• Annual recurring revenue (ARR) at year-end was $36.6 million, up 17% year-over-year.

Outlook and guidance

• Q1 2025 revenue guidance: $9.7–$9.8 million; Adjusted EBITDA: $1.85–$1.95 million; Adjusted EPS: $0.14–$0.16.

• Full-year 2025 revenue guidance: $41–$42 million (18% growth at midpoint); Adjusted EBITDA: $9–$10 million (41% growth at midpoint); Adjusted EPS: $0.70–$0.80.

• Acceleration expected in H2 2025 from EU and continued U.S. demand.

• Company expects to remain a Rule of 40 company.