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 reflecting significant operational improvements since 2019.

• Revenue per employee reached over $330,000 in Q4, up from low $100,000s in 2019.

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

• Released 2025 Digital Accessibility Index, finding an average of 297 accessibility issues per page, up from 37 in 2023, across 15,000 websites.

• Expanded European presence ahead of the EU Accessibility Act, with plans for further growth in 2025 and beyond.

Financial highlights

• Q4 2024 revenue was $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 margin reached 24%; 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 improved to $4.3 million ($0.36/share) from $5.9 million in 2023.

• Q4 free cash flow was $1.9 million; full-year adjusted free cash flow was $4.9 million, up from negative $600,000 in 2023.

Outlook and guidance

• 2025 revenue guidance: $41–$42 million (18% growth at midpoint).

• 2025 Adjusted EBITDA guidance: $9–$10 million (41% growth at midpoint).

• 2025 Adjusted EPS guidance: $0.70–$0.80 per share.

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

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