AudioEye, Inc. reported its financial results for the nine months ended September 30, 2024, showing notable growth in revenue and improvements in profitability compared to the same period in the previous year. Total revenue for this period reached $25.5 million, a 9% increase from $23.4 million in 2023. The growth was driven by a 12% rise in revenue from the Partner and Marketplace channel, which accounted for approximately 58% of the annual recurring revenue (ARR), now at $36.2 million, reflecting a 19% year-over-year increase.

Gross profit for the nine months was $20.1 million, up 11% from $18.2 million in the prior year. Operating loss significantly improved to $(2.1 million), a reduction of 61% from $(5.5 million) in 2023. Similarly, net loss decreased to $(2.8 million) from $(5.3 million), marking a 48% improvement. For the third quarter alone, revenue was $8.9 million, a 14% increase from $7.8 million in the same quarter of 2023, with gross profit rising to $7.1 million.

The company’s total current assets decreased to $11.4 million from $14.8 million at the end of 2023, while total assets increased to $29.4 million from $25.5 million. Cash on hand also saw a decline, dropping to $5.5 million from $9.2 million. The accumulated deficit worsened to $(94.3 million) from $(89.5 million) at the end of 2023, although total stockholders’ equity increased to $7.4 million from $6.7 million.

AudioEye made strategic moves during this period, including the acquisition of ADA Site Compliance, LLC for approximately $7 million, which involved a cash payment of $3.4 million and additional promissory notes. The acquisition is expected to enhance AudioEye's service offerings and market position.

Operating expenses reflected a mixed trend; while selling and marketing expenses decreased by 3% due to efficiencies, general and administrative expenses rose by 11%, primarily due to transaction costs related to the acquisition and increased litigation expenses. Research and development costs decreased significantly, driven by a realignment in product and development teams.

The company also engaged in a share repurchase program, utilizing $2.02 million to repurchase shares, leaving $1.86 million available for future repurchases. Cash provided by operating activities increased due to higher revenue and cost efficiencies, while cash used in investing activities rose due to the acquisition. Overall, AudioEye demonstrated a solid performance with strategic growth initiatives and improved financial metrics.

About AUDIOEYE INC

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