AudioEye, Inc. reported its financial results for the first quarter of 2025, revealing a revenue increase of 20% year-over-year, reaching $9.7 million compared to $8.1 million in the same period of 2024. The company's gross profit also saw a significant rise, climbing to $7.7 million from $6.3 million, marking a 22% increase. However, AudioEye recorded a net loss of $1.5 million, which is a 77% increase from the net loss of $829,000 reported in the first quarter of 2024. The increase in losses was attributed to higher operating expenses, particularly in general and administrative costs, which surged by 45% due to increased litigation expenses and transaction costs related to acquisitions.

In terms of operational metrics, AudioEye's customer base grew to approximately 119,000, a 6% increase from 112,000 customers a year earlier. The company’s Annual Recurring Revenue (ARR) reached approximately $37.1 million, reflecting a 16% year-over-year growth. Revenue from the Partner and Marketplace channel increased by 17%, while the Enterprise channel saw a more substantial growth of 26%. The company continues to focus on expanding its digital accessibility solutions, which help organizations comply with accessibility standards.

Strategically, AudioEye completed the acquisition of ADA Site Compliance in September 2024, which is expected to enhance its service offerings and customer relationships. The acquisition was valued at approximately $7 million and included a mix of cash, promissory notes, and contingent consideration. The integration of ADA Site Compliance is anticipated to drive further revenue growth as existing customers are migrated to AudioEye’s products. Additionally, the company has adopted a share repurchase program authorizing the buyback of up to $12.5 million of its common stock, although no shares have been repurchased under this program to date.

Financially, AudioEye's current assets increased to $15.4 million as of March 31, 2025, up from $12.1 million at the end of 2024, primarily due to a new $12 million term loan secured with Western Alliance Bank. This loan was utilized to pay off a previous $7 million term loan, resulting in a net increase in cash and cash equivalents to $8.3 million. The company’s total liabilities also rose to $25.2 million, up from $20.3 million, largely due to the new debt obligations.

Looking ahead, AudioEye remains focused on product innovation and expanding its market presence. The company anticipates that its strategic initiatives, including the integration of ADA Site Compliance and the continued growth of its customer base, will contribute positively to its financial performance in the upcoming quarters. However, management cautioned that future results may be influenced by market conditions and the successful execution of its business strategies.

About AUDIOEYE INC

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