AudioEye Inc. (AEYE:NASDAQ) achieved record revenue and bookings in Q4/18 and in 2018 as a whole, it announced in a news release. "AudioEye is in its strongest position to date and has a tremendous opportunity to capitalize on the market before us," Executive Chairman Carr Bettis said in the release.
The company makes the internet more accessible to people with disabilities. "Leading with technology, AudioEye identifies and resolves issues of accessibility and enhances the user experience, making digital content more accessible and more usable for more people," the company noted.
In Q4/18 the tech company generated $1.78 million in revenue, up 103% from Q4/17. Q4/18 was the 12th consecutive quarter in which it recorded topline growth. Cash contract bookings in Q4/18 also were a record high, totaling about $3.50 million and up 124% from the same period in 2017.
Full-year 2018 revenue was at its highest at $5.66 million, up 107% year over year (YOY). Cash contract bookings amounted to $11.55 million, also reflecting a YOY increase, of 83%.
As of Dec. 31, 2018, the company had $5.7 million in cash and cash equivalents.
All figures above are preliminary estimates.
CEO Todd Bankofier attributes AudioEye's growth to a few factors. One is the effect of lawsuits involving accessibility issues, which has led to a greater number of companies adopting AudioEye's solutions to become compliant. A second is more and more businesses are recognizing the value of accessible websites, a benefit to them in that it broadens their audience. "Recognition of the business ROI is being sparked by demand from end users who are letting companies and organizations know of the significant importance of accessibility to their websites," Bankofier stated.
AudioEye's several internal initiatives have also spurred bookings. "We've made refinements to our lead generation processes, which has led to expansion of our overall sales pipeline, and we’ve continued to make enhancements to the technology that underlies our solution," Bankofier stated.
The company will report its full Q4/18 and 2018 financial data in March.
Management guided to 2019 full-year revenue of $11–13 million, a 94–130% increase over total 2018 revenue. It guided to contract bookings totaling $20–22 million, a range that is 73–90% higher than what it achieved in 2018.
Technical analyst John Newell of Fieldhouse Capital charted AudioEye and noted that with a breakout above $9.25, he found three targets, $13, $23 and $47.
Chart courtesy of StockCharts.com.
For comparison, a chart from August:
Chart courtesy of StockCharts.com.
John Newell is a portfolio manager at Fieldhouse Capital Management. He has 38 years of experience in the investment industry acting as an officer, director, portfolio manager and investment advisor with some of the largest investment firms in Canada including Scotia McLeod, CIBC Wood Gundy and Richardson Greenshields (RBC Capital Markets). Newell is a specialist in precious metal equities and related commodities, and follows a disciplined proprietary approach incorporating equity research, analytical frameworks and risk controls to evaluate and select long and short stocks primarily from the Canadian small and mid-cap coverage. Many large, midcap and junior precious metal companies use his technical charts. Newell is a registered portfolio manager in Canada (advising representative).[NLINSERT]
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Technical charts provided by John Newell.