AudioEye, Inc. revenue growth decelerated to 107% in 2018 vs. 176% a year earliner
03/27/2019 • About AudioEye, Inc. (
$AEYE) • By InTwits
AudioEye, Inc. reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- AudioEye, Inc. is a fast growth stock: 2018 revenue growth was 107%, 5 year revenue CAGR was 29.4% at 2018 ROIC -138%
- The company operates at negative EBITDA Margin: -71.1%
- AudioEye, Inc. spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2014-2018 is 0.0%. Average EBITDA Margin for the same period was -272.7%
- AudioEye, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has unprofitable business model: ROIC is -137.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
AudioEye, Inc.'s Revenue surged on 107%. Revenue growth showed small slowdown in 18Q4 - it was 103.3% YoY. During 2014-2018 Revenue growth topped in 2016 at 193% and was decelerating since that time. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 10.9 pp from -15.1% to -4.2% in FY2018. EBITDA Margin grew at 526 pp per annum in 2014-2018.
Gross Margin increased on 4.1 pp from 49.5% to 53.6% in 2018. During the last 5 years Gross Margin bottomed in 2015 at -261% and was growing since that time. SG&A as a % of Revenue dropped on 57.2 pp from 188% to 131% in 2018. SG&A as a % of Revenue declined at -423 pp per annum in the last 5 years.
Net Income margin surged on 116 pp from -205% to -88.7% in 2018. Net Income margin stuck to a growing trend at 547 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In 2018 AudioEye, Inc. had CAPEX/Revenue of 0.19%. The company's CAPEX/Revenue showed almost no change from 2015 to 2018.
Return on investment
The company operates at negative ROIC (-137.5%) and ROE (-154.4%). ROIC jumped on 742 pp from -880% to -138% in 2018. ROE jumped on 979 pp from -1,133% to -154% in 2018. During 2014-2018 ROE bottomed in 2017 at -1,133%.
Leverage (Debt)
Company's Net Debt / EBITDA is -2.1x and Debt / EBITDA is . Debt jumped while cash surged on 193%.
AudioEye, Inc. has no short term refinancing risk: cash is higher than short term debt (19,029.4%).
Financial and operational results
FY ended 12/31/2018
AudioEye, Inc. ($AEYE) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 0.523 | 0.339 | 0.994 | 2.739 | 5.660 | 106.6% |
| Gross Profit | -0.675 | -0.886 | -0.232 | 1.355 | 3.034 | 123.8% |
| SG&A | 7.993 | 5.518 | 3.282 | 5.154 | 7.413 | 43.8% |
| EBITDA | -9.278 | -6.780 | -3.908 | -3.980 | -4.022 | |
| Net Income | -9.751 | -7.209 | -9.579 | -5.608 | -5.020 | |
Balance Sheet
|
|---|
| Cash | 1.673 | 1.687 | 1.409 | 1.960 | 5.742 | 192.9% |
| Short Term Debt | 0.024 | 0.024 | 0.024 | 0.000 | 0.030 | |
| Long Term Debt | 0.052 | 1.923 | 0.000 | 0.000 | 0.051 | |
Cash flow
|
|---|
| Capex | 0.000 | 0.000 | 0.000 | 0.041 | 0.011 | -73.5% |
Ratios
|
|---|
| Revenue growth | -66.4% | -35.2% | 193.4% | 175.5% | 106.6% | |
| EBITDA growth | 279.1% | -26.9% | -42.4% | 1.8% | 1.1% | |
|
|---|
| Gross Margin | -128.9% | -261.4% | -23.3% | 49.5% | 53.6% | 4.1% |
| EBITDA Margin | -1,773.0% | -2,000.7% | -393.1% | -145.3% | -71.1% | 74.2% |
| SG&A, % of revenue | 1,527.4% | 1,628.4% | 330.1% | 188.1% | 131.0% | -57.2% |
| Net Income Margin | -1,863.3% | -2,127.5% | -963.4% | -204.7% | -88.7% | 116.0% |
| CAPEX, % of revenue | 0.0% | 0.0% | 0.0% | 1.5% | 0.2% | -1.3% |
|
|---|
| ROIC | -168.0% | -140.1% | -186.2% | -879.9% | -137.5% | 742.4% |
| ROE | -174.2% | -187.3% | -680.5% | -1,132.9% | -154.4% | 978.5% |
AudioEye, Inc. ($AEYE) key quoterly financial indicators
| mln. $ | 18Q1 | 18Q2 | 18Q3 | 18Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1 | 1 | 1 | 2 | | 164.5% | 80.5% | 100.7% | 103.3% |
| EBITDA | -1 | -1 | -1 | -1 | | | | | |
| Net Income | -1 | -1 | -1 | -1 | | | | -826.8% | |
Balance Sheet
|
|---|
| Cash | 1 | 1 | 6 | 6 | | 63.0% | 66.2% | 289.9% | 192.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | | -100.0% | -100.0% | 459.1% | |
| Long Term Debt | 0 | 0 | 0 | 0 | | | -100.0% | -100.0% | |
Ratios
|
|---|
| Gross Margin | 48.9% | 49.6% | 55.0% | 58.2% | | 27.4% | 13.9% | -9.7% | -2.9% |
| EBITDA Margin | -90.1% | -77.6% | -78.3% | -48.2% | | 132.8% | 33.1% | 22.4% | 123.4% |
| Net Income Margin | -101.2% | -88.6% | -89.2% | -80.2% | | 83.7% | 235.7% | -113.8% | 235.8% |
Peers in Application Software
Below you can find AudioEye, Inc. benchmarking vs. other companies in Application Software industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| nFusz Inc ($FUSZ) | | | | | 433.3% |
| CloudCommerce Inc ($CLWD) | | -38.1% | 247.6% | 40.9% | 301.1% |
| Seven Stars Cloud Group, Inc. ($SSC) | | 134.7% | 663.8% | 310.3% | 161.7% |
| Aurora Mobile Limited ($JG) | | | | 304.9% | 150.8% |
| Intelligent Systems Corporation ($INS) | | 14.2% | 71.0% | 12.2% | 119.0% |
| |
|---|
| Median (151 companies) | -43.3% | 14.0% | 13.6% | 14.8% | 15.2% |
|---|
| AudioEye, Inc. ($AEYE) | | -35.2% | 193.4% | 175.5% | 106.6% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Skkynet Cloud Systems Inc ($SKKY) | 99.7% | 97.4% | 98.0% | 97.6% | 96.5% |
| hopTo Inc ($HPTO) | 91.8% | 87.8% | 95.9% | 98.2% | 95.4% |
| Aware, Inc. ($AWRE) | 75.4% | 87.2% | 90.3% | 94.6% | 92.3% |
| Alteryx, Inc. ($AYX) | 77.5% | 80.5% | 81.3% | 83.4% | 91.0% |
| Aspen Technology, Inc. ($AZPN) | 86.5% | 88.7% | 89.7% | 90.2% | 89.9% |
| |
|---|
| Median (150 companies) | 63.4% | 61.9% | 64.2% | 64.6% | 66.1% |
|---|
| AudioEye, Inc. ($AEYE) | -128.9% | -261.4% | -23.3% | 49.5% | 53.6% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Aspen Technology, Inc. ($AZPN) | 34.5% | 42.2% | 46.0% | 45.2% | 43.3% |
| ANSYS, Inc. ($ANSS) | 45.9% | 45.8% | 45.1% | 41.9% | 41.4% |
| Paycom Software, Inc. ($PAYC) | 15.1% | 19.5% | 35.1% | 34.4% | 35.9% |
| j2 Global, Inc. ($JCOM) | 41.6% | 40.6% | 41.7% | 36.5% | 35.7% |
| Adobe Inc. ($ADBE) | 17.5% | 25.9% | 31.2% | 34.2% | 35.3% |
| |
|---|
| Median (152 companies) | -10.1% | -9.4% | -4.7% | -3.3% | -3.2% |
|---|
| AudioEye, Inc. ($AEYE) | -1,773.0% | -2,000.7% | -393.1% | -145.3% | -71.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| TimefireVR Inc ($TFVR) | 0.0% | 350.5% | 4.3% | | 1,021.9% |
| MGT Capital Investments Inc ($MGTI) | 0.0% | 36.5% | 221.4% | 129.8% | 344.5% |
| Integrated Ventures Inc ($INTV) | | | | | 199.9% |
| ShotSpotter, Inc. ($SSTI) | | 18.3% | 28.9% | 27.1% | 24.3% |
| Ellie Mae, Inc. ($ELLI) | 12.3% | 20.6% | 16.7% | 21.1% | 19.4% |
| |
|---|
| Median (153 companies) | 2.8% | 2.7% | 3.0% | 2.3% | 2.4% |
|---|
| AudioEye, Inc. ($AEYE) | 0.0% | 0.0% | 0.0% | 1.5% | 0.2% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| InsPro Technologies Corp ($ITCC) | -558.9% | | | | 127.4% |
| Manhattan Associates, Inc. ($MANH) | 64.8% | 78.7% | 99.3% | 102.5% | 80.9% |
| Intuit Inc. ($INTU) | 34.2% | 23.7% | 52.1% | 72.6% | 66.8% |
| Aspen Technology, Inc. ($AZPN) | 133.4% | | | | 58.1% |
| Paycom Software, Inc. ($PAYC) | 16.7% | 30.5% | 75.4% | 51.1% | 47.5% |
| |
|---|
| Median (179 companies) | -14.2% | -11.2% | -9.2% | -10.2% | -9.3% |
|---|
| AudioEye, Inc. ($AEYE) | -168.0% | -140.1% | -186.2% | -879.9% | -137.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Upland Software, Inc. ($UPLD) | | | 16.4x | 115.6x | 16.7x |
| Nuance Communications, Inc. ($NUAN) | 7.9x | 5.7x | 5.3x | 7.1x | 15.2x |
| Asure Software Inc ($ASUR) | 3.4x | 4.5x | 3.6x | 9.5x | 14.5x |
| SS&C Technologies Holdings, Inc. ($SSNC) | 1.7x | 7.3x | 4.6x | 3.1x | 8.5x |
| Avaya Holdings Corp. ($AVYA) | | | | | 7.4x |
| |
|---|
| Median (70 companies) | -1.4x | -1.0x | -0.9x | -0.8x | -0.7x |
|---|
