AudioEye, Inc. revenue jumped on 90.2% and EBITDA Margin surged on 34.8 pp from -63.5% to -28.7%
03/11/2021 • About AudioEye, Inc. (
$AEYE) • By InTwits
AudioEye, Inc. reported 2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- AudioEye, Inc. is a fast growth stock: 2020 revenue growth was 90.2%, 5 year revenue CAGR was 127% at 2020 ROIC -115%
- The company operates at negative EBITDA Margin: -28.7%
- AudioEye, Inc. spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for 2016-2020 is 0.0%. Average EBITDA Margin for the same period was -60.6%
- AudioEye, Inc. has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has unprofitable business model: ROIC is -115.0%
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 90.2%. Revenue growth showed slowdown in 20Q4 - it was 56.7% YoY. Revenue decline was accelerating on average at -29.2 pp per annum in 2016-2020. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 34.8 pp from -63.5% to -28.7% in 2020. EBITDA Margin followed a growing trend at 81.0 pp per annum in 2016-2020.
Gross Margin jumped on 11.6 pp from 59.3% to 70.9% in 2020. Gross Margin pursued a growing trend in the last 5 years. SG&A as a % of Revenue dropped on 25.7 pp from 125% to 99.7% in 2020. SG&A as a % of Revenue declined at -52.4 pp per annum in 2016-2020.
Net Income margin jumped on 37.3 pp from -72.3% to -35.0% in 2020. Net Income margin pursued a growing trend in the last 5 years.
Return on investment
The company operates at negative ROIC (-115.0%) and ROE (-213.6%). ROIC jumped on 68.0 pp from -183% to -115% in 2020. ROE surged on 41.4 pp from -255% to -214% in 2020.
Leverage (Debt)
Debt level is -13.8x Net Debt / EBITDA and Debt / EBITDA. Debt surged on 108% while cash surged on 361%.
AudioEye, Inc. has no short term refinancing risk: cash is higher than short term debt (1,830.0%).
Financial and operational results
FY ended 12/31/2020
AudioEye, Inc. ($AEYE) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 0.994 | 2.739 | 5.660 | 10.765 | 20.475 | 90.2% |
| Gross Profit | -0.232 | 1.355 | 3.034 | 6.382 | 14.514 | 127.4% |
| SG&A | 3.282 | 5.154 | 7.413 | 13.499 | 20.417 | 51.3% |
| EBITDA | -3.908 | -3.980 | -4.022 | -6.838 | -5.878 | |
| Net Income | -9.579 | -5.608 | -5.020 | -7.783 | -7.158 | |
Balance Sheet
|
|---|
| Cash | 1.409 | 1.960 | 5.742 | 1.972 | 9.095 | 361.2% |
| Short Term Debt | 0.024 | 0.000 | 0.030 | 0.261 | 0.497 | 90.1% |
| Long Term Debt | 0.000 | 0.000 | 0.051 | 0.707 | 1.522 | 115.3% |
Cash flow
|
|---|
| Capex | 0.000 | 0.041 | 0.011 | 0.056 | 0.000 | -100.0% |
Ratios
|
|---|
| Revenue growth | 193.4% | 175.5% | 106.6% | 90.2% | 90.2% | |
| EBITDA growth | -42.4% | 1.8% | 1.1% | 70.0% | -14.0% | |
|
|---|
| Gross Margin | -23.3% | 49.5% | 53.6% | 59.3% | 70.9% | 11.6% |
| EBITDA Margin | -393.1% | -145.3% | -71.1% | -63.5% | -28.7% | 34.8% |
| SG&A, % of revenue | 330.1% | 188.1% | 131.0% | 125.4% | 99.7% | -25.7% |
| Net Income Margin | -963.4% | -204.7% | -88.7% | -72.3% | -35.0% | 37.3% |
| CAPEX, % of revenue | 0.0% | 1.5% | 0.2% | 0.5% | 0.0% | |
|
|---|
| ROIC | -186.2% | -879.9% | -137.5% | -183.0% | -115.0% | 68.0% |
| ROE | -680.5% | -1,132.9% | -154.4% | -255.1% | -213.6% | 41.4% |
AudioEye, Inc. ($AEYE) key quoterly financial indicators
| mln. $ | 20Q1 | 20Q2 | 20Q3 | 20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 4 | 5 | 5 | 6 | | 114.6% | 116.9% | 92.4% | 56.7% |
| EBITDA | -1 | -1 | -1 | -3 | | - | - | - | - |
| Net Income | -2 | -1 | -1 | -3 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 2 | 2 | 10 | 9 | | -56.4% | -24.0% | 197.2% | 361.2% |
| Short Term Debt | 0 | 0 | 0 | 0 | | 40.7% | 18.2% | 9.3% | 90.1% |
| Long Term Debt | 1 | 2 | 1 | 2 | | 50.3% | 129.1% | -34.0% | 115.3% |
Ratios
|
|---|
| Gross Margin | 69.0% | 69.6% | 71.0% | 73.5% | | 14.5% | 16.7% | 11.3% | 7.4% |
| EBITDA Margin | -33.6% | -9.7% | -22.8% | -46.1% | | 65.5% | 66.0% | 48.2% | -9.4% |
| Net Income Margin | -39.1% | -26.6% | -20.2% | -53.8% | | 68.8% | 56.3% | 58.8% | -13.8% |
Peers in Application Software
Below we provide AudioEye, Inc. benchmarking against other companies in Application Software industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | - | -0.2% | -95.9% | 34.9% | 355,942.4% |
| Cloudera, Inc. ($CLDR) | - | 57.2% | 42.6% | 28.9% | 65.5% |
| Integrated Ventures Inc ($INTV) | - | - | - | -8.9% | 62.7% |
| Smartsheet Inc. ($SMAR) | - | 64.3% | 66.1% | 59.7% | 52.4% |
| Coupa Software Incorporated ($COUP) | - | 59.9% | 39.6% | 39.4% | 49.7% |
| |
|---|
| Median (92 companies) | 12.0% | 14.8% | 15.1% | 19.4% | 14.5% |
|---|
| AudioEye, Inc. ($AEYE) | - | 175.5% | 106.6% | 90.2% | 90.2% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Aware, Inc. ($AWRE) | 90.3% | 94.6% | 92.3% | 89.7% | 92.8% |
| Alteryx, Inc. ($AYX) | 81.3% | 83.4% | 91.0% | 90.6% | 91.1% |
| Autodesk, Inc. ($ADSK) | 85.2% | 83.2% | 85.2% | 88.9% | 90.1% |
| Smith Micro Software, Inc. ($SMSI) | 73.2% | 77.9% | 83.5% | 90.9% | 89.9% |
| Cadence Design Systems, Inc. ($CDNS) | 85.9% | 87.8% | 87.9% | 88.6% | 88.6% |
| |
|---|
| Median (89 companies) | 64.2% | 64.6% | 66.0% | 68.4% | 69.4% |
|---|
| AudioEye, Inc. ($AEYE) | -23.3% | 49.5% | 53.6% | 59.3% | 70.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -1,837.2% | -1,118.0% | -40,379.4% | -23,127.1% | 52.2% |
| j2 Global, Inc. ($JCOM) | 41.7% | 36.5% | 35.7% | 38.6% | 40.5% |
| Intelligent Systems Corporation ($INS) | -5.4% | -12.8% | 33.6% | 43.6% | 40.4% |
| Adobe Inc. ($ADBE) | 31.2% | 34.2% | 35.3% | 35.8% | 39.7% |
| SS&C Technologies Holdings, Inc. ($SSNC) | 34.9% | 37.9% | 27.7% | 38.2% | 38.3% |
| |
|---|
| Median (89 companies) | -4.7% | -3.3% | -3.3% | 4.5% | 7.7% |
|---|
| AudioEye, Inc. ($AEYE) | -393.1% | -145.3% | -71.1% | -63.5% | -28.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| MicroStrategy Incorporated ($MSTR) | 0.5% | 0.8% | 1.4% | 2.1% | 234.8% |
| Integrated Ventures Inc ($INTV) | - | - | 199.9% | 15.2% | 27.2% |
| Intelligent Systems Corporation ($INS) | 3.8% | 9.7% | 4.3% | 4.9% | 19.2% |
| LivePerson, Inc. ($LPSN) | 5.5% | 7.9% | 8.8% | 16.3% | 11.4% |
| PROS Holdings, Inc. ($PRO) | 4.7% | 0.8% | 0.7% | 2.1% | 11.3% |
| |
|---|
| Median (87 companies) | 3.0% | 2.3% | 2.4% | 3.0% | 2.6% |
|---|
| AudioEye, Inc. ($AEYE) | 0.0% | 1.5% | 0.2% | 0.5% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| VirnetX Holding Corp ($VHC) | -210.9% | -256.8% | -416.3% | -247.2% | 137.3% |
| Manhattan Associates, Inc. ($MANH) | 99.3% | 102.5% | 80.9% | 71.7% | 53.4% |
| Citrix Systems, Inc. ($CTXS) | 16.1% | 16.7% | 25.2% | 29.8% | 33.5% |
| Sonic Foundry, Inc. ($SOFO) | -18.1% | -50.6% | -786.4% | - | 31.3% |
| Paycom Software, Inc. ($PAYC) | 75.4% | 51.1% | 47.5% | 47.5% | 28.7% |
| |
|---|
| Median (92 companies) | -9.2% | -10.2% | -9.8% | -4.2% | -1.8% |
|---|
| AudioEye, Inc. ($AEYE) | -186.2% | -879.9% | -137.5% | -183.0% | -115.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dropbox, Inc. ($DBX) | - | -3.8x | - | 2.4x | 1,341.0x |
| Avaya Holdings Corp. ($AVYA) | - | - | 7.4x | - | 77.9x |
| Alteryx, Inc. ($AYX) | - | - | 2.5x | 6.1x | 32.2x |
| Five9, Inc. ($FIVN) | -6.7x | -8.6x | 7.3x | 5.3x | 17.6x |
| Synchronoss Technologies, Inc. ($SNCR) | - | - | - | - | 11.6x |
| |
|---|
| Median (54 companies) | -0.9x | -0.8x | -0.7x | 0.4x | 0.2x |
|---|
