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AudioEye Reports 172% Revenue Growth, 232% Bookings Growth in 2017TUCSON, Ariz., March 13, 2018 /PRNewswire/ -- AudioEye, Inc. (OTCQB: AEYE) ("AudioEye" or the "Company"), the leader in cloud-based software-as-a-service (SaaS) digital content accessibility solutions, today reported unaudited financial results for the fourth quarter and fiscal year ended December 31, 2017. Fourth Quarter and Full year 2017 and Recent Highlights:
CEO Todd Bankofier stated, "AudioEye proved out its high growth SaaS model during 2017 with topline revenue growth of 172%, to $2.7 million. Growth was the result of consistent sales acceleration throughout the year, resulting in bookings of more than $6.3 million, much of which will be recognized or renewed in 2018. We have a solid foundation for revenue as we continue to rapidly expand the business, closely manage operating expenses, which increased just 21% year-over-year, and drive toward cash positive operations in 2018. "Our strong growth results are indicative of the rapidly increasing demand for accessibility solutions. Market factors driving this trend include recognition of the ROI associated with expanding reach into as much as 15% of the population, the growing awareness of inclusion through accessibility as key to corporate social responsibility, and awareness of legal requirements as accessibility advocates press companies to comply with their responsibility to provide equal access guaranteed under the Americans with Disabilities Act. "As we look ahead in 2018, we have set aggressive growth goals, targeting revenue of $6.5 million to $7.5 million and bookings of between $11 million and $12 million; we are off to a strong start. We begin the year with a solid base of ongoing subscripion revenue from a current customer base, which has a near 100% renewal rate due to the importance of our platform in complying with WCAG 2.0 AA and Section 508 requirements. We are also seeing a strong pace of new customer subscriptions, in particular as our reseller partners ramp on our platform, rapidly introducing AudioEye solutions to tens of thousands of prospective customers. We anticipate signing a number of additional reseller partners across an array of vertical markets throughout 2018 to further strengthen our growth opportunities, in addition to our direct sales force which continues to win key increasingly high-profile accounts." 2017 Fourth Quarter and Full Year Financial Results During the fourth quarter, growing demand for AudioEye's SaaS digital content accessibility platform in multiple end markets drove continued rapid expansion in revenue, new contract bookings and deferred revenue. The Company reported revenue of $876 thousand for the quarter ended December 31, 2017, a 119% increase from revenue of $400 thousand in the fourth quarter of 2016. For the full year 2017, AudioEye reported revenue growth of 172%, to $2.7 million, compared with $994 thousand for the full year 2016. Forward revenue visibility continued to increase for AudioEye, with new cash contract bookings of $1.6 million in the fourth quarter, bringing full year 2017 bookings to $6.3 million, deferred revenue to $1.2 million and cash contracts in excess of deferred revenue to $3.3 million as of December 21, 2017. Gross profit in the fourth quarter 2017 was $536 thousand, or 61% of revenue, compared with gross profit of $79,299, or 20% of revenue, in the fourth quarter 2016. For the full year, gross margin increased to 49.5% of revenue, compared with negative 23.3% in 2016. AudioEye anticipates gross margin to continue to improve in 2018, consistent with its high profit leverage SaaS business model. Operating expenses remained tightly controlled and increased 22% year-over-year in the fourth quarter, to $1.4 million, reflecting additional sales and implementation positions to support AudioEye's rapid revenue and new contract bookings growth. Operating expenses increased only 21% year-over-year, to $5.1 million. Full year operating expenses included non-cash expenses of $539 thousand in depreciation and amortization and $993 thousand in stock based compensation. Operating loss was $869 thousand for the fourth quarter of 2017, down 19% from $1.1 million in the fourth quarter of 2016. For the full year, operating loss was $3.8 million, down 16% from $4.5 million in 2016. For the quarter, AudioEye reported net loss of $2.0 million, compared to a net loss of $838 thousand in the fourth quarter 2016. Fourth quarter of 2017 included $860,000 in one-time interest and other charges pertaining to the company's Debt conversation. AudioEye reported net loss of $4.8 million, or $0.04 per share, for the full year 2017, compared to a net loss of $9.6 million, or $0.10 per share, in 2016. Cash Flow and Balance Sheet Outlook About AudioEye, Inc. AudioEye is a technology company serving businesses committed to providing equal access to their digital content. Through patented technology, subject matter expertise and proprietary processes, AudioEye is transforming how the world experiences digital content. 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. AudioEye's common stock trades on the OTCQB under the symbol "AEYE." The Company maintains offices in Tucson, Atlanta and Washington D.C. For more information about AudioEye and its online accessibility solutions, please visit https://www.audioeye.com. Forward-Looking Statements For Further information, please contact: Matt Kreps, Darrow Associates Investor Relations Todd Bankofier, AudioEye Chief Executive Officer
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