Release Date: April 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you talk about what sorts of things you're doing to prep for the European and DOJ opportunities?
A: David Moradi, CEO of AudioEye, highlighted the company's readiness for upcoming regulatory changes, emphasizing their strong position with enterprise and reseller channels, and a full product suite that caters to both small businesses and large enterprises. He anticipates a significant uptick in demand by 2025 due to new regulations.
Q: Can you walk through some of the reseller relationships that are key and how are those typically structured?
A: David Moradi explained that AudioEye has exclusive relationships with key resellers serving about 80,000 websites, mainly in the government sector. He sees a massive opportunity for growth, expecting near full penetration with these partners in the next two to three years.
Q: Can you give any specificity as to specific partners that drove the new partners or new relationships with those partners?
A: Kelly Georgevich, CFO of AudioEye, mentioned growth in both existing and new reseller partnerships. She highlighted the continuous emergence of new resellers each quarter, contributing to the company's growth.
Q: Can you talk about the key underlying factor that's driving the upside in terms of the adjusted EBITDA margin?
A: Kelly Georgevich attributed the improved EBITDA margins to the company's ability to scale revenue efficiently without significantly increasing expenses. She expects this trend to continue, maintaining high EBITDA margins.
Q: Any additional investments needed in your direct channel to take full advantage of the growing demand opportunity?
A: David Moradi indicated that no immediate additional investments are necessary for the direct channel. The company is currently well-balanced between growth and profitability, with plans still being formulated.
Q: How are you thinking about investments in the organic business versus potentially looking at incremental M&A?
A: David Moradi stated that while the company does not comment on potential M&A activities, they are focused on maintaining sustainable operating margins and may consider more investments in sales, marketing, and R&D if conditions are favorable.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
