AEYE announcements

Has anyone else noticed the incredible sequence of new deals in new fields they’ve announced just this week, besides the new board member. This is off the Yahoo Finance AEYE board. There doesn’t seem to be any limit to what they can do with their technology.

AudioEye Signs Global Contract With PearTrack to Integrate Audio Internet(R) With Leading Wireless Asset Tracking

Matthew Mellon Joins AudioEye Board of DirectorsMarketwired(Wed, Jul 23)

Vail School District Launches 20 U.S. Public School Websites With Audio Internet(R) Platform in Time for New School YearMarketwired(Tue, Jul 15)

AudioEye Teams With PromotionPod for Consumer Packaged Goods, Retail and Couponing MarketsMarketwired(Wed, Jul 9)

AudioEye Licenses Audio Internet(R) Platform to Professional Diversity NetworkMarketwired(Mon, Jul 7)

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Their IR site has a listing of their recent press releases and filings and is a great resource:

https://www.audioeye.com/investor-relations/

AEYE looks like it is in the early phases of very significant growth. The following is from the July 2 press release:

The Company expects to report approximately $3.0 million in recognizable revenue for the three months ended June 30, 2014. This compares with approximately $0.2 million in the prior-year quarter and represents an approximate 200% increase relative to revenue of $1.0 million in the quarter ended March 31, 2014.
• The annualized revenue “run rate” for the most recent quarter approximated $12 million.
• Revenue for the first half of 2014 and 2013 approximated $4.0 million and $0.4 million, respectively.
• Management expects revenue to exceed the Company’s previous guidance of $8 million for the year ending December 31, 2014.
• Approximately $1 million in contracts were secured with leading national health care companies.
• The Company executed licenses for its technology with organizations involved in the consumer packaged goods (CPG), retail and coupon, and online jobs posting verticals during the second quarter of 2014.
• Based on the information above, the Company is pleased to announce that it expects to be profitable for the quarter ended June 30, 2014.
The Company is engaged in a pilot program to audio-enable websites for one of the largest telecommunications companies in the U.S.
• The Company has identified opportunities and is involved in discussions with over 50% of the federal government agencies regarding the procurement of its services.
• The Company has identified opportunities and is involved in early discussions with numerous state, local and municipal governments for the procurement of its services.
• The Company has obtained scope of work parameters and identified business opportunities with multiple professional sports teams/leagues, one of the largest biopharmaceutical companies in the U.S., and dozens of other enterprises that are expected to result in contract signings over the next several months.
• The Company upgraded its platform technologies to introduce the proprietary Real-Time Auto-Discovery & Enablement feature, which allows AudioEye to greatly streamline the onboarding process while providing additional solution flexibility.

It looks like in Q2, AEYE signed contracts with health care companies ($1M or one-third of sales), consumer packaged goods (CPG), retail and coupon, and online jobs posting verticals. I would expect revenue from these groups to increase, but I’m excited to see the groups they are working with (in bold) where they probably did not recognize much revenue in Q2. One of the largest telecommunications companies in the U.S should have a lot of users for its websites and would probably be a substantial contract in terms of revenue. 50% of the federal government agencies and numerous state, local and municipal governments are a big target market, but I’m impressed that they are working with such a high proportion of these entities that they can say half of federal agencies and “numerous” state, local and municipal governments. Even if a minority of these discussions end in a contract, this should still be a large amount of revenue. One concern here is that government entities work extremely slow and go through a lot of bureaucracy to make decisions, so I’m not expecting this to quickly turn into revenue. The last bolded bullet (scope of work parameters and identified business opportunities with multiple professional sports teams/leagues, one of the largest biopharmaceutical companies in the U.S., and dozens of other enterprises) also sounds like a lot of potential revenue opportunities. This almost sounds too good to be true. For such a small company, how can they manage all these discussions without a huge sales team? I’ll give them the benefit of the doubt here, but if they can take advantage of even a minority of the opportunities listed, their revenue growth could continue to impress for several years. That’s worth a 2% position for me.

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Has anyone else noticed the incredible sequence of new deals in new fields they’ve announced just this week, besides the new board member. This is off the Yahoo Finance AEYE board. There doesn’t seem to be any limit to what they can do with their technology.

Hi Saul,

Yes, I have been following along all the announcements and have two opposing comments/questions.

Unlike SZYM which has a world of opportunities but seems to have prioritized them for monetization, AEYE seems all over the board. Any troublesome thoughts about that? I guess I don’t understand all their sales channels and it has me confused with retail coupons, container deals, etc. Are they business to business? Also direct to consumer? Licensing too? The only one I understand is the political arena and that makes most sense. These are necessarily negative points, only that I don’t understand them at this point.

Great that they are able to do deals in such disparate fields. I assume the government field is the most lucrative though maybe the slowest paying so perhaps, they do other deals to support an even cash flow. I’d like to hear what their strategy is.
Mykie