AudioEye Inc (AEYE) 2024 Q4 法說會逐字稿

Good afternoon, and welcome to AudioEye's fourth-quarter and full year 2024 earnings conference call. Joining us for today's call are AudioEye's CEO, Mr. David Moradi; and CFO, Ms. Kelly Georgevich. Following their remarks, we will open the call for questions from the company's publishing analysts.

下午好，歡迎參加 AudioEye 2024 年第四季和全年財報電話會議。參加今天電話會議的有 AudioEye 的首席執行官 David Moradi 先生；和首席財務官凱利·喬治維奇女士。在他們發言之後，我們將開始接受該公司出版分析師的提問。

I would like to remind everyone that this call will be recorded and made available for replay via a link available in the Investor Relations section of the company's website at www.audioeye.com.

我想提醒大家，本次電話會議將被錄音，並透過公司網站 www.audioeye.com 投資者關係部分提供的連結提供重播。

Before I turn the call over to AudioEye's Chief Executive Officer, the company would like to remind all participants that statements made by AudioEye management during the course of this conference call that are not historical facts are considered to be forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for such forward-looking statements. The words believe, expect, anticipate, estimate, confident, will and other similar statements of expectation identify forward-looking statements. These statements are predictions, projections or other statements about future events and are based on current expectations and assumptions that are subject to risks and uncertainties.

在我將電話轉給 AudioEye 的執行長之前，公司想提醒所有參與者，AudioEye 管理層在本次電話會議期間所作的非歷史事實的陳述均被視為前瞻性陳述。1995 年《私人證券訴訟改革法》為此類前瞻性聲明提供了安全港。相信、期望、預期、估計、信心、將及其他類似的預期表述均屬於前瞻性陳述。這些陳述是有關未來事件的預測、預期或其他陳述，基於當前的預期和假設，且受風險和不確定性影響。

Actual results could materially differ because of factors discussed in today's press release and the comments made during this conference call and in the Risk Factors section of the company's annual report on Form 10-K, its quarterly reports on Form 10-Q and in its other reports and filings with the Securities and Exchange Commission. Participants on this call are cautioned not to place undue reliance on these forward-looking statements, which reflect management's belief only as of the date hereof. AudioEye does not undertake any duty to update any correct -- or correct any forward-looking statements.

由於今天的新聞稿中討論的因素、本次電話會議中所作的評論以及公司 10-K 表年度報告、10-Q 表季度報告和向美國證券交易委員會提交的其他報告和文件中的“風險因素”部分所作的評論，實際結果可能會有重大差異。本次電話會議的參與者應注意不要過度依賴這些前瞻性陳述，這些陳述僅反映管理階層截至本電話會議之日的看法。AudioEye 不承擔更新任何正確或更正任何前瞻性聲明的責任。

Further, management's remarks today will include certain non-GAAP financial measures. A reconciliation of the most directly comparable GAAP financial measures to these non-GAAP financial measures is available in the company's earnings release or otherwise posted in the Investor Relations section of its website at www.audioeye.com.

此外，管理階層今天的發言將包括某些非公認會計準則財務指標。最直接可比較的 GAAP 財務指標與這些非 GAAP 財務指標的對帳表可在公司的收益報告中查閱，也可以在公司網站 www.audioeye.com 的投資者關係部分中發布。

Now I'd like to turn the call over to AudioEye's Chief Executive Officer, Mr. David Moradi. Sir, please proceed.

現在，我想將電話轉給 AudioEye 的執行長 David Moradi 先生。先生，請繼續。

Thank you, operator, and thank you to everyone joining us today. My voice is a bit off today. I have the flu, but I'm going to do my best.

謝謝接線員，也謝謝今天加入我們的每個人。我今天的聲音有點不對勁。我得了流感，但我會盡力的。

A year ago, on our fourth quarter 2023 earnings call, we discussed significant improvements over the last few years. I joined the Board of Directors in 2019 to address operating efficiency and strategy. In 2019, gross margins were in the mid 50s. Adjusted EBITDA margins were in the mid-negative 60s, and revenue per employee was in the low $100,000 range.

一年前，在我們的 2023 年第四季財報電話會議上，我們討論了過去幾年的重大改進。我於 2019 年加入董事會，負責解決營運效率和策略問題。 2019年，毛利率約50%。調整後的 EBITDA 利潤率處於負 60% 左右，每位員工的收入約在 10 萬美元出頭。

I'm pleased that our operating efficiency continues to improve with the fourth quarter producing record revenue, gross margins, adjusted EBITDA, and free cash flow using adjusted EBITDA minus CapEx. In the fourth quarter, gross margins improved to 80%, and adjusted EBITDA margins improved to a record 24%. Revenue per employee continued to expand, reaching over $330,000 in the fourth quarter. We expect another great year in 2025 with strong growth and record adjusted EBITDA margins, which we will discuss shortly. In addition to producing top-tier SaaS metrics, we provide a best-in-class product that gives clients 300% to 400% more protection against valid legal claim than any other product in the industry.

我很高興我們的營運效率繼續提高，第四季度創造了創紀錄的收入、毛利率、調整後的 EBITDA 和自由現金流（使用調整後的 EBITDA 減去資本支出）。第四季度，毛利率提高至 80%，調整後 EBITDA 利潤率提高至創紀錄的 24%。每位員工的收入持續擴大，第四季達到 33 萬美元以上。我們預計 2025 年將是另一個輝煌的一年，實現強勁成長並創下調整後 EBITDA 利潤率的新高，我們將在稍後討論這一點。除了提供頂級的 SaaS 指標外，我們還提供一流的產品，為客戶提供比業內任何其他產品高 300% 到 400% 的有效法律索賠保護。

We continue to invest in our product suite and have significantly increased our AI automated detection. An analysis of recent data shows we can automatically detect approximately 500% more issues than other solutions on the market. Last week, we released our 2025 Digital Accessibility Index, which involved reviewing 15,000 websites across key industries, including education, finance, government, healthcare, hospitality, software, and retail. Our new study found an average of 297 accessibility issues per page, a substantial increase from the 37 issues per page found in AudioEye's 2023 index. The eightfold increase in issues detected is primarily due to improvements in our automated testing capabilities from two years ago.

我們繼續投資我們的產品套件，並顯著提高了我們的人工智慧自動檢測能力。對最近數據的分析表明，我們可以自動檢測到比市場上其他解決方案多約 500% 的問題。上週，我們發布了 2025 年數位無障礙指數，其中涉及審查教育、金融、政府、醫療保健、酒店、軟體和零售等主要行業的 15,000 個網站。我們的新研究發現，平均每個頁面存在 297 個可訪問性問題，與 AudioEye 2023 年指數中發現的每頁 37 個問題相比大幅增加。檢測到的問題增加了八倍，這主要歸功於我們兩年前自動化測試能力的提升。

The European Accessibility Act, or EAA, is quickly approaching and will take effect in June of 2025, requiring digital products and services, including websites, e-commerce and mobile apps, to meet accessibility standards across the EU. Businesses operating in the EU must ensure compliance or risk penalties. To ensure we capture demand from the EAA, we have built a team in Europe to address the EU market, including new account executives in Europe. We are planning for further expansion in the EU in 2025 and beyond. We expect that demand will look like the GDPR rollout in 2018, which scaled over five years and now have significant adoption.

《歐洲無障礙法案》（EAA）即將出台並將於 2025 年 6 月生效，該法案要求包括網站、電子商務和行動應用程式在內的數位產品和服務滿足整個歐盟的無障礙標準。在歐盟營運的企業必須確保合規，否則將面臨處罰風險。為了確保能夠滿足 EAA 的需求，我們在歐洲建立了一個團隊來應對歐盟市場，包括歐洲的新客戶經理。我們計劃在 2025 年及以後進一步在歐盟擴張。我們預計需求將類似於 2018 年推出的 GDPR，該政策已持續五年，目前已廣泛採用。

In the United States, there have been questions about what the new administration means for digital accessibility. On February 5, the Office of Personnel Management issued a memo stating that existing disability laws remain in force, and federal agencies should not terminate or prohibit accessibility or disability-related accommodations. Our business has had no impact from the new administration, and we have limited revenues in the federal government. Additionally, there is currently no indication that the DOJ will roll back requirements under Title II of the ADA. We continue to see record demand and lead generation with private lawsuits continuing to be a notable driver for demand.

在美國，有人質疑新政府對數位無障礙意味著什麼。2月5日，美國人事管理辦公室發布備忘錄稱，現有的殘疾人法仍然有效，聯邦機構不應終止或禁止無障礙或與殘疾人相關的便利設施。我們的業務沒有受到新政府的影響，而且我們在聯邦政府的收入有限。此外，目前沒有跡象顯示司法部將撤銷《美國殘疾人法案》第二章的要求。我們繼續看到創紀錄的需求和潛在客戶產生，其中私人訴訟繼續成為需求的顯著推動力。

Lastly, I welcome Jim Hawkins to our Board of Directors. Jim has an impressive track record of driving growth and operational success that will be very beneficial as we expand. From 2004 to 2018, he served as President and CEO of Natus Medical, a global leader in medical devices and software, where he led revenue growth from $37 million to $530 million and increased market capitalization from $68 million to $1.1 billion, a 1,500% increase. Jim currently serves on the Board of Directors of OSI Systems and IRadimed Corporation. Moving on to guidance.

最後，我歡迎吉姆霍金斯加入我們的董事會。吉姆在推動成長和營運成功方面擁有令人印象深刻的記錄，這將對我們的擴張非常有益。2004年至2018年，他擔任醫療設備和軟體全球領導者Natus Medical的總裁兼首席執行官，帶領公司收入從3700萬美元增長至5.3億美元，市值從6800萬美元增至11億美元，增幅達1500%。Jim 目前擔任 OSI Systems 和 IRadimed Corporation 的董事會董事。繼續指導。

We expect growth in revenue and adjusted EBITDA in 2025 with acceleration picking up in the second half of 2025 from EU and continued US demand. For the first quarter of 2025, we are guiding revenue between $9.7 million and $9.8 million. With Social Security taxes and other beginning-of-year expenses impacting Q1, we expect to generate adjusted EBITDA between $1.85 million and $1.95 million and adjusted EPS between $0.14 and $0.16 per share.

我們預計 2025 年收入和調整後 EBITDA 將實現成長，並且由於歐盟和美國需求的持續成長，2025 年下半年收入和調整後 EBITDA 將加速成長。我們預計 2025 年第一季的營收將在 970 萬美元至 980 萬美元之間。由於社會安全稅和其他年初費用影響第一季度，我們預計調整後的 EBITDA 在 185 萬美元至 195 萬美元之間，調整後的每股收益在 0.14 美元至 0.16 美元之間。

For the full year, we are guiding revenue between $41 million and $42 million for a growth rate of around 18% at the midpoint. We expect adjusted EBITDA between $9 million and $10 million, representing 41% growth at the midpoint. We expect adjusted EPS between $0.70 and $0.80 per share. We also expect to continue to be a Rule of 40 company going forward.

我們預計全年收入在 4,100 萬美元至 4,200 萬美元之間，中間成長率約為 18%。我們預計調整後的 EBITDA 在 900 萬美元至 1,000 萬美元之間，中間值將成長 41%。我們預計調整後的每股收益在 0.70 美元至 0.80 美元之間。我們也希望未來能繼續成為一家「40 法則」公司。

I'll now turn the call over to AudioEye's CFO, Kelly.

現在我將把電話轉給 AudioEye 的財務長凱利。

Thanks, David. Revenue again hit record levels with Q4 2024 revenue at $9.7 million, a 24% increase from Q4 2023 and 9% increase sequentially from Q3 2024. On a full year basis, in 2024, our revenues grew 12% to $35.2 million from $31.3 million. When breaking this down by channel, the Partner and Marketplace channel includes all revenue from our SMB-focused marketplace products and revenue from a range of partners to deploy these same products for their SMB customers.

謝謝，大衛。營收再次創下歷史新高，2024 年第四季營收為 970 萬美元，較 2023 年第四季成長 24%，較 2024 年第三季季增 9%。從全年來看，到 2024 年，我們的收入將從 3,130 萬美元成長 12% 至 3,520 萬美元。按通路細分時，合作夥伴和市場管道包括我們以中小企業為中心的市場產品的所有收入，以及來自一系列合作夥伴為中小企業客戶部署相同產品的收入。

For the fourth quarter of 2024, our Partner and Marketplace channel grew 14% year over year and represented approximately 58% of ARR. For the full year 2024, this channel's revenue grew 12% from $18 million in 2023 to $20.2 million in 2024.

2024 年第四季度，我們的合作夥伴和市場通路年增 14%，約佔 ARR 的 58%。2024 年全年，該頻道的收入將從 2023 年的 1,800 萬美元增加 12% 至 2024 年的 2,020 萬美元。

We continue to see an expansion of existing customers and new partners engaging with AudioEye contributing to this channel's growth. AudioEye's Enterprise channel consists of our larger customers and organizations, including those with non-platform custom website who generally engage directly with AudioEye sales personnel for pricing and solutions.

我們不斷看到現有客戶和新合作夥伴與 AudioEye 的合作不斷擴大，為該通路的成長做出了貢獻。 AudioEye 的企業管道由我們的較大客戶和組織組成，其中包括那些擁有非平台定製網站的客戶和組織，他們通常直接與 AudioEye 銷售人員聯繫以了解價格和解決方案。

In Q4 2024, the Enterprise channel contributed 42% of ARR. Annual recurring revenue, or ARR, at the end of the fourth quarter of 2024 was $36.6 million, a 17% increase over ARR at the end of the fourth quarter of 2023, an increase of $400,000 sequentially.

2024 年第四季度，企業通路貢獻了 42% 的 ARR。 2024 年第四季末的年度經常性收入（ARR）為 3,660 萬美元，比 2023 年第四季末的 ARR 成長 17%，比上一季增加 40 萬美元。

On December 31, 2024, our customer count was approximately 127,000, an increase from 126,000 customers on September 30, 2024, and an increase of approximately 17,000 from December 31, 2023. Additions in both the Enterprise and Partner and Marketplace channels drove the increase in customer count.

截至 2024 年 12 月 31 日，我們的客戶數量約為 127,000 名，較 2024 年 9 月 30 日的 126,000 名客戶有所增加，較 2023 年 12 月 31 日增加了約 17,000 名。企業、合作夥伴和市場管道的增加推動了客戶數量的增加。

Gross profit for the fourth quarter was $7.8 million or about 80% of revenue compared to $6.2 million or 78% of revenue in Q4 of last year. For the full year 2024, our gross margins were approximately 79% with gross profit increasing from $24.3 million in 2023 to $27.9 million in 2024. With a $3.9 million increase in revenue in 2024, cost of revenue only increased by $300,000. Several inputs factor into cost of revenue, including web hosting, customer support, and other costs directly related to product delivery.

第四季毛利為 780 萬美元，約佔營收的 80%，而去年同期為 620 萬美元，佔營收的 78%。2024 年全年，我們的毛利率約為 79%，毛利從 2023 年的 2,430 萬美元增加到 2024 年的 2,790 萬美元。 2024 年收入增加了 390 萬美元，收入成本僅增加了 30 萬美元。有幾個輸入因素會影響收入成本，包括網站託管、客戶支援和其他與產品交付直接相關的成本。

Operating expenses in the fourth quarter of 2024 increased $2.4 million to $9.1 million from $6.7 million in the same quarter last year. This increase was primarily driven by nonrecurring or noncash items, including additional stock compensation of $700,000, litigation expense of $1 million and additional investments in selling and marketing.

2024 年第四季的營運費用從去年同期的 670 萬美元增加 240 萬美元至 910 萬美元。這一成長主要得益於非經常性或非現金項目，包括 70 萬美元的額外股票補償、100 萬美元的訴訟費用以及在銷售和行銷方面的額外投資。

On a full year basis, operating expenses increased 3% or approximately $1 million to $31.3 million, also driven by increases in employee stock compensation of $700,000, litigation expense of $2.1 million and approximately $600,000 of investing in sales and marketing, offset by efficiencies in R&D.

全年來看，營業費用增加了 3% 或約 100 萬美元，達到 3,130 萬美元，這也是由於員工股票薪酬增加 70 萬美元、訴訟費用增加 210 萬美元以及銷售和行銷投資增加約 60 萬美元，但研發效率的提高抵消了這一變化。

Our total R&D spend in Q4 was approximately $1.8 million with approximately $400,000 reflected as software development costs in the investing section of the cash flow statement. This is on par with Q3 2024 R&D investment. The total R&D spend was around 18% in Q4 2024 revenue versus 22% in Q4 2023, and R&D spend was 19% of our full year 2024 revenue versus 29% for 2023.

我們第四季的研發總支出約為 180 萬美元，其中約 40 萬美元反映為現金流量表投資部分的軟體開發成本。這與 2024 年第三季的研發投資相當。2024 年第四季的總研發支出約佔營收的 18%，而 2023 年第四季為 22%，研發支出佔 2024 年全年營收的 19%，而 2023 年為 29%。

Net loss in the fourth quarter of 2024 was $1.5 million or $0.12 per share compared to a net loss of $500,000 or $0.04 per share in the same year ago period. On a full year basis, net loss for 2024 was $4.3 million or $0.36 per share compared to a net loss of $5.9 million or $0.50 per share in 2023, an improvement of $1.6 million.

2024 年第四季淨虧損為 150 萬美元或每股 0.12 美元，去年同期淨虧損為 50 萬美元或每股 0.04 美元。從全年來看，2024 年淨虧損為 430 萬美元或每股 0.36 美元，而 2023 年淨虧損為 590 萬美元或每股 0.50 美元，改善了 160 萬美元。

In the fourth quarter of 2024, we again achieved record profitability with adjusted EBITDA of approximately $2.3 million or $0.18 per share compared to an adjusted EBITDA of $1.3 million or $0.11 per share in the same year-ago period. On a full year basis, we produced record adjusted EBITDA of approximately $6.7 million or $0.55 per share compared to $1.3 million or $0.11 per share in 2023. This dramatic increase in adjusted EBITDA over the prior year's comparable period was driven by $3.9 million of revenue growth and reductions in non-GAAP expenses by approximately $1.5 million. In the fourth quarter of 2024, we generated $1.9 million of free cash flow, calculated as adjusted EBITDA of $2.3 million plus $400,000 of software development costs, an improvement of $1 million from the fourth quarter of 2023.

2024 年第四季度，我們再次實現創紀錄的盈利，調整後的 EBITDA 約為 230 萬美元或每股 0.18 美元，而去年同期的調整後 EBITDA 為 130 萬美元或每股 0.11 美元。從全年來看，我們實現了創紀錄的調整後 EBITDA，約為 670 萬美元或每股 0.55 美元，而 2023 年為 130 萬美元或每股 0.11 美元。與去年同期相比，調整後 EBITDA 的大幅成長得益於 390 萬美元的收入成長以及非 GAAP 費用約 150 萬美元的減少。2024 年第四季度，我們產生了 190 萬美元的自由現金流，按調整後的 EBITDA 230 萬美元加上 40 萬美元的軟體開發成本計算，比 2023 年第四季度增加了 100 萬美元。

We ended Q4 2024 with $5.7 million of cash and cash equivalents. For the full year 2024, adjusted free cash flow was $4.9 million versus negative $600,000 in 2023.

截至 2024 年第四季度，我們的現金和現金等價物為 570 萬美元。 2024 年全年調整後的自由現金流為 490 萬美元，而 2023 年為負 60 萬美元。

In the first quarter of 2025, AudioEye's Board of Directors authorized a repurchase of up to $12.5 million of the company's outstanding shares of common stock through January 2027. With cash flows expected to increase dramatically, we believe share repurchases offer an attractive way to deploy excess capital.

2025 年第一季度，AudioEye 董事會批准在 2027 年 1 月之前回購該公司已發行的最高價值 1,250 萬美元的普通股。由於現金流預計將大幅增加，我們認為股票回購是部署過剩資本的一種有吸引力的方式。

With that, we open up the call for questions. Operator, please give instructions.

現在，我們開始回答問題。接線員，請給予指示。

(Operator Instructions) Joshua Reilly, Needham.

（操作員指示） Joshua Reilly，尼德姆。

All right. Nice job on the quarter here. Maybe just starting off on the EBITDA guidance for the year of $9 million to $10 million. Can you just help us get some more details around whether that includes all of the sales investments that you would be making in Europe to ramp that opportunity?

好的。本季的工作做得很好。也許剛開始預測今年的 EBITDA 為 900 萬至 1000 萬美元。您能否幫助我們了解更多詳細信息，是否包括您為抓住這一機會在歐洲進行的所有銷售投資？

And then maybe also, does that contemplate all the sales investments you'd be making to ramp the US opportunity? And if you begin to outperform in terms of demand throughout the year, would that lead you to make additional sales hires as the year progresses?

然後也許還考慮了您為擴大美國市場機會而進行的所有銷售投資？如果您全年的需求表現都超出預期，那麼隨著時間的推移，您是否會招募更多的銷售人員？

Yeah, I can take that. The guidance does suggest that it does build out what we think we need for additional sales and marketing investments and the $9 million to $10 million. We are investing in Europe, as David mentioned. I think there is additional opportunity to invest in Europe if we see additional demand there. I think that would drive up our revenue and potentially investment in that space. But yeah, our expenses do account for what we think we need to invest in selling and marketing in 2025.

是的，我可以接受。該指引確實表明，它確實擴大了我們認為需要的額外銷售和行銷投資以及 900 萬至 1000 萬美元。正如大衛所提到的，我們正在歐洲投資。我認為，如果我們看到歐洲有額外的需求，那麼我們就有額外的投資機會。我認為這將增加我們的收入並可能增加對該領域的投資。但是，我們的開支確實考慮了我們認為 2025 年需要在銷售和行銷方面進行的投資。

Got it. And then in terms of --

知道了。然後就--

In terms of start to ramp up, I think we'll be a lot more aggressive. I just don't want to -- I don't want to say that without knowing right now. We're seeing a lot of signs that's starting to happen, but I don't really want to go out there on a limb and say we're going to aggressively hire 25 salespeople unless we see all the signs that show that.

從開始加大力度來看，我認為我們會更加積極主動。我只是不想──我不想現在就說出這些話。我們看到了很多跡象表明這種情況正在發生，但我真的不想冒險說我們會積極招募 25 名銷售人員，除非我們看到所有的跡像都表明這種情況發生。

Understood. That's helpful. And then in terms of bookings from the Partner channel, I know that, for example, CivicPlus hired a number of reps specifically to kind of tackle the opportunity with you guys. I guess maybe how are -- in terms of the Partner channel, is the government versus nongovernment opportunities ramping consistent with what you expected? And maybe just kind of give us some more color on what you expect in terms of that channel for 2025.

明白了。這很有幫助。然後就合作夥伴管道的預訂而言，我知道，例如，CivicPlus 聘請了一些代表，專門與你們一起抓住機會。我想也許是這樣——就合作夥伴管道而言，政府與非政府機會的成長是否與您的預期一致？也許您可以向我們詳細介紹一下您對 2025 年該頻道的期望。

Sure. Yeah. They've implemented very aggressive go-to-market plans, as you know, to capitalize on the Title II opportunity. We think these plans are going to contribute real growth in the second half, starting this half. That goes into '26 and '27, and we have not seen any kind of slowdown in that or their plans with the new administration.

當然。是的。如您所知，他們實施了非常積極的市場進入計劃，以利用 Title II 的機會。我們認為，從今年開始，這些計劃將促進下半年的實際成長。這將持續到26年和27年，我們沒有看到新政府的計劃或進程有任何放緩。

Got it. And then maybe just last question for me. That statement that was put out on February 5 that you noted in the prepared remarks. I guess is that consistent? Can you give us any like historical basis for when these entities put out this type of information? Is that kind of what the customers ultimately follow moving forward? Or how should we think about how that statement may influence customer activity here going forward?

知道了。這也許就是我的最後一個問題了。您在準備好的發言稿中提到了 2 月 5 日發布的該聲明。我猜這是一致的嗎？您能否為我們提供這些實體發布此類資訊的歷史依據？這就是客戶最終會遵循的嗎？或者我們應該如何思考該聲明將來會如何影響客戶活動？

This is for the federal government. I don't know if any of us have seen what is currently happening in the new administration. So there's no real benchmark for this. But this is -- those statements from OPM are new, and I don't think we have any context historically of those. But we haven't seen -- just broadening out here, we haven't seen anything saying disability rights are at risk.

這是聯邦政府的職責。我不知道我們是否有人看到新政府目前正在發生的事情。因此，對此沒有真正的基準。但這是——OPM 的這些聲明是新的，我認為我們沒有任何歷史背景。但從更廣泛的角度看，我們還沒有看到任何消息稱殘疾人的權利受到威脅。

Actually, we're seeing the opposite. The recent statement from OPM said that the previous administration conflated DEI with accessibility and that accessibility should never have been lumped into DEI. So what they're going after, to me, seems to be what they view as discriminatory hiring practices, not disability rights. I haven't seen anyone talking about getting rid of curb cuts or wheelchairs or accessibility for websites.

事實上，我們看到的情況恰恰相反。OPM 最近發表的聲明表示，前政府將 DEI 與無障礙混為一談，而無障礙不應該被歸類在 DEI 之中。因此，在我看來，他們所追求的似乎是他們所認為的歧視性招募行為，而不是殘疾人權利。我還沒看到有人談論取消路緣坡道、輪椅或網站無障礙設施。

Zach Cummins, B. Riley Securities.

康明斯 (Zach Cummins)，B. Riley Securities。

Yeah. And David, appreciate you powering through. I hope you feel better soon from the flu. Just starting off. On the Enterprise side, I mean, can you speak about just the trends that you're seeing there? I know that's been a pretty big bright spot throughout 2024. So just any update on trends on that Enterprise channel and any potential investments you're thinking of making there as we go throughout 2025.

是的。大衛，感謝你的堅持。我希望你的流感很快就能好轉。剛開始。在企業方面，您能談談您在那裡看到的趨勢嗎？我知道這是整個 2024 年的一個相當大的亮點。因此，我們只是就企業通路的趨勢進行更新，以及您在 2025 年考慮在那裡進行的任何潛在投資。

Yeah. Zach, I can take that. We are seeing strong growth in Enterprise. We're seeing record leads, as David mentioned, and we're seeing close rates improving. So that's been a good channel. I know we invested in that in the beginning in 2024 further, and we are seeing good results from the Enterprise channel. So yeah, feeling good there. We also are seeing growth from reseller and decent growth overall on the reseller side, and we expect both to contribute to 2025.

是的。札克，​​我可以接受。我們看到企業正在強勁成長。正如戴維所提到的那樣，我們看到了創紀錄的領先優勢，我們看到收盤價正在提高。這是一個很好的管道。我知道我們在 2024 年初就對此進行了進一步投資，並且我們從企業管道看到了良好的表現。是的，感覺很好。我們也看到經銷商的成長以及經銷商方面整體的良好成長，我們預計兩者都將為 2025 年做出貢獻。

Got it. And my one follow-up question is really just around the European accessibility opportunity. David, can you speak to -- have you just seen a pickup in terms of inbound demand? Or just what are some of the early leading indicators that you're seeing with the deadline fastly approaching here in the coming months?

知道了。我的一個後續問題其實只是有關歐洲無障礙機會。大衛，您能談談——您是否剛剛看到入境需求有所回升嗎？或者，隨著未來幾個月最後期限的臨近，您看到了哪些早期領先指標？

Yeah. It's a really exciting opportunity with the EU. It's not often that you see a mandate for digital accessibility happening in a whole continent. So we already have a couple of folks in place. We're seeing pipelines build pretty dramatically right now.

是的。這對於與歐盟合作來說是一個真正令人興奮的機會。在整個大陸實施數位化無障礙要求的情況並不常見。我們已經安排好幾個人了。我們現在看到管道建設正在相當迅速地進行。

We're seeing deals going from lead to SAD to close one. So that is happening. And we expect a lot more momentum to continue this year as the year progresses. I haven't modeled in a lot of revenue for the year, but we believe it can really exceed to the upside if we execute.

我們看到交易正從線索到 SAD 再到成交。這就是正在發生的事情。我們預計，隨著時間的推移，今年將繼續保持更加強勁的勢頭。我沒有為今年的收入建模，但我們相信，如果我們執行的話，它確實可以超出預期。

Richard Baldry, Roth Capital Partners.

羅斯資本合夥公司的理查德·鮑德里 (Richard Baldry)。

Can you talk about any activities around adding new partners, either in the US or maybe Europe's more active because of sort of the approaching deadline? How do we think about your ability to get increase to leverage sales over time? Thanks.

您能否談談有關增加新合作夥伴的任何活動，無論是在美國還是歐洲，由於截止日期臨近而更加活躍？我們如何看待您隨著時間的推移提高銷售額的能力？謝謝。

In the EU, we're speaking to a number of partners at the moment. So I would expect that there'll be additional partners we add over time there.

在歐盟，我們目前正在與一些合作夥伴進行談判。因此我希望隨著時間的推移我們會有更多的合作夥伴。

And overall, how would you view sort of the balance or expected near-term balance between buybacks versus debt reductions? The stock pulled back this hard. Do you think it's more on the buyback side? Or how do you think about that?

整體而言，您如何看待回購與減債之間的平衡或預期的近期平衡？股票回調如此劇烈。您認為這更多的是回購方面嗎？或者您對此有什麼看法？

Yeah. As we mentioned on the call, we do expect free cash flow to kind of continue into 2025 and improve. And we do like the idea of a buyback as an attractive way to use capital. I do think we will balance those and do those -- do its best in the best interest of shareholders. But as we mentioned in the call, we did put out a buyback out there for -- to use that as an opportunity.

是的。正如我們在電話會議中提到的那樣，我們確實預計自由現金流將持續到 2025 年並有所改善。我們確實喜歡回購的想法，認為這是一種有吸引力的資本利用方式。我確實認為我們會平衡這些並盡力為股東謀取最大利益。但正如我們在電話會議中提到的那樣，我們確實推出了回購計劃，以利用這個機會。

Right. We're going to generate quite a bit of cash as the year goes on. So I think it'd probably be a pretty good use of money to buy back stock, especially around current levels. Last time we bought, it was around $5, and the business is a lot better now today than back then. We're generating a lot more cash, and so we think it's a good use of proceeds.

正確的。隨著時間的流逝，我們將會產生相當多的現金。因此我認為回購股票可能是一種很好的資金利用方式，尤其是在當前水準。我們上次買的時候價格大約是 5 美元，現在的生意比那時好多了。我們正在產生更多的現金，因此我們認為這是收益的良好用途。

And last for me. I'm not sure if you already addressed this, but any discussion on retentions or gross retention, net retention, anything like that for '24 compared to maybe '23? Thanks.

對我來說是最後一次。我不確定您是否已經解決了這個問題，但是有沒有關於留存率、總留存率、淨留存率的討論，或者 24 年與 23 年相比有什麼不同？謝謝。

I'll let Kelly take that, but I think it's been pretty similar overall, pretty high retention rates generally. Our GRR is around the 90% range overall.

我讓凱利來接受這一點，但我認為總體而言非常相似，總體而言保留率相當高。我們的 GRR 總體在 90% 左右。

Yeah, I think that's fair. I think we've continued to see good GRR and NRR metrics out there. I don't think a notable change year over year. I think in general, we just held solid throughout.

是的，我認為這很公平。我認為我們繼續看到良好的 GRR 和 NRR 指標。我認為同比去年並沒有顯著的變化。我認為總體而言，我們始終保持著穩健的勢頭。

Right. Maybe last for me. If Europe was to sort of start moving faster than you currently anticipate, what -- are there any sort of tougher friction points to keep up with that? What would be the hardest part to keep up with that? Thanks.

正確的。對我來說這也許是最後一次了。如果歐洲的發展速度比您目前預期的要快，那麼，是否存在更大的摩擦點來跟上這一步伐？堅持下去最困難的部分是什麼？謝謝。

I didn't hear the first part of the question, sorry.

抱歉，我沒有聽清楚問題的第一部分。

Yeah, sorry. If Europe was to pick up maybe faster than you thought, what would be the toughest sort of friction point to keep up with that? Or do you feel like you're well scaled to keep up to any acceleration that's sort of a relatively straightforward ability to scale?

是的，抱歉。如果歐洲的復甦速度可能比您想像的要快，那麼最難跟上的阻力點是什麼？或者您覺得自己已經具備了跟上任何加速的能力，這是一種相對簡單的擴展能力？

Always hiring good salespeople. You're going to have the best product, but you really need great salespeople to sell that product. So that's always a challenge. And you're not going to hit 100%. I think the best people probably hit around 70%, 75% when they hire. So that is the continuous challenge. It's always hiring of salespeople, and that would be the friction point.

總是僱用優秀的銷售人員。您將擁有最好的產品，但您確實需要優秀的銷售人員來銷售該產品。所以這始終是個挑戰。而且你不可能達到 100%。我認為最優秀的人才在招募時大概能達到 70% 到 75% 左右。所以這是一個持續的挑戰。它總是僱用銷售人員，而這可能是摩擦點。

George Sutton, Craig Hallum.

喬治·薩頓、克雷格·哈勒姆。

David, I appreciate the thought about GDPR in terms of how that rolled out. So with that as context, as we're talking about 18% guided growth for 2025, as we look out into '26, my assumption is that you would anticipate an acceleration. But I wanted to get your thoughts on that.

戴維，我很欣賞你對 GDPR 實施方式的思考。因此，在這樣的背景下，當我們談論 2025 年 18% 的指導成長率時，當我們展望 26 年時，我的假設是您會預期到加速。但我想聽聽你對此的看法。

I think that's fair. I don't think we're going to give any numbers right now, but I think that's fair. And also, just no one's asked us, but I'll say it. When determining the guidance, we consider a few factors. And right now, we are considering the economy.

我認為這是公平的。我認為我們現在不會給出任何數字，但我認為這是公平的。而且，雖然沒有人問過我們，但我還是要說。在確定指導時，我們會考慮一些因素。現在，我們正在考慮經濟問題。

Economic conditions seem like they could get a little worse here with all the talk of tariffs and federal budget cuts. So I don't think we're calling for a deep recession, but I think it's prudent to incorporate some slowdown in how we're thinking about building models.

由於關稅和聯邦預算削減的討論，這裡的經濟狀況似乎可能會變得更糟。因此，我認為我們不會迎來深度衰退，但我認為在我們建立模型時考慮一些經濟放緩是明智之舉。

I'm sure you're hearing other companies say the same thing. I mean software has been tough now since 2022. You've seen a lot of tightness there. We've been outgrowing the accessibility market in many software companies while improving our metrics, but I thought it would be helpful to give that context of how we're arriving at the guidance.

我確信你也聽到其他公司說同樣的話。我的意思是，自 2022 年以來，軟體一直很困難。你已經看到那裡有很多緊張的情況。在改進我們的指標的同時，我們的成長速度已經超越了許多軟體公司的可訪問性市場，但我認為，說明我們如何得出指導意見會很有幫助。

Got you. So relative to the DOJ enforcements of the new rules, any sort of feedback in terms of what you've been hearing? Are we still too early? I think that becomes an important characteristic of the story.

明白了。那麼，相對於司法部對新規則的執行，您聽過什麼回饋嗎？我們是否還太早了？我認為這成為了這個故事的重要特徵。

I don't think they're going to enforce. I think they leave the rule on the books. And I think it's private litigation. And we've already seen the first case very recently in Louisiana on this. And so I think it's going to be private enforcement. I believe it was Louisiana, but we have to look that up. But I think that will be the driver, just like website accessibility on Title III.

我認為他們不會強制執行。我認為他們保留了該規則。我認為這是私人訴訟。我們最近在路易斯安那州已經看到了第一例此類病例。所以我認為這將是私人執法。我相信那是路易斯安那州，但我們必須檢查一下。但我認為這將成為驅動因素，就像第三章中的網站可訪問性一樣。

Okay. And then finally, you had made the acquisition of ADA Site Compliance, which gave you an audit capability. I'm just curious, has that been rolled out? Are you seeing more cases where you're adding an audit to your opportunity?

好的。最後，您收購了 ADA Site Compliance，這為您提供了審計能力。我只是好奇，這已經推出了嗎？您是否看到越來越多為您的機會添加審計的案例？

We've had audit capability for a long time. Are we upselling customers? Yes. That is the goal and that will be over the next year. So as the contracts roll off, Kelly, anything to add to that?

我們早就具備審計能力了。我們是否在向顧客追加銷售？是的。這就是我們的目標，將在明年實現。那麼，隨著合約的到期，凱利，還有什麼要補充的嗎？

No, I think that's right. Just on ADA Site Compliance in general, we have integrated them quite rapidly. So we have the teams integrated. We're moving customers over to AudioEye contract. That's going well.

不，我認為是這樣。就《ADA 站點合規性》總體而言，我們已經相當迅速地對其進行了整合。這樣我們就將團隊整合在一起了。我們正在將客戶轉移至 AudioEye 合約。一切進展順利。

We're seeing good upsells there. So more of acquisitions because of their customers, and we think they're good fit with AudioEye. And from what we're seeing to date, it's trending to what we expected for that acquisition, which is great.

我們看到那裡的銷售成長勢頭良好。因此更多的收購是因為他們的客戶，我們認為他們與 AudioEye 非常契合。從我們目前看到的情況來看，此次收購的趨勢符合我們的預期，這是非常好的。

Scott Buck, H.C. Wainwright.

斯科特·巴克，H.C.溫賴特。

I believe this was the highest level -- quarterly level of selling and marketing expense in about three years. I'm curious if you could give a little color on what kind of return you're seeing on the increased marketing spend.

我認為這是大約三年來季度銷售和行銷費用的最高水平。我很好奇，您能否稍微介紹一下增加行銷支出會帶來什麼樣的回報。

Yes. Marketing spend and selling expense, we can ramp as we're seeing ROI. And so as I mentioned, we're seeing really good leads come through. We're seeing great close-run rates come through. And so we thought it was the right thing to do to invest in selling and marketing.

是的。根據投資回報率，我們可以增加行銷支出和銷售費用。正如我剛才提到的，我們看到了非常好的線索。我們看到了極高的成交率。因此我們認為投資銷售和行銷是正確的做法。

And so I think we'll continue to invest in selling and marketing in 2025 but make sure that ROI is there. So essentially additional investment because we see good returns for that, and we'll continue to do that as long as we see those returns.

因此，我認為我們將在 2025 年繼續投資於銷售和行銷，但確保投資回報率。因此本質上是額外投資，因為我們看到了良好的回報，而且只要我們看到這些回報，我們就會繼續這樣做。

Great. And assuming you see even stronger ROI in the first half of '25, could you potentially push more money into selling and marketing and perhaps we -- at the expense, I guess, of adjusted EBITDA margins? Just kind of getting -- trying to get a sense of how you're prioritizing capital allocation, right, reinvesting in the business. It sounds like buybacks are an option. Just trying to get a better sense of what you're thinking about.

偉大的。並且假設您在 25 年上半年看到更強勁的投資回報率，您是否有可能將更多資金投入到銷售和行銷中，也許我們 - - 以犧牲調整後的 EBITDA 利潤率為代價？只是想了解你是如何優先考慮資本配置，對吧，對業務進行再投資。聽起來回購是一種選擇。只是想更了解你的想法。

Yeah. I think we've been able to find that efficiency in selling and marketing. So I do think we'll keep investing in it, but we want to make sure that our ROI is there. So potentially, we could invest more, but I think we would expect to see additional revenue come with that. But I think we'll balance that, but we want to be strategic, and we do like that adjusted EBITDA margin. And so we'll balance both. But I think we could keep investing in sales and marketing if we see the ROI.

是的。我認為我們已經能夠在銷售和行銷中找到這種效率。因此我確實認為我們會繼續投資，但我們希望確保我們的投資報酬率。因此，我們可能會投入更多，但我認為我們希望看到隨之而來的額外收入。但我認為我們會平衡這一點，但我們希望有策略性，我們確實喜歡調整後的 EBITDA 利潤率。所以我們會平衡兩者。但我認為如果我們看到投資回報率，我們可以繼續在銷售和行銷方面進行投資。

EBITDA, a little bit of a lag, but EBITDA would go up with more investment if we see those metrics.

EBITDA 有點滯後，但如果我們看到這些指標，EBITDA 將隨著投資的增加而上升。

At this time, this concludes our question-and-answer session. I'd now like to turn the call back over to Mr. Moradi for his closing remarks.

到此，我們的問答環節就結束了。現在我想將電話轉回給莫拉迪先生，請他作最後發言。

Thank you, everyone, for putting up with my voice today. Appreciate your time, and we'll see you on the next call.

謝謝大家今天忍受我的聲音。感謝您的時間，我們將在下次通話中再見。

Thank you. And before we conclude today's call, I would like to remind everyone that a recording of today's call will be available for replay via a link available in the Investor Relations section of the company's website. Thank you for joining us today for AudioEye's fourth-quarter and full year 2024 earnings conference call. You may now disconnect.

謝謝。在我們結束今天的電話會議之前，我想提醒大家，今天的電話會議錄音可以透過公司網站投資者關係部分提供的連結重播。感謝您今天參加 AudioEye 2024 年第四季和全年財報電話會議。您現在可以斷開連線。