Audioeye Inc (AEYE) stock prices were down by 26.01% shortly after market trading commenced on August 12th, 2021. This brought the price per share down to USD$9.70 early on in the trading day.
AEYE Stock Reports Strong Q2 2021
AEYE stock reported continued sequential growth in MRR for the second quarter of fiscal 2021, with margins being maintained in the mid-70%s. Continued sequential growth in MRR is expected to continue across all recurring lines of revenue. Revenue is expected to be in the range of USD$6.1 million to USD$6.3 million for the third quarter of fiscal 2021.
Setting the Stage for Success
The company has invested heavily in its platform and workforce over the prior two quarters. It continues to lead the market with a front-running solution that combines advanced AI and human-assisted technology. This is done by certified remediation and subject matter experts. The company is in the early stages of digital accessibility and is well-positioned to capitalize on opportunities for future growth.
Additional Finances
Total revenue for the second quarter of fiscal 2021 were up 14% to hit a record USD$6 million, up from the USD$5.3 million reported in the prior-year quarter. Monthly Recurring Revenue (MRR) was up 25% as of June 30th, 2021. The 2021 quarter reported an MRR of USD$2 million, up from the USD$1.6 million reported as of June 30th, 2020. The company reported a stellar liquidity position, with cash on hand in the amount of USD$24.8 million as of June 30th, 2021. This is compared to the USD$9.1 million reported as of December 31st, 2020.
Gross Profit Breakdown
Gross profit for Q2 2021 came out to a record-breaking USD$4.5 million, representing 74.9% of total revenue for the quarter. This is up from the USD$3.7 million reported for the prior year quarter, which represented 69.6% of total revenue for the quarter. The year-over-year difference was largely driven by scale and efficiencies. These were realized from the increased platform and product investment. These investments were in line with AEYE stock’s continued drive to improve and expand the level of automation in its product offerings.
Future Outlook for AEYE Stock
AEYE stock is armed with the strength of its financial reports for the 2021 quarter. The company is keen to bounce back from its dip in share price to usher in unprecedented growth. Current and potential investors are hopeful that management will be able to leverage the resources at their disposal. This is expected to facilitate significant and sustained increases in shareholder value.
