AudioEye, Inc. (NASDAQ:AEYE) Q3 2023 Results Conference Call November 2, 2023 4:30 PM ET

Company Participants

David Moradi - CEO

Kelly Georgevich - CFOO

Conference Call Participants

George Sutton - Craig-Hallum

Zach Cummins - B. Riley FBR

Scott Buck - H.C. Wainwright

Operator

Good afternoon and welcome to AudioEye's Third Quarter 2023 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 publishing analysts. 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.

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. Actual results could materially differ because of factors discussed in today's press release; in 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 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 beliefs only as of the date hereof. AudioEye does not undertake any duty to update or correct any forward-looking statements.

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 posted in the Investor Relations section of its website at www.audioeye.com.

Now I would like to turn the call over to AudioEye's Chief Executive Officer, Mr. David Moradi.

Sir, please proceed.

David Moradi

Thank you, operator. Welcome, everyone, and thank you for joining us. We've been hard at work and are pleased to deliver several exciting announcements: first, record annual recurring revenue or ARR of $30.5 million, an increase of approximately $800,000 sequentially, representing the largest sequential growth in six quarters; second, revenue of $7.84 million, representing the 31st sequential quarter of record revenue; record reported non-GAAP profitability of $300,000 in the third quarter, ahead of expectations of $100,000. Lastly, we remain on track to deliver positive free cash flow in the fourth quarter. Kelly will discuss the financial performance in more detail shortly.