TUCSON, Ariz. - AudioEye, Inc. (Nasdaq: NASDAQ:AEYE), a company focused on digital accessibility solutions with a market capitalization of $333 million, today announced a secondary offering of its common stock, to be sold by certain stockholders. The company's stock has delivered remarkable returns, surging over 470% in the past year according to InvestingPro data. The offering includes a 30-day option for underwriters to purchase additional shares at the public offering price, minus underwriting discounts and commissions, subject to market conditions.
Needham & Company is serving as the Sole Book-Runner, with Roth Capital Partners (WA:CPAP) acting as Lead Manager for the transaction. The specific selling stockholders are set to receive all net proceeds from this offering. AudioEye itself will not be selling any shares nor will it receive proceeds from this event.
The offering is being conducted under a shelf registration statement, which was declared effective by the Securities and Exchange Commission (SEC) on February 13, 2024. Details regarding the offering are available in a prospectus supplement filed with the SEC.
AudioEye's mission is to create an inclusive digital future, employing AI technology, expert guidance, and feedback from the disability community. The company, which holds 23 US patents, caters to over 126,000 customers, including well-known brands such as Samsung (KS:005930) and Calvin Klein. With impressive gross profit margins of nearly 79% and analyst price targets ranging from $32.50 to $37.00, the company shows strong operational efficiency. InvestingPro subscribers can access 12 additional key insights about AudioEye's financial health and growth prospects through the comprehensive Pro Research Report.
As with all offerings, this announcement does not constitute an offer to sell or a solicitation to buy. Such actions would only be lawful after proper registration or qualification under the securities laws of any applicable state or jurisdiction.
Investors are cautioned regarding forward-looking statements in the press release, which are not historical facts and are subject to risks and uncertainties that could cause actual results to differ from expectations. While the company isn't currently profitable, InvestingPro analysis indicates analysts expect profitability this year, though the stock currently trades above its calculated Fair Value.
This article is based on a press release statement from AudioEye, Inc.
In other recent news, AudioEye has been the subject of several notable developments. The company reported a record revenue of $8.9 million in its third quarter of 2024 earnings call, along with an impressive adjusted EBITDA of $2 million, marking a 23% margin. Looking ahead, AudioEye projects its revenues to be in the range of $9.7 million to $9.8 million for the fourth quarter of 2024, indicating a 23.9% growth compared to the same period the previous year.
H.C. Wainwright maintained a Buy rating on AudioEye shares and upgraded the price target to $37.00 from $28.00, following the company's strong financial performance. The analyst at H.C. Wainwright noted AudioEye's high gross margin of approximately 80% and potential for further growth, fuelled by the company's strategy of engaging in reseller partnerships within the K-12 education sector and small to medium-sized government agencies.
In addition to its strong financial performance, AudioEye has also fortified its balance sheet through its At-the-Market (ATM) offering program, providing flexibility for potential mergers and acquisitions. The company's recent acquisition of ADA Site Compliance and strategic partnerships with Finalsite and CivicPlus are expected to significantly boost revenue growth and enhance AudioEye's product offerings. These recent developments reflect a promising outlook for AudioEye's financial health and future prospects.
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