TUCSON, Ariz. - AudioEye, Inc. (NASDAQ: NASDAQ:AEYE), a leader in digital accessibility services, has established the public offering price for a secondary sale of its shares. Certain selling stockholders are offering up to 1,250,000 shares at $24.00 each, excluding underwriting discounts and commissions. The transaction is anticipated to complete on December 6, 2024, pending standard closing conditions. The offering comes amid an impressive year for AudioEye, with the stock delivering a remarkable 401% return year-to-date, according to InvestingPro data.
The underwriters, led by Needham & Company as the sole book-runner and supported by Roth Capital Partners (WA:CPAP) as the lead manager, have the option to purchase an additional 187,500 shares within a 30-day period. The proceeds from this offering will go directly to the selling stockholders, with AudioEye not selling any shares nor receiving any financial benefit from this offering.
The sale is being conducted under a shelf registration statement previously filed with and declared effective by the Securities and Exchange Commission on February 13, 2024. Prospective investors can access the preliminary prospectus supplement and accompanying prospectus from the SEC's website or directly from the underwriters.
AudioEye's mission is to ensure the inclusivity of the digital landscape, leveraging AI automation alongside expert guidance and feedback from the disability community. The company, holding 23 US patents, serves a broad client base, including high-profile names like Samsung (KS:005930), Calvin Klein, and Samsonite. AudioEye offers a comprehensive solution for digital accessibility, providing round-the-clock monitoring, automated fixes, expert testing, developer tools, and legal protection. InvestingPro data reveals the company maintains impressive gross profit margins of 79% and analysts expect profitability this year. For deeper insights into AudioEye's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
This press release contains forward-looking statements, including expectations regarding the offering's closing date. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Notably, InvestingPro analysis indicates the stock is trading above its calculated Fair Value, with analyst price targets ranging from $32.50 to $37.00 per share. InvestingPro subscribers have access to 12 additional key insights about AudioEye's financial position and market outlook.
The information provided here is based on a press release statement issued by AudioEye, Inc.
In other recent news, AudioEye, Inc. announced a secondary offering of its common stock, to be sold by certain stockholders. The offering is being conducted under a shelf registration statement, which was declared effective by the Securities and Exchange Commission (SEC). Needham & Company is serving as the Sole Book-Runner, with Roth Capital Partners acting as Lead Manager for the transaction.
In terms of financial performance, AudioEye 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. The company 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.
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.
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