AudioEye's Latest Earnings Call: Contradictions in Market Growth, AI Integration, and Pipeline Trends

Record Revenue and Sequential Growth:
- AudioEye achieved $9.9 million in revenue for Q2 2025, marking the 38th consecutive quarter of growth, with sequential ARR growth of $1.1 million.
- The growth was driven by strong demand for enterprise business in the U.S. and EU, and further growth in the company's partner and marketplace business.

Expansion into the EU and Enforcement of EAA:
- AudioEye is expanding its presence in the EU, anticipating significant demand due to the recently implemented European Accessibility Act (EAA).
- The EAA applies to companies operating in the EU with more than 10 employees or annual revenue exceeding EUR 2 million, which could lead to substantial fines for noncompliance.

Integrating Acquisitions and Churn Impact:
- AudioEye is accelerating the integration of recent acquisitions, leading to the phaseout of lower margin revenue from acquired companies.
- This has resulted in churn from customers acquired through acquisitions in the first half of 2025, with an estimated $1 million to $1.5 million in churn for acquisition-related customers.

Guidance for Future Revenue and EBITDA:
- AudioEye updated its 2025 full-year revenue guidance to between $40.3 million and $40.7 million, reflecting the phaseout of certain acquisition-related customers.
- The company reduced its adjusted EBITDA guidance to between $8.9 million and $9.1 million, aiming for high 20s in adjusted EBITDA margins by the fourth quarter of 2025.