AudioEye, Inc. (NASDAQ:AEYE) Q3 2023 Earnings Call Transcript

Scott Buck: Just a couple for me. First one, on gross margin. So nice year-over-year expansion, but it looks like it’s kind of stalled out here in the kind of just last couple of quarters. Are we at the ceiling here for gross margin, or do you think you have a little bit more room to push higher?

Kelly Georgevich: We are happy to see gross margin grow year-over-year. I think we have proven we can find efficiencies in cost of revenue. We did that over the last year. As we continue to grow revenue, we expect to continue to see efficiencies. And we do think there is the ability to continue to grow gross margins going forward.

Scott Buck: Great. Second one for me: You talked about R&D expense coming down a bit over the next few quarters. Is that due to cash constraints? Or is that more intentional and just in terms of what you need to move the business forward?

David Moradi: Yes, we’ve invested a lot in R&D over the past year, really improved the software. And new products are out there, so we expect R&D is in a good place. And investments should come down as a percentage of revenue over the next few quarters, more in line with industry metrics, which would be around 25% in [SaaS].

Scott Buck: And I’m sorry. You said you were at 31% in the quarter. Is that correct?

David Moradi: Correct.

Operator: At this time, this concludes our question-and-answer session. I’d now like to turn the call back over to Mr. Moradi for his closing remarks.

David Moradi: Thank you for joining us today. As always, I want to thank our employees, partners and investors for their continued support. We look forward to updating you on our next call.

Operator: Thank you for joining us today for AudioEye’s third quarter 2023 earnings conference call. As always, we would like to thank our employees and stakeholders, for your continued hard work and dedication. You may now disconnect.