In a world increasingly dependent on digital communication, AI-Media Technologies (ASX: AIM) is striving to enhance the way we interact with content. With a focus on AI-powered solutions that transform the landscape of captioning, transcription, and translation, AI-Media has demonstrated growth in its key financial metrics for the year ending June 30,2024. 

AIM’s total revenue stood at $66.2 million, marking a 7% increase on the previous year. This hike was driven by the Company’s technology segment, which saw a 37% increase in revenue to $32.9 million, supported by a 40% rise in revenue from its flagship LEXI solutions.

AI-Media’s gross profit increased to $42.5 million, reflecting a 15% improvement. The shift toward higher-margin technology sales contributed to an increase in gross margins to 64%, up from 60%. Technology sales accounted for 66% of the Company’s gross profit, an increase from 56%. These developments led to a 24% rise in EBITDA, reaching $4.1 million.

The Company’s operational performance was enhanced by greater use of its AI-powered LEXI product suite, which grew 36% year-on-year to 53.3 million minutes. Additionally, revenue from encoding hardware rose by 40% to $12.8 million, and iCap network usage increased by 13% to 116.8 million minutes. North America remains the Company’s largest market, contributing 65% of total revenue, primarily driven by technology sales.

Despite a decline in revenue from the Asia-Pacific, Europe, the Middle East, and Africa regions due to transitioning existing contracts to LEXI solutions, sales momentum has improved following the adoption of new encoders. 

AI-Media Co-Founder and CEO Tony Abrahams said: “FY24 has been pivotal in strengthening our position in the AI captioning and translation market, particularly through the continued and successful transition of our legacy services to an innovative suite of AI solutions under the LEXI banner.”

In the final quarter of FY24, AI-Media launched two new technology products, LEXI Recorded and LEXI DR (Disaster Recovery), to enhance its LEXI toolkit. LEXI Recorded aims to simplify and speed up the captioning of recorded content, while LEXI DR offers a technology redundancy solution, removing the need for human backup during connectivity disruptions. These products align with AI-Media’s strategy to strengthen its position in AI-powered language services.

Looking forward to FY25, AI-Media plans to focus on expanding its technology sales through three strategic initiatives: extending its product reach beyond the US to European and Asian broadcasters, increasing sales to government and enterprise customers with tailored LEXI offerings, and innovating to capture a larger share of the AI language services market. The Company aims to further develop solutions such as LEXI Audio Description, LEXI Voice, and LEXI Dubbing to support this growth.

“To remain at the forefront of the market and further advance our defensive moat, we continued to invest in sales and marketing and product development, resulting in a strong technology sales pipeline in all regions,” added Abrahams.

“As we step into FY25, we intend to continue our growth trajectory and focus on increasing our technology sales revenue by expanding in new territories and segments and further enhancing our LEXI solutions.” 

The Company reported a cash balance of $10.9 million as of June 30, 2024.