Company Interview / AI-Media’s 99% AI revolution

Key Points:

AI-driven transformation reduces human involvement in captioning to just 1%Lexi suite annual recurring revenue grows from $1 million to $17 million since 2021Gross margins on core technology products reach 86%Global expansion to 36 countries supports 500% European growth

AI-Media Technologies (ASX:AIM) has undergone a significant transformation, shifting from a human-led to a technology-driven business since its ASX listing in 2020. Tony Abrahams states that the company's captioning operations, once reliant on thousands of employees, are now almost entirely powered by AI, with 99% of services delivered without human involvement. He highlights that the Lexi suite, including Lexi Text for live captioning and the rapidly advancing Lexi Voice for real-time language interpretation has seen annual recurring revenue soar from less than $1 million to $17 million since the 2021 acquisition of EEG. Gross margins on these technology products reportedly reach 86%. Abrahams points out how the AI has cut live captioning latency from 30 seconds to just eight seconds within a year, with ambitions to reach three seconds.

Abrahams sees the company’s scale and global expansion as key growth drivers. The shift to a SaaS-focused model now sees Ai-Media operational in 36 countries, adding 23 new markets in the last 12 months and achieving around 500% year-on-year growth in the European segment. The sales and marketing budget has increased to support this international push.

Abrahams expresses the view that the current share price of AI-Media Technologies does not fully reflect these operational improvements and growth prospects. He considers the stock undervalued, especially in light of robust R&D spend, strong EBITDA growth, and rapid scaling of technology revenue.