Fourth quarter revenue grew 39% year-over-year to $116 million Posts record full year revenue of $421 million, up 36% year-over-year, and ARR growth accelerates to 43% year-over-year BETHESDA, Md., April 22, 2024 (GLOBE NEWSWIRE) -- iLearningEngines, Inc. (NASDAQ:AILE) ("iLearningEngines", "ILE", or "the Company"), a leader in AI-powered learning automation and information intelligence for corporate and educational use, today announced financial results for the fourth quarter and fiscal year ended December 31, 2023. "The fourth quarter capped off a strong 2023," said Harish Chidambaran, Chief Executive Officer of iLearningEngines. "During 2023, we expanded our core markets, grew end customers and licensed users, achieved 36% revenue growth year-over-year, and reached $447 million of annual recurring revenue . We are pleased to be carrying this business momentum into the first half of 2024." Key Fourth Quarter & Full Year 2023 Financial Highlights Revenue – fourth quarter 2023 revenue of $116 million increased 39% year-over-year. Full year 2023 revenue of $421 million increased 36% year-over-year. Annual Recurring Revenue ("ARR")1 – ARR of $447 million increased 43% year-over-year. Net Dollar Retention ("NDR")1 – NDR of 125% in 2023 increased compared to 117% in 2022. Net Loss – Fourth quarter GAAP net loss of $4 million. Full year 2023 GAAP net loss of $4 million. Adjusted EBITDA & Adjusted EBITDA Margin2 – Fourth quarter 2023 adjusted EBITDA of $10 million, and full year 2023 adjusted EBITDA of $23 million. Adjusted EBITDA margin expanded by 240 basis points in Q4 2023 compared to Q4 2022, and 85 basis points in full year 2023 compared to full year 2022. _____________________________1 For additional information regarding ARR and NDR, please see the section titled "Certain Definitions" at the end of this press release.2 Adjusted EBITDA and Adjusted EBITDA margin are a non-GAAP financial measures. For descriptions and reconciliations of our non-GAAP financial measures to their most comparable GAAP financial measures, please see the section titled "Non-GAAP Financial Measures" and the tables at the end of this press release. Financial Summary & Operating Metrics (In millions) - Fourth Quarter 2023 Metric Q4 2023 Q4 2022 Δ Y/Y Revenue 116   83   39 % ARR 447   314   43 % Gross profit 80   58   38 % Net (loss) income (4 ) 8   NM   Adjusted EBITDA 10   3   NM   Adjusted EBITDA Margin 8.6 % 3.5 % NM   Financial Summary & Operating Metrics (In millions) - Full Year 2023 Metric FY 2023 FY 2022 Δ Y/Y Revenue 421   309   36 % ARR 447   314   43 % Gross profit 288   215   34 % Net (loss) income (4 ) 11   NM   Adjusted EBITDA 23   13   NM   Adjusted EBITDA Margin 5.6 % 4.1 % NM   Recent Business Highlights Strong customer and partner growth includes adding three new value-added resellers ("VARs") in 2023, bringing total Contracted Customers to 29. Reached more than 4.4 million licensed users at the end of 2023. On April 16, 2024, successfully completed a business combination (the "Business Combination") transaction with Arrowroot Acquisition Corp. ("Arrowroot") and began trading as a public company under the ticker "AILE" on April 17, 2024. Appointed Matthew Barger, Ian Davis, Bruce Mehlman, Michael Moe, and Tom Olivier to its Board of Directors. Finished 2023 with 508 employees globally, including 98 full-time employees and 410 contractors. "Our differentiated AI solutions enable customers to productize their institutional knowledge and drive mission-critical business outcomes," continued Chidambaran. "In 2024, we intend to continue to invest heavily in R&D, including our industry-specific datasets, while we also execute our sales strategy to drive value for new and existing customers." The Company intends to host a conference call in May 2024 to discuss first quarter 2024 financial results. About iLearningEngines iLearningEngines is a leading provider of cloud-based, AI driven, learning and workforce automation solutions mission-critical training for enterprises. iLearningEngines has consistently ranked as one of the fastest growing companies in North America on the Deloitte Technology Fast 500. iLearningEngines' AI and Learning Automation platform is used by enterprises to productize their enterprise knowledge for consumption throughout the enterprise. The intense demand for scalable outcome-based training has led to deployments in some of the most regulated and detail-oriented vertical markets, including Healthcare, Education, Insurance, Retail, Oil & Gas / Energy, Manufacturing and Government. iLearningEngines was founded by Harish Chidambaran in 2010, and is headquartered in Bethesda, MD with international offices in Dubai, UAE and Trivandrum, Pune and Kochi, India. For more information about iLearningEngines, please visit: www.ilearningengines.com. IR & Press ContactsInvestor Contact:Kevin Hunt, ICR Inc. Press Contact:Dan Brennan, ICR ILEARNINGENGINES, INC. AND SUBSIDIARIESCONSOLIDATED INCOME STATEMENT(In thousands, except share amounts)     Year Ended December 31,   Amount Change   % Change   2023       2022       2021       2023 vs 2022     2022 vs 2021     2023 vs 2022   2022 vs 2021 Revenue   $ 420,582       $ 309,170       $ 217,867       $ 111,412       $ 91,303       36.0 %   41.9 % Cost of revenue     132,154         93,890         64,834         38,264         29,056       40.8 %   44.8 % Gross profit     288,428         215,280         153,033         73,148         62,247       34.0 %   40.7 % Operating expenses:                                                     Selling, general, and administrative expenses     140,897         105,966         74,434         34,931         31,532       33.0 %   42.4 % Research and development expenses     128,544         97,436         70,913         31,108         26,523       31.9 %   37.4 % Total operating expenses     269,441         203,402         145,347         66,039         58,055       32.5 %   39.9 % Operating income     18,987         11,878         7,686         7,109         4,192       59.9 %   54.5 % Other (expense) income:                                                     Interest expense     (6,274 )       (6,614 )       (5,047 )       340         (1,567 )     5.1 %   31.0 % Change in fair value of warrant liability     (771 )       248         (83 )       (1,019 )       331       NM     NM   Change in fair value of convertible notes     (14,147 )       -         -         (14,147 )       -       NM     NM   Other expense     (45 )       (21 )       (3 )       (24 )       (18 )     NM     NM   Total other expense, net     (21,237 )       (6,387 )       (5,133