First quarter revenue grew 33% year-over-year to $125 million Net loss driven entirely by one-time items; Company delivers increased non-GAAP profitability year-over-year excluding one-time items BETHESDA, Md., May 16, 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 first quarter ended March 31, 2024. "The first quarter was a strong start to 2024," said Harish Chidambaran, Chief Executive Officer of iLearningEngines. "We achieved 33% revenue growth year-over-year and grew annual recurring revenue1 by 34% year-over-year to $479 million. With our business combination with Arrowroot Acquisition Corp. and related financing now complete, we believe we are well positioned to invest in continued platform growth, helping more and more customers harness AI to improve their business outcomes." First Quarter 2024 & Recent Financial Highlights Revenue – Revenue increased 33% year-over-year to $125 million. Annual Recurring Revenue ("ARR")1 – ARR increased 34% year-over-year to $479 million. Net Dollar Retention ("NDR")1 – Trailing 12-month NDR was 132% compared to 125% at March 31, 2023. GAAP Net Loss – Net loss was $25.9 million, which included one-time items of $15.1 million change in fair value of warrant liability, $5.5 million change in fair value of convertible notes, and a $10.0 million loss on debt extinguishment. Adjusted EBITDA & Adjusted EBITDA Margin2 – Adjusted EBITDA was $9 million. Adjusted EBITDA margin expanded by approximately 480 basis points in the first quarter of 2024 compared to the first quarter of 2023. Shares outstanding – As of April 16, 2024, following the closing of the Business Combination (as defined below) with Arrowroot, the Company had: (i) approximately 134.9 million shares of common stock outstanding, (ii) warrants to purchase 22,624,975 shares of common stock, consisting of 14,374,975 public warrants, each exercisable for one share of common stock at a price of $11.50 per share, and 8,250,000 private warrants, each exercisable for one share of common stock at a price of $11.50 per share, outstanding, and (iii) approximately 5.8 million restricted stock units, each convertible into one share of common stock, subject to vesting conditions, outstanding. First Quarter 2024 Unaudited Financial Summary & Operating Metrics (In millions, except percentages)   Three Months EndedMarch 31,   Metric 2024 2023 % Change Revenue 124.9 94.0 33% ARR 478.9 357.3 34% Gross profit 86.2 62.4 38% Net (loss) income (25.9) 0.5 NM Adjusted EBITDA 9.0 2.3 NM Adjusted EBITDA Margin 7.2% 2.4% NM First Quarter 2024 & Recent Business Highlights Licensed Users – As of March 31, 2024, the Company had more than 4.7 million licensed users at the end of Q1 2024, up from 4.4 million at the end of 2023. Employees – As of March 31, 2024, the Company had 529 employees, including 101 full-time employees and 428 contractors. Business Combination – As previously announced, on April 16, 2024, the Company 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. The company subsequently appointed Matthew Barger, Ian Davis, Bruce Mehlman, Michael Moe, and Tom Olivier to its Board of Directors. After giving effect to the Business Combination, and the transactions related thereto, the Company had approximately $28 million cash and cash equivalents as of April 30, 2024. About iLearningEngines iLearningEngines is a leading Enterprise AI platform company for learning and work automation. 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 knowledge driven AI solutions and use cases inside enterprises 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.   ILEARNINGENGINES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED INCOME STATEMENT (In thousands)     Three months Ended March 31,   Amount Change   % Change   (Dollars in thousands)  2024     2023    2024 vs 2023   2024 vs 2023   Revenue $        124,935     $         93,980     $             30,955     32.9%     Cost of revenue   38,714       31,551       7,163     22.7%          Gross profit   86,221       62,429       23,792     38.1%     Operating expenses:                      Selling, general, and administrative expenses   41,223       31,612       9,611     30.4%          Research and development expenses   37,099       28,582       8,517     29.8%          Total operating expenses   78,322       60,194       18,128     30.1%          Operating income   7,899       2,235       5,664     253.4%     Other expense:                      Interest expense   (1,986 )     (1,588 )     (398 )   25.1%          Change in fair value of warrant liability   (15,118 )     (280 )     (14,838 )   5,299.3%          Change in fair value of convertible notes   (5,465 )         (5,465 )   NM          Loss on debt extinguishment   (10,041 )     -       (10,041 )   NM          Other expense   -       (60 )     60     NM          Foreign exchange loss