At the Integrated Systems Europe (ISE) 2025 conference held from February 4–7 in Barcelona, Ai-Media provided an exclusive first look at their upcoming real-time voice translation technology, LEXI Voice. This innovative solution is designed to transform the industry upon its release later this year.

Check the video:

https://www.linkedin.com/posts/ai-media-tv_ise-ise25-ise2025-activity-7293379777544036352-Gvqb

I note this morning EEG Video holdings LLC principal Philip McLaughlin sold 5.3m shares for around $4.1m. EEG is no longer substantial, though looks like it still has around 9.3m AIM shares.

 89298.pdf

Philip sold EEG, the AIM company maker (so far anyway) in April 2021 for around $34m.  To fiancé the purchase AIM raised capital at 80 cents.

It is interesting his recent sale is at around 78 cents, so maybe he is just getting some of his sale proceeds back. I would not read too much into it all. Though judging by his pile at Long Island maybe he needs the money to pay his gardener.

CEO Tony Abrahams has purchased another 312,500 shares on market @$0.80 (value $250,275).

That’s about half a million dollars worth of shares this month from the CEO

Understanding the use cases of a company’s products and services can be challenging when we don’t interact with them directly. I thought I'd highlight a recent use case of a type of event Ai-Media plays a role in with their captioning products and services.

AWS recently hosted their annual re:Invent 2024 event in Las Vegas. I’ve been watching a couple of the keynotes - mainly around the new AI models they're launching. It was a bonus to be able to catch some of the live captioning provided by Ai-Media’s LEXI AI captioning services. The quality is very good and with delays of just 2-3 seconds.

The event videos are available on Youtube, and you can catch glimpses of the captions at certain camera angles to evaluate their quality: https://www.youtube.com/watch?v=LY7m5LQliAo. Turning on the captions in Youtube will display the LEXI generated captions with all the timing synced up - with no delay.

To put the scale and complexity into perspective, re:Invent had 70k attendees, with multiple simultaneous stages and overflow rooms, live streaming online and over Youtube. Beyond the main stages, the event featured smaller presentations. In fact the conference had 40+ rooms with in-room live captioning.

These types of events are huge, with lots of competing demands from large in-person crowds and live-streaming viewers worldwide. Lots of different presentations going on simultaneously, and very high stakes. And for Ai-Media’s range of encoders, iCap cloud and LEXI AI captioning service - this is their bread-and-butter.

In fact, AWS is now lugging around 51 Ai-Media encoders to some of their biggest events:

Hopefully this provides an idea of the types of areas Ai-Media is playing in.

Sources:

• https://www.linkedin.com/pulse/reinvent-streaming-recap-2024-gabriel-spence-aftac/?trackingId=LzVfwEqPS4aY043ZaHgwVA%3D%3D
• https://www.linkedin.com/feed/update/urn:li:activity:7270979056978825216/
• https://www.linkedin.com/pulse/training-ai-make-live-experiences-more-accessible-taylor-wilkins-gep2c/?trackingId=IuMtFII9SZapBXKGvi2oQA%3D%3D

The market seems to like what came out of the AGM.

Some positive highlights after skimming the ASX announcement: Technology revenue grew by 37% to $32.9m and the gross margin is impressive at 85%. Tech revenue now accounts for 50% of total revenue. Goal of 80% tech revenue by the end of 2025. Some of the hypergrowth US tech stocks I hold can't match this and their P\S ratio are eye-watering compared to AI-Media.

There's an ambitious but clear path to growth with a goal of $60m EBITDA in 5 years (Currently $4m).

• Strong momentum in Europe with an ITV partnership in the UK and 100 plus encoders sold across 14 countries which they describe as a "moat" as the encoder inserts itself into the customers' workflow (55 sold last year across 3 countries).
• LEXI 3 now surpassing human captioning accuracy and looking at the voice market that's supposedly a TAM of $69b vs $2b for captioning (Always a bit skeptical about TAM but you'd think voice is several times larger at least).

There's definitely execution risk here although CEO Tony Abrahams thinks this is priced in already in the share price (bold statement, but anyway). They'd like to grow the Tech revenue by 35% annually over the next 5 years so there's no lack of ambition. Both R&D ($7m-$8m) and sales and marketing ($13m-$16m) costs have grown but not unreasonably so I think.

Certainly lots of potential, good strategic vision and outline. At the same time there are many things to watch out for along the way as the execution and other risks are by no means small. An EBITDA of $60m in FY2029 would make today's market cap of $150m seem very reasonable no matter how you choose to discount that back. Even with some inevitable setbacks between now and then you can easily find ways of justifying today's price I think.

The Strawman interview with the CEO a few months back was really great and informative so do yourself a favour and watch that if you're interested in the business