iLearningEngines Responds to Short Seller Claims and Expands AI Platform

iLearningEngines addresses short seller claims By Investing.com

BETHESDA, Md. - iLearningEngines, Inc. (NASDAQ: AILE), a company specializing in AI-driven learning and work automation for enterprises, today responded to allegations made by a short seller. CEO Harish Chidambaran stated, "It is essential to correct the egregious misstatements made by the short seller." He emphasized the company's "long-standing track record, audited financials, and significant innovation in AI for enterprise learning and work automation." The response comes as iLearningEngines seeks to clarify its business operations and reassure stakeholders of its stability and continued innovation in the market. The company, which serves over 1,000 enterprise customers globally, is known for its Applied AI platform that enables rapid deployment of AI applications across diverse industries such as Healthcare, Education, and Manufacturing. In the press release, iLearningEngines also included forward-looking statements regarding its business combination and future prospects. These statements, as per the company, are based on current management expectations and are not guarantees of future performance. They involve risks and uncertainties, including the company's ability to realize the anticipated benefits of the business combination and to continue its growth trajectory. The company's statement is a firm rebuttal to the short seller's claims, which have not been detailed in the press release. iLearningEngines maintains that its financials have been audited and that it continues to deliver AI innovation to its enterprise clients. The information provided is based on a press release statement from iLearningEngines, Inc. and is intended to present the company's position on the matter. As with all forward-looking statements, they are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected. In other recent news, iLearningEngines, an AI learning and work automation enterprise, has formed a Special Committee to investigate allegations made in a short-seller report. The company has also secured an additional $20 million in funding, supplementing its existing Loan and Security Agreement, with lenders now including Valley National Bank and East West Bank. In the wake of these developments, the company has announced significant salary increases and target bonuses for its top executives for fiscal year 2024. On another note, iLearningEngines is facing the resignation of board member Matthew Barger, with no replacement announced yet. The company has also addressed allegations from the short-seller report, promising a detailed response in the near future. These are recent developments in the company's activities, providing insights into its current financial and operational status. It is worth noting that these facts are based on past articles and press releases from iLearningEngines, and should be considered as such. In light of the recent challenges faced by iLearningEngines, Inc. (NASDAQ: AILE), and the company's efforts to reassure stakeholders, a look at the InvestingPro real-time data and InvestingPro Tips may offer additional insights into the company's current financial health and market position. According to InvestingPro data, iLearningEngines has a market capitalization of $102.38 million, signaling a relatively small cap in the tech sector. Despite the company's emphasis on innovation and growth, the data indicates a negative P/E ratio of -0.22, reflecting investor skepticism about future earnings. Additionally, the company's Price / Book ratio stands at a high 35.02 as of the last twelve months leading up to Q2 2024, suggesting that the stock may be overvalued relative to its net assets. From the perspective of InvestingPro Tips, it's noteworthy that management has been actively buying back shares, which could be a sign of confidence in the company's future prospects. However, the stock is currently trading near its 52-week low and has experienced a substantial price drop over the last year, suggesting that the market has significant concerns about the company's performance. For those interested in a deeper analysis, InvestingPro offers additional tips on iLearningEngines, including the company's cash burn rate and revenue valuation multiples. As the company navigates its current challenges, these data points and tips can be crucial for investors making informed decisions. To explore further, there are 17 additional InvestingPro Tips available, which could provide a more comprehensive understanding of AILE's financial and market position. The information provided is intended to complement the company's recent statements and offer a broader view of its financial metrics and market performance.

iLearningEngines stock holds price target, buy rating amid CEO defense By Investing.com

On Wednesday, Benchmark maintained its Buy rating and $18.00 price target on shares of iLearningEngines Inc. (NASDAQ:AILE), following the company's CEO Harish Chidambaran's response to a critical short sale report. The August 29th report by Hindenburg had significantly impacted the company's stock price, despite iLearningEngines posting strong second-quarter results for 2024. The CEO's statement addressed the allegations directly and was deemed credible by Benchmark, reinforcing their confidence in the firm's valuation. The analyst acknowledged the potential impact of the short sale report on the stock's performance but expressed belief in the company's continued value proposition. iLearningEngines, recognized as a value-added Enterprise AI company, boasts a client roster that includes well-known global brands such as Accenture (NYSE:ACN), Allianz (ETR:ALVG) SE, Nissan (OTC:NSANY), and H&R Block, among many others. Benchmark's current valuation of iLearningEngines does not yet account for potential legal expenses that may arise due to the short sale report. However, the firm suggests that these costs are unlikely to materially affect the overall investment thesis or valuation of the company. Adjustments to the 2024 and 2025 Adjusted EBITDA estimates have not been made at this time. The analyst's commentary came ahead of iLearningEngines' scheduled presentation at an investor conference today. Further observations and comments from Benchmark may follow based on insights gained from the event. The reaffirmation of the $18.00 price target reflects Benchmark's ongoing optimism about iLearningEngines' prospects and market position. In other recent news, iLearningEngines has been addressing allegations from a short seller report. The company has formed a Special Committee to investigate these claims and has publicly stated that the report contains misleading information. In response to these developments, iLearningEngines has secured an additional $20 million in funding, supplementing its existing Loan and Security Agreement, with lenders now including Valley National Bank and East West Bank. The company has also announced significant salary increases and target bonuses for its top executives for fiscal year 2024, including CFO S. Farhan Naqvi, President Balakrishnan Arackal, Chief Legal Officer David Samuels, and Senior Vice President Ramakrishnan Parameswaran. However, the company is facing the resignation of board member Matthew Barger, with no replacement announced yet. These are recent developments in the company's activities, providing insights into its current financial and operational status. It is worth noting that these facts are based on past articles and press releases from iLearningEngines, and should be considered as such. These developments underscore the active measures taken by iLearningEngines to reassure stakeholders and maintain its growth trajectory amidst challenges. As iLearningEngines Inc. (NASDAQ:AILE) navigates through the challenges posed by the critical short sale report, real-time data from InvestingPro provides a nuanced view of the company's financial health and stock performance. With a market capitalization of $220.23 million, the company's aggressive share buyback strategy, as highlighted in one of the InvestingPro Tips, demonstrates management's confidence in the intrinsic value of the stock, even as the company faces headwinds with net income expected to drop this year. InvestingPro data reveals a significant revenue growth of 33.87% in the last quarter, showcasing the company's ability to increase its sales amidst a turbulent market. However, the stock's price volatility is evident, with a substantial 33.33% return over the last week, yet a dramatic 73.01% decline over the past month. Analysts' fair value targets average at $19.5, which is considerably higher than the current trading price, suggesting potential upside if the company can stabilize and deliver on its growth promises. For investors seeking a deeper analysis, InvestingPro offers additional insights with numerous tips available on their platform. Notably, the stock's RSI indicates that it may be in oversold territory, providing a potential entry point for investors who believe in the company's long-term prospects. With liquid assets surpassing short-term obligations, iLearningEngines appears to be in a position to manage its immediate financial commitments despite not being profitable over the last twelve months. For those interested in further expert analysis and metrics, more InvestingPro Tips for iLearningEngines can be found at https://www.investing.com/pro/AILE, offering a comprehensive understanding of the company's investment potential.

iLearningEngines CEO Sets the Record Straight - iLearningEngines (NASDAQ:AILEW), iLearningEngines (NASDAQ:AILE)

BETHESDA, Md., Sept. 10, 2024 (GLOBE NEWSWIRE) -- iLearningEngines, Inc. AILE ("iLearningEngines" or "ILE") a leader in AI-powered learning and work automation for enterprises, provides key facts on its business operations. According to the CEO, Harish Chidambaran, "It is essential to correct the egregious misstatements made by the short seller. iLearningEngines has a long-standing track record, audited financials, and has delivered significant innovation in AI for enterprise learning and work automation." The CEO response aims to dispel short seller's inaccuracies. Link to iLearningEngines CEO's response to the short seller allegations: https://investors.ilearningengines.com/news-events/response-to-allegations About iLearningEngines iLearningEngines AILE is a leading Applied AI platform for learning and work automation. iLearningEngines enables Enterprises to rapidly productize and deploy a wide range of AI applications and use cases (AI Engines) at scale. iLearningEngines is powered by proprietary vertical specific AI models and data with a flexible No Code AI canvas to drive rapid out-of-the-box deployment while offering low latency and high levels of data security and compliance. Serving over 1,000 enterprise end customers, iLearningEngines is deployed globally into some of the most demanding vertical markets including Healthcare, Education, Insurance, Retail, Energy, Manufacturing and Public Sector to achieve mission critical outcomes. For more information about iLearningEngines, please visit: www.ilearningengines.com. Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995 with respect to the Business Combination. Forward looking statements generally are accompanied by words such as "believe," "may," "will, "estimate," "continue," "anticipate," "intend," expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," the negative forms of these words and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the Company's ability to invest in continued platform growth; the potential benefits of the Business Combination, the Company's future growth prospects, the Company's ability to drive value for new and existing customers and the Company's ability to address market opportunities across artificial intelligence. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of the iLearningEngines' management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by an investor as a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions this press release relies on. Many actual events and circumstances are beyond the control of iLearningEngines. These forward-looking statements are subject to a number of risks and uncertainties, including changes in domestic and foreign business, market, financial, political, and legal conditions; iLearningEngines' failure to realize the anticipated benefits of the Business Combination; risks related to the rollout of iLearningEngines' business and the timing of expected business milestones; iLearningEngines' dependence on a limited number of customers and partners; iLearningEngines' ability to obtain sufficient financing to pay its expenses incurred in connection with the closing of the Business Combination; the ability of iLearningEngines to issue equity or equity-linked securities or obtain debt financing in the future; risks related to iLearningEngines' need for substantial additional financing to implement its operating plans, which financing it may be unable to obtain, or unable to obtain on acceptable terms; iLearningEngines' ability to maintain the listing of its securities on Nasdaq or another national securities exchange; the risk that the Business Combination disrupts current plans and operations of iLearningEngines; the effects of competition on iLearningEngines future business and the ability of iLearningEngines to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; risks related to political and macroeconomic uncertainty; the outcome of any legal proceedings that may be instituted against iLearningEngines or any of their respective directors or officers, including litigation related to the Business Combination; the impact of the global COVID-19 pandemic on any of the foregoing risks; and those factors discussed in the Company's registration statement on Form S-4, as amended or supplemented, under the heading "Risk Factors," and other documents the Company has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that iLearningEngines does not presently know, or that iLearningEngines does not currently believe are immaterial, that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect iLearningEngines' expectations, plans, or forecasts of future events and views as of the date of this communication. iLearningEngines anticipate that subsequent events and developments will cause iLearningEngines' assessments to change. However, while iLearningEngines may elect to update these forward-looking statements at some point in the future, iLearningEngines specifically disclaim any obligation to do so. These forward-looking statements should not be relied upon as representing iLearningEngines' assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements. IR & Press Contacts: Investor Contact: Kevin Hunt, ICR Inc. iLearningEnginesIR@icrinc.com Press Contact: Dan Brennan, ICR Inc. iLearningPR@icrinc.com Market News and Data brought to you by Benzinga APIs

iLearningEngines partners with Exult for AI platform expansion By Investing.com

BETHESDA, Md. - iLearningEngines, Inc. (NASDAQ:AILE), a company specializing in AI-powered learning and work automation, has announced a strategic partnership with Exult Global to enhance its AI platform through integration with Microsoft (NASDAQ:MSFT) Fabric and Azure. This collaboration aims to streamline the development and deployment of AI applications, focusing on scalability, security, and rapid time to market for enterprise clients. Murali Gopalan, CEO of Exult Global, emphasized the transformative potential of combining iLearningEngines' AI platform with Microsoft's technologies, expecting to set new enterprise AI benchmarks. Bala Krishnan, President and Chief Business Officer of iLearningEngines, echoed the sentiment, highlighting the anticipated growth and customer benefits from the partnership. The integration is designed to leverage the advanced AI and analytics capabilities of Microsoft Fabric on Azure's cloud computing platform, potentially reducing IT infrastructure complexities for iLearningEngines. This could allow the company to expand its library of AI Engines, also known as hyper apps, and provide high-value solutions to customers more efficiently. Key anticipated advantages of this strategic implementation include accelerated innovation, enhanced scalability and flexibility, improved integration with enterprise systems, and robust security and compliance standards. The successful deployment on Fabric and Azure is expected to bolster the capabilities of iLearningEngines' "Knowledge Cloud," which facilitates knowledge management, autonomous learning, intelligent decision-making, and process automation for enterprises. The partnership also aims to streamline data management by utilizing Microsoft's OneLake as a universal data repository, enabling cross-cloud compatibility and simplifying access to up-to-date enterprise data. Additionally, the AI integration within Fabric promises to enhance user-friendliness and accessibility for enterprise users. This move is part of iLearningEngines' ongoing efforts to address the growing market for AI applications across various industries, including healthcare, education, insurance, retail, energy, manufacturing, and the public sector. The company's deployment globally serves over 1,000 enterprise end customers. The information in this article is based on a press release statement from iLearningEngines. In other recent news, iLearningEngines has been actively addressing allegations from a short seller report, with Benchmark maintaining its Buy rating and $18.00 price target on the company's shares. The firm's CEO, Harish Chidambaran, has responded to the critical report, which was met with credibility by Benchmark. Amid these developments, iLearningEngines secured an additional $20 million in funding, supplementing its existing Loan and Security Agreement with lenders now including Valley National Bank and East West Bank. The company also announced significant salary increases and target bonuses for its top executives for the fiscal year 2024. These include CFO S. Farhan Naqvi, President Balakrishnan Arackal, Chief Legal Officer David Samuels, and Senior Vice President Ramakrishnan Parameswaran. However, the recent resignation of board member Matthew Barger has left a vacancy in the board's composition. In response to the short seller report, iLearningEngines has formed a Special Committee to investigate the allegations. The company remains confident in its AI platform and its legitimate business operations. These recent developments provide insights into iLearningEngines' current financial and operational status. As iLearningEngines, Inc. (NASDAQ:AILE) embarks on a significant partnership with Exult Global to enhance its AI platform, the company's stock market performance and financial metrics provide a broader context for evaluating its growth prospects. According to InvestingPro data, iLearningEngines has a market capitalization of $216 million. The company's recent revenue growth is notable, with a quarterly increase of 33.87%, reflecting its potential to capitalize on the expanding AI market. However, investors should be aware of the company's current financial challenges. With a negative P/E ratio of -1.45 over the last twelve months as of Q2 2024, the data suggests that iLearningEngines is not yet profitable. This is further supported by an operating income margin of -9.0%, indicating that the company is experiencing losses at the operating level. Despite these challenges, InvestingPro Tips highlight that management has been aggressively buying back shares, which could signal confidence in the company's future. Additionally, the stock's RSI suggests it is in oversold territory, potentially indicating an undervalued state that might interest value investors. For those considering a deeper analysis of iLearningEngines, InvestingPro offers additional context with a total of 14 InvestingPro Tips available on the platform. These tips provide insights into the stock's volatility, analyst expectations, and liquidity position, among other critical factors, thus equipping investors with a comprehensive understanding of the company's stock performance and future potential. For more detailed information and tips on iLearningEngines, Inc., visit InvestingPro.