After its earnings report was released, AudioEye, Inc. (NASDAQ: AEYE) showed a strong rising trend on US stock charts. At the time of the latest market assessment, AEYE’s shares had risen 37.22% to $26.95.
Impressive Financial Performance
For the second quarter, the company recorded sequential revenue growth at an annualized rate of 19% and an adjusted EBITDA margin of 17%. Owing to this positive performance, AudioEye has raised its projections for full-year revenue, adjusted EBITDA, and adjusted EPS. While overall revenue rose by 8% to a record $8.5 million during the reporting period, gross profit jumped to $6.7 million, or 79% of total sales.
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Supporting Regulatory Developments
Significant regulatory reforms have given AudioEye’s commercial momentum significant assistance. The Americans with Disabilities Act (ADA) saw the Department of Justice implement a new regulation in April 2024 under Title II. By April 2026 or April 2027, depending on the size of the entity, it requires state and local government bodies to ensure that their websites and mobile apps comply with WCAG 2.1, Level AA and are accessible to individuals with disabilities.
Furthermore, in May 2024, the Office for Civil Rights of the Department of Health and Human Services published a final rule reiterating the protections provided by Section 504 of the Rehabilitation Act for people with disabilities. This regulation requires businesses that receive money from the Department of Health and Human Services (HHS) to ensure that their mobile apps and online content meet Level AA criteria of WCAG 2.1 by May 2026 for firms with 15 or more workers, and May 2027 for smaller organizations.
Significant Initiatives and Partnerships
A new alliance between AudioEye and Finalsite, a top K–12 school community connection management software with 7,000 users across 115 countries, has also been revealed. The goal of this collaboration is to greatly improve K–12 schools’ digital accessibility. In addition, AudioEye introduced AudioEyeQ in July 2024, a top accessibility learning platform that provide free on-demand courses to anybody looking to learn more about accessibility.
The number of clients has grown steadily; as of June 30, 2024, there were over 121,000, up 16% from roughly 104,000 on that day in 2023. This increase in the number of customers was facilitated by the Partner and Marketplace channels as well as the Enterprise channel.
