AudioEye reports strong 2022 financial performance - 22% YoY revenue growth, 13% YoY ARR increase, and 23% YoY gross profit improvement.
Mar 9th 2023, 10:14 pm
Part 1: Performance Analysis AudioEye Inc, a leading digital accessibility platform, reported a strong financial performance for the year ended December 31, 2022. The company focused on product innovation, revenue expansion, and expense management, resulting in a 22% increase in total revenue year-over-year. This growth in revenue was driven by the company's efforts to expand its Enterprise and Partner and Marketplace channels, with both channels experiencing 28% and 17% growth in revenue, respectively. Furthermore, AudioEye increased its customer base to approximately 86,000 customers, representing an increase of 4,000 customers from the prior year. The company's Annual Recurring Revenue ("ARR") increased by 13% to $29.2 million. Additionally, AudioEye acquired the Bureau of Internet Accessibility ("BOIA") in March 2022, which contributed to Enterprise revenue growth. The company's gross profit improved by 23% year-over-year, from $18.4 million in 2021 to $22.7 million in 2022. This increase in gross profit was achieved despite an increase in research and development costs, representing 24% of total revenue, primarily due to investments in engineering and product talent to further drive product development. Part 2: Forward Looking Analysis Looking forward, AudioEye appears to be well-positioned for continued growth in the digital accessibility market. The company's focus on product innovation, revenue expansion, and expense management has led to improved financial performance. With the growing global emphasis on web accessibility, the company is well-positioned to capitalize on the increasing demand for web accessibility solutions. According to the World Health Organization (WHO), approximately 15% of the world's population lives with a disability, and this number is growing. This implies that the digital accessibility market has significant growth potential as more businesses seek to make their services accessible to a broader audience. Additionally, based on the management's discussion, AudioEye has been developing its solutions to comply with the evolving web accessibility regulations such as the Web Content Accessibility Guidelines (WCAG) 2.2 and 3.0, which shows that the company is focusing on product innovation to stay ahead of industry trends. By continuing its focus on recurring revenue growth in both its Enterprise and Partner and Marketplace channels, while still offering its Website and Native Mobile App report services and PDF services, AudioEye can leverage its patented technology to expand access to individuals with disabilities and enhance the overall user experience. In conclusion, with a continued focus on product innovation and expense management, along with growing demand for web accessibility solutions, AudioEye appears poised for continued growth in the future. Its strong financial performance, well-positioned competitive position, and focus on product development and customer services could attract potential investors to invest in the company. However, the impact of any new and emerging competitors or regulatory changes on the company's future financial performance must also be taken into account.