Announces Accretive Acquisition of ADA Site
Compliance and Increases Revenue and Adjusted EBITDA
Guidance
TUCSON,
Ariz., Sept. 30, 2024 /PRNewswire/
-- AudioEye, Inc. (Nasdaq: AEYE) ("AudioEye" or
the "Company"), the industry-leading digital accessibility company,
today announced it has acquired ADA Site Compliance, an ADA website
accessibility compliance solution that provides audits and best
practices to help organizations create websites that are accessible
and compliant to WCAG standards.
"ADA Site Compliance has an impressive client list and a
talented team with which we see synergy," said David Moradi, CEO of AudioEye. "Scott has built
a strong business where we believe we can leverage our products to
expand customer relationships further. Our goal is to replicate the
success we had integrating our 2022 acquisition of the Bureau of
Internet Accessibility, where we materially deepened customer
relationships and increased ARR."
"I've been in the digital accessibility industry for eight years
and have watched AudioEye emerge as a leading platform after
significant investment into their product suite and people. After
evaluating all options, I realized that combining with AudioEye is
the best solution for our customers. AudioEye's unique approach of
using AI automation and human-assisted technology is an extremely
effective way to solve digital accessibility at scale, which is why
they have such a robust customer base," said Scott Trachtenberg, Founder and CEO of ADA Site
Compliance. "I look forward to working closely with David and the
executive team at AudioEye and am excited to embark on this new
adventure."
Financial Outlook
Based on strong organic results in the quarter, AudioEye is
increasing its guidance to the upper end of the range previously
provided. For the third quarter of 2024, management expects to
generate revenue between $8.9 million
and $8.95 million, adjusted EBITDA
between $1.925 million and
$1.95 million, and adjusted EPS
between $0.15 and $0.16.
AudioEye is increasing its full-year 2024 revenue guidance to
between $35.15 million and
$35.25 million, adjusted EBITDA
between $6.3 million and $6.45 million, and adjusted EPS between
$0.51 and $0.53.
The acquisition of ADA Site Compliance is expected to be
accretive in the fourth quarter.
Management expects to achieve the 'Rule of 40' in the third
quarter of 2024 (using sequential annualized revenue growth in the
third quarter). Looking ahead to 2025, management is excited about
core business momentum and the platform, which unlocks the
potential for additional, similarly accretive "tuck-in"
acquisitions.
About AudioEye
AudioEye exists to ensure the digital future we build is
inclusive. By combining the latest AI automation technology with
guidance from certified experts and direct input from the
disability community, AudioEye helps ensure businesses of all sizes
— including over 122,000 customers like Samsung, Calvin Klein, and Samsonite — are accessible and
usable. Holding 23 US patents, AudioEye helps companies solve every
aspect of digital accessibility with flexible approaches that best
meet their needs. The comprehensive solution includes 24/7
accessibility monitoring, automated accessibility fixes, expert
testing, developer tools, and industry-leading legal
protection.
Forward-Looking Statements
Any statements in this press release about AudioEye's
expectations, beliefs, plans, objectives, prospects, financial
condition, assumptions or future events or performance are not
historical facts and are "forward-looking statements" as that term
is defined under the federal securities laws. Forward-looking
statements are often, but not always, made through the use of words
or phrases such as "believe", "anticipate", "should", "confident",
"intend", "plan", "will", "expects", "estimates", "projects",
"positioned", "strategy", "outlook" and similar words. You should
read the statements that contain these types of words carefully.
Such forward-looking statements contained herein include, but are
not limited to, statements regarding future cash flows of the
Company and ADA Site Compliance, anticipated contributions
from sales generated by the Company or ADA, our expectation that
the ADA acquisition will be accretive and synergistic, our ability
to integrate ADA into our business and replicate the success we had
integrating our 2022 acquisition of the Bureau of Internet
Accessibility, our ability to deepen our relationships with ADA
customers and increase ARR, our long-term growth prospects,
opportunities in the digital accessibility industry, our revenue,
adjusted EBITDA and adjusted EPS guidance, our expectation to
achieve the 'Rule of 40' in the third quarter of 2024, and our
expectation of investments in marketing and sales and acquisitions
of accretive businesses. These statements are subject to a number
of risks, uncertainties and other factors that could cause actual
results to differ materially from what is expressed or implied in
such forward-looking statements, including the variability of
AudioEye's revenue and financial performance; product development
and technological changes; the acceptance of AudioEye's products in
the marketplace; the effectiveness of our integration efforts,
including our ability to integrate ADA and expand our relationships
with ADA customers; competition; inherent uncertainties and costs
associated with litigation; and general economic conditions. These
and other risks are described more fully in AudioEye's filings with
the Securities and Exchange Commission. There may be events in the
future that AudioEye is not able to predict accurately or over
which AudioEye has no control. Forward-looking statements reflect
management's view as of the date of this press release, and
AudioEye urges you not to place undue reliance on these
forward-looking statements. AudioEye does not undertake any
obligation to update such forward-looking statements to reflect
events or uncertainties after the date hereof. Information
regarding AudioEye's non-GAAP financial measures, including
adjusted EBITDA and adjusted earnings per share, is available in
its earnings release furnished as Exhibit 99.1 to its Form 8-K
filed with the Securities and Exchange Commission on July 25, 2024. A reconciliation of the forecasted
range for adjusted EBITDA and adjusted EPS for the third quarter of
2024 and full-year 2024 are not included in this press release
because AudioEye is currently unable to quantify accurately certain
amounts that would be required to be included in the U.S. GAAP
measure or the individual adjustments for such
reconciliation.
Media Contact
Sierra
Thomas
AudioEye PR
sierra.thomas@audioeye.com
Investor Contact
Tom
Colton
Gateway Group, Inc.
AEYE@gateway-grp.com
949-574-3860
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SOURCE AudioEye, Inc.