Why AudioEye's Shares Jumped 38% Today

Why AudioEye's Shares Jumped 38% Today

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AudioEye Inc. is focused on making the internet more accessible for everyone, including people with disabilities. They use advanced AI technology to find and fix accessibility issues on websites, helping businesses meet ADA and WCAG standards. This allows companies to offer a more inclusive online experience, reaching a wider audience.

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AudioEye's platform addresses a variety of accessibility needs, from visual impairments like colour blindness to cognitive challenges such as dyslexia. Their solutions not only automate the detection and correction of these issues but also provide ongoing monitoring to ensure websites remain compliant as new content is added. This service is crucial for businesses that want to maintain an inclusive digital presence. AudioEye's client list includes well-known brands like ADP, Tommy Hilfiger, A360 Media, and Samsung.

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Following the release of their Q2 2024 results, AudioEye's stock price saw a huge jump, climbing from $19.64 to $27.15 per share, a 38% rise in one day.

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The company reported a record $8.5 million in revenue, an 8% increase compared to $7.8 million in the same period last year. This growth was fueled by strong demand for their accessibility solutions. Gross profit also improved, reaching $6.7 million, or 79% of total revenue, up from $6.0 million, or 77%, in the previous year.

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Additionally, AudioEye reduced its operating expenses by 11%, lowering them to $7.2 million. This reduction was due to more efficient sales and marketing efforts and the completion of significant R&D projects. As a result, the company's net loss improved to $0.7 million, or $0.06 per share, compared to a loss of $2.0 million, or $0.17 per share, in the previous year.

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Adjusted EBITDA turned positive this quarter, coming in at $1.5 million. This is a significant turnaround from last year's loss of $0.2 million, showing that the company's operations are becoming more efficient. They also saw a rise in their annual recurring revenue, which grew to $33.3 million by the end of June 2024, up from $32.0 million in March.

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Management also discussed how new federal regulations are set to increase the demand for AudioEye's services. In April 2024, the Department of Justice announced that state and local government websites and apps must comply with WCAG 2.1, Level AA standards by 2026 or 2027, depending on the organization's size. Similarly, in May 2024, the Department of Health and Human Services mandated that healthcare providers and organizations funded by HHS must also meet these standards by 2026 or 2027, based on their size.

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Sources: All the information from this article was sourced from AudioEye’s official website and recent press releases. 

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