Core Viewpoint - AudioEye is set to report its fourth-quarter 2024 results on March 12, with expectations of significant revenue growth and improved earnings metrics, despite a premium valuation and competitive pressures in the digital accessibility market [1][19]. Financial Performance - The company anticipates revenues between $9.7 million and $9.8 million for Q4 2024, reflecting a 24% year-over-year increase [1]. - The Zacks Consensus Estimate for revenues is $9.73 million, indicating a 23.67% rise from the previous year [2]. - Adjusted EBITDA is expected to be between $2.2 million and $2.3 million, with adjusted EPS projected at 18 to 19 cents per share [1][2]. Earnings Surprise and Estimates - AudioEye achieved an earnings surprise of 14.229% in the last reported quarter, consistently beating the Zacks Consensus Estimate over the past four quarters, with an average surprise of 83.57% [4]. - Current EPS estimates remain stable at 18 cents for Q4 2024, with no changes over the past 90 days [3]. Growth Drivers - The company has benefited from the expansion of its Enterprise and Partner/Marketplace channels, which grew at an annualized rate of 21% in Q3 [8]. - The acquisition of ADA Site Compliance, contributing approximately $2 million in 2023 revenues, is expected to enhance Q4 performance, despite potential integration costs [8]. - New features like the Accessibility Protection Status are designed to improve competitive positioning against traditional consulting firms and automation-only competitors [9]. Market Position and Valuation - AudioEye's stock price has increased by 46.2% over the past year, outperforming the broader Zacks Computer and Technology sector [13]. - The company’s trailing-12 month price-to-earnings ratio stands at 74.18, significantly higher than the industry average of 39.48, raising concerns about sustainability [16]. Strategic Partnerships - Expanded partnerships with Finalsite and CivicPlus are expected to gain traction, with potential for "tens of millions of dollars additional" revenues at full penetration [11]. - The A11iance Team, consisting of accessibility experts with disabilities, has identified over 35,000 accessibility issues, enhancing the company's service offerings [10]. Investment Considerations - While AudioEye shows strong revenue growth and improving profitability, its premium valuation relative to peers suggests a cautious investment approach [19]. - Investors may consider waiting for Q4 results to assess the effectiveness of integration initiatives and competitive advantages before making new investments [20].

Core Viewpoint - Brokerage recommendations, particularly for AudioEye (AEYE), suggest a strong buy sentiment, but reliance solely on these recommendations may not be prudent due to potential biases and misalignment with retail investors' interests [2][4][9]. Group 1: Brokerage Recommendations - AudioEye has an average brokerage recommendation (ABR) of 1.20, indicating a consensus between Strong Buy and Buy, with 80% of recommendations being Strong Buy and 20% being Buy [2]. - The ABR is calculated based on recommendations from five brokerage firms, highlighting a strong positive bias in their ratings [5][9]. Group 2: Zacks Rank Comparison - Zacks Rank categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, providing a more reliable indicator of stock performance compared to ABR [7][10]. - The Zacks Consensus Estimate for AudioEye remains unchanged at $0.52, suggesting stable earnings prospects and a Zacks Rank of 3 (Hold) for the stock [12][13]. Group 3: Investment Caution - Given the unchanged earnings estimates and the Zacks Rank of Hold, caution is advised despite the positive ABR for AudioEye, indicating potential alignment with broader market performance rather than significant price appreciation [12][13].

Core Insights - The 2025 Digital Accessibility Index reveals an average of 297 accessibility issues per page across 15,000 websites, a significant increase from 37 issues per page in 2023, indicating a growing concern for digital accessibility compliance [1][2]. Industry Analysis - The increase in detected accessibility issues is attributed to improvements in automated testing capabilities, which can assess more Web Content Accessibility Guidelines (WCAG) than other solutions [2]. - Many businesses are unaware of their accessibility compliance gaps until they conduct a thorough review of their websites, highlighting the alarming scale of digital inaccessibility and the associated risks [3]. - The report identifies frequent accessibility failures related to website navigation and usability, which adversely affect the user experience for individuals with disabilities [4]. Legal and Compliance Implications - Laws such as the Americans with Disabilities Act (ADA) and the European Accessibility Act (EAA) impose clear accessibility requirements, with non-compliance leading to lawsuits, regulatory fines, and lost revenue [5]. - As global enforcement of digital accessibility increases, businesses must proactively ensure compliance to maximize legal protection [5]. Sector-Specific Findings - Retail websites exhibit the highest number of accessibility issues, averaging 350.1 issues per page, which affects sales and customer acquisition due to inaccessible product photos and mislabeled checkout forms [7]. - In the hospitality sector, 41% of travel and hospitality webpages have accessibility issues that hinder keyboard-only users from navigating content and making reservations [7]. - Healthcare websites average 272 issues per page, with inaccessible forms and buttons complicating patients' ability to schedule appointments and access test results [7].

Core Viewpoint - AudioEye, Inc. will hold a conference call on March 12, 2025, to discuss its financial results for Q4 and the full year ended December 31, 2024 [1] Group 1: Conference Call Details - The conference call is scheduled for 4:30 p.m. Eastern Time [2] - U.S. dial-in number is 877-407-8289, and the international number is 201-689-8341 [2] - A live webcast will be available, and a replay will be accessible for 90 days via the investor relations section of the company's website [3] Group 2: Company Overview - AudioEye is a leader in digital accessibility, combining AI automation technology with expert fixes [4] - The company serves over 126,000 customers, including notable brands like Samsung, Calvin Klein, and Samsonite [4] - AudioEye holds 24 U.S. patents and offers comprehensive solutions including 24/7 accessibility monitoring and legal protection [4]

Core Insights - AEYE Health and Topcon Healthcare have achieved a significant milestone in diabetic retinopathy screening with a fully autonomous AI diagnostic solution that boasts 100% imageability and does not require dilation for patients [1][4][7] Company Overview - AEYE Health specializes in AI-based diagnostic screening solutions for retinal imaging, aiming to enhance accessibility and accuracy in diabetic retinopathy screenings [6] - Topcon Healthcare is a leader in digital healthcare solutions, focusing on improving access and quality of care through innovative technologies [8] Clinical Efficacy - The AEYE-DS AI technology, in combination with Topcon's NW500 camera, has demonstrated exceptional clinical results, achieving 92% sensitivity and 90% specificity in diagnostic efficacy [7] - The solution allows for screening to be completed in under one minute, significantly improving patient throughput [2][4] Market Impact - With over 40 million people in the U.S. and 830 million globally living with diabetes, the partnership aims to address the critical need for early detection of diabetic retinopathy, which affects a large percentage of diabetic patients [5] - The introduction of this technology is expected to increase the adoption of AI screening in the U.S. and worldwide, ensuring that more patients receive timely diagnostic opportunities [4] Technological Innovation - AEYE-DS is the only FDA-cleared autonomous AI solution that requires just one image per eye, making it a practical alternative for point-of-care screenings [2][6] - The integration of Harmony®, a cloud-based digital health platform, enhances the usability and efficiency of the diagnostic process [3][8]

Group 1: Stock Performance - AudioEye's stock closed at $18.41, reflecting a -1.29% change from the previous trading day's closing, which is less than the S&P 500's daily gain of 0.03% [1] - Over the past month, AudioEye's shares have appreciated by 26.18%, outperforming the Computer and Technology sector's gain of 2.31% and the S&P 500's gain of 4.19% [1] Group 2: Upcoming Earnings - Analysts expect AudioEye to post earnings of $0.18 per share, marking a year-over-year growth of 63.64% [2] - The consensus estimate for revenue is $9.73 million, showing a 23.67% increase compared to the year-ago quarter [2] Group 3: Analyst Estimates - Recent adjustments to analyst estimates for AudioEye reflect evolving short-term business trends, with positive revisions indicating analyst optimism regarding the company's business and profitability [3] Group 4: Zacks Rank and Valuation - AudioEye currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining steady over the past month [5] - The company is trading at a Forward P/E ratio of 27.23, which is a discount compared to the industry average Forward P/E of 30.99 [6] Group 5: PEG Ratio and Industry Ranking - AudioEye has a PEG ratio of 1.09, compared to the Internet - Software industry's average PEG ratio of 2.33 [7] - The Internet - Software industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 73, placing it in the top 30% of all industries [7][8]

Free courses tailored for leaders, designers, developers, and testers provide in-depth accessibility best practices TUCSON, Ariz., Feb. 5, 2025 /PRNewswire/ -- AudioEye, Inc. (Nasdaq: AEYE) ("AudioEye" or the "Company"),  the industry-leading digital accessibility company, today announced the launch of new role-based courses on AudioEyeQ, its free accessibility learning platform. Designed to address the unique challenges of business leaders, designers, developers, and website testers, these courses provide ...

Court dismisses lawsuit with prejudice, finding claims brought by David J. Kovacs to be without meritTUCSON, Ariz., Feb. 4, 2025 /PRNewswire/ -- AudioEye, Inc. (Nasdaq: AEYE) ("AudioEye" or the "Company"), the industry-leading digital accessibility company, today announced that the Supreme Court of the State of New York has dismissed in full the lawsuit brought by former employee David J. Kovacs against the Company, CEO David Moradi, and Chairman of the Board Carr Bettis.The lawsuit, which included claims o ...

Core Viewpoint - AudioEye's stock performance has shown resilience with an 18.25% increase over the last month, outperforming both the Computer and Technology sector and the S&P 500 index [1][2]. Company Performance - AudioEye's shares closed at $18.63, reflecting a +0.87% change from the previous day, which is slightly below the S&P 500's gain of 0.92% [1]. - The company's projected earnings per share (EPS) for the upcoming release is $0.18, indicating a significant 63.64% increase year-over-year [2]. - Revenue is expected to reach $9.73 million, representing a 23.67% growth compared to the same quarter last year [2]. Analyst Sentiment - Recent shifts in analyst projections for AudioEye are crucial, as positive revisions indicate optimism regarding the company's business and profitability [3]. - The Zacks Rank system, which evaluates estimate changes, currently ranks AudioEye as 3 (Hold), suggesting a neutral outlook [5]. Valuation Metrics - AudioEye has a Forward P/E ratio of 26.96, which is lower than the industry average of 31.2, indicating it is trading at a discount [6]. - The company has a PEG ratio of 1.08, compared to the industry average PEG ratio of 2.19, suggesting favorable growth expectations relative to its valuation [7]. Industry Context - The Internet - Software industry, which includes AudioEye, holds a Zacks Industry Rank of 44, placing it in the top 18% of over 250 industries, indicating strong performance potential [8].

Core Insights - AudioEye (AEYE) shares have appreciated 259.9% over the trailing 12-month period, significantly outperforming the Zacks Computer & Technology sector's appreciation of 21.4% and the Zacks Internet-Software industry's return of 33.1% [1] - The outperformance is attributed to AEYE's expanding digital accessibility solutions, rich partner base, and accretive acquisitions [2] Company Growth Drivers - AEYE's customer count increased by 18% year over year, from 107,000 in Q3 2023 to approximately 126,000 in Q3 2024, driven by growth in both Partner & Marketplace and Enterprise channels [5] - The company expanded its partnership with Finalsite, aiming to penetrate the K-12 school market over the next three years, which is expected to drive long-term revenue growth [6][7] - AEYE extended its partnership with CivicPlus to enhance go-to-market strategies, targeting the local government market [8] Product Portfolio Expansion - AEYE's recent products, such as Accessibility Protection Status and Accessibility Testing Software Kit, provide customers with risk assessment tools and help developers address accessibility issues early in the software development cycle [9] - The Accessibility Protection Status benchmark, introduced in November 2024, enhances transparency and compliance in digital accessibility efforts [10] - The Accessibility Testing Software Development Kit was announced as a self-service tool to help developers identify accessibility issues [11] Acquisitions and Compliance - AEYE's acquisition of ADA Site Compliance has strengthened its product offerings and customer base, enhancing its ability to provide comprehensive digital accessibility solutions [12] - The company achieved HIPAA Compliance and SOC 2 Type II Certification, bolstering its data protection and security measures for enterprise-grade customers [13] Financial Performance and Outlook - The consensus estimate for 2025 earnings is pegged at 69 cents per share, indicating a year-over-year increase of 31.73%, with full-year 2025 revenues estimated at $42.94 million, reflecting 21.93% year-over-year growth [14] - AEYE has consistently beaten the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 83.57% [14] Competitive Landscape - Despite growth, AEYE faces financial pressure due to intense competition in the digital accessibility market and challenges in managing operating expenses, which increased by 9% in Q3 2024 [16] - The company reported a net loss of $1.2 million in Q3 2024, impacted by increased sales and marketing costs [17] Valuation Metrics - AEYE stock is considered not cheap, with a Value Score of F, and is trading at a forward Price/Sales ratio of 5.15X, higher than the industry's 3.13X [18] - Currently, AEYE carries a Zacks Rank 3 (Hold), suggesting that investors should wait for a better entry point [21]