TUCSON, Ariz. - AudioEye, Inc. (NASDAQ: NASDAQ:AEYE), a leader in digital accessibility solutions, has announced the attainment of HIPAA compliance and SOC 2 Type II certification. These achievements emphasize the company's commitment to data protection and security, especially for clients in healthcare and industries with strict data privacy regulations.
HIPAA compliance ensures that AudioEye's services align with federal standards for handling protected health information (PHI), a critical requirement for healthcare providers. This compliance is timely, as the Department of Health and Human Services recently mandated that healthcare organizations must upgrade their digital accessibility within a two to three-year timeframe, depending on size.
In addition to HIPAA compliance, AudioEye has successfully completed the SOC 2 Type II audit, a more stringent process than the SOC 2 Type I examination completed earlier. This certification, verified by an independent auditor, demonstrates that AudioEye's systems are appropriately designed and secure, particularly in cloud operations. It attests to the company's adherence to industry best practices for security, availability, confidentiality, and privacy.
David Moradi, CEO of AudioEye, highlighted the importance of a secure and compliant platform for all customers, stating that the company's continuous commitment to data security aims to meet the highest standards across various industries. John Postlethwait, CTO of AudioEye, added that the SOC 2 Type II certification offers customers assurance that their data is protected with robust controls and safeguards.
These certifications reinforce AudioEye's position as a trusted partner for organizations looking to provide secure and accessible websites. The company's focus on both security and accessibility ensures that their customers can offer inclusive digital experiences that comply with regulatory requirements.
AudioEye's approach to digital accessibility combines AI automation with expert guidance and feedback from the disability community, serving over 122,000 customers, including notable brands like Samsung (KS:005930), Calvin Klein, and Samsonite. The company holds 23 US patents and provides a comprehensive solution for digital accessibility, including monitoring, automated fixes, expert testing, developer tools, and legal protection.
The information mentioned in this article is based on a press release statement from AudioEye, Inc.
In other recent news, AudioEye, a leader in digital accessibility solutions, has reported a robust second quarter in 2024. The company's revenues grew to approximately $8.5 million, marking a 19% increase year-on-year. Additionally, AudioEye's annual recurring revenue (ARR) experienced a 60% surge from the previous quarter, contributing to a record adjusted EBITDA of around $1.5 million.
In light of these positive financial results, the company has raised its full-year revenue guidance to a range of $34.5 million to $34.8 million. The adjusted EBITDA forecast was also revised upwards to between $6 million and $6.3 million. These recent developments reflect the company's successful growth and its optimistic outlook for the future.
AudioEye's strategic initiatives are aimed at penetrating markets such as state and local government, higher education, and healthcare. The company anticipates stable gross margins of 79% through 2024 and potentially into 2025. Despite a decrease in cash by $1.9 million due to an earnout payment, the company's performance remains strong, underlining its ability to sustain growth amidst a favorable regulatory environment.
InvestingPro Insights
AudioEye, Inc. (NASDAQ: AEYE), while fortifying its position in the digital accessibility space through compliance achievements, also presents an interesting financial profile according to InvestingPro data. The company, with a market capitalization of approximately $279.04 million, is navigating a dynamic market landscape. One of the key financial metrics, the gross profit margin, stood at a robust 78.27% over the last twelve months as of Q2 2024. This high margin underscores the company's ability to manage its cost of goods sold effectively and could be indicative of a strong pricing power or a niche market position.
However, the company's Price to Book (P/B) ratio was notably high at 57.23 as of the same period, suggesting that the market values the company's assets quite richly compared to its book value. This could be reflective of investor confidence in the company's future growth prospects or potentially its intellectual property, including its 23 US patents mentioned in the article.
From a profitability perspective, AudioEye has been grappling with challenges, as indicated by a negative P/E ratio of -80.2, which further adjusted to -95.54 over the last twelve months. This metric reveals that the company has not been profitable over that period, aligning with one of the InvestingPro Tips that AudioEye has not been profitable over the last twelve months. Yet, analysts are optimistic, as evidenced by three analysts revising their earnings upwards for the upcoming period, and predictions that the company will turn profitable this year. This could be a signal to potential investors of a turning point in the company's financial trajectory.
For those interested in further insights, there are additional InvestingPro Tips available, including information on the company's stock price volatility and its performance over various time frames. For instance, AudioEye has shown a strong return over the last three months with a 33.18% price total return, and an even more impressive 124.35% over the last six months. These figures could be relevant for investors considering the timing of their investment decisions.
To explore these metrics and tips in greater depth and for more tailored investment advice, interested readers can find a wealth of information on InvestingPro, which includes a total of 14 additional InvestingPro Tips for AudioEye, Inc. These tips provide a more comprehensive understanding of the company's financial health and market position.
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