AudioEye acquires ADA Site Compliance, boosting its digital accessibility solutions and solidifying its leadership in comprehensive accessibility services.
AudioEye, Inc., the industry-leading digital accessibility company, has acquired ADA Site Compliance. This ADA website accessibility compliance solution provides audits and best practices to help organizations create websites compliant with 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.”
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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.
