There are nearly 2 billion websites on the internet today, so a software company that can potentially be used on every single one of those sites should always be on your radar. AudioEye (NASDAQ:AEYE) is not a company that is talked about much on investing platforms like Fintwit or Reddit, but chances are you have recently visited a site that uses its services. What does AudioEye do? The name of the company is a dead giveaway. Audio and Eye. The two senses that we use most when we routinely surf the net, are also the two senses that we most take for granted in our everyday lives. When you check your email or stock watchlist multiple times per day, do you ever stop to think how difficult these tasks are to those with disabilities? AudioEye has, and they are working to help make the internet a more accessible place for all. Visit https://www.audioeye.com/how-it-works for a more in depth explanation.
AudioEye was founded back in 2005 and was originally created to be an audible player plugin which was an early iteration of websites reading text for people who had visual impairment. Fast forward 16 years and AudioEye is an AI-powered SaaS company that boasts over 68,000 customers as of March 31, 2021, which represents a 500% year over year increase in customer growth. This rise in its customer base has resulted in AudioEye reporting record revenues for Q1 of 2021, including the first quarter in the company’s history where it generated free cash flow.
When we mention AudioEye’s growth in customers, it’s important to remember what an incredibly large total addressable market a company like this has. Quite literally any website on the internet, from private blogs to eCommerce platforms can use AudioEye’s software, and the company has already established an A-list group of clients. Some names you may have heard of include Square, Uber, WebMD, Fox Business, GameStop, and Kia. But that’s not all. AudioEye has tapped into the world of SMBs, with exclusive partnerships with Shopify, Wix, WordPress, SquareSpace, GoDaddy, and HubSpace to name a few.
Let’s talk about pricing. AudioEye provides a tiered pricing that ranges from $49/month for the Simple tier to $499/month for the Premier tier. There is even an Enterprise tier that presumably costs more than the Premier tier that targets global sites with more than 1 million unique views per month. With this type of pricing system, investors will want to see more high-profile customers signing up to use the Premier or Enterprise level, rather than Simple or Advanced. Either way, the great part about AudioEye’s service is that once a company signs up for it, there really isn’t a reason for it to cancel, making AudioEye a sticky ecosystem that does fall slightly short of irreplaceable.
At the end of the day, AudioEye fills a need that nearly every website in the world could use, it’s a matter of capitalizing on continued customer growth. With enough market share, AudioEye can certainly practice some pricing power and bump up the price points of its tiers. AEYE stock has the exact profile of a company that has the ability to 10X over the next decade, with a market cap of only $192 million at the time of this writing, but trading at a measly price to sales multiple of only 8.7, with high margins that are carrying AudioEye to full profitability. Currently, AEYE stock is trading at a near 60% discount from it’s all-time highs, and even still, has outgained the benchmark S&P 500 by nearly 40% over the past 52-weeks. Most of all, AudioEye has a business that benefits the over 1 billion people in the world with a disability, and is positioning itself for the future with a pristine balance sheet and a high quality customer base that is growing at an exponential rate. AEYE stock checks some critical boxes and is definitely worth a look, learn more about their product by visiting https://www.audioeye.com/
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