Professional Documents
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Accessibility Solutions
Nasdaq: AEYE
December 2018
Disclaimer
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What is Digital Accessibility?
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Visual:
15%
Auditory:
• Deafness
• Hearing impairment
Motor:
• Difficulty in using hands
• Limited fine motor control
• Muscle slowness
• Tremor and spasms
Cognitive:
Global population with some • Learning disabilities
• Memory impairments
form of disability • Attention disorders
• Problem solving and logic
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Accessibility by the Numbers
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Mounting Legal Pressure to Comply is Driving
Increased Awareness
Digital Accessibility Lawsuits Notable Digital Accessibility
Surging in the US Legal Precedents
2,094
814
262
57
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What We Do Our solutions enable organizations to create
experiences that are more accessible, and
more usable, for more people
AudioEye is a
purpose-driven We transform how the world experiences
digital content by providing enterprise
enterprise that has technology that makes content accessible
to a vital and underserved demographic
made digital
accessibility
scalable. Our managed service offering reduces risk
of legal demand letters and lawsuits from
plaintiffs claiming ADA-related violations
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Enterprise-Grade Remediation Technology
The only accessibility solution Starting on the path to compliance takes just minutes
Once integrated, AudioEye Dynamic Remediation
removing billions Technology takes over
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Compliance
Immediately addresses issues of Legal Demand Letters,
Our technology
Lawsuits, and ADA-related requirements.
digital accessibility
Usability
The Ally Toolbar provides a customizable user experience to
all site users.
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AudioEye is Uniquely Positioned in the
Industry
AudioEye Barriers to Entry
Consulting Dynamic
• 6 Patents & 2 applications pending
Depth of ADA Conformance
Speed to Compliance
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AudioEye by the Numbers
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Indirect Marketing
Direct Accounts
Partners & Accounts
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895+ Accounts Have Deployed AudioEye
12
Robust Trends Underpin Growth in Clients
368
158 173
108 91
34
Past performance does not guarantee future results. Actual results may vary materially from projections.
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11 Consecutive Quarters of Revenue Increases
Bookings $3.0 Revenue
$2.8
$1.5
$2.2 $1.2
$1.1
$1.7 $1.6
$1.5 $1.5 $0.9
$0.7 $0.7
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18
$ in millions
NASDAQ: AEYE Past performance does not guarantee future results. Actual results may vary materially from projections. 14
Future Sales Growth Driver:
Indirect Channel
• Partnering strategy provides single point of
access to large customer bases, reducing
closing time and sales costs
• Multi-tenant, CMS Platforms offer economies of
scale to make delivering the AudioEye solution
practical and affordable
• Focus on large, high volume markets with
compelling demand drivers - proven approach
in banking, ramped to 640+ customers in 18
months
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Summary Financial Performance and Guidance
• Rapidly ramping, predictable recurring revenue stream, new cash contract bookings
• Increasing gross margins, controlled opex, reducing cash burn quarter over quarter
YTD FY 2018
(in USD millions) FY 2015 FY 2016 FY 2017
9/30/2018(1) Guidance(2)
Bookings $0.3 $1.9 $6.3 $8.0M $11-12M
Def. Revenue $.01 $0.4 $1.2 -- --
Revenue $0.3 $1.0 $2.7 $3.88M $5M - $6M
Gross Margin % (261%) (23%) 49% -- --
GAAP OpEx $6.4 $4.2 $5.9 -- --
Cash Flow(3) $(5.5) $(2.3) ($1.6) -- --
1. Unaudited; subject to change
2. FY2018 estimate as announced on July 10th 2018.
3. Cash flow reflects “net cash used in operating activities” adjusted for non-cash charges as reported in the company’s SEC filings.
(1) Past performance does not guarantee future results. Actual results may vary materially from projections.
Nasdaq: AEYE (2) Management Projections. Actual results may vary materially from projections. 16
AudioEye’s Margins Improve Over the Life of a
Contract
• Initial implementation/provisioning is ~ 100 days, where most of our costs occur; margins
generally expand thereafter
• Ongoing maintenance costs are lower
• Average gross margin across customer base is 81%+
83% 87% 90% 76% 90% 95% 98% 84%* 95% 96%
59% 54%
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Retention Rates and Average Contract Lengths
Stickiness of customer base driven by high switching costs once
compliance is achieved
95%
30.0
26.4 26.4
19.2 18.0
9.6
Ally Clients only; excludes month-to-month contracts; blended
channels; as of YTD 11/30
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AudioEye Investment Highlights
Large Total Addressable Market with
Demonstrated Need/Demand
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Appendix
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Company Introductions
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Indirect Channel Partner Matrix
Addressable Market
Target Vertical Existing Partners in Vertical Partner Penetration
(# of sites)
Hospitality & Tourism 100k+ Hospitality & Destination 300 Hyperdisk (New) (New)
marketing 600 Simpleview (New) (New)
Existing partner opportunity estimates based on AudioEye’s analysis of partners’ active subscriber bases and historical ARPU with
Nasdaq: AEYE related partners. Actual results may vary. 22
New Partner Highlights: Oracle Netsuite
Oracle Netsuite
§ World’s #1 Cloud ERP Vendor
§ 2,000+ Sales Representatives selling to
40,000 Potential Customers
§ Multiple key targeted verticals including:
§ Campus Stores
§ Software / Internet Companies
§ Wholesale Distribution
§ Advertising and Digital Marketing Agencies
§ Media and Publishing
§ Financial Services
§ Healthcare
§ Nonprofit
§ Retail
§ Manufacturing
§ IT Services
§ Professional Services
§ Consulting
§ Energy
http://suiteapp.com/Ally-Managed-Service § Education
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New Partner Highlights: Cox Automotive
Cox Automotive / Dealer.com
§ Preeminent leader of dealership
websites
§ ~16,000 Potential Websites
https://www.dealer.com/products/websites/
https://www.dealer.com/products/websites/
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New Partner Highlights: Simpleview
Simpleview
§ 600+ Potential Customers
§ Destination Marketing Industry Leaders
§ Tucson-based
https://www.visitoakland.com/
https://www.simpleviewinc.com/your-solutions/digital-accessibility/
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