The Digital Accessibility disruptor is benefiting from the increased regulation and demand for web accessibility, and seems to be outpacing NASDAQ competitor AudioEye.
UserWay (TASE: UWAY), the Israeli-based company revolutionizing the field of digital accessibility, has reported a stellar increase in growth during the first half (H1) of 2023 and recently announced the appointment of a new Vice President of Growth.
The company's performance, outlined in a recent letter from CEO Allon Mason to shareholders and reinforced in a recently published H1 report, shows that UserWay seems to be on a promising trajectory. The digital accessibility software firm reported an increase in its annual recurring revenue (ARR) to approximately $12 million, a robust growth of 81% compared to H1 2022.
Moreover, UserWay's booking numbers for H1 2023 totalled around $6.8 million, far outpacing the same period last year when order numbers stood at about $4.1 million. The company's stock, traded on the Tel Aviv Stock exchange, has risen by approximately 80% since the start of 2023, reflecting a current market value of around 194 million ILS (approximately 51.5 million dollars). In stark contrast, AudioEye, another player in the field that trades on the NASDAQ, recently reported a Q2 loss with results lagging revenue estimates. AudioEye has faced a significant decrease in market value, losing over 50% in share price in the last three years. This further underlines the impressive resilience and growth trajectory of UserWay amidst challenging market conditions.
UserWay also witnessed substantial growth in its paying customer base. The number increased to around 6,800, compared to 5,100 at the end of 2022 and 4,200 at the end of H1 2022. This signifies a growth rate of approximately 60% in the number of paying customers compared to the corresponding period last year.
Mason emphasized the importance of digital accessibility, stating that it is undergoing a transformative shift from being considered a 'nice-to-have' to a 'must-have' among companies and organizations worldwide. Mason noted that improving internet accessibility is not only a regulatory obligation but also a public and ethical responsibility to ensure digital equality for all population sectors.
In addition to growth numbers, the CEO highlighted the impact of UserWay's AI-Powered Accessibility Solution, citing a case study performed with a company called Natural Intelligence that reported substantial website improvements after installing the solution. This resulted in a 2.4% increase in revenues-per-click, a 3.5% rise in revenues-per-visit, a 1% rise in click-through-rate, and a 0.5% decrease in bounce rates on the website. Top-tier clients such as Dassault Systems have recently been added to UserWay's portfolio, joining the ranks of many existing clients who have renewed their service for extended periods.
Amidst this impressive performance, UserWay has also recently announced the appointment and promotion of Shahar Amiel as the new Vice President of Growth. With twelve years of experience in strategic development and performance marketing, Amiel formerly managed Growth and Performance Marketing at Verbit.ai, a renowned two billion dollar technology giant producing AI-based algorithms for accessible audio and video. Before his new appointment, Amiel served as UserWay's Head of Growth.
As UserWay continues to innovate and expand the reach of its technology, the company stands at the forefront of digital accessibility. With the promotion of Amiel and the continued impressive growth, UserWay seems poised to champion accessibility further and bridge the digital disability divide, harnessing the vast potential of a market spanning over 200 million websites.
