UserWay Reports H1 2023 Results: 81% ARR Growth, Anticipates Cash Flow Breakeven as DOJ Set to Roll Out Historic Digital Accessibility Regulation

News provided by

Aug 15, 2023, 09:04 ET

UserWay's advancements in AI and increasing regulatory pressure drive a 60% YoY increase in paying customers for the digital accessibility and compliance platform.

WILMINGTON, Del., Aug. 15, 2023 /PRNewswire/ -- UserWay (TASE: UWAY), a full-service provider of digital accessibility software, announced outstanding financial results for the first half ended June 30, 2023. The company reported a record surge in Annual Recurring Revenue (ARR) of 81% compared to the corresponding period in 2022, reaching approximately $12 million. UserWay now anticipates reaching its cash flow breakeven by the end of 2023.

Regulatory pressure is set to skyrocket, with the U.S. Department of Justice now proposing groundbreaking federal regulation on website accessibility, for the first time in the 33-year history of the Americans with Disabilities Act (the ADA). And by 2025, European accessibility laws will finally be enforced across the EU.

UserWay CEO, Allon Mason, said, "UserWay's momentum is fueled by our commitment to bridging the digital disability divide with our customers, partners, and stakeholders. By making millions of websites, digital documents, and apps inclusive and ADA compliant, we're raising the bar for the accessible web. Our advancements in automation and AI make it easier for teams to reach their accessibility and compliance objectives faster than ever.

Approaching cash flow break even:

UserWay has achieved a doubling of revenue and gross profit from the corresponding period of the last fiscal year and reports that:

The company's ARR grew by 80.89% from June 2022, reaching approximately $12 million;
The company reported a 29% increase in bookings for Q2 2023, on a quarter-over-quarter basis.
Bookings in H1 2023 amounted to about $6.8 million with monthly bookings surpassing the $1 million mark for seven out of the last eight months.
The number of paying customers continued to grow, reaching 6,800 customers, representing a 60% increase from the same period last year.
As of mid-2023, cash reserves stand at roughly $7.8 million. Negative cash flow was reduced from $1.8 million in the first half of 2022 to a mere $400,000 in the current period.

AI-powered accessibility is a must-have for global businesses seeking compliance and usability at scale

In this period, UserWay expanded its customer base across more verticals and markets and introduced a beta of FixMyCode.ai, a generative AI tool aiding developers in crafting ADA-compliant code aligned with WCAG guidelines.

In a letter to shareholders today, Mason wrote, "UserWay operates in a wide open market with around 200 million active websites subject to increasing digital accessibility regulations and enforcement. These businesses seek solutions like UserWay, which reduce cost, save time, and seamlessly integrate with most major online CMS platforms.

I'd like to thank our customers, team members, investors, and the community for your trust and partnership. Together, we're creating a more equitable digital future for all."

Forward-looking statements:

This press release may contain forward-looking statements. The projection of attaining cash flow break even is based on forward-looking information, as stipulated in the Israeli Securities Law, 1968. Various external factors, including financial outcomes and unforeseen cost structure changes, may influence these projections.

About UserWay:

UserWay is a global digital accessibility and compliance platform committed to enabling the fundamental human right of digital inclusion. UserWay solutions are trusted by millions of websites globally to increase usability for users of different abilities. Al-powered technologies, combined with human-in-the-loop processes, help websites, apps, and digital documents more readily achieve compliance with accessibility regulations, such as the ADA, Section 508, AODA and EAA, and internationally recognized standards such as WCAG 2.1 AA, WCAG 2.2, and EN 301 549.

UserWay contact:

Sophia Tupolev-Luz
VP Communications
[email protected]
UserWay.org

Logo - https://mma.prnewswire.com/media/1930675/UserWay_Logo.jpg

SOURCE UserWay