The AudioEye Solutions
At its core, AudioEye’s offering provides an always-on testing, remediation, and monitoring solution that continually improves conformance with WCAG. This in turn helps businesses and organizations comply with WCAG standards as well as applicable U.S. and foreign accessibility laws. Our technology is capable of immediately identifying and fixing most of the common accessibility errors and addresses a wide range of disabilities including dyslexia, color blindness, epilepsy and more. AudioEye also offers additional solutions to provide for enhanced compliance and accessibility, including periodic manual auditing, manual remediations and legal support services. Our solutions may be purchased through a subscription service on a month-to-month basis or with one or multi-year terms. We also offer PDF remediation services and Website and Native Mobile App audit reports to help our customers with their digital accessibility needs.
Intellectual Property
Our intellectual property is primarily comprised of copyrights, trademarks, trade secrets, issued patents and pending patent applications. We have a patent portfolio comprised of twenty-three (23) issued patents in the United States and three (3) pending US patent applications. The commercial value of these patents is unknown.
We plan to continue to invest in research and development and expand our portfolio of proprietary intellectual property.
Our Annual Report filed on Form 10-K for the year ended December 31, 2021 as filed with the SEC on March 11, 2022 provides additional information about our business and operations.
Executive Overview
AudioEye is an industry-leading digital accessibility platform delivering website accessibility compliance at all price points to businesses of all sizes. Our solutions advance accessibility with patented technology that reduces barriers, expands access for individuals with disabilities, and enhances the user experience for a broader audience. In the first quarter of 2022 we focused on the continued expansion of revenue and product innovation.
We have two sales channels to deliver our product, the Partner and Marketplace channel and the Enterprise channel. AudioEye continues to focus on growth in both channels, with specific focus on growing recurring revenue in 2022, while still offering our Mobile App and PDF services. On March 9, 2022, AudioEye acquired the Bureau of Internet Accessibility which will contribute to Enterprise revenue in 2022. As of March, 31, 2022, Annual Recurring Revenue (“ARR”) was approximately $28.1 million, which represented an increase of 22% year-over-year. Refer to Other Key Operating Metrics below for details on how we calculate ARR.
As at March 31, 2022, AudioEye had approximately 74,000 customers, up from approximately 68,000 at March 31, 2021, but down sequentially from 82,000 customers at December 2021. The customer count decreased from December 31, 2021, due to an ongoing negotiation with a digital agency upgrading from a basic tier to a more advanced offering. Excluding the impact from this digital agency, our customer count grew sequentially. Revenue from our Partners and Marketplace grew 20% from prior year. This channel represented about 55% of ARR contribution at the end of March 2022.
Total Enterprise revenue, inclusive of revenue from the Bureau of Internet Accessibility from the period of March 10, 2022, to the end of the first quarter 2022, grew by 18% from prior year. Enterprise revenue from recurring sources increased by 18% in 2022 over prior comparable period. The contribution of non-recurring website audit report revenue from the Bureau of Internet Accessibility offset the decrease in PDF project-oriented revenue in the quarter. The Enterprise channel represented about 45% of ARR contribution at the end of March 2022.
In the three months ended March 31, 2022, one customer (including affiliates of such customer) accounted for 18% of our total revenue; this is compared to the three months ended March 31, 2021, two customers accounted for 20% and 10%, respectively, of our total revenue.
The Company continued to invest in Research and development in the first quarter of 2022. As a percent of revenue, Research and development cost was 26% of total revenue, an increase from 22% in same period of prior year. Sales and marketing expense also