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AvidXchange Announces Third Quarter 2024 Financial Results

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AvidXchange (AVDX) reported strong Q3 2024 financial results with total revenue reaching $112.8 million, up 14.3% year-over-year. The company achieved GAAP net income of $4.0 million, compared to a net loss of $(8.1) million in Q3 2023. Notable metrics include non-GAAP gross margin of 74.5% and adjusted EBITDA margin of 20.7%. The company processed 20.2 million transactions and handled $21.5 billion in payment volume. Based on strong performance, AvidXchange raised its 2024 outlook, projecting revenue of $437.0-$439.0 million and adjusted EBITDA of $78.0-$79.0 million.

AvidXchange (AVDX) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un fatturato totale di 112,8 milioni di dollari, in aumento del 14,3% rispetto all’anno precedente. L'azienda ha registrato un utile netto GAAP di 4,0 milioni di dollari, rispetto a una perdita netta di (8,1) milioni di dollari nel Q3 2023. Le metriche notevoli includono un margine lordo non-GAAP del 74,5% e un margine EBITDA rettificato del 20,7%. L'azienda ha elaborato 20,2 milioni di transazioni e gestito un volume di pagamenti di 21,5 miliardi di dollari. Sulla base delle solide performance, AvidXchange ha rivisto al rialzo le sue previsioni per il 2024, prevedendo un fatturato di 437,0-439,0 milioni di dollari e un EBITDA rettificato di 78,0-79,0 milioni di dollari.

AvidXchange (AVDX) informó sobre resultados financieros sólidos para el tercer trimestre de 2024, con ingresos totales que alcanzaron 112,8 millones de dólares, un 14,3% más en comparación con el año anterior. La compañía logró un ingreso neto GAAP de 4,0 millones de dólares, en comparación con una pérdida neta de (8,1) millones de dólares en el tercer trimestre de 2023. Las métricas notables incluyen un margen bruto no GAAP del 74,5% y un margen EBITDA ajustado del 20,7%. La empresa procesó 20,2 millones de transacciones y manejó un volumen de pagos de 21,5 mil millones de dólares. Basándose en un sólido desempeño, AvidXchange ha elevado sus perspectivas para 2024, proyectando ingresos de 437,0-439,0 millones de dólares y un EBITDA ajustado de 78,0-79,0 millones de dólares.

AvidXchange (AVDX)는 2024년 3분기 강력한 재무 결과를 보고했으며, 총 수익이 1억 1280만 달러에 달해 전년 대비 14.3% 증가했습니다. 회사는 GAAP 기준 순이익을 400만 달러로 기록했으며, 이는 2023년 3분기의 순손실 (810만 달러)에 비해 개선된 수치입니다. 주목할 만한 지표로는 비GAAP 총 마진이 74.5%이고, 조정된 EBITDA 마진이 20.7%입니다. 회사는 2020만 건의 거래를 처리하고 215억 달러의 결제량을 처리했습니다. 강력한 실적에 기반하여 AvidXchange는 2024년 전망을 상향 조정하며, 4억 3700만-4억 3900만 달러의 수익과 7800만-7900만 달러의 조정된 EBITDA를 예상하고 있습니다.

AvidXchange (AVDX) a rapporté de solides résultats financiers pour le troisième trimestre de 2024, avec un chiffre d'affaires total atteignant 112,8 millions de dollars, en hausse de 14,3 % par rapport à l'année précédente. L'entreprise a enregistré un bénéfice net GAAP de 4,0 millions de dollars, contre une perte nette de (8,1) millions de dollars au T3 2023. Parmi les indicateurs notables, on trouve une marge brute non GAAP de 74,5 % et une marge EBITDA ajustée de 20,7 %. L'entreprise a traité 20,2 millions de transactions et géré un volume de paiements de 21,5 milliards de dollars. Sur la base de ses performances solides, AvidXchange a relevé ses prévisions pour 2024, prévoyant un chiffre d'affaires de 437,0-439,0 millions de dollars et un EBITDA ajusté de 78,0-79,0 millions de dollars.

AvidXchange (AVDX) berichtete über starke Finanzkennzahlen für das dritte Quartal 2024, wobei der Gesamtumsatz 112,8 Millionen US-Dollar erreichte, was einem Anstieg von 14,3% im Vergleich zum Vorjahr entspricht. Das Unternehmen erzielte einen GAAP-Nettoertrag von 4,0 Millionen US-Dollar, verglichen mit einem Nettoverlust von (8,1) Millionen US-Dollar im dritten Quartal 2023. Zu den bemerkenswerten Kennzahlen gehören eine Non-GAAP-Großmarge von 74,5% und eine bereinigte EBITDA-Marge von 20,7%. Das Unternehmen verarbeitete 20,2 Millionen Transaktionen und bearbeitete ein Zahlungsvolumen von 21,5 Milliarden US-Dollar. Basierend auf der starken Leistung hat AvidXchange seine Prognose für 2024 angehoben und erwartet einen Umsatz von 437,0-439,0 Millionen US-Dollar und ein bereinigtes EBITDA von 78,0-79,0 Millionen US-Dollar.

Positive
  • Revenue increased 14.3% YoY to $112.8 million
  • Achieved GAAP net income of $4.0 million vs $(8.1) million loss in Q3 2023
  • Non-GAAP gross margin improved to 74.5% from 70.0% YoY
  • Adjusted EBITDA doubled to $23.3 million from $11.4 million YoY
  • Payment volume grew 9.4% to $21.5 billion
  • Raised full-year 2024 adjusted EBITDA guidance to $78.0-$79.0 million
Negative
  • Transaction growth slowed to 5.2% YoY
  • Political revenue contribution forecast reduced from $9.0M to $6.5M

Insights

The Q3 2024 results demonstrate robust financial performance with several key achievements: 14.3% year-over-year revenue growth to $112.8 million and impressive margin expansion with non-GAAP gross margin reaching 74.5% and adjusted EBITDA margin at 20.7%. The company achieved GAAP profitability with $4.0 million in net income, compared to a loss in the previous year.

Notable financial improvements include a four-fold increase in operating cash flow to $24.6 million and successful debt restructuring, replacing $63 million term debt with a more favorable $150 million credit facility. The company maintains a strong liquidity position with $394.3 million in cash and marketable securities.

The raised guidance for FY2024, particularly in adjusted EBITDA ($78.0-79.0 million vs. previous $73.0-75.0 million), signals management's confidence in continued operational efficiency and growth momentum.

The operational metrics reveal solid business fundamentals with transaction volume up 5.2% to 20.2 million and payment volume increasing 9.4% to $21.5 billion. The 8.5% improvement in transaction yield to $5.59 indicates stronger monetization of the platform.

Strategic initiatives including Payment 2.0 Platform, Payment Accelerator 2.0 and Spend Management solutions position the company well for sustained growth. The improving transaction retention trends, despite a challenging macro environment, suggest strengthening market position in the middle-market AP automation space.

  • Q3'24 financial results highlight significant year-over-year gross margin and operating margin expansion driven by strong revenue growth, unit cost efficiencies and operating expense leverage
  • $25.1 million of the $100 million share repurchase program executed in the third quarter of 2024
  • Sustaining a strong balance sheet with cash and marketable securities of $394.3 million while extinguishing pre-existing term debt and establishing a new larger credit facility
  • Strong Q3'24 financial results drive upward revision in 2024 revenue and adjusted EBITDA outlook

CHARLOTTE, N.C., Nov. 06, 2024 (GLOBE NEWSWIRE) -- AvidXchange Holdings, Inc. (Nasdaq: AVDX), a leading provider of accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers, today announced financial results for the third quarter ended September 30, 2024.

“We delivered solid third quarter 2024 results as measured by virtually every key metric. Starting with year over year revenue growth, which rose by 14.3%, non-GAAP gross margin and adjusted EBITDA margin came in at 74.5% and 20.7%, respectively. Both the non-GAAP gross margin and adjusted EBITDA margin in the quarter were at the top-end or exceeded the range/targets laid out during the Company’s June 1, 2023 Investor Day. Meanwhile, net cash from operating activities was up more than four-fold to $24.6 million as we extinguished and replaced our higher interest rate $63 million of pre-existing term debt with a relatively cheaper and larger new $150 million credit facility with a potential $150 million accordion feature. Because of the strong execution on our transformational value proposition of accounts payable and payments automation we deliver to our middle market buyer customers and their suppliers through our proprietary two-sided network that we are in such a strong financial position. While the macro backdrop still remains choppy, the recent inflection in transaction retention trends is encouraging. That coupled with the recently launched integration partnerships as well as launching and scaling of new products such as Payment 2.0 Platform, Payment Accelerator 2.0, Spend Management, etc., should advance our growth, profit and value creation objectives,” said Michael Praeger, Chief Executive Officer & Co-Founder of AvidXchange.

Third Quarter 2024 Financial Highlights:

  • Total revenue was $112.8 million, an increase of 14.3% year-over-year, compared with $98.7 million in the third quarter of 2023. Third quarter 2023 total revenue included a favorable out of period adjustment, the net contribution of which was $1.5 million. Of the $1.5 million in net favorable contribution, $1.1 million favorably benefited software revenue and $0.5 million favorably benefited services revenue, while approximately $0.1 million was unfavorable to payment revenue.
  • Revenue included interest income of $12.7 million compared with $10.6 million in the third quarter of 2023.
  • GAAP net income was $4.0 million, compared with a GAAP net loss of $(8.1) million in the third quarter of 2023. Third quarter 2023 GAAP net income included a favorable out of period adjustment, the net of tax contribution of which was $1.5 million.
  • Non-GAAP net income was $15.7 million, compared with $5.8 million in the third quarter of 2023. Third quarter 2023 Non-GAAP net income included a favorable out of period adjustment, the net of tax contribution of which was $1.1 million.
  • GAAP gross profit was $76.4 million, or 67.7% of total revenue, compared with $62.3 million, or 63.2% of revenue in the third quarter of 2023. Third quarter 2023 GAAP gross profit included a favorable out of period adjustment, the net contribution of which was $1.5 million.
  • Non-GAAP gross profit was $84.0 million, or 74.5% of total revenue, compared with $69.1 million, or 70.0% of revenue in the third quarter of 2023. Third quarter 2023 Non-GAAP gross profit included a favorable out of period adjustment, the net contribution of which was $1.5 million.
  • Adjusted EBITDA was $23.3 million compared with $11.4 million in the third quarter of 2023. Third quarter 2023 adjusted EBITDA included a favorable out of period adjustment, the net contribution of which was $1.5 million.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables following the financial statements in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Measures and Other Performance Metrics."

Third Quarter 2024 Key Business Metrics and Highlights:

  • Total transactions processed in the third quarter of 2024 were 20.2 million, an increase of 5.2% from 19.2 million in the third quarter of 2023.
  • Total payment volume in the third quarter of 2024 was $21.5 billion, an increase of 9.4% from $19.6 billion in the third quarter of 2023.
  • Transaction yield in the third quarter of 2024 was $5.59, an increase of 8.5% from $5.15 in the third quarter of 2023. Third quarter 2023 transaction yield included a favorable out of period adjustment, the net contribution of which was $1.5 million, or $0.08.

Full Year 2024 Financial Outlook

As of November 6, 2024, AvidXchange anticipates its Full Year 2024 revenue, adjusted EBITDA and Non-GAAP diluted earnings per share (EPS) to be in the following ranges (in millions, except per share data):                                                

 Current
FY 2024 Guidance
 Previous
FY 2024 Guidance
Revenue (1&2)$437.0 - $439.0 $436.0 - $439.0
Adjusted EBITDA(1,2&3)$78.0 - $79.0 $73.0 - $75.0
Non-GAAP Diluted EPS(3)$0.24 - $0.25  
  1. The current FY 2024 guidance anticipates interest revenue contribution of approximately $50.0 million compared to $49.0 million previously
  2. The current FY 2024 guidance anticipates political revenue contribution of approximately $6.5 million compared to $9.0 million previously
  3. Reconciliation of adjusted EBITDA to GAAP net loss and Non-GAAP diluted EPS to basic and diluted EPS on a forward-looking basis is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the items excluded from the non-GAAP measures.

These statements are forward-looking and actual results may differ materially. Refer to the Forward-Looking Statements safe harbor below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Earnings Teleconference Information
AvidXchange will discuss its third quarter 2024 financial results during a teleconference today, November 6, 2024, at 10:00 AM ET. The call will be broadcast simultaneously via webcast at https://ir.avidxchange.com/. Following the completion of the call, a recorded replay of the webcast will be available on AvidXchange’s website. In addition to the conference call, supplemental information is available on the Investor Relations section of AvidXchange’s website at https://ir.avidxchange.com/.

About AvidXchange™
AvidXchange is a leading provider of accounts payable (“AP”) automation software and payment solutions for middle market businesses and their suppliers. AvidXchange’s software-as-a-service-based, end-to-end software and payment platform digitizes and automates the AP workflows for more than 8,000 businesses and it has made payments to more than 1,200,000 supplier customers of its buyers over the past five years. To learn more about how AvidXchange is transforming the way companies pay their bills, visit www.AvidXchange.com.

Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements generally relate to future events or our future financial or operating performance and often contain words such as: “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “outlook,” “project,” “estimate,” “expect,” “future,” “likely,” “may,” “should,” “continue,” “will” and similar words and phrases indicating future results. The information presented in this press release related to our expectations of future performance, including guidance for our revenue and Adjusted EBITDA for the full year 2024, the continued strength of our financial position and execution on behalf of buyers and suppliers, the macroeconomic backdrop within verticals in which we have domain expertise, future trends reflecting transaction retention, our ability to accelerate revenue growth, the advancement of our growth, profit and value creation objectives through integration partnerships and the launch and scaling of new products, and other statements that are not purely statements of historical fact, are forward-looking in nature. These forward-looking statements are made on the basis of management’s current expectations, assumptions, estimates and projections and are subject to significant risks and uncertainties that could cause actual results to differ materially from those anticipated in such forward-looking statements. We therefore cannot guarantee future results, performance or achievements.

Factors which could cause actual results or effects to differ materially from those reflected in forward-looking statements include, but are not limited to, the risk factors and other cautionary statements described, from time to time, in AvidXchange’s filings with the Securities and Exchange Commission (“SEC”), including, without limitation, AvidXchange’s Annual Report on Form 10-K and other documents filed with the SEC, which may be obtained on the investor relations section of our website (https://ir.avidxchange.com/) and on the SEC website at www.sec.gov. Any forward-looking statements made by us in this press release are based only on information currently available to us and speak only as of the date they are made, and we assume no obligation to update any of these statements in light of new information, future events or otherwise unless required under the federal securities laws.

Non-GAAP Measures and Other Performance Metrics
To supplement the financial measures presented in our press release and related conference call in accordance with generally accepted accounting principles in the United States (“GAAP”), we also present the following non-GAAP measures of financial performance: Non-GAAP Gross Profit, Adjusted EBITDA, Non-GAAP Net Income (Loss) and Non-GAAP Earnings Per Share.

A “non-GAAP financial measure” refers to a numerical measure of our historical or future financial performance or financial position that is included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in our financial statements. We provide certain non-GAAP measures as additional information relating to our operating results as a complement to results provided in accordance with GAAP. The non-GAAP financial information presented herein should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that of other companies.

We have presented Non-GAAP Gross Profit, Adjusted EBITDA, Non-GAAP Net Income (Loss) and Non-GAAP Earnings Per Share in this press release. We define Non-GAAP Gross Profit as revenue less cost of revenue excluding the portion of depreciation and amortization and stock-based compensation expense allocated to cost of revenues. We define Adjusted EBITDA as our net loss before depreciation and amortization, impairment and write-off of intangible assets, interest income and expense, income tax expense (benefit), stock-based compensation expense, transaction and acquisition-related costs expensed, change in fair value of derivative instrument, non-recurring items not indicative of ongoing operations, and charitable contributions of common stock. We define Non-GAAP Net Income (Loss) as net loss before amortization of acquired intangible assets, impairment and write-off of intangible assets, stock-based compensation expense, transaction and acquisition-related costs expensed, change in fair value of derivative instrument, non-recurring items not indicative of ongoing operations, acquisition-related effects on income tax, and charitable contributions of common stock. Non-GAAP income tax expense is calculated using our blended statutory rate except in periods of non-GAAP net loss when it is based on our GAAP income tax expense. In each case, non-GAAP income tax expense excludes the effects of acquisitions in the period on tax expense. We define Non-GAAP Earnings per Share as Non-GAAP Net Income (Loss) per diluted share.

We believe the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of our core operations or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance.

Availability of Information on AvidXchange’s Website
Investors and others should note that AvidXchange routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts, and the Investor Relations section of AvidXchange’s website. While not all information that AvidXchange posts to the Investor Relations website is of a material nature, some information could be deemed to be material. Accordingly, AvidXchange encourages investors, the media and others interested in AvidXchange to review the information that it shares at the Investor Relations link located at https://ir.avidxchange.com. Users may automatically receive email alerts and other information about AvidXchange when enrolling an email address by visiting “Email Alerts” in the “Resources” section of AvidXchange’s Investor Relations website https://ir.avidxchange.com.

Investor Contact:

Subhaash Kumar
Skumar1@avidxchange.com
813.760.2309

 
AvidXchange Holdings, Inc.
Consolidated Statements of Operations
(in thousands, except share and per share data)
 
  Three Months Ended September 30,  Nine Months Ended September 30, 
  2024  2023  2024  2023 
Revenues $112,772  $98,680  $323,502  $276,656 
Cost of revenues (exclusive of depreciation and amortization expense)  30,429   30,767   91,188   90,461 
Operating expenses            
Sales and marketing  21,102   18,735   60,799   58,946 
Research and development  25,125   24,754   76,037   72,616 
General and administrative  25,769   25,002   72,664   75,345 
Impairment and write-off of intangible assets  -   -   162   - 
Depreciation and amortization  9,092   9,051   27,607   26,515 
Total operating expenses  81,088   77,542   237,269   233,422 
Income (loss) from operations  1,255   (9,629)  (4,955)  (47,227)
Other income (expense)            
Interest income  5,837   5,100   18,378   14,820 
Interest expense  (2,614)  (3,428)  (9,274)  (10,106)
Other income  3,223   1,672   9,104   4,714 
Income (loss) before income taxes  4,478   (7,957)  4,149   (42,513)
Income tax expense  431   134   675   339 
Net income (loss) $4,047  $(8,091) $3,474  $(42,852)
Net income (loss) per share attributable to common stockholders:            
Basic $0.02  $(0.04) $0.02  $(0.21)
Diluted $0.02  $(0.04) $0.02  $(0.21)
Weighted average number of common shares used to compute net income (loss) per share attributable to common stockholders:            
Basic  207,235,954   202,526,844   206,389,565   201,338,550 
Diluted  209,015,661   202,526,844   209,721,858   201,338,550 


 
AvidXchange Holdings, Inc.
Consolidated Balance Sheets
(in thousands, except share and per share data)
 
  As of September 30,  As of December 31, 
  2024  2023 
Assets      
Current assets      
Cash and cash equivalents $315,324  $406,974 
Restricted funds held for customers  1,154,280   1,578,656 
Marketable securities  78,957   44,645 
Accounts receivable, net of allowances of $4,738 and $4,231, respectively  56,102   46,689 
Supplier advances receivable, net of allowances of $1,664 and $1,333 respectively  13,965   9,744 
Prepaid expenses and other current assets  12,678   12,070 
Total current assets  1,631,306   2,098,778 
Property and equipment, net  98,433   100,985 
Operating lease right-of-use assets  1,279   1,628 
Deferred customer origination costs, net  27,678   27,663 
Goodwill  165,921   165,921 
Intangible assets, net  74,033   84,805 
Other noncurrent assets and deposits  6,399   3,957 
Total assets $2,005,049  $2,483,737 
Liabilities and Stockholders' Equity      
Current liabilities      
Accounts payable $15,991  $16,777 
Accrued expenses  47,473   56,367 
Payment service obligations  1,154,280   1,578,656 
Deferred revenue  13,076   12,851 
Current maturities of lease obligations under finance leases  171   275 
Current maturities of lease obligations under operating leases  1,659   1,525 
Current maturities of long-term debt  4,800   6,425 
Total current liabilities  1,237,450   1,672,876 
Long-term liabilities      
Deferred revenue, less current portion  12,395   14,742 
Obligations under finance leases, less current maturities  62,863   62,464 
Obligations under operating leases, less current maturities  2,291   3,275 
Long-term debt  9,100   69,760 
Other long-term liabilities  4,152   4,175 
Total liabilities  1,328,251   1,827,292 
Commitments and contingencies      
Stockholders' equity      
Preferred stock, $0.001 par value; 50,000,000 shares authorized, no shares issued and outstanding as of September 30, 2024 and December 31, 2023  -   - 
Common stock, $0.001 par value; 1,600,000,000 shares authorized as of September 30, 2024 and December 31, 2023; 205,517,689 and 204,084,024 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively  205   204 
Additional paid-in capital  1,695,279   1,678,401 
Accumulated deficit  (1,018,686)  (1,022,160)
Total stockholders' equity  676,798   656,445 
Total liabilities and stockholders' equity $2,005,049  $2,483,737 


 
AvidXchange Holdings, Inc.
Consolidated Statements of Cash Flows
(in thousands)
 
  Nine Months Ended September 30, 
  2024  2023 
Cash flows from operating activities      
Net income (loss) $3,474  $(42,852)
Adjustments to reconcile net income (loss) to net cash used by operating activities      
Depreciation and amortization expense  27,607   26,515 
Amortization of deferred financing costs  310   326 
Debt extinguishment costs  1,081   - 
Provision for credit losses  2,985   2,118 
Stock-based compensation  35,128   31,181 
Accrued interest  1,192   1,509 
Impairment and write-off on intangible assets  162   - 
Accretion of investments held to maturity  (3,322)  (4,091)
Deferred income taxes  267   158 
Changes in operating assets and liabilities      
Accounts receivable  (10,398)  (2,221)
Prepaid expenses and other current assets  (608)  (851)
Other noncurrent assets  (1,215)  1,369 
Deferred customer origination costs  (14)  785 
Accounts payable  (786)  4,679 
Deferred revenue  (2,122)  (1,650)
Accrued expenses and other liabilities  (9,759)  (27,588)
Operating lease liabilities  (500)  (378)
Total adjustments  40,008   31,861 
Net cash provided by (used in) operating activities  43,482   (10,991)
Cash flows from investing activities      
Purchase of marketable securities held to maturity  (120,996)  (262,994)
Proceeds from maturity of marketable securities held to maturity  90,006   277,428 
Purchases of equipment  (1,505)  (1,001)
Purchases of intangible assets  (12,939)  (11,898)
Supplier advances, net  (6,222)  (1,309)
Net cash (used in) provided by investing activities  (51,656)  226 
Cash flows from financing activities      
Repayments of long-term debt  (63,375)  (1,219)
Principal payments on finance leases  (223)  (435)
Proceeds from issuance of common stock  5,593   1,452 
Proceeds from issuance of common stock under ESPP  1,220   1,178 
Payment of debt issuance costs  (1,529)  (743)
Repurchases of common stock  (25,062)  - 
Payment of acquisition-related liability  (100)  (100)
Payment service obligations  (424,376)  (57,607)
Net cash used in financing activities  (507,852)  (57,474)
Net decrease in cash, cash equivalents, and restricted funds held for customers  (516,026)  (68,239)
Cash, cash equivalents, and restricted funds held for customers      
Cash, cash equivalents, and restricted funds held for customers, beginning of year  1,985,630   1,634,387 
Cash, cash equivalents, and restricted funds held for customers, end of period $1,469,604  $1,566,148 
Supplementary information of noncash investing and financing activities      
Property and equipment purchases in accounts payable and accrued expenses $-  $939 
Right-of-use assets obtained in exchange for new financing lease obligations  -   81 
Right-of-use assets obtained in exchange for new operating lease obligations  -   362 
Interest paid on notes payable  3,270   3,889 
Interest paid on finance leases  4,448   4,386 
Cash paid for income taxes  393   212 


 
AvidXchange Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Measures
 
  Three Months Ended September 30,  Nine Months Ended September 30, 
  2024  2023  2024  2023 
Reconciliation from Revenue to Non-GAAP Gross Profit and Non-GAAP Gross Margin:            
Total revenues $112,772  $98,680  $323,502  $276,656 
Expenses:            
Cost of revenues (exclusive of depreciation and amortization expense)  (30,429)  (30,767)  (91,188)  (90,461)
Depreciation and amortization expense  (5,977)  (5,574)  (18,075)  (16,157)
GAAP Gross profit(1) $76,366  $62,339  $214,239  $170,038 
Adjustments:            
Stock-based compensation expense  1,653   1,144   4,510   3,552 
Depreciation and amortization expense  5,977   5,574   18,075   16,157 
Non-GAAP gross profit $83,996  $69,057  $236,824  $189,747 
GAAP Gross margin  67.7%  63.2%  66.2%  61.5%
Non-GAAP gross margin  74.5%  70.0%  73.2%  68.6%


 
AvidXchange Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Measures (Continued)
 
  Three Months Ended September 30,  Nine Months Ended September 30, 
Reconciliation from Net Income (Loss) to Non-GAAP Net Income (Loss), including per share amounts 2024  2023  2024  2023 
(in thousands, except share and per share data)            
Net income (loss) $4,047  $(8,091) $3,474  $(42,852)
Exclude: Provision for income taxes  431   134   675   339 
Loss before taxes  4,478   (7,957)  4,149   (42,513)
Amortization of acquired intangible assets  3,413   3,623   10,240   10,870 
Impairment and write-off of intangible assets  -   -   162   - 
Stock-based compensation expense  11,850   11,229   35,128   31,181 
Transaction and acquisition-related costs(1)  1,081   -   1,081   (7)
Non-recurring items not indicative of ongoing operations (2)  21   773   (609)  4,408 
Total net adjustments  16,365   15,625   46,002   46,452 
Non-GAAP income (loss) before taxes  20,843   7,668   50,151   3,939 
Non-GAAP tax expense (3)  5,190   1,909   12,488   981 
Non-GAAP net income (loss) $15,653  $5,759  $37,663  $2,958 
             
Weighted-average shares used to compute Non-GAAP net income (loss) per share attributable to common stockholders, basic  207,235,954   202,526,844   206,389,565   201,338,550 
Weighted-average shares used to compute Non-GAAP net income (loss) per share attributable to common stockholders, diluted  209,015,661   202,526,844   209,721,858   201,338,550 
             
GAAP Net income (loss) per share attributable to common stockholders, basic $0.02  $(0.04) $0.02  $(0.21)
GAAP Net income (loss) per share attributable to common stockholders, diluted $0.02  $(0.04) $0.02  $(0.21)
             
Non-GAAP basic net income (loss) per share attributable to common stockholders, basic $0.08  $0.03  $0.18  $0.01 
Non-GAAP basic net income (loss) per share attributable to common stockholders, diluted $0.07  $0.03  $0.18  $0.01 
             
GAAP income (loss) per common share, basic and diluted $0.02  $(0.04) $0.02  $(0.21)
Amortization of acquired intangible assets  0.02   0.02   0.05   0.05 
Impairment and write-off of intangible assets  -   -   -   - 
Stock-based compensation expense  0.06   0.06   0.17   0.15 
Transaction and acquisition-related costs  0.01   -   0.01   - 
Non-recurring items not indicative of ongoing operations (1)  -   -   -   0.02 
Provision for income taxes  (0.02)  (0.01)  (0.06)  - 
Adjustment to fully diluted earnings per share  (0.02)  -   (0.01)  - 
Non-GAAP diluted income (loss) per common share $0.07  $0.03  $0.18  $0.01 
             


AvidXchange Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Measures (Continued)
 
  Three Months Ended September 30,  Nine Months Ended September 30, 
Reconciliation of Net Income (Loss) to Adjusted EBITDA 2024  2023  2024  2023 
(in thousands)            
Net income (loss) $4,047  $(8,091) $3,474  $(42,852)
Depreciation and amortization  9,092   9,051   27,607   26,515 
Impairment and write-off of intangible assets  -   -   162   - 
Interest income  (5,837)  (5,100)  (18,378)  (14,820)
Interest expense  2,614   3,428   9,274   10,106 
Provision for income taxes  431   134   675   339 
Stock-based compensation expense  11,850   11,229   35,128   31,181 
Transaction and acquisition-related costs(1)  1,081   -   1,081   (7)
Non-recurring items not indicative of ongoing operations (2)  21   773   (609)  4,408 
Adjusted EBITDA $23,299  $11,424  $58,414  $14,870 


(1) For the three and nine months ended September 30, 2024, this amount is comprised of debt issuance costs written-off related to the repayment of the Company's term loan.
(2) For the nine months ended September 30, 2024, this amount includes $1,157 of severance costs and a net benefit of $1,808 of response costs incurred in connection with the cybersecurity incident. For the three and nine months ended September 30, 2023, this amount was primarily comprised of response costs, including professional services and legal fees, incurred in connection with the cybersecurity incident that was detected in April 2023, net of insurance recoveries.
(3) Non-GAAP tax expense is based on the Company's blended tax rate of 24.9% in periods the Company has Non-GAAP income before tax. In periods the Company is in a non-GAAP loss position, tax expense is based on GAAP tax expense.

FAQ

What was AvidXchange (AVDX) revenue growth in Q3 2024?

AvidXchange reported revenue growth of 14.3% year-over-year, reaching $112.8 million in Q3 2024.

How much was AVDX's payment volume in Q3 2024?

AvidXchange processed $21.5 billion in payment volume during Q3 2024, representing a 9.4% increase from Q3 2023.

What is AvidXchange's revised 2024 revenue guidance?

AvidXchange revised its 2024 revenue guidance to $437.0-$439.0 million, with adjusted EBITDA guidance raised to $78.0-$79.0 million.

How many transactions did AVDX process in Q3 2024?

AvidXchange processed 20.2 million transactions in Q3 2024, a 5.2% increase from 19.2 million in Q3 2023.

AvidXchange Holdings, Inc.

NASDAQ:AVDX

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2.07B
207.85M
15.18%
82.15%
2.52%
Software - Infrastructure
Services-prepackaged Software
Link
United States of America
CHARLOTTE