AvidXchange’s Board Authorizes First Ever Share Repurchase Plan of up to $100 Million
AvidXchange Holdings, Inc. (Nasdaq: AVDX) has announced its first-ever share repurchase program, authorized by its board for up to $100 million of common shares. The program, effective immediately, allows repurchases in open market, private transactions, or through a Rule 10b5-1 plan. It's capped at $50 million per fiscal year and will end on December 31, 2025, or when the maximum amount is spent.
CEO Michael Praeger stated this move reflects confidence in the company's long-term growth, profitability, and cash flow prospects. It also demonstrates a disciplined capital allocation strategy aimed at driving returns and offsetting stock-based compensation dilution. The decision follows AvidXchange's acceleration towards adjusted EBITDA profitability and its first GAAP profit, driven by revenue growth and margin expansion.
AvidXchange Holdings, Inc. (Nasdaq: AVDX) ha annunciato il suo primo programma di riacquisto azionario, autorizzato dal suo consiglio per un massimo di 100 milioni di dollari di azioni ordinarie. Il programma, efficace immediatamente, consente riacquisti nel mercato aperto, in transazioni private o tramite un piano Rule 10b5-1. È limitato a 50 milioni di dollari per anno fiscale e terminerà il 31 dicembre 2025, o quando l'importo massimo sarà speso.
Il CEO Michael Praeger ha dichiarato che questa mossa riflette la fiducia nella crescita a lungo termine dell'azienda, nella redditività e nelle prospettive di flusso di cassa. Dimostra anche una strategia di allocazione del capitale disciplinata, mirata a generare rendimenti e compensare la diluizione derivante dalla compensazione azionaria. La decisione segue l'accelerazione di AvidXchange verso la redditività dell'EBITDA rettificato e il suo primo profitto GAAP, sostenuto dalla crescita dei ricavi e dall'espansione dei margini.
AvidXchange Holdings, Inc. (Nasdaq: AVDX) ha anunciado su primer programa de recompra de acciones, autorizado por su junta para hasta 100 millones de dólares en acciones ordinarias. El programa, que entra en vigor de inmediato, permite recompra en el mercado abierto, transacciones privadas o a través de un plan de Regla 10b5-1. Está limitado a 50 millones de dólares por año fiscal y finalizará el 31 de diciembre de 2025, o cuando se gaste el monto máximo.
El CEO Michael Praeger dijo que este movimiento refleja la confianza en el crecimiento a largo plazo de la empresa, su rentabilidad y las perspectivas de flujo de efectivo. También demuestra una estrategia disciplinada de asignación de capital destinada a impulsar rendimientos y compensar la dilución de la compensación basada en acciones. La decisión sigue la aceleración de AvidXchange hacia la rentabilidad ajustada del EBITDA y su primer beneficio GAAP, impulsada por el crecimiento de los ingresos y la expansión de márgenes.
AvidXchange Holdings, Inc. (Nasdaq: AVDX)는 최대 1억 달러의 보통주 매입 프로그램을 발표했습니다. 이 프로그램은 즉시 시행되며, 공개시장, 사적인 거래 또는 Rule 10b5-1 계획을 통해 매입할 수 있도록 허용됩니다. 연간 최대 5천만 달러로 제한되며, 2025년 12월 31일에 종료되거나 최대 금액이 소진될 때까지 유효합니다.
CEO 마이클 프래거는 이번 조치가 회사의 장기 성장, 수익성 및 현금 흐름 전망에 대한 신뢰를 반영한다고 언급했습니다. 또한, 수익률을 높이고 주식 기반 보상에 대한 희석을 상쇄하기 위한 자본 할당 전략을 보여줍니다. 이 결정은 조정 EBITDA 수익성을 향한 AvidXchange의 가속화와 첫 GAAP 이익, 매출 성장과 마진 확대에 의해 추진되었습니다.
AvidXchange Holdings, Inc. (Nasdaq: AVDX) a annoncé son tout premier programme de rachat d'actions, autorisé par son conseil d'administration pour un montant maximum de 100 millions de dollars d'actions ordinaires. Le programme, qui prend effet immédiatement, permet des rachats sur le marché ouvert, des transactions privées ou par le biais d'un plan de règle 10b5-1. Il est limité à 50 millions de dollars par exercice et se terminera le 31 décembre 2025, ou lorsque le montant maximum sera dépensé.
Le PDG Michael Praeger a déclaré que cette initiative reflète la confiance dans la croissance à long terme de l'entreprise, sa rentabilité et ses perspectives de flux de trésorerie. Elle démontre également une stratégie d'allocation de capital disciplinée visant à générer des rendements et à compenser la dilution due à la rémunération en actions. Cette décision fait suite à l'accélération d'AvidXchange vers la rentabilité de l'EBITDA ajusté et son premier bénéfice GAAP, soutenu par la croissance des revenus et l'expansion des marges.
AvidXchange Holdings, Inc. (Nasdaq: AVDX) hat sein erstes Aktienrückkaufprogramm angekündigt, das vom Vorstand für bis zu 100 Millionen Dollar an Stammaktien genehmigt wurde. Das Programm tritt sofort in Kraft und erlaubt Rückkäufe im offenen Markt, in privaten Transaktionen oder über einen Regel-10b5-1-Plan. Es ist auf 50 Millionen Dollar pro Geschäftsjahr begrenzt und endet am 31. Dezember 2025 oder wenn der Höchstbetrag ausgegeben ist.
CEO Michael Praeger erklärte, dass dieser Schritt Vertrauen in das langfristige Wachstum, die Rentabilität und die Cashflow-Aussichten des Unternehmens widerspiegelt. Er zeigt auch eine disziplinierte Kapitalallokationsstrategie, die darauf abzielt, Renditen zu steigern und die Verwässerung durch aktienbasierte Vergütung auszugleichen. Die Entscheidung folgt der Beschleunigung von AvidXchange hin zur EBITDA-adjustierten Rentabilität und dem ersten GAAP-Gewinn, der durch Umsatzwachstum und Margenausweitung vorangetrieben wird.
- Authorization of $100 million share repurchase program
- Acceleration towards adjusted EBITDA profitability
- First-ever profit on a GAAP basis
- Ongoing revenue growth and gross margin expansion
- Ability to pay down bank debt while sustaining reinvestments
- Potential reduction in cash reserves due to share repurchases
- $50 million cap per fiscal year may limit buyback flexibility
Insights
AvidXchange's $100 million share repurchase program signals strong confidence in the company's financial health and future prospects. This move is particularly noteworthy as it's their first-ever buyback, indicating a significant milestone in their corporate strategy. The program's flexibility, with options for open market and private transactions, allows for strategic execution.
The $50 million annual cap aligns with prudent financial management, balancing shareholder returns with maintaining a robust balance sheet. The company's transition to GAAP profitability and improved adjusted EBITDA underscore a maturing financial position, supporting this capital allocation decision. This buyback could potentially boost earnings per share and signal undervaluation to the market, which may positively impact stock price in the short term.
AvidXchange's share repurchase program reflects a broader trend among tech companies to manage stock-based compensation dilution and return value to shareholders. This move could enhance investor confidence, particularly as the company has demonstrated progress towards profitability. The December 31, 2025 deadline provides a clear timeframe for investors to monitor the program's execution and impact.
The repurchase program, coupled with the company's focus on organic and inorganic growth, suggests a balanced approach to capital allocation. This strategy could appeal to both growth-oriented and value-focused investors. However, the market will likely scrutinize the execution of this program alongside the company's ability to maintain its growth trajectory and profitability gains.
AvidXchange's decision to initiate a share repurchase program while maintaining investments in innovation signals confidence in their current technology stack and market position. As a leading provider of AP automation software, the company's ability to generate sufficient cash flow for this program suggests strong product-market fit and operational efficiency.
The mention of sustaining organic and inorganic reinvestments is crucial. It indicates that AvidXchange is not sacrificing future innovation for short-term financial engineering. This balanced approach is vital in the rapidly evolving fintech sector, where staying ahead technologically is key to maintaining market share and driving growth. The company's focus on middle market businesses positions it in a potentially less saturated segment, which could offer significant growth opportunities if they continue to innovate effectively.
CHARLOTTE, N.C., Aug. 22, 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 that its board has approved a share repurchase program effective immediately with authorization to purchase up to
“Since going public, we have accelerated our path to adjusted EBITDA profitability and delivered our first ever profit on a GAAP basis driven by on-going revenue growth and gross margin expansion. The share repurchase reflects confidence in our long-term growth, profit and cashflow prospects; our disciplined capital allocation strategy to drive capital returns and partially offset stock-based compensation dilution; and our solid balance sheet, which has enabled us to pay down our bank debt while sustaining organic and inorganic reinvestments to fund the future innovation and growth within our core business,” said Michael Praeger, Chief Executive Officer & Co-Founder of AvidXchange.
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 contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These 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. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our share repurchase program and the amount and timing of any future repurchases; our anticipated long-term growth, profitability, and cashflow prospects; our ability to drive capital returns; and the expected strength of our balance sheet. 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 our filings with the Securities and Exchange Commission (“SEC”), including, without limitation, our 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.
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
FAQ
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