Middle Market Experiences Largest Increase in Spending Quarter over Quarter since 2017, AvidXchange Report Shows
AvidXchange Holdings, Inc. (Nasdaq: AVDX) reported a significant recovery in middle market spending, showing the largest quarterly increase since 2017. This growth is attributed to increased technology expenditures and rebounds in key sectors such as retail and food service amid post-vaccine recovery. However, the Finance & Insurance industry marked its first spending decline of the year, while Construction faced its second consecutive quarter of decreased spending due to pandemic-related challenges. AvidXchange processes around 58 million transactions annually through the AvidPay Network.
- Middle market spending surged, marking the largest quarterly increase since 2017.
- Technology sector spending continues to outpace other industries.
- Retail, Food Service, Manufacturing, and Transportation show positive spending trends.
- The Finance & Insurance industry experienced its first spending decrease this year.
- Construction sector spending declined for the second consecutive quarter.
CHARLOTTE, N.C., Nov. 30, 2021 (GLOBE NEWSWIRE) -- AvidXchange Holdings, Inc. (“AvidXchange”) (Nasdaq: AVDX), a leading provider of accounts payable and payment automation solutions for the middle market, today released the fourth report in its Middle Market Spending Trends series based on data captured from the ~58 million transactions processed over the last 12 months (as of Q2 2021) by AvidXchange through the AvidPay Network.
The latest research shows that the middle market experienced the largest quarterly increase in spending since 2017, indicating recovery across several industries. The surge was powered by continued spending on technology to empower remote workforces, and dramatic turnarounds for retail, food service, and other leading sectors of the U.S. economy following the distribution of vaccines and relaxed mandates across the country.
“It’s important to analyze quarter over quarter growth, not just year over year, to identify micro-trends across different industries that provide insight into where and how businesses are spending,” said Dan Drees, Chief Growth Officer at AvidXchange. “We’re seeing an overall movement of recovery in the middle market as businesses are ramping up revenue-driving projects and experiencing better performance and we believe that will continue into 2022.”
The research also showed that spending on the Technology industry continues to outpace spending in other industries, and Accommodation and Food Services, Manufacturing, Retail Trade, and Transportation & Warehousing all show a positive quarter over quarter trajectory as well. In contrast, the Finance & Insurance industry showed its first decrease in spending since the start of this year, a reversal of what had been a consistent upward trajectory over the past several quarters. And Construction saw a decline in spending for the second consecutive quarter this year due to continued challenges the industry is facing from lasting impacts of the pandemic.
To learn more and view full industry results, read Middle Market Spending Trends.
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 7,000 businesses and it has made payments to more than 700,000 supplier customers of its buyers over the past five years.
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,” “project,” “estimate,” “expect,” “future,” “likely,” “may,” “should,” “will” and similar words and phrases indicating future results. 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 in registration statements and periodic reports we file with the SEC, including our prospectus as amended and filed with the SEC pursuant to Rule 424(b)(4) on October 14, 2021 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.
Contact
Olivia Sorrells
osorrells@avidxchange.com
980-643-7889
FAQ
What recent trends has AvidXchange Holdings (AVDX) reported in middle market spending?
How has the Finance & Insurance industry performed according to AvidXchange's report?
What impact did the pandemic have on the Construction industry as per AvidXchange's findings?
