The Rate of Spending on Technology has more than Tripled in the Past Two Years, AvidXchange Research Shows

Rhea-AI Summary

AvidXchange Holdings, Inc. (Nasdaq: AVDX) released its latest report on Middle Market Spending Trends, revealing a shift towards technology investment. Findings indicate middle market firms are prioritizing digital transformation, with a 22% increase in IT spending over hiring and marketing. Notably, the average tech spend rose 7.4% since 2020. Survey data shows 78% of finance professionals believe recent tech investments will positively impact business continuity. The report suggests that despite economic challenges, middle market companies remain resilient and committed to modernization.

Positive

• Middle market firms increased IT spending by 22%, prioritizing digital transformation over hiring and marketing.
• Average tech spend rose 7.4% since 2020, indicating strong investment in technology.
• 78% of finance professionals feel new technology will positively affect business continuity.

Negative

• None.

Technology Investment is the Key to Solving Larger Business Challenges

CHARLOTTE, N.C., July 14, 2022 (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 released the next report in its Middle Market Spending Trends series based on statistically significant data captured from the transactions processed in Q1 2021 by AvidXchange through its AvidPay Network. Additionally, to garner insights on sentiment around spending, AvidXchange surveyed ~500 middle market finance professionals to understand how they feel about their business and where, and why, they are spending in response to the current economic challenges, especially when it comes to their finance department.

The report shows that, middle market companies are investing in digital transformation, spending more on information technology (IT) and technology (22%) than they are on hiring, marketing and sales and operations. The AvidPay Network data reflects this trend; the average yearly technology spend increase since 2020 has been 7.4 percent, which is more than triple what it was prior to that (2.4 percent from 2017-2020).

Furthermore, the research shows that digital adoption is helping the middle market offset the costs of larger economic challenges by boosting efficiency and streamlining time and labor-intensive processes like routing and approving invoices and issuing payments. Specifically, it is allowing the back-office to do more with less. And finance professionals are feeling good about the commitment to modernization. In fact, 78 percent of survey respondents reported they feel the technology their organizations have adopted in the last two years will have a positive impact on business continuity.  

“Investments in digital transformation and technology are allowing middle market companies to continue to grow and drive their businesses forward, despite the tight labor market,” said Angelic Gibson, Chief Information Officer of AvidXchange. “The pandemic may have accelerated the rate of technology adoption, but the efficiencies it provides are unmatched, so it’s no surprise that nearly three quarters of survey respondents say they plan to invest in more tools within the next three years.”

“Middle market companies are proving their resilience with a positive outlook despite economic challenges plaguing business, including inflation, ongoing supply chain disruptions and a looming recession,” said Dan Drees, Chief Growth Officer of AvidXchange. “Shifts in spending show strategic planning in order to stay ahead of economic uncertainty.”

To learn more and view the report, 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 8,000 businesses and it has made payments to more than 825,000 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,” “project,” “estimate,” “expect,” “future,” “likely,” “may,” “should,” “will” and similar words and phrases indicating future results. The information presented in this press release related to our expectations of future performance, as well as 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.

Contact
Olivia Sorrells
osorrells@avidxchange.com
980-643-7889

FAQ

What does the AvidXchange report say about middle market technology spending in 2022?

The report highlights a 22% increase in technology spending, indicating a greater focus on digital transformation.

What percentage of finance professionals believe in the positive impact of technology investments?

78% of finance professionals surveyed believe that recent technology investments will positively affect business continuity.

How much has the average technology spend increased since 2020 according to AvidXchange?

The average technology spend has increased by 7.4% since 2020.

What challenges are middle market companies facing according to AvidXchange's report?

Middle market companies are proving resilient despite challenges like inflation, supply chain disruptions, and a looming recession.

What was the aim of AvidXchange's survey of finance professionals?

The survey aimed to gather insights on spending sentiment among finance professionals in response to current economic challenges.