AvidXchange Announces Fourth Quarter & Full Year 2024 Financial Results

Healthy revenue growth coupled with gross and operating margin improvement drives strong year over year fourth quarter and full year 2024 financial results2024 GAAP earnings per share swings positive with net cash provided by operating activities up more than eight-fold to $71.9 millionDisciplined capital allocation highlighted by paydown of high-interest bank-debt and repurchase of $50 million out of the $100 million authorized in 2024Sustained strong balance sheet with cash and marketable securities of $389.3 million with $9.1 million of long-term debt at year end 20242025 business outlook reflects continued progress on margin expansion on a choppy macro backdrop CHARLOTTE, N.C., Feb. 26, 2025 (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 fourth quarter and full year-ended December 31, 2024. “We are very pleased with our financial results, ending 2024 on solid financial footing. 2024 saw non-GAAP gross margin expansion to 73.6% from 69.4% in 2023, while adjusted EBITDA margins grew to 19.3% from 8.0% on the back of strong operating leverage. We remain in a strong financial position due to the strong execution on our transformational value proposition of accounts payable and payments automation aimed at our middle market buyer customers and their supplier customers through our proprietary two-sided network. With AvidXchange’s best-of-breed solution, we aim to unlock efficiency, visibility and control for our buyer customers’ procure-to-pay process, while advancing efficiency, predictability and support for our supplier customers’ order to cash needs. While we expect to see continued margin expansion in 2025, we are also anticipating that continued macro headwinds will impact revenue growth. That said, given the ERP integration and strategic partnerships signed in 2024, as the ones signed in 2023 begin to scale, combined with the ramp of our differentiated products such as Payment Accelerator 2.0 and Pay 2.0 as we seek to continue to leverage AI across our business ecosystem, we believe we are continuing to strengthen our competitive position while laying the building blocks for operating performance momentum as the year progresses, thereby advancing our growth, profit and value creation objectives,” said Michael Praeger, Chief Executive Officer & Co-Founder of AvidXchange. Fourth Quarter 2024 Financial Highlights: Total revenue was $115.4 million, an increase of 10.9% year-over-year, compared with $104.1 million in the fourth quarter of 2023.Revenue included interest income of $12.2 million compared with $13.7 million in the fourth quarter of 2023.GAAP net income was $4.7 million, compared with a GAAP net loss of $(4.5) million in the fourth quarter of 2023.Non-GAAP net income was $17.3 million, compared with $9.4 million in the fourth quarter of 2023.GAAP gross profit was $78.8 million, or 68.2% of total revenue, compared with $67.3 million, or 64.6% of revenue in the fourth quarter of 2023.Non-GAAP gross profit was $86.4 million, or 74.9% of total revenue, compared with $74.4 million, or 71.4% of revenue in the fourth quarter of 2023.Adjusted EBITDA was $26.3 million compared with $15.6 million in the fourth quarter of 2023. 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." Fourth Quarter 2024 Key Business Metrics and Highlights: Total transactions processed in the fourth quarter of 2024 were 19.9 million, an increase of 4.3% from 19.1 million in the fourth quarter of 2023.Total payment volume in the fourth quarter of 2024 was $21.9 billion, an increase of 10.0% from $19.9 billion in the fourth quarter of 2023.Transaction yield in the fourth quarter of 2024 was $5.80, an increase of 6.4% from $5.45 in the fourth quarter of 2023. Full Year 2025 Financial Outlook As of February 26, 2025, AvidXchange anticipates its Full Year 2025 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 2025 Guidance Revenue (1&2)$453.0 - $460.0 Adjusted EBITDA(1,2&3)$86.0 - $91.0 Non-GAAP Diluted EPS(3)$0.25 - $0.27 (1)The current FY 2025 guidance anticipates interest revenue contribution of approximately $44.0 million compared to $49.7 million in 2024.(2)The current FY 2025 guidance does not anticipate political revenues compared to approximately $6.6 million in 2024.(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 InformationAvidXchange will discuss its fourth quarter & full year 2024 financial results during a teleconference today, February 26, 2025, 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 8,500 businesses and it has made payments to more than 1,350,000 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 StatementsThis 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,” “assume,” “intend,” “aim,” “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 or statements made in this press release, or during the earnings call, related to our beliefs and expectations of future performance, including our plans, strategies and financial performance; our 2025 guidance including our expected revenue, Adjusted EBITDA, and Non-GAAP Diluted EPS for the full year 2025; the solid footing and continued strength of our financial position, operating leverage, and execution on behalf of buyers and suppliers; the macroeconomic outlook and potential impacts within verticals in which we have domain expertise; expectations regarding margin expansion, scalability, value, opportunity size, transformational aspect of impacts, penetration, and momentum derived from our integration and strategic partnerships and our new and existing products, services, and systems; our ability to leverage AI within our operations, products, and services; our competitive position including our customers’ perceptions of the value proposition of our AP automation software and payments services; the impact of our operating priorities on our potential growth and margin expansion; our ability to improve the customer experience across our suite of products and services; the timing of revenue impacts; 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 MetricsTo 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, Non-GAAP Gross Margin, 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 & Gross Margin 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 WebsiteInvestors 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 KumarSkumar1@avidxchange.com813.760.2309 AvidXchange Holdings, Inc.Consolidated Statements of Operations(in thousands, except share and per share data) Three Months Ended December 31, Year Ended December 31, 2024 2023 2024 2023 Revenues $115,438 $104,064 $438,940 $380,720 Cost of revenues (exclusive of depreciation and amortization expense) 30,593 30,846 121,781 121,307 Operating expenses Sales and marketing 21,730 18,577 82,529 77,523 Research and development 25,073 24,939 101,110 97,555 General and administrative 26,862 26,579 99,526 101,924 Impairment and write-off intangible assets 124 - 286 - Depreciation and amortization 8,677 9,397 36,284 35,912 Total operating expenses 82,466 79,492 319,735 312,914 Loss from operations 2,379 (6,274) (2,576) (53,501)Other income (expense) Interest income 4,595 6,070 22,973 20,890 Interest expense (2,057) (3,413) (11,331) (13,519)Other income (expense) 2,538 2,657 11,642 7,371 Income (loss) before income taxes 4,917 (3,617) 9,066 (46,130)Income tax expense 246 856 921 1,195 Net income (loss) $4,671 $(4,473) $8,145 $(47,325)Net income (loss) per share attributable to common stockholders: Basic $0.02 $(0.02) $0.04 $(0.23)Diluted $0.02 $(0.02) $0.04 $(0.23)Weighted average number of common shares used to compute net income (loss) per share attributable to common stockholders: Basic 205,223,697 203,517,119 206,096,505 201,887,669 Diluted 207,252,025 203,517,119 209,158,393 201,887,669 AvidXchange Holdings, Inc.Consolidated Balance Sheets(in thousands, except share and per share data) As of December 31, 2024 2023 Assets Current assets Cash and cash equivalents $355,637 $406,974 Restricted funds held for customers 1,250,346 1,578,656 Marketable securities 33,663 44,645 Accounts receivable, net of allowances of $4,279 and $4,231, respectively 51,671 46,689 Supplier advances receivable, net of allowances of $1,644 and $1,333, respectively 14,080 9,744 Prepaid expenses and other current assets 15,317 12,070 Total current assets 1,720,714 2,098,778 Property and equipment, net 97,592 100,985 Operating lease right-of-use assets - 1,628 Deferred customer origination costs, net 28,119 27,663 Goodwill 165,921 165,921 Intangible assets, net 71,068 84,805 Other noncurrent assets and deposits 6,297 3,957 Total assets $2,089,711 $2,483,737 Liabilities and Stockholders' Equity Current liabilities Accounts payable $15,494 $16,777 Accrued expenses 46,849 56,367 Payment service obligations 1,250,346 1,578,656 Deferred revenue 13,967 12,851 Current maturities of lease obligations under finance leases 103 275 Current maturities of lease obligations under operating leases 1,207 1,525 Current maturities of long-term debt 4,800 6,425 Total current liabilities 1,332,766 1,672,876 Long-term liabilities Deferred revenue, less current portion 11,856 14,742 Obligations under finance leases, less current maturities 63,025 62,464 Obligations under operating leases, less current maturities 1,969 3,275 Long-term debt 4,300 69,760 Other long-term liabilities 3,962 4,175 Total liabilities 1,417,878 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 December 31, 2024 and 2023 - - Common stock, $0.001 par value; 1,600,000,000 shares authorized as of December 31, 2024 and 2023; 204,335,860 and 204,084,024 shares issued and outstanding as of December 31, 2024 and 2023, respectively 204 204 Additional paid-in capital 1,685,644 1,678,401 Accumulated deficit (1,014,015) (1,022,160)Total stockholders' equity 671,833 656,445 Total liabilities and stockholders' equity $2,089,711 $2,483,737 AvidXchange Holdings, Inc.Consolidated Statements of Cash Flows(in thousands) Year Ended December 31, 2024 2023 2022 Cash flows from operating activities Net income (loss) $8,145 $(47,325) $(101,284)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Depreciation and amortization expense 36,284 35,912 32,842 Amortization of deferred financing costs 405 431 1,357 Debt extinguishment costs 1,081 - 1,579 Provision for doubtful accounts 3,508 2,957 4,989 Stock-based compensation 47,235 40,856 31,838 Accrued interest 629 728 815 Impairment and write-off on intangible and right-of-use assets 286 - 2,777 Loss on fixed asset disposal 159 - 36 Loss on ROU asset abandonment 897 - - Accretion of investments held to maturity (4,062) (5,326) (2,108)Value of donated common stock 1,868 1,667 1,473 Deferred income taxes 187 721 216 Changes in operating assets and liabilities Accounts receivable (6,067) (8,289) (10,289)Prepaid expenses and other current assets (3,247) 491 (2,324)Other noncurrent assets (1,208) 1,605 (707)Deferred customer origination costs (456) 621 (8)Accounts payable (1,286) 2,862 (3,385)Deferred revenue (1,771) (1,956) (330)Accrued expenses and other liabilities (9,761) (16,981) 14,036 Operating lease liabilities (892) (523) (224)Total adjustments 63,789 55,776 72,583 Net cash provided by (used in) operating activities 71,934 8,451 (28,701)Cash flows from investing activities Purchases of marketable securities held to maturity (120,223) (273,995) (385,022)Proceeds from maturity of marketable securities held to maturity 135,268 345,661 276,144 Purchases of equipment (2,063) (2,254) (3,149)Purchases of real estate - - (767)Purchases of intangible assets (17,532) (16,050) (24,655)Supplier advances, net (6,760) (1,416) (2,899)Net cash (used in) provided by investing activities (11,310) 51,946 (140,348)Cash flows from financing activities Proceeds from the issuance of long-term debt - - 67,367 Repayments of long-term debt (68,175) (1,625) (106,390)Principal payments on land promissory note - (4,800) (4,800)Principal payments on finance leases (298) (521) (844)Proceeds from issuance of common stock 5,685 1,570 1,448 Proceeds from issuance of shares under ESPP 2,563 2,233 1,570 Payment of debt issuance costs (1,529) (743) (1,212)Repurchases of common stock (50,107) - - Payment of acquisition-related liability (100) (100) (344)Payment service obligations (328,310) 294,832 41,478 Net cash (used in) provided by financing activities (440,271) 290,846 (1,727)Net (decrease) increase in cash, cash equivalents, and restricted funds held for customers (379,647) 351,243 (170,776)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 1,805,163 Cash, cash equivalents, and restricted funds held for customers, end of year $1,605,983 $1,985,630 $1,634,387 Year Ended December 31, 2024 2023 2022 Supplementary information of noncash investing and financing activities Property and equipment and intangible asset purchases in accounts payable and accrued expenses $4 $675 $400 Right-of-use assets obtained in exchange for new finance lease obligations - 81 712 Right-of-use assets obtained in exchange for new operating lease obligations - 362 2,831 Common stock issued as contingent consideration - - 344 Interest paid on notes payable 4,360 6,510 12,880 Interest paid on finance leases 5,941 5,857 5,774 Cash paid for income taxes 1,046 304 125 AvidXchange Holdings, Inc.Reconciliation of GAAP to Non-GAAP Measures Three Months Ended December 31, Year Ended December 31, Reconciliation from Revenue to Non-GAAP Gross Profit and Non-GAAP Gross Margin 2024 2023 2024 2023 (in thousands, except percentages) Total revenues $115,438 $104,064 $438,940 $380,720 Expenses: Cost of revenues (exclusive of depreciation and amortization expense) (30,593) (30,846) (121,781) (121,307) Depreciation and amortization expense (6,063) (5,949) (24,138) (22,106)GAAP Gross profit $78,782 $67,269 $293,021 $237,307 Adjustments: Stock-based compensation expense 1,594 1,135 6,104 4,687 Depreciation and amortization expense 6,063 5,949 24,138 22,106 Non-GAAP gross profit $86,439 $74,353 $323,263 $264,100 GAAP Gross margin 68.2% 64.6% 66.8% 62.3%Non-GAAP gross margin 74.9% 71.4% 73.6% 69.4% AvidXchange Holdings, Inc.Reconciliation of GAAP to Non-GAAP Measures (Continued) Three Months Ended December 31, Year Ended December 31, Reconciliation from Net Income (Loss) to Non-GAAP Net Income 2024 2023 2024 2023 (in thousands) Net income (loss) $4,671 $(4,473) $8,145 $(47,325)Exclude: Provision for income taxes 246 856 921 1,195 Income (loss) before taxes 4,917 (3,617) 9,066 (46,130)Amortization of acquired intangible assets 2,910 3,623 13,150 14,493 Impairment and write-off of intangible assets 124 - 286 - Stock-based compensation expense 12,107 9,675 47,235 40,856 Transaction and acquisition-related costs (1) 290 - 1,371 (7)Non-recurring items not indicative of ongoing operations (2) 861 1,133 252 5,541 Charitable contribution of stock 1,868 1,667 1,868 1,667 Total net adjustments 18,160 16,098 64,162 62,550 Non-GAAP income before taxes 23,077 12,481 73,228 16,420 Non-GAAP tax expense (3) $5,746 $3,108 $18,234 $4,089 Non-GAAP net income $17,331 $9,373 $54,994 $12,331 Weighted-average shares used to compute Non-GAAP net income per share attributable to common stockholders, basic 205,223,697 203,517,119 206,096,505 201,887,669 Weighted-average shares used to compute Non-GAAP net income per share attributable to common stockholders, diluted 207,252,025 207,367,561 209,158,393 205,579,485 GAAP Net income (loss) per share attributable to common stockholders, basic $0.02 $(0.02) $0.04 $(0.23)GAAP Net income (loss) per share attributable to common stockholders, diluted $0.02 $(0.02) $0.04 $(0.23) Non-GAAP basic net income per share attributable to common stockholders, basic $0.08 $0.05 $0.27 $0.06 Non-GAAP basic net income per share attributable to common stockholders, diluted $0.08 $0.05 $0.26 $0.06 GAAP income (loss) per common share, basic and diluted $0.02 $(0.02) $0.04 $(0.23)Amortization of acquired intangible assets 0.01 0.02 0.06 0.07 Impairment and write-off of intangible assets - - - - Stock-based compensation expense 0.06 0.05 0.23 0.20 Transaction and acquisition-related costs (1) - - 0.01 - Non-recurring items not indicative of ongoing operations (2) - 0.01 - 0.03 Charitable contribution of stock 0.01 0.01 0.01 0.01 Provision for income taxes (0.03) (0.01) (0.08) (0.01)Adjustment to fully diluted earnings per share 0.01 (0.01) (0.01) (0.01)Non-GAAP diluted income per common share $0.08 $0.05 $0.26 $0.06 AvidXchange Holdings, Inc.Reconciliation of GAAP to Non-GAAP Measures (Continued) Three Months Ended December 31, Year Ended December 31, Reconciliation of Net Income (Loss) to Adjusted EBITDA 2024 2023 2024 2023 (in thousands) Net income (loss) $4,671 $(4,473) $8,145 $(47,325)Depreciation and amortization 8,677 9,397 36,284 35,912 Impairment and write-off intangible assets 124 - 286 - Interest income (4,595) (6,070) (22,973) (20,890)Interest expense 2,057 3,413 11,331 13,519 Provision for income taxes 246 856 921 1,195 Stock-based compensation expense 12,107 9,675 47,235 40,856 Transaction and acquisition-related costs (1) 290 - 1,371 (7)Non-recurring items not indicative of ongoing operations (2) 861 1,133 252 5,541 Charitable contribution of stock 1,868 1,667 1,868 1,667 Adjusted EBITDA $26,306 $15,598 $84,720 $30,468 As of and for the Year Ending December 31, Annual Metrics 2024 2023 2022 Total payment volume (in millions) $83,842 $75,922 $68,202 Transactions 79,123,540 75,330,634 70,168,806 Buyers (4) 8,500 8,000 7,400 Suppliers paid over the past 5 years 1,350,000 1,200,000 965,000 (1) For the three and twelve months ended December 31, 2024, this amount is comprised of debt issuance costs written-off related to the repayment of the Company's term loan.(2) For the year ended December 31, 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 that was detected in April 2023 in addition to $707 of net costs related to lease abandonment and other real estate related amounts. For the three months ended December 31, 2023, this amount is primarily comprised of $1,880 of restructuring costs, $507 of insurance recoveries related to the cybersecurity incident that was detected in April 2023, and $176 benefit from the adjustment of accruals related to costs incurred in connection with the cybersecurity incident. For the year ended December 31, 2023, this amount is primarily comprised of $3,698 of response costs, including professional services and legal fees, incurred in connection with the cybersecurity incident, net of insurance recoveries and $1,880 of restructuring costs.(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.(4) Excludes Create-a-Check customers

AvidXchange Announces Fourth Quarter & Full Year 2024 Financial Results

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