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 results 
 
   -- 2024 GAAP earnings per share swings positive with net cash provided by 
      operating activities up more than eight-fold to $71.9 million 
 
   -- Disciplined capital allocation highlighted by paydown of high-interest 
      bank-debt and repurchase of $50 million out of the $100 million 
      authorized in 2024 
 
   -- Sustained strong balance sheet with cash and marketable securities of 
      $389.3 million with $9.1 million of long-term debt at year end 2024 
 
   -- 2025 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 Information

AvidXchange 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$(TM)$

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 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," "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.

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