Avidxchange Announces Third Quarter 2022 Financial Results

–Third quarter 2022 revenue and adjusted EBITDA results ahead of internal forecast driven by transaction growth, efficiencies and operating expense control

–Comparable (quarter over-quarter) third quarter 2022 revenue growth 26.4% led chiefly by sustained transaction growth and transaction yield

–Comparable revenue growth coupled with gross profit expansion aided by transaction yield & operational efficiency as well as operating expense leverage results in lower net losses

–Raising 2022 business outlook

CHARLOTTE, N.C., Nov. 02, 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 announced financial results for the third quarter ended September 30, 2022.

“As we anniversary our first year as a publicly traded company, we are extremely pleased with the consistent execution of our operational and financial strategies. We continue to leverage our investments in our product roadmap to drive revenue growth while taking continuous action on optimizing our operating costs. With the macro-economic backdrop still volatile, we remain cautiously optimistic as we look to close the year on a strong note. We believe our value proposition of accounts payable and payments automation offers significant benefits to our buyer and supplier customers across all economic cycles. With quantifiable ROI on costs and revenues, it should have strong resonance among customers particularly amid these uncertain times,” said Michael Praeger, CEO & Co-Founder of AvidXchange.

Third Quarter 2022 Financial Highlights:

• Total revenue was $82.4 million, an increase of 26.4% year-over-year, compared with $65.2 million in the third quarter of 2021.
• GAAP net loss was $(25.4) million, compared with a GAAP net loss of $(35.5) million in the third quarter of 2021.
• Non-GAAP net loss was $(11.6) million, compared with a Non-GAAP net loss of $(15.3) million in the third quarter of 2021.
• GAAP gross profit was $47.6 million, or 57.8% of total revenue, compared with $34.3 million, or 52.7% of total revenue in the third quarter of 2021.
• Non-GAAP gross profit was $53.5 million, or 65.0% of total revenue, compared with $39.5 million, or 60.6% of total revenue in the third quarter of 2021.
• Adjusted EBITDA was $(3.7) million compared with $(6.0) million in the third quarter of 2021.

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.”

Third Quarter 2022 Key Business Metrics and Highlights:

• Total transactions processed in the third quarter of 2022 was 18.0 million, an increase of 11.9% from 16.1 million in the third quarter of 2021.
• Total payment volume in the third quarter of 2022 was $18.1 billion, an increase of 29.4% from $14.0 billion in the third quarter of 2021.
• Transaction yield in the third quarter of 2022 was $4.57, an increase of 12.8% from $4.05 in the third quarter of 2021.

Full Year 2022 Financial Outlook

As of November 2, 2022, AvidXchange anticipates its revised Full Year 2022 revenue and adjusted EBITDA to be in the following ranges (in millions):                                                

      (1)   A reconciliation of adjusted EBITDA to GAAP net loss 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 this non-GAAP measure.

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 third quarter 2022 financial results during a teleconference today, November 2, 2022, at 10:00 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 8,000 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 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,”  “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, including guidance for our revenue and adjusted EBITDA for the full year 2022, statements related to our product roadmap and cost optimization efforts, the opportunities for rapid and quantifiable ROI on costs and revenue for our customers, the resilience of our business mode, 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 Metrics

To 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, Adjusted EBITDA, and Non-GAAP Net Loss.

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, and Non-GAAP Net Loss in this press release. We define Non-GAAP Gross Profit 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, 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 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, provision for income taxes and charitable contributions of common stock.

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.

Investor Contact:

Subhaash Kumar[email protected]813.760.2309

AvidXchange Holdings, Inc.Unaudited Consolidated Statements of Operations(in thousands, except share and per share data)

AvidXchange Holdings, Inc.Unaudited Consolidated Balance Sheets(in thousands, except share and per share data)

AvidXchange Holdings, Inc.Unaudited Consolidated Statements of Cash Flows(in thousands)

AvidXchange Holdings, Inc.Unaudited Reconciliation of GAAP to Non-GAAP Measures(in thousands)