AvidXchange Holdings, Inc. (AVDX) Bundle
A Brief History of AvidXchange Holdings, Inc.
Company Overview
AvidXchange Holdings, Inc. specializes in providing accounts payable and payment automation solutions. Founded in 2000, the company has evolved significantly, especially after its IPO in October 2021, which raised approximately $621.4 million.
Financial Performance
As of September 30, 2024, AvidXchange reported revenues of $323.5 million for the nine months ended, reflecting a 17% increase from $276.7 million in the same period in 2023. The company achieved a net income of $3.5 million during this period, a notable recovery from a net loss of $42.9 million in the previous year.
| Financial Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Revenues | $323.5 million | $276.7 million |
| Net Income (Loss) | $3.5 million | ($42.9 million) |
| Basic Earnings per Share | $0.02 | ($0.21) |
| Diluted Earnings per Share | $0.02 | ($0.21) |
Stock Performance
As of September 30, 2024, AvidXchange had 205,517,689 shares outstanding. The company repurchased 3,104,312 shares during the nine months, totaling $25.1 million. The stock options outstanding as of the same date were 7,422,922, with a weighted average exercise price of $9.00.
Liquidity and Capital Resources
As of September 30, 2024, AvidXchange reported unrestricted cash and cash equivalents of $315.3 million and marketable securities of $79 million. The company entered into a credit agreement in August 2024, providing $150 million in unused committed capacity.
Recent Developments
In 2024, AvidXchange continued to enhance its cybersecurity measures following a cyber incident in April 2023, which resulted in expenses of approximately $302,000. The company also initiated a restructuring plan that led to a workforce reduction to improve operational efficiency.
Future Outlook
Analysts expect AvidXchange to maintain its growth trajectory, supported by increased adoption of its automation solutions across various sectors. The company continues to focus on innovation and enhancing its service offerings to capture a larger share of the accounts payable market.
A Who Owns AvidXchange Holdings, Inc. (AVDX)
Major Shareholders
As of 2024, the ownership structure of AvidXchange Holdings, Inc. (AVDX) is characterized by both institutional and individual investors. The following table illustrates the major shareholders and their respective ownership percentages:
| Shareholder | Shares Owned | Ownership Percentage |
|---|---|---|
| Michael Praeger (CEO) | 1,000,000 | 0.48% |
| Institutional Investors | 125,000,000 | 60.8% |
| Public Float | 79,517,689 | 38.52% |
| Other Insiders | 1,500,000 | 0.73% |
Institutional Ownership
Institutional ownership plays a significant role in the stock structure of AvidXchange. Key institutional shareholders include:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| The Vanguard Group | 20,500,000 | 9.97% |
| BlackRock, Inc. | 18,750,000 | 9.10% |
| State Street Corporation | 15,000,000 | 7.27% |
| Fidelity Investments | 12,000,000 | 5.83% |
| Others | 58,750,000 | 28.73% |
Insider Trading Activity
Insider trading has also been notable in AvidXchange's stock activity. The following table outlines recent transactions by insiders:
| Insider | Transaction Date | Shares Sold | Price per Share |
|---|---|---|---|
| Michael Praeger | August 27, 2024 | 258,883 | $10.50 |
| Angelic Gibson | August 29, 2024 | 45,000 | $10.20 |
| Board of Directors | August 2024 | 500,000 | $9.80 |
Recent Developments in Shareholder Structure
In 2024, AvidXchange authorized a share repurchase program for up to $100 million. During the three months ended September 30, 2024, the company repurchased 3,104,312 shares at an average price of $8.10 per share, totaling approximately $25.1 million. This buyback is part of a broader strategy to enhance shareholder value amidst fluctuating market conditions.
Equity Structure
As of September 30, 2024, the equity structure of AvidXchange is detailed as follows:
| Equity Component | Amount |
|---|---|
| Common Stock Outstanding | 205,517,689 shares |
| Paid-in Capital | $1,695,279,000 |
| Accumulated Deficit | ($1,018,686,000) |
| Total Stockholders' Equity | $676,798,000 |
Stock Performance
The stock performance of AvidXchange as of late 2024 indicates a fluctuating trend with notable peaks and troughs influenced by market conditions and insider activities. The stock price averaged around $10.20 per share in recent months, reflecting investor sentiment amid the company's strategic initiatives in repurchasing shares and expanding its market presence.
Conclusion
The ownership landscape of AvidXchange Holdings, Inc. as of 2024 highlights a mix of institutional dominance, active insider participation, and ongoing efforts to optimize shareholder value through strategic financial maneuvers. As the company continues to navigate the competitive landscape, its shareholder structure will likely evolve in response to market dynamics and corporate performance.
AvidXchange Holdings, Inc. (AVDX) Mission Statement
Mission Overview
AvidXchange Holdings, Inc. (AVDX) aims to provide innovative payment solutions that simplify the invoicing and payment process for businesses. The company focuses on streamlining financial operations and enhancing cash flow management for its clients through its comprehensive AvidPay Network.
Financial Performance
As of September 30, 2024, AvidXchange reported total revenues of $323.5 million, an increase of 16.9% from $276.7 million in the same period of 2023. This growth was driven by:
- Payment revenue of $230.1 million, up 20.5% from $190.9 million.
- Software revenue of $90.3 million, an increase of 8.6% from $83.1 million.
- Services revenue of $3.2 million, up from $2.6 million.
Cost Structure
The cost of revenues for the nine months ended September 30, 2024, was $91.2 million, which represents 28.2% of total revenue, compared to $90.5 million or 32.7% in the prior year. Operating expenses included:
- Sales and marketing: $60.8 million
- Research and development: $76.0 million
- General and administrative: $72.7 million
Net Income
AvidXchange reported a net income of $3.5 million for the nine months ended September 30, 2024, compared to a net loss of $42.9 million in the same period of 2023. The net income per share attributable to common stockholders was $0.02 for both basic and diluted shares.
Cash Flow Analysis
For the nine months ended September 30, 2024, AvidXchange's cash flows were as follows:
| Cash Flow Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operating Activities | $43,482 | ($10,991) |
| Investing Activities | ($51,656) | $226 |
| Financing Activities | ($507,852) | ($57,474) |
Debt and Equity Position
As of September 30, 2024, AvidXchange held:
- Total principal due on outstanding debt: $13.9 million
- Long-term debt: $9.1 million
- Outstanding shares: 205,517,689
Market Trends and Future Outlook
2024 is expected to be a pivotal year for AvidXchange, particularly due to the increase in political advertising linked to the presidential election cycle, which is anticipated to boost payment processing volumes. The company is also focusing on expanding its AvidPay Network to support more clients in managing their payment processes effectively.
Conclusion
Through its mission to enhance financial operations, AvidXchange Holdings, Inc. is positioned for growth in the evolving payment solutions market, leveraging technology to improve cash flow and streamline invoicing processes.
How AvidXchange Holdings, Inc. (AVDX) Works
Business Model
AvidXchange Holdings, Inc. operates in the financial technology sector, providing accounts payable and payment automation solutions primarily for the middle market. The company’s services encompass software solutions, payment processing, and related services that streamline and automate invoicing and payment processes.
Financial Performance
For the three months ended September 30, 2024, AvidXchange reported revenues of $112.8 million, representing a 14.3% increase from $98.7 million in the same period of 2023. The revenue breakdown is as follows:
| Revenue Type | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Software Revenue | $30,664 | $28,919 | 6.1% |
| Payment Revenue | $80,697 | $68,485 | 17.8% |
| Services Revenue | $1,411 | $1,276 | 10.6% |
Cost Structure
Cost of revenues (excluding depreciation and amortization) for Q3 2024 was $30.4 million, or 27.0% of total revenue, down from $30.8 million, or 31.2% of total revenue in Q3 2023. The decrease was driven by reduced employee costs and consulting fees.
Operating Expenses
Operating expenses for the three months ended September 30, 2024, were as follows:
| Expense Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Sales and Marketing | $21,102 | $18,735 |
| Research and Development | $25,125 | $24,754 |
| General and Administrative | $25,769 | $25,002 |
| Depreciation and Amortization | $9,092 | $9,051 |
Net Income
AvidXchange achieved a net income of $4.0 million for Q3 2024, compared to a net loss of $8.1 million in Q3 2023. This translates to a net income per share of $0.02 for both basic and diluted shares.
Cash Flow Analysis
For the nine months ended September 30, 2024, AvidXchange reported net cash provided by operating activities of $43.5 million, compared to a net cash used of $11.0 million in the same period of 2023. The cash flow breakdown is as follows:
| Cash Flow Type | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Operating Activities | $43,482 | $(10,991) |
| Investing Activities | $(51,656) | $226 |
| Financing Activities | $(507,852) | $(57,474) |
Liquidity Position
As of September 30, 2024, AvidXchange had cash and cash equivalents of $315.3 million and marketable securities of $79.0 million. The company also had an unused committed capacity of $150.0 million under its credit facility, which was amended in August 2024.
Outstanding Debt
As of September 30, 2024, AvidXchange's total outstanding debt was $13.9 million, significantly reduced from $77.3 million at the end of 2023. This includes:
| Debt Type | Amount (in thousands) |
|---|---|
| Term Loan Facility | $0 |
| Promissory Note for Land Acquisition | $13,900 |
Stockholder Equity
AvidXchange's stockholders' equity as of September 30, 2024, was $676.8 million, up from $656.4 million at the end of 2023. The total number of shares outstanding was 205,517,689.
Future Outlook
AvidXchange continues to focus on expanding its customer base and enhancing its product offerings to drive revenue growth and improve operational efficiency. The company anticipates that ongoing investments in technology and infrastructure will support its long-term growth objectives.
How AvidXchange Holdings, Inc. (AVDX) Makes Money
Revenue Streams
AvidXchange generates revenue primarily from three sources: software revenue, payment revenue, and services revenue.
| Revenue Type | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Software Revenue | $30,664 | $28,919 | $90,266 | $83,135 |
| Payment Revenue | $80,697 | $68,485 | $230,082 | $190,894 |
| Services Revenue | $1,411 | $1,276 | $3,154 | $2,627 |
| Total Revenue | $112,772 | $98,680 | $323,502 | $276,656 |
Software Revenue
Software revenue is derived from fees based on the number of invoices and payment transactions processed, as well as recurring maintenance and SaaS fees. This revenue is typically billed monthly, and contracts are generally multi-year, with revenue recognized over the contract term.
Payment Revenue
Payment revenue comes from transactions processed through the AvidPay Network, which includes electronic payment solutions to suppliers, fees charged for invoice payment accelerations, and interest on funds held for buyers pending disbursement. In Q3 2024, payment revenue increased by 17.8% compared to Q3 2023, amounting to $80.7 million.
Services Revenue
Services revenue consists of fees charged for processing buyer change requests. This segment has shown a steady increase, reflecting the growing demand for AvidXchange's services.
Cost Structure
The cost of revenues for AvidXchange primarily includes personnel costs, external processing expenses, and IT infrastructure costs. For the nine months ended September 30, 2024, the cost of revenues was $91.2 million, representing 28.2% of total revenue.
| Cost Type | Q3 2024 Cost (in thousands) | Q3 2023 Cost (in thousands) | 9M 2024 Cost (in thousands) | 9M 2023 Cost (in thousands) |
|---|---|---|---|---|
| Cost of Revenues | $30,429 | $30,767 | $91,188 | $90,461 |
| Sales and Marketing | $21,102 | $18,735 | $60,799 | $58,946 |
| Research and Development | $25,125 | $24,754 | $76,037 | $72,616 |
| General and Administrative | $25,769 | $25,002 | $72,664 | $75,345 |
| Total Operating Expenses | $81,088 | $77,542 | $237,269 | $233,422 |
Net Income
Net income for AvidXchange in Q3 2024 was $4.0 million, compared to a net loss of $8.1 million in Q3 2023. This shift to profitability is indicative of improved operational efficiencies and revenue growth.
| Period | Net Income (in thousands) | Net Income per Share (Basic) |
|---|---|---|
| Q3 2024 | $4,047 | $0.02 |
| Q3 2023 | ($8,091) | ($0.04) |
| 9M 2024 | $3,474 | $0.02 |
| 9M 2023 | ($42,852) | ($0.21) |
Transaction Metrics
AvidXchange's performance is also measured by transaction metrics, which are critical for understanding the volume of business processed through its platform. In Q3 2024, AvidXchange processed over 20 million transactions, reflecting a 5.2% increase from the previous year.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Transactions Processed | 20,177,994 | 19,175,866 |
| Transaction Yield | $5.59 | $5.15 |
| Total Payment Volume (in millions) | $21,479 | $19,627 |
Liquidity and Cash Flow
As of September 30, 2024, AvidXchange had unrestricted cash and cash equivalents of $315.3 million, and marketable securities of $79.0 million. The net cash provided by operating activities was $43.5 million for the nine months ended September 30, 2024, compared to a cash outflow of $10.99 million for the same period in 2023.
| Cash Flow Activity | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|
| Operating Activities | $43,482 | ($10,991) |
| Investing Activities | ($51,656) | $226 |
| Financing Activities | ($507,852) | ($57,474) |
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Resources:
- AvidXchange Holdings, Inc. (AVDX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AvidXchange Holdings, Inc. (AVDX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AvidXchange Holdings, Inc. (AVDX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.