AvidXchange Holdings, Inc. (Nasdaq: AVDX), a provider of accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers, announced financial results for the first quarter ended March 31, 2023.
Michael Praeger, CEO & Co-Founder of AvidXchange.
“We are off to a strong start in the new year against what continues to be a volatile macro backdrop. This quarter marks our seventh consecutive quarter that we have outperformed our financial results relative to internal expectations. This quarter was particularly noteworthy as we delivered our first adjusted EBITDA profitable quarter as a public company and substantially ahead of expectations, thereby demonstrating our operational strategies and discipline.”
He added:
“Furthermore, our strong execution around revenue, gross margin expansion and expense leverage during the quarter also leaves us cautiously optimistic about our revised full year business outlook. As our middle-market customers continue to navigate the current challenges of the macro-economic environment, we believe our purpose-built AP automation and payments value proposition provides our customers with a powerful lever for quantifiable cost reduction and cash flow optimization,”
First Quarter 2023 Financial Highlights:
- Total revenue was $86.8 million, an increase of 21.9% year-over-year, compared with $71.2 million in the first quarter of 2022.
- GAAP net loss was $(16.0) million, compared with a GAAP net loss of $(25.1) million in the first quarter of 2022.
- Non-GAAP net loss was $(3.4) million, compared with a Non-GAAP net loss of $(14.6) million in the first quarter of 2022.
- GAAP gross profit was $52.1 million, or 60.0% of total revenue, compared with $39.1 million, or 54.9% of revenue in the first quarter of 2022.
- Non-GAAP gross profit was $58.4 million, or 67.3% of total revenue, compared with $44.4 million, or 62.3% of revenue in the first quarter of 2022.
- Adjusted EBITDA was $0.4 million compared with $(5.6) million in the first quarter of 2022.
First Quarter 2023 Key Business Metrics and Highlights:
- Total transactions processed in the first quarter of 2023 were 18.3 million, an increase of 8.3% from 16.9 million in the first quarter of 2022.
- Total payment volume in the first quarter of 2023 was $17.7 billion, an increase of 16.7% from $15.2 billion in the first quarter of 2022.
- Transaction yield in the first quarter of 2023 was $4.76, an increase of 12.5% from $4.23 in the first quarter of 2022.
As covered, AvidXchange claims it 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 8,800 businesses and it has made payments to more than 965,000 supplier customers of its buyers over the past five years.”
