AvidXchange Holdings, Inc. (Nasdaq: AVDX), a 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 ended December 31, 2023.
Michael Praeger, CEO & Co-Founder of AvidXchange, said:
“We had a strong close to 2023 in light of on-going macro headwinds. Our fourth quarter 2023 results mark 10 consecutive quarters of financial outperformance relative to internal expectations. I am particularly pleased with the adjusted EBITDA profit inflection excluding float and political contributions, significantly ahead of expectations. Our success across economic cycles, in our view, stems from the rapid and quantifiable ROI realized by our buyers and suppliers through our accounts payable and payments automation value proposition over our proprietary two-sided network.”
Michael added:
“As such, we believe our offering is viewed as a critical lever and we, in turn, are viewed as our customers’ trusted partner in executing their digital transformation strategy centered on the back office. And, we are in the early innings of capitalizing on this opportunity. With the convergence of marque new ERP integration partnerships, new pay product launches and enhancements, continued unit cost reductions and management additions we advanced in 2023, coupled with product and platform innovations planned to be introduced in 2024, we believe we are well positioned to accelerate our success in the new year,”
Fourth Quarter 2023 Financial Highlights:
- Total revenue was $104.1 million, an increase of 20.8% year-over-year, compared with $86.2 million in the fourth quarter of 2022.
- GAAP net loss was $(4.5) million, compared with a GAAP net loss of $(25.0) million in the fourth quarter of 2022.
- Non-GAAP net income was $9.4 million, compared with a Non-GAAP net loss of $(7.5) million in the fourth quarter of 2022.
- GAAP gross profit was $67.3 million, or 64.6% of total revenue, compared with $49.9 million, or 57.9% of revenue in the fourth quarter of 2022.
- Non-GAAP gross profit was $74.4 million, or 71.4% of total revenue, compared with $56.0 million, or 64.9% of revenue in the fourth quarter of 2022.
- Adjusted EBITDA was $15.6 million compared with $(1.3) million in the fourth quarter of 2022.
Fourth Quarter 2023 Key Business Metrics and Highlights:
- Total transactions processed in the fourth quarter of 2023 were 19.1 million, an increase of 6.1% from 18.0 million in the fourth quarter of 2022.
- Total payment volume in the fourth quarter of 2023 was $19.9 billion, an increase of 8.5% from $18.3 billion in the fourth quarter of 2022.
- Transaction yield in the fourth quarter of 2023 was $5.45, an increase of 13.8% from $4.79 in the fourth quarter of 2022.
As covered, AvidXchange claims that 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 8,000 businesses and it has made payments to more than 1,200,000 supplier customers of its buyers over the past five years.”