AvidXchange Holdings Inc (AVDX) Reports Notable Q3 2023 Financial Results
Revenue increased by 19.7% year-over-year to $98.7 million in Q3 2023.
GAAP net loss improved to $(8.1) million from $(25.4) million in Q3 2022.
Adjusted EBITDA turned positive at $11.4 million, a significant improvement from a $(3.7) million loss in the same period last year.
AvidXchange Holdings Inc (NASDAQ:AVDX) raises full-year 2023 business outlook.
On November 8, 2023, AvidXchange Holdings Inc (NASDAQ:AVDX), a leading provider of accounts payable automation software and payment solutions, released its financial results for the third quarter ended September 30, 2023. The company reported a strong performance with a 19.7% increase in revenue year-over-year, reaching $98.7 million, and a notable improvement in net loss, which decreased to $(8.1) million from $(25.4) million in the third quarter of 2022.
Financial Performance Overview
AvidXchange Holdings Inc (NASDAQ:AVDX) demonstrated robust financial health in the third quarter of 2023, with significant improvements across several key financial metrics. The company's GAAP gross profit rose to $62.3 million, representing 63.2% of total revenue, compared to $47.6 million or 57.8% of revenue in the same quarter of the previous year. Non-GAAP gross profit also saw an increase to $69.1 million, or 70.0% of total revenue, up from $53.5 million or 65.0% of revenue in Q3 2022.
The company's adjusted EBITDA experienced a positive swing to $11.4 million, compared to a loss of $(3.7) million in the third quarter of 2022. This improvement reflects AvidXchange's operational efficiency and ability to manage costs effectively.
Key Business Metrics and Highlights
AvidXchange processed a total of 19.2 million transactions in Q3 2023, marking a 6.4% increase from the 18.0 million transactions in the same period last year. The total payment volume also grew by 8.4% to $19.6 billion. The transaction yield for the quarter was $5.15, up 12.7% from $4.57 in Q3 2022.
CEO Michael Praeger commented on the company's performance, stating:
Our solid third quarter financial results highlight continued strong operational execution across all key levers of the business. On key financial measures, from revenue growth to gross margin to EBITDA, we exceeded significantly in some instances our implied third quarter business outlook."
Updated Full Year 2023 Financial Outlook
Reflecting confidence in its business trajectory, AvidXchange Holdings Inc (NASDAQ:AVDX) has raised its full-year 2023 revenue and adjusted EBITDA guidance. The company now expects revenue to be between $374.5 million and $375.5 million, up from the previous guidance of $368.0 million to $370.0 million. Adjusted EBITDA is anticipated to be in the range of $22.0 million to $23.0 million, a significant increase from the earlier forecast of $7.0 million to $8.0 million.
Balance Sheet and Cash Flow Statement Summary
As of September 30, 2023, AvidXchange Holdings Inc (NASDAQ:AVDX) maintained a strong balance sheet with $339.9 million in cash and cash equivalents. The company's total assets stood at $2.12 billion, with total liabilities amounting to $1.47 billion, resulting in total stockholders' equity of $648.4 million.
The cash flow statement for the nine months ended September 30, 2023, shows a net loss of $(42.9) million, with net cash used in operating activities amounting to $(11.0) million. The company's investing activities resulted in a net cash provided of $226 thousand, while financing activities used $(57.5) million in cash.
AvidXchange's financial results reflect a company on the rise, with a solid balance sheet, improved profitability metrics, and a positive outlook for the remainder of the year. Value investors and potential GuruFocus.com members interested in a growing technology company in the financial software space may find AvidXchange Holdings Inc (NASDAQ:AVDX) an intriguing prospect.
For more detailed information, investors are encouraged to review the full financial statements and accompanying notes, available on the Investor Relations section of AvidXchanges website at https://ir.avidxchange.com/.
Explore the complete 8-K earnings release (here) from AvidXchange Holdings Inc for further details.
This article first appeared on GuruFocus.
