Financial Data and Key Metrics Changes - Total revenue for Q2 2023 was $91.2 million, representing a year-over-year increase of 19.1% compared to Q2 2022 [25][9] - Non-GAAP gross margins expanded to 68.3%, up 460 basis points year-over-year [27][10] - Adjusted EBITDA was approximately $3 million, a significant improvement from a loss of $4.7 million in Q2 2022 [30][10] - GAAP net loss was $18.8 million, an improvement from a loss of $25.7 million in the prior year [30][10] Business Line Data and Key Metrics Changes - Software revenues increased by 12.6% to $27.2 million, accounting for 29.9% of total revenue [26][10] - Payment revenue rose by 22.6% to $63.2 million, making up 69.4% of total revenue [26][10] - Total transaction yield increased to $4.84, up 9.5% from $4.42 in Q2 2022 [25][10] Market Data and Key Metrics Changes - The company reported a 70% year-over-year growth in top-of-funnel buyer opportunities across various verticals, including construction, financial services, and healthcare [12][10] - The commercial office sub-sector of the real estate vertical showed signs of softness, while multi-family and student housing remained strong [12][10] Company Strategy and Development Direction - The company aims to achieve a medium-term Rule of 40 objective of 20% organic revenue growth and 20% adjusted EBITDA by 2025 [5][10] - A focus on enhancing e-payment penetration and reducing reliance on paper checks is a key strategy, with over 50% of suppliers still using checks [39][10] - New product innovations, such as the Invoice Accelerator 2.0 and lien waiver management solutions, are expected to drive future growth [20][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the volatile macroeconomic backdrop but expressed confidence in the long-term growth opportunities within the middle market [23][10] - The company raised its full-year 2023 revenue guidance to a range of $368 million to $370 million, reflecting strong performance and interest revenue growth [32][10] Other Important Information - The company ended the quarter with a strong cash position of $438.3 million against total debt of $82.9 million [31][10] - Recent promotions within the company include John Feldman as Chief Operating Officer and Doug Anderson as Chief Product Officer, aimed at strengthening operational capabilities [21][22][10] Q&A Session Summary Question: Can you elaborate on the financial monetization flywheel? - Management discussed the importance of attracting and retaining buyer customers and expanding transaction yield, emphasizing multiple monetization events per transaction [34][36][38] Question: What contributed to the strong incremental margins? - Management highlighted gross margin expansion and operational efficiency as key contributors, with a focus on minimizing growth in operating expenses [41][42] Question: How are macro impacts affecting revenue expectations? - Management noted ongoing caution in spending and moderate invoice sizes, with expectations for current conditions to persist through the year [45][46] Question: What is the long-term outlook for the real estate vertical? - Management clarified that while commercial office markets face challenges, other segments like multi-family and student housing are performing well, indicating potential for future growth [50][52] Question: Can you differentiate between float revenue and core revenue guidance? - Management indicated that the revenue guidance increase was driven by a combination of continued moderation in spending and a slight uptick in float revenue [54][55] Question: How does the company view competition in the market? - Management noted that new entrants typically focus on small businesses, while the company remains focused on the middle market with specialized solutions [58][60] Question: What are the expectations for gross margins in the second half? - Management expects continued gross margin expansion but cautioned that it may not be linear, projecting a full-year expansion in the range of 200 basis points [63][64] Question: What is the path to achieving the 20% EBITDA target? - Management outlined several components, including multiple monetization events, conversion of paper checks to e-payments, and strong product innovation as key drivers [66][68]

Road Show Presentation Disclaimer Thispresentationmaycontain“forward-lookingstatements”withinthemeaningoftheU.S.PrivateSecuritiesLitigationReformActof1995.Inthiscontext,forward-lookingstatementsgenerallyrelatetofutureeventsorourfuture financialoroperatingperformanceandoftencontainwordssuchas:“anticipate,”“intend,”“plan,”“goal,”“seek,”“believe,”“project,”“estimate,”“expect,”“future,”“likely,”“may,”“should,”“will”andsimilarwordsandphrases indicatingfutureresults.Theinformationpresentedinthispresentationrelate ...

EARNINGS PRESENTATION FIRST QUARTER 2023 FORWARD-LOOKING STATEMENTS This presentation 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 relatetofutureeventsorourfuturefinancialoroperatingperformanceandoftencontainwordssuchas:“anticipate,”“intend,”“plan,”“goal,”“seek,”“believe,”“project,”“estimate,”“expect,”“future,” “likely,” “may,” “should,” “will” and similar words and phrases indi ...

AvidXchange Holdings, Inc. Notes to the Unaudited Consolidated Financial Statements (in thousands, except share and per share data) obligations are comprised of outstanding daily transaction liabilities per state regulatory average daily transaction liability report requirements and other unregulated settlements with payees, which do not constitute a regulatory liability event under reporting requirements. Compensation cost for stock-based awards issued to employees and outside directors, including stock op ...

AvidXchange Holdings, Inc. (NASDAQ:AVDX) Q1 2023 Earnings Conference Call May 3, 2023 10:00 AM ET Company Participants Subhaash Kumar - Head of Investor Relations Mike Praeger - Co-Founder and Chief Executive Officer Joel Wilhite - Chief Financial Officer Conference Call Participants Dave Koning - Robert W. Baird Ramsey El-Assal - Barclays Will Nance - Goldman Sachs Josh Beck - KeyBanc Capital Markets Craig Maurer - FT Partners Brian Kean - Deutsche Bank Timothy Fung - J.P. Morgan James Fawcett - Morgan Sta ...

AvidXchange Holdings, Inc. (NASDAQ:AVDX) Q4 2022 Earnings Conference Call March 1, 2023 10:00 AM ET Company Participants Mike Praeger - Co-Founder & Chief Executive Officer Joel Wilhite - Chief Financial Officer Conference Call Participants Dave Koning - Baird Will Nance - Goldman Sachs Ramsey El-Assal - Barclays Andrew Bauch - SMBC Nikko Securities Bryan Keane - Deutsche Bank Josh Beck - KeyBanc James Faucette - Morgan Stanley Timothy Chiodo - Credit Suisse Brent Bracelin - Piper Sandler Darrin Peller - Wo ...

EARNINGS PRESENTATION FOURTH QUARTER 2022 March 1, 2023 FORWARD-LOOKING STATEMENTS This presentation 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," ...

Our future revenue and operating results will be harmed if we are unable to acquire new customers, retain existing customers, expand sales to our existing customers, or deliver new features, functionality and integrations for our platform that achieve market acceptance. To continue to grow our business, it is important that we continue to attract new buyers and suppliers to use our platform. Our success in adding new buyers depends on numerous factors, including our ability to: (1) offer compelling AP autom ...

AvidXchange Holdings, Inc. (NASDAQ:AVDX) Q3 2022 Earnings Conference Call November 2, 2022 10:00 AM ET Company Participants Mike Praeger - Co-Founder and Chief Executive Officer Joel Wilhite - Chief Financial Officer Conference Call Participants Dave Koning - Baird William Nance - Goldman Sachs Darrin Peller - Wolfe Research Josh Beck - KeyBanc Brad Sills - Bank of America Andrew Bauch - SMBC Nikko Securities Ramsey El-Assal - Barclays James Faucette - Morgan Stanley Brent Bracelin - Piper Sandler Timothy C ...