Financial Data and Key Metrics Changes - Revenue in Q4 2024 was approximately $115 million, up roughly 11% year over year, driven by increased transaction volume and transaction yield growth [16][41] - Non-GAAP gross margin reached almost 75%, up 350 basis points from the previous year, achieving the targeted margin milestone ahead of the 2025 objective [16][48] - Adjusted EBITDA margins for the quarter reached almost 23%, hitting the milestone committed during the Investor Day [18][48] - GAAP net income for Q4 2024 was $4.7 million, compared to a net loss of $4.5 million in Q4 2023, marking the third GAAP net income quarter since going public [51][52] - Non-GAAP diluted earnings per share increased 60% to $0.08 compared to $0.05 in Q4 2023 [53] Business Line Data and Key Metrics Changes - Software revenue was $30.9 million, accounting for 26.8% of total revenue, increasing 6.4% year over year [45] - Payment revenue was $83.4 million, accounting for 72.2% of total revenue, increasing 12.3% year over year [46] - Transaction yield increased to $5.80 per transaction, up 6.4% from $5.45 in Q4 2023 [44][46] Market Data and Key Metrics Changes - The overall top of funnel opportunities were down roughly 2%, with buyer customer logo count growth of over 6% in 2024 [11][12] - Positive growth was observed in three major verticals: real estate, financial services, and media, while declines in the HOA vertical moderated [11] Company Strategy and Development Direction - The company aims to continue building future growth through ERP integrations and vertical market expansion, alongside key product innovations [20][39] - New product offerings include Payment Accelerator 2.0 and AvidPay 2.0, which are expected to enhance revenue growth and margin expansion [25][29] - The company is focused on maximizing e-payment penetration and leveraging AI for operational efficiencies [34][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term growth despite macroeconomic challenges, emphasizing disciplined execution and innovation [38][40] - The 2025 revenue outlook is projected to be between $453 million and $460 million, reflecting a cautious approach due to the unpredictable macroeconomic environment [56][57] Other Important Information - The company repurchased $25 million worth of shares in Q4 2024, totaling $50 million for the year under a $100 million share repurchase program [7][8] - The company ended the year with a strong cash position of $389.3 million and an undrawn credit facility of $150 million [54] Q&A Session Summary Question: Update on gross margin expansion and operating expenses - Management indicated a long-term trajectory towards an 80% gross margin, driven by sourcing strategies, standardization, and AI automation [63][64] Question: Insights on the financial services partner and paper checks initiative - The company plans to leverage existing specialty networks to eliminate paper checks and maximize electronic payments [68][70] Question: Expectations for macro headwinds in 2025 revenue guidance - Management noted that the guidance reflects a cautious outlook, with anticipated low single-digit transaction growth and contributions from new payment methods [76][80] Question: Trends in vertical-specific activity exiting 2024 - Management confirmed that while all verticals experienced subdued activity, they are optimistic about future growth driven by new channel partnerships [104]

Core Viewpoint - AvidXchange Holdings, Inc. reported quarterly earnings of $0.08 per share, exceeding the Zacks Consensus Estimate of $0.06 per share, and showing an increase from $0.05 per share a year ago, indicating a 33.33% earnings surprise [1][2] Financial Performance - The company achieved revenues of $115.44 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.40% and up from $104.06 million year-over-year [2] - Over the last four quarters, AvidXchange has exceeded consensus EPS estimates three times and topped revenue estimates three times as well [2] Stock Performance - AvidXchange shares have declined approximately 11.5% since the beginning of the year, contrasting with the S&P 500's gain of 1.3% [3] - The current Zacks Rank for AvidXchange is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $114.66 million, and for the current fiscal year, it is $0.33 on revenues of $484.82 million [7] - The trend of estimate revisions for AvidXchange is currently mixed, which may change following the recent earnings report [6] Industry Context - The Internet - Software industry, to which AvidXchange belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Performance - Total revenue for Q4 2024 was $115.4 million, representing a year-over-year increase of 10.9% compared to $104.1 million in Q4 2023[6] - GAAP net income for Q4 2024 was $4.7 million, a significant improvement from a GAAP net loss of $(4.5) million in Q4 2023[6] - Revenues for the year ended December 31, 2024, increased to $438,940 million, up 15.3% from $380,720 million in 2023[23] - Net income for the year ended December 31, 2024, was $8,145 million, a significant recovery from a net loss of $47,325 million in 2023[23] - The company reported a basic net income per share of $0.04 for the year ended December 31, 2024, compared to a loss of $0.23 per share in 2023[23] - Non-GAAP net income for Q4 2024 was $17,331,000, significantly higher than $9,373,000 in Q4 2023, representing an 84.5% increase[32] - Non-GAAP basic net income per share for Q4 2024 was $0.08, compared to $0.05 in Q4 2023[32] Profitability Metrics - Non-GAAP gross profit was $86.4 million, or 74.9% of total revenue, compared to $74.4 million, or 71.4% of revenue in Q4 2023[10] - Adjusted EBITDA for Q4 2024 was $26.3 million, up from $15.6 million in Q4 2023[10] - Adjusted EBITDA for the year ended December 31, 2024, was $84,720,000, compared to $30,468,000 in 2023, indicating a substantial growth[34] - GAAP gross margin improved to 68.2% in Q4 2024, compared to 64.6% in Q4 2023[30] Cash Flow and Assets - Cash and marketable securities at year-end 2024 totaled $389.3 million, with long-term debt of $9.1 million[5] - Cash flows from operating activities for the year ended December 31, 2024, were $71,934 million, a substantial increase from $8,451 million in 2023[27] - Cash, cash equivalents, and restricted funds held for customers at the end of 2024 were $1,605,983 million, down from $1,985,630 million at the end of 2023[27] - Total assets as of December 31, 2024, decreased to $2,089,711 million from $2,483,737 million in 2023, representing a decline of 15.9%[25] - Total liabilities as of December 31, 2024, decreased to $1,417,878 million from $1,827,292 million in 2023, a reduction of 22.4%[25] Future Guidance - The company anticipates full-year 2025 revenue to be in the range of $453.0 million to $460.0 million[7] - Adjusted EBITDA guidance for full-year 2025 is projected between $86.0 million and $91.0 million[7] - Non-GAAP diluted EPS for full-year 2025 is expected to be in the range of $0.25 to $0.27[7] Operational Metrics - Total payment volume in Q4 2024 reached $21.9 billion, an increase of 10.0% from $19.9 billion in Q4 2023[10] - Total payment volume for the year 2024 reached $83,842,000,000, a 10.5% increase from $75,922,000,000 in 2023[34] - The number of transactions processed in 2024 was 79,123,540, up from 75,330,634 in 2023[34] Research and Development - Research and development expenses for the year ended December 31, 2024, were $101,110 million, an increase from $97,555 million in 2023[23] Strategic Initiatives - The company plans to continue leveraging AI across its business ecosystem to enhance competitive positioning and operational performance[3] - The company expanded its supplier base to 1,350,000 over the past five years, up from 1,200,000 previously[34]

Core Insights - AvidXchange Holdings, Inc. reported strong financial results for Q4 and full year 2024, with significant improvements in gross and operating margins, reflecting effective execution of its accounts payable automation strategy [2][5][6]. Financial Performance - Total revenue for Q4 2024 was $115.4 million, a 10.9% increase from $104.1 million in Q4 2023 [6]. - GAAP net income for Q4 2024 was $4.7 million, compared to a net loss of $(4.5) million in Q4 2023 [6]. - Non-GAAP net income for Q4 2024 was $17.3 million, up from $9.4 million in Q4 2023 [6]. - Adjusted EBITDA for Q4 2024 was $26.3 million, compared to $15.6 million in Q4 2023 [6]. - The company achieved a non-GAAP gross margin of 74.9% in Q4 2024, up from 71.4% in Q4 2023 [6][29]. Operational Highlights - The total number of transactions processed in Q4 2024 was 19.9 million, a 4.3% increase from 19.1 million in Q4 2023 [6]. - Total payment volume in Q4 2024 reached $21.9 billion, a 10.0% increase from $19.9 billion in Q4 2023 [6]. - The transaction yield in Q4 2024 was $5.80, reflecting a 6.4% increase from $5.45 in Q4 2023 [6]. Strategic Outlook - For FY 2025, AvidXchange anticipates revenue between $453.0 million and $460.0 million, with adjusted EBITDA projected between $86.0 million and $91.0 million [7]. - The company expects continued margin expansion in 2025 despite anticipated macroeconomic headwinds [2][5].

Group 1 - Analysts project AvidXchange Holdings, Inc. (AVDX) will announce quarterly earnings of $0.06 per share, a 20% increase year over year [1] - Revenues are expected to reach $114.98 million, reflecting a 10.5% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating a reassessment of projections by covering analysts [1] Group 2 - Analysts estimate 'Revenues- Payment' at $82.63 million, representing an 11.3% year-over-year change [4] - 'Revenues- Software' is projected to be $31.35 million, indicating a 7.9% increase from the prior-year quarter [4] - 'Transaction Yield' is expected to reach $5.71, up from $5.45 a year ago [4] Group 3 - The average prediction for 'Transactions Processed' is 20.15 million, compared to 19.1 million a year ago [5] - 'Total Payment Volume' is anticipated to be $21.95 billion, an increase from $19.90 billion in the previous year [5] Group 4 - AvidXchange shares have shown a return of -8.9% over the past month, contrasting with the Zacks S&P 500 composite's +2.2% change [6] - AVDX holds a Zacks Rank 3 (Hold), suggesting it is expected to mirror overall market performance in the near future [6]

Group 1 - AvidXchange Holdings, Inc. (AVDX) stock closed at $10.81, reflecting a +1.69% change, outperforming the S&P 500's gain of 0.39% [1] - The stock has increased by 5.04% over the past month, surpassing the Computer and Technology sector's gain of 0.04% and the S&P 500's gain of 1.7% [1] Group 2 - AvidXchange Holdings, Inc. is set to announce its earnings on February 26, 2025, with projected earnings per share (EPS) of $0.06, indicating a 20% increase year-over-year [2] - Revenue is expected to reach $114.98 million, representing a 10.49% increase from the same quarter last year [2] Group 3 - Recent modifications to analyst estimates for AvidXchange Holdings, Inc. reflect changing short-term business dynamics, with positive revisions indicating optimism about the company's outlook [3] - The Zacks Rank system, which incorporates estimate changes, provides an actionable rating system for investors [4] Group 4 - AvidXchange Holdings, Inc. currently holds a Zacks Rank of 3 (Hold), with no changes in the Zacks Consensus EPS estimate over the past month [5] - The company has a Forward P/E ratio of 32.46, which is a premium compared to the industry average of 31.7 [6] Group 5 - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries [6][7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1 - AvidXchange Holdings, Inc. (AVDX) closed at $10.66, reflecting a -0.93% change from the previous day, underperforming the S&P 500's gain of 0.53% [1] - The stock has increased by 4.06% over the past month, outperforming the Computer and Technology sector's decline of 0.75% and the S&P 500's gain of 1.24% [1] Group 2 - The upcoming earnings report for AvidXchange is scheduled for February 26, 2025, with projected EPS of $0.06, indicating a 20% increase year-over-year [2] - Revenue is estimated to be $114.98 million, reflecting a 10.49% increase compared to the same quarter of the previous year [2] Group 3 - Recent modifications to analyst estimates for AvidXchange are crucial as they reflect short-term business trends, with positive revisions indicating optimism about the company's outlook [3] - The Zacks Rank system, which incorporates estimate changes, provides actionable ratings, with AvidXchange currently holding a Zacks Rank of 3 (Hold) [4][5] Group 4 - AvidXchange is currently traded at a Forward P/E ratio of 32.85, which is higher than the industry average Forward P/E of 30.73 [6] - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 47, placing it in the top 19% of over 250 industries [6]

Company Performance - AvidXchange Holdings, Inc. closed at $10.71, with a daily increase of +0.47%, underperforming the S&P 500's gain of 0.92% [1] - Over the past month, the company's shares have appreciated by 4.31%, outperforming the Computer and Technology sector's decline of 2.99% and the S&P 500's increase of 0.81% [1] Upcoming Earnings Report - The company is set to release its earnings report on February 26, 2025, with projected earnings per share (EPS) of $0.06, reflecting a 20% increase year-over-year [2] - Revenue is estimated to be $114.98 million, indicating a 10.49% increase compared to the same quarter last year [2] Analyst Estimates and Valuation - Recent changes to analyst estimates for AvidXchange Holdings, Inc. are being monitored, as positive revisions indicate optimism regarding the company's business and profitability [3] - The Zacks Rank system, which assesses estimate changes, currently ranks AvidXchange Holdings, Inc. at 3 (Hold) [5] - The company's Forward P/E ratio is 32.55, which is a premium compared to its industry's Forward P/E of 31.2 [6] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 44, placing it in the top 18% of over 250 industries [6] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - AvidXchange Holdings, Inc. will release its fourth quarter 2024 financial results on February 26, 2025, and will host a conference call to discuss these results [1]. Company Overview - AvidXchange is a leading provider of accounts payable (AP) automation software and payment solutions specifically designed for middle market businesses and their suppliers [3]. - The company's software-as-a-service platform automates AP workflows for over 8,000 businesses and has facilitated payments to more than 1,200,000 supplier customers in the past five years [3].

Group 1 - AvidXchange Holdings, Inc. (AVDX) closed at $10.25, reflecting a +0.84% change from the previous day, outperforming the S&P 500's loss of 0.21% [1] - The company's shares have decreased by 4.51% over the last month, underperforming compared to the Computer and Technology sector's loss of 2.15% and the S&P 500's loss of 1.56% [1] Group 2 - AvidXchange is expected to report an EPS of $0.06, representing a 20% increase year-over-year, with projected revenue of $114.98 million, a 10.49% rise from the same quarter last year [2] - Recent analyst estimate revisions indicate a positive outlook for AvidXchange's business operations and profit generation capabilities [3] Group 3 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows AvidXchange currently holds a Zacks Rank of 3 (Hold) [5] - AvidXchange's Forward P/E ratio is 31.02, which is higher than the industry average Forward P/E of 28.24, indicating a premium valuation [6] Group 4 - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 33, placing it in the top 14% of over 250 industries [6][7]