Core Insights - AvidXchange and IOFM's report highlights the evolving challenges faced by accounts payable (AP) professionals, emphasizing the role of automation and AI in addressing these issues and enhancing career prospects [1][4][11] Workforce Concerns - Nearly half (45%) of AP professionals express concerns about potential layoffs in 2025, a significant increase from 27% in 2024 [2] - Only 50% of AP professionals report having access to growth or skills development opportunities, and just 40% believe they have a clear path for career advancement [3] - In 2024, 61% of AP professionals left more than a quarter of their paid time off (PTO) unused, with 27% citing job security concerns [3] Economic Sentiment - AvidXchange's 2025 Economic Sentiment Survey indicates that 86% of finance professionals are worried about the economy, with nearly half expecting a recession within the next 12 months [4] - AP professionals are focusing on skill building and automation to enhance productivity and secure their futures amid economic uncertainty [4][5] Automation and AI Impact - Automation is seen as a key driver for improving job performance and long-term career prospects, allowing AP teams to focus on strategic, higher-value work [6] - 59% of AP professionals in automated environments report being "extremely satisfied" in their roles, compared to only 2% in fully manual environments [7] - 74% believe access to tools and technology supports their career growth, while 69% think automation will have an immediate positive impact on their current roles [9] Job Security and Flexibility - 53% of AP professionals are taking on stretch assignments to enhance job security, a rise from 34% the previous year [8] - 40% state that flexible work hours are essential, with automation enabling this flexibility by reducing reliance on paper-based processes [10] Resilience Strategy - AP automation is not just about efficiency; it is a strategy for workforce stability, helping professionals maintain productivity and morale during economic challenges [11] - Organizations adopting automation and AI are likely to cultivate a more empowered and future-ready workforce [11] Case Study - An AvidXchange customer noted that automation significantly reduced the need for manual data entry, allowing the AP team to focus on higher-value tasks and facilitating growth within the accounts payable function [12]

Core Insights - AvidXchange, Inc. released its 2025 Economic Sentiment Survey, indicating a significant shift in finance professionals' preparedness for economic uncertainty compared to 2020 [1][2] Economic Sentiment - 67% of finance professionals feel more prepared to handle economic uncertainty than in 2020, attributing this to increased technology investment and experience [2] - 86% express concern about the current economy, with nearly half cutting discretionary spending [3] - 50% are "very concerned" about a potential recession, with 22% expecting it within the next 12 months [3] Technology Investment - 70% of finance professionals consider technology critical for responding to changing conditions, with 72% noting that tools implemented during the pandemic are yielding benefits [4] - 49% are more likely to invest in AI and automation due to ongoing economic uncertainty, focusing on smarter, faster decision-making [4][8] Strategic Role of Finance - Nearly 30% of finance teams are engaging in scenario planning and financial modeling, while 27% are strengthening supplier relationships, indicating a shift towards strategic leadership [5] - Finance professionals are transitioning from reactive roles to proactive ones, influencing business direction and resilience [6] Economic Pressures - 83% report supplier cost increases due to inflation, and 52% indicate that tariffs have led to moderate forecast adjustments [7] - Nearly one-third of organizations are sharing increased costs with customers [7] Future Outlook - Despite 52% expecting continued volatility into 2026, the overall sentiment among finance professionals is one of momentum and proactive engagement [6]

Financial Performance - AvidXchange Holdings, Inc. reported total revenue of $107.9 million for Q1 2025, representing a year-over-year increase of 2.2% from $105.6 million in Q1 2024 [6][18] - The company experienced a GAAP net loss of $(7.3) million in Q1 2025, compared to a net loss of $(1.0) million in Q1 2024 [6][18] - Non-GAAP net income for Q1 2025 was $10.4 million, down from $11.3 million in the same period last year [6][18] - Adjusted EBITDA for Q1 2025 was $17.5 million, slightly lower than $17.7 million in Q1 2024 [6][18] Key Business Metrics - Total transactions processed in Q1 2025 were 19.7 million, an increase of 1.9% from 19.3 million in Q1 2024 [7] - Total payment volume in Q1 2025 reached $20.6 billion, up 3.7% from $19.9 billion in Q1 2024 [7] - The transaction yield for Q1 2025 was $5.48, a slight increase of 0.2% from $5.47 in Q1 2024 [7] Financial Outlook - AvidXchange has suspended its previously issued financial outlook for fiscal 2025 due to its pending acquisition by TPG in partnership with Corpay [4] - The company will not hold a teleconference to discuss its Q1 2025 financial results, providing supplemental information on its Investor Relations website instead [5] Balance Sheet and Cash Flow - As of March 31, 2025, AvidXchange had cash and marketable securities totaling $389.3 million [6] - The company reported net cash provided by operating activities of $7.4 million for Q1 2025, a significant improvement from a use of $(6.4) million in the prior year [6][24]

Core Viewpoint - AvidXchange Holdings, Inc. is set to be acquired by TPG and Corpay for $10.00 per share, valuing the company at $2.2 billion, which represents a significant premium over its recent stock prices [1][2]. Acquisition Details - The acquisition price of $10.00 per share reflects a 22% premium over AvidXchange's closing price of $8.20 on May 6, 2025, a 16% premium over the 90-day volume weighted average price, and a 45% premium over the closing price of $6.89 on March 12, 2025 [2]. - Upon completion, AvidXchange will transition to a private company, allowing for greater flexibility in investing in growth and enhancing integrated payment solutions [2]. Company Background - AvidXchange is a leading provider of accounts payable automation software and payment solutions, serving over 8,500 middle market businesses and facilitating payments to more than 1,350,000 suppliers in the past five years [9]. - The company has established itself as a leader in AP automation and payment software, with a differentiated platform aimed at growth [3]. Strategic Insights - TPG and Corpay view AvidXchange as a leader in AP automation, with significant opportunities to enhance its solutions and improve efficiency in payment processes [3]. - The partnership aims to leverage TPG's technology expertise and Corpay's corporate payments capabilities to accelerate AvidXchange's growth [3]. Transaction Approval and Timeline - The transaction has been unanimously approved by AvidXchange's Board of Directors, and certain senior management members will rollover a significant portion of their equity [4]. - The deal is subject to customary closing conditions, including stockholder approval and regulatory approvals, and is expected to close in the fourth quarter of 2025 [5]. Financial Advisory - Financial Technology Partners and Barclays are acting as financial advisors to AvidXchange, while TPG is advised by J.P. Morgan Securities LLC, Moelis & Company, and RBC Capital Markets [7][8].

Company Overview - AvidXchange Holdings, Inc. 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 offers a software-as-a-service-based, end-to-end platform that digitizes and automates AP workflows for over 8,500 businesses [3] - AvidXchange has facilitated payments to more than 1,350,000 supplier customers over the past five years [3] Financial Results Announcement - AvidXchange will release its financial results for the first quarter of 2025, which ended on March 31, 2025, on May 7, 2025 [1] - A conference call is scheduled for 10:00 AM ET on the same day to discuss the financial results [1][2] - The call will be available for live broadcast via webcast and a recorded replay will be accessible on the AvidXchange Investor Relations website after the call [2]