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AvidXchange Q1 2025 Earnings Report
AvidXchange reported its first-quarter 2025 financial results, showing an increase in total revenue and gross profit, but a higher net loss compared to the previous year.
Key Takeaways
AvidXchange reported a total revenue of $107.9 million for the first quarter of 2025, a 2.2% increase year-over-year. Despite this revenue growth, the company's GAAP net loss widened to $(7.3) million from $(1.0) million in the prior year. However, non-GAAP net income was $10.4 million, and adjusted EBITDA was $17.5 million.
Total revenue increased by 2.2% year-over-year to $107.9 million in Q1 2025.
GAAP net loss widened to $(7.3) million in Q1 2025, compared to $(1.0) million in Q1 2024.
GAAP gross profit expanded to $71.0 million, or 65.8% of total revenue, in Q1 2025.
Total transactions processed increased by 1.9% to 19.7 million, and total payment volume grew by 3.7% to $20.6 billion.
Forward Guidance
AvidXchange has suspended its previously issued financial outlook for fiscal year 2025 due to its pending acquisition by TPG in partnership with Corpay.
Positive Outlook
- The company sustains a strong balance sheet with cash and marketable securities of $389.3 million.
- GAAP gross margin expansion continues on lower unit cost.
- Net cash provided by operating activities swung to $7.4 million from a use of ($6.4) million in the prior year period.
- The pending acquisition by TPG and Corpay could provide strategic benefits and resources.
- Continued growth in total transactions processed and total payment volume indicates ongoing business activity.
Challenges Ahead
- The financial outlook for 2025 has been suspended, indicating uncertainty.
- Q1 2025 revenue growth was impacted by lower transaction volume due to macro weakness.
- Higher comparable float and political contributions in Q1 2024 also impacted Q1 2025 revenue growth.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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