AvidXchange Board Approves $100 Million Share Repurchase Plan
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AvidXchange Board Approves $100 Million Share Repurchase Plan
AvidXchange Holdings, Inc. (NASDAQ: AVDX), a prominent provider of accounts payable (AP) automation software and payment solutions, has taken a significant step by authorizing a share repurchase program. This program allows for the acquisition of up to $100 million worth of the Company’s common shares. The approval is effective immediately, showcasing the Company's confidence in its future performance and market position.
Details of the Share Repurchase Program
The repurchases under this newly established program can occur through various avenues including the open market and privately negotiated transactions. There may also be adherence to regulatory frameworks, including the terms specified under a Rule 10b5-1 plan. Importantly, the implementation of this program will be guided by a variety of market conditions and legal factors, alongside a $50 million cap on expenditure within any fiscal year, as delineated in the Company’s latest amended credit facility.
Program Duration
This share repurchase initiative is set to remain in effect until either the maximum dollar amount has been utilized or until the end of a specified period. Nevertheless, the Company retains the right to modify, suspend, or terminate the program at any given time based on internal discretion.
CEO Statement on Growth and Profitability
Michael Praeger, the Chief Executive Officer and Co-Founder of AvidXchange, emphasized that since the company went public, there has been a notable acceleration towards achieving adjusted EBITDA profitability. The journey has culminated in reporting the first profit on a GAAP basis, attributed to consistent revenue growth and improved gross margin expansion.
Confidence in Long-Term Growth
Praeger articulated that the share repurchase is a testament to the management’s confidence in the Company’s long-term growth and cash flow potential. He noted the strategic capital allocation measures aimed at enhancing capital returns and mitigating stock-based compensation dilution. This strategic focus is underpinned by a robust balance sheet that has enabled AvidXchange to reduce bank debt while simultaneously pursuing organic and inorganic investments for continued innovation.
About AvidXchange
AvidXchange is a leading provider of accounts payable automation software and payment solutions tailored for middle market businesses. The platform digitizes and streamlines AP workflows for more than 8,000 companies, facilitating payments to over 1,200,000 suppliers in the past five years. AvidXchange is revolutionizing how businesses manage their accounts payable processes through its software-as-a-service (SaaS) model.
Investor Relations and Further Information
AvidXchange routinely updates material information and engages with investors through SEC filings, press releases, and public communications. Stakeholders are encouraged to stay informed by reviewing the materials available on the Investor Relations section of AvidXchange’s official website. There is a provision for users to automatically receive email alerts by enrolling at the designated section dedicated to such updates.
Contact Information
For investor inquiries, please reach out to:
Subhaash Kumar
Skumar1@avidxchange.com
813.760.2309
Frequently Asked Questions
What is the significance of AvidXchange's share repurchase plan?
The share repurchase plan signifies AvidXchange's confidence in its financial stability and growth, allowing it to enhance shareholder value.
How much is the authorized amount for the share repurchase?
The authorized amount for the share repurchase program is up to $100 million.
What is the expected impact of the share repurchase on shareholders?
This initiative is expected to provide a capital return to shareholders and partially counter stock-based compensation dilution.
What are the criteria for executing share repurchases?
Repurchases will depend on various market conditions, pricing factors, and adherence to regulatory frameworks.
Who can investors contact for more information?
Investors can contact Subhaash Kumar via email at Skumar1@avidxchange.com or by phone at 813.760.2309.
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