AvidXchange Board Approves $100 Million Share Repurchase Plan
AvidXchange Holdings, Inc. (NASDAQ: AVDX), a leading provider of accounts payable (AP) automation software and payment solutions, has made a major announcement by approving a share repurchase program. This initiative allows the company to buy back up to $100 million of its common shares. The approval takes effect immediately, reflecting the Company's strong confidence in its future performance and market standing.
Details of the Share Repurchase Program
The repurchase of shares under this new program may take place through various methods, including open market purchases and privately negotiated transactions. The program will also comply with regulatory requirements, including the stipulations outlined in a Rule 10b5-1 plan. Notably, the execution of this program will be influenced by different market conditions and legal considerations, along with a $50 million limit on spending in any fiscal year, as specified in the Company’s most recent amended credit facility.
Program Duration
This share repurchase program will remain active until either the maximum dollar amount is fully utilized or until a designated time period concludes. However, the Company reserves the right to adjust, pause, or end the program at any time based on its internal judgment.
CEO Statement on Growth and Profitability
Michael Praeger, the Chief Executive Officer and Co-Founder of AvidXchange, highlighted that since the company went public, it has experienced a significant acceleration towards achieving adjusted EBITDA profitability. This progress has led to the reporting of the first profit on a GAAP basis, driven by steady revenue growth and enhanced gross margin expansion.
Confidence in Long-Term Growth
Praeger expressed that the share repurchase serves as a reflection of the management’s confidence in the Company’s long-term growth and cash flow potential. He pointed out the strategic measures for capital allocation that aim to boost capital returns while reducing stock-based compensation dilution. This strategic direction is supported by a solid balance sheet, which has allowed AvidXchange to lower bank debt while also pursuing both organic and inorganic investments for ongoing innovation.
About AvidXchange
AvidXchange is a prominent provider of accounts payable automation software and payment solutions designed specifically for middle market businesses. The platform digitizes and streamlines AP workflows for over 8,000 companies, enabling payments to more than 1,200,000 suppliers in the last five years. AvidXchange is transforming the way businesses handle their accounts payable processes through its software-as-a-service (SaaS) model.
Investor Relations and Further Information
AvidXchange regularly shares important updates and engages with investors through SEC filings, press releases, and public communications. Stakeholders are encouraged to stay updated by reviewing the materials available in the Investor Relations section of AvidXchange’s official website. Users can also sign up for automatic email alerts by enrolling in the designated section for such updates.
Contact Information
For any investor inquiries, please contact:
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.
