AVDX

AvidXchange Holdings Inc

Finance/Real Estate, TMT


Presented:10/24/2023
Price:$9.15
Cap:$1.85B
Current Price:$8.43
Cap:$1.75B

Presented

Date10/24/2023
Price$9.15
Market Cap$1.85B
Ent Value$1.80B
P/E RatioN/A
Book Value$3.19
Div Yield0%
Shares O/S202.11M
Ave Daily Vol1,831,993
Short Int4.51%

Current

Price$8.43
Market Cap$1.75B
AvidXchange Holdings, Inc. engages in the provision of accounts payable (AP) automation software and payment solutions. Its cloud-based, software and payment platform digitizes and automates the AP workflows for middle market businesses and their suppliers. The firm provides solutions and services throughout North America spanning multiple industries including real estate, homeowners associations, construction, financial services, healthcare facilities, social services, education, and media. Its business roots back to the year 2000, when AvidXchange, Inc. was founded. The company was formed on January 27, 2021 as a holding company and is headquartered in Charlotte, NC.

Publicly traded companies mentioned herein: AvidXchange Holdings Inc (AVDX), Oracle Corporation (ORCL), Microsoft Corporation (MSFT), Sage Group PLC (LON: SGE) 

Highlights

The presenter is long shares of AvidXchange Holdings Inc (AVDX), a middle-market two-sided payment exchange that should benefit from its bottoms-up vs horizontal approach to the industry. The company continues to expand into new verticals and is sticky given its vertical focus and software integration with customers. With the majority of businesses still using checks, the presenter sees significant growth as customers become comfortable with online payments. Given the steady total payment volumes (TPV) growth and improving margins, he sees the company becoming cash flow positive and then adj. EBITDA positive, which should help the valuation move from ~3x 2025 EV/Revenue closer to peers at 7x.

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Idea Discussion

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