Shares of AvidXchange Holdings witnessed a 16% surge on Wednesday, reaching $9.28, in response to the company’s robust third-quarter performance and an optimistic outlook for 2023. Although the stock has experienced a 6.7% decline this year, the recent promising results have generated optimism among investors.
The provider of account payable automation software and payment solutions demonstrated impressive progress by narrowing its loss for the three months ending September 30. AvidXchange reported a loss of $8.1 million, or 4 cents per share, a significant improvement from the previous year’s loss of $25.4 million, or 13 cents per share. This performance surpassed analysts’ expectations, who had predicted a loss of 8 cents per share, according to FactSet.
Moreover, the company’s revenue experienced substantial growth, amounting to $98.7 million compared to last year’s $82.4 million. This positive outcome also surpassed FactSet analysts’ projected revenue of $95.1 million.
AvidXchange’s impressive performance has led to an even more promising outlook for 2023. The company now forecasts revenue between $374.5 million and $375.5 million, raising the bar from its previous estimate of $368 million to $370 million.
Commenting on these results, Chief Executive Michael Praeger stated, “On key financial measures, from revenue growth to gross margin to EBITDA, we exceeded—significantly in some instances—our implied third-quarter business outlook.”