AvidXchange, an AP automation platform provider, reported a non-GAAP loss per share of USD 0.00 for Q2 2023, beating consensus estimates for a loss per share of USD 0.05, and improving from its Q2 2022 loss per share of USD 0.07.

Meanwhile, Q2 revenue rose 19.1% YoY to USD 91.2 million (beating analyst expectations by 2.4%). The revenue growth was driven by a total payment volume rising 12.7% YoY (reaching USD 18.7 billion) and transaction yield rising 9.5% YoY to USD 4.84.   

AvidXchange’s non-GAAP gross margin grew 4.7 percentage points (pp) YoY to 68.3% in Q2 2023. Adjusted EBITDA (primarily adjusted for stock-based compensation) remained positive at USD 3.0 million (from a negative USD 4.7 million in Q2 2022) after turning positive for the first time last quarter, since the company went public (October 2021). 

The company revised its annual guidance upward and expects annual revenue to rise 16%–17% YoY in 2023 and reach USD 368 million–370 million (compared to previous guidance of USD 363 million–368 million). AvidXchange has achieved around 48% of its annual target as of Q2 2023. It also expects the annual adjusted EBITDA to turn positive and come in between USD 7 million–8 million (compared to previous guidance of USD 2 million–4 million). 

Along with the funding, the company also announced the elevation of John Feldman—who joined the company in 2019 as senior VP of operations—to COO. Feldman will continue to oversee the standardization, sourcing, and automation transformations of AvidXchange’s service and fulfillment operations.