The know-how trade is seeing a number of corporations lining as much as make their market debut. One such candidate who is about to go public this week is AvidXchange Holdings Inc. Listed here are a number of factors to find out about this software program agency’s IPO:
AvidXchange Holdings Inc. is scheduled to go public on Wednesday, October 13. The corporate will start buying and selling on NASDAQ underneath the ticker image AVDX. It’s going to provide 22 million shares at a worth vary of $23 to $25 to lift $528 million. The IPO can be managed by a bunch of underwriters led by Goldman Sachs and JPMorgan.
AvidXchange supplies accounts payable (AP) automation software program and fee options for center market companies and their suppliers. Its Software program-as-a-Service-based end-to-end software program and fee platform digitizes and automates the AP workflows for greater than 7,000 companies and it has made funds to greater than 700,000 provider clients of its patrons over the previous 5 years.
The corporate sells its options by means of a hybrid go-to-market technique that features direct and oblique channels. Its clients function throughout a wide range of verticals together with actual property, development, monetary providers, healthcare amenities, social providers and schooling. In 2020, AvidXchange processed approx. 53 million transactions representing over $145 billion in spend underneath administration throughout its platform.
AvidXchange generated revenues of $185.9 million in 2020, which was up 24.3% from 2019. Gross revenue elevated to $85.4 million from $62.6 million in 2019. Gross margin amounted to 45.9% in 2020 versus 41.9% in 2019. Internet loss in 2020 was $101.2 million in comparison with $93.5 million in 2019.
AvidXchange sees important alternative for digital transformation throughout the B2B funds market. A current examine by PYMNTS.com discovered that 46% of AP professionals wish to implement digital AP automation options whereas one other examine from MarketsandMarkets estimates that the AP automation market will develop 11% yearly by 2024.
The corporate estimates that its present addressable market consists of approx. 435,000 US center market companies and represents a major and underserved income alternative for future progress. These are primarily companies with between $5 million and $1 billion in annual income or those who handle giant volumes of AP.
AvidXchange additionally sees huge alternative in provider bill finance. Its options assist suppliers speed up invoices for early fee, handle provider fee preferences, and forecast future money flows. The corporate estimates the overall addressable market alternative for these options to be greater than $20 billion in extra whitespace alternative, bringing its complete addressable market to north of $40 billion.
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