Quick Summary:
Consolidated Statements of Cash Flows(in thousands) Year Ended December 31, 2024 2023 2022 Cash flows from operating activities Net income (loss) $8,145 $(47,325) $(101,284)Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities Depreciation and amortization expense 36,284 35,912 32,842 Amortization of deferred financing costs 405 431 1,357 Debt extinguishment costs 1,081 - 1,579 Provision for doubtful accounts 3,508 2,957 4,989 Stock-based compensation 47,235 40,856 31,838 Accrued interest 629 728 815 Impairment and write-off on intangible and right-of-use assets 286 - 2,777 Loss on fixed asset disposal 159 - 36 Loss on ROU asset abandonment 897 - - Accretion of investments held to maturity (4,062) (5,326) (2,108)Value of donated common stock 1,868 1,667 1,473 Deferred income taxes 187 721 216 Changes in operating assets and liabilities Accounts receivable (6,067) (8,289) (10,289)Prepaid expenses and other current assets (3,247) 491 (2,324)Other noncurrent assets (1,208) 1,605 (707)Deferred customer origination costs (456) 621 (8)Accounts payable (1,286) 2,862 (3,385)Deferred revenue (1,771) (1,956) (330)Accrued expenses and other liabilities (9,761) (16,981) 14,036 Operating lease liabilities (892) (523) (224)Total adjustments 63,789 55,776 72,583 Net cash provided by (used in) operating activities 71,934 8,451 (28,701)Cash flows from investing activities Purchases of marketable securities held to maturity (120,223) (273,995) (385,022)Proceeds from maturity of marketable securities held to maturity 135,268 345,661 276,144 Purchases of equipment (2,063) (2,254) (3,149)Purchases of real estate - - (767)Purchases of intangible assets (17,532) (16,050) (24,655)Supplier advances, net (6,760) (1,416) (2,899)Net cash (used in) provided by investing activities (11,310) 51,946 (140,348)Cash flows from financing activities Proceeds from the issuance of long-term debt - - 67,367 Repayments of long-term debt (68,175) (1,625) (106,390)Principal payments on land promissory note - (4,800) (4,800)Principal payments on finance leases (298) (521) (844)Proceeds from issuance of common stock 5,685 1,570 1,448 Proceeds from issuance of shares under ESPP 2,563 2,233 1,570 Payment of debt issuance costs (1,529) (743) (1,212)Repurchases of common stock (50,107) - - Payment of acquisition-related liability (100) (100) (344)Payment service obligations (328,310) 294,832 41,478 Net cash (used in) provided by financing activities (440,271) 290,846 (1,727)Net (decrease) increase in cash, cash equivalents, and restricted funds held for customers (379,647) 351,243 (170,776)Cash, cash equivalents, and restricted funds held for customers Cash, cash equivalents, and restricted funds held for customers, beginning of year 1,985,630 1,634,387 1,805,163 Cash, cash equivalents, and restricted funds held for customers, end of year $1,605,983 $1,985,630 $1,634,387 Year Ended December 31, 2024 2023 2022 Supplementary information of noncash investing and financing activities Property and equipment and intangible asset purchases in accounts payable and accrued expenses $4 $675 $400 Right-of-use assets obtained in exchange for new finance lease obligations - 81 712 Right-of-use assets obtained in exchange for new operating lease obligations - 362 2,831 Common stock issued as contingent consideration - - 344 Interest paid on notes payable 4,360 6,510 12,880 Interest paid on finance leases 5,941 5,857 5,774 Cash paid for income taxes 1,046 304 125 AvidXchange Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Measures (Continued) Three Months Ended December 31, Year Ended December 31, Reconciliation from Net Income (Loss) to Non-GAAP Net Income 2024 2023 2024 2023 (in thousands) Net income (loss) $4,671 $(4,473) $8,145 $(47,325)Exclude: Provision for income taxes 246 856 921 1,195 Income (loss) before taxes 4,917 (3,617) 9,066 (46,130)Amortization of acquired intangible assets 2,910 3,623 13,150 14,493 Impairment and write-off of intangible assets 124 - 286 - Stock-based compensation expense 12,107 9,675 47,235 40,856 Transaction and acquisition-related costs (1) 290 - 1,371 (7)Non-recurring items not indicative of ongoing operations (2) 861 1,133 252 5,541 Charitable contribution of stock 1,868 1,667 1,868 1,667 Total net adjustments 18,160 16,098 64,162 62,550 Non-GAAP income before taxes 23,077 12,481 73,228 16,420 Non-GAAP tax expense (3) $5,746 $3,108 $18,234 $4,089 Non-GAAP net income $17,331 $9,373 $54,994 $12,331 Weighted-average shares used to compute Non-GAAP net income per share attributable to common stockholders, basic 205,223,697 203,517,119 206,096,505 201,887,669 Weighted-average shares used to compute Non-GAAP net income per share attributable to common stockholders, diluted 207,252,025 207,367,561 209,158,393 205,579,485 GAAP Net income (loss) per share attributable to common stockholders, basic $0.02 $(0.02) $0.04 $(0.23)GAAP Net income (loss) per share attributable to common stockholders, diluted $0.02 $(0.02) $0.04 $(0.23) Non-GAAP basic net income per share attributable to common stockholders, basic $0.08 $0.05 $0.27 $0.06 Non-GAAP basic net income per share attributable to common stockholders, diluted $0.08 $0.05 $0.26 $0.06 GAAP income (loss) per common share, basic and diluted $0.02 $(0.02) $0.04 $(0.23)Amortization of acquired intangible assets 0.01 0.02 0.06 0.07 Impairment and write-off of intangible assets - - - - Stock-based compensation expense 0.06 0.05 0.23 0.20 Transaction and acquisition-related costs (1) - - 0.01 - Non-recurring items not indicative of ongoing operations (2) - 0.01 - 0.03 Charitable contribution of stock 0.01 0.01 0.01 0.01 Provision for income taxes (0.03) (0.01) (0.08) (0.01)Adjustment to fully diluted earnings per share 0.01 (0.01) (0.01) (0.01)Non-GAAP diluted income per common share $0.08 $0.05 $0.26 $0.06 AvidXchange Holdings, Inc.
Reconciliation of GAAP to Non-GAAP Measures (Continued) Three Months Ended December 31, Year Ended December 31, Reconciliation of Net Income (Loss) to Adjusted EBITDA 2024 2023 2024 2023 (in thousands) Net income (loss) $4,671 $(4,473) $8,145 $(47,325)Depreciation and amortization 8,677 9,397 36,284 35,912 Impairment and write-off intangible assets 124 - 286 - Interest income (4,595) (6,070) (22,973) (20,890)Interest expense 2,057 3,413 11,331 13,519 Provision for income taxes 246 856 921 1,195 Stock-based compensation expense 12,107 9,675 47,235 40,856 Transaction and acquisition-related costs (1) 290 - 1,371 (7)Non-recurring items not indicative of ongoing operations (2) 861 1,133 252 5,541 Charitable contribution of stock 1,868 1,667 1,868 1,667 Adjusted EBITDA $26,306 $15,598 $84,720 $30,468 As of and for the Year Ending December 31, Annual Metrics 2024 2023 2022 Total payment volume (in millions) $83,842 $75,922 $68,202 Transactions 79,123,540 75,330,634 70,168,806 Buyers (4) 8,500 8,000 7,400 Suppliers paid over the past 5 years 1,350,000 1,200,000 965,000 (1) For the three and twelve months ended December 31, 2024, this amount is comprised of debt issuance costs written-off related to the repayment of the Company's term loan.(2) For the year ended December 31, 2024, this amount includes $1,157 of severance costs and a net benefit of $1,808 of response costs incurred in connection with the cybersecurity incident that was detected in April 2023 in addition to $707 of net costs related to lease abandonment and other real estate related amounts.
