AvidXchange Holdings, Inc (AVDX) shares plunged 12.79% in the pre-market session on Wednesday, after the company reported better-than-expected Q4 2024 earnings but provided weaker-than-expected revenue guidance for fiscal 2025.
The accounts payable automation software provider reported Q4 2024 revenue of $115.4 million, up 10.9% year-over-year, driven by growth in transactions processed and payment volume. Adjusted EBITDA improved to $26.3 million from $15.6 million in Q4 2023, reflecting operating leverage and margin expansion.
However, AvidXchange's revenue outlook for fiscal 2025 fell short of analysts' expectations. The company guided for 2025 revenue in the range of $453 million to $460 million, below the consensus estimate of $483.1 million. AvidXchange cited a challenging macroeconomic environment and the absence of political revenue as factors weighing on its top-line growth expectations for the year.