AvidXchange (AVDX) Goldman Sachs Communacopia + Technology Conference summary

Market overview and customer base

• Focuses on automating accounts payable and payments for U.S. middle market companies ($5M–$1B revenue), with 435,000 potential customers in this segment.

• Operates across nine industry verticals and integrates with over 240 ERP systems, creating a strong competitive moat.

• Middle market remains largely untapped, with over 70% still using paper-based processes; 95% of new customers are greenfield.

Macro environment and spending trends

• Middle market discretionary spend has declined, impacting transaction growth, especially in marketing, consulting, and capital projects.

• Uncertainty from macroeconomic factors and the election cycle is causing cautious spending and delayed decision-making.

• Historically, confidence and discretionary spend rebound quickly after cycles of uncertainty.

Monetization and supplier value proposition

• Monetization strategy centers on offering suppliers 25 payment modalities, including 12 virtual card and 12 ACH options.

• Partnership with Mastercard enables differentiated interchange structures and product offerings.

• Suppliers can set business rules for payment types and access cash flow management tools like Payment Accelerator.

• Over 1.2 million suppliers on the network, with two-thirds of new suppliers choosing virtual cards despite higher costs due to automation benefits.