AvidXchange (AVDX) Piper Sandler Growth Frontiers Conference summary

Company history and market opportunity

• Founded in 2000 to address inefficiencies in accounts payable, initially focusing on real estate and expanding to nine industry verticals.

• Achieved significant growth after launching the AvidPay Network in 2012, combining AP automation with a payment network.

• Maintains a long-term view with single-digit penetration across a 435,000-company middle market in the U.S.

• Integrates with over 240 accounting systems, serving both vertical-specific and horizontal markets.

Vertical strategy and expansion

• Single-digit penetration remains in all nine verticals, including real estate, which itself has dynamic subsectors.

• Newest verticals, facilities and hospitality, are experiencing robust growth, supported by partnerships with leading ERP providers.

• Vertical launches are driven by natural customer influx and tailored go-to-market strategies.

Growth algorithm and monetization

• Business growth is driven by a four-gear flywheel: customer acquisition, accounting system integration, paper-to-electronic conversion, and data utilization.

• Revenue is generated from both buyers (software subscriptions) and suppliers (payment modality fees), with over 40% of transactions monetized.

• Suppliers benefit from 25 payment modalities, business rule management tools, and cash flow management products like Payment Accelerator.

• Payment Accelerator is expected to become a $100 million business, with high repeat usage among suppliers.