Avidxchange Holdings, Inc. (NASDAQ: AVDX) has announced its first-ever share repurchase program, authorizing the purchase of up to $100 million of the company's common shares. The program, effective immediately, allows for repurchases to be made in the open market, in privately negotiated transactions, or pursuant to a Rule 10b5-1 plan. However, there is a $50 million cap on repurchases in any fiscal year, as per the terms of the company's recently amended and restated credit facility. The share repurchase program will terminate either on December 31, 2025, or upon the expenditure of the maximum dollar amount, subject to potential suspension, modification, or termination at the company's discretion.
Michael Praeger, the CEO and co-founder of Avidxchange, expressed confidence in the company's long-term growth, profit, and cash flow prospects, citing the acceleration of the path to adjusted EBITDA profitability and the delivery of the company's first-ever GAAP profit since going public. He also highlighted the company's disciplined capital allocation strategy aimed at driving capital returns and partially offsetting stock-based compensation dilution, as well as its solid balance sheet, which has allowed for the payment of bank debt while sustaining organic and inorganic reinvestments to fund future innovation and growth within the core business.
Avidxchange is a leading provider of accounts payable automation software and payment solutions for middle market businesses and their suppliers, with a software-as-a-service-based, end-to-end platform that digitizes and automates AP workflows for over 8,000 businesses. Over the past five years, the company has made payments to more than 1,200,000 supplier customers of its buyers.
This share repurchase program reflects the company's confidence in its financial position and future prospects, as well as its commitment to enhancing shareholder value. Following these announcements, the company's shares moved -1.9%, and are now trading at a price of $7.77. For the full picture, make sure to review AvidXchange's 8-K report.
