10 Best Small-Cap Stocks to Buy Now

6. AvidXchange Holdings, Inc. (NASDAQ:AVDX) 

Analyst Upside: 20.42%

No. of Hedge Fund Holders: 34

AvidXchange Holdings, Inc. (NASDAQ:AVDX) is a provider of accounts payable automation software and payment solutions for middle-market businesses and their suppliers. The company offers a cloud-based, software and payment platform that digitizes and automates the accounts payable workflow for its clients, and their service providers and vendors. The company serves a wide range of industries in North America including real estate, homeowner’s associations, construction, financial services, healthcare facilities, social services, education, and media. AvidXchange has executed payments to over 1.2 million supplier customers of its buyers.

In Q3 2024, the company posted a strong performance and analysts anticipate a similar result in Q4. The company’s revenue surged by 14.3% year-over-year to $112.8 million in Q3, driven by the company’s payment, software, and services segments. AvidXchange Holdings, Inc.’s (NASDAQ:AVDX) operating expense management and the ability to leverage unit cost efficiencies added to the notable expansion in gross and operating margins. Moreover, AVDX executed $25.1 million of its $100 million share repurchase program, representing its strong financial health.