AvidXchange Holdings, Inc. (NASDAQ:AVDX) Q1 2024 Earnings Call Transcript

Rufus Hone: Hi. Good morning. Thanks guys. I wanted to come back to your comments on the EBITDA margin guidance. It looks like it implies just a small step down in margins from the first quarter level through the rest of the year. And I guess lower float income is a factor here, but I wanted to ask if there was some incremental investment spend that you are now looking to make that’s adding to the margins leveling off or being just a touch lower through the rest of the year? Thanks.

Michael Praeger: Thanks Rufus. Yes, good question. So, again, we were really pleased with the quarter and the progression of OpEx as a percentage of revenue keeps marching sort of down as we talked about at Investor Day last year where we are seeing increasing leverage in the business. I would say that there would be some potential variability quarter-to-quarter if you think about what’s implied in the guide. So, I could point to some investments, a couple of million dollars sequentially into Q2, particularly around R&D, sales and marketing. And so quarter-to-quarter, there will be some variability. But over the year and going forward, we expect to continue to see this operating leverage show up in the financials and contribute to EBITDA.

Operator: Thank you. This concludes our question-and-answer session. I would like to turn the conference back over to Michael Praeger for any closing remarks.

Michael Praeger: Thank you again everyone for your interest in AvidXchange. To wrap up, we delivered another strong quarter. Given our disciplined execution and strong financial performance amid the current macro volatility, we believe our portfolio of product innovations, industry-leading accounting system integration partnerships along with multiple monetization levers aligned with our customer needs, creating growth opportunities for our team members and driving long-term value creation for our investors. With that, we look forward to sharing our progress on our next earnings call. You can now close the call.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.