AvidXchange(NASDAQ: AVDX) stock got crushed in Wednesday's trading. The company's share price ended the daily session down 29.7%, according to data from S&P Global Market Intelligence.
Despite a bullish surge for the broader market today, AvidXchange stock got hit hard after the company published its second-quarter results. The accounts payable/automation specialist's share price cratered following the release of mixed Q2 results and concerning forward guidance.
AvidXchange's Q2 results weren't terrible
AvidXchange's revenue increased roughly 15% year over year to hit $105.13 million, but it still missed the average analyst estimate by $1.75 million. On the other hand, the company's non-GAAP (adjusted) earnings per share came in at $0.05 -- beating the average Wall Street target by $0.01 per share.
AvidXchange closed out Q2 with 19.7 million total transactions processed through its platform, up 4.8% year over year. Meanwhile, total payment volume rose 10.4% to hit $20.6 billion, and average transaction yield rose 10.1% to $5.33. The company actually posted encouraging results along some key fronts in the quarter, but its forward guidance spooked the market.
But the company's outlook signaled fault lines
AvidXchange provided a guidance update with its recent earnings report, and investors weren't happy with the new guidance. Citing macroeconomic headwinds, the company now expects full-year sales to come in between $436 million and $439 million. That's down from its previous target for sales to be between $442 million and $448 million. Prior to the report, the average analyst estimate had called for the business to deliver sales of $447.4 million.
AvidXchange actually raised its target for full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to between $73 million and $75 million. For comparison, the company had previously guided for adjusted EBITDA to come in between $71 million and $75 million. But the target increase failed to comfort investors.
Notably, AvidXchange's commentary suggested that the business could continue to face macroeconomic headwinds. The company also noted that it expected roughly $9 million in political media revenue this year through its Fast Pay division. The guidance likely underwhelmed investors given that this is a presidential election year and the Fast Pay unit recorded $8.5 million in sales the 2022 midterm election year.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
