Caesars Entertainment misses Q2 earnings expectations, shares edge lower
On Wednesday, BTIG analyst Andrew Harte adjusted the price target on AvidXChange Holdings (NASDAQ:AVDX) to $11.00, a decrease from the previous $14.00, while sustaining a Buy rating on the company’s stock. The revision follows AvidXChange’s fiscal year 2025 revenue guidance, which fell short of BTIG and consensus analyst expectations. The company forecasted revenues between $453 million and $460 million, notably lower than the projected $474 million by BTIG and $484 million by the Street. Currently trading at $7.30, the stock is near its 52-week low of $7.38, and according to InvestingPro analysis, technical indicators suggest oversold conditions.
AvidXChange’s guidance indicates a growth deceleration in its core revenue, with an anticipated increase of approximately 8% for FY25. This marks a slowdown from the roughly 13% growth experienced in FY24 and is below BTIG’s prior growth estimate of about 12.8%. The tempered growth outlook is attributed to a roughly 6% headwind to net transaction retention, which reflects conservative spending decisions by customers at the start of the year. Despite the slowdown, the company maintains a robust gross margin of 71.46% and achieved 17.84% revenue growth in the last twelve months. InvestingPro subscribers can access detailed financial health scores and 8 additional ProTips for deeper analysis.
Despite the lower-than-expected retention rate, AvidXChange’s management remains confident in its ability to acquire new customers at the top of the funnel. Additionally, the company’s core payments take rate remained stable in the fourth quarter, which could mitigate concerns regarding potential payment modality challenges.
As a result of the revised guidance, BTIG has also reduced its FY25 and FY26 earnings estimates for AvidXChange. However, the firm reiterates its Buy rating, citing the company’s strong position in the middle-market business-to-business (B2B) payments sector. AvidXChange is viewed as poised for sustained growth, serving a large total addressable market where approximately 70% of invoices are still processed manually with paper checks.
In other recent news, AvidXchange Holdings Inc reported its Q4 2024 earnings, surpassing analyst expectations with an earnings per share (EPS) of $0.08, exceeding the forecast of $0.07. The company’s revenue reached $115.4 million, slightly above the anticipated $114.84 million, marking a 10.9% increase year-over-year. Despite these positive results, the company’s stock experienced a significant decline, which may reflect broader market concerns. AvidXchange has set its 2025 revenue guidance between $453 million and $460 million, focusing on expanding its product offerings and enhancing AI-driven automation capabilities. The company also announced new product launches, including Payment Accelerator 2.0, which is expected to contribute to future growth. Analyst firm Goldman Sachs participated in the earnings call, seeking further insights into the company’s financial strategies and market positioning. Additionally, AvidXchange repurchased $50 million worth of shares in 2024, underscoring confidence in its long-term business prospects.
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