AvidXchange : May 2024 Road Show Presentation

Road Show Presentation

May 2024

Disclaimer

This presentation may contain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements generally relate to future events or our future financial or operating performance and often contain words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "outlook," "project," "estimate," "expect," "future," "likely," "may," "should," "continue," "will" and similar words and phrases indicating future results. The information presented in this presentation related to our expectations of future performance, including guidance for our revenue and Adjusted EBITDA for the full year 2024, our "streak" of financial results, our ability to counterbalance ongoing and future macroeconomic impacts, our customers' perception of the value proposition associated with our products and services including the delivery of electronic payments, our addressable market opportunity, the strength of our products and product pipeline, the role that our verticals, integrations, competitive strengths, and two-sided network will play in positioning us for future growth, and other statements that are not purely statements of historical fact, are forward-looking in nature. These forward-looking statements are made on the basis of management's current expectations, assumptions, estimates and projections and are subject to significant risks and uncertainties that could cause actual results to differ materially from those anticipated in such forward-looking statements. We therefore cannot guarantee future results, performance or achievements.

Factors which could cause actual results or effects to differ materially from those reflected in forward-looking statements include, but are not limited to, the risk factors and other

cautionary statements described, from time to time, in AvidXchange's filings with the Securities and Exchange Commission ("SEC"), including, without limitation, AvidXchange's Annual

Report on Form 10-K and other documents filed with the SEC, which may be obtained on the investor relations section of our website (https://ir.avidxchange.com/) and on the SEC website at www.sec.gov. Any forward-looking statements made by us in this presentation are based only on information currently available to us and speak only as of the date they are made, and we assume no obligation to update any of these statements in light of new information, future events or otherwise unless required under the federal securities laws.

To supplement the financial measures presented in our presentation and related conference call in accordance with generally accepted accounting principles in the United States ("GAAP"), we also present the following non-GAAP measures of financial performance: Non-GAAP Gross Profit, Adjusted EBITDA, and Non-GAAP Net Income (Loss).

A "non-GAAP financial measure" refers to a numerical measure of our historical or future financial performance or financial position that is included in (or excluded from) the most directly comparable measure calculated and presented in accordance with GAAP in our financial statements. We provide certain non-GAAP measures as additional information relating to our operating results as a complement to results provided in accordance with GAAP. The non-GAAP financial information presented herein should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP and should not be considered a measure of liquidity. There are significant limitations associated with the use of non-GAAP financial measures. Further, these measures may differ from the non-GAAP information, even where similarly titled, used by other companies and therefore should not be used to compare our performance to that of other companies.

We have presented Non-GAAP Gross Profit, Adjusted EBITDA, and Non-GAAP Net Income (Loss) in this presentation. We define Non-GAAP Gross Profit as revenue less cost of revenue excluding the portion of depreciation and amortization and stock-based compensation expense allocated to cost of revenues. We define Adjusted EBITDA as our net loss before depreciation and amortization, impairment and write-off of intangible assets, interest income and expense, income tax expense (benefit), stock-based compensation expense, transaction and acquisition-related costs expensed, change in fair value of derivative instrument, non-recurring items not indicative of ongoing operations, and charitable contributions of common stock. We define Non-GAAP Net Income (Loss) as net loss before amortization of acquired intangible assets, impairment and write-off of intangible assets, stock-based compensation expense, transaction and acquisition-related costs expensed, change in fair value of derivative instrument, non-recurring items not indicative of ongoing operations, acquisition-related effects on income tax, and charitable contributions of common stock. Non-GAAP income tax expense is calculated using our blended statutory rate except in periods of non-GAAP net loss when it is based on our GAAP income tax expense. In each case, non-GAAP income tax expense excludes the effects of acquisitions in the period on tax expense.

We believe the use of non-GAAP financial measures, as a supplement to GAAP measures, is useful to investors in that they eliminate items that are either not part of our core operations or do not require a cash outlay, such as stock-based compensation expense. Management uses these non-GAAP financial measures when evaluating operating performance and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures help indicate underlying trends in the business, are important in comparing current results with prior period results and are useful to investors and financial analysts in assessing operating performance.

2	Private & confidential. Do not reproduce without express written permission of AvidXchange.

Presenting AvidXchange

Today's Hosts

Michael Praeger	Joel Wilhite
Chief Executive Officer and Co-Founder	Chief Financial Officer

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Our Mission

Transform the way middle market companies pay and receive bills.

4	Private & confidential. Do not reproduce without express written permission of AvidXchange.

Avidxchange's	Purpose-BuiltMiddle-Market (MM) AP and Payments
Automation AVDX Targets $40 Billion Market Opp.
Investment	B2B Payments Dominated by Paper Checks with E-Payment
Thesis	Trends
	Secular Shift Powered by Macro, Commercial & Demographic

AvidPay is a Differentiated, Two-Sided Network Leading the MM Industry in Capitalizing on the Secular Shift to AP Automation and E-Payment Adoption

AVDX's Decades-in-the-Making 240 Vertical & Horizontal ERP

Integrations & G-T-M Motion Aligns with MM Businesses & Creates

Competitive Moat

Avid's Business Flywheel Fosters Innovation Across Each Gear

Propelling Revenue Growth & Margin Expansion

Solid Balance Sheet with Large Addressable Market, Secular Shift to Automation & E-Pay, a Compelling Financial Model with highly predictable revenues and Strong Operational Execution Equals Significant Value Creation Opportunity for Investors

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1

2

3

4

5

6

AvidXchange

Automates the

Entire AP and	Suppliers	1
Payment	Send Invoices

Workflow

Suppliers

Suppliers Access 6

Information, Manage

Payment & Remittance

Business Rules and

Accelerate Cash Flow

6	© AvidXchange Holdings, Inc. 2023

2

Buyers Manage

Purchase Orders &

Approve Invoices

Cloud-Based Solution

Powering a 2-Sided Network

5

Payments

Matched &

Suppliers Paid

3 Sync Data to Accounting System

Buyers

4 BuyersApprove Payments

Traditional Workflows are Manual, Slow, and Expensive

BEFORE AUTOMATION

AFTER AUTOMATION

Labor

Intensive

Invoice

	Pay File
Paper
Intensive
	Follow-up
High	Cost to
Process Paper
Cost	Invoice
	$16.001

	1.	Goldman Sachs Equity Research
	2.	AFP Payments Study
7	3.	Paymentcloudinc
	© AvidXchange Holdings, Inc. 2023

Open Email Route Code

				Paperless Digital	Enhanced	Real Time
				Process	Controls
Select		ERP Integration	Approve
		Filing	Research	Efficient & Cost	Increased	Anyplace /
Bank Rec	Effective	Visibility	Anytime Access
Cost to Process	Total Cost	Paper Invoice	Check Process	Total AP
Automated	Automated	Automated
	Paper Check	of AP Process
	Cost	Cost	Cost
		$3.002	$19.00	$5.891	$1.503	$7.39

$12 Estimated Savings

Per Transaction

Middle market customers' unique challenges

Inefficient	Complex	Underserved	High Costs	Status Quo
Legacy Solutions	Integration	Target Market		Mindset
	Requirements
42% of U.S. B2B payment	Hundreds of accounting	Highly fragmented	Costs related to these	Traditional long
volume still paid using	systems and	market of vertical	complex AP workflows	tenured finance leaders
paper checks requiring	integrations resulting in	focused ERP and	are a significant	maintain status quo
manual intervention	complex and highly	software solutions	component of middle	financial processes
	specific business,		market companies'
	accounting and		administrative
	compliance		expenses
	requirements

8	Private & confidential. Do not reproduce without express written permission of AvidXchange.

Source: Association of Finance Professionals

We Believe Middle Market Customers Have Unique Needs

ILLUSTRATIVE AR/AP SOLUTIONS

ANNUAL REVENUE

EMPLOYEE SIZE

AVAILABLE US MARKET

(COUNT OF BUSINESSES)

ADOPTION OF

AUTOMATION

BACK OFFICE

COMPLEXITY

SUPPLY CHAIN

COMPLEXITY

ILLUSTRATIVE ACCOUNTING SYSTEMS

SMB

MIDDLE MARKET

ENTERPRISE

< $5mm	$5mm-$1bn	> $1bn
~1-50 employees	~50-1000 employees	1000+ employees
~23mm	~435k	~6k
Emerging	Early Adopter	Maturing

9	© AvidXchange Holdings, Inc. 2023

We Are Purpose Built for Solving the

Problems of the Middle Market

Buyer

• Improve and Control Spend
• Eliminate Paper Processes
• Reduce Manual Data Entry & Fraud
• Increase Visibility
• Manage Suppliers
• Audit / Regulatory Trails

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Supplier

• Invoice Reconciliation
• Remove Costly Frictions
• Send Invoices Electronically
• Decrease Data Entry
• Improve Cash Forecasting
• Provide Working Capital