The market was avid for shares of AvidXchange Holdings (AVDX 1.10%) on Wednesday. The accounts payable software and payments solutions developer published its latest set of quarterly results, and they were impressive. So much so that investors drove the stock's price more than 15% higher during the trading session. That was miles ahead of the slight (0.1%) increase of the S&P 500 index.

AvidXchange flipped into the black on the (adjusted) bottom line

AvidXchange took the lid off those results before market open, setting the stock up for a nice rise during the day. The company booked total revenue of $98.7 million in its third quarter, for a year-over-year increase of almost 20%.

Another encouraging development was its flip into the black on the bottom line; non-GAAP (adjusted) net income came in at $5.8 million against third quarter 2022's $11.7 million loss. The trajectory was also encouraging when measuring by GAAP standards, as the company's net loss narrowed considerably to slightly more than $8 million ($0.04 per share) from the year-ago deficit of more than $25 million.

On average, analysts tracking AvidXchange stock were anticipating barely over $95 million for revenue, although they had been modeling a GAAP net loss of $0.02 per share.

In its earnings release, AvidXchange attributed its notable improvements to the pricing of its solutions, which it quoted co-founder and CEO Michael Praeger as saying "continues to have tremendous resonance with our B2B middle market customers."

EBITDA guidance got a serious lift

Another positive development with AvidXchange was the raising of its full-year 2023 guidance. Buoyed by the solid third quarter, the company now feels it will earn $374.5 million to $375.5 million in revenue for the year; previously it was guiding for $368 million to $370 million.

It made a more dramatic adjustment to its forecast for earnings before interest, taxes, depreciation, and amortization (EBITDA). Its new projection is $22 million to $23 million for the period, well up from its preceding estimate of $7 million to $8 million.