CHARLOTTE, N.C., July 14, 2022 — AvidXchange Holdings, Inc. (Nasdaq: AVDX), a leading provider of accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers, today released the next report in its Middle Market Spending Trends series based on statistically significant data captured from the transactions processed in Q1 2021 by AvidXchange through its AvidPay Network. Additionally, to garner insights on sentiment around spending, AvidXchange surveyed ~500 middle market finance professionals to understand how they feel about their business and where, and why, they are spending in response to the current economic challenges, especially when it comes to their finance department.
The report shows that, middle market companies are investing in digital transformation, spending more on information technology (IT) and technology (22%) than they are on hiring, marketing and sales and operations. The AvidPay Network data reflects this trend; the average yearly technology spend increase since 2020 has been 7.4 percent, which is more than triple what it was prior to that (2.4 percent from 2017-2020).
Furthermore, the research shows that digital adoption is helping the middle market offset the costs of larger economic challenges by boosting efficiency and streamlining time and labor-intensive processes like routing and approving invoices and issuing payments. Specifically, it is allowing the back-office to do more with less. And finance professionals are feeling good about the commitment to modernization. In fact, 78 percent of survey respondents reported they feel the technology their organizations have adopted in the last two years will have a positive impact on business continuity.
“Investments in digital transformation and technology are allowing middle market companies to continue to grow and drive their businesses forward, despite the tight labor market,” said Angelic Gibson, Chief Information Officer of AvidXchange. “The pandemic may have accelerated the rate of technology adoption, but the efficiencies it provides are unmatched, so it’s no surprise that nearly three quarters of survey respondents say they plan to invest in more tools within the next three years.”
“Middle market companies are proving their resilience with a positive outlook despite economic challenges plaguing business, including inflation, ongoing supply chain disruptions and a looming recession,” said Dan Drees, Chief Growth Officer of AvidXchange. “Shifts in spending show strategic planning in order to stay ahead of economic uncertainty.”
To learn more and view the report, read Middle Market Spending Trends.
AvidXchange is a leading provider of accounts payable (“AP”) automation software and payment solutions for middle market businesses and their suppliers. AvidXchange’s software-as-a-service-based, end-to-end software and payment platform digitizes and automates the AP workflows for more than 8,000 businesses and it has made payments to more than 825,000 supplier customers of its buyers over the past five years. To learn more about how AvidXchange is transforming the way companies pay their bills, visit www.AvidXchange.com.
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