AvidXchange and AppFolio New Partnership for the Real Estate Industry
Revolutionising the Accounts Payable Process for 19,000 Real Estate Customers
In a groundbreaking move set to redefine the real estate industry landscape, AvidXchange, a pioneering provider of accounts payable (AP) automation software and payment solutions, has announced a strategic partnership with AppFolio, the technology leader at the forefront of the real estate sector. This union is poised to revolutionise how the industry manages its accounts payable processes, enhancing efficiency and productivity for AppFolio’s 19,000 real estate customers.
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The partnership, unveiled on November 8, 2023, signifies AvidXchange’s role as the first accounts payable partner to join the esteemed ranks of the AppFolio Stackā¢ Marketplace. AppFolio Stackā¢ Marketplace is a rapidly expanding ecosystem. It offers services from seamless software integrations to dedicated accounting and consulting solutions that empower property managers to streamline their operations and scale their businesses effectively.
At the heart of this collaboration is the drive to simplify and streamline the workflow for automated invoice processing, approvals, and payments within the real estate industry. AppFolio’s integration with AvidXchange will enable effortless recording of invoice details and transactions within AppFolio’s accounting system. Subsequently, payment transaction data will seamlessly pass to the AvidXchange payment solution, facilitating automated payments with ease. Moreover, this integration ensures that invoice details, including images, will be readily searchable within AppFolio, eliminating the cumbersome need to manage critical transaction records across multiple systems.
Michael Praeger, Chairman, Chief Executive Officer, and Co-Founder of AvidXchange, expressed his excitement about the partnership, emphasising its potential in the real estate vertical. Praeger stated, “Given our 20+ year heritage in the real estate vertical, and not to mention our ability to go deep in the customer base of these partnerships, the AppFolio partnership underscores just how large and underpenetrated we believe the runway of opportunity remains in just the real estate vertical.”
Dan Drees, President of AvidXchange, echoed this sentiment, highlighting the remarkable growth prospects within the real estate vertical and their commitment to providing solutions that significantly enhance customer workflows.
This collaboration between AvidXchange and AppFolio will go live in 2024, promising a seamless and efficient experience for real estate professionals. The partnership signifies a game-changing development in AP automation. It reflects AvidXchange’s dedication to fostering application programming interface (API) partnerships and deep accounting integrations with leading enterprise resource planning (ERP) systems across diverse industries.
In the wake of this transformative partnership, AvidXchange has raised its full-year 2023 business outlook, projecting revenue in the range of $374.5 million to $375.5 million, an upswing from the previous guidance of $368.0 million to $370 million, as revealed in their third-quarter earnings report.
The numbers speak volumes about AvidXchange’s financial prowess, with a staggering 19.7% increase in total revenue compared to the same period in 2022, reaching $98.7 million. The company’s gross profit accounted for 63.2% of total revenue, an impressive $62.3 million. Furthermore, non-GAAP gross profit, which excludes certain expenses, stood at $69.1 million, equivalent to 70.0% of total revenue.
AvidXchange’s improved net income is equally notable, with a net loss of $8.1 million in the third quarter of 2023, compared to a loss of $25.4 million in the same period last year. Michael Praeger remarked, “Our value proposition for cost containment and reduction continues to resonate tremendously with our B2B middle market customers. And the recent integration partnership with AppFolio, a real estate-focused provider of solutions with a base of 19,000 customers, is a great testament to that recognition and the large addressable market opportunity ahead of us.”
In conclusion, the alliance between AvidXchange and AppFolio marks a significant milestone in the real estate industry’s evolution towards streamlined and efficient accounts payable processes. With the promise of enhanced automation and seamless integration, this partnership empowers property managers and redefines how business is conducted within the real estate vertical. As AvidXchange leads the way as the first AP partner in the AppFolio Stackā¢ Marketplace, it underscores the commitment to innovation and excellence that both companies bring to the table, ushering in a new era for the real estate sector.
