AvePoint Announces Third Quarter 2021 Financial Results
AvePoint (NASDAQ: AVPT), the global leader in data security, governance, and resilience, today announced financial results for the third quarter ended September 30, 2021.
"AvePoint delivered its eleventh consecutive record quarter with total revenue of $54 million and 79% year over year growth in subscription revenue for our SaaS and data management platform," said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. "With most companies still in the early stages of their SaaS optimization and multi-cloud shifts, there is a massive market opportunity for AvePoint to manage and protect digital collaboration data on a recurring basis that will only increase as companies' SaaS operations become more mature and complex."
Third Quarter 2021 Financial Results
- Total Revenue of $53.9 million, up 36% year-over-year
- Total ARR of $147.5 million as of September 30, 2021, up 32% year-over-year
- SaaS Revenue of $22.4 million, up 59% year-over-year
- GAAP Operating Loss of $28.7 million
- Non-GAAP Operating Income of $4.0 million
- Cash and Short-Term Investments of approximately $262.3 million as of September 30, 2021
Third Quarter 2021 Key Highlights
- Launched first global partner program, designed to support the unique needs of different types of channel partners as they build services around digital collaboration.
- AvePoint was awarded a $37 million SGD ($27.5 million USD) contract from lead agency Temasek Polytechnic to deploy a training management platform for career professionals. The platform will be powered by AvePoint EduTech and will be available to six institutions of higher learning (IHL) for over 100,000 students.
- Maintained triple digit growth in monthly recurring revenue (MRR) tied to the managed services provider (MSP) business.
- Achieved record level sequential growth in accounts with over $100k in annual recurring revenue (ARR).
Financial Outlook
For the fourth quarter of 2021, AvePoint currently expects:
- Total revenues between $56.4 and $58.4 million
- Non-GAAP operating income between break even and $1.5 million
For the full year ending December 31, 2021, AvePoint currently expects:
- Total revenues between $194.4 and $196.4 million
- Non-GAAP operating income between $4.7 and $6.2 million
Conference Call
AvePoint will host a conference call today on November 15, 2021 to review its third quarter 2021 financial results and to discuss its financial outlook. The call is scheduled to begin at 8:30am Eastern Time. Investors are invited to join the webcast by visiting https://ir.avepoint.com/events. The webcast will be available live, and a replay will be available following the completion of the live broadcast for approximately 90 days.
AvePoint, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue: | ||||||||||||||||
| SaaS | $ | 22,410 | $ | 14,092 | $ | 61,255 | $ | 36,034 | ||||||||
| Termed license and support | 17,477 | 8,171 | 37,292 | 23,272 | ||||||||||||
| Services | 8,143 | 10,870 | 21,361 | 26,173 | ||||||||||||
| Maintenance and OEM | 5,293 | 6,056 | 16,160 | 17,837 | ||||||||||||
| Perpetual license | 604 | 605 | 2,003 | 2,095 | ||||||||||||
| Total revenue | 53,927 | 39,794 | 138,071 | 105,411 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| SaaS | 4,866 | 2,799 | 13,870 | 7,856 | ||||||||||||
| Termed license and support | 211 | 437 | 714 | 1,257 | ||||||||||||
| Services | 9,435 | 6,716 | 21,528 | 19,605 | ||||||||||||
| Maintenance and OEM | 710 | 304 | 1,608 | 978 | ||||||||||||
| Total cost of revenue | 15,222 | 10,256 | 37,720 | 29,696 | ||||||||||||
| Gross profit | 38,705 | 29,538 | 100,351 | 75,715 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 25,186 | 21,830 | 73,488 | 49,881 | ||||||||||||
| General and administrative | 22,230 | 10,469 | 44,186 | 20,918 | ||||||||||||
| Research and development | 19,648 | 3,003 | 27,633 | 8,760 | ||||||||||||
| Depreciation and amortization | 326 | 259 | 863 | 800 | ||||||||||||
| Total operating expenses | 67,390 | 35,561 | 146,170 | 80,359 | ||||||||||||
| Loss from operations | (28,685 | ) | (6,023 | ) | (45,819 | ) | (4,644 | ) | ||||||||
| Gain on earn-out and warrant liabilities | 13,650 | — | 13,650 | — | ||||||||||||
| Interest income, net | 56 | 17 | 80 | 26 | ||||||||||||
| Other income (expense), net | (299 | ) | 65 | (300 | ) | (324 | ) | |||||||||
| Loss before income taxes | (15,278 | ) | (5,941 | ) | (32,389 | ) | (4,942 | ) | ||||||||
| Income tax (benefit) expense | (5,521 | ) | 6,244 | (6,633 | ) | (72 | ) | |||||||||
| Net loss | $ | (9,757 | ) | $ | (12,185 | ) | $ | (25,756 | ) | $ | (4,870 | ) | ||||
| Net loss attributable to and accretion of redeemable noncontrolling interest | (517 | ) | — | (1,413 | ) | — | ||||||||||
| Net loss attributable to AvePoint, Inc. | $ | (10,274 | ) | $ | (12,185 | ) | $ | (27,169 | ) | $ | (4,870 | ) | ||||
| Deemed dividends on preferred stock | 608 | (5,615 | ) | (32,928 | ) | (21,413 | ) | |||||||||
| Net loss available to common shareholders | $ | (9,666 | ) | $ | (17,800 | ) | $ | (60,097 | ) | $ | (26,283 | ) | ||||
| Loss per share: | ||||||||||||||||
| Basic | $ | (0.05 | ) | $ | (0.20 | ) | $ | (0.47 | ) | $ | (0.30 | ) | ||||
| Diluted | $ | (0.05 | ) | $ | (0.20 | ) | $ | (0.47 | ) | $ | (0.30 | ) | ||||
| Shares used in computing loss per share: | ||||||||||||||||
| Basic | 176,621 | 90,805 | 126,738 | 86,784 | ||||||||||||
| Diluted | 176,621 | 90,805 | 126,738 | 86,784 | ||||||||||||
AvePoint, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except par value)
(Unaudited)
| September 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 260,704 | $ | 69,112 | ||||
| Short-term investments | 1,614 | 992 | ||||||
| Accounts receivable, net of allowance of $878 and $1,767 at September 30, 2021 and December 31, 2020, respectively | 54,226 | 48,250 | ||||||
| Prepaid expenses and other current assets | 13,086 | 2,343 | ||||||
| Total current assets | 329,630 | 120,697 | ||||||
| Property and equipment, net | 3,252 | 2,663 | ||||||
| Deferred contract costs | 35,267 | 31,943 | ||||||
| Long-term unbilled receivables | 6,104 | 5,499 | ||||||
| Other assets | 5,911 | 8,252 | ||||||
| Total assets | $ | 380,164 | $ | 169,054 | ||||
| Liabilities, mezzanine equity, and stockholders’ deficiency | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 2,265 | $ | 774 | ||||
| Accrued expenses and other liabilities | 25,782 | 26,245 | ||||||
| Current portion of deferred revenue | 71,251 | 65,203 | ||||||
| Total current liabilities | 99,298 | 92,222 | ||||||
| Long-term portion of deferred revenue | 6,875 | 9,485 | ||||||
| Share-based awards classified as liabilities | — | 43,502 | ||||||
| Earn-out liabilities | 17,125 | — | ||||||
| Warrant liabilities | 795 | — | ||||||
| Other non-current liabilities | 3,947 | 3,658 | ||||||
| Total liabilities | 128,040 | 148,867 | ||||||
| Commitments and contingencies (Note 10) | ||||||||
| Mezzanine equity | ||||||||
| Redeemable convertible preferred stock, $0.0001 par value; 94,695 shares authorized, 42,001 shares issued and outstanding with aggregate liquidation preference of $403,361 at December 31, 2020 | — | 183,390 | ||||||
| Redemption value of common shares | — | 25,074 | ||||||
| Share-based awards classified as mezzanine equity | — | 1,489 | ||||||
| Redeemable noncontrolling interest | 4,631 | 3,061 | ||||||
| Total mezzanine equity | 4,631 | 213,014 | ||||||
| Stockholders’ deficiency | ||||||||
| Common stock, $0.0001 par value; 1,000,000 and 243,360 shares authorized, 180,013 and 100,068 shares issued and outstanding, at September 30, 2021 and December 31, 2020, respectively | 18 | 12 | ||||||
| Additional paid-in capital | 614,569 | 105,159 | ||||||
| Treasury stock | (1,739 | ) | — | |||||
| Accumulated other comprehensive income | 1,892 | 1,791 | ||||||
| Accumulated deficit | (367,247 | ) | (299,789 | ) | ||||
| Total stockholders’ deficiency | 247,493 | (192,827 | ) | |||||
| Total liabilities, mezzanine equity, and stockholders’ deficiency | $ | 380,164 | $ | 169,054 | ||||
AvePoint, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| For the Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2021 | 2020 | |||||||
| Operating activities | ||||||||
| Net loss | $ | (25,756 | ) | $ | (4,870 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 863 | 800 | ||||||
| Foreign currency remeasurement (gain) loss | (161 | ) | 368 | |||||
| Provision for doubtful accounts | (880 | ) | 175 | |||||
| Stock-based compensation | 50,475 | 16,235 | ||||||
| Gain on disposal of property and equipment | (15 | ) | — | |||||
| Deferred income taxes | (1,008 | ) | (1,973 | ) | ||||
| Change in value of earn-out and warrant liabilities | (13,650 | ) | — | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable and long-term unbilled receivables | (7,002 | ) | (2,416 | ) | ||||
| Prepaid expenses and other current assets | (10,775 | ) | 2,836 | |||||
| Deferred contract costs and other assets | (3,269 | ) | (3,040 | ) | ||||
| Accounts payable, accrued expenses and other liabilities | 1,836 | (1,949 | ) | |||||
| Deferred revenue | 5,377 | 4,965 | ||||||
| Net cash provided by (used in) operating activities | (3,965 | ) | 11,131 | |||||
| Investing activities | ||||||||
| Maturity (purchase) of short-term investments | (638 | ) | 1,466 | |||||
| Purchase of property and equipment | (1,445 | ) | (314 | ) | ||||
| Net cash provided by (used in) investing activities | (2,083 | ) | 1,152 | |||||
| Financing activities | ||||||||
| Proceeds from recapitalization of Apex shares | 491,563 | — | ||||||
| Payments of transaction fees | (49,990 | ) | — | |||||
| Redemption of redeemable convertible preferred stock | (130,925 | ) | (33,712 | ) | ||||
| Redemption of Legacy AvePoint common stock | (106,169 | ) | — | |||||
| Payments of transaction fees by Legacy AvePoint | (2,998 | ) | — | |||||
| Purchase of treasury stock | (1,631 | ) | — | |||||
| Payment of net cash settlement for management options | (7,530 | ) | — | |||||
| Proceeds from stock option exercises | 4,555 | 54 | ||||||
| Proceeds from sale of common shares of subsidiary | 753 | — | ||||||
| Repayments of capital leases | (20 | ) | (42 | ) | ||||
| Payments of debt issuance costs | — | (300 | ) | |||||
| Proceeds from issuance of Common stock, net of issuance costs | — | 56,753 | ||||||
| Net cash provided by financing activities | 197,608 | 22,753 | ||||||
| Effect of exchange rates on cash | 32 | (329 | ) | |||||
| Net increase in cash and cash equivalents | 191,592 | 34,707 | ||||||
| Cash and cash equivalents at beginning of period | 69,112 | 12,162 | ||||||
| Cash and cash equivalents at end of period | $ | 260,704 | $ | 46,869 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash received (paid) for: | ||||||||
| Interest | $ | 80 | $ | — | ||||
| Income taxes | $ | (2,823 | ) | $ | 80 | |||
| Non-cash investing and financing activities | ||||||||
| Issuance of common shares in exchange for issuance cost | $ | — | $ | 2,408 | ||||
| Fixed assets acquired under capital leases | $ | — | $ | 28 | ||||
AvePoint, Inc. and Subsidiaries
Non-GAAP Reconciliations
(In thousands)
(Unaudited)
| For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
| September 30, | September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Non-GAAP operating income | ||||||||||||||||
| GAAP operating income (loss) | $ | (28,685 | ) | $ | (6,023 | ) | $ | (45,819 | ) | $ | (4,644 | ) | ||||
| Stock-based compensation expense | 32,676 | 13,381 | 50,475 | 16,235 | ||||||||||||
| Non-GAAP operating income | $ | 3,991 | $ | 7,358 | $ | 4,656 | $ | 11,591 | ||||||||
| Non-GAAP operating margin | 7.4 | % | 18.5 | % | 3.4 | % | 11.0 | % | ||||||||
| Non-GAAP gross profit | ||||||||||||||||
| GAAP gross profit | $ | 38,705 | $ | 29,538 | $ | 100,351 | $ | 75,715 | ||||||||
| Stock-based compensation expense | 2,428 | 214 | 2,790 | 316 | ||||||||||||
| Non-GAAP gross profit | $ | 41,133 | $ | 29,752 | $ | 103,141 | $ | 76,031 | ||||||||
| Non-GAAP gross margin | 76.3 | % | 74.8 | % | 74.7 | % | 72.1 | % | ||||||||
| Non-GAAP sales and marketing | ||||||||||||||||
| GAAP sales and marketing | $ | 25,186 | $ | 21,830 | $ | 73,488 | $ | 49,881 | ||||||||
| Stock-based compensation expense | (2,171 | ) | (7,917 | ) | (13,073 | ) | (9,227 | ) | ||||||||
| Non-GAAP sales and marketing | $ | 23,015 | $ | 13,913 | $ | 60,415 | $ | 40,654 | ||||||||
| Non-GAAP sales and marketing as a % of revenue | 42.7 | % | 35.0 | % | 43.8 | % | 38.6 | % | ||||||||
| Non-GAAP general and administrative | ||||||||||||||||
| GAAP general and administrative | $ | 22,230 | $ | 10,469 | $ | 44,186 | $ | 20,918 | ||||||||
| Stock-based compensation expense | (13,020 | ) | (5,201 | ) | (19,375 | ) | (6,496 | ) | ||||||||
| Non-GAAP general and administrative | $ | 9,210 | $ | 5,268 | $ | 24,811 | $ | 14,422 | ||||||||
| Non-GAAP general and administrative as a % of revenue | 17.1 | % | 13.2 | % | 18.0 | % | 13.7 | % | ||||||||
| Non-GAAP research and development | ||||||||||||||||
| GAAP research and development | $ | 19,648 | $ | 3,003 | $ | 27,633 | $ | 8,760 | ||||||||
| Stock-based compensation expense | (15,057 | ) | (49 | ) | (15,237 | ) | (196 | ) | ||||||||
| Non-GAAP research and development | $ | 4,591 | $ | 2,954 | $ | 12,396 | $ | 8,564 | ||||||||
| Non-GAAP research and development as a % of revenue | 8.5 | % | 7.4 | % | 9.0 | % | 8.1 | % | ||||||||
About AvePoint
Securing the Future. AvePoint is a global leader in data security, governance, and resilience, and over 21,000 customers worldwide rely on our solutions to modernize the digital workplace across Microsoft, Google, Salesforce and other collaboration environments. AvePoint’s global channel partner program includes over 3,500 managed service providers, value added resellers and systems integrators, with our solutions available in more than 100 cloud marketplaces. To learn more, visit https://www.avepoint.com.
