AvePoint Announces Third Quarter 2024 Financial Results

Third quarter SaaS revenue of $60.9 million, representing 45% year-over-year growth
Third quarter Total revenue of $88.8 million, representing 22% year-over-year growth
Total ARR of $308.9 million, representing 23% year-over-year growth

AvePoint (NASDAQ: AVPT), the global leader in data security, governance, and resilience, today announced financial results for the third quarter ended September 30, 2024. 

“Our strong third quarter results built on the momentum from the first half of the year, as we meaningfully exceeded our guidance for the seventh consecutive quarter, while improving on a number of key financial and operational metrics,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “Companies around the world increasingly recognize the importance of high-quality data and the criticality of a robust data management strategy and are prioritizing platform solutions that deliver automated value across multi-cloud environments. Our unmatched ability to meet this demand with the AvePoint Confidence Platform positions us well to capitalize on the tremendous market opportunity ahead of us and provides us the confidence to again raise our full-year expectations. We are excited for a strong close to 2024.”

Third Quarter 2024 Financial Highlights

  • Revenue: Total revenue was $88.8 million, up 22% from the third quarter of 2023. Within total revenue, SaaS revenue was $60.9 million, up 45% from the third quarter of 2023.
  • Gross Profit: GAAP gross profit was $67.6 million, compared to $52.6 million for the third quarter of 2023. Non-GAAP gross profit was $68.4 million, compared to $53.7 million for the third quarter of 2023. Non-GAAP gross margin was 77.0%, compared to 73.7% for the third quarter of 2023.
  • Operating Income/(Loss): GAAP operating income was $7.7 million, compared to a GAAP operating loss of $(0.3) million for the third quarter of 2023. Non-GAAP operating income was $17.8 million, compared to $9.3 million for the third quarter of 2023. Non-GAAP operating margin was 20.1%, compared to 12.8% for the third quarter of 2023.
  • Cash, cash equivalents and short-term investments: $250.0 million as of September 30, 2024.
  • Cash from operations: for the nine months ended September 30, 2024, the Company generated $56.1 million of cash from operations, compared to $13.3 million generated in the prior year period.

Third Quarter 2024 Key Performance Indicators and Recent Business Highlights

  • ARR as of September 30, 2024 was $308.9 million, up 23% year-over-year.
  • Adjusted for FX, dollar-based gross retention rate was 88%, while dollar-based net retention rate was 110%. On a reported basis, dollar-based gross retention rate was 87%, while dollar-based net retention rate was 109%.
  • Announced the general availability of AvePoint Cloud Backup Express, designed to use Microsoft 365 Backup Storage for rapid and more efficient data protection, advanced in-product integrations, comprehensive security and compliance, and a multi-cloud security framework.

Financial Outlook
The company is again raising its full year outlook for total ARR, total revenues and non-GAAP operating income.

For the fourth quarter of 2024, the Company expects:

  • Total revenues of $86.5 million to $88.5 million, or year-over-year growth of 17% at the midpoint.
  • Non-GAAP operating income of $12.6 million to $13.6 million.

For the full year 2024, the Company now expects:

  • Total ARR of $324.9 million to $326.9 million, or year-over-year growth of 23% at the midpoint.
  • Total revenues of $327.8 million to $329.8 million, or year-over-year growth of 21% at the midpoint.
  • Non-GAAP operating income of $45.8 million to $46.8 million, or a non-GAAP operating margin of 14% at the midpoint.

We have not reconciled non-GAAP operating income or operating margin guidance to GAAP operating income or operating margin because we do not provide guidance on these GAAP results, and because certain items that impact these measures, including stock-based compensation expense, are uncertain or out of our control, or cannot be reasonably predicted, without unreasonable effort.

Quarterly Conference Call

AvePoint will host a conference call today, November 7, 2024, to review its third quarter 2024 financial results and to discuss its financial outlook. The call is scheduled to begin at 4:30pm ET. You may access the call and register with a live operator by dialing 1 (833) 816-1428 for US participants and 1 (412) 317-0520 for outside the US. The passcode for the call is 7094823. Investors can also join by 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.

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 www.avepoint.com.

Non-GAAP Financial Measures and Other Key Metrics

To supplement AvePoint’s consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (including percentage of revenue figures), non-GAAP operating income and non-GAAP operating margin, and key metrics include annual recurring revenue, dollar-based gross retention rate, and dollar-based net retention rate. The company has included a reconciliation of GAAP to non-GAAP financial measures at the end of this press release. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation expense and the amortization of acquired intangible assets. The company believes the presentation of its non-GAAP financial measures provides a better representation as to its overall operating performance. The presentation of AvePoint’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for its financial results prepared in accordance with GAAP, and AvePoint’s non-GAAP measures may be different from non-GAAP measures used by other companies.

Annual Recurring Revenue. This metric is calculated as the annualized sum of contractually obligated Annual Contract Value (“ACV”) from SaaS, term license and support, and maintenance revenue sources from all active customers at the end of a reporting period. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or replace these items. ARR is not a forecast of future revenue, and the active contracts used in calculating ARR may or may not be extended or renewed by our customers. The company believes this metric further enables measurement of its business performance, is an important metric for financial forecasting and better enables strategic decision making. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.

Dollar-based Gross Retention Rate. This metric is calculated by starting with the ARR from all active customers as of 12 months prior to such period end, or Prior Period ARR. The company then calculates ARR from these same customers as of the current period end, or Current Period ARR. Current Period ARR includes net contraction or attrition over the last 12 months but excludes ARR from new customers in the current period. The company then divides the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based gross retention rate. The company uses this metric as a measure of its ability to retain existing customers, and believes it is useful to investors for the same reason. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.

Dollar-based Net Retention Rate. This metric is calculated by starting with the ARR from all active customers as of 12 months prior to such period end, or Prior Period ARR. The company then calculates ARR from these same customers as of the current period end, or Current Period ARR. Current Period ARR includes net expansion over the last 12 months but excludes ARR from new customers in the current period. The company then divides the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based net retention rate. The company uses this metric as a measure of its ability to expand business with existing customers, and believes it is useful to investors for the same reason. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure.

Disclosure Information

AvePoint uses the https://ir.avepoint.com/ website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and other federal securities laws including statements regarding the future performance of and market opportunities for AvePoint. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: changes in the competitive and regulated industries in which AvePoint operates, variations in operating performance across competitors, changes in laws and regulations affecting AvePoint’s business and changes in AvePoint’s ability to implement business plans, forecasts, and ability to identify and realize additional opportunities, and the risk of downturns in the market and the technology industry. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of AvePoint’s most recent Annual Report on Form 10-K and its registration statement on Form S-1 and related prospectus and prospectus supplements filed with the SEC. Copies of these and other documents filed by AvePoint from time to time are available on the SEC's website, www.sec.gov. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and AvePoint does not assume any obligation and does not intend to update or revise these forward-looking statements after the date of this release, whether as a result of new information, future events, or otherwise, except as required by law. AvePoint does not give any assurance that it will achieve its expectations. Unless the context otherwise indicates, references in this press release to the terms “AvePoint”, “the Company”, “we”, “our” and “us” refer to AvePoint, Inc. and its subsidiaries.

Investor Contact
AvePoint
Jamie Arestia
ir@avepoint.com
(551) 220-5654

Media Contact
AvePoint
Nicole Caci
pr@avepoint.com 
(201) 201-8143


AvePoint, Inc.
Condensed Consolidated Statements of Income
(In thousands, except per share amounts)
(Unaudited)
 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2024     2023     2024     2023  
Revenue:                                
SaaS   $ 60,866     $ 41,910     $ 165,820     $ 115,701  
Term license and support     14,140       16,293       35,128       40,474  
Services     10,810       11,194       31,808       31,007  
Maintenance     2,988       3,363       8,543       10,019  
Total revenue     88,804       72,760       241,299       197,201  
Cost of revenue:                                
SaaS     10,624       9,561       30,139       26,586  
Term license and support     373       484       1,202       1,441  
Services     10,057       9,922       28,777       29,231  
Maintenance     167       189       487       584  
Total cost of revenue     21,221       20,156       60,605       57,842  
Gross profit     67,583       52,604       180,694       139,359  
Operating expenses:                                
Sales and marketing     30,050       28,436       90,459       82,978  
General and administrative     17,043       15,838       52,095       45,679  
Research and development     12,838       8,643       35,827       26,931  
Total operating expenses     59,931       52,917       178,381       155,588  
Income (loss) from operations     7,652       (313 )     2,313       (16,229 )
Other expense, net     (4,541 )     (1,076 )     (8,107 )     (1,576 )
Income (loss) before income taxes     3,111       (1,389 )     (5,794 )     (17,805 )
Income tax expense     183       2,841       6,170       8,132  
Net income (loss)   $ 2,928     $ (4,230 )   $ (11,964 )   $ (25,937 )
Net income (loss) attributable to noncontrolling interest     308       (18 )     (59 )     57  
Net income (loss) available to common shareholders   $ 2,620     $ (4,212 )   $ (11,905 )   $ (25,994 )
Net income (loss) per share:                                
Basic   $ 0.01     $ (0.02 )   $ (0.07 )   $ (0.14 )
Diluted   $ 0.01     $ (0.02 )   $ (0.07 )   $ (0.14 )
Weighted average shares outstanding:                                
Basic     183,946       181,769       182,753       182,630  
Diluted     203,859       181,769       182,753       182,630  


AvePoint, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except par value)
(Unaudited)
 
    September 30,     December 31,  
    2024     2023  
Assets                
Current assets:                
Cash and cash equivalents   $ 249,803     $ 223,162  
Short-term investments     173       3,721  
Accounts receivable, net     79,986       85,877  
Prepaid expenses and other current assets     11,083       12,824  
Total current assets     341,045       325,584  
Property and equipment, net     5,248       5,118  
Goodwill     19,003       19,156  
Intangible assets, net     9,709       10,546  
Operating lease right-of-use assets     14,259       13,908  
Deferred contract costs     55,371       54,675  
Other assets     18,320       13,595  
Total assets   $ 462,955     $ 442,582  
Liabilities, mezzanine equity, and stockholders’ equity                
Current liabilities:                
Accounts payable   $ 3,898     $ 1,384  
Accrued expenses and other current liabilities     57,459       53,766  
Current portion of deferred revenue     133,338       121,515  
Total current liabilities     194,695       176,665  
Long-term operating lease liabilities     8,986       9,383  
Long-term portion of deferred revenue     8,929       7,741  
Earn-out shares liabilities     29,941       18,346  
Other liabilities     4,683       5,603  
Total liabilities     247,234       217,738  
Commitments and contingencies                
Mezzanine equity                
Redeemable noncontrolling interest           6,038  
Total mezzanine equity           6,038  
Stockholders’ equity                
Common stock, $0.0001 par value; 1,000,000 shares authorized, 187,431 and 184,652 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively     19       18  
Additional paid-in capital     693,819       667,881  
Accumulated other comprehensive income     4,431       3,196  
Accumulated deficit     (484,451 )     (460,496 )
Noncontrolling interest     1,903       8,207  
Total stockholders’ equity     215,721       218,806  
Total liabilities, mezzanine equity, and stockholders’ equity   $ 462,955     $ 442,582  


AvePoint, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
    Nine Months Ended  
    September 30,  
    2024     2023  
Operating activities                
Net loss   $ (11,964 )   $ (25,937 )
Adjustments to reconcile net loss to net cash provided by operating activities:                
Depreciation and amortization     4,020       3,439  
Operating lease right-of-use assets expense     4,975       5,294  
Foreign currency remeasurement loss     1,212       763  
Stock-based compensation     29,807       26,975  
Deferred income taxes     (235 )     (240 )
Other     (4 )     725  
Change in value of earn-out and warrant liabilities     11,717       6,921  
Changes in operating assets and liabilities:                
Accounts receivable     6,873       (4,633 )
Prepaid expenses and other current assets     1,767       1,663  
Deferred contract costs and other assets     (3,280 )     (5,637 )
Accounts payable, accrued expenses, operating lease liabilities and other liabilities     (598 )     (5,331 )
Deferred revenue     11,844       9,282  
Net cash provided by operating activities     56,134       13,284  
Investing activities                
Maturities of investments     5,361       1,292  
Purchases of investments     (1,850 )     (2,050 )
Capitalization of internal-use software     (947 )     (988 )
Purchase of property and equipment     (2,303 )     (1,478 )
Issuance of notes receivables     (1,500 )     (1,000 )
Other investing activities     (130 )      
Net cash used in investing activities     (1,369 )     (4,224 )
Financing activities                
Repurchase of common stock     (21,704 )     (33,644 )
Proceeds from stock option exercises     3,613       3,865  
Redemption of redeemable noncontrolling interest     (6,130 )      
Purchase of public warrants     (3,991 )      
Repayments of finance leases     (6 )     (30 )
Net cash used in financing activities     (28,218 )     (29,809 )
Effect of exchange rates on cash     94       (653 )
Net increase (decrease) in cash and cash equivalents     26,641       (21,402 )
Cash and cash equivalents at beginning of period     223,162       227,188  
Cash and cash equivalents at end of period   $ 249,803     $ 205,786  
Supplemental disclosures of cash flow information                
Income taxes paid   $ 5,552     $ 5,794  


AvePoint, Inc.
Non-GAAP Reconciliations
(In thousands)
(Unaudited)
 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2024     2023     2024     2023  
Non-GAAP operating income                                
GAAP operating income (loss)   $ 7,652     $ (313 )   $ 2,313     $ (16,229 )
Stock-based compensation expense     9,811       9,285       29,807       26,975  
Amortization of acquired intangible assets     362       353       1,064       1,106  
Non-GAAP operating income   $ 17,825     $ 9,325     $ 33,184     $ 11,852  
Non-GAAP operating margin     20.1 %     12.8 %     13.8 %     6.0 %
                                 
                                 
                                 
Non-GAAP gross profit                                
GAAP gross profit   $ 67,583     $ 52,604     $ 180,694     $ 139,359  
Stock-based compensation expense     530       806       1,516       2,292  
Amortization of acquired intangible assets     242       241       722       725  
Non-GAAP gross profit   $ 68,355     $ 53,651     $ 182,932     $ 142,376  
Non-GAAP gross margin     77.0 %     73.7 %     75.8 %     72.2 %
                                 
Non-GAAP sales and marketing                                
GAAP sales and marketing   $ 30,050     $ 28,436     $ 90,459     $ 82,978  
Stock-based compensation expense     (2,186 )     (2,358 )     (6,684 )     (7,267 )
Amortization of acquired intangible assets     (120 )     (112 )     (342 )     (381 )
Non-GAAP sales and marketing   $ 27,744     $ 25,966     $ 83,433     $ 75,330  
Non-GAAP sales and marketing as a % of revenue     31.2 %     35.7 %     34.6 %     38.2 %
                                 
Non-GAAP general and administrative                                
GAAP general and administrative   $ 17,043     $ 15,838     $ 52,095     $ 45,679  
Stock-based compensation expense     (4,925 )     (5,264 )     (15,451 )     (14,551 )
Non-GAAP general and administrative   $ 12,118     $ 10,574     $ 36,644     $ 31,128  
Non-GAAP general and administrative as a % of revenue     13.6 %     14.5 %     15.2 %     15.8 %
                                 
Non-GAAP research and development                                
GAAP research and development   $ 12,838     $ 8,643     $ 35,827     $ 26,931  
Stock-based compensation expense     (2,170 )     (857 )     (6,156 )     (2,865 )
Non-GAAP research and development   $ 10,668     $ 7,786     $ 29,671     $ 24,066  
Non-GAAP research and development as a % of revenue     12.0 %     10.7 %     12.3 %     12.2 %


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Media Contact

Nicole Caci

pr@avepoint.com

(201) 201-8143

Investor Contact

Jamie Arestia

ir@avepoint.com

(551) 220-5654