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AvePoint Announces Third Quarter 2024 Financial Results
Source: Nasdaq GlobeNewswire / 07 Nov 2024 16:05:01 America/New_York
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 growthJERSEY CITY, N.J., Nov. 07, 2024 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ: AVPT), the global leader in robust data management and data governance, 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 management and data governance, 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) 220-5654Media Contact
AvePoint
Nicole Caci
pr@avepoint.com
(201) 201-8143AvePoint, 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 %
- 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.