Second quarter SaaS revenue of $38.3 million, representing 39% year-over-year growth
Second quarter Total revenue of $64.9 million, representing 16% year-over-year growth
Total ARR of $236.2 million, representing 26% year-over-year growth, 30% adjusted for FX impact
JERSEY CITY, N.J., Aug. 09, 2023 (GLOBE NEWSWIRE) -- AvePoint ( AVPT), the most advanced platform to optimize SaaS operations and secure collaboration, today announced financial results for the second quarter ended June 30, 2023.
“Highlighted by 30% ARR growth, our second quarter results demonstrate the demand for the AvePoint Confidence Platform and the strength of our business model, as we again delivered robust topline growth and operating leverage,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “Amidst the ongoing uncertainty in the macro environment, our customers continue to depend on AvePoint’s Confidence Platform to rapidly reduce costs, improve productivity and make more informed business decisions. As a result, we are pleased to once again raise our full-year guidance for total ARR, total revenues and operating income.”
Second Quarter 2023 Financial Highlights
- Revenue: Total revenue was $64.9 million, up 16% from the second quarter of 2022. Within total revenue, SaaS revenue was $38.3 million, up 39% from the second quarter of 2022.
- Gross Profit: GAAP gross profit was $45.1 million, compared to $40.1 million for the second quarter of 2022. Non-GAAP gross profit was $46.1 million, compared to $40.9 million for the second quarter of 2022. Non-GAAP gross margin was 71.1%, compared to 73.4% for the second quarter of 2022.
- Operating Income/(Loss): GAAP operating loss was $(7.1) million, compared to $(11.7) million for the second quarter of 2022. Non-GAAP operating income was $2.9 million, compared to a non-GAAP operating loss of $(1.2) million for the second quarter of 2022.
- Cash and short-term investments: $222.9 million as of June 30, 2023.
Second Quarter 2023 Key Performance Indicators and Business Highlights
- ARR as of June 30, 2023 was $236.2 million, up 26% year-over-year. Adjusted for FX, ARR grew 30%.
- Adjusted for FX, dollar-based gross retention rate was 87%, while dollar-based net retention rate was 107%. On an as-reported basis, dollar-based gross retention rate was 85%, while dollar-based net retention rate was 104%.
- Added new functionality for public sector customers to strengthen data protection and simplify deployment with AvePoint Cloud Backup for Salesforce, a FedRAMP (moderate) authorized solution on Salesforce AppExchange.
- Continued to invest in channel innovation to boost revenue opportunities for partners and achieve profitable growth with an expanded AvePoint Certification Program, new Partner Locator and DevOps capabilities.
Financial Outlook
The Company is again raising its full year outlook for total ARR, total revenues and non-GAAP operating income.
For the third quarter of 2023, the Company expects:
- Total revenues of $67.6 million to $69.6 million, or 9% year-over-year growth at the midpoint.
- Non-GAAP operating income of $5.0 million to $6.0 million.
For the full year 2023, the Company now expects:
- Total ARR of $258.0 million to $263.0 million, or 21% year-over-year growth at the midpoint.
- Total revenues of $261.9 million to $265.9 million, or 14% year-over-year growth at the midpoint.
- Non-GAAP operating income of $15.9 million to $17.4 million.
Quarterly Conference Call
AvePoint will host a conference call today, August 09, 2023, to review its second quarter 2023 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 (844) 826-3035 for US participants and 1 (412) 317-5195 for outside the US. The passcode for the call is 5334032. 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
Collaborate with Confidence. AvePoint provides the most advanced platform to optimize SaaS operations and secure collaboration. Over 17,000 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. Founded in 2001, AvePoint is headquartered in Jersey City, New Jersey with 25 global offices. To learn more, visit www.avepoint.com.
Emerging Growth Company
AvePoint is considered an emerging growth company. Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under Section 21E of the Securities Exchange Act of 1934, as amended) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies, but any such election to opt out is irrevocable. AvePoint elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, AvePoint, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.
Because the market value of our common stock held by non-affiliates exceeded $700.0 million as of June 30, 2023, AvePoint will meet the conditions to be deemed a "large-accelerated filer" as of December 31, 2023, and will consequently no longer be an emerging growth company as of that date. AvePoint will be subject to the regulations applicable to all large-accelerated filers as of December 31, 2023.
Non-GAAP Financial Measures
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. 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.
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 Quarterly Report on Form 10-Q 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.
Investor Contact
AvePoint
Jamie Arestia
[email protected]
(551) 220-5654
Media Contact
AvePoint
Nicole Caci
[email protected]
(201) 201-8143
Condensed Consolidated Statements of Operations
For the Three and Six Months Ended June 30, 2023 and 2022
(In thousands, except per share amounts)
(Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenue: SaaS $38,279 $27,619 $73,791 $54,172 Term license and support 13,277 14,011 24,181 24,213 Services 10,066 9,848 19,813 18,773 Maintenance 3,247 4,223 6,656 8,834 Total revenue 64,869 55,701 124,441 105,992 Cost of revenue: SaaS 9,130 6,207 17,025 11,770 Term license and support 496 491 957 1,076 Services 9,958 8,636 19,309 16,986 Maintenance 212 278 395 556 Total cost of revenue 19,796 15,612 37,686 30,388 Gross profit 45,073 40,089 86,755 75,604 Operating expenses: Sales and marketing 27,691 27,371 54,542 54,577 General and administrative 15,193 16,380 29,841 31,982 Research and development 9,273 8,081 18,288 14,636 Total operating expenses 52,157 51,832 102,671 101,195 Loss from operations (7,084) (11,743) (15,916) (25,591)(Loss) gain on earn-out and warrant liabilities (4,027) 2,668 (4,136) 5,935 Interest income, net 286 20 611 34 Other income (expense), net 1,613 (693) 3,025 (870)Loss before income taxes (9,212) (9,748) (16,416) (20,492)Income tax expense (benefit) 3,313 (546) 5,291 (237)Net loss $(12,525) $(9,202) $(21,707) $(20,255)Net income attributable to and accretion of redeemable noncontrolling interest (60) (627) (75) (1,244)Net loss attributable to AvePoint, Inc. $(12,585) $(9,829) $(21,782) $(21,499)Net loss available to common shareholders $(12,585) $(9,829) $(21,782) $(21,499)Basic and diluted loss per share $(0.07) $(0.05) $(0.12) $(0.12)Basic and diluted shares used in computing loss per share 183,315 182,491 183,068 182,661
Condensed Consolidated Balance Sheets
As of June 30, 2023 and December 31, 2022
(In thousands, except par value)
(Unaudited) June 30, December 31, 2023 2022 Assets Current assets: Cash and cash equivalents $219,714 $227,188 Short-term investments 3,191 2,620 Accounts receivable, net of allowance for doubtful accounts of $1,001 and $725 as of June 30, 2023 and December 31, 2022, respectively 61,815 66,474 Prepaid expenses and other current assets 5,539 10,013 Total current assets 290,259 306,295 Property and equipment, net 4,996 5,537 Goodwill 18,979 18,904 Intangible assets, net 10,770 11,079 Operating lease right-of-use assets 15,577 15,855 Deferred contract costs 49,426 48,553 Other assets 8,563 9,310 Total assets $398,570 $415,533 Liabilities, mezzanine equity, and stockholders’ equity Current liabilities: Accounts payable $1,439 $1,519 Accrued expenses and other liabilities 41,795 47,784 Current portion of deferred revenue 96,002 93,405 Total current liabilities 139,236 142,708 Long-term operating lease liabilities 10,751 11,348 Long-term portion of deferred revenue 6,925 8,085 Earn-out shares liabilities 10,939 6,631 Other non-current liabilities 5,586 3,607 Total liabilities 173,437 172,379 Commitments and contingencies Mezzanine equity Redeemable noncontrolling interest 14,009 14,007 Total mezzanine equity 14,009 14,007 Stockholders’ equity Common stock, $0.0001 par value; 1,000,000 shares authorized, 185,723 and 185,278 shares issued and outstanding 19 19 Additional paid-in capital 659,604 665,715 Treasury stock — (21,666)Accumulated other comprehensive income 2,251 2,006 Accumulated deficit (450,750) (416,927)Total stockholders’ equity 211,124 229,147 Total liabilities, mezzanine equity, and stockholders’ equity $398,570 $415,533
Condensed Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 2023 and 2022
(In thousands)
(Unaudited) Six Months Ended June 30, 2023 2022 Operating activities Net loss $(21,707) $(20,255)Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 2,249 1,333 Operating lease right-of-use assets expense 3,496 2,649 Foreign currency remeasurement loss 222 1,386 Stock-based compensation 17,690 18,678 Deferred income taxes (161) (37)Other 329 474 Change in value of earn-out and warrant liabilities 4,136 (5,840)Changes in operating assets and liabilities: Accounts receivable 4,128 1,031 Prepaid expenses and other current assets 4,434 1,452 Deferred contract costs and other assets (429) (3,534)Accounts payable, accrued expenses, operating lease liabilities and other liabilities (7,276) (6,654)Deferred revenue 2,145 2,721 Net cash provided by (used in) operating activities 9,256 (6,596)Investing activities Maturities of investments 566 1,093 Purchases of investments (1,055) (180,041)Cash paid in business combinations and asset acquisitions, net of cash acquired — (2,222)Capitalization of internal-use software (644) (1,174)Purchase of property and equipment (789) (2,234)Other (500) — Net cash used in investing activities (2,422) (184,578)Financing activities Repurchase of common stock (17,004) (10,042)Proceeds from stock option exercises 3,240 1,719 Repayments of finance leases (20) (11)Net cash used in financing activities (13,784) (8,334)Effect of exchange rates on cash (524) (3,647)Net decrease in cash and cash equivalents (7,474) (203,155)Cash and cash equivalents at beginning of period 227,188 268,217 Cash and cash equivalents at end of period $219,714 $65,062 Supplemental disclosures of cash flow information Income taxes paid $2,938 $420 Contingent consideration in business combination $— $5,635
Non-GAAP Reconciliations
(In thousands)
(Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Non-GAAP operating income GAAP operating loss $(7,084) $(11,743) $(15,916) $(25,591)Stock-based compensation expense 9,586 10,404 17,690 18,678 Amortization of acquired intangible assets 354 148 753 199 Non-GAAP operating income $2,856 $(1,191) $2,527 $(6,714)Non-GAAP operating margin 4.4% -2.1% 2.0% -6.3% Non-GAAP gross profit GAAP gross profit $45,073 $40,089 $86,755 $75,604 Stock-based compensation expense 816 703 1,486 1,281 Amortization of acquired intangible assets 242 68 484 91 Non-GAAP gross profit $46,131 $40,860 $88,725 $76,976 Non-GAAP gross margin 71.1% 73.4% 71.3% 72.6% Non-GAAP sales and marketing GAAP sales and marketing $27,691 $27,371 $54,542 $54,577 Stock-based compensation expense (2,708) (3,396) (4,909) (5,858)Amortization of acquired intangible assets (112) (80) (269) (108)Non-GAAP sales and marketing $24,871 $23,895 $49,364 $48,611 Non-GAAP sales and marketing as a % of revenue 38.3% 42.9% 39.7% 45.9% Non-GAAP general and administrative GAAP general and administrative $15,193 $16,380 $29,841 $31,982 Stock-based compensation expense (4,905) (5,281) (9,287) (9,765)Non-GAAP general and administrative $10,288 $11,099 $20,554 $22,217 Non-GAAP general and administrative as a % of revenue 15.9% 19.9% 16.5% 21.0% Non-GAAP research and development GAAP research and development $9,273 $8,081 $18,288 $14,636 Stock-based compensation expense (1,157) (1,024) (2,008) (1,774)Non-GAAP research and development $8,116 $7,057 $16,280 $12,862 Non-GAAP research and development as a % of revenue 12.5% 12.7% 13.1% 12.1%
