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AvePoint Announces Fourth Quarter and Full Year 2021 Financial Results and $150 Million Share Repurchase Program

·16 min read
AvePoint, Inc.
AvePoint, Inc.

Full year SaaS revenue of $85.6 million, up 64% year-over-year
Total ARR of $159.2 million, up 34% year-over-year
Cloud user base exceeds 9 million

JERSEY CITY, N.J., March 17, 2022 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ: AVPT), the most advanced SaaS and data management solutions provider, today announced financial results for the fourth quarter and full year ended December 31, 2021.

“AvePoint’s fourth quarter performance was a solid finish to our first year as a public company, which was highlighted by 64% SaaS revenue growth and 34% ARR growth, with an additional 36% growth in customers with ARR above 100k,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “As enterprises continue their long-term shift to SaaS based platforms, and we see increased application usage in 2022 and beyond, we believe we are well positioned to capitalize on this massive opportunity, which will require the industry leading data management and collaboration security solutions that AvePoint offers. I’m incredibly thankful to our team for their continued focus on expanding our unique product offerings, enhancing our channel business, and delivering exceptional service to our existing multi-cloud customers."

Fourth Quarter 2021 Financial Highlights

  • Revenue: Total revenue for the fourth quarter of 2021 was $53.8 million, up 17% from the fourth quarter of 2020. Within total revenue, SaaS revenue was $24.3 million, up 52% from the fourth quarter of 2020, and term license and support revenue was $13.7 million, a decline of 13% due to an adjustment in the timing of revenue recognition on term license contracts, which resulted in the deferral of an additional $4.4 million of revenue into future periods. Excluding the effects of this adjustment, total revenue growth would have been 26% and term license and support growth would have been 15%.

  • Gross Profit: Gross profit for the fourth quarter of 2021 was $38.9 million, compared to $35.5 million for the fourth quarter of 2020. Gross margin for the fourth quarter of 2021 was 72.2%, compared to 77.0% for the fourth quarter of 2020. Non-GAAP gross profit for the fourth quarter of 2021 was $39.6 million, compared to $35.8 million for the fourth quarter of 2020. Non-GAAP gross margin was 73.5% for the fourth quarter of 2021, compared to 77.6% for the fourth quarter of 2020.

  • Operating Income/(Loss): Operating loss for the fourth quarter of 2021 was $(7.7) million, compared to $(10.8) million for the fourth quarter of 2020. Non-GAAP operating income for the fourth quarter of 2021 was $1.4 million, compared to $6.7 million for the fourth quarter of 2020.

Full Year 2021 Financial Highlights

  • Revenue: Total revenue for the full year 2021 was $191.9 million, up 27% from 2020. Within total revenue, SaaS revenue was $85.6 million, up 64% from 2020, and term license and support revenue was $51.0 million, up 31% from 2020. Adjusting for the change in the timing of revenue recognition of $4.4 million, total revenue would have been up 30% and term license and support revenue would have increased 42% from 2020.

  • Gross Profit: Gross profit for the full year of 2021 was $139.2 million, compared to $111.2 million for 2020. Gross margin for the full year 2021 was 72.6%, compared to 73.4% for 2020. Non-GAAP gross profit for the full year 2021 was $142.7 million, compared to $111.8 million for 2020. Non-GAAP gross margin was 74.4% for the full year 2021, compared to 73.8% for 2020.

  • Operating Income/(Loss): Operating loss for the full year 2021 was $(53.5) million, compared to $(15.4) million for 2020. Non-GAAP operating income for the full year 2021 was $6.0 million, compared to $18.3 million for 2020.

  • Free cash flow of $3.1 million for the full year 2021 and $271 million of cash and short-term investments as of the end of the year.

Fourth Quarter Key Highlights

  • Grew total ARR 34% year-over-year to $159.2 million.

  • Increased dollar-based net retention rate to 110%, up 3 percentage points year-over-year.

  • Eclipsed 2,800 total channel partners in 2021, of which, roughly three quarters are managed service providers (MSPs). AvePoint’s channel presence has further expanded to include over 100 cloud marketplaces and distributors across 7 continents.

  • Expanded cloud user base to 9.4 million, up 34% from 7.0 million as of December 31, 2020.

Share Repurchase Program

AvePoint’s Board of Directors has authorized a new share repurchase program for AvePoint to buy back its outstanding common shares. Under the share repurchase program, AvePoint has the authority to buy up to a maximum of $150 million worth of shares, over the next three years, via acquisitions in the open market or privately negotiated transactions. AvePoint is not obligated to make any purchases and the program may be suspended or discontinued at any time.

Financial Outlook

AvePoint is providing guidance for its first quarter and full year 2022 as follows:

  • First Quarter 2022 Guidance: Total revenue is expected to be in the range of $48.0 million to $49.0 million or approximately 25% year-over-year growth. Non-GAAP operating loss is expected to be in the range of $(6.0) to $(6.5) million.

  • Full Year 2022 Guidance: Total revenue is expected to be in the range of $236.0 million to $242.0 million or approximately 25% year-over-year growth. Non-GAAP operating income/loss is expected to be in the range of a loss of $(3.5) million to income of $1.0 million. ARR is expected to be in the range of $212 million to $216 million or approximately 34% year-over-year growth.

Quarterly Conference Call

AvePoint will host a conference call today, March 17, 2022, to review its fourth quarter and full year 2021 financial results and to discuss its financial outlook. The call is scheduled to begin at 4:30pm ET. 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.

About AvePoint

Collaborate with confidence. AvePoint provides the most advanced platform for SaaS and data management to optimize SaaS operations and secure collaboration. More than 9 million cloud users rely on our solutions. Our SaaS solutions are also available to managed service providers via more than 100 cloud marketplaces, so they can better support and manage their small and mid-sized business customers. Founded in 2001, AvePoint is a five-time Global Microsoft Partner of the Year and headquartered in Jersey City, New Jersey. For more information, visit www.avepoint.com.

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. In order for AvePoint’s investors to be better able to compare its current results with those of previous periods, 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. AvePoint believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of its historical financial 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.

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:
ICR for AvePoint, Inc.
Marc P. Griffin
ir@avepoint.com
646-277-1290

Media Contact:
AvePoint, Inc.
Nicole Caci
pr@avepoint.com
201-201-8143

AvePoint, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

For the Three Months
Ended

For the Year Ended

December 31,

December 31,

2021

2020

2021

2020

Revenue:

SaaS

$

24,325

$

16,040

$

85,580

$

52,074

Term license and support

13,678

15,677

50,970

38,949

Services

10,558

7,967

31,919

34,140

Maintenance

4,862

5,625

21,022

23,462

Perpetual license

415

813

2,418

2,908

Total revenue

53,838

46,122

191,909

151,533

Cost of revenue:

SaaS

5,169

3,194

19,039

11,050

Term license and support

236

673

950

1,930

Services

9,198

6,484

30,726

26,089

Maintenance

341

243

1,949

1,221

Total cost of revenue

14,944

10,594

52,664

40,290

Gross profit

38,894

35,528

139,245

111,243

Operating expenses:

Sales and marketing

27,024

26,664

100,512

76,545

General and administrative

15,035

15,954

59,221

36,872

Research and development

4,132

3,444

31,765

12,204

Depreciation and amortization

375

259

1,238

1,059

Total operating expenses

46,566

46,321

192,736

126,680

Loss from operations

(7,672

)

(10,793

)

(53,491

)

(15,437

)

Gain on earn-out and warrant liabilities

7,583

21,233

Interest income, net

22

15

102

41

Other expense, net

(332

)

(187

)

(632

)

(511

)

Loss before income taxes

(399

)

(10,965

)

(32,788

)

(15,907

)

Income tax expense

7,090

1,134

457

1,062

Net loss

$

(7,489

)

$

(12,099

)

$

(33,245

)

$

(16,969

)

Net loss attributable to and accretion of redeemable noncontrolling interest

(561

)

(27

)

(1,974

)

(27

)

Net loss attributable to AvePoint, Inc.

$

(8,050

)

$

(12,126

)

$

(35,219

)

$

(16,996

)

Deemed dividends on preferred stock

(13,033

)

(32,928

)

(34,446

)

Net loss available to common shareholders

$

(8,050

)

$

(25,159

)

$

(68,147

)

$

(51,442

)

Loss per share:

Basic

$

(0.04

)

$

(0.26

)

$

(0.48

)

$

(0.57

)

Diluted

$

(0.04

)

$

(0.26

)

$

(0.48

)

$

(0.57

)

Shares used in computing loss per share:

Basic

182,133

98,107

141,596

89,638

Diluted

182,133

98,107

141,596

89,638


AvePoint, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except par value)
(Unaudited)

December 31,

December 31,

2021

2020

Assets

Current assets:

Cash and cash equivalents

$

268,217

$

69,112

Short-term investments

2,411

992

Accounts receivable, net of allowance of $838 and $1,767 at December 31, 2021 and
December 31, 2020, respectively

59,223

48,250

Prepaid expenses and other current assets

6,573

2,343

Total current assets

336,424

120,697

Property and equipment, net

3,922

2,663

Deferred contract costs

38,926

31,943

Long-term unbilled receivables

8,049

5,499

Other assets

7,354

8,252

Total assets

$

394,675

$

169,054

Liabilities, mezzanine equity, and stockholders’ deficiency

Current liabilities:

Accounts payable

$

1,824

$

774

Accrued expenses and other liabilities

35,062

26,245

Current portion of deferred revenue

79,714

65,203

Total current liabilities

116,600

92,222

Long-term portion of deferred revenue

8,555

9,485

Share-based awards classified as liabilities

43,502

Earn-out shares liabilities

10,012

Other non-current liabilities

3,943

3,658

Total liabilities

139,110

148,867

Commitments and contingencies (Note 11)

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

5,210

3,061

Total mezzanine equity

5,210

213,014

Stockholders’ deficiency

Common stock, $0.0001 par value; 1,000,000 and 243,360 shares authorized,
181,822 and 100,068 shares issued and outstanding, at December 31, 2021 and
December 31, 2020, respectively

18

12

Additional paid-in capital

625,056

105,159

Treasury stock

(1,739

)

Accumulated other comprehensive income

2,317

1,791

Accumulated deficit

(375,297

)

(299,789

)

Total stockholders’ equity (deficiency)

250,355

(192,827

)

Total liabilities, mezzanine equity, and stockholders’ equity (deficiency)

$

394,675

$

169,054


AvePoint, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

For the Year Ended

December 31,

2021

2020

Operating activities

Net loss

$

(33,245

)

$

(16,969

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation and amortization

1,238

1,059

Foreign currency remeasurement loss (gain)

1,308

(378

)

Provision for doubtful accounts

(740

)

690

Stock-based compensation

59,508

33,767

Loss (gain) on disposal of property and equipment

(15

)

80

Deferred income taxes

(1,694

)

(433

)

Change in value of earn-out and warrant liabilities

(21,233

)

Changes in operating assets and liabilities:

Accounts receivable and long-term unbilled receivables

(14,949

)

(8,946

)

Prepaid expenses and other current assets

(4,026

)

1,204

Deferred contract costs and other assets

(7,606

)

(3,236

)

Accounts payable, accrued expenses and other liabilities

10,257

971

Deferred revenue

16,742

11,311

Net cash provided by operating activities

5,545

19,120

Investing activities

Maturity (purchase) of short-term investments

(1,431

)

2,391

Purchase of property and equipment

(2,461

)

(1,023

)

Net cash provided by (used in) investing activities

(3,892

)

1,368

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

)

(2,089

)

Purchase of treasury stock

(1,628

)

Payment of net cash settlement for management options

(7,530

)

Proceeds from stock option exercises

5,566

612

Proceeds from sale of common shares of subsidiary

753

7,505

Repayments of capital leases

(25

)

(49

)

Payments of debt issuance costs

(300

)

Proceeds from issuance of Common stock, net of issuance costs

58,669

Collection of promissory note

284

Collection of non-recourse promissory note

4,639

Net cash provided by financing activities

198,617

35,559

Effect of exchange rates on cash

(1,165

)

903

Net increase in cash and cash equivalents

199,105

56,950

Cash and cash equivalents at beginning of period

69,112

12,162

Cash and cash equivalents at end of period

$

268,217

$

69,112

Supplemental disclosures of cash flow information

Cash received (paid) for:

Interest

$

102

$

Income taxes

$

(3,430

)

$

1,068

Non-cash investing and financing activities

Issuance of common shares in exchange for issuance cost

$

$

2,408

Property and equipment acquired under capital leases

$

$

29


AvePoint, Inc. and Subsidiaries
Non-GAAP Reconciliations
(In thousands)
(Unaudited)

For the Three Months Ended

For the Year Ended

December 31,

December 31,

2021

2020

2021

2020

Non-GAAP operating income

GAAP operating income

$

(7,672

)

$

(10,793

)

$

(53,491

)

$

(15,437

)

Stock-based compensation expense

9,033

17,532

59,508

33,767

Non-GAAP operating income

$

1,361

$

6,739

$

6,017

$

18,330

Non-GAAP operating margin

2.5

%

14.6

%

3.1

%

12.1

%

Non-GAAP gross profit

GAAP gross profit

$

38,894

$

35,528

$

139,245

$

111,243

Stock-based compensation expense

687

276

3,477

592

Non-GAAP gross profit

$

39,581

$

35,804

$

142,722

$

111,835

Non-GAAP gross margin

73.5

%

77.6

%

74.4

%

73.8

%

Non-GAAP sales and marketing

GAAP sales and marketing

$

27,024

$

26,664

$

100,512

$

76,545

Stock-based compensation expense

(2,833

)

(10,746

)

(15,906

)

(19,973

)

Non-GAAP sales and marketing

$

24,191

$

15,918

$

84,606

$

56,572

Non-GAAP sales and marketing as a % of revenue

44.9

%

34.5

%

44.1

%

37.3

%

Non-GAAP general and administrative

GAAP general and administrative

$

15,035

$

15,954

$

59,221

$

36,872

Stock-based compensation expense

(4,688

)

(6,420

)

(24,063

)

(12,916

)

Non-GAAP general and administrative

$

10,347

$

9,534

$

35,158

$

23,956

Non-GAAP general and administrative as a % of revenue

19.2

%

20.7

%

18.3

%

15.8

%

Non-GAAP research and development

GAAP research and development

$

4,132

$

3,444

$

31,765

$

12,204

Stock-based compensation expense

(825

)

(90

)

(16,062

)

(286

)

Non-GAAP research and development

$

3,307

$

3,354

$

15,703

$

11,918

Non-GAAP research and development as a % of revenue

6.1

%

7.3

%

8.2

%

7.9

%