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AvePoint Announces Second Quarter 2021 Financial Results

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JERSEY CITY, N.J., Aug. 10, 2021 (GLOBE NEWSWIRE) -- AvePoint, Inc. (NASDAQ: AVPT), the largest data management solutions provider for Microsoft 365, today announced financial results for the second quarter ended June 30, 2021.

“In the second quarter we delivered record results, with revenue of $45.3 million, up 38% year-over-year, driven by the continued growth of Microsoft Teams and strong adoption of our collaboration security technologies,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder of AvePoint. “With the investments we are making across our go-to-market organization, including sales, customer success and channel, we aim to increase our market share of the Microsoft 365 user base, boost our customer retention rate and continue our strong growth in the SMB market via our channel partners.”

Second Quarter 2021 Financial Results

  • Total Revenue of $45.3 million, up 38% year-over-year

  • Total ARR1 of $139.0 million as of June 30, 2021, up 33% year-over-year

  • SaaS Revenue of $20.6 million, up 76% year-over-year

  • GAAP Operating Loss of $11.2 million; GAAP Operating Margin of (24.7%)

  • Non-GAAP Operating Income of $3.3 million; Non-GAAP Operating Margin of 7.3%

  • GAAP net loss attributable to AvePoint, Inc. of $11.6 million or $0.98 per share

  • Cash and Cash Equivalents of approximately $66.3 million as of June 30, 2021

  • Net proceeds of $204.5 million from business combination which closed on July 1st, subsequent to second quarter end

Second Quarter 2021 Key Highlights

  • The AvePoint SaaS cloud platform, AvePoint Online Services, achieved FedRAMP Authorization signifying its SaaS solutions are approved for use across all United States federal agencies at the moderate impact level. The platform was also assessed against the Information Security Registered Assessors Program (IRAP), which ensures compliance with information security and requirements as mandated by the Australian Government

  • AvePoint released its Salesforce Cloud Backup for managed service providers (MSPs) across 36 countries and via 58 distributor app marketplaces

  • APAC’s leading distributor of cloud solutions and services, rhipe, now offers AvePoint solutions to its managed service provider (MSP) customers

  • Continued expansion in user base with more than 8 million cloud users

Financial Outlook

For the third quarter of 2021, AvePoint currently expects:

  • Total revenues between $51.5 and $53.5 million

  • Non-GAAP operating income between $1.7 and $3.2 million

For the full year ending December 31, 2021, AvePoint currently expects:

  • Total revenues between $192.0 and $196.0 million

  • Non-GAAP operating income between $4.7 and $7.7 million

Conference Call
AvePoint will host a conference call today on August 10, 2021 to review its second quarter 2021 financial results and to discuss its financial outlook. The call is scheduled to begin at 4:30pm 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.

About AvePoint
Collaborate with confidence. AvePoint is the largest Microsoft 365 data management solutions provider, offering a full suite of SaaS solutions to migrate, manage and protect data. More than 8 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 https://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 federal securities laws including statements 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 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 the registration statement on Form S-4 and other documents filed by AvePoint from time to time with the SEC. 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, whether as a result of new information, future events, or otherwise. AvePoint does not gives any assurance that it will achieve its expectations.

Investor Contact

AvePoint, Inc., Sapphire Investor Relations, LLC.
Erica Mannion
ir@avepoint.com
617-542-6180

Media Contact

AvePoint, Inc.
Nicole Caci
nicole.caci@avepoint.com
201-201-8143



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

For the Three Months Ended

For the Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

Revenue:

SaaS

$

20,586

$

11,699

$

38,845

$

21,942

Term license and support

11,088

7,357

19,815

15,101

Services

7,302

7,724

13,218

15,303

Maintenance and OEM

5,458

5,776

10,867

11,781

Perpetual license

910

400

1,399

1,490

Total revenue

45,344

32,956

84,144

65,617

Cost of revenue:

SaaS

4,564

2,543

9,004

5,057

Term license and support

230

348

503

820

Services

6,508

5,877

12,093

12,889

Maintenance and OEM

418

305

898

674

Total cost of revenue

11,720

9,073

22,498

19,440

Gross profit

33,624

23,883

61,646

46,177

Operating expenses:

Sales and marketing

29,001

14,010

48,302

28,051

General and administrative

11,664

5,291

21,956

10,449

Research and development

3,883

2,863

7,985

5,757

Depreciation and amortization

279

268

537

541

Total operating expenses

44,827

22,432

78,780

44,798

Income (loss) from operations

(11,203

)

1,451

(17,134

)

1,379

Interest income, net

11

5

24

9

Other income (expense), net

62

439

(1

)

(389

)

Income (loss) before income taxes

(11,130

)

1,895

(17,111

)

999

Income tax benefit

(73

)

(6,149

)

(1,112

)

(6,316

)

Net income (loss)

$

(11,057

)

$

8,044

$

(15,999

)

$

7,315

Net income attributable to redeemable noncontrolling interest

(499

)

(896

)

Net income (loss) attributable to AvePoint Operations, Inc.

$

(11,556

)

$

8,044

$

(16,895

)

$

7,315

Deemed dividends on preferred stock

(24,742

)

(8,063

)

(33,536

)

(15,798

)

Net loss available to common shareholders

$

(36,298

)

$

(19

)

$

(50,431

)

$

(8,483

)

Net loss per share of common stock, basic and diluted

$

(3.09

)

$

(0.00

)

$

(4.32

)

$

(0.87

)

Weighted average of shares used in computing net loss per share of common stock, basic and diluted

11,732

9,793

11,663

9,750



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

June 30,

December 31,

2021

2020

Assets

Current assets

Cash and cash equivalents

$

66,338

$

69,112

Short-term investments

1,408

992

Accounts receivable, net of allowance of $1,030 and $1,767 at June 30, 2021 and December 31, 2020, respectively

44,753

48,250

Prepaid expenses and other current assets

4,319

2,343

Total current assets

116,818

120,697

Property and equipment, net

3,039

2,663

Deferred contract costs

33,781

31,943

Long-term unbilled receivables

6,440

5,499

Other assets

12,238

8,252

Total assets

$

172,316

$

169,054

Liabilities, mezzanine equity, and stockholders’ deficiency

Current liabilities:

Accounts payable

$

520

$

774

Accrued expenses and other liabilities

22,115

26,245

Current portion of deferred revenue

68,974

65,203

Total current liabilities

91,609

92,222

Long-term portion of deferred revenue

7,596

9,485

Share-based awards classified as liabilities

50,220

43,502

Other non-current liabilities

3,587

3,658

Total liabilities

153,012

148,867

Commitments and contingencies (Note 10)

Mezzanine equity

Redeemable convertible preferred stock, $0.0001 par value; 10,895,226 shares authorized, 4,832,409 and 4,832,409 shares issued and outstanding with aggregate liquidation preferences of $508,273 and $403,361 at June 30, 2021 and December 31, 2020, respectively

216,926

183,390

Redemption value of common shares

39,757

25,074

Share-based awards

1,695

1,489

Redeemable noncontrolling interest

4,143

3,061

Total mezzanine equity

262,521

213,014

Stockholders’ deficiency:

Common stock, $0.0001 par value; 28,000,000 and 28,000,000 shares authorized, 11,946,412 and 11,513,451 shares issued and outstanding, at June 30, 2021 and December 31, 2020, respectively

12

12

Additional paid-in capital

112,953

105,159

Accumulated other comprehensive income

1,848

1,791

Accumulated deficit

(358,030

)

(299,789

)

Total stockholders’ deficiency attributable to AvePoint Operations, Inc.

(243,217

)

(192,827

)

Total liabilities, mezzanine equity, and stockholders’ deficiency

$

172,316

$

169,054



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

For the Six Months Ended

June 30,

2021

2020

Operating activities

Net income (loss)

$

(15,999

)

$

7,315

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

Depreciation and amortization

537

541

Foreign currency remeasurement (gain) loss

(134

)

220

Provision for doubtful accounts

(732

)

818

Stock-based compensation

17,799

2,854

Gain on disposal of property and equipment

(15

)

Deferred income taxes

(981

)

(5,788

)

Changes in operating assets and liabilities:

Accounts receivable

2,399

4,822

Prepaid expenses and other current assets

(1,994

)

407

Other assets

(1,955

)

719

Accounts payable, accrued expenses and other liabilities

(4,057

)

(6,896

)

Deferred revenue

3,298

964

Accrued rent obligation

(87

)

(206

)

Net cash provided by (used in) operating activities

(1,921

)

5,770

Investing activities

Maturity (purchase) of short-term investments, net

(423

)

1,034

Purchase of APXT shares

(1,631

)

Purchase of property and equipment

(897

)

(169

)

Cash provided by (used in) investing activities

(2,951

)

865

Financing activities

Repayments of capital leases

(14

)

(33

)

Payments of transaction fees

(1,872

)

Proceeds from stock option exercises

3,277

15

Proceeds from sale of common shares of subsidiary

753

Payments of debt issuance costs

(120

)

Proceeds from issuance of Common stock

7,000

Net cash provided by financing activities

2,144

6,862

Effect of exchange rates on cash

(46

)

(284

)

Net increase (decrease) in cash and cash equivalents

(2,774

)

13,213

Cash and cash equivalents at beginning of period

69,112

12,162

Cash and cash equivalents at end of period

$

66,338

$

25,375

Supplemental disclosures of cash flow information

Cash received (paid) for:

Interest

$

24

$

8

Income taxes

$

(2,389

)

$

(529

)

Non-cash investing and financing activities

Fixed assets acquired under capital leases

$

$

28


For the Three Months Ended

For the Six Months Ended

June 30,

June 30,

2021

2020

2021

2020

Non-GAAP gross profit

GAAP gross profit

$

33,624

$

23,883

$

61,646

$

46,177

Stock-based compensation expense

272

190

362

102

Non-GAAP gross profit

$

33,896

$

24,073

$

62,008

$

46,279

Non-GAAP gross margin

74.8

%

73.0

%

73.7

%

70.5

%

Non-GAAP sales and marketing

GAAP sales and marketing

$

29,001

$

14,010

$

48,302

$

28,051

Stock-based compensation expense

(9,791

)

(1,510

)

(10,902

)

(1,310

)

Non-GAAP sales and marketing

$

19,210

$

12,500

$

37,400

$

26,741

Non-GAAP sales and marketing as a % of revenue

42.4

%

37.9

%

44.4

%

40.8

%

Non-GAAP research and development

GAAP research and development

$

3,883

$

2,863

$

7,985

$

5,757

Stock-based compensation expense

(83

)

(72

)

(180

)

(147

)

Non-GAAP research and development

$

3,800

$

2,791

$

7,805

$

5,610

Non-GAAP research and development as a % of revenue

8.4

%

8.5

%

9.3

%

8.5

%

Non-GAAP general and administrative

GAAP general and administrative

$

11,664

$

5,291

$

21,956

$

10,449

Stock-based compensation expense

(4,364

)

(1,007

)

(6,355

)

(1,295

)

Non-GAAP general and administrative

$

7,300

$

4,284

$

15,601

$

9,154

Non-GAAP general and administrative as a % of revenue

16.1

%

13.0

%

18.5

%

14.0

%

Non-GAAP depreciation and amortization

GAAP depreciation and amortization

$

279

$

268

$

537

$

541

Non-GAAP depreciation and amortization

$

279

$

268

$

537

$

541

Non-GAAP depreciation and amortization as a % of revenue

0.6

%

0.8

%

0.6

%

0.8

%

Non-GAAP operating expenses

GAAP operating expenses

$

44,827

$

22,432

$

78,780

$

44,798

Stock-based compensation expense

(14,238

)

(2,589

)

(17,437

)

(2,752

)

Non-GAAP operating expenses

$

30,589

$

19,843

$

61,343

$

42,046

Non-GAAP operating expenses as a % of revenue

67.5

%

60.2

%

72.9

%

64.1

%

Non-GAAP operating income

GAAP operating income (loss)

$

(11,203

)

$

1,451

$

(17,134

)

$

1,379

Stock-based compensation expense

14,510

2,779

17,799

2,854

Non-GAAP operating income

$

3,307

$

4,230

$

665

$

4,233

Non-GAAP operating margin

7.3

%

12.8

%

0.8

%

6.5

%


____________
1 AvePoint calculates annual recurring revenue (“ARR”) at the end of a particular period as the annualized sum of: (1) contractually obligated Annual Contract Value from subscription and maintenance revenue sources from all customers with a contract duration exceeding three months, and (2) the product of the current month’s monthly recurring revenue (“MRR”) multiplied by twelve (to prospectively annualize subscription revenue). MRR includes AvePoint’s channel business and customers that sign contracts for less than one quarter in duration. ARR also includes some recurring professional services revenue, such as recurring technical account management services.