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AvePoint Announces Third Quarter 2021 Financial Results

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JERSEY CITY, N.J., Nov. 15, 2021 (GLOBE NEWSWIRE) -- AvePoint, Inc. (NASDAQ: AVPT), the largest data management solutions provider for Microsoft 365, today announced financial results for the third quarter ended September 30, 2021.

"AvePoint delivered its eleventh consecutive record quarter with total revenue of $54 million and 79% year over year growth in subscription revenue for our SaaS and data management platform," said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. "With most companies still in the early stages of their SaaS optimization and multi-cloud shifts, there is a massive market opportunity for AvePoint to manage and protect digital collaboration data on a recurring basis that will only increase as companies' SaaS operations become more mature and complex."

Third Quarter 2021 Financial Results

  • Total Revenue of $53.9 million, up 36% year-over-year

  • Total ARR of $147.5 million as of September 30, 2021, up 32% year-over-year

  • SaaS Revenue of $22.4 million, up 59% year-over-year

  • GAAP Operating Loss of $28.7 million

  • Non-GAAP Operating Income of $4.0 million

  • Cash and Short-Term Investments of approximately $262.3 million as of September 30, 2021

Third Quarter 2021 Key Highlights

  • Launched first global partner program, designed to support the unique needs of different types of channel partners as they build services around digital collaboration.

  • AvePoint was awarded a $37 million SGD ($27.5 million USD) contract from lead agency Temasek Polytechnic to deploy a training management platform for career professionals. The platform will be powered by AvePoint EduTech and will be available to six institutions of higher learning (IHL) for over 100,000 students.

  • Maintained triple digit growth in monthly recurring revenue (MRR) tied to the managed services provider (MSP) business.

  • Achieved record level sequential growth in accounts with over $100k in annual recurring revenue (ARR).

Financial Outlook

For the fourth quarter of 2021, AvePoint currently expects:

  • Total revenues between $56.4 and $58.4 million

  • Non-GAAP operating income between break even and $1.5 million

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

  • Total revenues between $194.4 and $196.4 million

  • Non-GAAP operating income between $4.7 and $6.2 million

Conference Call

AvePoint will host a conference call today on November 15, 2021 to review its third quarter 2021 financial results and to discuss its financial outlook. The call is scheduled to begin at 8:30am 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 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 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 registration statement on Form S-1 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 give any assurance that it will achieve its expectations.

Investor Contacts:

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


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

For the Three Months Ended

For the Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Revenue:

SaaS

$

22,410

$

14,092

$

61,255

$

36,034

Termed license and support

17,477

8,171

37,292

23,272

Services

8,143

10,870

21,361

26,173

Maintenance and OEM

5,293

6,056

16,160

17,837

Perpetual license

604

605

2,003

2,095

Total revenue

53,927

39,794

138,071

105,411

Cost of revenue:

SaaS

4,866

2,799

13,870

7,856

Termed license and support

211

437

714

1,257

Services

9,435

6,716

21,528

19,605

Maintenance and OEM

710

304

1,608

978

Total cost of revenue

15,222

10,256

37,720

29,696

Gross profit

38,705

29,538

100,351

75,715

Operating expenses:

Sales and marketing

25,186

21,830

73,488

49,881

General and administrative

22,230

10,469

44,186

20,918

Research and development

19,648

3,003

27,633

8,760

Depreciation and amortization

326

259

863

800

Total operating expenses

67,390

35,561

146,170

80,359

Loss from operations

(28,685

)

(6,023

)

(45,819

)

(4,644

)

Gain on earn-out and warrant liabilities

13,650

13,650

Interest income, net

56

17

80

26

Other income (expense), net

(299

)

65

(300

)

(324

)

Loss before income taxes

(15,278

)

(5,941

)

(32,389

)

(4,942

)

Income tax (benefit) expense

(5,521

)

6,244

(6,633

)

(72

)

Net loss

$

(9,757

)

$

(12,185

)

$

(25,756

)

$

(4,870

)

Net loss attributable to and accretion of redeemable noncontrolling interest

(517

)

(1,413

)

Net loss attributable to AvePoint, Inc.

$

(10,274

)

$

(12,185

)

$

(27,169

)

$

(4,870

)

Deemed dividends on preferred stock

608

(5,615

)

(32,928

)

(21,413

)

Net loss available to common shareholders

$

(9,666

)

$

(17,800

)

$

(60,097

)

$

(26,283

)

Loss per share:

Basic

$

(0.05

)

$

(0.20

)

$

(0.47

)

$

(0.30

)

Diluted

$

(0.05

)

$

(0.20

)

$

(0.47

)

$

(0.30

)

Shares used in computing loss per share:

Basic

176,621

90,805

126,738

86,784

Diluted

176,621

90,805

126,738

86,784



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

September 30,

December 31,

2021

2020

Assets

Current assets:

Cash and cash equivalents

$

260,704

$

69,112

Short-term investments

1,614

992

Accounts receivable, net of allowance of $878 and $1,767 at September 30, 2021 and December 31, 2020, respectively

54,226

48,250

Prepaid expenses and other current assets

13,086

2,343

Total current assets

329,630

120,697

Property and equipment, net

3,252

2,663

Deferred contract costs

35,267

31,943

Long-term unbilled receivables

6,104

5,499

Other assets

5,911

8,252

Total assets

$

380,164

$

169,054

Liabilities, mezzanine equity, and stockholders deficiency

Current liabilities:

Accounts payable

$

2,265

$

774

Accrued expenses and other liabilities

25,782

26,245

Current portion of deferred revenue

71,251

65,203

Total current liabilities

99,298

92,222

Long-term portion of deferred revenue

6,875

9,485

Share-based awards classified as liabilities

43,502

Earn-out liabilities

17,125

Warrant liabilities

795

Other non-current liabilities

3,947

3,658

Total liabilities

128,040

148,867

Commitments and contingencies (Note 10)

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

4,631

3,061

Total mezzanine equity

4,631

213,014

Stockholders’ deficiency

Common stock, $0.0001 par value; 1,000,000 and 243,360 shares authorized, 180,013 and 100,068 shares issued and outstanding, at September 30, 2021 and December 31, 2020, respectively

18

12

Additional paid-in capital

614,569

105,159

Treasury stock

(1,739

)

Accumulated other comprehensive income

1,892

1,791

Accumulated deficit

(367,247

)

(299,789

)

Total stockholders’ deficiency

247,493

(192,827

)

Total liabilities, mezzanine equity, and stockholders’ deficiency

$

380,164

$

169,054


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

For the Nine Months Ended

September 30,

2021

2020

Operating activities

Net loss

$

(25,756

)

$

(4,870

)

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

Depreciation and amortization

863

800

Foreign currency remeasurement (gain) loss

(161

)

368

Provision for doubtful accounts

(880

)

175

Stock-based compensation

50,475

16,235

Gain on disposal of property and equipment

(15

)

Deferred income taxes

(1,008

)

(1,973

)

Change in value of earn-out and warrant liabilities

(13,650

)

Changes in operating assets and liabilities:

Accounts receivable and long-term unbilled receivables

(7,002

)

(2,416

)

Prepaid expenses and other current assets

(10,775

)

2,836

Deferred contract costs and other assets

(3,269

)

(3,040

)

Accounts payable, accrued expenses and other liabilities

1,836

(1,949

)

Deferred revenue

5,377

4,965

Net cash provided by (used in) operating activities

(3,965

)

11,131

Investing activities

Maturity (purchase) of short-term investments

(638

)

1,466

Purchase of property and equipment

(1,445

)

(314

)

Net cash provided by (used in) investing activities

(2,083

)

1,152

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

)

Purchase of treasury stock

(1,631

)

Payment of net cash settlement for management options

(7,530

)

Proceeds from stock option exercises

4,555

54

Proceeds from sale of common shares of subsidiary

753

Repayments of capital leases

(20

)

(42

)

Payments of debt issuance costs

(300

)

Proceeds from issuance of Common stock, net of issuance costs

56,753

Net cash provided by financing activities

197,608

22,753

Effect of exchange rates on cash

32

(329

)

Net increase in cash and cash equivalents

191,592

34,707

Cash and cash equivalents at beginning of period

69,112

12,162

Cash and cash equivalents at end of period

$

260,704

$

46,869

Supplemental disclosures of cash flow information

Cash received (paid) for:

Interest

$

80

$

Income taxes

$

(2,823

)

$

80

Non-cash investing and financing activities

Issuance of common shares in exchange for issuance cost

$

$

2,408

Fixed assets acquired under capital leases

$

$

28



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

For the Three Months Ended

For the Nine Months Ended

September 30,

September 30,

2021

2020

2021

2020

Non-GAAP operating income

GAAP operating income (loss)

$

(28,685

)

$

(6,023

)

$

(45,819

)

$

(4,644

)

Stock-based compensation expense

32,676

13,381

50,475

16,235

Non-GAAP operating income

$

3,991

$

7,358

$

4,656

$

11,591

Non-GAAP operating margin

7.4

%

18.5

%

3.4

%

11.0

%

Non-GAAP gross profit

GAAP gross profit

$

38,705

$

29,538

$

100,351

$

75,715

Stock-based compensation expense

2,428

214

2,790

316

Non-GAAP gross profit

$

41,133

$

29,752

$

103,141

$

76,031

Non-GAAP gross margin

76.3

%

74.8

%

74.7

%

72.1

%

Non-GAAP sales and marketing

GAAP sales and marketing

$

25,186

$

21,830

$

73,488

$

49,881

Stock-based compensation expense

(2,171

)

(7,917

)

(13,073

)

(9,227

)

Non-GAAP sales and marketing

$

23,015

$

13,913

$

60,415

$

40,654

Non-GAAP sales and marketing as a % of revenue

42.7

%

35.0

%

43.8

%

38.6

%

Non-GAAP general and administrative

GAAP general and administrative

$

22,230

$

10,469

$

44,186

$

20,918

Stock-based compensation expense

(13,020

)

(5,201

)

(19,375

)

(6,496

)

Non-GAAP general and administrative

$

9,210

$

5,268

$

24,811

$

14,422

Non-GAAP general and administrative as a % of revenue

17.1

%

13.2

%

18.0

%

13.7

%

Non-GAAP research and development

GAAP research and development

$

19,648

$

3,003

$

27,633

$

8,760

Stock-based compensation expense

(15,057

)

(49

)

(15,237

)

(196

)

Non-GAAP research and development

$

4,591

$

2,954

$

12,396

$

8,564

Non-GAAP research and development as a % of revenue

8.5

%

7.4

%

9.0

%

8.1

%