AvePoint Announces Second Quarter 2022 Financial Results


Second quarter SaaS revenue of $27.6 million, representing 34% year-over-year growth, 43% adjusted for constant currency
Second quarter total revenue of $55.7 million, representing 23% year-over-year growth, 31% adjusted for constant currency
Total ARR of $178.2 million, representing 28% year-over-year growth, 29% adjusted for FX impact

JERSEY CITY, N.J., Aug. 11, 2022 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ: AVPT), the most advanced SaaS and data management platform provider, today announced financial results for the second quarter ended June 30, 2022. 

“Q2 was yet another quarter of solid execution with strong results demonstrating the durability of our business in a challenging macro environment,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder of AvePoint. “Technology plays an important role for organizations across every sector and yet the continual complex nature of SaaS environments comes with inherent challenges. Solving these challenges continues to be a top priority for our customers who understand how our solutions can secure their digital collaboration data, sustain connections between people, ensure business continuity and provide a clear and measurable ROI.”

Second Quarter 2022 Financial Highlights

  • Revenue: Total revenue for the second quarter of 2022 was $55.7 million, up 23% from the second quarter of 2021 and up 31% year over year on a constant currency basis. Within total revenue, SaaS revenue was $27.6 million, up 34% from the second quarter of 2021 and up 43% year over year on a constant currency basis.
  • Gross Profit: Gross profit for the second quarter of 2022 was $40.3 million, compared to $33.6 million for the second quarter of 2021. Gross margin for the second quarter of 2022 was 72.3%, compared to 74.2% for the second quarter of 2021. Non-GAAP gross profit for the second quarter of 2022 was $41.0 million, compared to $33.9 million for the second quarter of 2021. Non-GAAP gross margin was 73.6% for the second quarter of 2022, compared to 74.8% for the second quarter of 2021.
  • Operating Income/(Loss): Operating loss for the second quarter of 2022 was $(11.8) million, compared to $(11.2) million for the second quarter of 2021. Non-GAAP operating loss for the second quarter of 2022 was $(1.3) million, compared to $3.3 million for the second quarter of 2021.
  • Cash and short-term investments: $246.6 million as of June 30, 2022.

Second Quarter Key Highlights

  • ARR for the second quarter was $178.2 million dollars. Excluding the $1.5 million dollar FX headwind, ARR grew by $39.2 million dollars year-over-year, representing 28% percent year-over-year growth.
  • Reported dollar-based net retention rate of 106%, 107% adjusted for FX impact.
  • Added four new solutions on Microsoft AppSource, an online cloud marketplace providing tailored line-of-business solutions.
  • Enhanced robust data protection capabilities with the addition of Microsoft Azure backup.
  • Garnered industry recognition for continued innovation, winning the 2022 EdTech Breakthrough Award and multiple channel program awards in addition to being a finalist for 2022 Microsoft Partner of the Year Awards in education and government.
  • Through June 30, 2022, repurchased approximately 1.9 million shares under the share repurchase program at a cost of approximately $10 million.

Financial Outlook

Since March 31, 2022, we have seen an incremental strengthening of the U.S. dollar resulting in a foreign exchange headwind in fiscal 2022. We now expect the total FX impact to be approximately $4.8 million dollars on ARR and $5 million dollars on revenue. Our revised guidance assumes this trend and that the challenging macroeconomic environment will continue for the remainder of the year.

  • Third Quarter 2022 Guidance: Total revenue is expected to be in the range of $62 million to $64 million or approximately 17% year-over-year growth, 23% adjusted for constant currency. Non-GAAP operating income is expected to be in the range of $1 million to $2 million.
  • Full Year 2022 Guidance: Total revenue is expected to be in the range of $230.0 million to $234.0 million or approximately 21% year-over-year growth, 26% adjusted for constant currency. 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 $202 million to $206 million or approximately 28% year-over-year growth, 31% adjusted for FX impact.

Quarterly Conference Call

AvePoint will host a conference call today, August 11, 2022, to review its second quarter 2022 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 conference ID for the call is 10169265. 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 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.

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

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

Media Contact

AvePoint
Nicole Caci
pr@avepoint.com   
201-201-8143


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

  Three Months Ended  Six Months Ended 
  June 30,  June 30, 
  2022  2021  2022  2021 
Revenue:                
SaaS $27,619  $20,586  $54,172  $38,845 
Term license and support  14,011   11,088   24,213   19,815 
Services  9,848   7,302   18,773   13,218 
Maintenance  4,067   5,458   8,508   10,867 
Perpetual license  156   910   326   1,399 
Total revenue  55,701   45,344   105,992   84,144 
Cost of revenue:                
SaaS  6,120   4,564   11,640   9,004 
Term license and support  482   230   1,058   503 
Services  8,550   6,508   16,809   12,093 
Maintenance  275   418   550   898 
Total cost of revenue  15,427   11,720   30,057   22,498 
Gross profit  40,274   33,624   75,935   61,646 
Operating expenses:                
Sales and marketing  27,174   29,001   54,228   48,302 
General and administrative  16,322   11,664   31,864   21,956 
Research and development  7,892   3,883   14,294   7,985 
Depreciation and amortization  629   279   1,140   537 
Total operating expenses  52,017   44,827   101,526   78,780 
Loss from operations  (11,743)  (11,203)  (25,591)  (17,134)
Gain on earn-out and warrant liabilities  2,668      5,935    
Interest income, net  20   11   34   24 
Other income (expense), net  (693)  62   (870)  (1)
Loss before income taxes  (9,748)  (11,130)  (20,492)  (17,111)
Income tax benefit  (546)  (73)  (237)  (1,112)
Net loss $(9,202) $(11,057) $(20,255) $(15,999)
Net income attributable to and accretion of redeemable noncontrolling interest  (627)  (499)  (1,244)  (896)
Net loss attributable to AvePoint, Inc. $(9,829) $(11,556) $(21,499) $(16,895)
Deemed dividends on preferred stock     (24,742)     (33,536)
Net loss available to common shareholders $(9,829) $(36,298) $(21,499) $(50,431)
Basic and diluted loss per share $(0.05) $(0.36) $(0.12) $(0.50)
Basic and diluted shares used in computing loss per share  182,491   101,968   182,661   101,368 


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

  June 30,  December 31, 
  2022  2021 
Assets        
Current assets:        
Cash and cash equivalents $65,062  $268,217 
Short-term investments  181,545   2,411 
Accounts receivable, net of allowance of $1,320 and $838 at June 30, 2022 and December 31, 2021, respectively  51,441   55,067 
Prepaid expenses and other current assets  6,248   8,461 
Total current assets  304,296   334,156 
Property and equipment, net  5,179   3,922 
Goodwill  4,744    
Other intangible assets, net  5,156    
Operating lease right-of-use assets  18,068    
Deferred contract costs  40,474   38,926 
Other assets  10,004   11,734 
Total assets $387,921  $388,738 
Liabilities, mezzanine equity, and stockholders’ equity        
Current liabilities:        
Accounts payable $2,100  $1,824 
Accrued expenses and other liabilities  32,730   35,062 
Current portion of deferred revenue  73,795   74,294 
Total current liabilities  108,625   111,180 
Long-term operating lease liabilities  13,690    
Long-term portion of deferred revenue  7,151   8,038 
Earn-out shares liabilities  4,770   10,012 
Other non-current liabilities  4,261   3,943 
Total liabilities  138,497   133,173 
Commitments and contingencies        
Mezzanine equity        
Redeemable noncontrolling interest  12,173   5,210 
Total mezzanine equity  12,173   5,210 
Stockholders’ equity        
Common stock, $0.0001 par value; 1,000,000 shares authorized, 181,331 and 181,822 shares issued and outstanding, at June 30, 2022 and December 31, 2021, respectively  18   18 
Additional paid-in capital  644,931   625,056 
Treasury stock  (11,791)  (1,739)
Accumulated other comprehensive income  889   2,317 
Accumulated deficit  (396,796)  (375,297)
Total stockholders’ equity  237,251   250,355 
Total liabilities, mezzanine equity, and stockholders’ equity $387,921  $388,738 


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

  Six Months Ended 
  June 30, 
  2022  2021 
Operating activities        
Net loss $(20,255) $(15,999)
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization  1,333   537 
Operating lease right-of-use assets expense  2,649    
Foreign currency remeasurement loss (gain)  1,386   (134)
Provision for doubtful accounts  519   (732)
Stock-based compensation  18,678   17,799 
Gain on disposal of property and equipment  (45)  (15)
Deferred income taxes  (37)  (981)
Change in value of earn-out and warrant liabilities  (5,840)   
Changes in operating assets and liabilities:        
Accounts receivable and long-term unbilled receivables  2,522   2,399 
Prepaid expenses and other current assets  1,452   (1,994)
Deferred contract costs and other assets  (5,025)  (1,955)
Accounts payable, accrued expenses and other liabilities  (6,654)  (4,144)
Deferred revenue  2,721   3,298 
Net cash used in operating activities  (6,596)  (1,921)
Investing activities        
Maturities of investments  1,093    
Purchases of investments  (180,041)  (423)
Purchase of APXT shares     (1,631)
Net assets acquired from business combinations and asset acquisitions, net of cash acquired  (2,222)   
Capitalization of internal use software  (1,174)   
Purchase of property and equipment  (2,234)  (897)
Net cash used in investing activities  (184,578)  (2,951)
Financing activities        
Payments of transaction fees     (1,872)
Purchase of common stock  (10,042)   
Proceeds from stock option exercises  1,719   3,277 
Proceeds from sale of common shares of subsidiary     753 
Repayments of finance leases  (11)  (14)
Net cash provided by (used in) financing activities  (8,334)  2,144 
Effect of exchange rates on cash  (3,647)  (46)
Net decrease in cash and cash equivalents  (203,155)  (2,774)
Cash and cash equivalents at beginning of period  268,217   69,112 
Cash and cash equivalents at end of period $65,062  $66,338 
Supplemental disclosures of cash flow information        
Income taxes paid $420  $2,389 
Noncash acquisition $5,635  $ 


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

  Three Months Ended  Six Months Ended  
  June 30,  June 30,  
  2022  2021  2022  2021  
Non-GAAP operating income                 
GAAP operating loss $(11,743) $(11,203) $(25,591) $(17,134) 
Stock-based compensation expense  10,404   14,510   18,678   17,799  
Non-GAAP operating income (loss) $(1,339) $3,307  $(6,913) $665  
Non-GAAP operating margin  -2.4%  7.3%  -6.5%  0.8% 
                  
                  
                  
Non-GAAP gross profit                 
GAAP gross profit $40,274  $33,624  $75,935  $61,646  
Stock-based compensation expense  703   272   1,281   362  
Non-GAAP gross profit $40,977  $33,896  $77,216  $62,008  
Non-GAAP gross margin  73.6%  74.8%  72.9%  73.7% 
                  
Non-GAAP sales and marketing                 
GAAP sales and marketing $27,174  $29,001  $54,228  $48,302  
Stock-based compensation expense  (3,396)  (9,791)  (5,858)  (10,902) 
Non-GAAP sales and marketing $23,778  $19,210  $48,370  $37,400  
Non-GAAP sales and marketing as a % of revenue  42.7%  42.4%  45.6%  44.4% 
                  
Non-GAAP general and administrative                 
GAAP general and administrative $16,322  $11,664  $31,864  $21,956  
Stock-based compensation expense  (5,281)  (4,364)  (9,765)  (6,355) 
Non-GAAP general and administrative $11,041  $7,300  $22,099  $15,601  
Non-GAAP general and administrative as a % of revenue  19.8%  16.1%  20.8%  18.5% 
                  
Non-GAAP research and development                 
GAAP research and development $7,892  $3,883  $14,294  $7,985  
Stock-based compensation expense  (1,024)  (83)  (1,774)  (180) 
Non-GAAP research and development $6,868  $3,800  $12,520  $7,805  
Non-GAAP research and development as a % of revenue  12.3%  8.4%  11.8%  9.3%