Article Top Ad
Reading Time: 6 minutes

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.
[email protected]
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 %
                 

 

Powered by WPeMatico