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AvePoint Announces Third Quarter 2023 Financial Results
Источник: Nasdaq GlobeNewswire / 09 ноя 2023 15:05:01 America/Chicago
Third quarter SaaS revenue of $41.9 million, representing 40% year-over-year growth
Third quarter Total revenue of $72.8 million, representing 16% year-over-year growth
Total ARR of $250.6 million, representing 23% year-over-year growth, 25% adjusted for FXJERSEY CITY, N.J., Nov. 09, 2023 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ: AVPT), the most advanced platform to optimize SaaS operations and secure collaboration, today announced financial results for the third quarter ended September 30, 2023.
“The third quarter was another strong result for AvePoint, as we again meaningfully outperformed our guidance for both total revenues and non-GAAP operating income, while delivering total ARR growth of 25%,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “We see tremendous ambition from companies to leverage generative AI for competitive advantage and value creation, but for their efforts to succeed, they must first establish a robust data management strategy. This is the core business problem AvePoint has been solving for over 20 years and positions us well to be a key enabler of the generative AI solutions companies implement going forward. We are excited for a strong close to 2023 and for the many opportunities we see ahead of us.”
Third Quarter 2023 Financial Highlights
- Revenue: Total revenue was $72.8 million, up 16% from the third quarter of 2022. Within total revenue, SaaS revenue was $41.9 million, up 40% from the third quarter of 2022.
- Gross Profit: GAAP gross profit was $52.6 million, compared to $45.6 million for the third quarter of 2022. Non-GAAP gross profit was $53.7 million, compared to $46.4 million for the third quarter of 2022. Non-GAAP gross margin was 73.7%, compared to 74.0% for the third quarter of 2022.
- Operating Income/(Loss): GAAP operating loss was $(0.3) million, compared to $(7.4) million for the third quarter of 2022. Non-GAAP operating income was $9.3 million, compared to $2.4 million for the third quarter of 2022.
- Cash and short-term investments: $209.3 million as of September 30, 2023.
Third Quarter 2023 Key Performance Indicators and Business Highlights
- ARR as of September 30, 2023 was $250.6 million, up 23% year-over-year. Adjusted for FX, ARR grew 25%.
- Adjusted for FX, dollar-based gross retention rate was 87%, while dollar-based net retention rate was 108%. On an as-reported basis, dollar-based gross retention rate was 85%, while dollar-based net retention rate was 107%.
- Introduced AvePoint EnPower, which helps organizations more proactively analyze, govern and optimize their SaaS management and operations across Microsoft 365 and Power Platform, in turn enabling greater operational efficiency and automated governance.
- Announced certification against the ISO information security management system audit using the 27701:2019 framework for the first time, and the 27001:2013 and 27017:2015 frameworks for the second consecutive year, demonstrating the Company’s prioritization of security and privacy for AvePoint and its customers.
Financial Outlook
The Company is again raising its full year outlook for total ARR, total revenues and non-GAAP operating income.For the fourth quarter of 2023, the Company expects:
- Total revenues of $70.5 million to $72.5 million, or year-over-year growth of 12% at the midpoint.
- Non-GAAP operating income of $8.1 million to $9.1 million.
For the full year 2023, the Company now expects:
- Total ARR of $261 million to $263 million, or year-over-year growth of 22% at the midpoint.
- Total revenues of $267.7 million to $269.7 million, or year-over-year growth of 16% at the midpoint.
- Non-GAAP operating income of $20.0 million to $21.0 million.
Quarterly Conference Call
AvePoint will host a conference call today, November 09, 2023, to review its third quarter 2023 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 passcode for the call is 3803378. 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 to optimize SaaS operations and secure collaboration. Over 17,000 customers worldwide rely on our solutions to modernize the digital workplace across Microsoft, Google, Salesforce and other collaboration environments. AvePoint's global channel partner program includes over 3,500 managed service providers, value added resellers and systems integrators, with our solutions available in more than 100 cloud marketplaces. To learn more, visit www.avepoint.com.
Emerging Growth Company
AvePoint is considered an emerging growth company. Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under Section 21E of the Securities Exchange Act of 1934, as amended) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies, but any such election to opt out is irrevocable. AvePoint elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, AvePoint, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.
Because the market value of our common stock held by non-affiliates exceeded $700.0 million as of June 30, 2023, AvePoint will meet the conditions to be deemed a "large-accelerated filer" as of December 31, 2023, and will consequently no longer be an emerging growth company as of that date. AvePoint will be subject to the regulations applicable to all large-accelerated filers as of December 31, 2023.
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. 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 and the amortization of acquired intangible assets. The company believes the presentation of its non-GAAP financial measures provides a better representation as to its overall operating 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. Unless the context otherwise indicates, references in this press release to the terms “AvePoint”, “the Company”, “we”, “our” and “us” refer to AvePoint, Inc. and its subsidiaries.
Investor Contact
AvePoint
Jamie Arestia
ir@avepoint.com
(551) 220-5654Media Contact
AvePoint
Nicole Caci
pr@avepoint.com
(201) 201-8143AvePoint, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenue: SaaS $ 41,910 $ 29,959 $ 115,701 $ 84,131 Term license and support 16,293 18,288 40,474 42,501 Services 11,194 10,458 31,007 29,231 Maintenance 3,363 4,034 10,019 12,868 Total revenue 72,760 62,739 197,201 168,731 Cost of revenue: SaaS 9,561 7,164 26,586 18,934 Term license and support 484 524 1,441 1,600 Services 9,922 9,218 29,231 26,204 Maintenance 189 192 584 748 Total cost of revenue 20,156 17,098 57,842 47,486 Gross profit 52,604 45,641 139,359 121,245 Operating expenses: Sales and marketing 28,436 27,425 82,978 82,002 General and administrative 15,838 16,429 45,679 48,411 Research and development 8,643 9,214 26,931 23,850 Total operating expenses 52,917 53,068 155,588 154,263 Loss from operations (313 ) (7,427 ) (16,229 ) (33,018 ) (Loss) gain on earn-out and warrant liabilities (2,785 ) 913 (6,921 ) 6,848 Interest income, net 232 16 843 50 Other income (expense), net 1,477 48 4,502 (822 ) Loss before income taxes (1,389 ) (6,450 ) (17,805 ) (26,942 ) Income tax expense 2,841 336 8,132 99 Net loss $ (4,230 ) $ (6,786 ) $ (25,937 ) $ (27,041 ) Net loss (income) attributable to and accretion of redeemable noncontrolling interest 18 (626 ) (57 ) (1,870 ) Net loss attributable to AvePoint, Inc. $ (4,212 ) $ (7,412 ) $ (25,994 ) $ (28,911 ) Net loss available to common shareholders $ (4,212 ) $ (7,412 ) $ (25,994 ) $ (28,911 ) Basic and diluted loss per share $ (0.02 ) $ (0.04 ) $ (0.14 ) $ (0.16 ) Basic and diluted shares used in computing loss per share 181,769 180,732 182,630 179,563 AvePoint, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except par value)
(Unaudited)September 30, December 31, 2023 2022 Assets Current assets: Cash and cash equivalents $ 205,786 $ 227,188 Short-term investments 3,478 2,620 Accounts receivable, net of allowance for doubtful accounts of $1,176 and $725 as of September 30, 2023 and December 31, 2022, respectively 69,329 66,474 Prepaid expenses and other current assets 8,276 10,013 Total current assets 286,869 306,295 Property and equipment, net 4,983 5,537 Goodwill 18,595 18,904 Intangible assets, net 10,427 11,079 Operating lease right-of-use assets 14,547 15,855 Deferred contract costs 50,232 48,553 Other assets 12,558 9,310 Total assets $ 398,211 $ 415,533 Liabilities, mezzanine equity, and stockholders’ equity Current liabilities: Accounts payable $ 1,855 $ 1,519 Accrued expenses and other liabilities 44,538 47,784 Current portion of deferred revenue 102,433 93,405 Total current liabilities 148,826 142,708 Long-term operating lease liabilities 9,982 11,348 Long-term portion of deferred revenue 6,296 8,085 Earn-out shares liabilities 13,822 6,631 Other non-current liabilities 5,183 3,607 Total liabilities 184,109 172,379 Commitments and contingencies Mezzanine equity Redeemable noncontrolling interest 13,991 14,007 Total mezzanine equity 13,991 14,007 Stockholders’ equity Common stock, $0.0001 par value; 1,000,000 shares authorized, 183,996 and 185,278 shares issued and outstanding 18 19 Additional paid-in capital 659,892 665,715 Treasury stock — (21,666 ) Accumulated other comprehensive income 2,307 2,006 Accumulated deficit (462,106 ) (416,927 ) Total stockholders’ equity 200,111 229,147 Total liabilities, mezzanine equity, and stockholders’ equity $ 398,211 $ 415,533 AvePoint, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)Nine Months Ended September 30, 2023 2022 Operating activities Net loss $ (25,937 ) $ (27,041 ) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 3,439 2,255 Operating lease right-of-use assets expense 5,294 4,602 Foreign currency remeasurement loss 763 3,026 Stock-based compensation 26,975 28,287 Deferred income taxes (240 ) (154 ) Other 725 1,040 Change in value of earn-out and warrant liabilities 6,921 (6,754 ) Changes in operating assets and liabilities: Accounts receivable (4,633 ) (6,661 ) Prepaid expenses and other current assets 1,663 (1,486 ) Deferred contract costs and other assets (5,637 ) (8,436 ) Accounts payable, accrued expenses, operating lease liabilities and other liabilities (5,331 ) (4,227 ) Deferred revenue 9,282 8,656 Net cash provided by (used in) operating activities 13,284 (6,893 ) Investing activities Maturities of investments 1,292 180,837 Purchases of investments (2,050 ) (180,495 ) Cash paid in business combinations and asset acquisitions, net of cash acquired — (18,574 ) Capitalization of internal-use software (988 ) (1,165 ) Purchase of property and equipment (1,478 ) (3,420 ) Investment in notes (1,000 ) — Net cash used in investing activities (4,224 ) (22,817 ) Financing activities Repurchase of common stock (33,644 ) (19,554 ) Proceeds from stock option exercises 3,865 1,817 Repayments of finance leases (30 ) (23 ) Net cash used in financing activities (29,809 ) (17,760 ) Effect of exchange rates on cash (653 ) (2,966 ) Net decrease in cash and cash equivalents (21,402 ) (50,436 ) Cash and cash equivalents at beginning of period 227,188 268,217 Cash and cash equivalents at end of period $ 205,786 $ 217,781 Supplemental disclosures of cash flow information Income taxes paid $ 5,794 $ 421 Contingent consideration in business combinations $ — $ 5,635 AvePoint, Inc.
Non-GAAP Reconciliations
(In thousands)
(Unaudited)Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Non-GAAP operating income GAAP operating loss $ (313 ) $ (7,427 ) $ (16,229 ) $ (33,018 ) Stock-based compensation expense 9,285 9,609 26,975 28,287 Amortization of acquired intangible assets 353 229 1,106 428 Non-GAAP operating income (loss) $ 9,325 $ 2,411 $ 11,852 $ (4,303 ) Non-GAAP operating margin 12.8 % 3.8 % 6.0 % -2.6 % Non-GAAP gross profit GAAP gross profit $ 52,604 $ 45,641 $ 139,359 $ 121,245 Stock-based compensation expense 806 667 2,292 1,948 Amortization of acquired intangible assets 241 133 725 224 Non-GAAP gross profit $ 53,651 $ 46,441 $ 142,376 $ 123,417 Non-GAAP gross margin 73.7 % 74.0 % 72.2 % 73.1 % Non-GAAP sales and marketing GAAP sales and marketing $ 28,436 $ 27,425 $ 82,978 $ 82,002 Stock-based compensation expense (2,358 ) (2,847 ) (7,267 ) (8,705 ) Amortization of acquired intangible assets (112 ) (96 ) (381 ) (204 ) Non-GAAP sales and marketing $ 25,966 $ 24,482 $ 75,330 $ 73,093 Non-GAAP sales and marketing as a % of revenue 35.7 % 39.0 % 38.2 % 43.3 % Non-GAAP general and administrative GAAP general and administrative $ 15,838 $ 16,429 $ 45,679 $ 48,411 Stock-based compensation expense (5,264 ) (5,060 ) (14,551 ) (14,825 ) Non-GAAP general and administrative $ 10,574 $ 11,369 $ 31,128 $ 33,586 Non-GAAP general and administrative as a % of revenue 14.5 % 18.1 % 15.8 % 19.9 % Non-GAAP research and development GAAP research and development $ 8,643 $ 9,214 $ 26,931 $ 23,850 Stock-based compensation expense (857 ) (1,035 ) (2,865 ) (2,809 ) Non-GAAP research and development $ 7,786 $ 8,179 $ 24,066 $ 21,041 Non-GAAP research and development as a % of revenue 10.7 % 13.0 % 12.2 % 12.5 %
- Revenue: Total revenue was $72.8 million, up 16% from the third quarter of 2022. Within total revenue, SaaS revenue was $41.9 million, up 40% from the third quarter of 2022.