The road to AvePoint becoming public has been full of amazing experiences, which I have been sharing in this blog series.
After the announcement, I had the opportunity to go on a media tour and be interviewed on a variety of great business shows including on Bloomberg TV.
Following the tour, I have suddenly gained an increased following on Twitter. I am truly humbled by the number of people who have taken the time to hear our story, examine our market position, and put their faith in the future growth of our company.
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Every investor, every person who holds a single share, is someone who believes in us. They are a part of the AvePoint family and I am grateful for their support and passion.
While I am enjoying reading and watching all of the coverage around our company, the reality is that I am constrained by law in how I am able to engage and the information I am able to provide.
Essentially, everything that I disclose must first be filed with the SEC so that everyone is on a level playing field with the same level of knowledge.
Today, we filed our S-4 and so I am excited to have the opportunity to finally answer many of your questions. So let’s start with:
In our press release we say:
The transaction is expected to close at the end of Q1 2021 or the beginning of Q2 2021
I realize that many of you are looking for a bit more specific information on the date. I want to assure you that we are steadily working toward finalizing our merger and that it has been a smooth process from our initial announcement.
We are being conservative with the date. This is a very complex process and its taking place at a time where we are still focused on growing the business while keeping a close eye on the macro headwinds. The SEC also needs time to review and approve and there is not an exact timeline for that process.
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In these types of matters, we have always taken a more conservative stance. It’s this mindset that has helped us consistently grow the company without taking on any debt.
Now let’s talk about the news we released in our press release that shareholders have been asking about – Revenue.
In our release we say:
- Full Year Total Revenue in the range of $148 million to $151 million, up 29% year over year at the mid-point
- Cash, Cash Equivalents and Short-Term Investments of $70.1 million as of December 31, 2020; Company remains debt-free
Again, we are deliberately being conservative by providing a range for our full year total revenue. As we say in the release, this is because these are unaudited results and so they may get adjusted as we go through that process.
That being said, I am pleased that we are able to report a range with a floor that is completely consistent with the guidance we provided in November release when we announced the initial public merger.
As many have pointed out, there has been a strong trend of companies accelerating their digital transformation journey and maturing in the cloud. In fact, Microsoft’s Satya Nadella recently stressed that we are in the second wave of digital transformation. That has benefited us greatly and allowed us to be one of the few enterprise SaaS companies that is both growing and profitable.
As we said in our initial announcement, we are amongst only five other software companies on NYSE/NASDAQ with about $150 million in revenue, YoY growth rates above 25%, and EBIT Margin over 10% (estimated in 2020).
In closing, I would like to thank everyone again for their passion (a core value of AvePoint along with agility and teamwork).
I don’t know about being the “Elon Musk of the Cloud,” but I will always try to be as open as I can be about how we are learning and going through this process so we can involve all of our shareholders in this journey.