AvePoint Media Contact

Nicole Caci
Tel: +1 201-201-8143
Email: pr@avepoint.com

AvePoint Announces Fourth Quarter and Full Year 2021 Financial Results and $150 Million Share Repurchase Program

Full year SaaS revenue of $85.6 million, up 64% year-over-year.
Total ARR of $159.2 million, up 34% year-over-year.
Cloud user base exceeds 9 million.

Jersey City, NJ – March 17, 2022 – AvePoint (NASDAQ: AVPT), the most advanced SaaS and data management solutions provider, today announced financial results for the fourth quarter and full year ended December 31, 2021.

“AvePoint’s fourth quarter performance was a solid finish to our first year as a public company, which was highlighted by 64% SaaS revenue growth and 34% ARR growth, with an additional 36% growth in customers with ARR above 100k,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “As enterprises continue their long-term shift to SaaS based platforms, and we see increased application usage in 2022 and beyond, we believe we are well positioned to capitalize on this massive opportunity, which will require the industry leading data management and collaboration security solutions that AvePoint offers. I’m incredibly thankful to our team for their continued focus on expanding our unique product offerings, enhancing our channel business, and delivering exceptional service to our existing multi-cloud customers."

Fourth Quarter 2021 Financial Highlights

  • Revenue: Total revenue for the fourth quarter of 2021 was $53.8 million, up 17% from the fourth quarter of 2020. Within total revenue, SaaS revenue was $24.3 million, up 52% from the fourth quarter of 2020, and term license and support revenue was $13.7 million, a decline of 13% due to an adjustment in the timing of revenue recognition on term license contracts, which resulted in the deferral of an additional $4.4 million of revenue into future periods. Excluding the effects of this adjustment, total revenue growth would have been 26% and term license and support growth would have been 15%.
  • Gross Profit: Gross profit for the fourth quarter of 2021 was $38.9 million, compared to $35.5 million for the fourth quarter of 2020. Gross margin for the fourth quarter of 2021 was 72.2%, compared to 77.0% for the fourth quarter of 2020. Non-GAAP gross profit for the fourth quarter of 2021 was $39.6 million, compared to $35.8 million for the fourth quarter of 2020. Non-GAAP gross margin was 73.5% for the fourth quarter of 2021, compared to 77.6% for the fourth quarter of 2020.
  • Operating Income/(Loss): Operating loss for the fourth quarter of 2021 was $(7.7) million, compared to $(10.8) million for the fourth quarter of 2020. Non-GAAP operating income for the fourth quarter of 2021 was $1.4 million, compared to $6.7 million for the fourth quarter of 2020.

Full Year 2021 Financial Highlights

  • Revenue: Total revenue for the full year 2021 was $191.9 million, up 27% from 2020. Within total revenue, SaaS revenue was $85.6 million, up 64% from 2020, and term license and support revenue was $51.0 million, up 31% from 2020. Adjusting for the change in the timing of revenue recognition of $4.4 million, total revenue would have been up 30% and term license and support revenue would have increased 42% from 2020.
  • Gross Profit: Gross profit for the full year of 2021 was $139.2 million, compared to $111.2 million for 2020. Gross margin for the full year 2021 was 72.6%, compared to 73.4% for 2020. Non-GAAP gross profit for the full year 2021 was $142.7 million, compared to $111.8 million for 2020. Non-GAAP gross margin was 74.4% for the full year 2021, compared to 73.8% for 2020.
  • Operating Income/(Loss): Operating loss for the full year 2021 was $(53.5) million, compared to $(15.4) million for 2020. Non-GAAP operating income for the full year 2021 was $6.0 million, compared to $18.3 million for 2020.
  • Free Cash Flow of $3.1 million for the full year 2021 and $271 million of cash and short-term investments as of the end of the year.

Fourth Quarter Key Highlights

  • Grew total ARR 34% year-over-year to $159.2 million.
  • Increased dollar-based net retention rate to 110%, up 3 percentage points year-over-year.
  • Eclipsed 2,800 total channel partners in 2021, of which, roughly three quarters are managed service providers (MSPs). AvePoint’s channel presence has further expanded to include over 100 cloud marketplaces and distributors across 7 continents.
  • Expanded cloud user base to 9.4 million, up 34% from 7.0 million as of December 31, 2020.

Share Repurchase Program

AvePoint’s Board of Directors has authorized a new share repurchase program for AvePoint to buy back its outstanding common shares. Under the share repurchase program, AvePoint has the authority to buy up to a maximum of $150 million worth of shares, over the next three years, via acquisitions in the open market or privately negotiated transactions. AvePoint is not obligated to make any purchases and the program may be suspended or discontinued at any time.

Financial Outlook

AvePoint is providing guidance for its first quarter and full year 2022 as follows:

  • First Quarter 2022 Guidance: Total revenue is expected to be in the range of $48.0 million to $49.0 million or approximately 25% year-over-year growth. Non-GAAP operating loss is expected to be in the range of $(6.0) to $(6.5) million.
  • Full Year 2022 Guidance: Total revenue is expected to be in the range of $236.0 million to $242.0 million or approximately 25% year-over-year growth. 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 $212 million to $216 million or approximately 34% year-over-year growth.

Quarterly Conference Call

AvePoint will host a conference call today, March 17, 2022, to review its fourth quarter and full year 2021 financial results and to discuss its financial outlook. The call is scheduled to begin at 4:30pm ET. 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.

AvePoint, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
For the Three Months
Ended
For the Year Ended
December 31,December 31,
2021202020212020
Revenue:
SaaS$24,325$16,040$85,580$52,074
Term license and support13,67815,67750,97038,949
Services10,5587,96731,91934,140
Maintenance4,8625,62521,02223,462
Perpetual license4158132,4182,908
Total revenue53,83846,122191,909151,533
Cost of revenue:
SaaS5,1693,19419,03911,050
Term license and support2366739501,930
Services9,1986,48430,72626,089
Maintenance3412431,9491,221
Total cost of revenue14,94410,59452,66440,290
Gross profit38,89435,528139,245111,243
Operating expenses:
Sales and marketing27,02426,664100,51276,545
General and administrative15,03515,95459,22136,872
Research and development4,1323,44431,76512,204
Depreciation and amortization3752591,2381,059
Total operating expenses46,56646,321192,736126,680
Loss from operations(7,672)(10,793)(53,491)(15,437)
Gain on earn-out and warrant liabilities7,58321,233
Interest income, net221510241
Other expense, net(332)(187)(632)(511)
Loss before income taxes(399)(10,965)(32,788)(15,907)
Income tax expense7,0901,1344571,062
Net loss$(7,489)$(12,099)$(33,245)$(16,969)
Net loss attributable to and accretion of redeemable noncontrolling interest(561)(27)(1,974)(27)
Net loss attributable to AvePoint, Inc.$(8,050)$(12,126)$(35,219)$(16,996)
Deemed dividends on preferred stock(13,033)(32,928)(34,446)
Net loss available to common shareholders$(8,050)$(25,159)$(68,147)$(51,442)
Loss per share:
Basic$(0.04)$(0.26)$(0.48)$(0.57)
Diluted$(0.04)$(0.26)$(0.48)$(0.57)
Shares used in computing loss per share:
Basic182,13398,107141,59689,638
Diluted182,13398,107141,59689,638
AvePoint, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except par value)
(Unaudited)
December 31,December 31,
20212020
Assets
Current assets:
Cash and cash equivalents$268,217$69,112
Short-term investments2,411992
Accounts receivable, net of allowance of $838 and $1,767 at December 31, 2021 and
December 31, 2020, respectively
59,22348,250
Prepaid expenses and other current assets6,5732,343
Total current assets336,424120,697
Property and equipment, net3,9222,663
Deferred contract costs38,92631,943
Long-term unbilled receivables8,0495,499
Other assets7,3548,252
Total assets$394,675$169,054
Liabilities, mezzanine equity, and stockholders’ deficiency
Current liabilities:
Accounts payable$1,824$774
Accrued expenses and other liabilities35,06226,245
Current portion of deferred revenue79,71465,203
Total current liabilities116,60092,222
Long-term portion of deferred revenue8,5559,485
Share-based awards classified as liabilities43,502
Earn-out shares liabilities10,012
Other non-current liabilities3,9433,658
Total liabilities139,110148,867
Commitments and contingencies (Note 11)
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 shares25,074
Share-based awards classified as mezzanine equity1,489
Redeemable noncontrolling interest5,2103,061
Total mezzanine equity5,210213,014
Stockholders’ deficiency
Common stock, $0.0001 par value; 1,000,000 and 243,360 shares authorized,
181,822 and 100,068 shares issued and outstanding, at December 31, 2021 and
December 31, 2020, respectively
1812
Additional paid-in capital625,056105,159
Treasury stock(1,739)
Accumulated other comprehensive income2,3171,791
Accumulated deficit(375,297)(299,789)
Total stockholders’ equity (deficiency)250,355(192,827)
Total liabilities, mezzanine equity, and stockholders’ equity (deficiency)$394,675$169,054
AvePoint, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
For the Year Ended
December 31,
20212020
Operating activities
Net loss$(33,245)$(16,969)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization1,2381,059
Foreign currency remeasurement loss (gain)1,308(378)
Provision for doubtful accounts(740)690
Stock-based compensation59,50833,767
Loss (gain) on disposal of property and equipment(15)80
Deferred income taxes(1,694)(433)
Change in value of earn-out and warrant liabilities(21,233)
Changes in operating assets and liabilities:
Accounts receivable and long-term unbilled receivables(14,949)(8,946)
Prepaid expenses and other current assets(4,026)1,204
Deferred contract costs and other assets(7,606)(3,236)
Accounts payable, accrued expenses and other liabilities10,257971
Deferred revenue16,74211,311
Net cash provided by operating activities5,54519,120
Investing activities
Maturity (purchase) of short-term investments(1,431)2,391
Purchase of property and equipment(2,461)(1,023)
Net cash provided by (used in) investing activities(3,892)1,368
Financing activities
Proceeds from recapitalization of Apex shares491,563
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)(2,089)
Purchase of treasury stock(1,628)
Payment of net cash settlement for management options(7,530)
Proceeds from stock option exercises5,566612
Proceeds from sale of common shares of subsidiary7537,505
Repayments of capital leases(25)(49)
Payments of debt issuance costs(300)
Proceeds from issuance of Common stock, net of issuance costs58,669
Collection of promissory note284
Collection of non-recourse promissory note4,639
Net cash provided by financing activities198,61735,559
Effect of exchange rates on cash(1,165)903
Net increase in cash and cash equivalents199,10556,950
Cash and cash equivalents at beginning of period69,11212,162
Cash and cash equivalents at end of period$268,217$69,112
Supplemental disclosures of cash flow information
Cash received (paid) for:
Interest$102$
Income taxes$(3,430)$1,068
Non-cash investing and financing activities
Issuance of common shares in exchange for issuance cost$$2,408
Property and equipment acquired under capital leases$$29
AvePoint, Inc. and Subsidiaries
Non-GAAP Reconciliations
(In thousands)
(Unaudited)
For the Three Months EndedFor the Year Ended
December 31,December 31,
2021202020212020
Non-GAAP operating income
GAAP operating income$(7,672)$(10,793)$(53,491)$(15,437)
Stock-based compensation expense9,03317,53259,50833,767
Non-GAAP operating income$1,361$6,739$6,017$18,330
Non-GAAP operating margin2.5%14.6%3.1%12.1%
Non-GAAP gross profit
GAAP gross profit$38,894$35,528$139,245$111,243
Stock-based compensation expense6872763,477592
Non-GAAP gross profit$39,581$35,804$142,722$111,835
Non-GAAP gross margin73.5%77.6%74.4%73.8%
Non-GAAP sales and marketing
GAAP sales and marketing$27,024$26,664$100,512$76,545
Stock-based compensation expense(2,833)(10,746)(15,906)(19,973)
Non-GAAP sales and marketing$24,191$15,918$84,606$56,572
Non-GAAP sales and marketing as a % of revenue44.9%34.5%44.1%37.3%
Non-GAAP general and administrative
GAAP general and administrative$15,035$15,954$59,221$36,872
Stock-based compensation expense(4,688)(6,420)(24,063)(12,916)
Non-GAAP general and administrative$10,347$9,534$35,158$23,956
Non-GAAP general and administrative as a % of revenue19.2%20.7%18.3%15.8%
Non-GAAP research and development
GAAP research and development$4,132$3,444$31,765$12,204
Stock-based compensation expense(825)(90)(16,062)(286)
Non-GAAP research and development$3,307$3,354$15,703$11,918
Non-GAAP research and development as a % of revenue6.1%7.3%8.2%7.9%

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 https://www.avepoint.com.

All product and company names herein may be trademarks of their registered owners.