AvePoint Announces Fourth Quarter and Full Year 2022 Financial Results
Full year SaaS revenue of $117.2 million, representing 37% year-over-year growth, 46% adjusted for constant currency
Full year total revenue of $232.3 million, representing 21% year-over-year growth, 29% adjusted for constant currency
Total ARR of $201.7 million, representing 27% year-over-year growth, 32% adjusted for FX impact
AvePoint (NASDAQ: AVPT), the global leader in data security, governance, and resilience, today announced financial results for the fourth quarter and full year ended December 31, 2022.
“Our fourth quarter results were a strong close to 2022, highlighted by 32% ARR growth and 26% revenue growth, both adjusted for the impact of FX,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder of AvePoint. “Despite an uncertain macro environment, our strong topline performance underscores the ongoing need for organizations around the world to optimize and secure the digital workplace.”
“At the same time, we continue to aggressively manage expenses across the business, and we plan to show significant profitability improvements in 2023. We are excited for the many opportunities ahead of us to help companies rapidly reduce costs, improve productivity, and make more informed business decisions, and we look forward to discussing these and other strategic priorities at our first Investor Day on March 22nd.”
Fourth Quarter 2022 Financial Highlights
- Revenue: Total revenue was $63.6 million, up 18% from the fourth quarter of 2021 and up 26% year-over-year on a constant currency basis. Within total revenue, SaaS revenue was $33.0 million, up 36% from the fourth quarter of 2021 and up 46% year-over-year on a constant currency basis.
- Gross Profit: GAAP gross profit was $45.4 million, compared to $38.9 million for the fourth quarter of 2021. Non-GAAP gross profit was $46.1 million, compared to $39.6 million for the fourth quarter of 2021. Non-GAAP gross margin was 72.4%, compared to 73.5% for the fourth quarter of 2021.
- Operating Income/(Loss): GAAP operating loss was $(8.0) million, compared to $(7.7) million for the fourth quarter of 2021. Non-GAAP operating income was $1.4 million, compared to $1.4 million for the fourth quarter of 2021. Excluding the one-time expenses associated with the reduction in workforce the Company announced in December of 2022, non-GAAP operating income would have been $4.5 million.
Full Year 2022 Financial Highlights
- Revenue: Total revenue was $232.3 million, up 21% from the full year 2021 and up 29% year-over-year on a constant currency basis. Within total revenue, SaaS revenue was $117.2 million, up 37% from the full year 2021 and up 46% year-over-year on a constant currency basis.
- Gross Profit: GAAP gross profit was $167.2 million, compared to $139.2 million for the full year 2021. Non-GAAP gross profit was $169.9 million, compared to $142.7 million for the full year 2021. Non-GAAP gross margin was 73.1%, compared to 74.4% for the full year 2021.
- Operating Income/(Loss): GAAP operating loss was $(41.1) million, compared to $(53.5) million for the full year 2021. Non-GAAP operating loss was $(2.9) million, compared to non-GAAP operating income of $6.0 million for the full year 2021. Excluding the one-time expenses associated with the reduction in workforce the Company announced in December of 2022, non-GAAP operating income would have been $0.2 million.
- Cash and short-term investments: $229.8 million as of December 31, 2022.
Fourth Quarter 2022 Key Performance Indicators and Business Highlights
- ARR as of the end of 2022 was $201.7 million, up 27% year-over-year. Adjusted for FX, ARR grew 32%.
- Dollar-based net retention rate was 105% and was 108% adjusted for FX.
- Won a highly competitive bid for a substantial FinTech innovation project for our third-largest customer in Singapore, which will leverage our platform technology to ensure the regulatory framework is in place for a consortium of global financial institutions to detect and prevent money laundering while protecting client privacy.
Financial Outlook
For the first quarter of 2023, the Company expects:
- Total revenues of $57.5 million to $58.5 million, or 15% year-over-year growth at the midpoint.
- Non-GAAP operating loss of $(2.0) million to $(1.0) million.
For the full year 2023, the Company expects:
- Total ARR of $238.4 million to $244.4 million, or 20% year-over-year growth at the midpoint.
- Total revenues of $253.8 million to $260.8 million, or 11% year-over-year growth at the midpoint.
- Non-GAAP operating income of $12.0 million to $15.0 million.
Quarterly Conference Call
AvePoint will host a conference call today, March 09, 2023, to review its fourth quarter and full year 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 passcode for the call is 4575329. 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
Securing the Future. AvePoint is a global leader in data security, governance, and resilience, and over 21,000 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.
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 intangible assets. AvePoint believes the presentation of its non-GAAP financial measures provides a better representation as to the overall operating performance of the company. 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
AvePoint
Jamie Arestia
ir@avepoint.com
(551) 220-5654
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 | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Revenue: | ||||||||||||||||
| SaaS | $ | 33,049 | $ | 24,325 | $ | 117,180 | $ | 85,580 | ||||||||
| Term license and support | 14,713 | 13,678 | 57,214 | 50,970 | ||||||||||||
| Services | 12,052 | 10,558 | 41,283 | 31,919 | ||||||||||||
| Maintenance | 3,606 | 4,862 | 15,868 | 21,022 | ||||||||||||
| Perpetual license | 188 | 415 | 794 | 2,418 | ||||||||||||
| Total revenue | 63,608 | 53,838 | 232,339 | 191,909 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| SaaS | 7,966 | 5,169 | 26,617 | 19,039 | ||||||||||||
| Term license and support | 396 | 236 | 1,969 | 950 | ||||||||||||
| Services | 9,707 | 9,198 | 35,629 | 30,726 | ||||||||||||
| Maintenance | 169 | 341 | 908 | 1,949 | ||||||||||||
| Total cost of revenue | 18,238 | 14,944 | 65,123 | 52,664 | ||||||||||||
| Gross profit | 45,370 | 38,894 | 167,216 | 139,245 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 28,376 | 27,024 | 109,805 | 100,512 | ||||||||||||
| General and administrative | 16,645 | 15,035 | 64,874 | 59,221 | ||||||||||||
| Research and development | 7,272 | 4,132 | 30,519 | 31,765 | ||||||||||||
| Depreciation and amortization | 1,125 | 375 | 3,084 | 1,238 | ||||||||||||
| Total operating expenses | 53,418 | 46,566 | 208,282 | 192,736 | ||||||||||||
| Loss from operations | (8,048 | ) | (7,672 | ) | (41,066 | ) | (53,491 | ) | ||||||||
| (Loss) gain on earn-out and warrant liabilities | (2,351 | ) | 7,583 | 4,497 | 21,233 | |||||||||||
| Interest (expense) income, net | (90 | ) | 22 | (40 | ) | 102 | ||||||||||
| Other income (expense), net | 3,781 | (332 | ) | 2,959 | (632 | ) | ||||||||||
| Loss before income taxes | (6,708 | ) | (399 | ) | (33,650 | ) | (32,788 | ) | ||||||||
| Income tax expense | 4,939 | 7,090 | 5,038 | 457 | ||||||||||||
| Net loss | $ | (11,647 | ) | (7,489 | ) | $ | (38,688 | ) | $ | (33,245 | ) | |||||
| Net income attributable to and accretion of redeemable noncontrolling interest | (1,072 | ) | (561 | ) | (2,942 | ) | (1,974 | ) | ||||||||
| Net loss attributable to AvePoint, Inc. | $ | (12,719 | ) | (8,050 | ) | $ | (41,630 | ) | $ | (35,219 | ) | |||||
| Deemed dividends on preferred stock | — | — | — | (32,928 | ) | |||||||||||
| Net loss available to common shareholders | $ | (12,719 | ) | (8,050 | ) | $ | (41,630 | ) | $ | (68,147 | ) | |||||
| Basic and diluted loss per share | $ | (0.07 | ) | (0.04 | ) | $ | (0.23 | ) | $ | (0.48 | ) | |||||
| Basic and diluted shares used in computing loss per share | 181,795 | 182,133 | 181,957 | 141,596 | ||||||||||||
AvePoint, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except par value)
(Unaudited)
| December 31, | December 31, | |||||||
| 2022 | 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 227,188 | $ | 268,217 | ||||
| Short-term investments | 2,620 | 2,411 | ||||||
| Accounts receivable, net of allowance of $725 and $838 as of December 31, 2022 and December 31, 2021, respectively | 66,474 | 55,067 | ||||||
| Prepaid expenses and other current assets | 10,013 | 8,461 | ||||||
| Total current assets | 306,295 | 334,156 | ||||||
| Property and equipment, net | 5,537 | 3,922 | ||||||
| Goodwill | 18,904 | — | ||||||
| Intangible assets, net | 11,079 | — | ||||||
| Operating lease right-of-use assets | 15,855 | — | ||||||
| Deferred contract costs | 48,553 | 38,926 | ||||||
| Other assets | 9,310 | 11,734 | ||||||
| Total assets | $ | 415,533 | $ | 388,738 | ||||
| Liabilities, mezzanine equity, and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,519 | $ | 1,824 | ||||
| Accrued expenses and other liabilities | 47,784 | 35,062 | ||||||
| Current portion of deferred revenue | 93,405 | 74,294 | ||||||
| Total current liabilities | 142,708 | 111,180 | ||||||
| Long-term operating lease liabilities | 11,348 | — | ||||||
| Long-term portion of deferred revenue | 8,085 | 8,038 | ||||||
| Earn-out shares liabilities | 6,631 | 10,012 | ||||||
| Other non-current liabilities | 3,607 | 3,943 | ||||||
| Total liabilities | 172,379 | 133,173 | ||||||
| Commitments and contingencies | ||||||||
| Mezzanine equity | ||||||||
| Redeemable noncontrolling interest | 14,007 | 5,210 | ||||||
| Total mezzanine equity | 14,007 | 5,210 | ||||||
| Stockholders’ equity | ||||||||
| Common stock, $0.0001 par value; 1,000,000 shares authorized, 185,278 and 181,822 shares issued and outstanding | 19 | 18 | ||||||
| Additional paid-in capital | 665,715 | 625,056 | ||||||
| Treasury stock | (21,666 | ) | (1,739 | ) | ||||
| Accumulated other comprehensive income | 2,006 | 2,317 | ||||||
| Accumulated deficit | (416,927 | ) | (375,297 | ) | ||||
| Total stockholders’ equity | 229,147 | 250,355 | ||||||
| Total liabilities, mezzanine equity, and stockholders’ equity | $ | 415,533 | $ | 388,738 | ||||
AvePoint, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Year Ended | ||||||||
| December 31, | ||||||||
| 2022 | 2021 | |||||||
| Operating activities | ||||||||
| Net loss | $ | (38,688 | ) | $ | (33,245 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization | 3,494 | 1,238 | ||||||
| Operating lease right-of-use assets expense | 5,945 | — | ||||||
| Foreign currency remeasurement loss | 835 | 1,308 | ||||||
| Stock-based compensation | 37,218 | 59,508 | ||||||
| Deferred income taxes | 3,701 | (175 | ) | |||||
| Other | (607 | ) | (755 | ) | ||||
| Change in value of earn-out and warrant liabilities | (4,402 | ) | (21,233 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (14,388 | ) | (9,012 | ) | ||||
| Prepaid expenses and other current assets | (2,108 | ) | (5,914 | ) | ||||
| Deferred contract costs and other assets | (9,596 | ) | (8,121 | ) | ||||
| Accounts payable, accrued expenses, operating lease liabilities and other liabilities | (2,553 | ) | 10,626 | |||||
| Deferred revenue | 20,375 | 10,805 | ||||||
| Net cash (used in) provided by operating activities | (774 | ) | 5,030 | |||||
| Investing activities | ||||||||
| Maturities of investments | 183,554 | — | ||||||
| Purchases of investments | (180,969 | ) | (916 | ) | ||||
| Net assets acquired from business combinations and asset acquisitions, net of cash acquired | (18,572 | ) | — | |||||
| Capitalization of internal use software | (1,612 | ) | — | |||||
| Purchase of property and equipment | (3,853 | ) | (2,461 | ) | ||||
| Net cash used in investing activities | (21,452 | ) | (3,377 | ) | ||||
| Financing activities | ||||||||
| Proceeds from recapitalization of Apex shares, net of transaction fees of $49,990 | — | 441,573 | ||||||
| Redemption of redeemable convertible preferred stock | — | (130,925 | ) | |||||
| Redemption of Legacy AvePoint common stock | — | (106,169 | ) | |||||
| Purchase of common stock | (19,927 | ) | (1,628 | ) | ||||
| Payment of net cash settlement for management options | — | (7,530 | ) | |||||
| Proceeds from stock option exercises | 2,818 | 5,566 | ||||||
| Proceeds from sale of common shares of subsidiary | — | 753 | ||||||
| Repayments of finance leases | (39 | ) | (25 | ) | ||||
| Payments of transaction fees by Legacy AvePoint | — | (2,998 | ) | |||||
| Net cash (used in) provided by financing activities | (17,148 | ) | 198,617 | |||||
| Effect of exchange rates on cash | (1,655 | ) | (1,165 | ) | ||||
| Net (decrease) increase in cash and cash equivalents | (41,029 | ) | 199,105 | |||||
| Cash and cash equivalents at beginning of period | 268,217 | 69,112 | ||||||
| Cash and cash equivalents at end of period | $ | 227,188 | $ | 268,217 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Income taxes paid | $ | 3,320 | $ | 4,037 | ||||
| Noncash acquisition | $ | 5,635 | $ | — | ||||
AvePoint, Inc. and Subsidiaries
Non-GAAP Reconciliations
(In thousands)
(Unaudited)
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Non-GAAP operating income | ||||||||||||||||
| GAAP operating loss | $ | (8,048 | ) | $ | (7,672 | ) | $ | (41,066 | ) | $ | (53,491 | ) | ||||
| Stock-based compensation expense | 8,931 | 9,033 | 37,218 | 59,508 | ||||||||||||
| Amortization of acquired intangible assets | 526 | — | 955 | — | ||||||||||||
| Non-GAAP operating income (loss) | $ | 1,409 | $ | 1,361 | $ | (2,893 | ) | $ | 6,017 | |||||||
| Non-GAAP operating margin | 2.2 | % | 2.5 | % | -1.2 | % | 3.1 | % | ||||||||
| Non-GAAP gross profit | ||||||||||||||||
| GAAP gross profit | $ | 45,370 | $ | 38,894 | $ | 167,216 | $ | 139,245 | ||||||||
| Stock-based compensation expense | 692 | 687 | 2,640 | 3,477 | ||||||||||||
| Non-GAAP gross profit | $ | 46,062 | $ | 39,581 | $ | 169,856 | $ | 142,722 | ||||||||
| Non-GAAP gross margin | 72.4 | % | 73.5 | % | 73.1 | % | 74.4 | % | ||||||||
| Non-GAAP sales and marketing | ||||||||||||||||
| GAAP sales and marketing | $ | 28,376 | $ | 27,024 | $ | 109,805 | $ | 100,512 | ||||||||
| Stock-based compensation expense | (2,688 | ) | (2,833 | ) | (11,393 | ) | (15,906 | ) | ||||||||
| Non-GAAP sales and marketing | $ | 25,688 | $ | 24,191 | $ | 98,412 | $ | 84,606 | ||||||||
| Non-GAAP sales and marketing as a % of revenue | 40.4 | % | 44.9 | % | 42.4 | % | 44.1 | % | ||||||||
| Non-GAAP general and administrative | ||||||||||||||||
| GAAP general and administrative | $ | 16,645 | $ | 15,035 | $ | 64,874 | $ | 59,221 | ||||||||
| Stock-based compensation expense | (4,573 | ) | (4,688 | ) | (19,398 | ) | (24,063 | ) | ||||||||
| Non-GAAP general and administrative | $ | 12,072 | $ | 10,347 | $ | 45,476 | $ | 35,158 | ||||||||
| Non-GAAP general and administrative as a % of revenue | 19.0 | % | 19.2 | % | 19.6 | % | 18.3 | % | ||||||||
| Non-GAAP research and development | ||||||||||||||||
| GAAP research and development | $ | 7,272 | $ | 4,132 | $ | 30,519 | $ | 31,765 | ||||||||
| Stock-based compensation expense | (978 | ) | (825 | ) | (3,787 | ) | (16,062 | ) | ||||||||
| Non-GAAP research and development | $ | 6,294 | $ | 3,307 | $ | 26,732 | $ | 15,703 | ||||||||
| Non-GAAP research and development as a % of revenue | 9.9 | % | 6.1 | % | 11.5 | % | 8.2 | % | ||||||||
