AvePoint Announces Second Quarter 2021 Financial Results
AvePoint (NASDAQ: AVPT), the global leader in data security, governance, and resilience, today announced financial results for the second quarter ended June 30, 2021.
“In the second quarter we delivered record results, with revenue of $45.3 million, up 38% year-over-year, driven by the continued growth of Microsoft Teams and strong adoption of our collaboration security technologies,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder of AvePoint. “With the investments we are making across our go-to-market organization, including sales, customer success and channel, we aim to increase our market share of the Microsoft 365 user base, boost our customer retention rate and continue our strong growth in the SMB market via our channel partners.”
Second Quarter 2021 Financial Results
- Total Revenue of $45.3 million, up 38% year-over-year
- Total ARR1 of $139.0 million as of June 30, 2021, up 33% year-over-year
- SaaS Revenue of $20.6 million, up 76% year-over-year
- GAAP Operating Loss of $11.2 million; GAAP Operating Margin of (24.7%)
- Non-GAAP Operating Income of $3.3 million; Non-GAAP Operating Margin of 7.3%
- GAAP net loss attributable to AvePoint, Inc. of $11.6 million or $0.98 per share
- Cash and Cash Equivalents of approximately $66.3 million as of June 30, 2021
- Net proceeds of $204.5 million from business combination which closed on July 1st, subsequent to second quarter end
Second Quarter 2021 Key Highlights
- The AvePoint SaaS cloud platform, AvePoint Online Services, achieved FedRAMP Authorization signifying its SaaS solutions are approved for use across all United States federal agencies at the moderate impact level. The platform was also assessed against the Information Security Registered Assessors Program (IRAP), which ensures compliance with information security and requirements as mandated by the Australian Government
- AvePoint released its Salesforce Cloud Backup for managed service providers (MSPs) across 36 countries and via 58 distributor app marketplaces
- APAC’s leading distributor of cloud solutions and services, rhipe, now offers AvePoint solutions to its managed service provider (MSP) customers
- Continued expansion in user base with more than 21,000 customers worldwide
Financial Outlook
For the third quarter of 2021, AvePoint currently expects:
- Total revenues between $51.5 and $53.5 million
- Non-GAAP operating income between $1.7 and $3.2 million
For the full year ending December 31, 2021, AvePoint currently expects:
- Total revenues between $192.0 and $196.0 million
- Non-GAAP operating income between $4.7 and $7.7 million
Conference Call
AvePoint will host a conference call today on August 10, 2021 to review its second quarter 2021 financial results and to discuss its financial outlook. The call is scheduled to begin at 4:30pm 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.
AvePoint Operations, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue: | ||||||||||||||||
| SaaS | $ | 20,586 | $ | 11,699 | $ | 38,845 | $ | 21,942 | ||||||||
| Term license and support | 11,088 | 7,357 | 19,815 | 15,101 | ||||||||||||
| Services | 7,302 | 7,724 | 13,218 | 15,303 | ||||||||||||
| Maintenance and OEM | 5,458 | 5,776 | 10,867 | 11,781 | ||||||||||||
| Perpetual license | 910 | 400 | 1,399 | 1,490 | ||||||||||||
| Total revenue | 45,344 | 32,956 | 84,144 | 65,617 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| SaaS | 4,564 | 2,543 | 9,004 | 5,057 | ||||||||||||
| Term license and support | 230 | 348 | 503 | 820 | ||||||||||||
| Services | 6,508 | 5,877 | 12,093 | 12,889 | ||||||||||||
| Maintenance and OEM | 418 | 305 | 898 | 674 | ||||||||||||
| Total cost of revenue | 11,720 | 9,073 | 22,498 | 19,440 | ||||||||||||
| Gross profit | 33,624 | 23,883 | 61,646 | 46,177 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 29,001 | 14,010 | 48,302 | 28,051 | ||||||||||||
| General and administrative | 11,664 | 5,291 | 21,956 | 10,449 | ||||||||||||
| Research and development | 3,883 | 2,863 | 7,985 | 5,757 | ||||||||||||
| Depreciation and amortization | 279 | 268 | 537 | 541 | ||||||||||||
| Total operating expenses | 44,827 | 22,432 | 78,780 | 44,798 | ||||||||||||
| Income (loss) from operations | (11,203 | ) | 1,451 | (17,134 | ) | 1,379 | ||||||||||
| Interest income, net | 11 | 5 | 24 | 9 | ||||||||||||
| Other income (expense), net | 62 | 439 | (1 | ) | (389 | ) | ||||||||||
| Income (loss) before income taxes | (11,130 | ) | 1,895 | (17,111 | ) | 999 | ||||||||||
| Income tax benefit | (73 | ) | (6,149 | ) | (1,112 | ) | (6,316 | ) | ||||||||
| Net income (loss) | $ | (11,057 | ) | $ | 8,044 | $ | (15,999 | ) | $ | 7,315 | ||||||
| Net income attributable to redeemable noncontrolling interest | (499 | ) | — | (896 | ) | — | ||||||||||
| Net income (loss) attributable to AvePoint Operations, Inc. | $ | (11,556 | ) | $ | 8,044 | $ | (16,895 | ) | $ | 7,315 | ||||||
| Deemed dividends on preferred stock | (24,742 | ) | (8,063 | ) | (33,536 | ) | (15,798 | ) | ||||||||
| Net loss available to common shareholders | $ | (36,298 | ) | $ | (19 | ) | $ | (50,431 | ) | $ | (8,483 | ) | ||||
| Net loss per share of common stock, basic and diluted | $ | (3.09 | ) | $ | (0.00 | ) | $ | (4.32 | ) | $ | (0.87 | ) | ||||
| Weighted average of shares used in computing net loss per share of common stock, basic and diluted | 11,732 | 9,793 | 11,663 | 9,750 | ||||||||||||
AvePoint Operations, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)
(Unaudited)
| June 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 66,338 | $ | 69,112 | ||||
| Short-term investments | 1,408 | 992 | ||||||
| Accounts receivable, net of allowance of $1,030 and $1,767 at June 30, 2021 and December 31, 2020, respectively | 44,753 | 48,250 | ||||||
| Prepaid expenses and other current assets | 4,319 | 2,343 | ||||||
| Total current assets | 116,818 | 120,697 | ||||||
| Property and equipment, net | 3,039 | 2,663 | ||||||
| Deferred contract costs | 33,781 | 31,943 | ||||||
| Long-term unbilled receivables | 6,440 | 5,499 | ||||||
| Other assets | 12,238 | 8,252 | ||||||
| Total assets | $ | 172,316 | $ | 169,054 | ||||
| Liabilities, mezzanine equity, and stockholders’ deficiency | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 520 | $ | 774 | ||||
| Accrued expenses and other liabilities | 22,115 | 26,245 | ||||||
| Current portion of deferred revenue | 68,974 | 65,203 | ||||||
| Total current liabilities | 91,609 | 92,222 | ||||||
| Long-term portion of deferred revenue | 7,596 | 9,485 | ||||||
| Share-based awards classified as liabilities | 50,220 | 43,502 | ||||||
| Other non-current liabilities | 3,587 | 3,658 | ||||||
| Total liabilities | 153,012 | 148,867 | ||||||
| Commitments and contingencies (Note 10) | ||||||||
| Mezzanine equity | ||||||||
| Redeemable convertible preferred stock, $0.0001 par value; 10,895,226 shares authorized, 4,832,409 and 4,832,409 shares issued and outstanding with aggregate liquidation preferences of $508,273 and $403,361 at June 30, 2021 and December 31, 2020, respectively | 216,926 | 183,390 | ||||||
| Redemption value of common shares | 39,757 | 25,074 | ||||||
| Share-based awards | 1,695 | 1,489 | ||||||
| Redeemable noncontrolling interest | 4,143 | 3,061 | ||||||
| Total mezzanine equity | 262,521 | 213,014 | ||||||
| Stockholders’ deficiency: | ||||||||
| Common stock, $0.0001 par value; 28,000,000 and 28,000,000 shares authorized, 11,946,412 and 11,513,451 shares issued and outstanding, at June 30, 2021 and December 31, 2020, respectively | 12 | 12 | ||||||
| Additional paid-in capital | 112,953 | 105,159 | ||||||
| Accumulated other comprehensive income | 1,848 | 1,791 | ||||||
| Accumulated deficit | (358,030 | ) | (299,789 | ) | ||||
| Total stockholders’ deficiency attributable to AvePoint Operations, Inc. | (243,217 | ) | (192,827 | ) | ||||
| Total liabilities, mezzanine equity, and stockholders’ deficiency | $ | 172,316 | $ | 169,054 | ||||
AvePoint Operations, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| For the Six Months Ended | ||||||||
| June 30, | ||||||||
| 2021 | 2020 | |||||||
| Operating activities | ||||||||
| Net income (loss) | $ | (15,999 | ) | $ | 7,315 | |||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 537 | 541 | ||||||
| Foreign currency remeasurement (gain) loss | (134 | ) | 220 | |||||
| Provision for doubtful accounts | (732 | ) | 818 | |||||
| Stock-based compensation | 17,799 | 2,854 | ||||||
| Gain on disposal of property and equipment | (15 | ) | — | |||||
| Deferred income taxes | (981 | ) | (5,788 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 2,399 | 4,822 | ||||||
| Prepaid expenses and other current assets | (1,994 | ) | 407 | |||||
| Other assets | (1,955 | ) | 719 | |||||
| Accounts payable, accrued expenses and other liabilities | (4,057 | ) | (6,896 | ) | ||||
| Deferred revenue | 3,298 | 964 | ||||||
| Accrued rent obligation | (87 | ) | (206 | ) | ||||
| Net cash provided by (used in) operating activities | (1,921 | ) | 5,770 | |||||
| Investing activities | ||||||||
| Maturity (purchase) of short-term investments, net | (423 | ) | 1,034 | |||||
| Purchase of APXT shares | (1,631 | ) | — | |||||
| Purchase of property and equipment | (897 | ) | (169 | ) | ||||
| Cash provided by (used in) investing activities | (2,951 | ) | 865 | |||||
| Financing activities | ||||||||
| Repayments of capital leases | (14 | ) | (33 | ) | ||||
| Payments of transaction fees | (1,872 | ) | — | |||||
| Proceeds from stock option exercises | 3,277 | 15 | ||||||
| Proceeds from sale of common shares of subsidiary | 753 | — | ||||||
| Payments of debt issuance costs | — | (120 | ) | |||||
| Proceeds from issuance of Common stock | — | 7,000 | ||||||
| Net cash provided by financing activities | 2,144 | 6,862 | ||||||
| Effect of exchange rates on cash | (46 | ) | (284 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | (2,774 | ) | 13,213 | |||||
| Cash and cash equivalents at beginning of period | 69,112 | 12,162 | ||||||
| Cash and cash equivalents at end of period | $ | 66,338 | $ | 25,375 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash received (paid) for: | ||||||||
| Interest | $ | 24 | $ | 8 | ||||
| Income taxes | $ | (2,389 | ) | $ | (529 | ) | ||
| Non-cash investing and financing activities | ||||||||
| Fixed assets acquired under capital leases | $ | — | $ | 28 | ||||
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Non-GAAP gross profit | ||||||||||||||||
| GAAP gross profit | $ | 33,624 | $ | 23,883 | $ | 61,646 | $ | 46,177 | ||||||||
| Stock-based compensation expense | 272 | 190 | 362 | 102 | ||||||||||||
| Non-GAAP gross profit | $ | 33,896 | $ | 24,073 | $ | 62,008 | $ | 46,279 | ||||||||
| Non-GAAP gross margin | 74.8 | % | 73.0 | % | 73.7 | % | 70.5 | % | ||||||||
| Non-GAAP sales and marketing | ||||||||||||||||
| GAAP sales and marketing | $ | 29,001 | $ | 14,010 | $ | 48,302 | $ | 28,051 | ||||||||
| Stock-based compensation expense | (9,791 | ) | (1,510 | ) | (10,902 | ) | (1,310 | ) | ||||||||
| Non-GAAP sales and marketing | $ | 19,210 | $ | 12,500 | $ | 37,400 | $ | 26,741 | ||||||||
| Non-GAAP sales and marketing as a % of revenue | 42.4 | % | 37.9 | % | 44.4 | % | 40.8 | % | ||||||||
| Non-GAAP research and development | ||||||||||||||||
| GAAP research and development | $ | 3,883 | $ | 2,863 | $ | 7,985 | $ | 5,757 | ||||||||
| Stock-based compensation expense | (83 | ) | (72 | ) | (180 | ) | (147 | ) | ||||||||
| Non-GAAP research and development | $ | 3,800 | $ | 2,791 | $ | 7,805 | $ | 5,610 | ||||||||
| Non-GAAP research and development as a % of revenue | 8.4 | % | 8.5 | % | 9.3 | % | 8.5 | % | ||||||||
| Non-GAAP general and administrative | ||||||||||||||||
| GAAP general and administrative | $ | 11,664 | $ | 5,291 | $ | 21,956 | $ | 10,449 | ||||||||
| Stock-based compensation expense | (4,364 | ) | (1,007 | ) | (6,355 | ) | (1,295 | ) | ||||||||
| Non-GAAP general and administrative | $ | 7,300 | $ | 4,284 | $ | 15,601 | $ | 9,154 | ||||||||
| Non-GAAP general and administrative as a % of revenue | 16.1 | % | 13.0 | % | 18.5 | % | 14.0 | % | ||||||||
| Non-GAAP depreciation and amortization | ||||||||||||||||
| GAAP depreciation and amortization | $ | 279 | $ | 268 | $ | 537 | $ | 541 | ||||||||
| Non-GAAP depreciation and amortization | $ | 279 | $ | 268 | $ | 537 | $ | 541 | ||||||||
| Non-GAAP depreciation and amortization as a % of revenue | 0.6 | % | 0.8 | % | 0.6 | % | 0.8 | % | ||||||||
| Non-GAAP operating expenses | ||||||||||||||||
| GAAP operating expenses | $ | 44,827 | $ | 22,432 | $ | 78,780 | $ | 44,798 | ||||||||
| Stock-based compensation expense | (14,238 | ) | (2,589 | ) | (17,437 | ) | (2,752 | ) | ||||||||
| Non-GAAP operating expenses | $ | 30,589 | $ | 19,843 | $ | 61,343 | $ | 42,046 | ||||||||
| Non-GAAP operating expenses as a % of revenue | 67.5 | % | 60.2 | % | 72.9 | % | 64.1 | % | ||||||||
| Non-GAAP operating income | ||||||||||||||||
| GAAP operating income (loss) | $ | (11,203 | ) | $ | 1,451 | $ | (17,134 | ) | $ | 1,379 | ||||||
| Stock-based compensation expense | 14,510 | 2,779 | 17,799 | 2,854 | ||||||||||||
| Non-GAAP operating income | $ | 3,307 | $ | 4,230 | $ | 665 | $ | 4,233 | ||||||||
| Non-GAAP operating margin | 7.3 | % | 12.8 | % | 0.8 | % | 6.5 | % | ||||||||
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 https://www.avepoint.com.
