AvePoint Announces Second Quarter 2021 Financial Results

JERSEY CITY, N.J., Aug. 10, 2021 -- AvePoint, Inc. (NASDAQ: AVPT), the largest data management solutions provider for Microsoft 365, 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)

For the Three Months EndedFor the Six Months Ended
June 30,June 30,
Term license and support11,0887,35719,81515,101
Maintenance and OEM5,4585,77610,86711,781
Perpetual license9104001,3991,490
Total revenue45,34432,95684,14465,617
Cost of revenue:
Term license and support230348503820
Maintenance and OEM418305898674
Total cost of revenue11,7209,07322,49819,440
Gross profit33,62423,88361,64646,177
Operating expenses:
Sales and marketing29,00114,01048,30228,051
General and administrative11,6645,29121,95610,449
Research and development3,8832,8637,9855,757
Depreciation and amortization279268537541
Total operating expenses44,82722,43278,78044,798
Income (loss) from operations(11,203)1,451(17,134)1,379
Interest income, net115249
Other income (expense), net62439(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 diluted11,7329,79311,6639,750

AvePoint Operations, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except share and per share amounts)

June 30,December 31,
Current assets
Cash and cash equivalents$66,338$69,112
Short-term investments1,408992
Accounts receivable, net of allowance of $1,030 and $1,767 at June 30, 2021 and December 31, 2020, respectively44,75348,250
Prepaid expenses and other current assets4,3192,343
Total current assets116,818120,697
Property and equipment, net3,0392,663
Deferred contract costs33,78131,943
Long-term unbilled receivables6,4405,499
Other assets12,2388,252
Total assets$172,316$169,054
Liabilities, mezzanine equity, and stockholders’ deficiency
Current liabilities:
Accounts payable$520$774
Accrued expenses and other liabilities22,11526,245
Current portion of deferred revenue68,97465,203
Total current liabilities91,60992,222
Long-term portion of deferred revenue7,5969,485
Share-based awards classified as liabilities50,22043,502
Other non-current liabilities3,5873,658
Total liabilities153,012148,867
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, respectively216,926183,390
Redemption value of common shares39,75725,074
Share-based awards1,6951,489
Redeemable noncontrolling interest4,1433,061
Total mezzanine equity262,521213,014
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, respectively1212
Additional paid-in capital112,953105,159
Accumulated other comprehensive income1,8481,791
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)

For the Six Months Ended
June 30,
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 amortization537541
Foreign currency remeasurement (gain) loss(134)220
Provision for doubtful accounts(732)818
Stock-based compensation17,7992,854
Gain on disposal of property and equipment(15)
Deferred income taxes(981)(5,788)
Changes in operating assets and liabilities:
Accounts receivable2,3994,822
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 revenue3,298964
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 exercises3,27715
Proceeds from sale of common shares of subsidiary753
Payments of debt issuance costs(120)
Proceeds from issuance of Common stock7,000
Net cash provided by financing activities2,1446,862
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 period69,11212,162
Cash and cash equivalents at end of period$66,338$25,375
Supplemental disclosures of cash flow information
Cash received (paid) for:
Income taxes$(2,389)$(529)
Non-cash investing and financing activities
Fixed assets acquired under capital leases$$28
For the Three Months EndedFor the Six Months Ended
June 30,June 30,
Non-GAAP gross profit
GAAP gross profit$33,624$23,883$61,646$46,177
Stock-based compensation expense272190362102
Non-GAAP gross profit$33,896$24,073$62,008$46,279
Non-GAAP gross margin74.8%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 revenue42.4%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 revenue8.4%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 revenue16.1%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 revenue0.6%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$42,046
Non-GAAP operating expenses as a % of revenue67.5%60.2%72.9%64.1%
Non-GAAP operating income
GAAP operating income (loss)$(11,203)$1,451$(17,134)$1,379
Stock-based compensation expense14,5102,77917,7992,854
Non-GAAP operating income$3,307$4,230$665$4,233
Non-GAAP operating margin7.3%12.8%0.8%6.5%

About AvePoint

Securing the Future. AvePoint is the global leader in data management and data governance, and over 21,000 customers worldwide rely on our solutions to secure the digital workplace across Microsoft, Google, Salesforce and other cloud environments. AvePoint's global 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.

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