AvePoint Announces Second Quarter 2022 Financial Results

Second quarter SaaS revenue of $27.6 million, representing 34% year-over-year growth, 43% adjusted for constant currency

Second quarter total revenue of $55.7 million, representing 23% year-over-year growth, 31% adjusted for constant currency

Total ARR of $178.2 million, representing 28% year-over-year growth, 29% adjusted for FX impact

JERSEY CITY, N.J., Aug. 11, 2022 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ: AVPT), the most advanced SaaS and data management platform provider, today announced financial results for the second quarter ended June 30, 2022.

“Q2 was yet another quarter of solid execution with strong results demonstrating the durability of our business in a challenging macro environment,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder of AvePoint. “Technology plays an important role for organizations across every sector and yet the continual complex nature of SaaS environments comes with inherent challenges. Solving these challenges continues to be a top priority for our customers who understand how our solutions can secure their digital collaboration data, sustain connections between people, ensure business continuity and provide a clear and measurable ROI.”

Second Quarter 2022 Financial Highlights

  • Revenue: Total revenue for the second quarter of 2022 was $55.7 million, up 23% from the second quarter of 2021 and up 31% year over year on a constant currency basis. Within total revenue, SaaS revenue was $27.6 million, up 34% from the second quarter of 2021 and up 43% year over year on a constant currency basis.
  • Gross Profit: Gross profit for the second quarter of 2022 was $40.3 million, compared to $33.6 million for the second quarter of 2021. Gross margin for the second quarter of 2022 was 72.3%, compared to 74.2% for the second quarter of 2021. Non-GAAP gross profit for the second quarter of 2022 was $41.0 million, compared to $33.9 million for the second quarter of 2021. Non-GAAP gross margin was 73.6% for the second quarter of 2022, compared to 74.8% for the second quarter of 2021.
  • Operating Income/(Loss): Operating loss for the second quarter of 2022 was $(11.8) million, compared to $(11.2) million for the second quarter of 2021. Non-GAAP operating loss for the second quarter of 2022 was $(1.3) million, compared to $3.3 million for the second quarter of 2021.
  • Cash and short-term investments: $246.6 million as of June 30, 2022.

Second Quarter Key Highlights

  • ARR for the second quarter was $178.2 million dollars. Excluding the $1.5 million dollar FX headwind, ARR grew by $39.2 million dollars year-over-year, representing 28% percent year-over-year growth.
  • Reported dollar-based net retention rate of 106%, 107% adjusted for FX impact.
  • Added four new solutions on Microsoft AppSource, an online cloud marketplace providing tailored line-of-business solutions.
  • Enhanced robust data protection capabilities with the addition of Microsoft Azure backup.
  • Garnered industry recognition for continued innovation, winning the 2022 EdTech Breakthrough Award and multiple channel program awards in addition to being a finalist for 2022 Microsoft Partner of the Year Awards in education and government.
  • Through June 30, 2022, repurchased approximately 1.9 million shares under the share repurchase program at a cost of approximately $10 million.

Financial Outlook

Since March 31, 2022, we have seen an incremental strengthening of the U.S. dollar resulting in a foreign exchange headwind in fiscal 2022. We now expect the total FX impact to be approximately $4.8 million dollars on ARR and $5 million dollars on revenue. Our revised guidance assumes this trend and that the challenging macroeconomic environment will continue for the remainder of the year.

  • Third Quarter 2022 Guidance: Total revenue is expected to be in the range of $62 million to $64 million or approximately 17% year-over-year growth, 23% adjusted for constant currency. Non-GAAP operating income is expected to be in the range of $1 million to $2 million.
  • Full Year 2022 Guidance: Total revenue is expected to be in the range of $230.0 million to $234.0 million or approximately 21% year-over-year growth, 26% adjusted for constant currency. 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 $202 million to $206 million or approximately 28% year-over-year growth, 31% adjusted for FX impact.

Quarterly Conference Call

AvePoint will host a conference call today, August 11, 2022, to review its second quarter 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 conference ID for the call is 10169265. 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 management and data governance, 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. In order for AvePoint’s investors to be better able to compare its current results with those of previous periods, 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. AvePoint believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of its historical financial performance. 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.


Investor Contact

ICR for AvePoint
Marc P. Griffin
ir@avepoint.com
646-277-1290

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 Six Months Ended
June 30, June 30,
2022 2021 2022 2021
Revenue:
SaaS $ 27,619 $ 20,586 $ 54,172 $ 38,845
Term license and support 14,011 11,088 24,213 19,815
Services 9,848 7,302 18,773 13,218
Maintenance 4,067 5,458 8,508 10,867
Perpetual license 156 910 326 1,399
Total revenue 55,701 45,344 105,992 84,144
Cost of revenue:
SaaS 6,120 4,564 11,640 9,004
Term license and support 482 230 1,058 503
Services 8,550 6,508 16,809 12,093
Maintenance 275 418 550 898
Total cost of revenue 15,427 11,720 30,057 22,498
Gross profit 40,274 33,624 75,935 61,646
Operating expenses:
Sales and marketing 27,174 29,001 54,228 48,302
General and administrative 16,322 11,664 31,864 21,956
Research and development 7,892 3,883 14,294 7,985
Depreciation and amortization 629 279 1,140 537
Total operating expenses 52,017 44,827 101,526 78,780
Loss from operations (11,743 ) (11,203 ) (25,591 ) (17,134 )
Gain on earn-out and warrant liabilities 2,668 5,935
Interest income, net 20 11 34 24
Other income (expense), net (693 ) 62 (870 ) (1 )
Loss before income taxes (9,748 ) (11,130 ) (20,492 ) (17,111 )
Income tax benefit (546 ) (73 ) (237 ) (1,112 )
Net loss $ (9,202 ) $ (11,057 ) $ (20,255 ) $ (15,999 )
Net income attributable to and accretion of redeemable noncontrolling interest (627 ) (499 ) (1,244 ) (896 )
Net loss attributable to AvePoint, Inc. $ (9,829 ) $ (11,556 ) $ (21,499 ) $ (16,895 )
Deemed dividends on preferred stock (24,742 ) (33,536 )
Net loss available to common shareholders $ (9,829 ) $ (36,298 ) $ (21,499 ) $ (50,431 )
Basic and diluted loss per share $ (0.05 ) $ (0.36 ) $ (0.12 ) $ (0.50 )
Basic and diluted shares used in computing loss per share 182,491 101,968 182,661 101,368


AvePoint, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except par value)
(Unaudited)

June 30, December 31,
2022 2021
Assets
Current assets:
Cash and cash equivalents $ 65,062 $ 268,217
Short-term investments 181,545 2,411
Accounts receivable, net of allowance of $1,320 and $838 at June 30, 2022 and December 31, 2021, respectively 51,441 55,067
Prepaid expenses and other current assets 6,248 8,461
Total current assets 304,296 334,156
Property and equipment, net 5,179 3,922
Goodwill 4,744
Other intangible assets, net 5,156
Operating lease right-of-use assets 18,068
Deferred contract costs 40,474 38,926
Other assets 10,004 11,734
Total assets $ 387,921 $ 388,738
Liabilities, mezzanine equity, and stockholders’ equity
Current liabilities:
Accounts payable $ 2,100 $ 1,824
Accrued expenses and other liabilities 32,730 35,062
Current portion of deferred revenue 73,795 74,294
Total current liabilities 108,625 111,180
Long-term operating lease liabilities 13,690
Long-term portion of deferred revenue 7,151 8,038
Earn-out shares liabilities 4,770 10,012
Other non-current liabilities 4,261 3,943
Total liabilities 138,497 133,173
Commitments and contingencies
Mezzanine equity
Redeemable noncontrolling interest 12,173 5,210
Total mezzanine equity 12,173 5,210
Stockholders’ equity
Common stock, $0.0001 par value; 1,000,000 shares authorized, 181,331 and 181,822 shares issued and outstanding, at June 30, 2022 and December 31, 2021, respectively 18 18
Additional paid-in capital 644,931 625,056
Treasury (TSRMF) stock (11,791 ) (1,739 )
Accumulated other comprehensive income 889 2,317
Accumulated deficit (396,796 ) (375,297 )
Total stockholders’ equity 237,251 250,355
Total liabilities, mezzanine equity, and stockholders’ equity $ 387,921 $ 388,738


AvePoint, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

Six Months Ended
June 30,
2022 2021
Operating activities
Net loss $ (20,255 ) $ (15,999 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 1,333 537
Operating lease right-of-use assets expense 2,649
Foreign currency remeasurement loss (gain) 1,386 (134 )
Provision for doubtful accounts 519 (732 )
Stock-based compensation 18,678 17,799
Gain on disposal of property and equipment (45 ) (15 )
Deferred income taxes (37 ) (981 )
Change in value of earn-out and warrant liabilities (5,840 )
Changes in operating assets and liabilities:
Accounts receivable and long-term unbilled receivables 2,522 2,399
Prepaid expenses and other current assets 1,452 (1,994 )
Deferred contract costs and other assets (5,025 ) (1,955 )
Accounts payable, accrued expenses and other liabilities (6,654 ) (4,144 )
Deferred revenue 2,721 3,298
Net cash used in operating activities (6,596 ) (1,921 )
Investing activities
Maturities of investments 1,093
Purchases of investments (180,041 ) (423 )
Purchase of APXT shares (1,631 )
Net assets acquired from business combinations and asset acquisitions, net of cash acquired (2,222 )
Capitalization of internal use software (1,174 )
Purchase of property and equipment (2,234 ) (897 )
Net cash used in investing activities (184,578 ) (2,951 )
Financing activities
Payments of transaction fees (1,872 )
Purchase of common stock (10,042 )
Proceeds from stock option exercises 1,719 3,277
Proceeds from sale of common shares of subsidiary 753
Repayments of finance leases (11 ) (14 )
Net cash provided by (used in) financing activities (8,334 ) 2,144
Effect of exchange rates on cash (3,647 ) (46 )
Net decrease in cash and cash equivalents (203,155 ) (2,774 )
Cash and cash equivalents at beginning of period 268,217 69,112
Cash and cash equivalents at end of period $ 65,062 $ 66,338
Supplemental disclosures of cash flow information
Income taxes paid $ 420 $ 2,389
Noncash acquisition $ 5,635 $


AvePoint, Inc. and Subsidiaries
Non-GAAP Reconciliations
(In thousands)
(Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
2022 2021 2022 2021
Non-GAAP operating income
GAAP operating loss $ (11,743 ) $ (11,203 ) $ (25,591 ) $ (17,134 )
Stock-based compensation expense 10,404 14,510 18,678 17,799
Non-GAAP operating income (loss) $ (1,339 ) $ 3,307 $ (6,913 ) $ 665
Non-GAAP operating margin -2.4 % 7.3 % -6.5 % 0.8 %
Non-GAAP gross profit
GAAP gross profit $ 40,274 $ 33,624 $ 75,935 $ 61,646
Stock-based compensation expense 703 272 1,281 362
Non-GAAP gross profit $ 40,977 $ 33,896 $ 77,216 $ 62,008
Non-GAAP gross margin 73.6 % 74.8 % 72.9 % 73.7 %
Non-GAAP sales and marketing
GAAP sales and marketing $ 27,174 $ 29,001 $ 54,228 $ 48,302
Stock-based compensation expense (3,396 ) (9,791 ) (5,858 ) (10,902 )
Non-GAAP sales and marketing $ 23,778 $ 19,210 $ 48,370 $ 37,400
Non-GAAP sales and marketing as a % of revenue 42.7 % 42.4 % 45.6 % 44.4 %
Non-GAAP general and administrative
GAAP general and administrative $ 16,322 $ 11,664 $ 31,864 $ 21,956
Stock-based compensation expense (5,281 ) (4,364 ) (9,765 ) (6,355 )
Non-GAAP general and administrative $ 11,041 $ 7,300 $ 22,099 $ 15,601
Non-GAAP general and administrative as a % of revenue 19.8 % 16.1 % 20.8 % 18.5 %
Non-GAAP research and development
GAAP research and development $ 7,892 $ 3,883 $ 14,294 $ 7,985
Stock-based compensation expense (1,024 ) (83 ) (1,774 ) (180 )
Non-GAAP research and development $ 6,868 $ 3,800 $ 12,520 $ 7,805
Non-GAAP research and development as a % of revenue 12.3 % 8.4 % 11.8 % 9.3 %


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Source: AvePoint, Inc.

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