AvePoint Announces Third Quarter 2021 Financial Results

JERSEY CITY, N.J., Nov. 15, 2021-- AvePoint, Inc. (NASDAQ: AVPT), the largest data management solutions provider for Microsoft 365, today announced financial results for the third quarter ended September 30, 2021.

"AvePoint delivered its eleventh consecutive record quarter with total revenue of $54 million and 79% year over year growth in subscription revenue for our SaaS and data management platform," said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. "With most companies still in the early stages of their SaaS optimization and multi-cloud shifts, there is a massive market opportunity for AvePoint to manage and protect digital collaboration data on a recurring basis that will only increase as companies' SaaS operations become more mature and complex."

Third Quarter 2021 Financial Results

  • Total Revenue of $53.9 million, up 36% year-over-year
  • Total ARR of $147.5 million as of September 30, 2021, up 32% year-over-year
  • SaaS Revenue of $22.4 million, up 59% year-over-year
  • GAAP Operating Loss of $28.7 million
  • Non-GAAP Operating Income of $4.0 million
  • Cash and Short-Term Investments of approximately $262.3 million as of September 30, 2021

Third Quarter 2021 Key Highlights

  • Launched first global partner program, designed to support the unique needs of different types of channel partners as they build services around digital collaboration.
  • AvePoint was awarded a $37 million SGD ($27.5 million USD) contract from lead agency Temasek Polytechnic to deploy a training management platform for career professionals. The platform will be powered by AvePoint EduTech and will be available to six institutions of higher learning (IHL) for over 100,000 students.
  • Maintained triple digit growth in monthly recurring revenue (MRR) tied to the managed services provider (MSP) business.
  • Achieved record level sequential growth in accounts with over $100k in annual recurring revenue (ARR).

Financial Outlook

For the fourth quarter of 2021, AvePoint currently expects:

  • Total revenues between $56.4 and $58.4 million
  • Non-GAAP operating income between break even and $1.5 million

For the full year ending December 31, 2021, AvePoint currently expects:

  • Total revenues between $194.4 and $196.4 million
  • Non-GAAP operating income between $4.7 and $6.2 million

Conference Call

AvePoint will host a conference call today on November 15, 2021 to review its third quarter 2021 financial results and to discuss its financial outlook. The call is scheduled to begin at 8:30am 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, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)

For the Three Months EndedFor the Nine Months Ended
September 30,September 30,
Termed license and support17,4778,17137,29223,272
Maintenance and OEM5,2936,05616,16017,837
Perpetual license6046052,0032,095
Total revenue53,92739,794138,071105,411
Cost of revenue:
Termed license and support2114377141,257
Maintenance and OEM7103041,608978
Total cost of revenue15,22210,25637,72029,696
Gross profit38,70529,538100,35175,715
Operating expenses:
Sales and marketing25,18621,83073,48849,881
General and administrative22,23010,46944,18620,918
Research and development19,6483,00327,6338,760
Depreciation and amortization326259863800
Total operating expenses67,39035,561146,17080,359
Loss from operations(28,685)(6,023)(45,819)(4,644)
Gain on earn-out and warrant liabilities13,65013,650
Interest income, net56178026
Other income (expense), net(299)65(300)(324)
Loss before income taxes(15,278)(5,941)(32,389)(4,942)
Income tax (benefit) expense(5,521)6,244(6,633)(72)
Net loss$(9,757)$(12,185)$(25,756)$(4,870)
Net loss attributable to and accretion of redeemable noncontrolling interest(517)(1,413)
Net loss attributable to AvePoint, Inc.$(10,274)$(12,185)$(27,169)$(4,870)
Deemed dividends on preferred stock608(5,615)(32,928)(21,413)
Net loss available to common shareholders$(9,666)$(17,800)$(60,097)$(26,283)
Loss per share:
Shares used in computing loss per share:

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

September 30,December 31,
Current assets:
Cash and cash equivalents$260,704$69,112
Short-term investments1,614992
Accounts receivable, net of allowance of $878 and $1,767 at September 30, 2021 and December 31, 2020, respectively54,22648,250
Prepaid expenses and other current assets13,0862,343
Total current assets329,630120,697
Property and equipment, net3,2522,663
Deferred contract costs35,26731,943
Long-term unbilled receivables6,1045,499
Other assets5,9118,252
Total assets$380,164$169,054
Liabilities, mezzanine equity, and stockholders deficiency
Current liabilities:
Accounts payable$2,265$774
Accrued expenses and other liabilities25,78226,245
Current portion of deferred revenue71,25165,203
Total current liabilities99,29892,222
Long-term portion of deferred revenue6,8759,485
Share-based awards classified as liabilities43,502
Earn-out liabilities17,125
Warrant liabilities795
Other non-current liabilities3,9473,658
Total liabilities128,040148,867
Commitments and contingencies (Note 10)
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, 2020183,390
Redemption value of common shares25,074
Share-based awards classified as mezzanine equity1,489
Redeemable noncontrolling interest4,6313,061
Total mezzanine equity4,631213,014
Stockholders’ deficiency
Common stock, $0.0001 par value; 1,000,000 and 243,360 shares authorized, 180,013 and 100,068 shares issued and outstanding, at September 30, 2021 and December 31, 2020, respectively1812
Additional paid-in capital614,569105,159
Treasury stock(1,739)
Accumulated other comprehensive income1,8921,791
Accumulated deficit(367,247)(299,789)
Total stockholders’ deficiency247,493(192,827)
Total liabilities, mezzanine equity, and stockholders’ deficiency$380,164$169,054

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

For the Nine Months Ended
September 30,
Operating activities
Net loss$(25,756)$(4,870)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization863800
Foreign currency remeasurement (gain) loss(161)368
Provision for doubtful accounts(880)175
Stock-based compensation50,47516,235
Gain on disposal of property and equipment(15)
Deferred income taxes(1,008)(1,973)
Change in value of earn-out and warrant liabilities(13,650)
Changes in operating assets and liabilities:
Accounts receivable and long-term unbilled receivables(7,002)(2,416)
Prepaid expenses and other current assets(10,775)2,836
Deferred contract costs and other assets(3,269)(3,040)
Accounts payable, accrued expenses and other liabilities1,836(1,949)
Deferred revenue5,3774,965
Net cash provided by (used in) operating activities(3,965)11,131
Investing activities
Maturity (purchase) of short-term investments(638)1,466
Purchase of property and equipment(1,445)(314)
Net cash provided by (used in) investing activities(2,083)1,152
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)
Purchase of treasury stock(1,631)
Payment of net cash settlement for management options(7,530)
Proceeds from stock option exercises4,55554
Proceeds from sale of common shares of subsidiary753
Repayments of capital leases(20)(42)
Payments of debt issuance costs(300)
Proceeds from issuance of Common stock, net of issuance costs56,753
Net cash provided by financing activities197,60822,753
Effect of exchange rates on cash32(329)
Net increase in cash and cash equivalents191,59234,707
Cash and cash equivalents at beginning of period69,11212,162
Cash and cash equivalents at end of period$260,704$46,869
Supplemental disclosures of cash flow information
Cash received (paid) for:
Income taxes$(2,823)$80
Non-cash investing and financing activities
Issuance of common shares in exchange for issuance cost$$2,408
Fixed assets acquired under capital leases$$28

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

For the Three Months EndedFor the Nine Months Ended
September 30,September 30,
Non-GAAP operating income
GAAP operating income (loss)$(28,685)$(6,023)$(45,819)$(4,644)
Stock-based compensation expense32,67613,38150,47516,235
Non-GAAP operating income$3,991$7,358$4,656$11,591
Non-GAAP operating margin7.4%18.5%3.4%11.0%
Non-GAAP gross profit
GAAP gross profit$38,705$29,538$100,351$75,715
Stock-based compensation expense2,4282142,790316
Non-GAAP gross profit$41,133$29,752$103,141$76,031
Non-GAAP gross margin76.3%74.8%74.7%72.1%
Non-GAAP sales and marketing
GAAP sales and marketing$25,186$21,830$73,488$49,881
Stock-based compensation expense(2,171)(7,917)(13,073)(9,227)
Non-GAAP sales and marketing$23,015$13,913$60,415$40,654
Non-GAAP sales and marketing as a % of revenue42.7%35.0%43.8%38.6%
Non-GAAP general and administrative
GAAP general and administrative$22,230$10,469$44,186$20,918
Stock-based compensation expense(13,020)(5,201)(19,375)(6,496)
Non-GAAP general and administrative$9,210$5,268$24,811$14,422
Non-GAAP general and administrative as a % of revenue17.1%13.2%18.0%13.7%
Non-GAAP research and development
GAAP research and development$19,648$3,003$27,633$8,760
Stock-based compensation expense(15,057)(49)(15,237)(196)
Non-GAAP research and development$4,591$2,954$12,396$8,564
Non-GAAP research and development as a % of revenue8.5%7.4%9.0%8.1%

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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