AvePoint Announces First Quarter 2023 Financial Results

First quarter SaaS revenue of $35.5 million, representing 34% year-over-year growth, 39% adjusted for constant currency
First quarter Total revenue of $59.6 million, representing 18% year-over-year growth, 23% adjusted for constant currency
Total ARR of $222.4 million, representing 26% year-over-year growth, 31% adjusted for FX impact

JERSEY CITY, N. J., May 10, 2023 (GLOBE NEWSWIRE) — AvePoint (NASDAQ: AVPT), the most advanced platform to optimize SaaS operations and secure collaboration, today announced financial results for the first quarter ended March 31, 2023.

“Our first quarter results were a solid start to 2023,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder of AvePoint. “Our revenue and operating income performance exceeded our guidance and underscores our commitment to shareholder value by advancing the digital workplace, capturing growing markets and prioritizing profitable growth. While we remain mindful of the uncertain macro environment, our ability to drive continued topline growth and ongoing margin expansion provides the confidence to raise our full-year expectations for ARR, revenues and operating income.”

First Quarter 2023 Financial Highlights

Revenue: Total revenue was $59.6 million, up 18% from the first quarter of 2022 and up 23% year-over-year on a constant currency basis. Within total revenue, SaaS revenue was $35.5 million, up 34% from the first quarter of 2022 and up 39% on a constant currency basis.Gross Profit: GAAP gross profit was $41.7 million, compared to $35.5 million for the first quarter of 2022. Non-GAAP gross profit was $42.6 million, compared to $36.1 million for the first quarter of 2022. Non-GAAP gross margin was 71.5%, compared to 71.8% for the first quarter of 2022.Operating Income/(Loss): GAAP operating loss was $(8.8) million, compared to $(13.8) million for the first quarter of 2022. Non-GAAP operating loss was $(0.3) million, compared to $(5.5) million for the first quarter of 2022.Cash and short-term investments: $231.7 million as of March 31, 2023.

First Quarter 2023 Key Performance Indicators and Business Highlights

ARR as of March 31, 2023 was $222.4 million, up 26% year-over-year. Adjusted for FX, ARR grew 31%. Dollar-based gross retention rate was 84%, while dollar-based net retention rate was 102%. Adjusted for FX, dollar-based gross retention rate was 87%, while dollar-based net retention rate was 106%.Launched first-to-market governance, management, data protection and migration support for Microsoft Power Platform.Demonstrated continued commitment to security for public sector customers with the expansion of AvePoint solutions with FedRAMP (moderate) authorization as well as achieving the security classification of Protected for the Information Security Registered Assessors Program (IRAP) in Australia. Named a winner for the 2023 Microsoft Singapore Partner of the Year awards in the Education Industry and Future of Work Transformation, Modern Work categories.

Financial Outlook
The Company is raising its full year outlook for total ARR, total revenues and non-GAAP operating income.

For the second quarter of 2023, the Company expects:

Total revenues of $60.5 million to $62.5 million, or 10% year-over-year growth at the midpoint.Non-GAAP operating income of $0.8 million to $2.0 million.

For the full year 2023, the Company now expects:

Total ARR of $255.0 million to $261.0 million, or 20% year-over-year growth at the midpoint.Total revenues of $256.5 million to $262.5 million, or 12% year-over-year growth at the midpoint.Non-GAAP operating income of $13.9 million to $16.2 million.

Quarterly Conference Call

AvePoint will host a conference call today, May 10, 2023, to review its first quarter 2023 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 4790958. 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

Collaborate with Confidence. AvePoint provides the most advanced platform to optimize SaaS operations and secure collaboration. Over 17,000 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. Founded in 2001, AvePoint is headquartered in Jersey City, New Jersey with 25 global offices. 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 acquired intangible assets. The company believes the presentation of its non-GAAP financial measures provides a better representation as to its overall operating 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.

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
For the Three Months Ended March 31, 2023 and 2022
(In thousands, except per share amounts)
(Unaudited)

Three Months Ended March 31, 2023 2022 Revenue: SaaS $35,512 $26,553 Term license and support 10,904 10,202 Services 9,747 8,925 Maintenance 3,409 4,611 Total revenue 59,572 50,291 Cost of revenue: SaaS 7,895 5,563 Term license and support 461 585 Services 9,351 8,350 Maintenance 183 278 Total cost of revenue 17,890 14,776 Gross profit 41,682 35,515 Operating expenses: Sales and marketing 26,851 27,206 General and administrative 14,648 15,602 Research and development 9,015 6,555 Total operating expenses 50,514 49,363 Loss from operations (8,832) (13,848)(Loss) gain on earn-out and warrant liabilities (109) 3,267 Interest income, net 325 14 Other income (expense), net 1,412 (177)Loss before income taxes (7,204) (10,744)Income tax expense 1,978 309 Net loss $(9,182) $(11,053)Net income attributable to and accretion of redeemable noncontrolling interest (15) (617)Net loss attributable to AvePoint, Inc. $(9,197) $(11,670)Net loss available to common shareholders $(9,197) $(11,670)Basic and diluted loss per share $(0.05) $(0.06)Basic and diluted shares used in computing loss per share 182,818 182,833

AvePoint, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
As of March 31, 2023 and December 31, 2022
(In thousands, except par value)
(Unaudited)

March 31, December 31, 2023 2022 Assets Current assets: Cash and cash equivalents $228,827 $227,188 Short-term investments 2,879 2,620 Accounts receivable, net of allowance for doubtful accounts of $847 and $725 as of March 31, 2023 and December 31, 2022, respectively 56,627 66,474 Prepaid expenses and other current assets 6,453 10,013 Total current assets 294,786 306,295 Property and equipment, net 5,176 5,537 Goodwill 18,871 18,904 Intangible assets, net 10,848 11,079 Operating lease right-of-use assets 16,984 15,855 Deferred contract costs 47,794 48,553 Other assets 7,052 9,310 Total assets $401,511 $415,533 Liabilities, mezzanine equity, and stockholders’ equity Current liabilities: Accounts payable $1,451 $1,519 Accrued expenses and other liabilities 35,057 47,784 Current portion of deferred revenue 91,479 93,405 Total current liabilities 127,987 142,708 Long-term operating lease liabilities 11,755 11,348 Long-term portion of deferred revenue 7,710 8,085 Earn-out shares liabilities 6,922 6,631 Other non-current liabilities 5,839 3,607 Total liabilities 160,213 172,379 Commitments and contingencies Mezzanine equity Redeemable noncontrolling interest 14,057 14,007 Total mezzanine equity 14,057 14,007 Stockholders’ equity Common stock, $0.0001 par value; 1,000,000 shares authorized, 186,788 and 185,278 shares issued and outstanding 19 19 Additional paid-in capital 674,768 665,715 Treasury stock (23,477) (21,666)Accumulated other comprehensive income 2,055 2,006 Accumulated deficit (426,124) (416,927)Total stockholders’ equity 227,241 229,147 Total liabilities, mezzanine equity, and stockholders’ equity $401,511 $415,533

AvePoint, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2023 and 2022
(In thousands)
(Unaudited)

Three Months Ended March 31, 2023 2022 Operating activities Net loss $(9,182) $(11,053)Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Depreciation and amortization 1,134 511 Operating lease right-of-use assets expense 1,749 1,151 Foreign currency remeasurement (gain) loss (175) 194 Stock-based compensation 8,104 8,274 Deferred income taxes (82) (9)Other (1,566) (21)Change in value of earn-out and warrant liabilities 109 (3,252)Changes in operating assets and liabilities: Accounts receivable 10,049 6,837 Prepaid expenses and other current assets 3,571 205 Deferred contract costs and other assets 2,987 321 Accounts payable, accrued expenses, operating lease liabilities and other liabilities (12,828) (11,725)Deferred revenue (2,620) 2,444 Net cash provided by (used in) operating activities 1,250 (6,123)Investing activities Maturities of investments 1,670 861 Purchases of investments (74) (179,890)Cash paid in business combinations and asset acquisitions, net of cash acquired — (1,473)Capitalization of internal-use software (259) — Purchase of property and equipment (225) (969)Other (250) — Net cash provided by (used in) investing activities 862 (181,471)Financing activities Purchase of common stock (1,811) (744)Proceeds from stock option exercises 1,131 1,036 Repayments of finance leases (10) (5)Net cash (used in) provided by financing activities (690) 287 Effect of exchange rates on cash 217 (2,146)Net increase (decrease) in cash and cash equivalents 1,639 (189,453)Cash and cash equivalents at beginning of period 227,188 268,217 Cash and cash equivalents at end of period $228,827 $78,764 Supplemental disclosures of cash flow information Income taxes paid $327 $335 Contingent consideration in business combination $ — $5,636

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

Three Months Ended March 31, 2023 2022Non-GAAP operating income GAAP operating loss $(8,832) $(13,848)Stock-based compensation expense 8,104 8,274 Amortization of acquired intangible assets 399 51 Non-GAAP operating income (loss) $(329) $(5,523)Non-GAAP operating margin -0.6% -11.0% Non-GAAP gross profit GAAP gross profit $41,682 $35,515 Stock-based compensation expense 670 578 Amortization of acquired intangible assets 242 23 Non-GAAP gross profit $42,594 $36,116 Non-GAAP gross margin 71.5% 71.8% Non-GAAP sales and marketing GAAP sales and marketing $26,851 $27,206 Stock-based compensation expense (2,201) (2,462)Amortization of acquired intangible assets (157) (28)Non-GAAP sales and marketing $24,493 $24,716 Non-GAAP sales and marketing as a % of revenue 41.1% 49.1% Non-GAAP general and administrative GAAP general and administrative $14,648 $15,602 Stock-based compensation expense (4,382) (4,484) Non-GAAP general and administrative $10,266 $11,118 Non-GAAP general and administrative as a % of revenue 17.2% 22.1% Non-GAAP research and development GAAP research and development $9,015 $6,555 Stock-based compensation expense (851) (750)Non-GAAP research and development $8,164 $5,805 Non-GAAP research and development as a % of revenue 13.7% 11.5%


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