• AvePoint Announces Fourth Quarter and Full Year 2021 Financial Results and $150 Million Share Repurchase Program

    Source: Nasdaq GlobeNewswire / 17 Mar 2022 15:05:01   America/Chicago

    Full year SaaS revenue of $85.6 million, up 64% year-over-year
    Total ARR of $159.2 million, up 34% year-over-year
    Cloud user base exceeds 9 million

    JERSEY CITY, N.J., March 17, 2022 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ: AVPT), the most advanced SaaS and data management solutions provider, today announced financial results for the fourth quarter and full year ended December 31, 2021.

    “AvePoint’s fourth quarter performance was a solid finish to our first year as a public company, which was highlighted by 64% SaaS revenue growth and 34% ARR growth, with an additional 36% growth in customers with ARR above 100k,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “As enterprises continue their long-term shift to SaaS based platforms, and we see increased application usage in 2022 and beyond, we believe we are well positioned to capitalize on this massive opportunity, which will require the industry leading data management and collaboration security solutions that AvePoint offers. I’m incredibly thankful to our team for their continued focus on expanding our unique product offerings, enhancing our channel business, and delivering exceptional service to our existing multi-cloud customers."

    Fourth Quarter 2021 Financial Highlights

    • Revenue: Total revenue for the fourth quarter of 2021 was $53.8 million, up 17% from the fourth quarter of 2020. Within total revenue, SaaS revenue was $24.3 million, up 52% from the fourth quarter of 2020, and term license and support revenue was $13.7 million, a decline of 13% due to an adjustment in the timing of revenue recognition on term license contracts, which resulted in the deferral of an additional $4.4 million of revenue into future periods. Excluding the effects of this adjustment, total revenue growth would have been 26% and term license and support growth would have been 15%.
    • Gross Profit: Gross profit for the fourth quarter of 2021 was $38.9 million, compared to $35.5 million for the fourth quarter of 2020. Gross margin for the fourth quarter of 2021 was 72.2%, compared to 77.0% for the fourth quarter of 2020. Non-GAAP gross profit for the fourth quarter of 2021 was $39.6 million, compared to $35.8 million for the fourth quarter of 2020. Non-GAAP gross margin was 73.5% for the fourth quarter of 2021, compared to 77.6% for the fourth quarter of 2020.
    • Operating Income/(Loss): Operating loss for the fourth quarter of 2021 was $(7.7) million, compared to $(10.8) million for the fourth quarter of 2020. Non-GAAP operating income for the fourth quarter of 2021 was $1.4 million, compared to $6.7 million for the fourth quarter of 2020.

    Full Year 2021 Financial Highlights

    • Revenue: Total revenue for the full year 2021 was $191.9 million, up 27% from 2020. Within total revenue, SaaS revenue was $85.6 million, up 64% from 2020, and term license and support revenue was $51.0 million, up 31% from 2020. Adjusting for the change in the timing of revenue recognition of $4.4 million, total revenue would have been up 30% and term license and support revenue would have increased 42% from 2020.
    • Gross Profit: Gross profit for the full year of 2021 was $139.2 million, compared to $111.2 million for 2020. Gross margin for the full year 2021 was 72.6%, compared to 73.4% for 2020. Non-GAAP gross profit for the full year 2021 was $142.7 million, compared to $111.8 million for 2020. Non-GAAP gross margin was 74.4% for the full year 2021, compared to 73.8% for 2020.
    • Operating Income/(Loss): Operating loss for the full year 2021 was $(53.5) million, compared to $(15.4) million for 2020. Non-GAAP operating income for the full year 2021 was $6.0 million, compared to $18.3 million for 2020.
    • Free cash flow of $3.1 million for the full year 2021 and $271 million of cash and short-term investments as of the end of the year.

    Fourth Quarter Key Highlights

    • Grew total ARR 34% year-over-year to $159.2 million.
    • Increased dollar-based net retention rate to 110%, up 3 percentage points year-over-year.
    • Eclipsed 2,800 total channel partners in 2021, of which, roughly three quarters are managed service providers (MSPs). AvePoint’s channel presence has further expanded to include over 100 cloud marketplaces and distributors across 7 continents.
    • Expanded cloud user base to 9.4 million, up 34% from 7.0 million as of December 31, 2020.

    Share Repurchase Program

    AvePoint’s Board of Directors has authorized a new share repurchase program for AvePoint to buy back its outstanding common shares. Under the share repurchase program, AvePoint has the authority to buy up to a maximum of $150 million worth of shares, over the next three years, via acquisitions in the open market or privately negotiated transactions. AvePoint is not obligated to make any purchases and the program may be suspended or discontinued at any time.

    Financial Outlook

    AvePoint is providing guidance for its first quarter and full year 2022 as follows:

    • First Quarter 2022 Guidance: Total revenue is expected to be in the range of $48.0 million to $49.0 million or approximately 25% year-over-year growth. Non-GAAP operating loss is expected to be in the range of $(6.0) to $(6.5) million.
    • Full Year 2022 Guidance: Total revenue is expected to be in the range of $236.0 million to $242.0 million or approximately 25% year-over-year growth. 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 $212 million to $216 million or approximately 34% year-over-year growth.

    Quarterly Conference Call

    AvePoint will host a conference call today, March 17, 2022, to review its fourth quarter and full year 2021 financial results and to discuss its financial outlook. The call is scheduled to begin at 4:30pm ET. 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.

    About AvePoint

    Collaborate with confidence. AvePoint provides the most advanced platform for SaaS and data management to optimize SaaS operations and secure collaboration. More than 9 million cloud users rely on our solutions. Our SaaS solutions are also available to managed service providers via more than 100 cloud marketplaces, so they can better support and manage their small and mid-sized business customers. Founded in 2001, AvePoint is a five-time Global Microsoft Partner of the Year and headquartered in Jersey City, New Jersey. For more information, 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.

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

    Media Contact:
    AvePoint, Inc.
    Nicole Caci
    pr@avepoint.com 
    201-201-8143

     
    AvePoint, Inc. and Subsidiaries
    Condensed Consolidated Statements of Operations
    (In thousands, except per share amounts)
    (Unaudited)
           
      For the Three Months
    Ended    		  For the Year Ended 
      December 31,  December 31, 
      2021  2020  2021  2020 
    Revenue:                
    SaaS $24,325  $16,040  $85,580  $52,074 
    Term license and support  13,678   15,677   50,970   38,949 
    Services  10,558   7,967   31,919   34,140 
    Maintenance  4,862   5,625   21,022   23,462 
    Perpetual license  415   813   2,418   2,908 
    Total revenue  53,838   46,122   191,909   151,533 
    Cost of revenue:                
    SaaS  5,169   3,194   19,039   11,050 
    Term license and support  236   673   950   1,930 
    Services  9,198   6,484   30,726   26,089 
    Maintenance  341   243   1,949   1,221 
    Total cost of revenue  14,944   10,594   52,664   40,290 
    Gross profit  38,894   35,528   139,245   111,243 
    Operating expenses:                
    Sales and marketing  27,024   26,664   100,512   76,545 
    General and administrative  15,035   15,954   59,221   36,872 
    Research and development  4,132   3,444   31,765   12,204 
    Depreciation and amortization  375   259   1,238   1,059 
    Total operating expenses  46,566   46,321   192,736   126,680 
    Loss from operations  (7,672)  (10,793)  (53,491)  (15,437)
    Gain on earn-out and warrant liabilities  7,583   —   21,233   — 
    Interest income, net  22   15   102   41 
    Other expense, net  (332)  (187)  (632)  (511)
    Loss before income taxes  (399)  (10,965)  (32,788)  (15,907)
    Income tax expense  7,090   1,134   457   1,062 
    Net loss $(7,489) $(12,099) $(33,245) $(16,969)
    Net loss attributable to and accretion of redeemable noncontrolling interest  (561)  (27)  (1,974)  (27)
    Net loss attributable to AvePoint, Inc. $(8,050) $(12,126) $(35,219) $(16,996)
    Deemed dividends on preferred stock  —   (13,033)  (32,928)  (34,446)
    Net loss available to common shareholders $(8,050) $(25,159) $(68,147) $(51,442)
    Loss per share:                
    Basic $(0.04) $(0.26) $(0.48) $(0.57)
    Diluted $(0.04) $(0.26) $(0.48) $(0.57)
    Shares used in computing loss per share:                
    Basic  182,133   98,107   141,596   89,638 
    Diluted  182,133   98,107   141,596   89,638 
                     


    AvePoint, Inc. and Subsidiaries
    Condensed Consolidated Balance Sheets
    (In thousands, except par value)
    (Unaudited)
           
      December 31,  December 31, 
      2021  2020 
    Assets        
    Current assets:        
    Cash and cash equivalents $268,217  $69,112 
    Short-term investments  2,411   992 
    Accounts receivable, net of allowance of $838 and $1,767 at December 31, 2021 and
    December 31, 2020, respectively    		  59,223   48,250 
    Prepaid expenses and other current assets  6,573   2,343 
    Total current assets  336,424   120,697 
    Property and equipment, net  3,922   2,663 
    Deferred contract costs  38,926   31,943 
    Long-term unbilled receivables  8,049   5,499 
    Other assets  7,354   8,252 
    Total assets $394,675  $169,054 
    Liabilities, mezzanine equity, and stockholders’ deficiency        
    Current liabilities:        
    Accounts payable $1,824  $774 
    Accrued expenses and other liabilities  35,062   26,245 
    Current portion of deferred revenue  79,714   65,203 
    Total current liabilities  116,600   92,222 
    Long-term portion of deferred revenue  8,555   9,485 
    Share-based awards classified as liabilities  —   43,502 
    Earn-out shares liabilities  10,012   — 
    Other non-current liabilities  3,943   3,658 
    Total liabilities  139,110   148,867 
    Commitments and contingencies (Note 11)        
    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, 2020    		  —   183,390 
    Redemption value of common shares  —   25,074 
    Share-based awards classified as mezzanine equity  —   1,489 
    Redeemable noncontrolling interest  5,210   3,061 
    Total mezzanine equity  5,210   213,014 
    Stockholders’ deficiency        
    Common stock, $0.0001 par value; 1,000,000 and 243,360 shares authorized,
    181,822 and 100,068 shares issued and outstanding, at December 31, 2021 and
    December 31, 2020, respectively    		  18   12 
    Additional paid-in capital  625,056   105,159 
    Treasury stock  (1,739)  — 
    Accumulated other comprehensive income  2,317   1,791 
    Accumulated deficit  (375,297)  (299,789)
    Total stockholders’ equity (deficiency)  250,355   (192,827)
    Total liabilities, mezzanine equity, and stockholders’ equity (deficiency) $394,675  $169,054 
             


    AvePoint, Inc. and Subsidiaries
    Condensed Consolidated Statements of Cash Flows
    (In thousands)
    (Unaudited)
        
      For the Year Ended 
      December 31, 
      2021  2020 
    Operating activities        
    Net loss $(33,245) $(16,969)
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        
    Depreciation and amortization  1,238   1,059 
    Foreign currency remeasurement loss (gain)  1,308   (378)
    Provision for doubtful accounts  (740)  690 
    Stock-based compensation  59,508   33,767 
    Loss (gain) on disposal of property and equipment  (15)  80 
    Deferred income taxes  (1,694)  (433)
    Change in value of earn-out and warrant liabilities  (21,233)  — 
    Changes in operating assets and liabilities:        
      Accounts receivable and long-term unbilled receivables  (14,949)  (8,946)
      Prepaid expenses and other current assets  (4,026)  1,204 
      Deferred contract costs and other assets  (7,606)  (3,236)
      Accounts payable, accrued expenses and other liabilities  10,257   971 
      Deferred revenue  16,742   11,311 
    Net cash provided by operating activities  5,545   19,120 
    Investing activities        
    Maturity (purchase) of short-term investments  (1,431)  2,391 
    Purchase of property and equipment  (2,461)  (1,023)
    Net cash provided by (used in) investing activities  (3,892)  1,368 
    Financing activities        
    Proceeds from recapitalization of Apex shares  491,563   — 
    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)  (2,089)
    Purchase of treasury stock  (1,628)  — 
    Payment of net cash settlement for management options  (7,530)  — 
    Proceeds from stock option exercises  5,566   612 
    Proceeds from sale of common shares of subsidiary  753   7,505 
    Repayments of capital leases  (25)  (49)
    Payments of debt issuance costs  —   (300)
    Proceeds from issuance of Common stock, net of issuance costs  —   58,669 
    Collection of promissory note  —   284 
    Collection of non-recourse promissory note  —   4,639 
    Net cash provided by financing activities  198,617   35,559 
    Effect of exchange rates on cash  (1,165)  903 
    Net increase in cash and cash equivalents  199,105   56,950 
    Cash and cash equivalents at beginning of period  69,112   12,162 
    Cash and cash equivalents at end of period $268,217  $69,112 
    Supplemental disclosures of cash flow information        
    Cash received (paid) for:        
    Interest $102  $— 
    Income taxes $(3,430) $1,068 
    Non-cash investing and financing activities        
    Issuance of common shares in exchange for issuance cost $—  $2,408 
    Property and equipment acquired under capital leases $—  $29 
             


    AvePoint, Inc. and Subsidiaries
    Non-GAAP Reconciliations
    (In thousands)
    (Unaudited)
           
      For the Three Months Ended  For the Year Ended 
      December 31,  December 31, 
      2021  2020  2021  2020 
    Non-GAAP operating income                
    GAAP operating income $(7,672) $(10,793) $(53,491) $(15,437)
    Stock-based compensation expense  9,033   17,532   59,508   33,767 
    Non-GAAP operating income $1,361  $6,739  $6,017  $18,330 
    Non-GAAP operating margin  2.5%  14.6%  3.1%  12.1%
                     
                     
                     
    Non-GAAP gross profit                
    GAAP gross profit $38,894  $35,528  $139,245  $111,243 
    Stock-based compensation expense  687   276   3,477   592 
    Non-GAAP gross profit $39,581  $35,804  $142,722  $111,835 
    Non-GAAP gross margin  73.5%  77.6%  74.4%  73.8%
                     
    Non-GAAP sales and marketing                
    GAAP sales and marketing $27,024  $26,664  $100,512  $76,545 
    Stock-based compensation expense  (2,833)  (10,746)  (15,906)  (19,973)
    Non-GAAP sales and marketing $24,191  $15,918  $84,606  $56,572 
    Non-GAAP sales and marketing as a % of revenue  44.9%  34.5%  44.1%  37.3%
                     
    Non-GAAP general and administrative                
    GAAP general and administrative $15,035  $15,954  $59,221  $36,872 
    Stock-based compensation expense  (4,688)  (6,420)  (24,063)  (12,916)
    Non-GAAP general and administrative $10,347  $9,534  $35,158  $23,956 
    Non-GAAP general and administrative as a % of revenue  19.2%  20.7%  18.3%  15.8%
                     
    Non-GAAP research and development                
    GAAP research and development $4,132  $3,444  $31,765  $12,204 
    Stock-based compensation expense  (825)  (90)  (16,062)  (286)
    Non-GAAP research and development $3,307  $3,354  $15,703  $11,918 
    Non-GAAP research and development as a % of revenue  6.1%  7.3%  8.2%  7.9%

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