• AvePoint Announces Second Quarter 2021 Financial Results

    Source: Nasdaq GlobeNewswire / 10 Aug 2021 15:07:00   America/Chicago

    JERSEY CITY, N.J., Aug. 10, 2021 (GLOBE NEWSWIRE) -- 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 8 million cloud users

    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.

    About AvePoint
    Collaborate with confidence. AvePoint is the largest Microsoft 365 data management solutions provider, offering a full suite of SaaS solutions to migrate, manage and protect data. More than 8 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 https://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 federal securities laws including statements 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 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 the registration statement on Form S-4 and other documents filed by AvePoint from time to time with the SEC. 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, whether as a result of new information, future events, or otherwise. AvePoint does not gives any assurance that it will achieve its expectations.

    Investor Contact

    AvePoint, Inc., Sapphire Investor Relations, LLC.
    Erica Mannion
    ir@avepoint.com
    617-542-6180

    Media Contact

    AvePoint, Inc.
    Nicole Caci
    nicole.caci@avepoint.com
    201-201-8143



    AvePoint Operations, Inc. and Subsidiaries
    Condensed Consolidated Statements of Operations
    (In thousands, except per share amounts)
    (Unaudited) 

      For the Three Months Ended  For the Six Months Ended 
      June 30,  June 30, 
      2021  2020  2021  2020 
    Revenue:                
    SaaS $20,586  $11,699  $38,845  $21,942 
    Term license and support  11,088   7,357   19,815   15,101 
    Services  7,302   7,724   13,218   15,303 
    Maintenance and OEM  5,458   5,776   10,867   11,781 
    Perpetual license  910   400   1,399   1,490 
    Total revenue  45,344   32,956   84,144   65,617 
    Cost of revenue:                
    SaaS  4,564   2,543   9,004   5,057 
    Term license and support  230   348   503   820 
    Services  6,508   5,877   12,093   12,889 
    Maintenance and OEM  418   305   898   674 
    Total cost of revenue  11,720   9,073   22,498   19,440 
    Gross profit  33,624   23,883   61,646   46,177 
    Operating expenses:                
    Sales and marketing  29,001   14,010   48,302   28,051 
    General and administrative  11,664   5,291   21,956   10,449 
    Research and development  3,883   2,863   7,985   5,757 
    Depreciation and amortization  279   268   537   541 
    Total operating expenses  44,827   22,432   78,780   44,798 
    Income (loss) from operations  (11,203)  1,451   (17,134)  1,379 
    Interest income, net  11   5   24   9 
    Other income (expense), net  62   439   (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 diluted  11,732   9,793   11,663   9,750 



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

      June 30,  December 31, 
      2021  2020 
    Assets        
    Current assets        
    Cash and cash equivalents $66,338  $69,112 
    Short-term investments  1,408   992 
    Accounts receivable, net of allowance of $1,030 and $1,767 at June 30, 2021 and December 31, 2020, respectively  44,753   48,250 
    Prepaid expenses and other current assets  4,319   2,343 
    Total current assets  116,818   120,697 
    Property and equipment, net  3,039   2,663 
    Deferred contract costs  33,781   31,943 
    Long-term unbilled receivables  6,440   5,499 
    Other assets  12,238   8,252 
    Total assets $172,316  $169,054 
    Liabilities, mezzanine equity, and stockholders’ deficiency        
    Current liabilities:        
    Accounts payable $520  $774 
    Accrued expenses and other liabilities  22,115   26,245 
    Current portion of deferred revenue  68,974   65,203 
    Total current liabilities  91,609   92,222 
    Long-term portion of deferred revenue  7,596   9,485 
    Share-based awards classified as liabilities  50,220   43,502 
    Other non-current liabilities  3,587   3,658 
    Total liabilities  153,012   148,867 
    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, respectively  216,926   183,390 
    Redemption value of common shares  39,757   25,074 
    Share-based awards  1,695   1,489 
    Redeemable noncontrolling interest  4,143   3,061 
    Total mezzanine equity  262,521   213,014 
    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, respectively  12   12 
    Additional paid-in capital  112,953   105,159 
    Accumulated other comprehensive income  1,848   1,791 
    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)
    (Unaudited) 

      For the Six Months Ended 
      June 30, 
      2021  2020 
    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 amortization  537   541 
    Foreign currency remeasurement (gain) loss  (134)  220 
    Provision for doubtful accounts  (732)  818 
    Stock-based compensation  17,799   2,854 
    Gain on disposal of property and equipment  (15)  — 
    Deferred income taxes  (981)  (5,788)
    Changes in operating assets and liabilities:        
    Accounts receivable  2,399   4,822 
    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 revenue  3,298   964 
    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 exercises  3,277   15 
    Proceeds from sale of common shares of subsidiary  753   — 
    Payments of debt issuance costs  —   (120)
    Proceeds from issuance of Common stock  —   7,000 
    Net cash provided by financing activities  2,144   6,862 
    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 period  69,112   12,162 
    Cash and cash equivalents at end of period $66,338  $25,375 
    Supplemental disclosures of cash flow information        
    Cash received (paid) for:        
    Interest $24  $8 
    Income taxes $(2,389) $(529)
    Non-cash investing and financing activities        
    Fixed assets acquired under capital leases $—  $28 


      For the Three Months Ended  For the Six Months Ended 
      June 30,  June 30, 
      2021  2020  2021  2020 
    Non-GAAP gross profit                
    GAAP gross profit $33,624  $23,883  $61,646  $46,177 
    Stock-based compensation expense  272   190   362   102 
    Non-GAAP gross profit $33,896  $24,073  $62,008  $46,279 
    Non-GAAP gross margin  74.8%  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 revenue  42.4%  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 revenue  8.4%  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 revenue  16.1%  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 revenue  0.6%  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 revenue  67.5%  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 expense  14,510   2,779   17,799   2,854 
    Non-GAAP operating income $3,307  $4,230  $665  $4,233 
    Non-GAAP operating margin  7.3%  12.8%  0.8%  6.5%


    ____________
    1 AvePoint calculates annual recurring revenue (“ARR”) at the end of a particular period as the annualized sum of: (1) contractually obligated Annual Contract Value from subscription and maintenance revenue sources from all customers with a contract duration exceeding three months, and (2) the product of the current month’s monthly recurring revenue (“MRR”) multiplied by twelve (to prospectively annualize subscription revenue). MRR includes AvePoint’s channel business and customers that sign contracts for less than one quarter in duration. ARR also includes some recurring professional services revenue, such as recurring technical account management services.


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