AvePoint Announces Fourth Quarter and Full Year 2024 Financial Results

Full year SaaS revenue of $230.7 million, representing 43% year-over-year growth, 44% on a constant currency basisFull year Total revenue of $330.5 million, representing 22% year-over-year growth, 22% on a constant currency basisTotal ARR of $327.0 million, representing 24% year-over-year growth, 25% adjusted for FX JERSEY CITY, N.J., Feb. 27, 2025 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ: AVPT), the global leader in data security, governance and resilience, today announced financial results for the fourth quarter and full year ended December 31, 2024. “Our fourth quarter was an outstanding close to 2024, and we are pleased with the team’s steady focus and broad-based execution,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “Our results this year – as well as our outlook for 2025 – reflect the growing demand from companies around the world for platform solutions that enable them to prepare, secure and optimize their data for AI, as well as our ongoing improvement in effectively and efficiently delivering on that demand. Today, AvePoint stands at the forefront of addressing the pivotal challenges in data security, governance, and resilience, and we are excited for the many opportunities we see in 2025 and beyond to continue driving shareholder value.” Fourth Quarter 2024 Financial Highlights Revenue: Total revenue was $89.2 million, up 20% from the fourth quarter of 2023 and up 20% on a constant currency basis. Within total revenue, SaaS revenue was $64.8 million, up 43% from the fourth quarter of 2023 and up 44% on a constant currency basis.Gross Profit: GAAP gross profit was $67.3 million, compared to $55.0 million for the fourth quarter of 2023. Non-GAAP gross profit was $67.3 million, compared to $56.1 million for the fourth quarter of 2023. Non-GAAP gross margin was 75.5%, compared to 75.2% for the fourth quarter of 2023.Operating Income/(Loss): GAAP operating income was $4.9 million, compared to $0.9 million for the fourth quarter of 2023. Non-GAAP operating income was $14.5 million, compared to $10.3 million for the fourth quarter of 2023. Full Year 2024 Financial Highlights Revenue: Total revenue was $330.5 million, up 22% from the full year 2023 and up 22% on a constant currency basis. Within total revenue, SaaS revenue was $230.7 million, up 43% from the full year 2023 and up 44% on a constant currency basis.Gross Profit: GAAP gross profit was $248.0 million, compared to $194.4 million for the full year 2023. Non-GAAP gross profit was $250.2 million, compared to $198.5 million for the full year 2023. Non-GAAP gross margin was 75.7%, compared to 73.0% for the full year 2023.Operating Income/(Loss): GAAP operating income was $7.2 million, compared to a GAAP operating loss of $(15.4) million for the full year 2023. Non-GAAP operating income was $47.6 million, compared to $22.2 million for the full year 2023.Cash and short-term investments: $290.9 million as of December 31, 2024.Cash from operations: For the twelve months ended December 31, 2024, the Company generated $88.9 million of cash from operations, compared to $34.7 million in the prior year period. Fourth Quarter 2024 Key Performance Indicators and Recent Business Highlights ARR as of December 31, 2024 was $327.0 million, representing growth of 24% year-over-year. Adjusted for FX, ARR grew 25% year-over-year.Adjusted for FX, dollar-based gross retention rate was 89%, while dollar-based net retention rate was 111%. On an as-reported basis, dollar-based gross retention rate was 88%, while dollar-based net retention rate was 110%.Introduced first-to-market benchmarking capabilities within AvePoint tyGraph for Microsoft 365 Copilot to provide organizations critical insights into their AI adoption and usage patterns.Announced the launch of AvePoint’s AI Lab in Singapore, to advance AI-driven research and innovation that will address global industry challenges and embed AI across the AvePoint Confidence Platform.Named to the inaugural Forbes America’s Best Companies List, which recognizes the top 300 companies in the U.S. across over 60 measures, including financial performance, customer and employee satisfaction, cybersecurity, and more. Financial Outlook For the first quarter of 2025, the Company expects: Total revenues of $87.8 million to $89.8 million, or year-over-year growth of 18% to 21%. On a constant currency basis, the Company expects revenue growth of 19% to 22%.Non-GAAP operating income of $11.1 million to $12.1 million. For the full year 2025, the Company expects: Total ARR of $401.3 million to $407.3 million, or year-over-year growth of 23% to 25%. Adjusted for FX, the Company expects ARR growth of 24% to 26%.Total revenues of $380.0 million to $388.0 million, or year-over-year growth of 15% to 17%. On a constant currency basis, the Company expects revenue growth of 17% to 19%.Non-GAAP operating income of $52.3 million to $55.3 million. Quarterly Conference Call AvePoint will host a conference call today, February 27, 2025, to review its fourth quarter and full year 2024 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 (833) 816-1428 for US participants and 1 (412) 317-0520 for outside the US. The passcode for the call is 8306574. Investors can also join by webcast by visiting https://www.avepoint.com/ir/events-and-presentations. 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 Beyond Secure. AvePoint is the global leader in data security, governance, and resilience, going beyond traditional solutions to ensure a robust data foundation and enable organizations everywhere to collaborate with confidence. Over 25,000 customers worldwide rely on the AvePoint Confidence Platform to prepare, secure, and optimize their critical data across Microsoft, Google, Salesforce, and other collaboration environments. AvePoint’s global channel partner program includes approximately 5,000 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 and Other Key Metrics 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, and key metrics include annual recurring revenue, dollar-based gross retention rate, and dollar-based net retention rate. 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. Annual Recurring Revenue. This metric is calculated as the annualized sum of contractually obligated Annual Contract Value (“ACV”) from SaaS, term license and support, and maintenance revenue sources from all active customers at the end of a reporting period. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or replace these items. ARR is not a forecast of future revenue, and the active contracts used in calculating ARR may or may not be extended or renewed by our customers. The company believes this metric further enables measurement of its business performance, is an important metric for financial forecasting and better enables strategic decision making. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure. Dollar-based Gross Retention Rate. This metric is calculated by starting with the ARR from all active customers as of 12 months prior to such period end, or Prior Period ARR. The company then calculates ARR from these same customers as of the current period end, or Current Period ARR. Current Period ARR includes net contraction or attrition over the last 12 months but excludes ARR from new customers in the current period. The company then divides the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based gross retention rate. The company uses this metric as a measure of its ability to retain existing customers, and believes it is useful to investors for the same reason. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure. Dollar-based Net Retention Rate. This metric is calculated by starting with the ARR from all active customers as of 12 months prior to such period end, or Prior Period ARR. The company then calculates ARR from these same customers as of the current period end, or Current Period ARR. Current Period ARR includes net expansion over the last 12 months but excludes ARR from new customers in the current period. The company then divides the total Current Period ARR by the total Prior Period ARR to arrive at the dollar-based net retention rate. The company uses this metric as a measure of its ability to expand business with existing customers, and believes it is useful to investors for the same reason. Because this metric does not have the effect of providing a numerical measure that is different from any comparable GAAP measure, the company does not consider it a non-GAAP measure. Disclosure Information AvePoint uses its Investor Relations website (https://avepoint.com/ir) 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 Annual Report on Form 10-K 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. Unless the context otherwise indicates, references in this press release to the terms “AvePoint”, “the Company”, “we”, “our” and “us” refer to AvePoint, Inc. and its subsidiaries. Investor Contact AvePointJamie Arestiair@avepoint.com(551) 220-5654 Media ContactAvePointNicole Cacipr@avepoint.com (201) 201-8143 AvePoint, Inc.Condensed Consolidated Statements of Income(In thousands, except per share amounts)(Unaudited) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 Revenue: SaaS$64,847 $45,260 $230,667 $160,961 Term license and support 9,432 12,270 44,560 52,744 Services 12,228 13,788 44,036 44,795 Maintenance 2,676 3,306 11,219 13,325 Total revenue 89,183 74,624 330,482 271,825 Cost of revenue: SaaS 11,405 9,338 41,544 35,924 Term license and support 382 505 1,584 1,946 Services 9,980 9,576 38,757 38,807 Maintenance 154 199 641 783 Total cost of revenue 21,921 19,618 82,526 77,460 Gross profit 67,262 55,006 247,956 194,365 Operating expenses: Sales and marketing 32,410 29,127 122,869 112,105 General and administrative 17,127 15,592 69,222 61,271 Research and development 12,872 9,409 48,699 36,340 Total operating expenses 62,409 54,128 240,790 209,716 Income (loss) from operations 4,853 878 7,166 (15,351)Other expense, net (23,458) (1,687) (31,565) (3,263)Loss before income taxes (18,605) (809) (24,399) (18,614)Income tax (benefit) expense (1,427) (5,245) 4,743 2,887 Net (loss) income$(17,178) $4,436 $(29,142) $(21,501)Net income (loss) attributable to noncontrolling interest 7 167 (52) 224 Net (loss) income available to common stockholders$(17,185) $4,269 $(29,090) $(21,725)Earnings per share: Basic$(0.09) $0.02 $(0.16) $(0.12)Diluted$(0.09) $0.02 $(0.16) $(0.12)Weighted average shares outstanding: Basic 186,605 181,152 183,721 182,257 Diluted 186,605 198,570 183,721 182,257 AvePoint, Inc.Condensed Consolidated Balance Sheets(In thousands, except par value) December 31, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents$290,735 $223,162 Short-term investments 167 3,721 Accounts receivable, net 87,365 85,877 Prepaid expenses and other current assets 16,528 12,824 Total current assets 394,795 325,584 Property and equipment, net 5,289 5,118 Goodwill 17,715 19,156 Intangible assets, net 8,889 10,546 Operating lease right-of-use assets 15,954 13,908 Deferred contract costs 59,838 54,675 Other assets 16,575 13,595 Total assets$519,055 $442,582 Liabilities, mezzanine equity, and stockholders’ equity Current liabilities: Accounts payable$2,352 $1,384 Accrued expenses and other current liabilities 76,135 53,766 Current portion of deferred revenue 144,468 121,515 Total current liabilities 222,955 176,665 Long-term operating lease liabilities 9,909 9,383 Long-term portion of deferred revenue 8,840 7,741 Earn-out shares liabilities — 18,346 Other liabilities 6,403 5,603 Total liabilities 248,107 217,738 Commitments and contingencies Mezzanine equity Redeemable noncontrolling interest — 6,038 Total mezzanine equity — 6,038 Stockholders’ equity Common stock, $0.0001 par value; 1,000,000 shares authorized, 194,071 and 184,652 shares issued and outstanding as of December 31, 2024 and 2023, respectively 19 18 Additional paid-in capital 779,007 667,881 Accumulated other comprehensive income 576 3,196 Accumulated deficit (510,448) (460,496)Noncontrolling interest 1,794 8,207 Total stockholders’ equity 270,948 218,806 Total liabilities, mezzanine equity, and stockholders’ equity$519,055 $442,582 AvePoint, Inc.Condensed Consolidated Statements of Cash Flows(In thousands)(Unaudited) Year Ended December 31, 2024 2023 Operating activities Net loss$(29,142) $(21,501)Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 5,382 4,687 Operating lease right-of-use assets expense 6,270 6,234 Foreign currency remeasurement loss 866 — Stock-based compensation 39,059 36,048 Deferred income taxes 498 (864)Other (67) 1,068 Change in value of earn-out and warrant liabilities 37,276 11,454 Changes in operating assets and liabilities: Accounts receivable (4,898) (19,448)Prepaid expenses and other current assets (3,350) (2,773)Deferred contract costs and other assets (8,482) (7,687)Accounts payable, accrued expenses, operating lease liabilities and other current liabilities 16,046 609 Deferred revenue 29,436 26,867 Net cash provided by operating activities 88,894 34,694 Investing activities Maturities of investments 5,353 2,620 Purchases of investments (1,819) (3,497)Capitalization of internal-use software (1,211) (1,434)Purchase of property and equipment (3,044) (2,087)Issuance of notes receivables (1,750) (1,250)Other investing activities (130) — Net cash used in investing activities (2,601) (5,648)Financing activities Repurchase of common stock (33,053) (39,036)Proceeds from warrant exercises 17,182 — Proceeds from stock option exercises 11,033 5,569 Redemption of redeemable noncontrolling interest (6,130) — Purchase of public warrants (3,991) — Company earn-out shares settled in cash (572) — Repayments of finance leases (6) (64)Payments of debt issuance costs — (136)Net cash used in financing activities (15,537) (33,667)Effect of exchange rates on cash (3,183) 595 Net decrease in cash and cash equivalents 67,573 (4,026)Cash and cash equivalents at beginning of period 223,162 227,188 Cash and cash equivalents at end of period$290,735 $223,162 Supplemental disclosures of cash flow information Income taxes paid$6,882 $6,112 Company earn-out shares issuance$53,871 $— AvePoint, Inc.Non-GAAP Reconciliations(In thousands)(Unaudited) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 Non-GAAP operating income GAAP operating income (loss)$4,853 $878 $7,166 $(15,351)Stock-based compensation expense 9,252 9,073 39,059 36,048 Amortization of acquired intangible assets 356 350 1,420 1,456 Non-GAAP operating income$14,461 $10,301 $47,645 $22,153 Non-GAAP operating margin 16.2% 13.8% 14.4% 8.1% Non-GAAP gross profit GAAP gross profit$67,262 $55,006 $247,956 $194,365 Stock-based compensation expense (201) 869 1,315 3,161 Amortization of acquired intangible assets 239 239 961 964 Non-GAAP gross profit$67,300 $56,114 $250,232 $198,490 Non-GAAP gross margin 75.5% 75.2% 75.7% 73.0% Non-GAAP sales and marketing GAAP sales and marketing$32,410 $29,127 $122,869 $112,105 Stock-based compensation expense (2,281) (2,251) (8,965) (9,518)Amortization of acquired intangible assets (117) (111) (459) (492)Non-GAAP sales and marketing$30,012 $26,765 $113,445 $102,095 Non-GAAP sales and marketing as a % of revenue 33.7% 35.9% 34.3% 37.6% Non-GAAP general and administrative GAAP general and administrative$17,127 $15,592 $69,222 $61,271 Stock-based compensation expense (5,032) (4,787) (20,483) (19,338)Non-GAAP general and administrative$12,095 $10,805 $48,739 $41,933 Non-GAAP general and administrative as a % of revenue 13.6% 14.5% 14.7% 15.4% Non-GAAP research and development GAAP research and development$12,872 $9,409 $48,699 $36,340 Stock-based compensation expense (2,140) (1,166) (8,296) (4,031)Non-GAAP research and development$10,732 $8,243 $40,403 $32,309 Non-GAAP research and development as a % of revenue 12.0% 11.0% 12.2% 11.9%

AvePoint Announces Fourth Quarter and Full Year 2024 Financial Results

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