AVPT - AvePoint Announces First Quarter 2022 Financial Results
First quarter SaaS revenue of $26.6 million, up 45% year-over-year
First quarter total revenue of $50.3 million, up 30% year-over-year
Total ARR of $167.4 million, up 30% year-over-year
JERSEY CITY, N.J., May 12, 2022 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ: AVPT), the most advanced SaaS and data management platform provider, today announced financial results for the first quarter ended March 31, 2022.
“AvePoint’s first quarter results were a good start to 2022, with robust SaaS revenue growth of 45%, solid ARR growth of 30% and profitability that was ahead of expectations,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “Underpinning our strong revenue growth is the continued evolution of our full suite of SaaS solutions that enable organizations worldwide to collaborate with confidence in the cloud by securing collaboration data, sustaining the connections between people, and ensuring business continuity. I'm thankful to our AvePoint team for its continued focus on execution through extending innovative product offerings, expanding our channel business, and quickly responding to the evolving market trends our existing customers face as they continue their cloud transformations.”
First Quarter 2022 Financial Highlights
- Revenue : Total revenue for the first quarter of 2022 was $50.3 million, up 30% from the first quarter of 2021. Within total revenue, SaaS revenue was $26.6 million, up 45% from the first quarter of 2021, and term license and support revenue was $10.2 million, up 17% from the first quarter of 2021.
- Gross Profit : Gross profit for the first quarter of 2022 was $35.7 million, compared to $28.0 million for the first quarter of 2021. Gross margin for the first quarter of 2022 was 70.9%, compared to 72.2% for the first quarter of 2021. Non-GAAP gross profit for the first quarter of 2022 was $36.2 million, compared to $28.1 million for the first quarter of 2021. Non-GAAP gross margin was 72.1% for the first quarter of 2022, compared to 72.5% for the first quarter of 2021.
- Operating Income/(Loss): Operating loss for the first quarter of 2022 was $(13.8) million, compared to $(5.9) million for the first quarter of 2021. Non-GAAP operating loss for the first quarter of 2022 was $(5.6) million, compared to $(2.6) million for the first quarter of 2021.
- Cash and Short-Term Investments: $260 million as of March 31, 2022.
First Quarter Key Highlights
- Grew total ARR 30% year-over-year to $167.4 million.
- Reported dollar-based net retention rate of 108%.
- Expanded robust data protection capabilities with the introduction of ransomware detection .
- Introduced AvePoint Entrust , which manages administrative users, processes, and data insights across multi-cloud tenants, and Confide , AvePoint’s secure virtual data room workspace designed to help business users with swift and secure collaboration on confidential projects.
- To date, repurchased 945,000 shares under the share repurchase program at a cost of approximately $4.8 million.
Financial Outlook
AvePoint is providing guidance for its second quarter and full year 2022 as follows:
- Second Quarter 2022 Guidance : Total revenue is expected to be in the range of $54.0 million to $56.0 million or approximately 21% year-over-year growth. Non-GAAP operating loss is expected to be in the range of $(1.5) to $(2.5) million.
- Full Year 2022 Guidance : Total revenue is expected to be in the range of $238.0 million to $244.0 million or approximately 26% 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, May 12, 2022, to review its first quarter 2022 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 (877) 224-6304 for US participants and 1 (416) 981-9015 for those outside the US. The conference ID for the call is 22018544. 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 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 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.
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 |
| March 31, |
| 2022 |
| 2021 |
| Revenue: |
| SaaS |
| $ |
| 26,553 |
| $ |
| 18,259 |
| Term license and support |
| 10,202 |
| 8,727 |
| Services |
| 8,925 |
| 5,916 |
| Maintenance |
| 4,441 |
| 5,409 |
| Perpetual license |
| 170 |
| 489 |
| Total revenue |
| 50,291 |
| 38,800 |
| Cost of revenue: |
| SaaS |
| 5,520 |
| 4,440 |
| Term license and support |
| 576 |
| 273 |
| Services |
| 8,259 |
| 5,585 |
| Maintenance |
| 275 |
| 480 |
| Total cost of revenue |
| 14,630 |
| 10,778 |
| Gross profit |
| 35,661 |
| 28,022 |
| Operating expenses: |
| Sales and marketing |
| 27,054 |
| 19,301 |
| General and administrative |
| 15,542 |
| 10,292 |
| Research and development |
| 6,402 |
| 4,102 |
| Depreciation and amortization |
| 511 |
| 258 |
| Total operating expenses |
| 49,509 |
| 33,953 |
| Loss from operations |
| (13,848 |
| ) |
| (5,931 |
| ) |
| Gain on earn-out and warrant liabilities |
| 3,267 |
| — |
| Interest income, net |
| 14 |
| 13 |
| Other expense, net |
| (177 |
| ) |
| (63 |
| ) |
| Loss before income taxes |
| (10,744 |
| ) |
| (5,981 |
| ) |
| Income tax expense (benefit) |
| 309 |
| (1,039 |
| ) |
| Net loss |
| $ |
| (11,053 |
| ) |
| $ |
| (4,942 |
| ) |
| Net income attributable to and accretion of redeemable noncontrolling interest |
| (617 |
| ) |
| (397 |
| ) |
| Net loss attributable to AvePoint, Inc. |
| $ |
| (11,670 |
| ) |
| $ |
| (5,339 |
| ) |
| Deemed dividends on preferred stock |
| — |
| (8,794 |
| ) |
| Net loss available to common shareholders |
| $ |
| (11,670 |
| ) |
| $ |
| (14,133 |
| ) |
| Loss per share: |
| Basic |
| $ |
| (0.06 |
| ) |
| $ |
| (0.14 |
| ) |
| Diluted |
| $ |
| (0.06 |
| ) |
| $ |
| (0.14 |
| ) |
| Shares used in computing loss per share: |
| Basic |
| 182,833 |
| 100,773 |
| Diluted |
| 182,833 |
| 100,773 |
AvePoint, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except par value)
(Unaudited)
| March 31, |
| December 31, |
| 2022 |
| 2021 |
| Assets |
| Current assets: |
| Cash and cash equivalents |
| $ |
| 78,764 |
| $ |
| 268,217 |
| Short-term investments |
| 181,292 |
| 2,411 |
| Accounts receivable, net of allowance of $805 and $838 at March 31, 2022 and December 31, 2021, respectively |
| 48,039 |
| 55,067 |
| Prepaid expenses and other current assets |
| 7,575 |
| 8,461 |
| Total current assets |
| 315,670 |
| 334,156 |
| Property and equipment, net |
| 4,457 |
| 3,922 |
| Goodwill and other intangible assets, net |
| 8,492 |
| — |
| Operating lease right-of-use assets |
| 13,409 |
| — |
| Deferred contract costs |
| 39,090 |
| 38,926 |
| Other assets |
| 10,350 |
| 11,734 |
| Total assets |
| $ |
| 391,468 |
| $ |
| 388,738 |
| Liabilities, mezzanine equity, and stockholders ’ deficiency |
| Current liabilities: |
| Accounts payable |
| $ |
| 1,795 |
| $ |
| 1,824 |
| Accrued expenses and other liabilities |
| 27,277 |
| 35,062 |
| Current portion of deferred revenue |
| 76,077 |
| 74,294 |
| Total current liabilities |
| 105,149 |
| 111,180 |
| Long-term operating lease liabilities |
| 10,177 |
| — |
| Long-term portion of deferred revenue |
| 7,886 |
| 8,038 |
| Earn-out shares liabilities |
| 12,801 |
| 10,012 |
| Other non-current liabilities |
| 4,400 |
| 3,943 |
| Total liabilities |
| 140,413 |
| 133,173 |
| Commitments and contingencies |
| Mezzanine equity |
| Redeemable noncontrolling interest |
| 5,818 |
| 5,210 |
| Total mezzanine equity |
| 5,818 |
| 5,210 |
| Stockholders’ equity |
| Common stock, $0.0001 par value; 1,000,000 shares authorized, 182,493 and 181,822 shares issued and outstanding, at March 31, 2022 and December 31, 2021, respectively |
| 18 |
| 18 |
| Additional paid-in capital |
| 634,070 |
| 625,056 |
| Treasury stock |
| (2,482 |
| ) |
| (1,739 |
| ) |
| Accumulated other comprehensive income |
| 598 |
| 2,317 |
| Accumulated deficit |
| (386,967 |
| ) |
| (375,297 |
| ) |
| Total stockholders’ equity |
| 245,237 |
| 250,355 |
| Total liabilities, mezzanine equity, and stockholders’ equity |
| $ |
| 391,468 |
| $ |
| 388,738 |
AvePoint, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| For the Three Months Ended |
| March 31, |
| 2022 |
| 2021 |
| Operating activities |
| Net loss |
| $ |
| (11,053 |
| ) |
| $ |
| (4,942 |
| ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
| Depreciation and amortization |
| 1,662 |
| 258 |
| Foreign currency remeasurement loss (gain) |
| 194 |
| (71 |
| ) |
| Provision for doubtful accounts |
| (9 |
| ) |
| (393 |
| ) |
| Stock-based compensation |
| 8,274 |
| 3,289 |
| (Gain) loss on disposal of property and equipment |
| (12 |
| ) |
| 1 |
| Deferred income taxes |
| (9 |
| ) |
| — |
| Change in value of earn-out and warrant liabilities |
| (3,252 |
| ) |
| — |
| Changes in operating assets and liabilities: |
| Accounts receivable and long-term unbilled receivables |
| 9,248 |
| 6,224 |
| Prepaid expenses and other current assets |
| 205 |
| (379 |
| ) |
| Deferred contract costs and other assets |
| (2,090 |
| ) |
| (969 |
| ) |
| Accounts payable, accrued expenses and other liabilities |
| (11,725 |
| ) |
| (7,462 |
| ) |
| Deferred revenue |
| 2,444 |
| 179 |
| Net cash used in operating activities |
| (6,123 |
| ) |
| (4,265 |
| ) |
| Investing activities |
| Maturities of investments |
| 861 |
| — |
| Purchases of investments |
| (179,890 |
| ) |
| (268 |
| ) |
| Acquisition of I-Access, net of cash acquired |
| (1,473 |
| ) |
| — |
| Purchase of property and equipment |
| (969 |
| ) |
| (266 |
| ) |
| Net cash used in investing activities |
| (181,471 |
| ) |
| (534 |
| ) |
| Financing activities |
| Payments of transaction fees |
| — |
| (1,255 |
| ) |
| Purchase of common stock |
| (744 |
| ) |
| — |
| Proceeds from stock option exercises |
| 1,036 |
| 1,126 |
| Proceeds from sale of common shares of subsidiary |
| — |
| 753 |
| Repayments of finance leases |
| (5 |
| ) |
| (7 |
| ) |
| Net cash provided by financing activities |
| 287 |
| 617 |
| Effect of exchange rates on cash |
| (2,146 |
| ) |
| (365 |
| ) |
| Net decrease in cash and cash equivalents |
| (189,453 |
| ) |
| (4,547 |
| ) |
| Cash and cash equivalents at beginning of period |
| 268,217 |
| 69,112 |
| Cash and cash equivalents at end of period |
| $ |
| 78,764 |
| $ |
| 64,565 |
| Supplemental disclosures of cash flow information |
| Income taxes paid |
| $ |
| 335 |
| $ |
| 304 |
| Noncash acquisition of I-Access |
| $ |
| 5,636 |
| $ |
| — |
AvePoint, Inc. and Subsidiaries
Non-GAAP Reconciliations
(In thousands)
(Unaudited)
| For the Three Months Ended |
| March 31, |
| 2022 |
| 2021 |
| Non-GAAP operating income |
| GAAP operating loss |
| $ |
| (13,848 |
| ) |
| $ |
| (5,931 |
| ) |
| Stock-based compensation expense |
| 8,274 |
| 3,289 |
| Non-GAAP operating income |
| $ |
| (5,574 |
| ) |
| $ |
| (2,642 |
| ) |
| Non-GAAP operating margin |
| -11.1 |
| % |
| -6.8 |
| % |
| Non-GAAP gross profit |
| GAAP gross profit |
| $ |
| 35,661 |
| $ |
| 28,022 |
| Stock-based compensation expense |
| 578 |
| 90 |
| Non-GAAP gross profit |
| $ |
| 36,239 |
| $ |
| 28,112 |
| Non-GAAP gross margin |
| 72.1 |
| % |
| 72.5 |
| % |
| Non-GAAP sales and marketing |
| GAAP sales and marketing |
| $ |
| 27,054 |
| $ |
| 19,301 |
| Stock-based compensation expense |
| (2,462 |
| ) |
| (1,111 |
| ) |
| Non-GAAP sales and marketing |
| $ |
| 24,592 |
| $ |
| 18,190 |
| Non-GAAP sales and marketing as a % of revenue |
| 48.9 |
| % |
| 46.9 |
| % |
| Non-GAAP general and administrative |
| GAAP general and administrative |
| $ |
| 15,542 |
| $ |
| 10,292 |
| Stock-based compensation expense |
| (4,484 |
| ) |
| (1,991 |
| ) |
| Non-GAAP general and administrative |
| $ |
| 11,058 |
| $ |
| 8,301 |
| Non-GAAP general and administrative as a % of revenue |
| 22.0 |
| % |
| 21.4 |
| % |
| Non-GAAP research and development |
| GAAP research and development |
| $ |
| 6,402 |
| $ |
| 4,102 |
| Stock-based compensation expense |
| (750 |
| ) |
| (97 |
| ) |
| Non-GAAP research and development |
| $ |
| 5,652 |
| $ |
| 4,005 |
| Non-GAAP research and development as a % of revenue |
| 11.2 |
| % |
| 10.3 |
| % |