AvePoint Announces Third Quarter 2021 Financial Results
November 15 2021 - 7:00AM
AvePoint, Inc. (NASDAQ: AVPT), the largest data management
solutions provider for Microsoft 365, today announced
financial results for the third quarter ended September 30,
2021.
"AvePoint delivered its eleventh consecutive
record quarter with total revenue of $54 million and 79% year over
year growth in subscription revenue for our SaaS and data
management platform," said Dr. Tianyi Jiang (TJ), CEO and
Co-Founder, AvePoint. "With most companies still in the early
stages of their SaaS optimization and multi-cloud shifts, there is
a massive market opportunity for AvePoint to manage and protect
digital collaboration data on a recurring basis that will only
increase as companies' SaaS operations become more mature and
complex."
Third Quarter 2021 Financial
Results
- Total Revenue of $53.9 million, up 36% year-over-year
- Total ARR of $147.5 million as of September 30, 2021, up 32%
year-over-year
- SaaS Revenue of $22.4 million, up 59% year-over-year
- GAAP Operating Loss of $28.7 million
- Non-GAAP Operating Income of $4.0 million
- Cash and Short-Term Investments of approximately $262.3 million
as of September 30, 2021
Third Quarter 2021 Key Highlights
- Launched first global partner program, designed to support
the unique needs of different types of channel partners as
they build services around digital collaboration.
- AvePoint was awarded a $37 million SGD ($27.5 million USD)
contract from lead agency Temasek Polytechnic to deploy a training
management platform for career professionals. The platform will be
powered by AvePoint EduTech and will be available to six
institutions of higher learning (IHL) for over 100,000
students.
- Maintained triple digit growth in monthly recurring revenue
(MRR) tied to the managed services provider (MSP) business.
- Achieved record level sequential growth in accounts with over
$100k in annual recurring revenue (ARR).
Financial Outlook
For the fourth quarter of 2021, AvePoint currently expects:
- Total revenues between $56.4 and $58.4 million
- Non-GAAP operating income between break even and $1.5
million
For the full year ending December 31, 2021, AvePoint currently
expects:
- Total revenues between $194.4 and $196.4 million
- Non-GAAP operating income between $4.7 and $6.2 million
Conference Call
AvePoint will host a conference call today on
November 15, 2021 to review its third quarter 2021 financial
results and to discuss its financial outlook. The call is scheduled
to begin at 8:30am 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 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 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 registration
statement on Form S-1 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 give any assurance
that it will achieve its expectations.
Investor Contacts:
AvePoint, Inc.Erica
MannionSapphire Investor Relations,
LLC.ir@avepoint.com617-542-6180
AvePoint, Inc. and SubsidiariesCondensed
Consolidated Statements of Operations(In thousands, except per
share amounts)(Unaudited)
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SaaS |
|
$ |
22,410 |
|
|
$ |
14,092 |
|
|
$ |
61,255 |
|
|
$ |
36,034 |
|
Termed license and support |
|
|
17,477 |
|
|
|
8,171 |
|
|
|
37,292 |
|
|
|
23,272 |
|
Services |
|
|
8,143 |
|
|
|
10,870 |
|
|
|
21,361 |
|
|
|
26,173 |
|
Maintenance and OEM |
|
|
5,293 |
|
|
|
6,056 |
|
|
|
16,160 |
|
|
|
17,837 |
|
Perpetual license |
|
|
604 |
|
|
|
605 |
|
|
|
2,003 |
|
|
|
2,095 |
|
Total revenue |
|
|
53,927 |
|
|
|
39,794 |
|
|
|
138,071 |
|
|
|
105,411 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SaaS |
|
|
4,866 |
|
|
|
2,799 |
|
|
|
13,870 |
|
|
|
7,856 |
|
Termed license and support |
|
|
211 |
|
|
|
437 |
|
|
|
714 |
|
|
|
1,257 |
|
Services |
|
|
9,435 |
|
|
|
6,716 |
|
|
|
21,528 |
|
|
|
19,605 |
|
Maintenance and OEM |
|
|
710 |
|
|
|
304 |
|
|
|
1,608 |
|
|
|
978 |
|
Total cost of revenue |
|
|
15,222 |
|
|
|
10,256 |
|
|
|
37,720 |
|
|
|
29,696 |
|
Gross profit |
|
|
38,705 |
|
|
|
29,538 |
|
|
|
100,351 |
|
|
|
75,715 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
25,186 |
|
|
|
21,830 |
|
|
|
73,488 |
|
|
|
49,881 |
|
General and administrative |
|
|
22,230 |
|
|
|
10,469 |
|
|
|
44,186 |
|
|
|
20,918 |
|
Research and development |
|
|
19,648 |
|
|
|
3,003 |
|
|
|
27,633 |
|
|
|
8,760 |
|
Depreciation and amortization |
|
|
326 |
|
|
|
259 |
|
|
|
863 |
|
|
|
800 |
|
Total operating expenses |
|
|
67,390 |
|
|
|
35,561 |
|
|
|
146,170 |
|
|
|
80,359 |
|
Loss from operations |
|
|
(28,685 |
) |
|
|
(6,023 |
) |
|
|
(45,819 |
) |
|
|
(4,644 |
) |
Gain on earn-out and warrant
liabilities |
|
|
13,650 |
|
|
|
— |
|
|
|
13,650 |
|
|
|
— |
|
Interest income, net |
|
|
56 |
|
|
|
17 |
|
|
|
80 |
|
|
|
26 |
|
Other income (expense),
net |
|
|
(299 |
) |
|
|
65 |
|
|
|
(300 |
) |
|
|
(324 |
) |
Loss before income taxes |
|
|
(15,278 |
) |
|
|
(5,941 |
) |
|
|
(32,389 |
) |
|
|
(4,942 |
) |
Income tax (benefit)
expense |
|
|
(5,521 |
) |
|
|
6,244 |
|
|
|
(6,633 |
) |
|
|
(72 |
) |
Net loss |
|
$ |
(9,757 |
) |
|
$ |
(12,185 |
) |
|
$ |
(25,756 |
) |
|
$ |
(4,870 |
) |
Net loss attributable to and
accretion of redeemable noncontrolling interest |
|
|
(517 |
) |
|
|
— |
|
|
|
(1,413 |
) |
|
|
— |
|
Net loss attributable to
AvePoint, Inc. |
|
$ |
(10,274 |
) |
|
$ |
(12,185 |
) |
|
$ |
(27,169 |
) |
|
$ |
(4,870 |
) |
Deemed dividends on preferred
stock |
|
|
608 |
|
|
|
(5,615 |
) |
|
|
(32,928 |
) |
|
|
(21,413 |
) |
Net loss available to common
shareholders |
|
$ |
(9,666 |
) |
|
$ |
(17,800 |
) |
|
$ |
(60,097 |
) |
|
$ |
(26,283 |
) |
Loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.05 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.47 |
) |
|
$ |
(0.30 |
) |
Diluted |
|
$ |
(0.05 |
) |
|
$ |
(0.20 |
) |
|
$ |
(0.47 |
) |
|
$ |
(0.30 |
) |
Shares used in computing loss
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
176,621 |
|
|
|
90,805 |
|
|
|
126,738 |
|
|
|
86,784 |
|
Diluted |
|
|
176,621 |
|
|
|
90,805 |
|
|
|
126,738 |
|
|
|
86,784 |
|
AvePoint, Inc. and SubsidiariesCondensed
Consolidated Balance Sheets(In thousands, except par
value)(Unaudited)
|
|
September 30, |
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
260,704 |
|
|
$ |
69,112 |
|
Short-term investments |
|
|
1,614 |
|
|
|
992 |
|
Accounts receivable, net of allowance of $878 and $1,767 at
September 30, 2021 and December 31, 2020, respectively |
|
|
54,226 |
|
|
|
48,250 |
|
Prepaid expenses and other current assets |
|
|
13,086 |
|
|
|
2,343 |
|
Total current assets |
|
|
329,630 |
|
|
|
120,697 |
|
Property and equipment,
net |
|
|
3,252 |
|
|
|
2,663 |
|
Deferred contract costs |
|
|
35,267 |
|
|
|
31,943 |
|
Long-term unbilled
receivables |
|
|
6,104 |
|
|
|
5,499 |
|
Other assets |
|
|
5,911 |
|
|
|
8,252 |
|
Total assets |
|
$ |
380,164 |
|
|
$ |
169,054 |
|
Liabilities, mezzanine
equity, and stockholders’ deficiency |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
2,265 |
|
|
$ |
774 |
|
Accrued expenses and other liabilities |
|
|
25,782 |
|
|
|
26,245 |
|
Current portion of deferred revenue |
|
|
71,251 |
|
|
|
65,203 |
|
Total current liabilities |
|
|
99,298 |
|
|
|
92,222 |
|
Long-term portion of deferred
revenue |
|
|
6,875 |
|
|
|
9,485 |
|
Share-based awards classified
as liabilities |
|
|
— |
|
|
|
43,502 |
|
Earn-out liabilities |
|
|
17,125 |
|
|
|
— |
|
Warrant liabilities |
|
|
795 |
|
|
|
— |
|
Other non-current
liabilities |
|
|
3,947 |
|
|
|
3,658 |
|
Total liabilities |
|
|
128,040 |
|
|
|
148,867 |
|
Commitments and contingencies
(Note 10) |
|
|
|
|
|
|
|
|
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 |
|
|
4,631 |
|
|
|
3,061 |
|
Total mezzanine equity |
|
|
4,631 |
|
|
|
213,014 |
|
Stockholders’ deficiency |
|
|
|
|
|
|
|
|
Common stock, $0.0001 par value; 1,000,000 and 243,360 shares
authorized, 180,013 and 100,068 shares issued and outstanding, at
September 30, 2021 and December 31, 2020, respectively |
|
|
18 |
|
|
|
12 |
|
Additional paid-in capital |
|
|
614,569 |
|
|
|
105,159 |
|
Treasury stock |
|
|
(1,739 |
) |
|
|
— |
|
Accumulated other comprehensive income |
|
|
1,892 |
|
|
|
1,791 |
|
Accumulated deficit |
|
|
(367,247 |
) |
|
|
(299,789 |
) |
Total stockholders’
deficiency |
|
|
247,493 |
|
|
|
(192,827 |
) |
Total liabilities, mezzanine
equity, and stockholders’ deficiency |
|
$ |
380,164 |
|
|
$ |
169,054 |
|
AvePoint, Inc. and SubsidiariesCondensed
Consolidated Statements of Cash Flows(In thousands)(Unaudited)
|
|
For the Nine Months Ended |
|
|
|
September 30, |
|
|
|
2021 |
|
|
2020 |
|
Operating activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(25,756 |
) |
|
$ |
(4,870 |
) |
Adjustments to reconcile net
loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
863 |
|
|
|
800 |
|
Foreign currency remeasurement (gain) loss |
|
|
(161 |
) |
|
|
368 |
|
Provision for doubtful accounts |
|
|
(880 |
) |
|
|
175 |
|
Stock-based compensation |
|
|
50,475 |
|
|
|
16,235 |
|
Gain on disposal of property and equipment |
|
|
(15 |
) |
|
|
— |
|
Deferred income taxes |
|
|
(1,008 |
) |
|
|
(1,973 |
) |
Change in value of earn-out and warrant liabilities |
|
|
(13,650 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable and long-term unbilled receivables |
|
|
(7,002 |
) |
|
|
(2,416 |
) |
Prepaid expenses and other current assets |
|
|
(10,775 |
) |
|
|
2,836 |
|
Deferred contract costs and other assets |
|
|
(3,269 |
) |
|
|
(3,040 |
) |
Accounts payable, accrued expenses and other liabilities |
|
|
1,836 |
|
|
|
(1,949 |
) |
Deferred revenue |
|
|
5,377 |
|
|
|
4,965 |
|
Net cash provided by (used in)
operating activities |
|
|
(3,965 |
) |
|
|
11,131 |
|
Investing
activities |
|
|
|
|
|
|
|
|
Maturity (purchase) of
short-term investments |
|
|
(638 |
) |
|
|
1,466 |
|
Purchase of property and
equipment |
|
|
(1,445 |
) |
|
|
(314 |
) |
Net cash provided by (used in)
investing activities |
|
|
(2,083 |
) |
|
|
1,152 |
|
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 |
) |
|
|
— |
|
Purchase of treasury
stock |
|
|
(1,631 |
) |
|
|
— |
|
Payment of net cash settlement
for management options |
|
|
(7,530 |
) |
|
|
— |
|
Proceeds from stock option
exercises |
|
|
4,555 |
|
|
|
54 |
|
Proceeds from sale of common
shares of subsidiary |
|
|
753 |
|
|
|
— |
|
Repayments of capital
leases |
|
|
(20 |
) |
|
|
(42 |
) |
Payments of debt issuance
costs |
|
|
— |
|
|
|
(300 |
) |
Proceeds from issuance of
Common stock, net of issuance costs |
|
|
— |
|
|
|
56,753 |
|
Net cash provided by financing
activities |
|
|
197,608 |
|
|
|
22,753 |
|
Effect of exchange rates on
cash |
|
|
32 |
|
|
|
(329 |
) |
Net increase in cash and cash
equivalents |
|
|
191,592 |
|
|
|
34,707 |
|
Cash and cash equivalents at
beginning of period |
|
|
69,112 |
|
|
|
12,162 |
|
Cash and cash equivalents at
end of period |
|
$ |
260,704 |
|
|
$ |
46,869 |
|
Supplemental
disclosures of cash flow information |
|
|
|
|
|
|
|
|
Cash received (paid) for: |
|
|
|
|
|
|
|
|
Interest |
|
$ |
80 |
|
|
$ |
— |
|
Income taxes |
|
$ |
(2,823 |
) |
|
$ |
80 |
|
Non-cash investing and
financing activities |
|
|
|
|
|
|
|
|
Issuance of common shares in exchange for issuance cost |
|
$ |
— |
|
|
$ |
2,408 |
|
Fixed assets acquired under capital leases |
|
$ |
— |
|
|
$ |
28 |
|
AvePoint, Inc. and SubsidiariesNon-GAAP
Reconciliations(In thousands)(Unaudited)
|
|
For the
Three Months Ended |
|
For the Nine
Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Non-GAAP operating income |
|
|
|
|
|
|
|
|
GAAP operating income (loss) |
|
$ |
(28,685 |
) |
|
$ |
(6,023 |
) |
|
$ |
(45,819 |
) |
|
$ |
(4,644 |
) |
Stock-based compensation expense |
|
|
32,676 |
|
|
|
13,381 |
|
|
|
50,475 |
|
|
|
16,235 |
|
Non-GAAP operating income |
|
$ |
3,991 |
|
|
$ |
7,358 |
|
|
$ |
4,656 |
|
|
$ |
11,591 |
|
Non-GAAP operating margin |
|
|
7.4 |
% |
|
|
18.5 |
% |
|
|
3.4 |
% |
|
|
11.0 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP gross profit |
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$ |
38,705 |
|
|
$ |
29,538 |
|
|
$ |
100,351 |
|
|
$ |
75,715 |
|
Stock-based compensation expense |
|
|
2,428 |
|
|
|
214 |
|
|
|
2,790 |
|
|
|
316 |
|
Non-GAAP gross profit |
|
$ |
41,133 |
|
|
$ |
29,752 |
|
|
$ |
103,141 |
|
|
$ |
76,031 |
|
Non-GAAP gross margin |
|
|
76.3 |
% |
|
|
74.8 |
% |
|
|
74.7 |
% |
|
|
72.1 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP sales and marketing |
|
|
|
|
|
|
|
|
GAAP sales and marketing |
|
$ |
25,186 |
|
|
$ |
21,830 |
|
|
$ |
73,488 |
|
|
$ |
49,881 |
|
Stock-based compensation expense |
|
|
(2,171 |
) |
|
|
(7,917 |
) |
|
|
(13,073 |
) |
|
|
(9,227 |
) |
Non-GAAP sales and marketing |
|
$ |
23,015 |
|
|
$ |
13,913 |
|
|
$ |
60,415 |
|
|
$ |
40,654 |
|
Non-GAAP sales and marketing as a % of revenue |
|
|
42.7 |
% |
|
|
35.0 |
% |
|
|
43.8 |
% |
|
|
38.6 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP general and administrative |
|
|
|
|
|
|
|
|
GAAP general and administrative |
|
$ |
22,230 |
|
|
$ |
10,469 |
|
|
$ |
44,186 |
|
|
$ |
20,918 |
|
Stock-based compensation expense |
|
|
(13,020 |
) |
|
|
(5,201 |
) |
|
|
(19,375 |
) |
|
|
(6,496 |
) |
Non-GAAP general and administrative |
|
$ |
9,210 |
|
|
$ |
5,268 |
|
|
$ |
24,811 |
|
|
$ |
14,422 |
|
Non-GAAP general and administrative as a % of revenue |
|
|
17.1 |
% |
|
|
13.2 |
% |
|
|
18.0 |
% |
|
|
13.7 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP research and development |
|
|
|
|
|
|
|
|
GAAP research and development |
|
$ |
19,648 |
|
|
$ |
3,003 |
|
|
$ |
27,633 |
|
|
$ |
8,760 |
|
Stock-based compensation expense |
|
|
(15,057 |
) |
|
|
(49 |
) |
|
|
(15,237 |
) |
|
|
(196 |
) |
Non-GAAP research and development |
|
$ |
4,591 |
|
|
$ |
2,954 |
|
|
$ |
12,396 |
|
|
$ |
8,564 |
|
Non-GAAP research and development as a % of revenue |
|
|
8.5 |
% |
|
|
7.4 |
% |
|
|
9.0 |
% |
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
AvePoint (NASDAQ:AVPT)
Historical Stock Chart
From Aug 2024 to Sep 2024
AvePoint (NASDAQ:AVPT)
Historical Stock Chart
From Sep 2023 to Sep 2024