JERSEY CITY, N.J., Nov. 15, 2021 (GLOBE NEWSWIRE) -- 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 Mannion

Sapphire Investor Relations, LLC.

ir@avepoint.com

617-542-6180

AvePoint, Inc. and Subsidiaries

Condensed 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 Subsidiaries

Condensed 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 Subsidiaries

Condensed 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 Subsidiaries

Non-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 Announces Third Quarter 2021 Financial Results