Full year SaaS revenue of $161.0 million, representing 37% year-over-year growth

Full year Total revenue of $271.8 million, representing 17% year-over-year growth

Total ARR of $264.5 million, representing 23% year-over-year growth, 24% adjusted for FX

JERSEY CITY, N.J., Feb. 29, 2024 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ:AVPT), the most advanced platform to optimize SaaS operations and secure collaboration, today announced financial results for the fourth quarter and full year ended December 31, 2023.

"Our fourth quarter results were an outstanding close to our strongest year yet as a public company," said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. "The strength and differentiation of our platform offering, coupled with the continued customer demand to manage and protect critical data, reduce costs and improve productivity, enabled us to meaningfully outperform our financial guidance, as well as show substantial cash flow generation and improvement across key customer metrics. Looking ahead, our ability to secure and manage organizations' rapidly expanding data estates leaves us well positioned to drive businesses' generative AI adoption in 2024 and beyond."

Fourth Quarter 2023 Financial Highlights

Revenue: Total revenue was $74.6 million, up 17% from the fourth quarter of 2022. Within total revenue, SaaS revenue was $45.3 million, up 37% from the fourth quarter of 2022.
Gross Profit: GAAP gross profit was $55.0 million, compared to $44.8 million for the fourth quarter of 2022. Non-GAAP gross profit was $56.1 million, compared to $45.9 million for the fourth quarter of 2022. Non-GAAP gross margin was 75.2%, compared to 72.2% for the fourth quarter of 2022.
Operating Income/(Loss): GAAP operating income was $0.9 million, compared to a GAAP operating loss of $(8.0) million for the fourth quarter of 2022. Non-GAAP operating income was $10.3 million, compared to $1.4 million for the fourth quarter of 2022.

Full Year 2023 Financial Highlights

Revenue: Total revenue was $271.8 million, up 17% from the full year 2022. Within total revenue, SaaS revenue was $161.0 million, up 37% from the full year 2022.
Gross Profit: GAAP gross profit was $194.4 million, compared to $166.1 million for the full year 2022. Non-GAAP gross profit was $198.5 million, compared to $169.3 million for the full year 2022. Non-GAAP gross margin was 73.0%, compared to 72.9% for the full year 2022.
Operating Income/(Loss): GAAP operating loss was $(15.4) million, compared to $(41.1) million for the full year 2022. Non-GAAP operating income was $22.2 million, compared to a non-GAAP operating loss of $(2.9) million for the full year 2022.
Cash and short-term investments: $226.9 million as of December 31, 2023.
Cash from operations: for the twelve months ended December 31, 2023, the Company generated $34.7 million of cash from operations, compared to $(0.8) million in the prior year period.

Fourth Quarter 2023 Key Performance Indicators and Recent Business Highlights

ARR as of December 31, 2023 was $264.5 million, up 23% year-over-year. Adjusted for FX, ARR grew 24%.
Adjusted for FX, dollar-based gross retention rate was 87%, while dollar-based net retention rate was 109%. On an as-reported basis, dollar-based gross retention rate was 86%, while dollar-based net retention rate was 108%.
Announced the launch of AvePoint Opus, our AI-powered information lifecycle management solution, to enable organizations to manage information and ensure compliance, optimize cloud storage, and streamline processes.
Continued our focus on accelerating the adoption of generative AI around the globe, including signing an agreement on February 28, 2024 to invest in a new growth equity fund, A3Ventures, which will pursue B2B software companies that are ready for the global stage, including those that accelerate innovation in areas complementing AvePoint's technology portfolio and building on the Company's cloud platform.
Launched AvePoint AI, our program integrating AI across all aspects of our Company – from our products and services to our own business and operations. In addition, the program will include the opening of an AI Industry lab in partnership with the Economic Development Board of Singapore and other institutes of higher learning.

Financial Outlook

For the first quarter of 2024, the Company expects:

Total revenues of $71.4 million to $73.4 million, or year-over-year growth of 22% at the midpoint.
Non-GAAP operating income of $3.3 million to $4.3 million.

For the full year 2024, the Company expects:

Total ARR of $314.7 million to $320.7 million, or year-over-year growth of 20% at the midpoint.
Total revenues of $308.6 million to $316.6 million, or year-over-year growth of 15% at the midpoint.
Non-GAAP operating income of $27.4 million to $30.4 million.

Quarterly Conference Call

AvePoint will host a conference call today, February 29, 2024, to review its fourth quarter and full year 2023 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 5410286. 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 to optimize SaaS operations and secure collaboration. Over 17,000 customers worldwide rely on our solutions to modernize the digital workplace across Microsoft, Google, Salesforce and other collaboration environments. AvePoint's global channel partner program includes over 3,500 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

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. 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.

Disclosure Information

AvePoint uses the https://ir.avepoint.com/ website 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

AvePoint

Jamie Arestia

ir@avepoint.com

(551) 220-5654

Media Contact

AvePoint

Nicole Caci

pr@avepoint.com

(201) 201-8143

AvePoint, Inc.

Condensed Consolidated Statements of Operations

(In thousands, except per share amounts)

(Unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2023			2022			2023			2022
Revenue:
SaaS	$	45,260		$	33,049		$	160,961		$	117,180
Term license and support		12,270			14,713			52,744			57,214
Services		13,788			12,052			44,795			41,283
Maintenance		3,306			3,794			13,325			16,662
Total revenue		74,624			63,608			271,825			232,339
Cost of revenue:
SaaS		9,338			8,379			35,924			27,313
Term license and support		505			406			1,946			2,006
Services		9,576			9,833			38,807			36,037
Maintenance		199			172			783			920
Total cost of revenue		19,618			18,790			77,460			66,276
Gross profit		55,006			44,818			194,365			166,063
Operating expenses:
Sales and marketing		29,127			28,636			112,105			110,638
General and administrative		15,592			16,721			61,271			65,132
Research and development		9,409			7,509			36,340			31,359
Total operating expenses		54,128			52,866			209,716			207,129
Income (loss) from operations		878			(8,048	)		(15,351	)		(41,066	)
Other (expense) income, net		(1,687	)		1,340			(3,263	)		7,416
Loss before income taxes		(809	)		(6,708	)		(18,614	)		(33,650	)
Income tax (benefit) expense		(5,245	)		4,939			2,887			5,038
Net income (loss)	$	4,436		$	(11,647	)	$	(21,501	)	$	(38,688	)
Net income attributable to noncontrolling interest		(167	)		(1,072	)		(224	)		(2,942	)
Net loss attributable to AvePoint, Inc.	$	4,269		$	(12,719	)	$	(21,725	)	$	(41,630	)
Net loss available to common shareholders	$	4,269		$	(12,719	)	$	(21,725	)	$	(41,630	)
Earnings per share:
Basic	$	0.02		$	(0.07	)	$	(0.12	)	$	(0.23	)
Diluted	$	0.02		$	(0.07	)	$	(0.12	)	$	(0.23	)
Weighted average shares outstanding:
Basic		181,152			181,795			182,257			181,957
Diluted		198,570			181,795			182,257			181,957

AvePoint, Inc.

Condensed Consolidated Balance Sheets

(In thousands, except par value)

	December 31,			December 31,
	2023			2022
Assets
Current assets:
Cash and cash equivalents	$	223,162		$	227,188
Short-term investments		3,721			2,620
Accounts receivable, net of allowance of $926 and $725, respectively		85,877			66,474
Prepaid expenses and other current assets		12,824			10,013
Total current assets		325,584			306,295
Property and equipment, net		5,118			5,537
Goodwill		19,156			18,904
Intangible assets, net		10,546			11,079
Operating lease right-of-use assets		13,908			15,855
Deferred contract costs		54,675			48,553
Other assets		13,595			9,310
Total assets	$	442,582		$	415,533
Liabilities, mezzanine equity, and stockholders' equity
Current liabilities:
Accounts payable	$	1,384		$	1,519
Accrued expenses and other current liabilities		53,766			47,784
Current portion of deferred revenue		121,515			93,405
Total current liabilities		176,665			142,708
Long-term operating lease liabilities		9,383			11,348
Long-term portion of deferred revenue		7,741			8,085
Earn-out shares liabilities		18,346			6,631
Other liabilities		5,603			3,607
Total liabilities		217,738			172,379
Commitments and contingencies
Mezzanine equity
Redeemable noncontrolling interest		6,038			14,007
Total mezzanine equity		6,038			14,007
Stockholders' equity
Common stock, $0.0001 par value; 1,000,000 shares authorized, 184,652 and 185,278 shares issued and outstanding as of December 31, 2023 and 2022, respectively		18			19
Additional paid-in capital		667,881			665,715
Treasury stock		—			(21,666	)
Accumulated other comprehensive income		3,196			2,006
Accumulated deficit		(460,496	)		(416,927	)
Noncontrolling interest		8,207			—
Total stockholders' equity		218,806			229,147
Total liabilities, mezzanine equity, and stockholders' equity	$	442,582		$	415,533

AvePoint, Inc.

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

	Year Ended
	December 31,
	2023			2022
Operating activities
Net loss	$	(21,501	)	$	(38,688	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization		4,687			3,494
Operating lease right-of-use assets expense		6,234			5,945
Foreign currency remeasurement loss		—			835
Stock-based compensation		36,048			37,218
Deferred income taxes		(864	)		3,701
Other		1,068			(607	)
Change in value of earn-out and warrant liabilities		11,454			(4,402	)
Changes in operating assets and liabilities:
Accounts receivable		(19,448	)		(14,388	)
Prepaid expenses and other current assets		(2,773	)		(2,108	)
Deferred contract costs and other assets		(7,687	)		(9,596	)
Accounts payable, accrued expenses, operating lease liabilities and other liabilities		609			(2,553	)
Deferred revenue		26,867			20,375
Net cash provided by (used in) operating activities		34,694			(774	)
Investing activities
Maturities of investments		2,620			183,554
Purchases of investments		(3,497	)		(180,969	)
Cash paid in business combinations and asset acquisitions, net of cash acquired		—			(18,572	)
Capitalization of internal-use software		(1,434	)		(1,612	)
Purchase of property and equipment		(2,087	)		(3,853	)
Investment in notes		(1,250	)		—
Net cash used in investing activities		(5,648	)		(21,452	)
Financing activities
Repurchase of common stock		(39,036	)		(19,927	)
Proceeds from stock option exercises		5,569			2,818
Repayments of finance leases		(64	)		(39	)
Payments of debt issuance costs		(136	)		—
Net cash used in financing activities		(33,667	)		(17,148	)
Effect of exchange rates on cash		595			(1,655	)
Net decrease in cash and cash equivalents		(4,026	)		(41,029	)
Cash and cash equivalents at beginning of period		227,188			268,217
Cash and cash equivalents at end of period	$	223,162		$	227,188
Supplemental disclosures of cash flow information
Income taxes paid	$	6,112		$	3,320
Contingent consideration in business combinations	$	—		$	5,635
Common stock issued in business combination	$	—		$	1,517
Loan to certain acquiree shareholders	$	—		$	235

AvePoint, Inc.

Non-GAAP Reconciliations

(In thousands)

(Unaudited)

	Three Months Ended						Year Ended
	December 31,						December 31,
	2023			2022			2023			2022
Non-GAAP operating income
GAAP operating loss	$	878		$	(8,048	)	$	(15,351	)	$	(41,066	)
Stock-based compensation expense		9,073			8,931			36,048			37,218
Amortization of acquired intangible assets		350			527			1,456			955
Non-GAAP operating income (loss)	$	10,301		$	1,410		$	22,153		$	(2,893	)
Non-GAAP operating margin		13.8	%		2.2	%		8.1	%		-1.2	%



Non-GAAP gross profit
GAAP gross profit	$	55,006		$	44,818		$	194,365		$	166,063
Stock-based compensation expense		869			692			3,161			2,640
Amortization of acquired intangible assets		239			393			964			617
Non-GAAP gross profit	$	56,114		$	45,903		$	198,490		$	169,320
Non-GAAP gross margin		75.2	%		72.2	%		73.0	%		72.9	%

Non-GAAP sales and marketing
GAAP sales and marketing	$	29,127		$	28,636		$	112,105		$	110,638
Stock-based compensation expense		(2,251	)		(2,688	)		(9,518	)		(11,393	)
Amortization of acquired intangible assets		(111	)		(134	)		(492	)		(338	)
Non-GAAP sales and marketing	$	26,765		$	25,814		$	102,095		$	98,907
Non-GAAP sales and marketing as a % of revenue		35.9	%		40.6	%		37.6	%		42.6	%

Non-GAAP general and administrative
GAAP general and administrative	$	15,592		$	16,721		$	61,271		$	65,132
Stock-based compensation expense		(4,787	)		(4,573	)		(19,338	)		(19,398	)
Non-GAAP general and administrative	$	10,805		$	12,148		$	41,933		$	45,734
Non-GAAP general and administrative as a % of revenue		14.5	%		19.1	%		15.4	%		19.7	%

Non-GAAP research and development
GAAP research and development	$	9,409		$	7,509		$	36,340		$	31,359
Stock-based compensation expense		(1,166	)		(978	)		(4,031	)		(3,787	)
Non-GAAP research and development	$	8,243		$	6,531		$	32,309		$	27,572
Non-GAAP research and development as a % of revenue		11.0	%		10.3	%		11.9	%		11.9	%

AvePoint Announces Fourth Quarter and Full Year 2023 Financial Results