Start Time: 16:30 January 1, 0000 5:12 PM ET AvePoint, Inc. (NASDAQ:AVPT) Q4 2023 Earnings Conference Call February 29, 2024, 16:30 PM ET Company Participants Tianyi Jiang - Co-Founder and CEO James Caci - CFO James Arestia - VP, IR Conference Call Participants Chirag Ved - Evercore ISI Derrick Wood - Cowen & Company Operator Good day and welcome to the AvePoint Inc. Fourth Quarter Fiscal Year 2023 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions]. Please note that today ...

AvePoint, Inc. (AVPT) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.03 per share. This compares to loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 133.33%. A quarter ago, it was expected that this company would post earnings of $0.02 per share when it actually produced earnings of $0.03, delivering a surprise of 50%.Over the last four quarters, the company has sur ...

Part I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) AvePoint offers a cloud-native data management platform and pursues growth through product expansion, market penetration, and strategic acquisitions [Company and Platform Overview](index=5&type=section&id=Company%20and%20Platform%20Overview) AvePoint offers the cloud-native 'Confidence Platform' for data management, enabling organizations to manage data, optimize IT, and secure the digital workplace - AvePoint provides a cloud-native data management software platform, the 'Confidence Platform', to help organizations manage and protect data, optimize IT operations, and secure the digital workplace, particularly in hybrid work environments[13](index=13&type=chunk) - The company positions itself as a key enabler for enterprise adoption of **generative AI** by addressing fundamental data management, governance, and compliance challenges[15](index=15&type=chunk) - The Confidence Platform is structured into three functional suites: the **Control Suite** (governance and policy enforcement), the **Resilience Suite** (security and data protection), and the **Modernization Suite** (employee productivity and data modernization)[19](index=19&type=chunk) - The platform is highly certified, holding **ISO 27001:2013, ISO 27017:2015, ISO 27701:2019, HITRUST CSF v11.0.1, SOC 2 Type II accreditation, and FedRAMP (Moderate) Authorization**[20](index=20&type=chunk) [Our Growth Strategy](index=8&type=section&id=Our%20Growth%20Strategy) AvePoint's growth is driven by expanding its platform, broadening market presence, increasing customer value, cultivating its partner network, and pursuing strategic acquisitions - Expand the AvePoint Confidence Platform offerings, with a focus on **AI-ready solutions** and continued support for ecosystems like Microsoft, Salesforce, and Google[25](index=25&type=chunk) - Expand market presence by leveraging its global partner ecosystem and direct sales force to attract new customers, particularly **small and medium-sized organizations**[25](index=25&type=chunk) - Increase customer lifetime value through significant investments in its customer success program to **reduce churn and drive land-and-expand opportunities**[25](index=25&type=chunk) - Grow and cultivate its partner and channel network, which is a critical component for driving profitable growth, especially with **small and mid-sized customers**[25](index=25&type=chunk) - Opportunistically pursue strategic acquisitions and investments to acquire complementary products, technologies, and businesses, as demonstrated by **four acquisitions in 2022**[25](index=25&type=chunk) [Sales, Marketing and Customers](index=9&type=section&id=Sales%2C%20Marketing%20and%20Customers) AvePoint employs a global hybrid go-to-market strategy, serving over 21,000 customers across SMB, Mid-Market, and Enterprise segments - The company utilizes a hybrid go-to-market strategy combining a direct sales force with indirect channels, including a partner ecosystem, marketplaces, and a **strategic partnership with Microsoft**[28](index=28&type=chunk) - As of December 31, 2023, AvePoint had **more than 21,000 customers** in over 100 countries[31](index=31&type=chunk) - Customers are classified into three segments: Small Business (SMB) with <500 users, Mid-Market with 500-5,000 users, and Enterprise with >5,000 users[31](index=31&type=chunk) [Human Capital and ESG](index=11&type=section&id=Human%20Capital%20and%20ESG) The company focuses on attracting talent through its core values, operates a formal ESG program, and maintains strong corporate governance practices - As of December 31, 2023, the company had **2,543 employees globally**[39](index=39&type=chunk) - The company's core values are **Agility, Passion, and Teamwork**, which guide its global teams[37](index=37&type=chunk) - AvePoint has an internal ESG Committee and has implemented various initiatives, including environmental footprint reduction, philanthropic partnerships (e.g., Girls Who Code), and diversity programs through its **IDEA Committee**[44](index=44&type=chunk)[49](index=49&type=chunk)[50](index=50&type=chunk) - The company is a founding member of the **AI Trust Foundation**, demonstrating its commitment to the safe, ethical, and responsible use of artificial intelligence[54](index=54&type=chunk) - Corporate governance practices include a **majority-independent Board**, independent committees, a public Code of Ethics, and a robust compliance training program[55](index=55&type=chunk) [Item 1A. Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) The company faces material risks from technology partner dependency, cybersecurity threats, global operations, and identified weaknesses in internal financial controls - A significant risk is the company's **dependency on technology partners, especially Microsoft**, as the business could be harmed if partners develop competing features or alter terms[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk) - The company's ability to **sustain its recent strong growth is not guaranteed** and depends on factors like attracting new customers and managing operational demands[91](index=91&type=chunk)[93](index=93&type=chunk) - **Cybersecurity threats pose a major risk**, as a security compromise could lead to loss of customer data, reputational harm, and significant liabilities[141](index=141&type=chunk)[142](index=142&type=chunk)[149](index=149&type=chunk) - Management has identified **material weaknesses in its internal control over financial reporting**, which could result in material misstatements of financial statements[162](index=162&type=chunk)[163](index=163&type=chunk) - International operations expose the company to risks including **currency fluctuations, political instability, and complex compliance** with foreign laws[128](index=128&type=chunk)[129](index=129&type=chunk) [Item 1C. Cybersecurity](index=37&type=section&id=Item%201C.%20Cybersecurity) The company maintains a robust cybersecurity program led by a CISO, with no material threats identified in 2023 - Cybersecurity governance is led by the **Chief Risk, Privacy and Information Security Officer (CISO)**, who reports to the CEO and provides regular updates to the Board[180](index=180&type=chunk)[181](index=181&type=chunk)[182](index=182&type=chunk) - The company maintains a robust information security program with numerous accreditations, including **SOC 2 Type II, HITRUST, FedRAMP, StateRAMP, and multiple ISO certifications**[174](index=174&type=chunk) - Risk management strategies include regular risk assessments, third-party expert consultations, annual employee training, and incident response simulations[174](index=174&type=chunk)[176](index=176&type=chunk)[178](index=178&type=chunk) - In 2023, AvePoint **did not identify any privacy or cybersecurity threats that materially affected** its business strategy, operations, or financial condition[183](index=183&type=chunk) [Item 2. Properties](index=40&type=section&id=Item%202.%20Properties) The company leases and owns approximately 288,100 square feet of office space globally, which is considered adequate for current needs Office and Facility Space as of December 31, 2023 | Location | Owned (sq. ft. in thousands) | Leased (sq. ft. in thousands) | Total (sq. ft. in thousands) | |---------------|------------------------------|-------------------------------|------------------------------| | U.S. | — | 49.8 | 49.8 | | International | 16.4 | 221.9 | 238.3 | | Total | 16.4 | 271.7 | 288.1 | - The company's principal corporate headquarters are in Jersey City, New Jersey, and principal operating offices are in Richmond, Virginia[186](index=186&type=chunk) Part II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=41&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on Nasdaq, no dividends are planned, and share repurchases continued in Q4 2023 under an authorized program - The company's common stock and warrants trade on Nasdaq under symbols **AVPT and AVPTW**, respectively[193](index=193&type=chunk) - AvePoint **does not anticipate paying dividends** in the foreseeable future, intending to retain funds for business development and growth[195](index=195&type=chunk) Share Repurchases in Q4 2023 | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining in Program | |-------------------------------|------------------------|------------------------------|-------------------------------------------| | Oct 1, 2023 - Oct 31, 2023 | 577,145 | $7.0953 | $92,333,439 | | Nov 1, 2023 - Nov 30, 2023 | 27,306 | $7.5507 | $92,127,260 | | Dec 1, 2023 - Dec 31, 2023 | 130,930 | $8.3304 | $91,036,562 | [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=43&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, the company achieved strong revenue growth, significantly improved profitability, and maintained a robust liquidity position with no debt [2023 Business Highlights and Key Metrics](index=43&type=section&id=2023%20Business%20Highlights%20and%20Key%20Metrics) In fiscal year 2023, the company reported strong growth in ARR and revenue, alongside significant improvements in operating margin and cash flow 2023 Key Financial Highlights (YoY) | Metric | 2023 Value | YoY Change | |-----------------------------|-----------------|------------| | Total ARR | $264.5 million | +23% | | Total Revenue | $271.8 million | +17% | | SaaS Revenue | $161.0 million | +37% | | GAAP Operating Loss | ($15.4 million) | Improvement| | Non-GAAP Operating Income | $22.2 million | Turnaround | | Cash Flow from Operations | $34.7 million | Turnaround | [Results of Operations](index=47&type=section&id=Results%20of%20Operations) Total revenue grew 17.0% in 2023, driven by strong SaaS performance, while disciplined expense management led to a significantly narrowed operating loss Revenue by Type (in thousands) | Revenue Type | FY 2023 | FY 2022 | Change | % Change | |---------------------------|-----------|-----------|-----------|-----------| | SaaS | $160,961 | $117,180 | $43,781 | 37.4% | | Term license and support | $52,744 | $57,214 | ($4,470) | (7.8)% | | Services | $44,795 | $41,283 | $3,512 | 8.5% | | Maintenance | $13,325 | $16,662 | ($3,337) | (20.0)% | | **Total revenue** | **$271,825** | **$232,339** | **$39,486** | **17.0%** | Revenue by Geographic Area (in thousands) | Geography | FY 2023 | FY 2022 | Change | % Change | |---------------|-----------|-----------|-----------|-----------| | North America | $118,490 | $102,025 | $16,465 | 16.1% | | EMEA | $81,753 | $71,635 | $10,118 | 14.1% | | APAC | $71,582 | $58,679 | $12,903 | 22.0% | | **Total** | **$271,825** | **$232,339** | **$39,486** | **17.0%** | - **Non-GAAP operating income for FY 2023 was $22.2 million (8.1% margin)**, a significant improvement from a non-GAAP operating loss of $2.9 million (-1.2% margin) in FY 2022, driven by enhanced expense management[248](index=248&type=chunk)[249](index=249&type=chunk) [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with significant cash reserves, no debt, and a new $30 million revolving credit facility - As of December 31, 2023, the company had **$223.2 million in cash and cash equivalents and no outstanding debt**[251](index=251&type=chunk) - In November 2023, the company entered into a new Loan Agreement with HSBC for a **$30.0 million revolving line of credit** with an additional $20.0 million accordion feature[252](index=252&type=chunk)[253](index=253&type=chunk) Summary of Cash Flows (in thousands) | Cash Flow Activity | FY 2023 | FY 2022 | |-------------------------|------------|------------| | Operating Activities | $34,694 | ($774) | | Investing Activities | ($5,648) | ($21,452) | | Financing Activities | ($33,667) | ($17,148) | - **Net cash from operating activities was $34.7 million**, primarily reflecting a lower net loss and positive changes in working capital, such as a $26.9 million increase in deferred revenue[257](index=257&type=chunk) - **Net cash used in financing activities was $33.7 million**, mainly due to $39.0 million in common stock repurchases[259](index=259&type=chunk) [Critical Accounting Estimates](index=54&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates involve significant judgment in revenue recognition for bundled offerings and the fair value calculation of Company Earn-Out Shares - **Revenue Recognition**: Judgment is used to determine the standalone selling price (SSP) to allocate transaction prices, particularly for bundled term licenses where observable prices are not available[269](index=269&type=chunk)[270](index=270&type=chunk) - **Company Earn-Out Shares**: These are treated as derivatives and marked to market each period, with fair value determined using a Monte Carlo simulation that relies on subjective assumptions[271](index=271&type=chunk)[272](index=272&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=57&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risks are foreign currency exchange risk from international operations and immaterial interest rate risk - **Interest Rate Risk**: The company believes it has **no material exposure** to changes in interest rates due to the short-term nature of its cash and investment portfolio[281](index=281&type=chunk) - **Foreign Currency Exchange Risk**: A hypothetical **10% uniform weakening of foreign currencies** against the U.S. Dollar would have decreased the reported value of cash, cash equivalents, and marketable securities by approximately **$3.4 million** as of December 31, 2023[283](index=283&type=chunk) - **Concentration of Credit Risk**: **No single customer accounted for more than 10%** of billings or accounts receivable for the years ended December 31, 2023 and 2022[284](index=284&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=58&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the audited consolidated financial statements, which received an unqualified opinion, and an adverse opinion on internal controls [Report of Independent Registered Public Accounting Firm](index=59&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The auditor issued an unqualified opinion on the financial statements but an adverse opinion on internal controls due to a material weakness - The auditor issued an **unqualified opinion** on the consolidated financial statements[288](index=288&type=chunk) - An **adverse opinion was issued on the company's internal control over financial reporting** as of December 31, 2023[289](index=289&type=chunk) - The critical audit matter identified was **'Revenue Recognition – Determination of Standalone Selling Prices (SSP)'** due to the high degree of management judgment required[292](index=292&type=chunk)[294](index=294&type=chunk) [Consolidated Financial Statements](index=61&type=section&id=Consolidated%20Financial%20Statements) The financial statements show total assets of $442.6 million, a net loss of $21.5 million, and positive operating cash flow of $34.7 million for 2023 Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | |-------------------------------|--------------|--------------| | Cash and cash equivalents | $223,162 | $227,188 | | Total Assets | $442,582 | $415,533 | | Total Liabilities | $217,738 | $172,379 | | Total Stockholders' Equity | $218,806 | $229,147 | Consolidated Statement of Operations Highlights (in thousands) | Account | FY 2023 | FY 2022 | |-------------------------------|--------------|--------------| | Total Revenue | $271,825 | $232,339 | | Gross Profit | $194,365 | $166,063 | | Loss from Operations | ($15,351) | ($41,066) | | Net Loss | ($21,501) | ($38,688) | | Basic & Diluted Loss Per Share| ($0.12) | ($0.23) | [Notes to Consolidated Financial Statements](index=68&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail key accounting policies for revenue recognition, business combinations, earn-out liabilities, stock compensation, and income taxes - **Revenue Recognition (Note 2 & 3)**: The company uses judgment to determine the standalone selling price (SSP) for allocating revenue in contracts with multiple performance obligations[351](index=351&type=chunk)[355](index=355&type=chunk) - **Business Combinations (Note 3)**: The 2021 Apex Business Combination was treated as a reverse recapitalization, and several acquisitions in 2022 added to goodwill and intangible assets[383](index=383&type=chunk)[389](index=389&type=chunk)[397](index=397&type=chunk)[398](index=398&type=chunk) - **Company Earn-Out and Warrant Liabilities (Note 13)**: Company Earn-Out Shares are classified as a liability and measured at fair value, resulting in an **$11.1 million loss from remeasurement in 2023**[460](index=460&type=chunk)[462](index=462&type=chunk)[464](index=464&type=chunk) - **Stock-Based Compensation (Note 15)**: As of Dec 31, 2023, there was **$15.7 million in unrecognized compensation cost for stock options and $52.4 million for RSUs**[495](index=495&type=chunk)[501](index=501&type=chunk) - **Income Taxes (Note 10)**: A **valuation allowance of $22.5 million** was recorded against deferred tax assets as of Dec 31, 2023[435](index=435&type=chunk) [Item 9A. Controls and Procedures](index=108&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls were not effective due to a material weakness in internal control over financial reporting - Management concluded that **disclosure controls and procedures were not effective** as of December 31, 2023, due to a material weakness[536](index=536&type=chunk) - The identified material weakness is that the company **did not design and implement control activities** to address the accuracy and completeness of certain information relevant for financial reporting[542](index=542&type=chunk) - The company's independent registered public accounting firm, Deloitte & Touche LLP, issued an **adverse opinion on the effectiveness of the Company's internal control** over financial reporting[543](index=543&type=chunk)[548](index=548&type=chunk) - A **2024 Remediation Plan** is in place to enhance the design of controls, establish additional training, and improve documentation to address the material weakness[545](index=545&type=chunk) [Item 9B. Other Information](index=113&type=section&id=Item%209B.%20Other%20Information) The company disclosed a CFO trading plan and a $50 million investment commitment to a growth equity fund - On December 8, 2023, **CFO James Caci entered into a Rule 10b5-1 trading plan** to sell up to 110,215 shares of common stock between March 2024 and December 2025[557](index=557&type=chunk) - On February 28, 2024, the company **committed $50 million to the A3 Ventures Fund 1, L.P.**, a growth equity fund managed by Lumens Capital Partners, Ltd. (LCP), to invest in enterprise software companies[558](index=558&type=chunk)[560](index=560&type=chunk) Part III [Items 10-14](index=114&type=section&id=Items%2010-14) Information for these items, covering governance and compensation, is incorporated by reference from the forthcoming 2024 Proxy Statement - Information for Item 10 (Directors, Executive Officers and Corporate Governance), Item 11 (Executive Compensation), Item 12 (Security Ownership), Item 13 (Certain Relationships and Related Transactions), and Item 14 (Principal Accounting Fees and Services) is **incorporated by reference from the company's forthcoming 2024 Proxy Statement**[563](index=563&type=chunk)[564](index=564&type=chunk)[565](index=565&type=chunk) Part IV [Item 15. Exhibits and Financial Statement Schedules](index=115&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all exhibits filed with the report and notes that financial statement schedules have been omitted - The consolidated financial statements are located in Part II, Item 8, and **financial statement schedules are omitted**[566](index=566&type=chunk) - An extensive list of exhibits is filed with or incorporated by reference into the report, including agreements related to the **2021 business combination, equity plans, and the new credit facility**[567](index=567&type=chunk)[568](index=568&type=chunk)[570](index=570&type=chunk) [Item 16. Form 10-K Summary](index=119&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the company - **No Form 10-K summary is provided**[582](index=582&type=chunk)

Revenue Growth - Full year SaaS revenue reached $161.0 million, representing a 37% year-over-year growth[1] - Total revenue for the full year was $271.8 million, reflecting a 17% year-over-year increase[4] - Total ARR as of December 31, 2023, was $264.5 million, up 23% year-over-year, with a 24% growth adjusted for FX[5] - Fourth quarter total revenue was $74.6 million, up 17% from Q4 2022, with SaaS revenue at $45.3 million, a 37% increase[3] - For Q1 2024, the company expects total revenues of $71.4 million to $73.4 million, indicating a year-over-year growth of 22% at the midpoint[7] - For the full year 2024, total ARR is projected to be between $314.7 million and $320.7 million, representing a 20% year-over-year growth at the midpoint[7] Profitability and Margins - Non-GAAP gross margin for the full year was 73.0%, slightly up from 72.9% in 2022[4] - Non-GAAP operating margin was reported at -1.2% for the year ended December 31, 2023[20] - Non-GAAP gross margin stood at 72.9% for the year ended December 31, 2023[21] - Non-GAAP sales and marketing expenses totaled $102,095 thousand for the year ended December 31, 2023, compared to $98,907 thousand in 2022[22] Cash Flow and Investments - The company generated $34.7 million in cash from operations for the full year, compared to $(0.8) million in the prior year[4] - Net cash used in investing activities was $5,648 thousand, down from $21,452 thousand year-over-year[20] - Cash and cash equivalents at the end of the period were $223,162 thousand, a decrease from $227,188 thousand[20] Liabilities and Equity - Total current liabilities increased to $176,665 thousand from $142,708 thousand, representing a 24% increase year-over-year[17] - Total liabilities rose to $217,738 thousand compared to $172,379 thousand, marking a 26% increase[17] - Stockholders' equity decreased to $218,806 thousand from $229,147 thousand, reflecting a decline of approximately 4.5%[17] - The accumulated deficit increased to $460,496 thousand from $416,927 thousand, indicating a rise of approximately 10.4%[17] Losses and Financial Performance - The company reported a net loss of $21,501 thousand for the year ended December 31, 2023, compared to a net loss of $38,688 thousand in 2022[19] Product Development and Innovation - AvePoint launched AvePoint Opus, an AI-powered information lifecycle management solution, to enhance data management and compliance[6] - The company signed an agreement to invest in A3Ventures, a growth equity fund targeting B2B software companies, to accelerate innovation in areas complementing its technology portfolio[6]

Core Insights - AvePoint has announced the addition of three new products to its FedRAMP (moderate) authorization, enhancing its SaaS offerings for federal agencies [1][2] - The company has also achieved compliance with HITRUST CSF v11.0.1 for its AvePoint Confidence Platform, reinforcing its commitment to security in regulated industries [1][4] FedRAMP Authorization - The newly added products include AvePoint tyGraph for workforce analytics, MaivenPoint Examena for secure AI-enabled examinations, and MaivenPoint Curricula for modern learning experiences [2] - Since receiving its initial FedRAMP sponsorship in 2021, AvePoint has expanded its authorized product offerings to over 20 [2] HITRUST CSF Compliance - The HITRUST CSF v11.0.1 certification integrates various security standards, validating AvePoint's commitment to safeguarding patient health information [4] - This certification adds to AvePoint's existing SOC 2 Type II certifications, enhancing trust among healthcare organizations [4] Commitment to Security - AvePoint emphasizes the importance of empowering public sector and regulated industries to safely adopt new technologies, including AI and cloud collaboration [3] - The company maintains a comprehensive cyber resilience strategy, supported by various accreditations such as ISO 27001 and CSA STAR [4]

Financial Data and Key Metrics - Total revenue for Q3 2023 was $72.8 million, up 16% YoY, exceeding the high end of guidance [18] - SaaS revenue grew 40% YoY to $41.9 million, representing 58% of total revenue, up from 48% a year ago [18] - Total ARR reached $250.6 million, a 23% YoY growth (25% adjusted for FX) [19] - Net new ARR in Q3 was $14.4 million, a 14% YoY growth after adjusting for prior year acquisition impact [20] - Gross margin was 73.7%, slightly down from 74% in Q3 2022 but improved from 71.1% in Q2 2023 [22] - Non-GAAP operating income was $9.3 million, with an operating margin of 12.8%, well above guidance [23] - Cash and short-term investments stood at $209.3 million at the end of Q3 [24] Business Line Performance - SaaS revenue growth was strong across all regions: North America (28% YoY), EMEA (51% YoY), and APAC (50% YoY) [18][19] - The company ended Q3 with 518 customers generating over $100,000 in ARR, a 16% increase YoY [20] - 50% of total ARR came through the channel, up from 47% a year ago, with 72% of incremental ARR in Q3 coming from the channel [20] Market Performance - North America revenue grew 8% YoY, driven by 28% SaaS growth, despite a 10% decline in term license revenue [18][31] - EMEA revenue grew 14% YoY, with SaaS contributing 72% of total revenue [19] - APAC revenue grew 35% YoY, with SaaS representing 43% of total revenue [19] Strategy and Industry Competition - The company is focusing on AI-driven solutions, particularly with the launch of AvePoint Opus, which integrates AI for information lifecycle management [11][16] - AvePoint is positioning itself as a key enabler of generative AI adoption by addressing data quality and governance challenges [8][9] - The company is leveraging its channel strategy to drive profitable growth, with increasing contributions from partners [20][21] Management Commentary on Operating Environment and Future Outlook - Management highlighted the accelerating digital revolution and the transformative potential of AI in business processes [7][16] - The company is optimistic about future opportunities, particularly in AI-powered solutions, but remains cautious about the macro environment [34][40] - Full-year guidance was raised, with expected total ARR of $261-263 million (22% YoY growth) and total revenue of $267.7-269.7 million (16% YoY growth) [25][26] Other Important Information - The company repurchased 6.6 million shares in 2023 for a total cost of $37.7 million [24] - Trailing 12-month gross retention rate was 87%, with a net retention rate of 108% in Q3 [21][22] Q&A Session Summary Question: Monetization strategy for AvePoint Opus - AvePoint Opus is both an incremental revenue driver and a strategic tool for customer retention and expansion, particularly in the context of AI readiness [27][28][29] Question: Geographic performance disparity - North America's slower revenue growth is attributed to a mix shift, with strong SaaS growth offset by declining term license revenue [30][31] Question: Impact of GenAI on demand - GenAI is still in early stages, but the company expects it to play a larger role in future quarters, especially with the rollout of Microsoft 365 Copilot [33][34] Question: Drivers of operating leverage - Operating leverage is driven by channel strategy, sales and marketing efficiency, and G&A expense optimization [35][36] Question: Demand environment and customer segments - The macro environment remains challenging, but demand has stabilized across enterprise, mid-market, and SMB segments [38][39][40] Question: Net revenue retention improvement - Improvement in net revenue retention is driven by customer expansions and cost optimization initiatives [41][42] Question: FX impact on ARR guidance - FX adjustments are expected to add 1-2% to ARR growth for the full year [43][44] Question: Cloud optimization and AI positioning - The company is well-positioned to address cloud optimization and AI readiness, with increasing engagement from CISOs and CIOs [45][46][47] Question: Q4 ARR and revenue guidance - Q4 ARR and revenue guidance reflect macro uncertainties and a pull-forward of term license revenue in Q3 [48][49][52][53] Question: Gross revenue retention - Gross retention is improving, with enterprise customers showing higher retention rates, but the company aims to reach 90%+ through various initiatives [54][55][56][57] Closing Remarks - Management expressed confidence in the company's ability to capitalize on AI opportunities and drive profitable growth [59]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to ___________. Commission file number: 001-39048 AvePoint, Inc. (Exact name of registrant as specified in its charter) Delaware 83-446170 ...

Investor Presentation November 2023 Collaborate with Confidence Accessible content is available upon request. R ...

AvePoint, Inc. (NASDAQ:AVPT) Q2 2023 Earnings Conference Call August 9, 2023 4:30 PM ET Company Participants James Arestia - VP, IR Tianyi Jiang - Co-Founder, CEO & Director James Caci - CFO Conference Call Participants Chirag Ved - Evercore ISI Nehal Chokshi - Northland Capital Markets Jason Ader - William Blair & Company Brett Knoblauch - Cantor Fitzgerald & Co. Operator Good afternoon, welcome to the AvePoint Second Quarter 2023 Earnings Conference Call. [Operator Instructions]. Now I'd like to turn the ...

Investor Presentation August 2023 Collaborate with Confidence Accessible content is available upon request. REMIALCSID ...