Core Insights - Five stocks have been added to the Zacks Rank 1 (Strong Buy) List, indicating strong potential for investment Group 1: Company Performance - Roku (ROKU) is the leading TV streaming platform provider in the U.S., Canada, and Mexico, with a Zacks Consensus Estimate for current year earnings increasing by 83.3% over the last 60 days [1] - AvePoint (AVPT), a data management solutions provider, has seen its Zacks Consensus Estimate for current year earnings increase by 18.5% over the last 60 days [1] - eToro Group Ltd. (ETOR), engaged in trading and investing, has experienced an 8% increase in its Zacks Consensus Estimate for current year earnings over the last 60 days [2] - Northrim BanCorp (NRIM), a full-service commercial bank, has seen a 6.4% increase in its Zacks Consensus Estimate for current year earnings over the last 60 days [2] - OptimizeRx (OPRX), which provides platforms to help patients afford and comply with healthcare products, has seen a 6% increase in its Zacks Consensus Estimate for current year earnings over the last 60 days [3]

Core Insights - AvePoint, Inc. reported a revenue of $109.73 million for the quarter ended September 2025, reflecting a year-over-year increase of 23.6% [1] - The earnings per share (EPS) for the quarter was $0.10, up from $0.06 in the same quarter last year, indicating a significant improvement [1] - The reported revenue exceeded the Zacks Consensus Estimate of $105.88 million by 3.64%, while the EPS surpassed the consensus estimate of $0.07 by 42.86% [1] Financial Metrics - Annual recurring revenue (ARR) reached $390 million, slightly above the two-analyst average estimate of $389.75 million [4] - Revenue from services was reported at $13.77 million, exceeding the average estimate of $11.66 million based on two analysts [4] - Revenue from maintenance was $0.84 million, which fell short of the average estimate of $1.35 million based on two analysts [4] Stock Performance - AvePoint's shares have declined by 6.4% over the past month, contrasting with the Zacks S&P 500 composite's increase of 1.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - AvePoint, Inc. reported quarterly earnings of $0.1 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, and showing an increase from $0.06 per share a year ago, resulting in an earnings surprise of +42.86% [1] - The company achieved revenues of $109.73 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.64% and increasing from $88.8 million year-over-year [2] - AvePoint shares have underperformed the market, losing about 13.5% since the beginning of the year compared to the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.07 on revenues of $108.01 million, and for the current fiscal year, it is $0.27 on revenues of $409 million [7] - The estimate revisions trend for AvePoint was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which AvePoint belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

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Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $109.7 million, up 24% year-over-year and 3% above the high end of guidance [18] - Non-GAAP operating income was $24.1 million, or an operating margin of 22%, the highest yet as a public company, compared to $17.8 million and 20.1% in the prior year [25] - Gross profit for Q3 was $82.5 million, representing a gross margin of 75.1%, down from 77% in Q3 2024 [25] Business Line Data and Key Metrics Changes - SaaS revenue for Q3 was $84 million, growing 38% year-over-year and representing 77% of total revenues, the highest quarterly mix to date [18] - Services revenues were $13.8 million, representing 13% of total revenues and growing 27% year-over-year [18] - Term license and support revenue declined 21% year-over-year, representing 10% of revenues [19] Market Data and Key Metrics Changes - In North America, SaaS revenues grew 36% year-over-year, while total revenues grew 14% [21] - EMEA SaaS revenues grew 42% year-over-year, representing 89% of total EMEA revenues, which grew 35% [21] - APAC SaaS revenues grew 34% year-over-year, representing 53% of total APAC revenues, which grew 25% [21] Company Strategy and Development Direction - The company is focusing on governing agentic AI as a first-class discipline, integrating it with traditional data protection and cloud governance tools [7][10] - Future governance will evolve from visibility to autonomous governance, and from enterprise governance to ecosystem governance [15][16] - The company aims to reach $1 billion in ARR by 2029, with a target of 30% contribution from non-Microsoft revenue sources [39] Management's Comments on Operating Environment and Future Outlook - Management noted that AI governance is critical as organizations face risks related to data exposure and compliance [5][6] - The ongoing government shutdown may impact deal timing, but the company remains optimistic about overall demand [20][29] - The company raised its revenue and non-GAAP operating income guidance for the full year, reflecting healthy demand [27][30] Other Important Information - The company ended Q3 with $472 million in cash and short-term investments, and repurchased 528,000 shares for approximately $8.4 million [26] - The dollar-based trailing 12-month gross retention rate was 88%, with a net retention rate of 110% [24] Q&A Session Summary Question: What are the killer AI governance use cases driving urgency for buyers today? - The urgency is about AI readiness for deployment with specific use cases, focusing on data accuracy and risk control [32][33] Question: Can you quantify the impact from federal downsell on ARR? - The federal sector's uncertainty impacted gross retention rates, contributing to a one percentage point decline [34][36] Question: How big is the non-Microsoft-related business today? - Over 90% of revenue comes from the Microsoft tech stack, with less than 10% from multi-cloud sources [38] Question: What is the outlook for sales capacity and growth sustainability? - The company plans to expand teams and invest in both direct and channel go-to-market strategies to sustain growth [40][42] Question: What trends are seen in customer contract duration? - There has been a slight improvement in average contract length this year, reversing a previous decline [43][44] Question: How is the company incorporating AI into its platform? - The company is leveraging AI to enhance product offerings and improve internal efficiencies, including automated risk identification [54][56]

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Financial Performance - Total revenue for the three months ended September 30, 2025, was $109.728 million, a 23.5% increase from $88.804 million in the same period of 2024[21] - SaaS revenue reached $83.982 million for the three months ended September 30, 2025, up 37.9% from $60.866 million in the prior year[21] - Net income for the three months ended September 30, 2025, was $13.017 million, compared to $2.928 million in the same period of 2024, representing a significant increase[21] - Gross profit for the nine months ended September 30, 2025, was $226.287 million, up from $180.694 million in the same period of 2024, reflecting a growth of 25.3%[21] - Total revenue for the nine months ended September 30, 2025, reached $304,810,000, up 26.4% from $241,299,000 in the same period of 2024[143] - For the nine months ended September 30, 2025, AvePoint reported a net income of $19.5 million, compared to a net loss of $11.96 million for the same period in 2024[29] Assets and Equity - Total assets as of September 30, 2025, were $743.515 million, an increase from $519.055 million as of December 31, 2024[18] - Total stockholders' equity increased to $466.809 million as of September 30, 2025, from $270.948 million as of December 31, 2024[18] - AvePoint's total stockholders' equity increased to $466,809,000 from $443,135,000 as of June 30, 2025, reflecting a growth of approximately 5.0%[24] - AvePoint's total paid-in capital rose to $970,918,000 as of September 30, 2025, up from $953,446,000 at the end of June 2025, indicating a growth of about 1.5%[24] Cash and Cash Equivalents - Cash and cash equivalents increased to $471.640 million as of September 30, 2025, compared to $290.735 million at the end of 2024, marking a growth of 62.2%[18] - AvePoint's cash and cash equivalents at the end of the period were $471.6 million, a significant increase from $249.8 million at the end of the previous year[29] Operating Expenses - Operating expenses for the three months ended September 30, 2025, totaled $73.454 million, up from $59.931 million in the same period of 2024, indicating a rise of 22.6%[21] - Stock-based compensation expense for the three months ended September 30, 2025, was $10,678,000, compared to $9,811,000 for the same period in 2024, reflecting an increase of approximately 8.8%[24] - Stock-based compensation expenses rose to $31.4 million for the nine months ended September 30, 2025, compared to $29.8 million in the same period of 2024[29] Revenue Recognition and Deferred Revenue - The company’s deferred revenue increased to $174.202 million as of September 30, 2025, compared to $153.308 million at the end of 2024, reflecting a growth of 13.6%[18] - Deferred revenue increased to $174.2 million as of September 30, 2025, up from $153.3 million at the end of 2024, indicating strong future revenue potential[49] - The transaction price allocated to remaining performance obligations was $475.2 million, with $399.6 million related to SaaS and term license and support revenue, expecting to recognize approximately 57% over the next twelve months[54] Shareholder Activities - The company repurchased and retired common stock amounting to $8,356,000 during the three months ended September 30, 2025[24] - The Company authorized a new share repurchase program allowing for the buyback of up to $150 million of common stock, with 1,743,455 shares repurchased at an average price of $15.66 per share during the nine months ended September 30, 2025[109] - A total of 14,625,054 public warrants were exercised during the nine months ended September 30, 2025, generating cash proceeds of $168.2 million[114] Acquisitions - The acquisition of Ydentic on January 29, 2025, was valued at approximately $20.4 million, consisting of $14.9 million in cash and a $5.5 million unconditional purchase obligation[62] - The preliminary fair value of intangible assets acquired in the Ydentic acquisition was $3.9 million, with technology and software valued at $3.6 million[69] - The Company established a deferred tax liability with an offset to goodwill in connection with the Ydentic acquisition due to book-to-tax differences[64] Other Financial Metrics - The company reported a foreign currency remeasurement loss of $4.3 million for the nine months ended September 30, 2025, compared to a loss of $1.2 million in the prior year[29] - The effective tax rate for the three months ended September 30, 2025, was (1.6)%, compared to 5.9% for the same period in 2024[80] - The Company recorded interest income of $0.9 million and $0.1 million for the three and nine months ended September 30, 2025, respectively, related to the mandatorily redeemable noncontrolling interest[72]

Business Overview - AvePoint is a one-stop solution for data management, focusing on human-generated data and offering a platform approach in the age of AI[17, 19] - The company operates in an enormous addressable market, estimated at $81.3 billion in 2024 and projected to reach $140 billion by 2028, representing a compound annual growth rate (CAGR) of 14.6%[21] - AvePoint serves a diverse customer base spanning every industry and around the world, with North America contributing 44% of total Annual Recurring Revenue (ARR), EMEA 35%, and APAC 21% as of December 31, 2024[32, 33] Financial Performance - The company has demonstrated rapid topline growth, with total ARR increasing from $214.7 million in 2022 to $327.0 million in 2024, representing a 23% CAGR[35] - AvePoint has improved operating efficiency, with non-GAAP operating margin increasing from (1.2%) in 2022 to 14.4% in 2024, a 1,560 basis points improvement[37] - Total ARR grew 26% year-over-year to $390.0 million in Q3 2025, with net new ARR at a record $22.4 million, growing 19% year-over-year[81] - The company's Q4 2025 financial guidance projects total revenue between $110.0 million and $112.0 million, representing a year-over-year growth of 23% to 26%[106] Strategic Priorities - AvePoint aims to reach $1 billion of ARR by 2029 through solutions, segments, geographies, cross-selling, and partners[75, 77] - The company's strategic priorities include accelerating customer adoption and retention, expanding platform offerings, scaling the channel ecosystem, broadening global presence, and pursuing strategic acquisitions and investments[74] - The company has a track record of successful M&A, including the acquisition of Torsion, Essential, I-Access Solutions, Combined Knowledge, tyGraph and Ydentic[105]

Revenue Performance - Third quarter SaaS revenue reached $84.0 million, reflecting a 38% year-over-year growth, and 35% on a constant currency basis[1] - Total revenue for the third quarter was $109.7 million, representing a 24% year-over-year growth, and 21% on a constant currency basis[1] - Total Annual Recurring Revenue (ARR) as of September 30, 2025, was $390.0 million, indicating a 26% year-over-year growth[1] - Total revenue for the three months ended September 30, 2025, was $109.728 million, a 23.5% increase from $88.804 million in the same period of 2024[17] - SaaS revenue reached $83.982 million, up 37.9% from $60.866 million year-over-year[17] Profitability Metrics - GAAP gross profit for the third quarter was $81.6 million, with a gross margin of 74.4%, compared to 76.1% in the same quarter of 2024[5] - Non-GAAP operating income for the third quarter was $24.1 million, up from $17.8 million in the third quarter of 2024, with a non-GAAP operating margin of 22.0%[5] - The company reported a gross profit of $81.583 million for the three months ended September 30, 2025, compared to $67.583 million in the same period of 2024, representing a 20.7% increase[17] - GAAP operating income for Q3 2025 was $8,129 million, up from $7,652 million in Q3 2024, representing a growth of 6.2%[22] - Non-GAAP operating income for the nine months ended September 30, 2025, reached $56,298 million, compared to $33,184 million for the same period in 2024, an increase of 69.5%[22] - GAAP gross profit for Q3 2025 was $81,583 million, compared to $67,583 million in Q3 2024, reflecting a year-over-year increase of 20.7%[22] - Non-GAAP gross profit for the nine months ended September 30, 2025, was $228,529 million, up from $182,932 million in 2024, indicating a growth of 24.9%[22] Expenses Overview - Operating expenses increased to $73.454 million for the three months ended September 30, 2025, from $59.931 million in the same period of 2024, reflecting a 22.5% rise[17] - The company reported a significant increase in sales and marketing expenses, which rose to $35.593 million for the three months ended September 30, 2025, compared to $30.050 million in the same period of 2024[17] - GAAP sales and marketing expenses for Q3 2025 were $35,593 million, an increase from $30,050 million in Q3 2024, representing a rise of 18.4%[22] - GAAP general and administrative expenses for Q3 2025 were $23,925 million, compared to $17,043 million in Q3 2024, showing a growth of 40.4%[22] - Non-GAAP research and development expenses for Q3 2025 were $11,861 million, up from $10,668 million in Q3 2024, reflecting an increase of 11.1%[22] Retention Rates - The dollar-based gross retention rate was 88%, while the dollar-based net retention rate was 110%[5] Strategic Initiatives - The company announced new data protection solutions for platforms including Monday.com, Docusign, and Google Virtual Machines[5] - AvePoint launched an enhanced points-based Global Partner Program aimed at accelerating growth through partner engagement[5] - The company raised its full-year guidance for revenue and non-GAAP operating income based on third quarter outperformance[5] - AvePoint is now dual-listed on Nasdaq and the Singapore Exchange, becoming the first B2B SaaS stock on the SGX-ST[5] Cash and Assets - Cash and cash equivalents at the end of the period were $471.640 million, up from $290.735 million at the end of December 31, 2024[19] - Total assets increased to $743.515 million as of September 30, 2025, from $519.055 million as of December 31, 2024[19] Share Metrics - The weighted average shares outstanding for diluted earnings per share was 232,897 thousand for the three months ended September 30, 2025, compared to 203,859 thousand in the same period of 2024[17] Cash Flow - Net cash provided by operating activities was $55.598 million for the nine months ended September 30, 2025, slightly down from $56.134 million in the same period of 2024[20] Operating Margins - Non-GAAP operating margin improved to 22.0% in Q3 2025 from 20.1% in Q3 2024[22] - Non-GAAP sales and marketing expenses as a percentage of revenue decreased to 29.9% in Q3 2025 from 31.2% in Q3 2024[22] - Non-GAAP general and administrative expenses as a percentage of revenue decreased to 12.4% in Q3 2025 from 13.6% in Q3 2024[22]

Core Insights - AvePoint reported third quarter SaaS revenue of $84.0 million, reflecting a 38% year-over-year growth, and total revenue of $109.7 million, representing a 24% year-over-year growth [1][5] - The company achieved a total Annual Recurring Revenue (ARR) of $390.0 million, indicating a 26% year-over-year growth [1][5] - AvePoint's CEO highlighted the company's record quarterly net new ARR and non-GAAP operating profitability, emphasizing the demand for AI-related data security solutions [2] Financial Performance - Third quarter SaaS revenue was $84.0 million, up 38% from the same quarter in 2024, while total revenue reached $109.7 million, a 24% increase year-over-year [1][5] - GAAP gross profit for the third quarter was $81.6 million, with a gross margin of 74.4%, compared to 76.1% in the third quarter of 2024 [5] - Non-GAAP operating income was $24.1 million, up from $17.8 million in the same quarter of the previous year, with a non-GAAP operating margin of 22.0% [5][25] Key Performance Indicators - The dollar-based gross retention rate was 88%, and the dollar-based net retention rate was 110%, both indicating strong customer retention and expansion [5] - AvePoint announced new data protection solutions for various platforms, enhancing its product offerings [5] - The company launched an enhanced Global Partner Program aimed at accelerating growth through partner engagement [5] Financial Outlook - For the fourth quarter of 2025, AvePoint expects total revenue between $110.0 million and $112.0 million, representing year-over-year growth of 23% to 26% [5] - The company raised its full-year guidance for revenue and non-GAAP operating income based on third quarter performance [5][11] - The expected total ARR for the full year 2025 is projected to be between $412.8 million and $418.8 million, indicating a year-over-year growth of 26% to 28% [11]