Financial Performance & Growth - AvePoint's total Annual Recurring Revenue (ARR) reached $327 million in 2024, demonstrating a 23% Compound Annual Growth Rate (CAGR) from 2022 [35] - The company's Non-GAAP operating margin improved significantly to 144% in 2024, a 1560 basis points increase since 2022 [37] - As of Q2 2025, total ARR grew 27% year-over-year to $3676 million [82] - The company is aiming for $1 billion of ARR by 2029 [76, 78] Customer Base & Market - AvePoint has rapidly built a diverse customer base, reaching 25,178 total customers in 2024, reflecting a 21% CAGR from 2022 [27] - North America contributes 44% of the total ARR, with a 22% ARR CAGR [32] - The company operates in a large and growing addressable market, estimated at $813 billion in 2024 and projected to reach $140 billion by 2028, representing a 146% CAGR [21] Product & Strategy - AvePoint is positioned as a leading one-stop solution for data management, focusing on data security, governance, and protection [18, 19] - The company employs a platform-first strategy to maximize the interoperability of every solution [43] - The company's recurring revenue mix continues to grow, with SaaS revenue representing 73% of total revenue as of Q2 2025 [91]

[Press Release Summary](index=1&type=section&id=1.%20Press%20Release%20Summary) AvePoint reported strong Q2 2025 financial results, achieving record quarterly revenue and highlighting strategic innovation for the AI era [Headline Financial Achievements](index=1&type=section&id=1.1%20Headline%20Financial%20Achievements) AvePoint announced strong second quarter 2025 financial results, achieving record quarterly revenue over $100 million for the first time, driven by significant year-over-year growth in SaaS revenue and total revenue | Metric | Q2 2025 Value | YoY Growth | Constant Currency YoY Growth | | :----- | :------------ | :--------- | :--------------------------- | | Total Revenue | $102.0 million | 31% | 27% | | SaaS Revenue | $77.3 million | 44% | 40% | | Total ARR | $367.6 million | 27% | 27% | [CEO Commentary](index=1&type=section&id=1.2%20CEO%20Commentary) Dr. Tianyi Jiang, CEO and Co-Founder, highlighted the company's exceptional performance, validating its innovation and strategy, and emphasized its role in delivering integrated data security, governance, and resilience solutions for the AI era, with a long-term goal of $1 billion in ARR by 2029 - AvePoint's exceptional second quarter results are further evidence of our ability to efficiently deliver the integrated data security, governance and resilience solutions that organizations need to thrive in the AI era[2](index=2&type=chunk) - Crossing the **$100 million revenue milestone** this quarter is a powerful validation of our innovation, strategy, and the trust our customers and partners place in us[2](index=2&type=chunk) - With strong momentum and multiple growth vectors to **$1 billion in ARR by 2029**, we continue to lead in this evolving landscape and remain focused on turning today's complexity into tomorrow's opportunity[2](index=2&type=chunk) [Second Quarter 2025 Performance and Business Highlights](index=1&type=section&id=2.%20Second%20Quarter%202025%20Performance%20and%20Business%20Highlights) This section details AvePoint's robust financial growth and strategic product enhancements in Q2 2025, emphasizing its leadership in data security for the AI era [Key Financial Performance Indicators](index=1&type=section&id=2.1%20Key%20Financial%20Performance%20Indicators) AvePoint demonstrated significant financial improvement in Q2 2025, with robust revenue growth, a shift from GAAP operating loss to income, and healthy retention rates, supported by a strong cash position | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Total Revenue | $102.0M | $77.96M | +31% | | SaaS Revenue | $77.3M | $53.64M | +44% | | GAAP Gross Profit | $75.5M | $59.0M | +28% | | GAAP Gross Margin | 74.0% | 75.7% | -1.7 pp | | Non-GAAP Gross Profit | $76.3M | $59.4M | +28.4% | | Non-GAAP Gross Margin | 74.8% | 76.2% | -1.4 pp | | GAAP Operating Income/(Loss) | $7.1M | $(2.1)M | Swing to profit | | GAAP Operating Margin | 7.0% | (2.7)% | +9.7 pp | | Non-GAAP Operating Income | $18.8M | $8.7M | +116% | | Non-GAAP Operating Margin | 18.4% | 11.2% | +7.2 pp | | Cash, cash equivalents & short-term investments (as of June 30, 2025) | $430.1M | N/A | N/A | | Cash from operations (six months ended June 30, 2025) | $20.8M | $23.9M | -13% | | ARR (as of June 30, 2025) | $367.6M | N/A | +27% | | Dollar-based Gross Retention Rate (adjusted for FX) | 89% | N/A | N/A | | Dollar-based Net Retention Rate (adjusted for FX) | 112% | N/A | N/A | [Recent Business and Product Highlights](index=1&type=section&id=2.2%20Recent%20Business%20and%20Product%20Highlights) AvePoint enhanced its Confidence and Elements Platforms with new AI security features and command centers to deliver unified data governance and scalable Copilot agent protection, and was recognized for its exceptional workplace culture - Expanded the AvePoint Confidence Platform with new Risk Posture, Optimization & ROI, and Resilience command centers, along with advanced Agentic AI security features, to deliver unified data governance, actionable insights, and scalable Copilot agent protection across distributed AI environments[5](index=5&type=chunk) - Introduced advanced user lifecycle and device management, marketplace integration, and risk user insights to the AvePoint Elements Platform, empowering Managed Service Providers to streamline operations, enhance security, and drive profitability at scale[5](index=5&type=chunk) - Named to Inc.'s Best Workplaces list for the second consecutive year, honoring organizations creating exceptional workplaces and company cultures[6](index=6&type=chunk) [Financial Outlook](index=2&type=section&id=3.%20Financial%20Outlook) AvePoint provides optimistic financial guidance for Q3 and full-year 2025, reflecting strong performance and anticipated continued growth in revenue and operating income [Third Quarter 2025 Guidance](index=2&type=section&id=3.1%20Third%20Quarter%202025%20Guidance) AvePoint provided an optimistic outlook for Q3 2025, projecting continued revenue and ARR growth, along with increased non-GAAP operating income | Metric | Q3 2025 Guidance | YoY Growth | Constant Currency YoY Growth | | :----- | :--------------- | :--------- | :--------------------------- | | Total Revenues | $104.6 million to $106.6 million | 18% to 20% | 16% to 18% | | Non-GAAP Operating Income | $18.0 million to $19.0 million | N/A | N/A | | Total ARR | $412.8 million to $418.8 million | 26% to 28% | 24% to 26% | [Full Year 2025 Guidance](index=2&type=section&id=3.2%20Full%20Year%202025%20Guidance) The company raised its full-year 2025 guidance across all metrics, reflecting strong Q2 performance and continued growth expectations for total revenue and non-GAAP operating income - The Company is raising its full-year guidance for all metrics, including revenue, non-GAAP operating income, and ARR, incorporating second quarter outperformance and incremental raises[7](index=7&type=chunk) | Metric | Full Year 2025 Guidance | YoY Growth | Constant Currency YoY Growth | | :----- | :---------------------- | :--------- | :--------------------------- | | Total Revenues | $406.6 million to $410.6 million | 23% to 24% | 21% to 22% | | Non-GAAP Operating Income | $68.3 million to $70.8 million | N/A | N/A | [Company Information and Disclosures](index=2&type=section&id=4.%20Company%20Information%20and%20Disclosures) This section provides essential corporate information, including conference call details, company overview, financial measure definitions, and forward-looking statement disclaimers [Quarterly Conference Call Details](index=2&type=section&id=4.1%20Quarterly%20Conference%20Call%20Details) AvePoint scheduled a conference call for August 7, 2025, to review its second quarter 2025 financial results and discuss its financial outlook, with access available via phone and webcast - Conference call scheduled for **August 7, 2025**, at **4:30pm ET** to review Q2 2025 financial results and discuss financial outlook[8](index=8&type=chunk) - Access available via phone (US: 1 (833) 816-1428, outside US: 1 (412) 317-0520, passcode: 0727391) and webcast (https://www.avepoint.com/ir/events-and-presentations), with a replay available for approximately **90 days**[8](index=8&type=chunk) [About AvePoint](index=2&type=section&id=4.2%20About%20AvePoint) AvePoint is a global leader in data security, governance, and resilience, serving over 25,000 customers worldwide with its Confidence Platform across various collaboration environments and supported by a vast channel partner program - AvePoint is the global leader in data security, governance, and resilience, providing solutions to enable organizations to collaborate with confidence[9](index=9&type=chunk) - Over **25,000 customers worldwide** rely on the AvePoint Confidence Platform to prepare, secure, and optimize critical data across Microsoft, Google, Salesforce, and other collaboration environments[9](index=9&type=chunk) - AvePoint's global channel partner program includes approximately **5,000 managed service providers**, value-added resellers, and systems integrators, with solutions available in more than **100 cloud marketplaces**[9](index=9&type=chunk) [Non-GAAP Financial Measures and Other Key Metrics Definitions](index=2&type=section&id=4.3%20Non-GAAP%20Financial%20Measures%20and%20Other%20Key%20Metrics%20Definitions) This section defines the non-GAAP financial measures and key metrics used by AvePoint, including Annual Recurring Revenue (ARR), Dollar-based Gross Retention Rate, and Dollar-based Net Retention Rate, explaining their calculation and purpose for better business performance measurement - Non-GAAP measures (gross profit, gross margin, operating expenses, operating income, operating margin) exclude stock-based compensation expense and the amortization of acquired intangible assets to provide a better representation of overall operating performance[10](index=10&type=chunk) - Annual Recurring Revenue (ARR) is calculated as the annualized sum of contractually obligated Annual Contract Value (ACV) from SaaS, term license and support, and maintenance revenue sources from all active customers at the end of a reporting period[11](index=11&type=chunk)[12](index=12&type=chunk) - Dollar-based Gross Retention Rate measures the ability to retain existing customers, calculated by dividing Current Period ARR (from prior period customers, including net contraction or attrition) by Prior Period ARR[13](index=13&type=chunk) - Dollar-based Net Retention Rate measures the ability to expand business with existing customers, calculated by dividing Current Period ARR (from prior period customers, including net expansion) by Prior Period ARR[14](index=14&type=chunk) [Forward-Looking Statements](index=3&type=section&id=4.4%20Forward-Looking%20Statements) This section contains cautionary statements regarding forward-looking information, highlighting that such statements are predictions based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially, and the company does not undertake to update them - This press release contains forward-looking statements subject to risks and uncertainties, including changes in competitive and regulated industries, variations in operating performance, changes in laws and regulations, and the risk of market downturns[16](index=16&type=chunk) - Readers are cautioned not to put undue reliance on forward-looking statements, and AvePoint does not assume any obligation to update or revise these statements after the date of release, except as required by law[16](index=16&type=chunk) [Disclosure Information and Contacts](index=4&type=section&id=4.5%20Disclosure%20Information%20and%20Contacts) AvePoint uses its investor relations website for disclosing material non-public information and provides contact details for investor and media inquiries - AvePoint uses the https://www.avepoint.com/ir website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD[18](index=18&type=chunk) - Investor Contact: Jamie Arestia, ir@avepoint.com, **(551) 220-5654**. Media Contact: Nicole Caci, pr@avepoint.com, **(201) 201-8143**[19](index=19&type=chunk) [Condensed Consolidated Financial Statements (Unaudited)](index=4&type=section&id=5.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents AvePoint's unaudited consolidated income statements, balance sheets, and cash flow statements for the specified periods [Condensed Consolidated Statements of Income (Loss)](index=4&type=section&id=5.1%20Condensed%20Consolidated%20Statements%20of%20Income%20(Loss)) The income statement shows AvePoint's financial performance for the three and six months ended June 30, 2025, highlighting significant revenue growth, a shift from operating loss to income, and positive net income compared to a loss in the prior year | Metric (Three Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :---------------------------------- | :------------------ | :------------------ | | Total Revenue | $102,018 | $77,961 | | Gross Profit | $75,539 | $59,019 | | Income (loss) from operations | $7,094 | $(2,138) | | Net income (loss) | $2,893 | $(12,938) | | Net income (loss) per share (Basic) | $0.01 | $(0.07) | | Metric (Six Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :-------------------------------- | :------------------ | :------------------ | | Total Revenue | $195,082 | $152,495 | | Gross Profit | $144,704 | $113,111 | | Income (loss) from operations | $10,381 | $(5,339) | | Net income (loss) | $6,459 | $(14,892) | | Net income (loss) per share (Basic) | $0.03 | $(0.08) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=5.2%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet as of June 30, 2025, shows a significant increase in total assets, primarily driven by higher cash and cash equivalents, and a substantial increase in stockholders' equity compared to December 31, 2024 | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total Assets | $700,129 | $519,055 | | Cash and cash equivalents | $429,816 | $290,735 | | Total Liabilities | $256,994 | $248,107 | | Total Stockholders' Equity | $443,135 | $270,948 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=5.3%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, AvePoint reported a net increase in cash and cash equivalents, primarily due to significant cash provided by financing activities, despite a decrease in cash from operations and increased cash used in investing activities | Cash Flow Activity (Six Months Ended June 30, in thousands) | 2025 | 2024 | | :-------------------------------------------------------- | :--- | :--- | | Net cash provided by operating activities | $20,765 | $23,914 | | Net cash used in investing activities | $(30,332) | $(2,587) | | Net cash provided by (used in) financing activities | $146,794 | $(15,820) | | Net increase in cash and cash equivalents | $139,081 | $3,836 | | Cash and cash equivalents at end of period | $429,816 | $226,998 | [Non-GAAP Reconciliations (Unaudited)](index=7&type=section&id=6.%20Non-GAAP%20Reconciliations%20(Unaudited)) This section provides reconciliations of GAAP to non-GAAP financial measures, detailing adjustments for stock-based compensation and amortization of acquired intangibles [Non-GAAP Operating Income Reconciliation](index=7&type=section&id=6.1%20Non-GAAP%20Operating%20Income%20Reconciliation) Reconciliation shows a significant improvement in non-GAAP operating income and margin for both the three and six months ended June 30, 2025, primarily by excluding stock-based compensation and amortization of acquired intangibles | Metric (Three Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :---------------------------------- | :------------------ | :------------------ | | GAAP operating income (loss) | $7,094 | $(2,138) | | Stock-based compensation expense | $11,143 | $10,538 | | Amortization of acquired intangible assets | $546 | $349 | | Non-GAAP operating income | $18,783 | $8,749 | | Non-GAAP operating margin | 18.4% | 11.2% | [Non-GAAP Gross Profit Reconciliation](index=7&type=section&id=6.2%20Non-GAAP%20Gross%20Profit%20Reconciliation) Non-GAAP gross profit and margin remained strong, with slight adjustments from GAAP figures after excluding stock-based compensation and amortization of acquired intangibles | Metric (Three Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :---------------------------------- | :------------------ | :------------------ | | GAAP gross profit | $75,539 | $59,019 | | Stock-based compensation expense | $399 | $115 | | Amortization of acquired intangible assets | $399 | $239 | | Non-GAAP gross profit | $76,337 | $59,373 | | Non-GAAP gross margin | 74.8% | 76.2% | [Non-GAAP Sales and Marketing Reconciliation](index=7&type=section&id=6.3%20Non-GAAP%20Sales%20and%20Marketing%20Reconciliation) Non-GAAP sales and marketing expenses, after excluding stock-based compensation and amortization, show a decrease as a percentage of revenue, indicating improved efficiency | Metric (Three Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :---------------------------------- | :------------------ | :------------------ | | GAAP sales and marketing | $35,773 | $30,470 | | Stock-based compensation expense | $(2,842) | $(2,214) | | Amortization of acquired intangible assets | $(147) | $(110) | | Non-GAAP sales and marketing | $32,784 | $28,146 | | Non-GAAP sales and marketing as a % of revenue | 32.1% | 36.1% | [Non-GAAP General and Administrative Reconciliation](index=7&type=section&id=6.4%20Non-GAAP%20General%20and%20Administrative%20Reconciliation) Non-GAAP general and administrative expenses, adjusted for stock-based compensation, also decreased as a percentage of revenue, reflecting better cost management | Metric (Three Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :---------------------------------- | :------------------ | :------------------ | | GAAP general and administrative | $19,712 | $18,184 | | Stock-based compensation expense | $(5,580) | $(5,559) | | Non-GAAP general and administrative | $14,132 | $12,625 | | Non-GAAP general and administrative as a % of revenue | 13.9% | 16.2% | [Non-GAAP Research and Development Reconciliation](index=8&type=section&id=6.5%20Non-GAAP%20Research%20and%20Development%20Reconciliation) Non-GAAP research and development expenses, after excluding stock-based compensation, show a reduction as a percentage of revenue, indicating efficient investment in innovation relative to growth | Metric (Three Months Ended June 30) | 2025 (in thousands) | 2024 (in thousands) | | :---------------------------------- | :------------------ | :------------------ | | GAAP research and development | $12,960 | $12,503 | | Stock-based compensation expense | $(2,322) | $(2,650) | | Non-GAAP research and development | $10,638 | $9,853 | | Non-GAAP research and development as a % of revenue | 10.4% | 12.6% |

Core Insights - AvePoint achieved total quarterly revenue exceeding $100 million for the first time, with second quarter total revenue reaching $102.0 million, reflecting a 31% year-over-year growth [1][5] - The company's second quarter SaaS revenue was $77.3 million, marking a 44% year-over-year increase [1][5] - AvePoint's total Annual Recurring Revenue (ARR) stood at $367.6 million, representing a 27% year-over-year growth [1][5] Financial Performance - Gross profit for the second quarter was $75.5 million, with a GAAP gross margin of 74.0%, slightly down from 75.7% in the same quarter of the previous year [5][26] - GAAP operating income was $7.1 million, compared to a loss of $(2.1) million in the second quarter of 2024, resulting in a GAAP operating margin of 7.0% [5][26] - Non-GAAP operating income for the second quarter was $18.8 million, with a non-GAAP operating margin of 18.4%, up from 11.2% in the prior year [5][26] Business Highlights - The AvePoint Confidence Platform was expanded with new features including Risk Posture, Optimization & ROI, and advanced AI security capabilities [5] - The company was recognized in Inc.'s Best Workplaces list for the second consecutive year, highlighting its commitment to creating exceptional workplace culture [5] - AvePoint aims to reach $1 billion in ARR by 2029, indicating strong growth potential and strategic focus [2][5] Financial Outlook - The company raised its full-year guidance for revenue and non-GAAP operating income, reflecting strong second quarter performance [6] - For the full year 2025, total revenue is expected to be between $406.6 million and $410.6 million, representing a year-over-year growth of 23% to 24% [11]

Group 1 - AvePoint, Inc. (NASDAQ: AVPT) is recommended as a buy due to its positioning in a growing market for data management services, driven by increasing demand and adoption of Artificial Intelligence (AI) [1] - The expectation is for AvePoint to continue growing its top line, indicating a positive outlook for revenue growth [1] - The investment strategy focuses on long-term investments while also considering short-term opportunities to uncover alpha, emphasizing a bottom-up analysis of individual companies' fundamentals [1]

Core Viewpoint - AvePoint has completed the redemption of its publicly traded warrants, which were issued as part of its predecessor company's initial public offering, at a redemption price of $0.01 per warrant [1][2]. Group 1: Redemption Details - The redemption of warrants was announced on June 11, 2025, with a total of 1,242,994 warrants outstanding at that time [2]. - Out of the outstanding warrants, 1,053,498 were exercised, generating approximately $12.1 million in cash proceeds [2]. - As of the redemption date, 189,496 warrants remained unexercised, which were redeemed for an aggregate price of approximately $1,895 [2]. Group 2: Trading and Delisting - Following the redemption, the warrants ceased trading on the Nasdaq Global Select Market and will be delisted, effective July 11, 2025 [3]. - AvePoint's common stock continues to trade on Nasdaq under the symbol "AVPT" [3]. Group 3: Company Overview - AvePoint is recognized as a global leader in data security, governance, and resilience, serving over 25,000 customers worldwide [4]. - The company offers solutions that enable organizations to prepare, secure, and optimize their critical data across various collaboration environments, including Microsoft, Google, and Salesforce [4]. - AvePoint's global channel partner program includes over 5,000 managed service providers and resellers, with solutions available in more than 100 cloud marketplaces [4].

Core Viewpoint - AvePoint, a leader in data security, governance, and resilience, is set to report its Q2 2025 financial results on August 7, 2025, after market close [1]. Group 1: Financial Results Announcement - The company will host a conference call at 4:30 PM ET on the same day to discuss the Q2 2025 results, current business trends, and a Q&A session [2]. - A live webcast of the conference call will be available on AvePoint's Investor Relations website, with a replay accessible for approximately 90 days [3]. Group 2: Company Overview - AvePoint serves over 25,000 customers globally, providing solutions that prepare, secure, and optimize critical data across platforms like Microsoft, Google, and Salesforce [4]. - The company has a global channel partner program comprising around 5,000 managed service providers, value-added resellers, and systems integrators, with solutions available in over 100 cloud marketplaces [4].

Core Viewpoint - AvePoint, Inc. (AVPT) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which significantly influences stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the strong correlation between changes in earnings estimates and near-term stock price movements, making it a valuable tool for investors [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling activities [3]. Business Improvement Indicators - The upgrade in earnings estimates for AvePoint suggests an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [4][9]. - AvePoint is projected to earn $0.26 per share for the fiscal year ending December 2025, with a notable increase of 400% in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System Overview - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [6][8]. - The upgrade to Zacks Rank 2 places AvePoint in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9].

Core Insights - AvePoint announced significant updates to the AvePoint Confidence Platform, including the launch of the Optimization and ROI Command Center and the Resilience Command Center, aimed at enhancing data security, governance, and resilience for organizations [1][2][5] Optimization and ROI Command Center - The Optimization and ROI Command Center is designed to help organizations identify cost-saving opportunities, with 92% of companies planning to implement cost-saving measures [2] - It provides a comprehensive view of cost reduction opportunities, focusing on integrated license management, information lifecycle management, and strategic data migration [2] Resilience Command Center - The Resilience Command Center addresses the challenges of managing data resilience in multi-cloud environments, with 89% of enterprises adopting such strategies [3] - It offers monitoring and actionable insights for Microsoft 365 services, including storage consumption tracking and backup data oversight, while also providing cost optimization recommendations [3] Enhanced AI Governance - AvePoint expanded its AI governance capabilities in response to the growing presence of agentic AI, which is expected to rise from less than 1% in 2024 to 33% by 2028 [4] - The updates include enhanced governance for Copilot agents, scalable security applications, and expanded prompt monitoring capabilities [4] Integrated Ecosystem - The AvePoint Confidence Platform creates an integrated ecosystem that combines risk and resilience management, cost optimization, and AI governance, providing organizations with enhanced visibility and control over their data operations [5]

Newest features enable MSPs to maximize their margins, minimize client risk, and accelerate profitable growthJERSEY CITY, N.J., June 17, 2025 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ: AVPT), the global leader in data security, governance and resilience, today announced new capabilities for the AvePoint Elements Platform that enable managed service providers (MSPs) to enhance data security offerings, streamline IT management, and provide optimization services at scale. Through seamless marketplace integration, d ...

Summary of AvePoint (AVPT) FY Conference Call - June 04, 2025 Company Overview - AvePoint is the largest SaaS data governance and security player in the Microsoft Office cloud ecosystem, focusing on unstructured data, which constitutes 80% of all data [4][5] - The immediate addressable market is estimated at $19 billion, covering governance, risk, compliance, data replication, and protection [5][6] Core Business and Strategy - AvePoint operates a singular SaaS platform with 15 instances running in Microsoft Azure, GCP, and AWS, emphasizing a multi-cloud strategy [9][10] - The platform includes three major areas: resiliency (backup as a service), control (data governance), and modernization (data analytics, integration, migration) [11][13] - Resiliency accounts for over 50% of recurring revenue, while control is the fastest-growing suite due to AI deployments [11][13] - The company aims to reduce service revenue from 20% to under 10% to focus on recurring revenue streams [16] Market Position and Competitive Landscape - AvePoint differentiates itself by providing a vertical stack solution within the Microsoft ecosystem, unlike competitors like Commvault and Varonis, which take a horizontal approach [44][45] - The company serves a diverse customer base, with 53% of recurring revenue from companies with over 5,000 employees and 47% from small to medium-sized businesses [18] - The competitive landscape is described as complex, with multiple point competitors, but AvePoint maintains a unique position due to its comprehensive data management solutions [17][48] Financial Performance - Total ARR growth of 26% year-over-year, with net new ARR of $18.5 million, reflecting 85% year-over-year growth [24][25] - SaaS revenue increased by 34% on a constant currency basis, and total revenue rose by 25% [25] - Gross retention stands at 89%, and net retention is at 111%, with targets to improve these figures [27] - Operating margin is reported at just under 14.5%, with a strong start to the year [28] Growth Potential and Future Outlook - AvePoint aims for a long-term target of $1 billion in ARR with a 25% CAGR [21] - The company is focused on profitable growth, with improvements in gross margins from 72% to nearly 76% [35] - Capital allocation strategy includes investing in business growth, pursuing M&A opportunities, and share repurchases [39][40] Customer Engagement and Value Proposition - AvePoint emphasizes the importance of data governance and quality in the context of AI and security, positioning itself as an advocate for customers navigating multi-cloud environments [54][55] - The company has established a strong relationship with Microsoft, leveraging its position within the ecosystem while addressing customer needs for diverse data management solutions [52][56] Key Takeaways - AvePoint's diversified approach across industries and customer segments is a significant strength, allowing for scalability and resilience in a competitive market [30][61] - The company has successfully built a global organization with a focus on profitable growth, setting the stage for future expansion and innovation [62][63] - Continuous investment in technology and customer relationships is crucial for maintaining competitive advantage in the evolving landscape of data management and governance [40][65]