Financial Data and Key Metrics Changes - For Q1 2024, total revenues were $74.5 million, up 25% year-over-year, exceeding guidance [18] - SaaS revenue was $51.3 million, growing 44% year-over-year, comprising 69% of total revenues compared to 60% a year ago [18] - Gross profit for Q1 was $55.2 million, with a gross margin of 74.1%, up from 71.5% in Q1 2023 [22] - Operating income was $6.6 million, with an operating margin of 8.9% [23] - Total ARR as of March 31, 2024, was $274.5 million, representing year-over-year growth of 23% [20] Business Line Data and Key Metrics Changes - SaaS revenue continues to be the fastest-growing segment, with a 44% year-over-year growth [18] - Services revenues grew 8% year-over-year but declined as a percentage of total revenue to 14% [19] - Term license and support revenue declined year-over-year, both in dollars and as a percentage of total revenue [18] Market Data and Key Metrics Changes - SaaS revenue growth was above 40% in every region: North America (42%), EMEA (46%), and APAC (47%) [19] - North America ARR grew 22%, EMEA ARR grew 27%, and APAC ARR grew 27% [20] Company Strategy and Development Direction - The company focuses on building a strong data foundation for customers to leverage generative AI and improve operational efficiency [6] - Ongoing investments are being made to innovate in the dynamic business environment, particularly in AI readiness solutions [16] - The strategy emphasizes the importance of a robust information management strategy to realize benefits from AI [13] Management's Comments on Operating Environment and Future Outlook - Management highlighted the critical need for organizations to prepare their data for AI deployment, citing that 83% of surveyed organizations plan to increase AI spending [8] - The company raised its full-year guidance for total ARR, total revenue, and non-GAAP operating income, reflecting confidence in continued growth [25] Other Important Information - The company ended Q1 with $219.3 million in cash and short-term investments, with cash generated from operations of $7.8 million [24] - The company repurchased 1.8 million shares for approximately $13.7 million during the quarter [24] Q&A Session Summary Question: Can you talk about the rollout of the Copilot analytics offering within tyGraph? - Management noted that tyGraph for Copilot is the first solution in the market to help customers focus on high-density collaboration areas for AI readiness [29] Question: What is driving the inflection in SaaS growth? - Management indicated that growth is driven by both new customers and expansion within the existing customer base, contributing to a net retention rate of 110% [32] Question: Are there any updates on the SMB sector and potential budget constraints? - Management reported strong demand from managed service providers (MSPs) and did not observe significant weakness in the SMB segment [36] Question: How is the push towards cost optimization trending among larger customers? - Management observed that customers are increasingly seeking platform vendors for cost savings and maximizing ROI on existing cloud investments [55] Question: How is the go-to-market strategy evolving? - Management emphasized the importance of a comprehensive data management approach and the need for a solid data state to support AI initiatives [62]

Financial Performance - Total revenue for Q1 2024 was $74.534 million, a 25% increase from $59.572 million in Q1 2023[19] - SaaS revenue reached $51.311 million, up 45% from $35.512 million year-over-year[19] - Gross profit for the quarter was $54.092 million, compared to $41.682 million in the same period last year, reflecting a gross margin improvement[19] - Operating expenses totaled $57.293 million, an increase of 13% from $50.514 million in Q1 2023[19] - The net loss for Q1 2024 was $1.954 million, a significant improvement from a net loss of $9.182 million in Q1 2023[19] - Total comprehensive loss for the three months ended March 31, 2024, was $2,221 thousand, compared to $9,148 thousand for the same period in 2023, indicating a decrease of about 75.8%[22] - Basic and diluted loss per share available to common shareholders, excluding sponsor earn-out shareholders, was $(0.01) for the three months ended March 31, 2024, compared to $(0.05) for the same period in 2023[120] Cash and Assets - Cash and cash equivalents as of March 31, 2024, were $215.489 million, down from $223.162 million at the end of 2023[17] - Total assets decreased to $413.818 million from $442.582 million at the end of 2023[17] - Current liabilities decreased to $163.461 million from $176.665 million at the end of 2023[17] - Cash and cash equivalents at the end of the period were $215,489 thousand, down from $228,827 thousand at the end of 2023, reflecting a decrease of approximately 5.8%[28] - The company's cash balances at entities with regulations limiting cash transfer were $9.1 million as of March 31, 2024, down from $13.1 million as of December 31, 2023[42] - The total stockholders' equity as of March 31, 2024, was $212,748 thousand, a decrease from $229,147 thousand as of December 31, 2023, indicating a decline of approximately 7.1%[24] Revenue Breakdown - Revenue from North America was $29.895 million, up from $24.436 million year-over-year, reflecting a 22.5% increase[115] - EMEA revenue increased to $22.806 million from $19.488 million, a growth of 16.0%[115] - APAC revenue rose to $21.833 million, compared to $15.648 million in the prior year, marking a 39.2% increase[115] - Total annual recurring revenue (ARR) increased 23% year-over-year to $274.5 million as of March 31, 2024[128] - SaaS revenue represented 69% of total revenue for the three months ended March 31, 2024, up from 60% in the prior year[150] Operating Activities - Net cash provided by operating activities for the three months ended March 31, 2024, was $7,756 thousand, compared to $1,250 thousand for the same period in 2023, showing an increase of about 520.5%[28] - The company reported a GAAP operating loss of $3.2 million for the three months ended March 31, 2024, with a GAAP operating margin of (4.3)%, while the non-GAAP operating income was $6.6 million, resulting in a non-GAAP operating margin of 8.9%[171] Stock and Compensation - Stock-based compensation expense for the three months ended March 31, 2024, was $9,458 thousand, up from $8,104 thousand in the same period of 2023, representing an increase of approximately 16.7%[28] - The Company repurchased common stock amounting to $13,743 thousand during the three months ended March 31, 2024, compared to $1,811 thousand in the same period of 2023[28] - The Company reported total stock-based compensation for the three months ended March 31, 2024, was $9.458 million, up from $8.104 million in the same period of 2023, representing a 16.7% increase[98] Future Outlook and Strategy - The company continues to focus on expanding its SaaS offerings and improving operational efficiency to drive future growth[19] - The company continues to focus on expanding its cloud-native software platform to enhance operations and secure digital workplaces for organizations globally[31] - The company plans to continue investment in sales and marketing by hiring additional personnel and executing a global go-to-market strategy[143] Risks and Compliance - The company is exposed to foreign currency exchange risk, which may significantly affect revenue and expenses due to fluctuations in foreign exchange rates[196] - The company has identified a material weakness in internal control over financial reporting as of March 31, 2024, affecting the accuracy and completeness of information used[203] - The company’s financial position and results of operations are presented in conformity with U.S. GAAP despite the identified material weakness[204]

EXHIBIT 99.1 AvePoint Announces First Quarter 2024 Financial Results First quarter SaaS revenue of $51.3 million, representing 44% year-over-year growth First quarter Total revenue of $74.5 million, representing 25% year-over-year growth Total ARR of $274.5 million, representing 23% year-over-year growth JERSEY CITY, N.J., May 09, 2024 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ: AVPT), a global leader in robust data management and data governance, today announced financial results for the first quarter ended Marc ...

JERSEY CITY, N.J., April 03, 2024 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ:AVPT), the most advanced platform to optimize SaaS operations and secure collaboration, today announced the results of its inaugural AI and Information Management Report in collaboration with the Association for Intelligent Information Management (AIIM) and the Centre for Information Policy Leadership (CIPL). AvePoint surveyed over 750 digital workplace leaders across the world and industries and found that nearly every organization expe ...

If you’re on the hunt for stocks under $10, look no further. The stock market has been off to a scorching start in 2024. Indexes have been going virtually straight up and momentum stocks are flying. With the economy remaining strong and the Federal Reserve potentially set to cut interest rates, this is seemingly a best of all worlds scenario for the equity market. The enthusiasm is understandable.But it does leave some investors wondering where the bargains are. After such a huge run in the major indexes, a ...

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]