AvePoint(AVPT) - 2025 Q2 - Quarterly Results

Press Release Summary AvePoint reported strong Q2 2025 financial results, achieving record quarterly revenue and highlighting strategic innovation for the AI era Headline Financial Achievements 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 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] - 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] - 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] Second Quarter 2025 Performance and Business Highlights 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 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 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] - 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] - Named to Inc.'s Best Workplaces list for the second consecutive year, honoring organizations creating exceptional workplaces and company cultures[6] Financial Outlook 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 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 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] | 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 This section provides essential corporate information, including conference call details, company overview, financial measure definitions, and forward-looking statement disclaimers Quarterly Conference Call Details 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] - 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] About AvePoint 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] - 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] - 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] Non-GAAP Financial Measures and Other Key Metrics Definitions 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] - 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][12] - 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] - 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] Forward-Looking Statements 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] - 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] Disclosure Information and Contacts 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] - Investor Contact: Jamie Arestia, ir@avepoint.com, (551) 220-5654. Media Contact: Nicole Caci, pr@avepoint.com, (201) 201-8143[19] Condensed Consolidated Financial Statements (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) 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 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 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) 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 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 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 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 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 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% |