AvePoint Announces First Quarter 2022 Financial Results
13 May 2022 - 6:05AM
AvePoint (NASDAQ: AVPT), the most advanced SaaS and data management
platform provider, today announced financial results for the first
quarter ended March 31, 2022.
“AvePoint’s first quarter results were a good start to 2022,
with robust SaaS revenue growth of 45%, solid ARR growth of 30% and
profitability that was ahead of expectations,” said Dr. Tianyi
Jiang (TJ), CEO and Co-Founder, AvePoint. “Underpinning our strong
revenue growth is the continued evolution of our full suite of SaaS
solutions that enable organizations worldwide to collaborate with
confidence in the cloud by securing collaboration data, sustaining
the connections between people, and ensuring business continuity.
I'm thankful to our AvePoint team for its continued focus on
execution through extending innovative product offerings, expanding
our channel business, and quickly responding to the evolving market
trends our existing customers face as they continue their cloud
transformations.”
First Quarter 2022 Financial Highlights
- Revenue: Total
revenue for the first quarter of 2022 was $50.3 million, up 30%
from the first quarter of 2021. Within total revenue, SaaS revenue
was $26.6 million, up 45% from the first quarter of 2021, and term
license and support revenue was $10.2 million, up 17% from the
first quarter of 2021.
- Gross Profit: Gross
profit for the first quarter of 2022 was $35.7 million, compared to
$28.0 million for the first quarter of 2021. Gross margin for the
first quarter of 2022 was 70.9%, compared to 72.2% for the first
quarter of 2021. Non-GAAP gross profit for the first quarter of
2022 was $36.2 million, compared to $28.1 million for the first
quarter of 2021. Non-GAAP gross margin was 72.1% for the first
quarter of 2022, compared to 72.5% for the first quarter of
2021.
- Operating
Income/(Loss): Operating loss for the first quarter of
2022 was $(13.8) million, compared to $(5.9) million for the first
quarter of 2021. Non-GAAP operating loss for the first quarter of
2022 was $(5.6) million, compared to $(2.6) million for the first
quarter of 2021.
- Cash and Short-Term
Investments: $260 million as of March 31, 2022.
First Quarter Key Highlights
- Grew total ARR 30% year-over-year to
$167.4 million.
- Reported dollar-based net retention
rate of 108%.
- Expanded robust data protection
capabilities with the introduction of ransomware detection.
- Introduced AvePoint Entrust, which
manages administrative users, processes, and data insights across
multi-cloud tenants, and Confide, AvePoint’s secure virtual data
room workspace designed to help business users with swift and
secure collaboration on confidential projects.
- To date, repurchased 945,000 shares
under the share repurchase program at a cost of approximately $4.8
million.
Financial Outlook
AvePoint is providing guidance for its second quarter and full
year 2022 as follows:
- Second Quarter 2022
Guidance: Total revenue is expected to be in the range of
$54.0 million to $56.0 million or approximately 21% year-over-year
growth. Non-GAAP operating loss is expected to be in the range of
$(1.5) to $(2.5) million.
- Full Year 2022
Guidance: Total revenue is expected to be in the range of
$238.0 million to $244.0 million or approximately 26%
year-over-year growth. Non-GAAP operating income/loss is expected
to be in the range of a loss of $(3.5) million to income of $1.0
million. ARR is expected to be in the range of $212 million to $216
million or approximately 34% year-over-year growth.
Quarterly Conference Call
AvePoint will host a conference call today, May 12, 2022, to
review its first quarter 2022 financial results and to discuss its
financial outlook. The call is scheduled to begin at 4:30pm ET. You
may access the call and register with a live operator by dialing 1
(877) 224-6304 for US participants and 1 (416) 981-9015 for those
outside the US. The conference ID for the call is 22018544.
Investors can also join by webcast by visiting
https://ir.avepoint.com/events. The webcast will be available live,
and a replay will be available following the completion of the live
broadcast for approximately 90 days.
About AvePoint
Collaborate with confidence. AvePoint provides the most advanced
platform for SaaS and data management to optimize SaaS operations
and secure collaboration. More than 9 million cloud users rely on
our solutions. Our SaaS solutions are also available to managed
service providers via more than 100 cloud marketplaces, so they can
better support and manage their small and mid-sized business
customers. Founded in 2001, AvePoint is a five-time Global
Microsoft Partner of the Year and headquartered in Jersey City, New
Jersey. For more information, visit www.avepoint.com.
Non-GAAP Financial Measures
To supplement AvePoint’s consolidated financial statements
presented in accordance with GAAP, the company uses non-GAAP
measures of certain components of financial performance. These
non-GAAP measures include non-GAAP gross profit, non-GAAP gross
margin, non-GAAP operating expenses (including percentage of
revenue figures), non-GAAP operating income and non-GAAP operating
margin. In order for AvePoint’s investors to be better able to
compare its current results with those of previous periods, the
company has included a reconciliation of GAAP to non-GAAP financial
measures at the end of this press release. These reconciliations
adjust the related GAAP financial measures to exclude stock-based
compensation expense. AvePoint believes the presentation of its
non-GAAP financial measures enhances the user’s overall
understanding of its historical financial performance. The
presentation of AvePoint’s non-GAAP financial measures is not meant
to be considered in isolation or as a substitute for its financial
results prepared in accordance with GAAP, and AvePoint’s non-GAAP
measures may be different from non-GAAP measures used by other
companies.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the “safe harbor” provisions of the United
States Private Securities Litigation Reform Act of 1995 and other
federal securities laws including statements regarding the future
performance of and market opportunities for AvePoint. These
forward-looking statements generally are identified by the words
"believe," "project," "expect," "anticipate," "estimate," "intend,"
"strategy," "future," "opportunity," "plan," "may," "should,"
"will," "would," "will be," "will continue," "will likely result,"
and similar expressions. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this press release, including but not
limited to: changes in the competitive and regulated industries in
which AvePoint operates, variations in operating performance across
competitors, changes in laws and regulations affecting AvePoint's
business and changes in AvePoint’s ability to implement business
plans, forecasts, and ability to identify and realize additional
opportunities, and the risk of downturns in the market and the
technology industry. You should carefully consider the foregoing
factors and the other risks and uncertainties described in the
"Risk Factors" section of AvePoint’s most
recent Annual Report on Form 10-K and its
registration statement on Form S-1 and related prospectus and
prospectus supplements filed with the SEC. Copies of these and
other documents filed by AvePoint from time to time are available
on the SEC's website, www.sec.gov. These filings identify and
address other important risks and uncertainties that could cause
actual events and results to differ materially from those contained
in the forward-looking statements. Forward-looking statements speak
only as of the date they are made. Readers are cautioned not to put
undue reliance on forward-looking statements, and AvePoint does not
assume any obligation and does not intend to update or revise these
forward-looking statements after the date of this release, whether
as a result of new information, future events, or otherwise, except
as required by law. AvePoint does not give any assurance that it
will achieve its expectations.
Investor Contact: ICR for AvePoint, Inc.Marc P.
Griffinir@avepoint.com646-277-1290
Media Contact:AvePoint, Inc.Nicole
Cacipr@avepoint.com 201-201-8143
AvePoint, Inc. and SubsidiariesCondensed
Consolidated Statements of Operations(In thousands, except per
share amounts)(Unaudited)
|
|
For the Three Months Ended |
|
|
|
March 31, |
|
|
|
2022 |
|
|
2021 |
|
Revenue: |
|
|
|
|
|
|
|
|
SaaS |
|
$ |
26,553 |
|
|
$ |
18,259 |
|
Term license and support |
|
|
10,202 |
|
|
|
8,727 |
|
Services |
|
|
8,925 |
|
|
|
5,916 |
|
Maintenance |
|
|
4,441 |
|
|
|
5,409 |
|
Perpetual license |
|
|
170 |
|
|
|
489 |
|
Total revenue |
|
|
50,291 |
|
|
|
38,800 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
SaaS |
|
|
5,520 |
|
|
|
4,440 |
|
Term license and support |
|
|
576 |
|
|
|
273 |
|
Services |
|
|
8,259 |
|
|
|
5,585 |
|
Maintenance |
|
|
275 |
|
|
|
480 |
|
Total cost of revenue |
|
|
14,630 |
|
|
|
10,778 |
|
Gross profit |
|
|
35,661 |
|
|
|
28,022 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
27,054 |
|
|
|
19,301 |
|
General and administrative |
|
|
15,542 |
|
|
|
10,292 |
|
Research and development |
|
|
6,402 |
|
|
|
4,102 |
|
Depreciation and amortization |
|
|
511 |
|
|
|
258 |
|
Total operating expenses |
|
|
49,509 |
|
|
|
33,953 |
|
Loss from operations |
|
|
(13,848 |
) |
|
|
(5,931 |
) |
Gain on earn-out and warrant
liabilities |
|
|
3,267 |
|
|
|
— |
|
Interest income, net |
|
|
14 |
|
|
|
13 |
|
Other expense, net |
|
|
(177 |
) |
|
|
(63 |
) |
Loss before income taxes |
|
|
(10,744 |
) |
|
|
(5,981 |
) |
Income tax expense
(benefit) |
|
|
309 |
|
|
|
(1,039 |
) |
Net loss |
|
$ |
(11,053 |
) |
|
$ |
(4,942 |
) |
Net income attributable to and
accretion of redeemable noncontrolling interest |
|
|
(617 |
) |
|
|
(397 |
) |
Net loss attributable to
AvePoint, Inc. |
|
$ |
(11,670 |
) |
|
$ |
(5,339 |
) |
Deemed dividends on preferred
stock |
|
|
— |
|
|
|
(8,794 |
) |
Net loss available to common
shareholders |
|
$ |
(11,670 |
) |
|
$ |
(14,133 |
) |
Loss per share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.06 |
) |
|
$ |
(0.14 |
) |
Diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.14 |
) |
Shares used in computing loss
per share: |
|
|
|
|
|
|
|
|
Basic |
|
|
182,833 |
|
|
|
100,773 |
|
Diluted |
|
|
182,833 |
|
|
|
100,773 |
|
AvePoint, Inc. and SubsidiariesCondensed
Consolidated Balance Sheets(In thousands, except par
value)(Unaudited)
|
|
March 31, |
|
|
December 31, |
|
|
|
2022 |
|
|
2021 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
78,764 |
|
|
$ |
268,217 |
|
Short-term investments |
|
|
181,292 |
|
|
|
2,411 |
|
Accounts receivable, net of allowance of $805 and $838 at March 31,
2022 and December 31, 2021, respectively |
|
|
48,039 |
|
|
|
55,067 |
|
Prepaid expenses and other current assets |
|
|
7,575 |
|
|
|
8,461 |
|
Total current assets |
|
|
315,670 |
|
|
|
334,156 |
|
Property and equipment,
net |
|
|
4,457 |
|
|
|
3,922 |
|
Goodwill and other intangible
assets, net |
|
|
8,492 |
|
|
|
— |
|
Operating lease right-of-use
assets |
|
|
13,409 |
|
|
|
— |
|
Deferred contract costs |
|
|
39,090 |
|
|
|
38,926 |
|
Other assets |
|
|
10,350 |
|
|
|
11,734 |
|
Total assets |
|
$ |
391,468 |
|
|
$ |
388,738 |
|
Liabilities, mezzanine
equity, and
stockholders’ deficiency |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,795 |
|
|
$ |
1,824 |
|
Accrued expenses and other liabilities |
|
|
27,277 |
|
|
|
35,062 |
|
Current portion of deferred revenue |
|
|
76,077 |
|
|
|
74,294 |
|
Total current liabilities |
|
|
105,149 |
|
|
|
111,180 |
|
Long-term operating lease
liabilities |
|
|
10,177 |
|
|
|
— |
|
Long-term portion of deferred
revenue |
|
|
7,886 |
|
|
|
8,038 |
|
Earn-out shares
liabilities |
|
|
12,801 |
|
|
|
10,012 |
|
Other non-current
liabilities |
|
|
4,400 |
|
|
|
3,943 |
|
Total liabilities |
|
|
140,413 |
|
|
|
133,173 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
Mezzanine equity |
|
|
|
|
|
|
|
|
Redeemable noncontrolling interest |
|
|
5,818 |
|
|
|
5,210 |
|
Total mezzanine equity |
|
|
5,818 |
|
|
|
5,210 |
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Common stock, $0.0001 par value; 1,000,000 shares authorized,
182,493 and 181,822 shares issued and outstanding, at March 31,
2022 and December 31, 2021, respectively |
|
|
18 |
|
|
|
18 |
|
Additional paid-in capital |
|
|
634,070 |
|
|
|
625,056 |
|
Treasury stock |
|
|
(2,482 |
) |
|
|
(1,739 |
) |
Accumulated other comprehensive income |
|
|
598 |
|
|
|
2,317 |
|
Accumulated deficit |
|
|
(386,967 |
) |
|
|
(375,297 |
) |
Total stockholders’
equity |
|
|
245,237 |
|
|
|
250,355 |
|
Total liabilities, mezzanine
equity, and stockholders’ equity |
|
$ |
391,468 |
|
|
$ |
388,738 |
|
AvePoint, Inc. and SubsidiariesCondensed
Consolidated Statements of Cash Flows(In thousands)(Unaudited)
|
|
For the Three Months Ended |
|
|
|
March 31, |
|
|
|
2022 |
|
|
2021 |
|
Operating activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(11,053 |
) |
|
$ |
(4,942 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
1,662 |
|
|
|
258 |
|
Foreign currency remeasurement loss (gain) |
|
|
194 |
|
|
|
(71 |
) |
Provision for doubtful accounts |
|
|
(9 |
) |
|
|
(393 |
) |
Stock-based compensation |
|
|
8,274 |
|
|
|
3,289 |
|
(Gain) loss on disposal of property and equipment |
|
|
(12 |
) |
|
|
1 |
|
Deferred income taxes |
|
|
(9 |
) |
|
|
— |
|
Change in value of earn-out and warrant liabilities |
|
|
(3,252 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable and long-term unbilled receivables |
|
|
9,248 |
|
|
|
6,224 |
|
Prepaid expenses and other current assets |
|
|
205 |
|
|
|
(379 |
) |
Deferred contract costs and other assets |
|
|
(2,090 |
) |
|
|
(969 |
) |
Accounts payable, accrued expenses and other liabilities |
|
|
(11,725 |
) |
|
|
(7,462 |
) |
Deferred revenue |
|
|
2,444 |
|
|
|
179 |
|
Net cash used in operating
activities |
|
|
(6,123 |
) |
|
|
(4,265 |
) |
Investing
activities |
|
|
|
|
|
|
|
|
Maturities of investments |
|
|
861 |
|
|
|
— |
|
Purchases of investments |
|
|
(179,890 |
) |
|
|
(268 |
) |
Acquisition of I-Access, net
of cash acquired |
|
|
(1,473 |
) |
|
|
— |
|
Purchase of property and
equipment |
|
|
(969 |
) |
|
|
(266 |
) |
Net cash used in investing
activities |
|
|
(181,471 |
) |
|
|
(534 |
) |
Financing
activities |
|
|
|
|
|
|
|
|
Payments of transaction
fees |
|
|
— |
|
|
|
(1,255 |
) |
Purchase of common stock |
|
|
(744 |
) |
|
|
— |
|
Proceeds from stock option
exercises |
|
|
1,036 |
|
|
|
1,126 |
|
Proceeds from sale of common
shares of subsidiary |
|
|
— |
|
|
|
753 |
|
Repayments of finance
leases |
|
|
(5 |
) |
|
|
(7 |
) |
Net cash provided by financing
activities |
|
|
287 |
|
|
|
617 |
|
Effect of exchange rates on
cash |
|
|
(2,146 |
) |
|
|
(365 |
) |
Net decrease in cash and cash
equivalents |
|
|
(189,453 |
) |
|
|
(4,547 |
) |
Cash and cash equivalents at
beginning of period |
|
|
268,217 |
|
|
|
69,112 |
|
Cash and cash equivalents at
end of period |
|
$ |
78,764 |
|
|
$ |
64,565 |
|
Supplemental
disclosures of cash flow information |
|
|
|
|
|
|
|
|
Income taxes paid |
|
$ |
335 |
|
|
$ |
304 |
|
Noncash acquisition of I-Access |
|
$ |
5,636 |
|
|
$ |
— |
|
AvePoint, Inc. and SubsidiariesNon-GAAP
Reconciliations(In thousands)(Unaudited)
|
|
For the Three Months Ended |
|
|
|
March 31, |
|
|
|
2022 |
|
|
2021 |
|
Non-GAAP operating income |
|
|
|
|
|
|
|
|
GAAP operating loss |
|
$ |
(13,848 |
) |
|
$ |
(5,931 |
) |
Stock-based compensation
expense |
|
|
8,274 |
|
|
|
3,289 |
|
Non-GAAP operating income |
|
$ |
(5,574 |
) |
|
$ |
(2,642 |
) |
Non-GAAP operating margin |
|
|
-11.1 |
% |
|
|
-6.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross
profit |
|
|
|
|
|
|
|
|
GAAP gross profit |
|
$ |
35,661 |
|
|
$ |
28,022 |
|
Stock-based compensation
expense |
|
|
578 |
|
|
|
90 |
|
Non-GAAP gross profit |
|
$ |
36,239 |
|
|
$ |
28,112 |
|
Non-GAAP gross margin |
|
|
72.1 |
% |
|
|
72.5 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP sales and
marketing |
|
|
|
|
|
|
|
|
GAAP sales and marketing |
|
$ |
27,054 |
|
|
$ |
19,301 |
|
Stock-based compensation
expense |
|
|
(2,462 |
) |
|
|
(1,111 |
) |
Non-GAAP sales and
marketing |
|
$ |
24,592 |
|
|
$ |
18,190 |
|
Non-GAAP sales and marketing
as a % of revenue |
|
|
48.9 |
% |
|
|
46.9 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP general and
administrative |
|
|
|
|
|
|
|
|
GAAP general and
administrative |
|
$ |
15,542 |
|
|
$ |
10,292 |
|
Stock-based compensation
expense |
|
|
(4,484 |
) |
|
|
(1,991 |
) |
Non-GAAP general and
administrative |
|
$ |
11,058 |
|
|
$ |
8,301 |
|
Non-GAAP general and
administrative as a % of revenue |
|
|
22.0 |
% |
|
|
21.4 |
% |
|
|
|
|
|
|
|
|
|
Non-GAAP research and
development |
|
|
|
|
|
|
|
|
GAAP research and
development |
|
$ |
6,402 |
|
|
$ |
4,102 |
|
Stock-based compensation
expense |
|
|
(750 |
) |
|
|
(97 |
) |
Non-GAAP research and
development |
|
$ |
5,652 |
|
|
$ |
4,005 |
|
Non-GAAP research and
development as a % of revenue |
|
|
11.2 |
% |
|
|
10.3 |
% |
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