AvePoint Announces Second Quarter 2022 Financial Results
08/11/2022 - 04:05 PM
Second quarter SaaS revenue of $27.6 million , representing 34% year-over-year growth, 43% adjusted for constant currency$55.7 million , representing 23% year-over-year growth, 31% adjusted for constant currency$178.2 million , representing 28% year-over-year growth, 29% adjusted for FX impact
JERSEY CITY, N.J., Aug. 11, 2022 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ: AVPT), the most advanced SaaS and data management platform provider, today announced financial results for the second quarter ended June 30, 2022.
“Q2 was yet another quarter of solid execution with strong results demonstrating the durability of our business in a challenging macro environment,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder of AvePoint. “Technology plays an important role for organizations across every sector and yet the continual complex nature of SaaS environments comes with inherent challenges. Solving these challenges continues to be a top priority for our customers who understand how our solutions can secure their digital collaboration data, sustain connections between people, ensure business continuity and provide a clear and measurable ROI.”
Second Quarter 2022 Financial Highlights
Revenue : Total revenue for the second quarter of 2022 was $55.7 million , up 23% from the second quarter of 2021 and up 31% year over year on a constant currency basis. Within total revenue, SaaS revenue was $27.6 million , up 34% from the second quarter of 2021 and up 43% year over year on a constant currency basis.Gross Profit : Gross profit for the second quarter of 2022 was $40.3 million , compared to $33.6 million for the second quarter of 2021. Gross margin for the second quarter of 2022 was 72.3% , compared to 74.2% for the second quarter of 2021. Non-GAAP gross profit for the second quarter of 2022 was $41.0 million , compared to $33.9 million for the second quarter of 2021. Non-GAAP gross margin was 73.6% for the second quarter of 2022, compared to 74.8% for the second quarter of 2021.Operating Income/(Loss): Operating loss for the second quarter of 2022 was $(11.8) million , compared to $(11.2) million for the second quarter of 2021. Non-GAAP operating loss for the second quarter of 2022 was $(1.3) million , compared to $3.3 million for the second quarter of 2021.Cash and short-term investments: $246.6 million as of June 30, 2022.Second Quarter Key Highlights
ARR for the second quarter was $178.2 million dollars. Excluding the $1.5 million dollar FX headwind, ARR grew by $39.2 million dollars year-over-year, representing 28% percent year-over-year growth. Reported dollar-based net retention rate of 106% , 107% adjusted for FX impact. Added four new solutions on Microsoft AppSource, an online cloud marketplace providing tailored line-of-business solutions. Enhanced robust data protection capabilities with the addition of Microsoft Azure backup. Garnered industry recognition for continued innovation, winning the 2022 EdTech Breakthrough Award and multiple channel program awards in addition to being a finalist for 2022 Microsoft Partner of the Year Awards in education and government. Through June 30, 2022, repurchased approximately 1.9 million shares under the share repurchase program at a cost of approximately $10 million . Financial Outlook
Since March 31, 2022, we have seen an incremental strengthening of the U.S. dollar resulting in a foreign exchange headwind in fiscal 2022. We now expect the total FX impact to be approximately $4.8 million dollars on ARR and $5 million dollars on revenue. Our revised guidance assumes this trend and that the challenging macroeconomic environment will continue for the remainder of the year.
Third Quarter 2022 Guidance : Total revenue is expected to be in the range of $62 million to $64 million or approximately 17% year-over-year growth, 23% adjusted for constant currency. Non-GAAP operating income is expected to be in the range of $1 million to $2 million .Full Year 2022 Guidance : Total revenue is expected to be in the range of $230.0 million to $234.0 million or approximately 21% year-over-year growth, 26% adjusted for constant currency. 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 $202 million to $206 million or approximately 28% year-over-year growth, 31% adjusted for FX impact.Quarterly Conference Call
AvePoint will host a conference call today, August 11, 2022, to review its second 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 (844) 826-3035 for US participants and 1 (412) 317-5195 for outside the US. The conference ID for the call is 10169265. 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.
Disclosure Information
AvePoint uses the https://ir.avepoint.com/ website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.
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 Quarterly Report on Form 10-Q 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.
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AvePoint, Inc. and Subsidiaries
Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Revenue: SaaS $ 27,619 $ 20,586 $ 54,172 $ 38,845 Term license and support 14,011 11,088 24,213 19,815 Services 9,848 7,302 18,773 13,218 Maintenance 4,067 5,458 8,508 10,867 Perpetual license 156 910 326 1,399 Total revenue 55,701 45,344 105,992 84,144 Cost of revenue: SaaS 6,120 4,564 11,640 9,004 Term license and support 482 230 1,058 503 Services 8,550 6,508 16,809 12,093 Maintenance 275 418 550 898 Total cost of revenue 15,427 11,720 30,057 22,498 Gross profit 40,274 33,624 75,935 61,646 Operating expenses: Sales and marketing 27,174 29,001 54,228 48,302 General and administrative 16,322 11,664 31,864 21,956 Research and development 7,892 3,883 14,294 7,985 Depreciation and amortization 629 279 1,140 537 Total operating expenses 52,017 44,827 101,526 78,780 Loss from operations (11,743 ) (11,203 ) (25,591 ) (17,134 ) Gain on earn-out and warrant liabilities 2,668 — 5,935 — Interest income, net 20 11 34 24 Other income (expense), net (693 ) 62 (870 ) (1 ) Loss before income taxes (9,748 ) (11,130 ) (20,492 ) (17,111 ) Income tax benefit (546 ) (73 ) (237 ) (1,112 ) Net loss $ (9,202 ) $ (11,057 ) $ (20,255 ) $ (15,999 ) Net income attributable to and accretion of redeemable noncontrolling interest (627 ) (499 ) (1,244 ) (896 ) Net loss attributable to AvePoint, Inc. $ (9,829 ) $ (11,556 ) $ (21,499 ) $ (16,895 ) Deemed dividends on preferred stock — (24,742 ) — (33,536 ) Net loss available to common shareholders $ (9,829 ) $ (36,298 ) $ (21,499 ) $ (50,431 ) Basic and diluted loss per share $ (0.05 ) $ (0.36 ) $ (0.12 ) $ (0.50 ) Basic and diluted shares used in computing loss per share 182,491 101,968 182,661 101,368
AvePoint, Inc. and Subsidiaries
June 30, December 31, 2022 2021 Assets Current assets: Cash and cash equivalents $ 65,062 $ 268,217 Short-term investments 181,545 2,411 Accounts receivable, net of allowance of $1,320 and $838 at June 30, 2022 and December 31, 2021, respectively 51,441 55,067 Prepaid expenses and other current assets 6,248 8,461 Total current assets 304,296 334,156 Property and equipment, net 5,179 3,922 Goodwill 4,744 — Other intangible assets, net 5,156 — Operating lease right-of-use assets 18,068 — Deferred contract costs 40,474 38,926 Other assets 10,004 11,734 Total assets $ 387,921 $ 388,738 Liabilities, mezzanine equity, and stockholders’ equity Current liabilities: Accounts payable $ 2,100 $ 1,824 Accrued expenses and other liabilities 32,730 35,062 Current portion of deferred revenue 73,795 74,294 Total current liabilities 108,625 111,180 Long-term operating lease liabilities 13,690 — Long-term portion of deferred revenue 7,151 8,038 Earn-out shares liabilities 4,770 10,012 Other non-current liabilities 4,261 3,943 Total liabilities 138,497 133,173 Commitments and contingencies Mezzanine equity Redeemable noncontrolling interest 12,173 5,210 Total mezzanine equity 12,173 5,210 Stockholders’ equity Common stock, $0.0001 par value; 1,000,000 shares authorized, 181,331 and 181,822 shares issued and outstanding, at June 30, 2022 and December 31, 2021, respectively 18 18 Additional paid-in capital 644,931 625,056 Treasury stock (11,791 ) (1,739 ) Accumulated other comprehensive income 889 2,317 Accumulated deficit (396,796 ) (375,297 ) Total stockholders’ equity 237,251 250,355 Total liabilities, mezzanine equity, and stockholders’ equity $ 387,921 $ 388,738
AvePoint, Inc. and Subsidiaries
Six Months Ended June 30, 2022 2021 Operating activities Net loss $ (20,255 ) $ (15,999 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,333 537 Operating lease right-of-use assets expense 2,649 — Foreign currency remeasurement loss (gain) 1,386 (134 ) Provision for doubtful accounts 519 (732 ) Stock-based compensation 18,678 17,799 Gain on disposal of property and equipment (45 ) (15 ) Deferred income taxes (37 ) (981 ) Change in value of earn-out and warrant liabilities (5,840 ) — Changes in operating assets and liabilities: Accounts receivable and long-term unbilled receivables 2,522 2,399 Prepaid expenses and other current assets 1,452 (1,994 ) Deferred contract costs and other assets (5,025 ) (1,955 ) Accounts payable, accrued expenses and other liabilities (6,654 ) (4,144 ) Deferred revenue 2,721 3,298 Net cash used in operating activities (6,596 ) (1,921 ) Investing activities Maturities of investments 1,093 — Purchases of investments (180,041 ) (423 ) Purchase of APXT shares — (1,631 ) Net assets acquired from business combinations and asset acquisitions, net of cash acquired (2,222 ) — Capitalization of internal use software (1,174 ) — Purchase of property and equipment (2,234 ) (897 ) Net cash used in investing activities (184,578 ) (2,951 ) Financing activities Payments of transaction fees — (1,872 ) Purchase of common stock (10,042 ) — Proceeds from stock option exercises 1,719 3,277 Proceeds from sale of common shares of subsidiary — 753 Repayments of finance leases (11 ) (14 ) Net cash provided by (used in) financing activities (8,334 ) 2,144 Effect of exchange rates on cash (3,647 ) (46 ) Net decrease in cash and cash equivalents (203,155 ) (2,774 ) Cash and cash equivalents at beginning of period 268,217 69,112 Cash and cash equivalents at end of period $ 65,062 $ 66,338 Supplemental disclosures of cash flow information Income taxes paid $ 420 $ 2,389 Noncash acquisition $ 5,635 $ —
AvePoint, Inc. and Subsidiaries
Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 Non-GAAP operating income GAAP operating loss $ (11,743 ) $ (11,203 ) $ (25,591 ) $ (17,134 ) Stock-based compensation expense 10,404 14,510 18,678 17,799 Non-GAAP operating income (loss) $ (1,339 ) $ 3,307 $ (6,913 ) $ 665 Non-GAAP operating margin -2.4 % 7.3 % -6.5 % 0.8 % Non-GAAP gross profit GAAP gross profit $ 40,274 $ 33,624 $ 75,935 $ 61,646 Stock-based compensation expense 703 272 1,281 362 Non-GAAP gross profit $ 40,977 $ 33,896 $ 77,216 $ 62,008 Non-GAAP gross margin 73.6 % 74.8 % 72.9 % 73.7 % Non-GAAP sales and marketing GAAP sales and marketing $ 27,174 $ 29,001 $ 54,228 $ 48,302 Stock-based compensation expense (3,396 ) (9,791 ) (5,858 ) (10,902 ) Non-GAAP sales and marketing $ 23,778 $ 19,210 $ 48,370 $ 37,400 Non-GAAP sales and marketing as a % of revenue 42.7 % 42.4 % 45.6 % 44.4 % Non-GAAP general and administrative GAAP general and administrative $ 16,322 $ 11,664 $ 31,864 $ 21,956 Stock-based compensation expense (5,281 ) (4,364 ) (9,765 ) (6,355 ) Non-GAAP general and administrative $ 11,041 $ 7,300 $ 22,099 $ 15,601 Non-GAAP general and administrative as a % of revenue 19.8 % 16.1 % 20.8 % 18.5 % Non-GAAP research and development GAAP research and development $ 7,892 $ 3,883 $ 14,294 $ 7,985 Stock-based compensation expense (1,024 ) (83 ) (1,774 ) (180 ) Non-GAAP research and development $ 6,868 $ 3,800 $ 12,520 $ 7,805 Non-GAAP research and development as a % of revenue 12.3 % 8.4 % 11.8 % 9.3 %
