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AvePoint Announces Fourth Quarter and Full Year 2022 Financial Results
Source: Nasdaq GlobeNewswire / 09 Mar 2023 15:05:01 America/Chicago
Full year SaaS revenue of $117.2 million, representing 37% year-over-year growth, 46% adjusted for constant currency
Full year total revenue of $232.3 million, representing 21% year-over-year growth, 29% adjusted for constant currency
Total ARR of $201.7 million, representing 27% year-over-year growth, 32% adjusted for FX impactJERSEY CITY, N.J., March 09, 2023 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ: AVPT), the most advanced platform to optimize SaaS operations and secure collaboration, today announced financial results for the fourth quarter and full year ended December 31, 2022.
“Our fourth quarter results were a strong close to 2022, highlighted by 32% ARR growth and 26% revenue growth, both adjusted for the impact of FX,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder of AvePoint. “Despite an uncertain macro environment, our strong topline performance underscores the ongoing need for organizations around the world to optimize and secure the digital workplace.”
“At the same time, we continue to aggressively manage expenses across the business, and we plan to show significant profitability improvements in 2023. We are excited for the many opportunities ahead of us to help companies rapidly reduce costs, improve productivity, and make more informed business decisions, and we look forward to discussing these and other strategic priorities at our first Investor Day on March 22nd.”
Fourth Quarter 2022 Financial Highlights
- Revenue: Total revenue was $63.6 million, up 18% from the fourth quarter of 2021 and up 26% year-over-year on a constant currency basis. Within total revenue, SaaS revenue was $33.0 million, up 36% from the fourth quarter of 2021 and up 46% year-over-year on a constant currency basis.
- Gross Profit: GAAP gross profit was $45.4 million, compared to $38.9 million for the fourth quarter of 2021. Non-GAAP gross profit was $46.1 million, compared to $39.6 million for the fourth quarter of 2021. Non-GAAP gross margin was 72.4%, compared to 73.5% for the fourth quarter of 2021.
- Operating Income/(Loss): GAAP operating loss was $(8.0) million, compared to $(7.7) million for the fourth quarter of 2021. Non-GAAP operating income was $1.4 million, compared to $1.4 million for the fourth quarter of 2021. Excluding the one-time expenses associated with the reduction in workforce the Company announced in December of 2022, non-GAAP operating income would have been $4.5 million.
Full Year 2022 Financial Highlights
- Revenue: Total revenue was $232.3 million, up 21% from the full year 2021 and up 29% year-over-year on a constant currency basis. Within total revenue, SaaS revenue was $117.2 million, up 37% from the full year 2021 and up 46% year-over-year on a constant currency basis.
- Gross Profit: GAAP gross profit was $167.2 million, compared to $139.2 million for the full year 2021. Non-GAAP gross profit was $169.9 million, compared to $142.7 million for the full year 2021. Non-GAAP gross margin was 73.1%, compared to 74.4% for the full year 2021.
- Operating Income/(Loss): GAAP operating loss was $(41.1) million, compared to $(53.5) million for the full year 2021. Non-GAAP operating loss was $(2.9) million, compared to non-GAAP operating income of $6.0 million for the full year 2021. Excluding the one-time expenses associated with the reduction in workforce the Company announced in December of 2022, non-GAAP operating income would have been $0.2 million.
- Cash and short-term investments: $229.8 million as of December 31, 2022.
Fourth Quarter 2022 Key Performance Indicators and Business Highlights
- ARR as of the end of 2022 was $201.7 million, up 27% year-over-year. Adjusted for FX, ARR grew 32%.
- Dollar-based net retention rate was 105% and was 108% adjusted for FX.
- Won a highly competitive bid for a substantial FinTech innovation project for our third-largest customer in Singapore, which will leverage our platform technology to ensure the regulatory framework is in place for a consortium of global financial institutions to detect and prevent money laundering while protecting client privacy.
Financial Outlook
For the first quarter of 2023, the Company expects:
- Total revenues of $57.5 million to $58.5 million, or 15% year-over-year growth at the midpoint.
- Non-GAAP operating loss of $(2.0) million to $(1.0) million.
For the full year 2023, the Company expects:
- Total ARR of $238.4 million to $244.4 million, or 20% year-over-year growth at the midpoint.
- Total revenues of $253.8 million to $260.8 million, or 11% year-over-year growth at the midpoint.
- Non-GAAP operating income of $12.0 million to $15.0 million.
Quarterly Conference Call
AvePoint will host a conference call today, March 09, 2023, to review its fourth quarter and full year 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 passcode for the call is 4575329. 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 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. 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 and the amortization of intangible assets. AvePoint believes the presentation of its non-GAAP financial measures provides a better representation as to the overall operating performance of the company. 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.
Investor Contact
AvePoint
Jamie Arestia
ir@avepoint.com
(551) 220-5654Media Contact
AvePoint
Nicole Caci
pr@avepoint.com
(201) 201-8143AvePoint, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)Three Months Ended Year Ended December 31, December 31, 2022 2021 2022 2021 Revenue: SaaS $ 33,049 $ 24,325 $ 117,180 $ 85,580 Term license and support 14,713 13,678 57,214 50,970 Services 12,052 10,558 41,283 31,919 Maintenance 3,606 4,862 15,868 21,022 Perpetual license 188 415 794 2,418 Total revenue 63,608 53,838 232,339 191,909 Cost of revenue: SaaS 7,966 5,169 26,617 19,039 Term license and support 396 236 1,969 950 Services 9,707 9,198 35,629 30,726 Maintenance 169 341 908 1,949 Total cost of revenue 18,238 14,944 65,123 52,664 Gross profit 45,370 38,894 167,216 139,245 Operating expenses: Sales and marketing 28,376 27,024 109,805 100,512 General and administrative 16,645 15,035 64,874 59,221 Research and development 7,272 4,132 30,519 31,765 Depreciation and amortization 1,125 375 3,084 1,238 Total operating expenses 53,418 46,566 208,282 192,736 Loss from operations (8,048 ) (7,672 ) (41,066 ) (53,491 ) (Loss) gain on earn-out and warrant liabilities (2,351 ) 7,583 4,497 21,233 Interest (expense) income, net (90 ) 22 (40 ) 102 Other income (expense), net 3,781 (332 ) 2,959 (632 ) Loss before income taxes (6,708 ) (399 ) (33,650 ) (32,788 ) Income tax expense 4,939 7,090 5,038 457 Net loss $ (11,647 ) (7,489 ) $ (38,688 ) $ (33,245 ) Net income attributable to and accretion of redeemable noncontrolling interest (1,072 ) (561 ) (2,942 ) (1,974 ) Net loss attributable to AvePoint, Inc. $ (12,719 ) (8,050 ) $ (41,630 ) $ (35,219 ) Deemed dividends on preferred stock — — — (32,928 ) Net loss available to common shareholders $ (12,719 ) (8,050 ) $ (41,630 ) $ (68,147 ) Basic and diluted loss per share $ (0.07 ) (0.04 ) $ (0.23 ) $ (0.48 ) Basic and diluted shares used in computing loss per share 181,795 182,133 181,957 141,596 AvePoint, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except par value)
(Unaudited)December 31, December 31, 2022 2021 Assets Current assets: Cash and cash equivalents $ 227,188 $ 268,217 Short-term investments 2,620 2,411 Accounts receivable, net of allowance of $725 and $838 as of December 31, 2022 and December 31, 2021, respectively 66,474 55,067 Prepaid expenses and other current assets 10,013 8,461 Total current assets 306,295 334,156 Property and equipment, net 5,537 3,922 Goodwill 18,904 — Intangible assets, net 11,079 — Operating lease right-of-use assets 15,855 — Deferred contract costs 48,553 38,926 Other assets 9,310 11,734 Total assets $ 415,533 $ 388,738 Liabilities, mezzanine equity, and stockholders’ equity Current liabilities: Accounts payable $ 1,519 $ 1,824 Accrued expenses and other liabilities 47,784 35,062 Current portion of deferred revenue 93,405 74,294 Total current liabilities 142,708 111,180 Long-term operating lease liabilities 11,348 — Long-term portion of deferred revenue 8,085 8,038 Earn-out shares liabilities 6,631 10,012 Other non-current liabilities 3,607 3,943 Total liabilities 172,379 133,173 Commitments and contingencies Mezzanine equity Redeemable noncontrolling interest 14,007 5,210 Total mezzanine equity 14,007 5,210 Stockholders’ equity Common stock, $0.0001 par value; 1,000,000 shares authorized, 185,278 and 181,822 shares issued and outstanding 19 18 Additional paid-in capital 665,715 625,056 Treasury stock (21,666 ) (1,739 ) Accumulated other comprehensive income 2,006 2,317 Accumulated deficit (416,927 ) (375,297 ) Total stockholders’ equity 229,147 250,355 Total liabilities, mezzanine equity, and stockholders’ equity $ 415,533 $ 388,738 AvePoint, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)Year Ended December 31, 2022 2021 Operating activities Net loss $ (38,688 ) $ (33,245 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 3,494 1,238 Operating lease right-of-use assets expense 5,945 — Foreign currency remeasurement loss 835 1,308 Stock-based compensation 37,218 59,508 Deferred income taxes 3,701 (175 ) Other (607 ) (755 ) Change in value of earn-out and warrant liabilities (4,402 ) (21,233 ) Changes in operating assets and liabilities: Accounts receivable (14,388 ) (9,012 ) Prepaid expenses and other current assets (2,108 ) (5,914 ) Deferred contract costs and other assets (9,596 ) (8,121 ) Accounts payable, accrued expenses, operating lease liabilities and other liabilities (2,553 ) 10,626 Deferred revenue 20,375 10,805 Net cash (used in) provided by operating activities (774 ) 5,030 Investing activities Maturities of investments 183,554 — Purchases of investments (180,969 ) (916 ) Net assets acquired from business combinations and asset acquisitions, net of cash acquired (18,572 ) — Capitalization of internal use software (1,612 ) — Purchase of property and equipment (3,853 ) (2,461 ) Net cash used in investing activities (21,452 ) (3,377 ) Financing activities Proceeds from recapitalization of Apex shares, net of transaction fees of $49,990 — 441,573 Redemption of redeemable convertible preferred stock — (130,925 ) Redemption of Legacy AvePoint common stock — (106,169 ) Purchase of common stock (19,927 ) (1,628 ) Payment of net cash settlement for management options — (7,530 ) Proceeds from stock option exercises 2,818 5,566 Proceeds from sale of common shares of subsidiary — 753 Repayments of finance leases (39 ) (25 ) Payments of transaction fees by Legacy AvePoint — (2,998 ) Net cash (used in) provided by financing activities (17,148 ) 198,617 Effect of exchange rates on cash (1,655 ) (1,165 ) Net (decrease) increase in cash and cash equivalents (41,029 ) 199,105 Cash and cash equivalents at beginning of period 268,217 69,112 Cash and cash equivalents at end of period $ 227,188 $ 268,217 Supplemental disclosures of cash flow information Income taxes paid $ 3,320 $ 4,037 Noncash acquisition $ 5,635 $ — AvePoint, Inc. and Subsidiaries
Non-GAAP Reconciliations
(In thousands)
(Unaudited)Three Months Ended Year Ended December 31, December 31, 2022 2021 2022 2021 Non-GAAP operating income GAAP operating loss $ (8,048 ) $ (7,672 ) $ (41,066 ) $ (53,491 ) Stock-based compensation expense 8,931 9,033 37,218 59,508 Amortization of acquired intangible assets 526 — 955 — Non-GAAP operating income (loss) $ 1,409 $ 1,361 $ (2,893 ) $ 6,017 Non-GAAP operating margin 2.2 % 2.5 % -1.2 % 3.1 % Non-GAAP gross profit GAAP gross profit $ 45,370 $ 38,894 $ 167,216 $ 139,245 Stock-based compensation expense 692 687 2,640 3,477 Non-GAAP gross profit $ 46,062 $ 39,581 $ 169,856 $ 142,722 Non-GAAP gross margin 72.4 % 73.5 % 73.1 % 74.4 % Non-GAAP sales and marketing GAAP sales and marketing $ 28,376 $ 27,024 $ 109,805 $ 100,512 Stock-based compensation expense (2,688 ) (2,833 ) (11,393 ) (15,906 ) Non-GAAP sales and marketing $ 25,688 $ 24,191 $ 98,412 $ 84,606 Non-GAAP sales and marketing as a % of revenue 40.4 % 44.9 % 42.4 % 44.1 % Non-GAAP general and administrative GAAP general and administrative $ 16,645 $ 15,035 $ 64,874 $ 59,221 Stock-based compensation expense (4,573 ) (4,688 ) (19,398 ) (24,063 ) Non-GAAP general and administrative $ 12,072 $ 10,347 $ 45,476 $ 35,158 Non-GAAP general and administrative as a % of revenue 19.0 % 19.2 % 19.6 % 18.3 % Non-GAAP research and development GAAP research and development $ 7,272 $ 4,132 $ 30,519 $ 31,765 Stock-based compensation expense (978 ) (825 ) (3,787 ) (16,062 ) Non-GAAP research and development $ 6,294 $ 3,307 $ 26,732 $ 15,703 Non-GAAP research and development as a % of revenue 9.9 % 6.1 % 11.5 % 8.2 % 
- Revenue: Total revenue was $63.6 million, up 18% from the fourth quarter of 2021 and up 26% year-over-year on a constant currency basis. Within total revenue, SaaS revenue was $33.0 million, up 36% from the fourth quarter of 2021 and up 46% year-over-year on a constant currency basis.