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AvePoint Announces Third Quarter 2023 Financial Results

Third quarter SaaS revenue of $41.9 million, representing 40% year-over-year growth
Third quarter Total revenue of $72.8 million, representing 16% year-over-year growth
Total ARR of $250.6 million, representing 23% year-over-year growth, 25% adjusted for FX

JERSEY CITY, N.J., Nov. 09, 2023 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ: AVPT), the most advanced platform to optimize SaaS operations and secure collaboration, today announced financial results for the third quarter ended September 30, 2023. 

“The third quarter was another strong result for AvePoint, as we again meaningfully outperformed our guidance for both total revenues and non-GAAP operating income, while delivering total ARR growth of 25%,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “We see tremendous ambition from companies to leverage generative AI for competitive advantage and value creation, but for their efforts to succeed, they must first establish a robust data management strategy. This is the core business problem AvePoint has been solving for over 20 years and positions us well to be a key enabler of the generative AI solutions companies implement going forward. We are excited for a strong close to 2023 and for the many opportunities we see ahead of us.”

Third Quarter 2023 Financial Highlights

  • Revenue: Total revenue was $72.8 million, up 16% from the third quarter of 2022. Within total revenue, SaaS revenue was $41.9 million, up 40% from the third quarter of 2022.

  • Gross Profit: GAAP gross profit was $52.6 million, compared to $45.6 million for the third quarter of 2022. Non-GAAP gross profit was $53.7 million, compared to $46.4 million for the third quarter of 2022. Non-GAAP gross margin was 73.7%, compared to 74.0% for the third quarter of 2022.

  • Operating Income/(Loss): GAAP operating loss was $(0.3) million, compared to $(7.4) million for the third quarter of 2022. Non-GAAP operating income was $9.3 million, compared to $2.4 million for the third quarter of 2022.

  • Cash and short-term investments: $209.3 million as of September 30, 2023.

Third Quarter 2023 Key Performance Indicators and Business Highlights

  • ARR as of September 30, 2023 was $250.6 million, up 23% year-over-year. Adjusted for FX, ARR grew 25%.

  • Adjusted for FX, dollar-based gross retention rate was 87%, while dollar-based net retention rate was 108%. On an as-reported basis, dollar-based gross retention rate was 85%, while dollar-based net retention rate was 107%.

  • Introduced AvePoint EnPower, which helps organizations more proactively analyze, govern and optimize their SaaS management and operations across Microsoft 365 and Power Platform, in turn enabling greater operational efficiency and automated governance.

  • Announced certification against the ISO information security management system audit using the 27701:2019 framework for the first time, and the 27001:2013 and 27017:2015 frameworks for the second consecutive year, demonstrating the Company’s prioritization of security and privacy for AvePoint and its customers.

Financial Outlook
The Company is again raising its full year outlook for total ARR, total revenues and non-GAAP operating income.

For the fourth quarter of 2023, the Company expects:

  • Total revenues of $70.5 million to $72.5 million, or year-over-year growth of 12% at the midpoint.
  • Non-GAAP operating income of $8.1 million to $9.1 million.

For the full year 2023, the Company now expects:

  • Total ARR of $261 million to $263 million, or year-over-year growth of 22% at the midpoint.
  • Total revenues of $267.7 million to $269.7 million, or year-over-year growth of 16% at the midpoint.
  • Non-GAAP operating income of $20.0 million to $21.0 million.

Quarterly Conference Call

AvePoint will host a conference call today, November 09, 2023, to review its third quarter 2023 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 3803378. Investors can also join by webcast by visiting 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. Over 17,000 customers worldwide rely on our solutions to modernize the digital workplace across Microsoft, Google, Salesforce and other collaboration environments. AvePoint's global channel partner program includes over 3,500 managed service providers, value added resellers and systems integrators, with our solutions available in more than 100 cloud marketplaces. To learn more, visit  

Emerging Growth Company

AvePoint is considered an emerging growth company. Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under Section 21E of the Securities Exchange Act of 1934, as amended) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies, but any such election to opt out is irrevocable. AvePoint elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, AvePoint, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.

Because the market value of our common stock held by non-affiliates exceeded $700.0 million as of June 30, 2023, AvePoint will meet the conditions to be deemed a "large-accelerated filer" as of December 31, 2023, and will consequently no longer be an emerging growth company as of that date. AvePoint will be subject to the regulations applicable to all large-accelerated filers as of December 31, 2023.

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 acquired intangible assets. The company believes the presentation of its non-GAAP financial measures provides a better representation as to its overall operating 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 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, 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. Unless the context otherwise indicates, references in this press release to the terms “AvePoint”, “the Company”, “we”, “our” and “us” refer to AvePoint, Inc. and its subsidiaries.

Investor Contact

Jamie Arestia
(551) 220-5654

Media Contact

Nicole Caci  
(201) 201-8143

AvePoint, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
  Three Months Ended  Nine Months Ended 
  September 30,  September 30, 
  2023  2022  2023  2022 
SaaS $41,910  $29,959  $115,701  $84,131 
Term license and support  16,293   18,288   40,474   42,501 
Services  11,194   10,458   31,007   29,231 
Maintenance  3,363   4,034   10,019   12,868 
Total revenue  72,760   62,739   197,201   168,731 
Cost of revenue:                
SaaS  9,561   7,164   26,586   18,934 
Term license and support  484   524   1,441   1,600 
Services  9,922   9,218   29,231   26,204 
Maintenance  189   192   584   748 
Total cost of revenue  20,156   17,098   57,842   47,486 
Gross profit  52,604   45,641   139,359   121,245 
Operating expenses:                
Sales and marketing  28,436   27,425   82,978   82,002 
General and administrative  15,838   16,429   45,679   48,411 
Research and development  8,643   9,214   26,931   23,850 
Total operating expenses  52,917   53,068   155,588   154,263 
Loss from operations  (313)  (7,427)  (16,229)  (33,018)
(Loss) gain on earn-out and warrant liabilities  (2,785)  913   (6,921)  6,848 
Interest income, net  232   16   843   50 
Other income (expense), net  1,477   48   4,502   (822)
Loss before income taxes  (1,389)  (6,450)  (17,805)  (26,942)
Income tax expense  2,841   336   8,132   99 
Net loss $(4,230) $(6,786) $(25,937) $(27,041)
Net loss (income) attributable to and accretion of redeemable noncontrolling interest  18   (626)  (57)  (1,870)
Net loss attributable to AvePoint, Inc. $(4,212) $(7,412) $(25,994) $(28,911)
Net loss available to common shareholders $(4,212) $(7,412) $(25,994) $(28,911)
Basic and diluted loss per share $(0.02) $(0.04) $(0.14) $(0.16)
Basic and diluted shares used in computing loss per share  181,769   180,732   182,630   179,563 

AvePoint, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except par value)
  September 30,  December 31, 
  2023  2022 
Current assets:        
Cash and cash equivalents $205,786  $227,188 
Short-term investments  3,478   2,620 
Accounts receivable, net of allowance for doubtful accounts of $1,176 and $725 as of September 30, 2023 and December 31, 2022, respectively  69,329   66,474 
Prepaid expenses and other current assets  8,276   10,013 
Total current assets  286,869   306,295 
Property and equipment, net  4,983   5,537 
Goodwill  18,595   18,904 
Intangible assets, net  10,427   11,079 
Operating lease right-of-use assets  14,547   15,855 
Deferred contract costs  50,232   48,553 
Other assets  12,558   9,310 
Total assets $398,211  $415,533 
Liabilities, mezzanine equity, and stockholders’ equity        
Current liabilities:        
Accounts payable $1,855  $1,519 
Accrued expenses and other liabilities  44,538   47,784 
Current portion of deferred revenue  102,433   93,405 
Total current liabilities  148,826   142,708 
Long-term operating lease liabilities  9,982   11,348 
Long-term portion of deferred revenue  6,296   8,085 
Earn-out shares liabilities  13,822   6,631 
Other non-current liabilities  5,183   3,607 
Total liabilities  184,109   172,379 
Commitments and contingencies        
Mezzanine equity        
Redeemable noncontrolling interest  13,991   14,007 
Total mezzanine equity  13,991   14,007 
Stockholders’ equity        
Common stock, $0.0001 par value; 1,000,000 shares authorized, 183,996 and 185,278 shares issued and outstanding  18   19 
Additional paid-in capital  659,892   665,715 
Treasury stock     (21,666)
Accumulated other comprehensive income  2,307   2,006 
Accumulated deficit  (462,106)  (416,927)
Total stockholders’ equity  200,111   229,147 
Total liabilities, mezzanine equity, and stockholders’ equity $398,211  $415,533 

AvePoint, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
  Nine Months Ended 
  September 30, 
  2023  2022 
Operating activities        
Net loss $(25,937) $(27,041)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:        
Depreciation and amortization  3,439   2,255 
Operating lease right-of-use assets expense  5,294   4,602 
Foreign currency remeasurement loss  763   3,026 
Stock-based compensation  26,975   28,287 
Deferred income taxes  (240)  (154)
Other  725   1,040 
Change in value of earn-out and warrant liabilities  6,921   (6,754)
Changes in operating assets and liabilities:        
Accounts receivable  (4,633)  (6,661)
Prepaid expenses and other current assets  1,663   (1,486)
Deferred contract costs and other assets  (5,637)  (8,436)
Accounts payable, accrued expenses, operating lease liabilities and other liabilities  (5,331)  (4,227)
Deferred revenue  9,282   8,656 
Net cash provided by (used in) operating activities  13,284   (6,893)
Investing activities        
Maturities of investments  1,292   180,837 
Purchases of investments  (2,050)  (180,495)
Cash paid in business combinations and asset acquisitions, net of cash acquired     (18,574)
Capitalization of internal-use software  (988)  (1,165)
Purchase of property and equipment  (1,478)  (3,420)
Investment in notes  (1,000)   
Net cash used in investing activities  (4,224)  (22,817)
Financing activities        
Repurchase of common stock  (33,644)  (19,554)
Proceeds from stock option exercises  3,865   1,817 
Repayments of finance leases  (30)  (23)
Net cash used in financing activities  (29,809)  (17,760)
Effect of exchange rates on cash  (653)  (2,966)
Net decrease in cash and cash equivalents  (21,402)  (50,436)
Cash and cash equivalents at beginning of period  227,188   268,217 
Cash and cash equivalents at end of period $205,786  $217,781 
Supplemental disclosures of cash flow information        
Income taxes paid $5,794  $421 
Contingent consideration in business combinations $  $5,635 

AvePoint, Inc.
Non-GAAP Reconciliations
(In thousands)
  Three Months Ended  Nine Months Ended 
  September 30,  September 30, 
  2023  2022  2023  2022 
Non-GAAP operating income                
GAAP operating loss $(313) $(7,427) $(16,229) $(33,018)
Stock-based compensation expense  9,285   9,609   26,975   28,287 
Amortization of acquired intangible assets  353   229   1,106   428 
Non-GAAP operating income (loss) $9,325  $2,411  $11,852  $(4,303)
Non-GAAP operating margin  12.8%  3.8%  6.0%  -2.6%
Non-GAAP gross profit                
GAAP gross profit $52,604  $45,641  $139,359  $121,245 
Stock-based compensation expense  806   667   2,292   1,948 
Amortization of acquired intangible assets  241   133   725   224 
Non-GAAP gross profit $53,651  $46,441  $142,376  $123,417 
Non-GAAP gross margin  73.7%  74.0%  72.2%  73.1%
Non-GAAP sales and marketing                
GAAP sales and marketing $28,436  $27,425  $82,978  $82,002 
Stock-based compensation expense  (2,358)  (2,847)  (7,267)  (8,705)
Amortization of acquired intangible assets  (112)  (96)  (381)  (204)
Non-GAAP sales and marketing $25,966  $24,482  $75,330  $73,093 
Non-GAAP sales and marketing as a % of revenue  35.7%  39.0%  38.2%  43.3%
Non-GAAP general and administrative                
GAAP general and administrative $15,838  $16,429  $45,679  $48,411 
Stock-based compensation expense  (5,264)  (5,060)  (14,551)  (14,825)
Non-GAAP general and administrative $10,574  $11,369  $31,128  $33,586 
Non-GAAP general and administrative as a % of revenue  14.5%  18.1%  15.8%  19.9%
Non-GAAP research and development                
GAAP research and development $8,643  $9,214  $26,931  $23,850 
Stock-based compensation expense  (857)  (1,035)  (2,865)  (2,809)
Non-GAAP research and development $7,786  $8,179  $24,066  $21,041 
Non-GAAP research and development as a % of revenue  10.7%  13.0%  12.2%  12.5%

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