Full year SaaS revenue of $85.6 million, up 64% year-over-year
Total ARR of $159.2 million, up 34% year-over-year
Cloud user base exceeds 9 million
JERSEY CITY, N.J., March 17, 2022 (GLOBE NEWSWIRE) — AvePoint (NASDAQ: AVPT), the most advanced SaaS and data management solutions provider, today announced financial results for the fourth quarter and full year ended December 31, 2021.
“AvePoint’s fourth quarter performance was a solid finish to our first year as a public company, which was highlighted by 64% SaaS revenue growth and 34% ARR growth, with an additional 36% growth in customers with ARR above 100k,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder, AvePoint. “As enterprises continue their long-term shift to SaaS based platforms, and we see increased application usage in 2022 and beyond, we believe we are well positioned to capitalize on this massive opportunity, which will require the industry leading data management and collaboration security solutions that AvePoint offers. I’m incredibly thankful to our team for their continued focus on expanding our unique product offerings, enhancing our channel business, and delivering exceptional service to our existing multi-cloud customers.”
Fourth Quarter 2021 Financial Highlights
- Revenue: Total revenue for the fourth quarter of 2021 was $53.8 million, up 17% from the fourth quarter of 2020. Within total revenue, SaaS revenue was $24.3 million, up 52% from the fourth quarter of 2020, and term license and support revenue was $13.7 million, a decline of 13% due to an adjustment in the timing of revenue recognition on term license contracts, which resulted in the deferral of an additional $4.4 million of revenue into future periods. Excluding the effects of this adjustment, total revenue growth would have been 26% and term license and support growth would have been 15%.
- Gross Profit: Gross profit for the fourth quarter of 2021 was $38.9 million, compared to $35.5 million for the fourth quarter of 2020. Gross margin for the fourth quarter of 2021 was 72.2%, compared to 77.0% for the fourth quarter of 2020. Non-GAAP gross profit for the fourth quarter of 2021 was $39.6 million, compared to $35.8 million for the fourth quarter of 2020. Non-GAAP gross margin was 73.5% for the fourth quarter of 2021, compared to 77.6% for the fourth quarter of 2020.
- Operating Income/(Loss): Operating loss for the fourth quarter of 2021 was $(7.7) million, compared to $(10.8) million for the fourth quarter of 2020. Non-GAAP operating income for the fourth quarter of 2021 was $1.4 million, compared to $6.7 million for the fourth quarter of 2020.
Full Year 2021 Financial Highlights
- Revenue: Total revenue for the full year 2021 was $191.9 million, up 27% from 2020. Within total revenue, SaaS revenue was $85.6 million, up 64% from 2020, and term license and support revenue was $51.0 million, up 31% from 2020. Adjusting for the change in the timing of revenue recognition of $4.4 million, total revenue would have been up 30% and term license and support revenue would have increased 42% from 2020.
- Gross Profit: Gross profit for the full year of 2021 was $139.2 million, compared to $111.2 million for 2020. Gross margin for the full year 2021 was 72.6%, compared to 73.4% for 2020. Non-GAAP gross profit for the full year 2021 was $142.7 million, compared to $111.8 million for 2020. Non-GAAP gross margin was 74.4% for the full year 2021, compared to 73.8% for 2020.
- Operating Income/(Loss): Operating loss for the full year 2021 was $(53.5) million, compared to $(15.4) million for 2020. Non-GAAP operating income for the full year 2021 was $6.0 million, compared to $18.3 million for 2020.
- Free cash flow of $3.1 million for the full year 2021 and $271 million of cash and short-term investments as of the end of the year.
Fourth Quarter Key Highlights
- Grew total ARR 34% year-over-year to $159.2 million.
- Increased dollar-based net retention rate to 110%, up 3 percentage points year-over-year.
- Eclipsed 2,800 total channel partners in 2021, of which, roughly three quarters are managed service providers (MSPs). AvePoint’s channel presence has further expanded to include over 100 cloud marketplaces and distributors across 7 continents.
- Expanded cloud user base to 9.4 million, up 34% from 7.0 million as of December 31, 2020.
Share Repurchase Program
AvePoint’s Board of Directors has authorized a new share repurchase program for AvePoint to buy back its outstanding common shares. Under the share repurchase program, AvePoint has the authority to buy up to a maximum of $150 million worth of shares, over the next three years, via acquisitions in the open market or privately negotiated transactions. AvePoint is not obligated to make any purchases and the program may be suspended or discontinued at any time.
Financial Outlook
AvePoint is providing guidance for its first quarter and full year 2022 as follows:
- First Quarter 2022 Guidance: Total revenue is expected to be in the range of $48.0 million to $49.0 million or approximately 25% year-over-year growth. Non-GAAP operating loss is expected to be in the range of $(6.0) to $(6.5) million.
- Full Year 2022 Guidance: Total revenue is expected to be in the range of $236.0 million to $242.0 million or approximately 25% 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, March 17, 2022, to review its fourth quarter and full year 2021 financial results and to discuss its financial outlook. The call is scheduled to begin at 4:30pm ET. Investors are invited to join the 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 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:
ICR for AvePoint, Inc.
Marc P. Griffin
ir@avepoint.com
646-277-1290
Media Contact:
AvePoint, Inc.
Nicole Caci
pr@avepoint.com
201-201-8143
| AvePoint, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) |
||||||||||||||||
| For the Three Months Ended |
For the Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue: | ||||||||||||||||
| SaaS | $ | 24,325 | $ | 16,040 | $ | 85,580 | $ | 52,074 | ||||||||
| Term license and support | 13,678 | 15,677 | 50,970 | 38,949 | ||||||||||||
| Services | 10,558 | 7,967 | 31,919 | 34,140 | ||||||||||||
| Maintenance | 4,862 | 5,625 | 21,022 | 23,462 | ||||||||||||
| Perpetual license | 415 | 813 | 2,418 | 2,908 | ||||||||||||
| Total revenue | 53,838 | 46,122 | 191,909 | 151,533 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| SaaS | 5,169 | 3,194 | 19,039 | 11,050 | ||||||||||||
| Term license and support | 236 | 673 | 950 | 1,930 | ||||||||||||
| Services | 9,198 | 6,484 | 30,726 | 26,089 | ||||||||||||
| Maintenance | 341 | 243 | 1,949 | 1,221 | ||||||||||||
| Total cost of revenue | 14,944 | 10,594 | 52,664 | 40,290 | ||||||||||||
| Gross profit | 38,894 | 35,528 | 139,245 | 111,243 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 27,024 | 26,664 | 100,512 | 76,545 | ||||||||||||
| General and administrative | 15,035 | 15,954 | 59,221 | 36,872 | ||||||||||||
| Research and development | 4,132 | 3,444 | 31,765 | 12,204 | ||||||||||||
| Depreciation and amortization | 375 | 259 | 1,238 | 1,059 | ||||||||||||
| Total operating expenses | 46,566 | 46,321 | 192,736 | 126,680 | ||||||||||||
| Loss from operations | (7,672 | ) | (10,793 | ) | (53,491 | ) | (15,437 | ) | ||||||||
| Gain on earn-out and warrant liabilities | 7,583 | — | 21,233 | — | ||||||||||||
| Interest income, net | 22 | 15 | 102 | 41 | ||||||||||||
| Other expense, net | (332 | ) | (187 | ) | (632 | ) | (511 | ) | ||||||||
| Loss before income taxes | (399 | ) | (10,965 | ) | (32,788 | ) | (15,907 | ) | ||||||||
| Income tax expense | 7,090 | 1,134 | 457 | 1,062 | ||||||||||||
| Net loss | $ | (7,489 | ) | $ | (12,099 | ) | $ | (33,245 | ) | $ | (16,969 | ) | ||||
| Net loss attributable to and accretion of redeemable noncontrolling interest | (561 | ) | (27 | ) | (1,974 | ) | (27 | ) | ||||||||
| Net loss attributable to AvePoint, Inc. | $ | (8,050 | ) | $ | (12,126 | ) | $ | (35,219 | ) | $ | (16,996 | ) | ||||
| Deemed dividends on preferred stock | — | (13,033 | ) | (32,928 | ) | (34,446 | ) | |||||||||
| Net loss available to common shareholders | $ | (8,050 | ) | $ | (25,159 | ) | $ | (68,147 | ) | $ | (51,442 | ) | ||||
| Loss per share: | ||||||||||||||||
| Basic | $ | (0.04 | ) | $ | (0.26 | ) | $ | (0.48 | ) | $ | (0.57 | ) | ||||
| Diluted | $ | (0.04 | ) | $ | (0.26 | ) | $ | (0.48 | ) | $ | (0.57 | ) | ||||
| Shares used in computing loss per share: | ||||||||||||||||
| Basic | 182,133 | 98,107 | 141,596 | 89,638 | ||||||||||||
| Diluted | 182,133 | 98,107 | 141,596 | 89,638 | ||||||||||||
| AvePoint, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In thousands, except par value) (Unaudited) |
||||||||
| December 31, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 268,217 | $ | 69,112 | ||||
| Short-term investments | 2,411 | 992 | ||||||
| Accounts receivable, net of allowance of $838 and $1,767 at December 31, 2021 and December 31, 2020, respectively |
59,223 | 48,250 | ||||||
| Prepaid expenses and other current assets | 6,573 | 2,343 | ||||||
| Total current assets | 336,424 | 120,697 | ||||||
| Property and equipment, net | 3,922 | 2,663 | ||||||
| Deferred contract costs | 38,926 | 31,943 | ||||||
| Long-term unbilled receivables | 8,049 | 5,499 | ||||||
| Other assets | 7,354 | 8,252 | ||||||
| Total assets | $ | 394,675 | $ | 169,054 | ||||
| Liabilities, mezzanine equity, and stockholders’ deficiency | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,824 | $ | 774 | ||||
| Accrued expenses and other liabilities | 35,062 | 26,245 | ||||||
| Current portion of deferred revenue | 79,714 | 65,203 | ||||||
| Total current liabilities | 116,600 | 92,222 | ||||||
| Long-term portion of deferred revenue | 8,555 | 9,485 | ||||||
| Share-based awards classified as liabilities | — | 43,502 | ||||||
| Earn-out shares liabilities | 10,012 | — | ||||||
| Other non-current liabilities | 3,943 | 3,658 | ||||||
| Total liabilities | 139,110 | 148,867 | ||||||
| Commitments and contingencies (Note 11) | ||||||||
| Mezzanine equity | ||||||||
| Redeemable convertible preferred stock, $0.0001 par value; 94,695 shares authorized, 42,001 shares issued and outstanding with aggregate liquidation preference of $403,361 at December 31, 2020 |
— | 183,390 | ||||||
| Redemption value of common shares | — | 25,074 | ||||||
| Share-based awards classified as mezzanine equity | — | 1,489 | ||||||
| Redeemable noncontrolling interest | 5,210 | 3,061 | ||||||
| Total mezzanine equity | 5,210 | 213,014 | ||||||
| Stockholders’ deficiency | ||||||||
| Common stock, $0.0001 par value; 1,000,000 and 243,360 shares authorized, 181,822 and 100,068 shares issued and outstanding, at December 31, 2021 and December 31, 2020, respectively |
18 | 12 | ||||||
| Additional paid-in capital | 625,056 | 105,159 | ||||||
| Treasury stock | (1,739 | ) | — | |||||
| Accumulated other comprehensive income | 2,317 | 1,791 | ||||||
| Accumulated deficit | (375,297 | ) | (299,789 | ) | ||||
| Total stockholders’ equity (deficiency) | 250,355 | (192,827 | ) | |||||
| Total liabilities, mezzanine equity, and stockholders’ equity (deficiency) | $ | 394,675 | $ | 169,054 | ||||
| AvePoint, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
||||||||
| For the Year Ended | ||||||||
| December 31, | ||||||||
| 2021 | 2020 | |||||||
| Operating activities | ||||||||
| Net loss | $ | (33,245 | ) | $ | (16,969 | ) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
| Depreciation and amortization | 1,238 | 1,059 | ||||||
| Foreign currency remeasurement loss (gain) | 1,308 | (378 | ) | |||||
| Provision for doubtful accounts | (740 | ) | 690 | |||||
| Stock-based compensation | 59,508 | 33,767 | ||||||
| Loss (gain) on disposal of property and equipment | (15 | ) | 80 | |||||
| Deferred income taxes | (1,694 | ) | (433 | ) | ||||
| Change in value of earn-out and warrant liabilities | (21,233 | ) | — | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable and long-term unbilled receivables | (14,949 | ) | (8,946 | ) | ||||
| Prepaid expenses and other current assets | (4,026 | ) | 1,204 | |||||
| Deferred contract costs and other assets | (7,606 | ) | (3,236 | ) | ||||
| Accounts payable, accrued expenses and other liabilities | 10,257 | 971 | ||||||
| Deferred revenue | 16,742 | 11,311 | ||||||
| Net cash provided by operating activities | 5,545 | 19,120 | ||||||
| Investing activities | ||||||||
| Maturity (purchase) of short-term investments | (1,431 | ) | 2,391 | |||||
| Purchase of property and equipment | (2,461 | ) | (1,023 | ) | ||||
| Net cash provided by (used in) investing activities | (3,892 | ) | 1,368 | |||||
| Financing activities | ||||||||
| Proceeds from recapitalization of Apex shares | 491,563 | — | ||||||
| Payments of transaction fees | (49,990 | ) | — | |||||
| Redemption of redeemable convertible preferred stock | (130,925 | ) | (33,712 | ) | ||||
| Redemption of Legacy AvePoint common stock | (106,169 | ) | — | |||||
| Payments of transaction fees by Legacy AvePoint | (2,998 | ) | (2,089 | ) | ||||
| Purchase of treasury stock | (1,628 | ) | — | |||||
| Payment of net cash settlement for management options | (7,530 | ) | — | |||||
| Proceeds from stock option exercises | 5,566 | 612 | ||||||
| Proceeds from sale of common shares of subsidiary | 753 | 7,505 | ||||||
| Repayments of capital leases | (25 | ) | (49 | ) | ||||
| Payments of debt issuance costs | — | (300 | ) | |||||
| Proceeds from issuance of Common stock, net of issuance costs | — | 58,669 | ||||||
| Collection of promissory note | — | 284 | ||||||
| Collection of non-recourse promissory note | — | 4,639 | ||||||
| Net cash provided by financing activities | 198,617 | 35,559 | ||||||
| Effect of exchange rates on cash | (1,165 | ) | 903 | |||||
| Net increase in cash and cash equivalents | 199,105 | 56,950 | ||||||
| Cash and cash equivalents at beginning of period | 69,112 | 12,162 | ||||||
| Cash and cash equivalents at end of period | $ | 268,217 | $ | 69,112 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Cash received (paid) for: | ||||||||
| Interest | $ | 102 | $ | — | ||||
| Income taxes | $ | (3,430 | ) | $ | 1,068 | |||
| Non-cash investing and financing activities | ||||||||
| Issuance of common shares in exchange for issuance cost | $ | — | $ | 2,408 | ||||
| Property and equipment acquired under capital leases | $ | — | $ | 29 | ||||
| AvePoint, Inc. and Subsidiaries Non-GAAP Reconciliations (In thousands) (Unaudited) |
||||||||||||||||
| For the Three Months Ended | For the Year Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Non-GAAP operating income | ||||||||||||||||
| GAAP operating income | $ | (7,672 | ) | $ | (10,793 | ) | $ | (53,491 | ) | $ | (15,437 | ) | ||||
| Stock-based compensation expense | 9,033 | 17,532 | 59,508 | 33,767 | ||||||||||||
| Non-GAAP operating income | $ | 1,361 | $ | 6,739 | $ | 6,017 | $ | 18,330 | ||||||||
| Non-GAAP operating margin | 2.5 | % | 14.6 | % | 3.1 | % | 12.1 | % | ||||||||
| Non-GAAP gross profit | ||||||||||||||||
| GAAP gross profit | $ | 38,894 | $ | 35,528 | $ | 139,245 | $ | 111,243 | ||||||||
| Stock-based compensation expense | 687 | 276 | 3,477 | 592 | ||||||||||||
| Non-GAAP gross profit | $ | 39,581 | $ | 35,804 | $ | 142,722 | $ | 111,835 | ||||||||
| Non-GAAP gross margin | 73.5 | % | 77.6 | % | 74.4 | % | 73.8 | % | ||||||||
| Non-GAAP sales and marketing | ||||||||||||||||
| GAAP sales and marketing | $ | 27,024 | $ | 26,664 | $ | 100,512 | $ | 76,545 | ||||||||
| Stock-based compensation expense | (2,833 | ) | (10,746 | ) | (15,906 | ) | (19,973 | ) | ||||||||
| Non-GAAP sales and marketing | $ | 24,191 | $ | 15,918 | $ | 84,606 | $ | 56,572 | ||||||||
| Non-GAAP sales and marketing as a % of revenue | 44.9 | % | 34.5 | % | 44.1 | % | 37.3 | % | ||||||||
| Non-GAAP general and administrative | ||||||||||||||||
| GAAP general and administrative | $ | 15,035 | $ | 15,954 | $ | 59,221 | $ | 36,872 | ||||||||
| Stock-based compensation expense | (4,688 | ) | (6,420 | ) | (24,063 | ) | (12,916 | ) | ||||||||
| Non-GAAP general and administrative | $ | 10,347 | $ | 9,534 | $ | 35,158 | $ | 23,956 | ||||||||
| Non-GAAP general and administrative as a % of revenue | 19.2 | % | 20.7 | % | 18.3 | % | 15.8 | % | ||||||||
| Non-GAAP research and development | ||||||||||||||||
| GAAP research and development | $ | 4,132 | $ | 3,444 | $ | 31,765 | $ | 12,204 | ||||||||
| Stock-based compensation expense | (825 | ) | (90 | ) | (16,062 | ) | (286 | ) | ||||||||
| Non-GAAP research and development | $ | 3,307 | $ | 3,354 | $ | 15,703 | $ | 11,918 | ||||||||
| Non-GAAP research and development as a % of revenue | 6.1 | % | 7.3 | % | 8.2 | % | 7.9 | % | ||||||||
