AvePoint Announces Fourth Quarter and Full Year 2021 Financial Results and $150 Million Share Repurchase Program

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."

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.

AvePoint is providing guidance for its first quarter and full year 2022 as follows:

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.

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.

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.

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

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Exhibit Number		Description

99.1		Press Release, dated March 17, 2022, reporting AvePoint, Inc.’s financial results for the fourth quarter and full year ended December 31, 2021 (furnished pursuant to Item 2.02 of Form 8-K)
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

	AvePoint, Inc.


Date: March 17, 2022	By:	/s/ BRIAN MICHAEL BROWN
		Brian Michael Brown
		Chief Legal and Compliance Officer

Date: March 17, 2022	By:	/s/ JAMES CACI
		James Caci
		Chief Financial Officer


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 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	%

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	)

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