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Third Quarter 2021 Financial Results
- Total Revenue of
$53.9 million , up 36% year-over-year - Total ARR of
$147.5 million as ofSeptember 30, 2021 , up 32% year-over-year - SaaS Revenue of
$22.4 million , up 59% year-over-year - GAAP Operating Loss of
$28.7 million - Non-GAAP Operating Income of
$4.0 million - Cash and Short-Term Investments of approximately
$262.3 million as ofSeptember 30, 2021
Third Quarter 2021 Key Highlights
- Launched first global partner program, designed to support the unique needs of different types of channel partners as they build services around digital collaboration.
AvePoint was awarded a$37 million SGD ($27.5 million USD ) contract from lead agency Temasek Polytechnic to deploy a training management platform for career professionals. The platform will be powered by AvePoint EduTech and will be available to six institutions of higher learning (IHL) for over 100,000 students.- Maintained triple digit growth in monthly recurring revenue (MRR) tied to the managed services provider (MSP) business.
- Achieved record level sequential growth in accounts with over
$100k in annual recurring revenue (ARR).
Financial Outlook
For the fourth quarter of 2021,
- Total revenues between
$56.4 and$58.4 million - Non-GAAP operating income between break even and
$1.5 million
For the full year ending
- Total revenues between
$194.4 and$196.4 million - Non-GAAP operating income between
$4.7 and$6.2 million
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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.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws including statements regarding the future performance of and market opportunities for
Investor Contacts:
Sapphire Investor Relations, LLC.
ir@avepoint.com
617-542-6180
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue: | ||||||||||||||||
SaaS | $ | 22,410 | $ | 14,092 | $ | 61,255 | $ | 36,034 | ||||||||
Termed license and support | 17,477 | 8,171 | 37,292 | 23,272 | ||||||||||||
Services | 8,143 | 10,870 | 21,361 | 26,173 | ||||||||||||
Maintenance and OEM | 5,293 | 6,056 | 16,160 | 17,837 | ||||||||||||
Perpetual license | 604 | 605 | 2,003 | 2,095 | ||||||||||||
Total revenue | 53,927 | 39,794 | 138,071 | 105,411 | ||||||||||||
Cost of revenue: | ||||||||||||||||
SaaS | 4,866 | 2,799 | 13,870 | 7,856 | ||||||||||||
Termed license and support | 211 | 437 | 714 | 1,257 | ||||||||||||
Services | 9,435 | 6,716 | 21,528 | 19,605 | ||||||||||||
Maintenance and OEM | 710 | 304 | 1,608 | 978 | ||||||||||||
Total cost of revenue | 15,222 | 10,256 | 37,720 | 29,696 | ||||||||||||
Gross profit | 38,705 | 29,538 | 100,351 | 75,715 | ||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | 25,186 | 21,830 | 73,488 | 49,881 | ||||||||||||
General and administrative | 22,230 | 10,469 | 44,186 | 20,918 | ||||||||||||
Research and development | 19,648 | 3,003 | 27,633 | 8,760 | ||||||||||||
Depreciation and amortization | 326 | 259 | 863 | 800 | ||||||||||||
Total operating expenses | 67,390 | 35,561 | 146,170 | 80,359 | ||||||||||||
Loss from operations | (28,685 | ) | (6,023 | ) | (45,819 | ) | (4,644 | ) | ||||||||
Gain on earn-out and warrant liabilities | 13,650 | — | 13,650 | — | ||||||||||||
Interest income, net | 56 | 17 | 80 | 26 | ||||||||||||
Other income (expense), net | (299 | ) | 65 | (300 | ) | (324 | ) | |||||||||
Loss before income taxes | (15,278 | ) | (5,941 | ) | (32,389 | ) | (4,942 | ) | ||||||||
Income tax (benefit) expense | (5,521 | ) | 6,244 | (6,633 | ) | (72 | ) | |||||||||
Net loss | $ | (9,757 | ) | $ | (12,185 | ) | $ | (25,756 | ) | $ | (4,870 | ) | ||||
Net loss attributable to and accretion of redeemable noncontrolling interest | (517 | ) | — | (1,413 | ) | — | ||||||||||
Net loss attributable to | $ | (10,274 | ) | $ | (12,185 | ) | $ | (27,169 | ) | $ | (4,870 | ) | ||||
Deemed dividends on preferred stock | 608 | (5,615 | ) | (32,928 | ) | (21,413 | ) | |||||||||
Net loss available to common shareholders | $ | (9,666 | ) | $ | (17,800 | ) | $ | (60,097 | ) | $ | (26,283 | ) | ||||
Loss per share: | ||||||||||||||||
Basic | $ | (0.05 | ) | $ | (0.20 | ) | $ | (0.47 | ) | $ | (0.30 | ) | ||||
Diluted | $ | (0.05 | ) | $ | (0.20 | ) | $ | (0.47 | ) | $ | (0.30 | ) | ||||
Shares used in computing loss per share: | ||||||||||||||||
Basic | 176,621 | 90,805 | 126,738 | 86,784 | ||||||||||||
Diluted | 176,621 | 90,805 | 126,738 | 86,784 |
Condensed Consolidated Balance Sheets
(In thousands, except par value)
(Unaudited)
2021 | 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 260,704 | $ | 69,112 | ||||
Short-term investments | 1,614 | 992 | ||||||
Accounts receivable, net of allowance of | 54,226 | 48,250 | ||||||
Prepaid expenses and other current assets | 13,086 | 2,343 | ||||||
Total current assets | 329,630 | 120,697 | ||||||
Property and equipment, net | 3,252 | 2,663 | ||||||
Deferred contract costs | 35,267 | 31,943 | ||||||
Long-term unbilled receivables | 6,104 | 5,499 | ||||||
Other assets | 5,911 | 8,252 | ||||||
Total assets | $ | 380,164 | $ | 169,054 | ||||
Liabilities, mezzanine equity, and stockholders’ deficiency | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,265 | $ | 774 | ||||
Accrued expenses and other liabilities | 25,782 | 26,245 | ||||||
Current portion of deferred revenue | 71,251 | 65,203 | ||||||
Total current liabilities | 99,298 | 92,222 | ||||||
Long-term portion of deferred revenue | 6,875 | 9,485 | ||||||
Share-based awards classified as liabilities | — | 43,502 | ||||||
Earn-out liabilities | 17,125 | — | ||||||
Warrant liabilities | 795 | — | ||||||
Other non-current liabilities | 3,947 | 3,658 | ||||||
Total liabilities | 128,040 | 148,867 | ||||||
Commitments and contingencies (Note 10) | ||||||||
Mezzanine equity | ||||||||
Redeemable convertible preferred stock, | — | 183,390 | ||||||
Redemption value of common shares | — | 25,074 | ||||||
Share-based awards classified as mezzanine equity | — | 1,489 | ||||||
Redeemable noncontrolling interest | 4,631 | 3,061 | ||||||
Total mezzanine equity | 4,631 | 213,014 | ||||||
Stockholders’ deficiency | ||||||||
Common stock, | 18 | 12 | ||||||
Additional paid-in capital | 614,569 | 105,159 | ||||||
(1,739 | ) | — | ||||||
Accumulated other comprehensive income | 1,892 | 1,791 | ||||||
Accumulated deficit | (367,247 | ) | (299,789 | ) | ||||
Total stockholders’ deficiency | 247,493 | (192,827 | ) | |||||
Total liabilities, mezzanine equity, and stockholders’ deficiency | $ | 380,164 | $ | 169,054 |
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
For the Nine Months Ended | ||||||||
2021 | 2020 | |||||||
Operating activities | ||||||||
Net loss | $ | (25,756 | ) | $ | (4,870 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 863 | 800 | ||||||
Foreign currency remeasurement (gain) loss | (161 | ) | 368 | |||||
Provision for doubtful accounts | (880 | ) | 175 | |||||
Stock-based compensation | 50,475 | 16,235 | ||||||
Gain on disposal of property and equipment | (15 | ) | — | |||||
Deferred income taxes | (1,008 | ) | (1,973 | ) | ||||
Change in value of earn-out and warrant liabilities | (13,650 | ) | — | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable and long-term unbilled receivables | (7,002 | ) | (2,416 | ) | ||||
Prepaid expenses and other current assets | (10,775 | ) | 2,836 | |||||
Deferred contract costs and other assets | (3,269 | ) | (3,040 | ) | ||||
Accounts payable, accrued expenses and other liabilities | 1,836 | (1,949 | ) | |||||
Deferred revenue | 5,377 | 4,965 | ||||||
Net cash provided by (used in) operating activities | (3,965 | ) | 11,131 | |||||
Investing activities | ||||||||
Maturity (purchase) of short-term investments | (638 | ) | 1,466 | |||||
Purchase of property and equipment | (1,445 | ) | (314 | ) | ||||
Net cash provided by (used in) investing activities | (2,083 | ) | 1,152 | |||||
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 | ) | — | |||||
Purchase of treasury stock | (1,631 | ) | — | |||||
Payment of net cash settlement for management options | (7,530 | ) | — | |||||
Proceeds from stock option exercises | 4,555 | 54 | ||||||
Proceeds from sale of common shares of subsidiary | 753 | — | ||||||
Repayments of capital leases | (20 | ) | (42 | ) | ||||
Payments of debt issuance costs | — | (300 | ) | |||||
Proceeds from issuance of Common stock, net of issuance costs | — | 56,753 | ||||||
Net cash provided by financing activities | 197,608 | 22,753 | ||||||
Effect of exchange rates on cash | 32 | (329 | ) | |||||
Net increase in cash and cash equivalents | 191,592 | 34,707 | ||||||
Cash and cash equivalents at beginning of period | 69,112 | 12,162 | ||||||
Cash and cash equivalents at end of period | $ | 260,704 | $ | 46,869 | ||||
Supplemental disclosures of cash flow information | ||||||||
Cash received (paid) for: | ||||||||
Interest | $ | 80 | $ | — | ||||
Income taxes | $ | (2,823 | ) | $ | 80 | |||
Non-cash investing and financing activities | ||||||||
Issuance of common shares in exchange for issuance cost | $ | — | $ | 2,408 | ||||
Fixed assets acquired under capital leases | $ | — | $ | 28 |
Non-GAAP Reconciliations
(In thousands)
(Unaudited)
For the Three Months Ended | For the Nine Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Non-GAAP operating income | ||||||||||||||||
GAAP operating income (loss) | $ | (28,685 | ) | $ | (6,023 | ) | $ | (45,819 | ) | $ | (4,644 | ) | ||||
Stock-based compensation expense | 32,676 | 13,381 | 50,475 | 16,235 | ||||||||||||
Non-GAAP operating income | $ | 3,991 | $ | 7,358 | $ | 4,656 | $ | 11,591 | ||||||||
Non-GAAP operating margin | 7.4 | % | 18.5 | % | 3.4 | % | 11.0 | % | ||||||||
Non-GAAP gross profit | ||||||||||||||||
GAAP gross profit | $ | 38,705 | $ | 29,538 | $ | 100,351 | $ | 75,715 | ||||||||
Stock-based compensation expense | 2,428 | 214 | 2,790 | 316 | ||||||||||||
Non-GAAP gross profit | $ | 41,133 | $ | 29,752 | $ | 103,141 | $ | 76,031 | ||||||||
Non-GAAP gross margin | 76.3 | % | 74.8 | % | 74.7 | % | 72.1 | % | ||||||||
Non-GAAP sales and marketing | ||||||||||||||||
GAAP sales and marketing | $ | 25,186 | $ | 21,830 | $ | 73,488 | $ | 49,881 | ||||||||
Stock-based compensation expense | (2,171 | ) | (7,917 | ) | (13,073 | ) | (9,227 | ) | ||||||||
Non-GAAP sales and marketing | $ | 23,015 | $ | 13,913 | $ | 60,415 | $ | 40,654 | ||||||||
Non-GAAP sales and marketing as a % of revenue | 42.7 | % | 35.0 | % | 43.8 | % | 38.6 | % | ||||||||
Non-GAAP general and administrative | ||||||||||||||||
GAAP general and administrative | $ | 22,230 | $ | 10,469 | $ | 44,186 | $ | 20,918 | ||||||||
Stock-based compensation expense | (13,020 | ) | (5,201 | ) | (19,375 | ) | (6,496 | ) | ||||||||
Non-GAAP general and administrative | $ | 9,210 | $ | 5,268 | $ | 24,811 | $ | 14,422 | ||||||||
Non-GAAP general and administrative as a % of revenue | 17.1 | % | 13.2 | % | 18.0 | % | 13.7 | % | ||||||||
Non-GAAP research and development | ||||||||||||||||
GAAP research and development | $ | 19,648 | $ | 3,003 | $ | 27,633 | $ | 8,760 | ||||||||
Stock-based compensation expense | (15,057 | ) | (49 | ) | (15,237 | ) | (196 | ) | ||||||||
Non-GAAP research and development | $ | 4,591 | $ | 2,954 | $ | 12,396 | $ | 8,564 | ||||||||
Non-GAAP research and development as a % of revenue | 8.5 | % | 7.4 | % | 9.0 | % | 8.1 | % | ||||||||
Source:
2021 GlobeNewswire, Inc., source