Summary
AvePoint reported total revenue of $50.3 million for the first quarter of fiscal 2022, up 29.6% from $38.8 million in the prior-year quarter. The mix keeps tilting toward subscriptions. SaaS revenue rose 45% year over year and term license and support revenue rose 17%, while maintenance revenue fell 17.9% and perpetual license revenue also declined. Gross profit of $35.7 million was up 27.3%, though gross margin slipped to 70.9% from 72.2% as hosting and service delivery costs grew faster than the top line.
Growth was broad by region. United States revenue rose 23.1%, EMEA rose 37.1%, and APAC rose 32.7%. Services revenue climbed 50.9%, reflecting implementation, customization and migration work. That line is not inherently recurring, and management expects it to fluctuate period to period. Cost of revenue rose 35.7%, driven by higher hosting costs tied to more SaaS usage and by higher people costs.
Profitability moved the other way. The operating loss widened to $13.8 million from $5.9 million, and operating margin fell to -27.5% from -15.3%. Net loss attributable to AvePoint grew to $11.7 million from $5.3 million. Diluted loss per share narrowed to $0.06 from $0.14, helped by a much larger share count following the public listing. Stock-based compensation of $8.3 million explains much of the gap. Excluding it, non-GAAP operating loss was $5.6 million versus $2.6 million a year earlier, and non-GAAP operating margin was -11.1% against -6.8%. Sales and marketing expense rose 40.2%, general and administrative expense rose 51.0%, and research and development rose 56.1%. Management attributed those increases to headcount, the insurance and compliance costs of being public, and higher spending on media and events.
Recurring revenue metrics held up. Total ARR reached $167.4 million, up 30% from $129.2 million a year earlier. The core trailing twelve month dollar-based net retention rate was 108%, compared with 110%. The channel business was transacting the equivalent of $11.0 million in ARR as of March 31, 2022, up from $5.5 million. Product news included ransomware detection, plus two launches, AvePoint Entrust for multi-cloud administration and Confide for confidential project collaboration. The quarter also included a small acquisition.
Cash generation remains negative. Net cash used in operating activities was $6.1 million, compared with $4.3 million a year earlier, and capital expenditures of $0.97 million rose from $0.27 million. Cash and short-term investments totaled $260 million at March 31, 2022. Deferred revenue stood at $84.0 million, and the accumulated deficit reached $387.0 million. A $30.0 million revolving line of credit with HSBC matures on April 7, 2023, carries no borrowings outstanding, and requires a specified adjusted quick ratio and minimum annual recurring revenue. AvePoint repurchased 1.1 million shares under its share repurchase program for $5.5 million.
Guidance for the second quarter of fiscal 2022 projects approximately 21% year-over-year revenue growth and a non-GAAP operating loss. Full year 2022 guidance projects approximately 26% year-over-year revenue growth, a non-GAAP operating result ranging from a loss to income, and approximately 34% year-over-year growth in ARR. Risks include a highly competitive cloud software market, foreign exchange swings on international results, and limited exposure to Russia's military action against Ukraine. Management also flagged a likelihood that a valuation allowance may be required on U.S. net deferred tax assets in prospective quarters of 2022, which would affect reported tax expense.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2022 | Q4 FY2021 | QoQ | Q1 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $50.3M | $53.8M | -6.6% | — | — |
| Gross profit | $35.7M | $38.9M | -8.3% | — | — |
| Gross margin | 70.9% | 72.2% | -1.3 pp | — | — |
| Research & development | $6.4M | $4.1M | +54.9% | — | — |
| Sales & marketing | $27.1M | $27.0M | +0.1% | $1.8M | +1368.7% |
| General & administrative | $15.5M | $15.0M | +3.4% | — | — |
| Total operating expenses | $49.5M | $46.6M | +6.3% | — | — |
| Operating income (loss) | -$13.8M | -$7.7M | -80.5% | -$1.9M | -631.9% |
| Operating margin | -27.5% | -14.3% | -13.3 pp | — | — |
| Net income (loss) | -$11.1M | -$7.5M | -47.6% | $28.3M | -139.0% |
| Net margin | -22.0% | -13.9% | -8.1 pp | — | — |
| Diluted EPS | -$0.06 | -$0.06 | ±$0.00 | — | — |
| Net retention rate | 100.0% | 110.0% | -10.0 pp | — | — |
Risks
GAAP operating margin was (27.5)% in FY2022 Q1, down 12.2 percentage points from (15.3)% in FY2021 Q1, and loss from operations widened to $13.8 million from $5.9 million. MD&A states investments in infrastructure, research and development, marketing, and geographic expansion will continue to increase operating costs and may decrease operating margins.
MD&A describes the software and cloud-based services markets as dynamic and highly competitive, with competitors developing new software and deploying competing cloud services while customer preferences evolve rapidly. AvePoint must continue to evolve and adapt, and the required investments may increase operating costs.
AvePoint says aggregate demand is correlated to global macroeconomic and geopolitical factors, and Russia's ongoing military action against Ukraine has created general macroeconomic uncertainty. It reports only limited and largely immaterial exposure to Russia or Belarus but is monitoring developments that cannot be predicted.
A significant portion of AvePoint's total revenue and expenses is from international operations and denominated in currencies other than the U.S. dollar, so changes in foreign exchange rates may significantly affect revenue and expenses.
AvePoint states its success is highly dependent on its ability to attract and retain qualified employees, and it competes for talent globally with a mix of university and industry hiring. It relies on working environment, resources, career growth, and competitive compensation to retain employees.
MD&A says there is a likelihood that a valuation allowance may be required on AvePoint's U.S. net deferred tax assets during prospective quarters in 2022, which could affect future results of operations.
MD&A identifies increased insurance, professional services, and compliance costs related to operating as a publicly traded company and the I-Access acquisition as drivers of higher expenses, which pressure profitability.
AvePoint says quarterly revenue fluctuates and does not necessarily grow sequentially, with historically higher third and fourth quarters driven by customers' fiscal year ends. The ongoing COVID-19 pandemic may cause temporary changes and increased fluctuations in quarterly revenue.
SaaS KPIs
All quarters →Non-GAAP operating margin
Total ARR
Non-GAAP Gross Margin
Core TTM Dollar-Based Net Retention Rate
Summary, forecast, risks and KPIs are extracted from AvePoint, Inc.'s SEC filings for Q1 FY2022 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.