Summary
AvePoint released second-quarter 2021 results on August 10, 2021, reporting total revenue of $45.34 million. The press release said revenue rose 38% year over year. Gross profit was $33.62 million, and gross margin was 74.2%. For the first six months of 2021, revenue reached $84.14 million, gross profit was $61.65 million, and gross margin was 73.3%. The company pointed to total ARR of $139.0 million as of June 30, 2021, up 33% year over year, and said SaaS revenue grew 76% year over year. More than 8 million cloud users relied on its solutions. The CEO tied the growth to continued expansion of Microsoft Teams and adoption of collaboration security technologies.
Profitability remained mixed. The reported figures block shows a GAAP operating loss of $4.38 million for the quarter and an operating margin of negative 9.7%. Year to date, the reported figures show a GAAP operating loss of $6.27 million, with an operating margin of negative 7.5%. The block also shows a quarterly GAAP net loss of $18.32 million, wider than the prior-year-quarter net loss of $14.37 million. Year-to-date GAAP net income was $9.99 million, a swing to profit from a prior-year year-to-date net loss of $9.26 million. Diluted EPS was $0.00 for the quarter, flat against the prior-year quarter. Year-to-date diluted EPS was $0.00, down from $0.03 in the prior-year year-to-date period.
Cash generation stayed modest. Operating cash flow was negative $0.10 million for the quarter, an improvement from negative $0.21 million in the prior-year quarter. Year-to-date operating cash flow was negative $0.45 million, an improvement from negative $0.59 million in the prior-year year-to-date period. Capital expenditures were $0.63 million for the quarter and $0.90 million year to date. The press release also highlighted non-GAAP operating income of $3.3 million for the quarter, a 7.3% non-GAAP operating margin. That measure excludes stock-based compensation expense.
Operationally, AvePoint said its AvePoint Online Services platform achieved FedRAMP Authorization for moderate impact level use across United States federal agencies. It was also assessed against the Information Security Registered Assessors Program, or IRAP, for Australian Government requirements. The company released Salesforce Cloud Backup for managed service providers across 36 countries and through 58 distributor app marketplaces. rhipe, an APAC distributor, began offering AvePoint solutions to its MSP customers. The business combination with Apex Technology Acquisition Corporation closed on July 1, 2021, after quarter end, with net proceeds of $204.5 million. The 10-Q MD&A describes Apex as a blank check company that had no operations or revenue before the closing.
Management issued guidance for the third quarter of 2021 and for the full year ending December 31, 2021. The third-quarter outlook covers total revenues and non-GAAP operating income, stated as ranges. The full-year outlook covers the same two measures, also stated as ranges. The company also described the call it would host on August 10, 2021 to review second-quarter results and discuss the outlook.
Risks include competition in regulated industries, changes in laws and regulations, execution of business plans, and market or technology industry downturns. The pre-merger SPAC also flagged that it might need additional financing if redemptions were significant, and it had deferred underwriting fees and a monthly office and administrative fee from an affiliate of its sponsor. If it had been unable to complete a business combination, it could have been forced to cease operations and liquidate the trust account. AvePoint's CEO said the company aims to increase market share of the Microsoft 365 user base, boost customer retention, and grow in the SMB market through channel partners.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2021 | Q1 FY2021 | QoQ | Q2 FY2020 | YoY |
|---|---|---|---|---|---|
| Sales & marketing | $4.3M | $1.8M | +135.1% | $213.8K | +1925.6% |
| Operating income (loss) | -$4.4M | -$1.9M | -131.6% | -$263.8K | -1560.7% |
| Net income (loss) | -$18.3M | $28.3M | -164.7% | -$155.2K | -11700.2% |
Risks
Apex Technology Acquisition Corporation remained a blank check company with no operations and no revenues through June 30, 2021; results and liquidity depended entirely on closing the AvePoint merger, which was not consummated until the July 1, 2021 Closing Date, after the end of the reported quarter. Failure to complete the transaction would have forced the company to cease operations and liquidate the trust account.
The company had only $205,729 of cash outside the Trust Account as of June 30, 2021 and relied on the $140.0 million PIPE placement (14,000,000 shares at $10.00) plus trust assets of $351,737,387 to fund the combined company. Withdrawals from the Trust Account were limited to interest used to pay franchise taxes ($161,257 in the six months ended June 30, 2021), and a $13,150,000 deferred underwriting fee becomes payable only upon completion of a business combination.
Results were driven by non-cash changes in the fair value of the warrant liability rather than operations. The quarter ended June 30, 2021 net loss of $18,318,637 was down $3.95 million, or 27.5%, versus the prior-year quarter loss, reflecting a $13,945,650 warrant fair value change and $4,331,469 of operating costs, while the six months ended June 30, 2021 produced net income of $9,992,975 on a $16,226,200 warrant fair value gain.
The company stated that as of the date of the report there had been no material changes to the risk factors disclosed in its Annual Report on Form 10-K/A for the year ended December 31, 2020, so the filing provides no updated risk disclosure for the post-combination AvePoint business.
SaaS KPIs
All quarters →Non-GAAP operating margin
Total ARR
Non-GAAP Gross Margin
Non-GAAP operating income
Summary, forecast, risks and KPIs are extracted from AvePoint, Inc.'s SEC filings for Q2 FY2021 (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.