Summary
AvePoint grew revenue 22.8% year over year in its fiscal 2022 second quarter, with total revenue of $55.7 million. For the first six months of fiscal 2022, revenue was $106.0 million, up 26.0% from the prior-year period. Gross profit for the quarter was $40.3 million, up 19.8%. Gross margin was 72.3%, down from 74.2% a year earlier, a decline of 1.8 percentage points. The revenue mix keeps shifting. SaaS revenue was $27.6 million in the quarter, up 34% year over year and 43% on a constant currency basis. Services revenue rose 34.9% to $9.8 million. Maintenance revenue fell 25.5% to $4.1 million as customers keep migrating off perpetual licensing.
GAAP profitability remains out of reach. The operating loss widened to $11.8 million for the quarter from $11.2 million in the prior-year quarter. Operating margin was negative 21.1%, better than negative 24.7% a year earlier because revenue grew faster than operating expenses. Net loss attributable to AvePoint narrowed to $9.8 million from $11.6 million. Year to date, the net loss widened to $21.5 million from $16.9 million. Stock-based compensation of $10.4 million in the quarter explains most of the gap between the GAAP operating loss and the non-GAAP operating loss of $1.3 million. A year earlier, non-GAAP operating income was $3.3 million.
Cash generation softened during the quarter. Operating cash flow was negative $0.47 million, down from positive $2.34 million in the prior-year quarter. Year to date, operating cash flow was negative $6.6 million, down from negative $1.9 million. Capital expenditures rose to $1.26 million for the quarter from $0.63 million. Deferred revenue stood at $80.95 million as of June 30, 2022. Cash and short-term investments totaled $246.6 million on that date, and the company had no borrowings under its $30.0 million revolving line of credit.
Operational metrics held up better than the income statement. Total ARR was $178.2 million, up 28% year over year, or 29% adjusted for the FX impact. Stripping out a $1.5 million currency headwind, ARR grew $39.2 million year over year. The dollar-based net retention rate was 106%, or 107% adjusted for FX. AvePoint added four new solutions on Microsoft AppSource, extended its data protection work with Microsoft Azure backup, and was a finalist in Microsoft Partner of the Year awards for education and government. Through June 30, 2022, it repurchased roughly 1.9 million shares for about $10 million, and research and development headcount grew 54% year over year.
Guidance points to a slower but still growing second half. For the third quarter of fiscal 2022, management sees total revenue of $62 million to $64 million, or roughly 17% year-over-year growth and 23% adjusted for constant currency, with non-GAAP operating income of $1 million to $2 million. For the full fiscal year 2022, revenue guidance is $230.0 million to $234.0 million, about 21% growth, or 26% adjusted for constant currency. Full-year non-GAAP operating results are guided to a range from a loss of $3.5 million to income of $1.0 million. Full-year ARR is expected to be $202 million to $206 million, up about 28%, or 31% adjusted for FX impact.
The outlook assumes the difficult macroeconomic environment lasts through the rest of the year. Currency is a measurable drag: management now expects the total FX impact in fiscal 2022 to be about $4.8 million on ARR and $5 million on revenue. The margin profile is also worth watching, since gross margin fell and operating costs keep climbing with hiring and public company requirements. Management flagged the possibility that a valuation allowance on U.S. deferred tax assets could be needed if losses persist and projected taxable income declines. Other named risks include competition in software and cloud services, revenue seasonality with historically stronger third and fourth quarters, and geopolitical uncertainty from Russia's military action against Ukraine, which the company does not consider material at this time.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2022 | Q1 FY2022 | QoQ | Q2 FY2021 | YoY |
|---|---|---|---|---|---|
| Revenue | $55.7M | $50.3M | +10.8% | — | — |
| Gross profit | $40.3M | $35.7M | +12.9% | — | — |
| Gross margin | 72.3% | 70.9% | +1.4 pp | — | — |
| Research & development | $7.9M | $6.4M | +23.3% | — | — |
| Sales & marketing | $27.2M | $27.1M | +0.4% | $4.3M | +527.4% |
| General & administrative | $16.3M | $15.5M | +5.0% | — | — |
| Total operating expenses | $52.0M | $49.5M | +5.1% | — | — |
| Operating income (loss) | -$11.7M | -$13.8M | +15.2% | -$4.4M | -168.0% |
| Operating margin | -21.1% | -27.5% | +6.5 pp | — | — |
| Net income (loss) | -$9.2M | -$11.1M | +16.7% | -$18.3M | +49.8% |
| Net margin | -16.5% | -22.0% | +5.5 pp | — | — |
| Net retention rate | 100.0% | 100.0% | ±0.0 pp | — | — |
Risks
The MD&A states that investments in infrastructure, research and development, marketing, and geographic expansion will continue to increase operating costs and may decrease operating margins. GAAP operating margin for the six months ended June 30, 2022 was down 3.8 percentage points versus the prior-year period.
AvePoint expects perpetual license and maintenance revenue to trend downward period over period as it shifts toward SaaS and term licenses. Maintenance revenue decreased 25.5% in the quarter ended June 30, 2022 and perpetual license revenue decreased 82.9% in the same quarter.
Services revenue is not inherently recurring and is subject to more period-to-period volatility than other elements of AvePoint's business. It increased 34.9% in the quarter ended June 30, 2022, but MD&A warns that services revenue is expected to fluctuate.
The markets for software and cloud-based services are dynamic and highly competitive, and competitors are developing new software while deploying competing cloud-based services. Customer preferences evolve rapidly and choices in hardware, products, and devices can influence which cloud-based services users access.
AvePoint states its success is highly dependent on its ability to attract and retain qualified employees, and it competes for talent globally. The company grew its R&D headcount 54% year over year, which increased compensation costs.
A significant portion of AvePoint's revenue and expenses is international and denominated in currencies other than the U.S. dollar, so changes in foreign exchange rates may significantly affect revenue and expenses. The company notes a natural hedge but still identifies this as a risk.
AvePoint says that if it incurs significant losses and reduces projected taxable income, a substantial valuation allowance to reduce its US deferred tax assets may be required. That allowance would materially increase tax provision in the period it is recognized.
Aggregate demand for software, services, and devices is correlated to global macroeconomic and geopolitical factors. The MD&A notes Russia's ongoing military action against Ukraine has created general macroeconomic uncertainty, though AvePoint says its economic, financial, and operational exposure to Russia or Belarus is limited and largely immaterial.
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 Q2 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.