Summary
AvePoint reported third-quarter 2021 total revenue of $53.9 million, up 35.5% from the prior-year quarter. Gross profit was $38.7 million, up 31.0%, while gross margin slipped to 71.8%, down 2.5 percentage points. The company posted an operating loss of $28.7 million, but net loss attributable to AvePoint, Inc. narrowed to $10.3 million. Diluted loss per share was $0.05, an improvement from the prior-year quarter. For the first nine months of 2021, revenue reached $138.1 million, up 31.0%, and gross profit was $100.4 million, up 32.5%. The year-to-date operating loss widened to $45.8 million, the net loss widened to $27.2 million, and diluted loss per share widened to $0.47.
The quarter leaned heavily on subscription products. Total ARR was $147.5 million at September 30, 2021, up 32% year over year. Core trailing-twelve-month dollar-based net retention was 110%, up from 106% a year earlier. The channel business was transacting the equivalent of $7.9 million in annual recurring revenue, up from $3.3 million. AvePoint also launched its first global partner program and won a $37 million SGD ($27.5 million USD) contract with Temasek Polytechnic. Management said the company maintained triple-digit growth in monthly recurring revenue tied to the managed services provider business and achieved record sequential growth in accounts with more than $100,000 in annual recurring revenue.
Profitability on a non-GAAP basis remained positive but much lower. Non-GAAP operating income was $4.0 million, compared with $7.4 million in the prior-year quarter, and non-GAAP operating margin was 7.4%. Non-GAAP gross margin was 76.3%, up from 74.8%. The gap between GAAP and non-GAAP results was driven by stock-based compensation, including a one-time expense tied to existing awards for a group of international employees. GAAP operating expenses rose sharply, with sales and marketing, general and administrative, and research and development all increasing. A gain on earn-out and warrant liabilities and an income tax benefit helped the net loss narrow in the quarter. Operating cash flow was negative $3.5 million in the quarter, down 130.0% from the prior-year quarter, and negative $4.0 million for the first nine months, down 135.6%. Capital expenditures for the first nine months were $1.44 million, up 360.2% from the prior-year period. Deferred revenue stood at $78.1 million at September 30, 2021.
Management's outlook calls for non-GAAP operating income between break even and $1.5 million for the fourth quarter of 2021, and non-GAAP operating income between $4.7 million and $6.2 million for the full year ending December 31, 2021. AvePoint also issued revenue guidance for the fourth quarter of 2021 and for the full year ending December 31, 2021. The company still faces a long list of risks. AvePoint has historically incurred losses, may incur losses in future periods, and may need additional capital. Public company costs, stock-based compensation, and COVID-19 uncertainty remain live issues. The company is also shifting away from perpetual licenses and maintenance, so those revenue lines are expected to decline. Services revenue is not inherently recurring and can be volatile. AvePoint noted that its third and fourth quarters have historically been its highest revenue quarters, and it remains an emerging growth company that can use extended transition periods for new accounting standards. It had no borrowings outstanding under its $30.0 million revolving line of credit as of September 30, 2021 and was in compliance with covenants.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2021 | Q2 FY2021 | QoQ | Q3 FY2020 | YoY |
|---|---|---|---|---|---|
| Revenue | $53.9M | — | — | — | — |
| Gross profit | $38.7M | — | — | — | — |
| Gross margin | 71.8% | — | — | — | — |
| Research & development | $19.6M | — | — | — | — |
| Sales & marketing | $25.2M | $4.3M | +481.5% | $176.9K | +14137.6% |
| General & administrative | $22.2M | — | — | — | — |
| Total operating expenses | $67.4M | — | — | — | — |
| Operating income (loss) | -$28.7M | -$4.4M | -554.7% | -$226.9K | -12542.2% |
| Operating margin | -53.2% | — | — | — | — |
| Net income (loss) | -$9.8M | -$18.3M | +46.7% | -$176.3K | -5433.4% |
| Net margin | -18.1% | — | — | — | — |
| Diluted EPS | -$0.05 | — | — | — | — |
| Net retention rate | 100.0% | — | — | — | — |
Risks
A significant majority of customers integrate AvePoint products with Microsoft solutions, and its technical advantages are highly dependent on the Microsoft partnership. Microsoft has acquired a migration vendor whose functions overlap with AvePoint's migration platform and has increased API throttling, which could reduce customer acquisition momentum and renewals.
Success with SMB customers depends on resale and distribution partnerships, and AvePoint expects sales to partners to account for a substantial portion of revenue for the foreseeable future. Partner agreements are generally non-exclusive, and loss of partners or removal from major resale platforms could harm revenue growth.
AvePoint has a history of operating losses and may not achieve or sustain profitability. Operating loss widened to $45.8 million for FY2021 year to date from $4.6 million for FY2020 year to date, and the company expects to continue investing in sales and marketing, research and development, and geographic expansion.
Sales cycles with mid-market and large enterprise customers are long and unpredictable, generally three to nine months and occasionally up to twelve months. Most sales are typically made during the last three weeks of each quarter, so failure to close expected transactions in that short period can cause a quarterly revenue shortfall.
Management has identified material weaknesses in internal control over financial reporting related to completeness and accuracy of financial accounting, accounting for nonroutine transactions, and segregation of duties. Failure to remediate could result in material misstatements or failure to meet periodic reporting obligations.
The COVID-19 pandemic could continue to disrupt operations, global technical, sales and distribution infrastructure, and customer demand. AvePoint reduced approximately 10% of its global workforce during the first half of 2020 and remote work and travel restrictions may harm sales pipeline and international expansion.
Recent growth rates may not be indicative of future growth. Revenue increased 35.5% in FY2021 Q3 and 31.0% for FY2021 year to date, but AvePoint may not sustain revenue growth consistent with recent history given demands on hiring, partner expansion, and operations.
AvePoint has limited ability to predict customer renewal rates, and customers have no obligation to renew subscriptions. Customers may renew for fewer products, shorter terms, or lower pricing, and acquisitions of customers may lead to contract cancellations, reducing revenue.
AvePoint faces competition from established and emerging companies, and larger competitors may bundle products or sell at zero or negative margins. Pricing pressure could reduce revenue and gross margins, and gross margin decreased to 71.8% in FY2021 Q3 from 74.2% in FY2020 Q3.
AvePoint faces significant increased legal, accounting, administrative, insurance, and compliance expenses as a public company. General and administrative expenses increased 112.3% to $22.2 million in FY2021 Q3, driven partly by professional service, insurance, and personnel costs related to the public listing.
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 Q3 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.