Summary
AvePoint posted total revenue of $88.8 million for the third quarter of fiscal 2024, up 22.1% from the same quarter a year earlier. The revenue mix keeps tilting toward subscriptions. SaaS revenue grew 45% and represented 69% of total revenue, up from 58% a year earlier, while term license and support revenue and maintenance revenue both declined as the company keeps shifting away from perpetual licenses. Total ARR was $308.9 million as of September 30, 2024, up 23% from $250.6 million a year earlier. Management pointed to demand for platform solutions that automate data management across multi-cloud environments, and said the business remains well placed to capture that opportunity.
Profitability moved sharply higher on both a GAAP and a non-GAAP basis. Gross profit was $67.6 million, up 28.5%, and gross margin was 76.1%, up 3.8 percentage points from the prior-year quarter. Operating income was $7.7 million against a prior-year operating loss, which puts the operating margin at 8.6%, up 9.0 percentage points. Net income was $2.6 million, another swing from a loss a year earlier, and diluted earnings per share was $0.01. Non-GAAP operating income was $17.8 million, with a non-GAAP operating margin of 20.1%.
One caveat sits below the operating line. Other expense, net, was $4.5 million, driven largely by fair value movements on earn-out and warrant liabilities and by foreign currency remeasurement. The year-to-date picture is also still a loss. Revenue for the first nine months of fiscal 2024 was $241.3 million, up 22.4%, operating income was $2.3 million versus a prior-year operating loss, and the net loss was $11.9 million, narrower than the prior-year period.
Cash generation was the standout. Operating cash flow was $32.2 million for the quarter, up 699.9% from a year earlier, and $56.1 million for the first nine months, up 322.6%. Capital expenditures were $1.4 million for the quarter. Deferred revenue was $142.3 million, up 30.8% from a year earlier, and remaining performance obligations were $363.7 million, up 31.9%, both pointing to a healthy pipeline of committed work. The company ended September 30, 2024 with $250.0 million in cash, cash equivalents and short-term investments.
Retention stayed steady. Adjusted for foreign exchange, dollar-based gross retention was 88% and dollar-based net retention was 110%; on a reported basis those figures were 87% and 109%. AvePoint kept spending on product, with research and development expense up 48.5% in the quarter, mostly on personnel costs. The company also announced general availability of AvePoint Cloud Backup Express, which uses Microsoft 365 Backup Storage.
Guidance points to slower growth in the next quarter but a higher full fiscal year. For the fourth quarter of fiscal 2024, management expects total revenue growth of 17% at the midpoint and non-GAAP operating income of $12.6 million to $13.6 million. For the full fiscal year 2024, the company now expects total ARR of $324.9 million to $326.9 million, or 23% growth at the midpoint, total revenue growth of 21% at the midpoint, and non-GAAP operating income of $45.8 million to $46.8 million, a non-GAAP operating margin of 14% at the midpoint. Management did not reconcile the non-GAAP operating income outlook to GAAP, saying items such as stock-based compensation are uncertain or outside its control.
The risks are the familiar ones. Software and cloud markets are highly competitive, and the company says continued investment in infrastructure, research and development, marketing and geographic expansion will raise operating costs and may pressure margins. Demand is tied to global macroeconomic and geopolitical conditions, including ongoing conflicts that could disrupt trade and regional economies. A significant portion of revenue and expenses is denominated in currencies other than the U.S. dollar, so exchange rate moves can swing reported results. AvePoint holds a $30.0 million revolving credit facility with a $20.0 million accordion that matures on November 3, 2026, and it has not drawn on the line. Share repurchases totalled $21.7 million in the first nine months of 2024.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q3 FY2024 | Q2 FY2024 | QoQ | Q3 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $88.8M | $78.0M | +13.9% | $72.8M | +22.1% |
| Gross profit | $67.6M | $59.0M | +14.5% | $52.6M | +28.5% |
| Gross margin | 76.1% | 75.7% | +0.4 pp | 72.3% | +3.8 pp |
| Research & development | $12.8M | $12.5M | +2.7% | $8.6M | +48.5% |
| Sales & marketing | $30.1M | $30.5M | -1.4% | $28.4M | +5.7% |
| General & administrative | $17.0M | $18.2M | -6.3% | $15.8M | +7.6% |
| Total operating expenses | $59.9M | $61.2M | -2.0% | $52.9M | +13.3% |
| Operating income (loss) | $7.7M | -$2.1M | +457.9% | -$313.0K | +2544.7% |
| Operating margin | 8.6% | -2.7% | +11.4 pp | -0.4% | +9.0 pp |
| Net income (loss) | $2.9M | -$12.9M | +122.6% | -$4.2M | +169.2% |
| Net margin | 3.3% | -16.6% | +19.9 pp | -5.8% | +9.1 pp |
| Diluted EPS | $0.01 | — | — | — | — |
| Net retention rate | 110.0% | 110.0% | ±0.0 pp | 108.0% | +2.0 pp |
Risks
MD&A states demand for software and services is correlated to global macroeconomic and geopolitical factors, including multiple ongoing conflicts with unpredictable outcomes that could cause regional instability, disrupt global trade and supply chains, and reduce sales and earnings. It also says these factors could impair the company's ability to raise additional capital on acceptable terms.
MD&A says the software and cloud services markets are dynamic and highly competitive, with competitors developing new software and deploying competing cloud services. It warns that continued investments in infrastructure, research and development, marketing, and geographic expansion will increase operating costs and may decrease operating margins.
MD&A states success is highly dependent on attracting and retaining qualified employees, and the company competes globally for talent by offering an exceptional working environment, broad customer reach, scale, and competitive compensation. Failure to attract or retain talent could affect execution.
MD&A notes international operations provide a significant portion of total revenues and expenses, many denominated in currencies other than the U.S. dollar, so changes in foreign exchange rates may significantly affect revenue and expenses.
MD&A says term license and support and maintenance revenue are expected to decrease, with maintenance revenue continuing to decline as the company shifts away from perpetual licenses toward SaaS and term licenses. It notes limited opportunities to sell maintenance contracts to new customers and that existing customers will continue transitioning to SaaS and term licenses.
MD&A states services revenue is expected to fluctuate because services are generally not recurring in nature and are subject to more period-to-period volatility than other elements of the business.
MD&A says quarterly revenue fluctuates and does not necessarily grow sequentially, with third and fourth quarters historically highest due to customer fiscal year ends, and new product introductions can significantly impact revenue. Results are not necessarily indicative of future quarterly or full year results.
SaaS KPIs
All quarters →Non-GAAP operating margin
Total ARR
Dollar-based net retention rate
Total customers
Non-GAAP Gross Margin
Dollar-based gross retention rate
Summary, forecast, risks and KPIs are extracted from AvePoint, Inc.'s SEC filings for Q3 FY2024 (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.