Summary
Total revenue for AvePoint's fourth quarter was $74.6 million, up 17% from $63.6 million in the fourth quarter of 2022. Full year revenue of $271.8 million was also up 17%.
The revenue mix keeps tilting toward cloud. SaaS revenue grew 37% year over year in the quarter and for the full year, while term license and support revenue and maintenance revenue declined for the year as customers migrate off on-premise subscriptions. Deferred revenue rose 27.4% to $129.3 million, and total annual recurring revenue stood at $264.5 million at December 31, 2023, up 23%, or 24% after adjusting for foreign exchange.
Profitability turned a corner. GAAP gross profit for the quarter was $55.0 million, up from $44.8 million a year earlier, and gross margin rose to 73.7% from 70.5%. Operating income swung to $0.9 million from an operating loss of $8.0 million in the prior-year quarter, and operating margin was 1.2% against -12.7%. Net income attributable to AvePoint was $4.3 million, compared with a net loss of $12.7 million in the fourth quarter of 2022. For the full year, the net loss narrowed to $21.7 million from $41.6 million, and diluted loss per share was $0.12. Non-GAAP operating income was $10.3 million for the quarter and $22.2 million for the year, against $1.4 million and a non-GAAP operating loss of $2.9 million a year earlier.
Cash generation was the other headline. Operating cash flow was $21.4 million in the quarter, up from $6.1 million, and $34.7 million for the full year against -$0.8 million in 2022. Capital expenditures were $2.1 million for the year, down from $3.9 million. The company ended 2023 with $223.2 million in cash and cash equivalents and $3.7 million in short-term investments, no debt outstanding, and a $30.0 million revolving credit line with HSBC that matures in November 2026. It spent $39.0 million repurchasing common stock during the year.
Guidance points to continued double-digit growth. For the first quarter of 2024, management expects total revenue growth of 22% at the midpoint and non-GAAP operating income of $3.3 million to $4.3 million. For the full year 2024, the outlook calls for total ARR of $314.7 million to $320.7 million, or 20% growth at the midpoint, total revenue growth of 15% at the midpoint, and non-GAAP operating income of $27.4 million to $30.4 million.
Retention deserves watching. The dollar-based gross retention rate was 86% as reported, and the dollar-based net retention rate was 108%, with FX-adjusted figures of 87% and 109%. Those levels show expansion from existing accounts but also meaningful churn. Management flags competition in cloud software, macroeconomic and geopolitical uncertainty, foreign exchange swings and the need to attract and retain talent. Revenue is seasonal, with the third and fourth quarters historically the strongest, so the path through 2024 will not be linear. On the product side, AvePoint launched Opus for AI-powered information lifecycle management and signed an agreement on February 28, 2024 to invest in the A3Ventures growth equity fund.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2023 | Q3 FY2023 | QoQ | Q4 FY2022 | YoY |
|---|---|---|---|---|---|
| Revenue | $74.6M | $72.8M | +2.6% | $63.6M | +17.3% |
| Gross profit | $55.0M | $52.6M | +4.6% | $45.4M | +21.2% |
| Gross margin | 73.7% | 72.3% | +1.4 pp | 71.3% | +2.4 pp |
| Research & development | $9.4M | $8.6M | +8.9% | $7.3M | +29.4% |
| Sales & marketing | $29.1M | $28.4M | +2.4% | $28.4M | +2.6% |
| General & administrative | $15.6M | $15.8M | -1.6% | $16.6M | -6.3% |
| Total operating expenses | $54.1M | $52.9M | +2.3% | $53.4M | +1.3% |
| Operating income (loss) | $878.0K | -$313.0K | +380.5% | -$8.0M | +110.9% |
| Operating margin | 1.2% | -0.4% | +1.6 pp | -12.7% | +13.8 pp |
| Net income (loss) | $4.4M | -$4.2M | +204.9% | -$11.6M | +138.1% |
| Net margin | 5.9% | -5.8% | +11.8 pp | -18.3% | +24.3 pp |
| Diluted EPS | $0.02 | — | — | -$0.07 | +$0.09 |
Risks
The significant majority of customers integrate AvePoint products with Microsoft offerings such as Azure, SharePoint, and Office 365. Microsoft or other providers could acquire overlapping competitors, develop competing native features, end partnerships with limited notice, or restrict API access through throttling or quotas, which could reduce customer acquisition momentum and renewals.
Microsoft and other cloud platform providers may introduce functionality that competes with AvePoint products or incorporate AvePoint capabilities into native solutions. Reliance on early access to preview Microsoft technology creates further risk of product incompatibility if Microsoft does not preview feature changes.
Management identified material weaknesses in internal control over financial reporting related to the completeness and accuracy of certain information used by control owners. If the remediation plan is insufficient, AvePoint could have material misstatements, restatements, failure to meet reporting obligations, or an adverse SOX 404 opinion.
Unfavorable global economic conditions or reductions in IT spending could cause customers to delay or cancel purchases and lengthen sales cycles. AvePoint has significant customers in financial services, the public sector, and the pharmaceutical and manufacturing industries, so a downturn in those industries or reduced public sector spending could hurt revenue.
Customers have no obligation to renew their subscriptions and may renew for fewer products, shorter renewal terms, or lower pricing, including lower-cost offerings. Acquisitions of customers may also lead to cancellation of contracts, reducing AvePoint's existing and potential customer base.
SMB market acquisition and future revenue growth depend in part on resale, referral, and distribution partners. Partner agreements are generally non-exclusive, partners may favor their own or competing products, and removal of AvePoint products from a major distribution partner's resale platform could harm results of operations.
The majority of AvePoint's SaaS offerings are served from third-party data center hosting facilities operated by Microsoft. Cost increases due to vendor consolidation, regulation, or contract renegotiation may not be passable to customers, and service interruptions, latency, or poor service could impair platform delivery and cause customer dissatisfaction.
AvePoint experienced strong growth in recent periods, including total ARR increasing 23% year-over-year to $264.5 million as of December 31, 2023 and total revenue increasing 17% year-over-year to $271.8 million for the year. Managing this growth requires recruiting, training, and retaining a large number of new employees, especially sales and technical staff, and failure to do so could harm product quality, brand, and results.
International operations expose AvePoint to political and economic instability, sanctions, trade restrictions, foreign exchange fluctuations, and compliance risks including the FCPA and anti-money laundering laws. Multiple ongoing conflicts where outcomes are not possible to predict could increase costs, disrupt sales, and impair access to capital.
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 Q4 FY2023 (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.