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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 10, 2022

 

 

AVEPOINT, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware 001-39048 83-4461709
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer Identification No.)

 

525 Washington Boulevard Suite 1400

Jersey City, New Jersey 07310

(Address of Principal Executive Offices) (Zip Code)

 

(201) 793-1111

(Registrant's telephone number, including area code)

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common Stock, par value $0.0001 per share   AVPT   The Nasdaq Global Select Market
Warrants, each whole warrant exercisable for one share of Common Stock at an exercise price of $11.50 per share   AVPTW   The Nasdaq Global Select Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☒

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On November 10, 2022, AvePoint, Inc. issued a press release (the “AvePoint PR”) announcing its financial results for the quarter ended September 30, 2022. The AvePoint PR is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information under Item 2.02 in this Current Report on Form 8-K, and the related information in the exhibit attached hereto as Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit Number   Description
     
99.1   Press Release, dated November 10, 2022, reporting AvePoint, Inc.’s financial results for the quarter ended September 30, 2022 (furnished pursuant to Item 2.02 of Form 8-K)
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

 

 

 

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  AvePoint, Inc.  
       
       
Date: November 10, 2022 By:  /s/ BRIAN MICHAEL BROWN  
    Brian Michael Brown  
    Chief Legal and Compliance Officer  
       
Date: November 10, 2022 By:  /s/ JAMES CACI  
    James Caci  
    Chief Financial Officer  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT 99.1

AvePoint Announces Third Quarter 2022 Financial Results

Third quarter SaaS revenue of $30.0 million, representing 34% year-over-year growth, 45% adjusted for constant currency
Third quarter total revenue of $62.7 million, representing 16% year-over-year growth, 26% adjusted for constant currency
Total ARR of $191.7 million, representing 30% year-over-year growth, 34% adjusted for FX impact

JERSEY CITY, N.J., Nov. 10, 2022 (GLOBE NEWSWIRE) -- AvePoint (NASDAQ: AVPT), the most advanced SaaS and data management platform provider, today announced financial results for the third quarter ended September 30, 2022. 

“Q3 was another strong quarter for AvePoint despite the uncertain macroeconomic environment, highlighted by 34% ARR growth and 26% revenue growth, both adjusted for the impact of FX,” said Dr. Tianyi Jiang (TJ), CEO and Co-Founder of AvePoint. “Our strong topline performance reflects the ongoing need of companies around the world to secure collaboration data, sustain connections between people and ensure business continuity. At the same time, we continue to thoughtfully invest in a number of strategic growth initiatives while emphasizing robust expense controls across the company. We are excited for a strong close to 2022 and remain well positioned to capture the enormous market opportunity ahead of us.”

Third Quarter 2022 Financial Highlights

Third Quarter 2022 Key Performance Indicators and Business Highlights

Financial Outlook

For the fourth quarter of 2022, the Company expects:

For the full year 2022, the Company now expects:

Quarterly Conference Call

AvePoint will host a conference call today, November 10, 2022, to review its third quarter 2022 financial results and to discuss its financial outlook. The call is scheduled to begin at 4:30pm ET. You may access the call and register with a live operator by dialing 1 (844) 826-3035 for US participants and 1 (412) 317-5195 for outside the US. The conference ID for the call is 5693960. Investors can also join by webcast by visiting https://ir.avepoint.com/events. The webcast will be available live, and a replay will be available following the completion of the live broadcast for approximately 90 days.

About AvePoint

Collaborate with confidence. AvePoint provides the most advanced platform for SaaS and data management to optimize SaaS operations and secure collaboration. More than 9 million cloud users rely on our solutions. Our SaaS solutions are also available to managed service providers via more than 100 cloud marketplaces, so they can better support and manage their small and mid-sized business customers. Founded in 2001, AvePoint is a five-time Global Microsoft Partner of the Year and headquartered in Jersey City, New Jersey. For more information, visit www.avepoint.com. 

Non-GAAP Financial Measures

To supplement AvePoint’s consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. These non-GAAP measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses (including percentage of revenue figures), non-GAAP operating income and non-GAAP operating margin. In order for AvePoint’s investors to be better able to compare its current results with those of previous periods, the company has included a reconciliation of GAAP to non-GAAP financial measures at the end of this press release. These reconciliations adjust the related GAAP financial measures to exclude stock-based compensation expense. AvePoint believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of its historical financial performance. The presentation of AvePoint’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for its financial results prepared in accordance with GAAP, and AvePoint’s non-GAAP measures may be different from non-GAAP measures used by other companies.

Disclosure Information

AvePoint uses the https://ir.avepoint.com/ website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995 and other federal securities laws including statements regarding the future performance of and market opportunities for AvePoint. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: changes in the competitive and regulated industries in which AvePoint operates, variations in operating performance across competitors, changes in laws and regulations affecting AvePoint’s business and changes in AvePoint’s ability to implement business plans, forecasts, and ability to identify and realize additional opportunities, and the risk of downturns in the market and the technology industry. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of AvePoint’s most recent Quarterly Report on Form 10-Q and its registration statement on Form S-1 and related prospectus and prospectus supplements filed with the SEC. Copies of these and other documents filed by AvePoint from time to time are available on the SEC's website, www.sec.gov. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and AvePoint does not assume any obligation and does not intend to update or revise these forward-looking statements after the date of this release, whether as a result of new information, future events, or otherwise, except as required by law. AvePoint does not give any assurance that it will achieve its expectations.

Investor Contact

AvePoint
Jamie Arestia
[email protected]
(551) 220-5654

Media Contact

AvePoint
Nicole Caci
[email protected]  
(201) 201-8143

 
AvePoint, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
       
  Three Months Ended  Nine Months Ended 
  September 30,  September 30, 
  2022  2021  2022  2021 
Revenue:                
SaaS $29,959  $22,410  $84,131  $61,255 
Term license and support  18,288   17,477   42,501   37,292 
Services  10,458   8,143   29,231   21,361 
Maintenance  3,754   5,293   12,262   16,160 
Perpetual license  280   604   606   2,003 
Total revenue  62,739   53,927   168,731   138,071 
Cost of revenue:                
SaaS  7,011   4,866   18,651   13,870 
Term license and support  515   211   1,573   714 
Services  9,113   9,435   25,922   21,528 
Maintenance  189   710   739   1,608 
Total cost of revenue  16,828   15,222   46,885   37,720 
Gross profit  45,911   38,705   121,846   100,351 
Operating expenses:                
Sales and marketing  27,201   25,186   81,429   73,488 
General and administrative  16,365   22,230   48,229   44,186 
Research and development  8,953   19,648   23,247   27,633 
Depreciation and amortization  819   326   1,959   863 
Total operating expenses  53,338   67,390   154,864   146,170 
Loss from operations  (7,427)  (28,685)  (33,018)  (45,819)
Gain on earn-out and warrant liabilities  913   13,650   6,848   13,650 
Interest income, net  16   56   50   80 
Other income (expense), net  48   (299)  (822)  (300)
Loss before income taxes  (6,450)  (15,278)  (26,942)  (32,389)
Income tax expense (benefit)  336   (5,521)  99   (6,633)
Net loss $(6,786) $(9,757) $(27,041) $(25,756)
Net income attributable to and accretion of redeemable noncontrolling interest  (626)  (517)  (1,870)  (1,413)
Net loss attributable to AvePoint, Inc. $(7,412) $(10,274) $(28,911) $(27,169)
Deemed dividends on preferred stock  —   608   —   (32,928)
Net loss available to common shareholders $(7,412) $(9,666) $(28,911) $(60,097)
Basic and diluted loss per share $(0.04) $(0.05) $(0.16) $(0.47)
Basic and diluted shares used in computing loss per share  180,732   176,621   179,563   126,738 
                 


 
AvePoint, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands, except par value)
(Unaudited)
       
  September 30,  December 31, 
  2022  2021 
Assets        
Current assets:        
Cash and cash equivalents $217,781  $268,217 
Short-term investments  2,003   2,411 
Accounts receivable, net of allowance of $1,808 and $838 at September 30, 2022 and December 31, 2021, respectively  56,777   55,067 
Prepaid expenses and other current assets  9,370   8,461 
Total current assets  285,931   334,156 
Property and equipment, net  5,610   3,922 
Goodwill  18,186   — 
Other intangible assets, net  11,260   — 
Operating lease right-of-use assets  16,913   — 
Deferred contract costs  42,364   38,926 
Other assets  14,577   11,734 
Total assets $394,841  $388,738 
Liabilities, mezzanine equity, and stockholders’ equity        
Current liabilities:        
Accounts payable $2,017  $1,824 
Accrued expenses and other liabilities  39,134   35,062 
Current portion of deferred revenue  78,034   74,294 
Total current liabilities  119,185   111,180 
Long-term operating lease liabilities  12,459   — 
Long-term portion of deferred revenue  7,997   8,038 
Earn-out shares liabilities  4,074   10,012 
Other non-current liabilities  5,730   3,943 
Total liabilities  149,445   133,173 
Commitments and contingencies        
Mezzanine equity        
Redeemable noncontrolling interest  12,684   5,210 
Total mezzanine equity  12,684   5,210 
Stockholders’ equity        
Common stock, $0.0001 par value; 1,000,000 shares authorized, 184,455 and 181,822 shares issued and outstanding, at September 30, 2022 and December 31, 2021, respectively  19   18 
Additional paid-in capital  655,968   625,056 
Treasury stock  (21,293)  (1,739)
Accumulated other comprehensive income  2,226   2,317 
Accumulated deficit  (404,208)  (375,297)
Total stockholders’ equity  232,712   250,355 
Total liabilities, mezzanine equity, and stockholders’ equity $394,841  $388,738 
         


 
AvePoint, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
    
  Nine Months Ended 
  September 30, 
  2022  2021 
Operating activities        
Net loss $(27,041) $(25,756)
Adjustments to reconcile net loss to net cash used in operating activities:        
Depreciation and amortization  2,255   863 
Operating lease right-of-use assets expense  4,602   — 
Foreign currency remeasurement loss (gain)  3,026   (161)
Provision for doubtful accounts  1,058   (880)
Stock-based compensation  28,287   50,475 
Gain on disposal of property and equipment  (18)  (15)
Deferred income taxes  (154)  (1,008)
Change in value of earn-out and warrant liabilities  (6,754)  (13,650)
Changes in operating assets and liabilities:        
Accounts receivable and long-term unbilled receivables  (9,931)  (7,002)
Prepaid expenses and other current assets  (1,486)  (10,775)
Deferred contract costs and other assets  (5,166)  (3,269)
Accounts payable, accrued expenses and other liabilities  (4,227)  1,836 
Deferred revenue  8,656   5,377 
Net cash used in operating activities  (6,893)  (3,965)
Investing activities        
Maturities of investments  180,837   — 
Purchases of investments  (180,495)  (638)
Net assets acquired from business combinations and asset acquisitions, net of cash acquired  (18,574)  — 
Capitalization of internal use software  (1,165)  — 
Purchase of property and equipment  (3,420)  (1,445)
Net cash used in investing activities  (22,817)  (2,083)
Financing activities        
Proceeds from recapitalization of Apex shares  —   441,573 
Redemption of redeemable convertible preferred stock  —   (130,925)
Redemption of Legacy AvePoint common stock  —   (106,169)
Payments of transaction fees by Legacy AvePoint  —   (2,998)
Purchase of common stock  (19,554)  (1,631)
Payment of net cash settlement for management options  —   (7,530)
Proceeds from stock option exercises  1,817   4,555 
Proceeds from sale of common shares of subsidiary  —   753 
Repayments of finance leases  (23)  (20)
Net cash (used in) provided by financing activities  (17,760)  197,608 
Effect of exchange rates on cash  (2,966)  32 
Net (decrease) increase in cash and cash equivalents  (50,436)  191,592 
Cash and cash equivalents at beginning of period  268,217   69,112 
Cash and cash equivalents at end of period $217,781  $260,704 
Supplemental disclosures of cash flow information        
Income taxes paid $421  $2,823 
Noncash acquisition $5,635  $— 
         


 
AvePoint, Inc. and Subsidiaries
Non-GAAP Reconciliations
(In thousands)
(Unaudited)
       
  Three Months Ended  Nine Months Ended 
  September 30,  September 30, 
  2022  2021  2022  2021 
Non-GAAP operating income                
GAAP operating loss $(7,427) $(28,685) $(33,018) $(45,819)
Stock-based compensation expense  9,609   32,676   28,287   50,475 
Non-GAAP operating income (loss) $2,182  $3,991  $(4,731) $4,656 
Non-GAAP operating margin  3.5%  7.4%  -2.8%  3.4%
                 
                 
                 
Non-GAAP gross profit                
GAAP gross profit $45,911  $38,705  $121,846  $100,351 
Stock-based compensation expense  667   2,428   1,948   2,790 
Non-GAAP gross profit $46,578  $41,133  $123,794  $103,141 
Non-GAAP gross margin  74.2%  76.3%  73.4%  74.7%
                 
Non-GAAP sales and marketing                
GAAP sales and marketing $27,201  $25,186  $81,429  $73,488 
Stock-based compensation expense  (2,847)  (2,171)  (8,705)  (13,073)
Non-GAAP sales and marketing $24,354  $23,015  $72,724  $60,415 
Non-GAAP sales and marketing as a % of revenue  38.8%  42.7%  43.1%  43.8%
                 
Non-GAAP general and administrative                
GAAP general and administrative $16,365  $22,230  $48,229  $44,186 
Stock-based compensation expense  (5,060)  (13,020)  (14,825)  (19,375)
Non-GAAP general and administrative $11,305  $9,210  $33,404  $24,811 
Non-GAAP general and administrative as a % of revenue  18.0%  17.1%  19.8%  18.0%
                 
Non-GAAP research and development                
GAAP research and development $8,953  $19,648  $23,247  $27,633 
Stock-based compensation expense  (1,035)  (15,057)  (2,809)  (15,237)
Non-GAAP research and development $7,918  $4,591  $20,438  $12,396 
Non-GAAP research and development as a % of revenue  12.6%  8.5%  12.1%  9.0%