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AvePoint (AVPT)
NASDAQ:AVPT
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AvePoint
(NASDAQ:AVPT)
67Neutral
Positive Factors
Financial Performance
AvePoint is developing a strong track record of financial execution, highlighted by durable top-line growth, improving profitability, and strong cash flow generation.
Growth Potential
AvePoint has a long and durable growth runway in the data management market with secular demand tailwinds, continued product innovation, and improving cross-sell execution.
Technical Differentiation
AvePoint's technical differentiation centers on its holistic data management platform, which offers streamlined workflow, better user experience, cost savings, and built-in interoperability.
Negative Factors
Guidance Shortfall
For the full year, revenue guidance fell short of consensus by $6.3 million.
Investment Impact
The guide for operational income was below estimates due to increased investments across product and go-to-market strategies.
Revenue Outlook
The revenue and operating margin outlook for the upcoming year is considerably below expectations.
AvePoint (AVPT) vs. S&P 500 (SPY)
Market Cap
$3.37B
Dividend YieldN/A
Average Volume (3M)1.04M
Price to Earnings (P/E)―
Beta (1Y)1.16
Revenue Growth21.58%
EPS Growth-32.72%
CountryUS
Employees2,934
SectorTechnology
Sector Strength65
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.16
Shares Outstanding202,874,440
10 Day Avg. Volume752,578
30 Day Avg. Volume1,040,999
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.83
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit11.33
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$18.67Price Target Upside12.47% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
AvePoint Business Overview & Revenue Model
Company DescriptionAvePoint, Inc. provides Microsoft 365 data management solutions worldwide. It offers SaaS platform cloud-hosted collaboration systems by providing suite of software products. The company focuses on data protection, governance, compliance management extensions for Microsoft 365, Dynamics 365, Salesforce, and Google Workspace. In addition, the company offers software solutions for Microsoft 365, including microsoft teams, sharepoint online, exchange online, onedrive, project online, planner, yammer and other public folders. The company was incorporated in 2001 and is headquartered in Jersey City, New Jersey.
How the Company Makes MoneyAvePoint generates revenue primarily through the sale of its cloud-based software solutions and services. The company's key revenue streams include subscription-based licensing for its software-as-a-service (SaaS) products, professional services for data migration and system integration, and support and maintenance contracts. AvePoint's strategic partnerships with major technology providers, such as Microsoft, further bolster its market presence and contribute to its earnings by expanding its reach and enhancing its product offerings. Additionally, the company's focus on innovation and development of new features and tools helps maintain its competitive edge and drive customer acquisition and retention, thereby supporting its revenue growth.
AvePoint Financial Statement Overview
Summary
AvePoint demonstrates strong revenue growth and improving operational efficiency, reflected in positive EBIT and EBITDA margins. The balance sheet is robust, with low debt levels and a strong equity position, supporting financial stability. While cash flows have improved, consistent net losses remain a concern.Income Statement
AvePoint has shown consistent revenue growth with a notable increase from $271.8M in 2023 to $330.5M in 2024. The gross profit margin improved slightly, reflecting effective cost management. However, net losses persist, with a negative net profit margin, indicating ongoing profitability challenges. The EBIT and EBITDA margins have turned positive in 2024, suggesting some operational improvements.65
Positive
Balance Sheet
The balance sheet is robust with a strong equity position. The debt-to-equity ratio is low, indicating low financial leverage and risk. Return on equity remains negative due to net losses, but the equity ratio is strong at around 52%, showcasing financial stability and resilience.72
Positive
Cash Flow
AvePoint's cash flow from operations has improved significantly, turning positive in recent years, and free cash flow has grown substantially by 175% from 2023 to 2024. The operating cash flow to net income ratio is strong, suggesting good cash generation relative to accounting profits, despite ongoing net losses.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 330.48M | 271.82M | 232.34M | 191.91M | 151.53M | Gross Profit |
| 247.96M | 194.37M | 167.22M | 139.25M | 111.24M | EBIT |
| 7.17M | -15.35M | -41.07M | -53.49M | -15.44M | EBITDA |
| 7.17M | -10.66M | -30.12M | -52.25M | -14.38M | Net Income Common Stockholders |
| -29.09M | -21.73M | -38.69M | -33.24M | -16.97M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 290.90M | 226.88M | 229.81M | 270.63M | 70.10M | Total Assets |
| 519.05M | 442.58M | 415.53M | 388.74M | 169.05M | Total Debt |
| 9.91M | 14.72M | 16.74M | 0.00 | 0.00 | Net Debt |
| -280.83M | -208.44M | -210.45M | -268.22M | -69.11M | Total Liabilities |
| 248.11M | 217.74M | 172.38M | 133.17M | 148.87M | Stockholders Equity |
| 270.95M | 210.60M | 229.15M | 250.35M | 17.13M |
| Cash Flow | Free Cash Flow | |||
| 85.85M | 31.17M | -6.24M | 2.57M | 18.10M | Operating Cash Flow |
| 88.89M | 34.69M | -774.00K | 5.03M | 19.12M | Investing Cash Flow |
| -2.60M | -5.65M | -21.45M | -3.38M | 1.37M | Financing Cash Flow |
| -15.54M | -33.67M | -17.15M | 198.62M | 35.56M |
AvePoint Technical Analysis
Positive
16.60
Price Trends
15.09
Positive
16.59
Positive
14.53
Positive
Market Momentum
0.36
Negative
64.58
Neutral
93.91
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVPT, the sentiment is Positive. The current price of 16.6 is above the 20-day moving average (MA) of 14.88, above the 50-day MA of 15.09, and above the 200-day MA of 14.53, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 64.58 is Neutral, neither overbought nor oversold. The STOCH value of 93.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AVPT.
AvePoint Risk Analysis
AvePoint disclosed 24 risk factors in its most recent earnings report. AvePoint reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AvePoint Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $3.20B | 28.86 | 7.87% | ― | 5.03% | ― | |
68 Neutral | $1.79B | ― | -5.21% | ― | 3.46% | 7.88% | |
67 Neutral | $3.37B | ― | -12.13% | ― | 21.58% | -32.72% | |
64 Neutral | $4.13B | ― | -6.19% | ― | 33.85% | 70.39% | |
63 Neutral | $3.77B | 8.73 | -9.48% | ― | -8.52% | -180.71% | |
61 Neutral | $2.84B | 35.54 | -41.63% | ― | 12.66% | 2097.85% | |
59 Neutral | $10.75B | 10.37 | -6.64% | 3.00% | 7.30% | -12.02% |
* Technology Sector Average
Performance Comparison
AVPT
AvePoint
16.60
8.46
103.93%
SWI
SolarWinds
18.49
6.79
58.03%
STNE
Stoneco
13.89
-2.84
-16.98%
DOCN
DigitalOcean Holdings
31.48
-2.76
-8.06%
EVCM
EverCommerce
9.68
0.18
1.89%
RELY
Remitly Global
20.27
5.36
35.95%
AvePoint Earnings Call Summary
Earnings Call Date:Feb 27, 2025
(Q4-2024)
| % Change Since: -2.81%|
Next Earnings Date:May 08, 2025
Earnings Call Sentiment Positive
AvePoint's earnings call reflects a strong performance with significant ARR and SaaS revenue growth, improved profitability, and strategic expansion into multi-cloud environments. The acquisition of Ydentic enhances their platform capabilities. Despite some challenges with term licenses and U.S. federal exposure, the company's outlook remains positive, supported by robust demand and strategic investments.Q4-2024 Updates
Positive Updates
Accelerated Annual Recurring Revenue Growth
Total ARR growth accelerated to 24% year-over-year, with a 25% increase when adjusted for FX. Net new ARR growth was 30% year-over-year, close to the record 31% growth in the previous quarter.
Strong SaaS Revenue Performance
Fourth quarter SaaS revenue was $64.8 million, growing 43% year-over-year and representing 73% of total Q4 revenues. On a constant currency basis, SaaS revenues grew 44% year-over-year.
Improved Profitability and Cash Flow Generation
Q4 non-GAAP operating margin was 16.2%, above guidance and improved from a year ago, with record cash flow generation of $32.8 million from operating activities in Q4 and nearly $90 million for the full year.
Successful Strategic Acquisition
AvePoint acquired Ydentic to enhance multi-tenant management capabilities for Microsoft Managed Services Providers, driving competitive differentiation and economic opportunity for MSPs.
Expansion into Multi-Cloud Environments
Release of new data security solutions for Google Workspace and Google Cloud, reinforcing commitment to securing and protecting data across multi-cloud environments.
Record Gross and Net Retention Rates
Both gross and net retention rates improved to all-time highs, with gross retention rate at 89% and net retention rate at 111% adjusted for FX.
Negative Updates
Decline in Term License and Support Revenue
Term license and support revenue declined to $9.4 million, representing 11% of Q4 revenues, as more customers opt for SaaS offerings.
Challenges in U.S. Federal Exposure
Exposure to U.S. federal sector risk due to potential staff reductions and renewal cycles, narrowing down to about 2% of total ARR.
Impact of Foreign Exchange
FX impact noted as a factor affecting revenue growth relative to ARR growth, contributing to a wider gap between ARR growth and revenue growth in 2025.
Company Guidance
During the AvePoint Inc. Fourth Quarter 2024 Earnings Call, the company provided robust guidance for 2025, highlighting projected total ARR growth between 23% to 25%, translating into net new ARR of $77.3 million, or a 24% year-over-year growth at the midpoint. They also forecast total revenues of $380 million to $388 million, indicating a growth rate of 15% to 17%, with constant currency revenue growth expected to be between 17% and 19%. The company plans to achieve a non-GAAP operating income of $52.3 million to $55.3 million, underscoring their commitment to profitable growth. Additionally, they aim to maintain a Rule of 40 score in the range of 37 to 39 on a reported basis, adjusting for FX to reflect a range of 38 to 40. These metrics demonstrate AvePoint's continued focus on leveraging strategic investments to drive long-term success while balancing immediate profitability.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.