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AvePoint (AVPT)
NASDAQ:AVPT
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AvePoint
(NASDAQ:AVPT)
Rating:65Neutral
Price Target:
$20.50
▲( 12.45% Upside)
Positive Factors
AI Adoption
AVPT continues to benefit from Copilot adoption as enterprises prioritize AI adoption, enhancing its role in the AI value chain.
Currency Impact
A $10.5 million currency tailwind is expected to boost the fiscal 2025 ARR estimate.
Revenue Growth
AvePoint beat revenue consensus by $4.3 million driven by continued SaaS momentum across all geographies and growth acceleration from large enterprises.
Negative Factors
Revenue Outlook
The revenue and operating margin outlook for the upcoming year is considerably below expectations.
AvePoint (AVPT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.70B
Dividend YieldN/A
Average Volume (3M)1.10M
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue Growth21.70%
EPS Growth-67.95%
CountryUS
Employees2,934
SectorTechnology
Sector Strength77
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.07
Shares Outstanding203,233,200
10 Day Avg. Volume1,675,779
30 Day Avg. Volume1,103,600
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)13.00
Price to Sales (P/S)0.00
P/FCF Ratio35.38
Enterprise Value/Market Cap0.96
Enterprise Value/Revenue2.88
Enterprise Value/Gross Profit14.33
Enterprise Value/Ebitda268.29
Forecast
1Y Price Target
$20.67Price Target Upside13.38% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
AvePoint Business Overview & Revenue Model
Company DescriptionAvePoint, Inc. (AVPT) is a global leader in data management solutions, focusing primarily on optimizing SaaS operations and enhancing data protection for organizations. The company operates in the information technology sector, offering cloud-based software solutions that enable businesses to manage, migrate, and protect their digital data across various platforms, including Microsoft 365, SharePoint, and Teams. AvePoint's core products and services are designed to enhance collaboration, ensure compliance, and improve data resilience in a rapidly evolving digital landscape.
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, with positive EBIT and EBITDA margins. The balance sheet is robust, with low debt levels and a strong equity position, supporting financial stability. Cash flows have improved, although 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 |
| 16.53M | 14.72M | 16.74M | 0.00 | 0.00 | Net Debt |
| -274.20M | -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
18.23
Price Trends
16.01
Positive
16.63
Positive
15.15
Positive
Market Momentum
0.80
Positive
57.79
Neutral
7.38
Positive
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 18.23 is above the 20-day moving average (MA) of 18.00, above the 50-day MA of 16.01, and above the 200-day MA of 15.15, indicating a bullish trend. The MACD of 0.80 indicates Positive momentum. The RSI at 57.79 is Neutral, neither overbought nor oversold. The STOCH value of 7.38 is Positive, 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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.77B | ― | -3.09% | ― | -1.96% | 19.43% | |
66 Neutral | $4.62B | ― | -0.71% | ― | 34.37% | 95.80% | |
65 Neutral | $3.70B | ― | -8.39% | ― | 21.70% | -67.95% | |
61 Neutral | $3.67B | 8.73 | -8.85% | ― | -14.03% | -167.03% | |
61 Neutral | $11.29B | 10.07 | -7.05% | 2.96% | 7.47% | -10.75% | |
59 Neutral | $2.55B | 25.63 | -41.63% | ― | 13.21% | 109.61% |
* Technology Sector Average
Performance Comparison
AVPT
AvePoint
18.23
9.12
100.11%
STNE
Stoneco
13.28
-1.04
-7.26%
DOCN
DigitalOcean Holdings
27.99
-9.34
-25.02%
EVCM
EverCommerce
9.72
-0.36
-3.57%
RELY
Remitly Global
22.33
8.85
65.65%
AvePoint Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 4.77%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call reflects strong financial performance and strategic execution, with significant growth in revenue, ARR, and SaaS adoption. However, the decrease in cash flow and cautious guidance due to potential macroeconomic risks temper the overall outlook.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Total revenues in Q1 were $93.1 million, up 25% year-over-year and above the high-end of guidance. SaaS revenue grew 34% year-over-year.
Record ARR and Net New ARR
Total ARR reached $345.5 million, representing year-over-year growth of 26%. Net new ARR was $18.5 million, a 57% increase year-over-year, marking the highest ever as a public company.
Increased SaaS Adoption
SaaS comprised 74% of total revenues, up from 69% a year ago, with significant growth in key regions: North America (31%), EMEA (36%), and APAC (40%).
Channel Strategy Success
ARR from the channel increased to 55%, and 63% of incremental ARR came through the channel, reflecting a strategic priority to drive more business through channel partnerships.
Operational and Profitability Improvements
Operating margin expanded by nearly 550 basis points to 14.4%, with operating income at $13.4 million, above guidance.
Negative Updates
Decreased Cash Flow from Operations
Cash generated from operations was $495,000, a decline from $7.8 million in the same quarter of the previous year, primarily due to one-time tax payments.
Potential Macroeconomic Risks
Despite strong demand signals, guidance remains cautious due to the potential risks from the current geopolitical environment in the second half of the year.
Maintenance Revenue Decline
Maintenance revenue declined year-over-year both in dollars and as a percentage of total revenues.
Company Guidance
During the AvePoint, Inc. First Quarter 2025 Earnings Conference Call, the company reported strong financial and operational performance, exceeding their guidance with total revenues of $93.1 million, representing a 25% year-over-year increase. The SaaS revenue, a key driver of the business, grew by 34%, contributing to 74% of total revenues. Total ARR reached $345.5 million, marking a 26% increase from the previous year. Net new ARR was $18.5 million, reflecting a 57% organic growth year-over-year. The company highlighted its strategic focus on AI-driven data management solutions, emphasizing the growing demand for integrated platforms to address data security, governance, and compliance needs. Looking forward, AvePoint provided guidance for the second quarter with expected revenues between $95.3 million and $97.3 million, and for the full year, they anticipate ARR growth of 26% to 28%, with total revenues reaching between $397.4 million and $405.4 million. The company continues to focus on maintaining profitability while strategically investing in growth opportunities.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.