Education
About Us
Working with TipRanks
Follow Us
AvePoint (AVPT)
NASDAQ:AVPT
Top Page
AvePoint
(NASDAQ:AVPT)
Select Model
Select Model
Rating:62Neutral
Price Target:
$16.00
▲(3.56% Upside)
AvePoint's strong financial performance and positive earnings call sentiment are offset by technical analysis indicating bearish momentum and valuation concerns due to negative earnings. The company's growth prospects are promising, but profitability challenges and market uncertainties weigh on the overall score.
Positive Factors
Revenue Growth
Consistent revenue growth demonstrates expanding market reach and product adoption, supporting long-term business stability and potential market leadership.
SaaS Growth
Strong SaaS growth indicates a successful transition to a scalable subscription model, enhancing recurring revenue streams and customer retention.
Operational Efficiency
Improved operational efficiency reflects effective cost management and strategic execution, which can lead to better profitability and competitive positioning.
Negative Factors
Profitability Challenges
Ongoing profitability challenges can limit reinvestment in growth initiatives and impact shareholder returns, necessitating strategic adjustments.
Gross Margin Pressure
Pressure on gross margins due to service revenue mix can affect overall profitability, requiring focus on higher-margin product offerings to sustain margins.
Federal Sector Uncertainty
Uncertainty in the federal sector could impact revenue predictability and growth, necessitating strategic adjustments to mitigate potential risks.
AvePoint (AVPT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.34B
Dividend YieldN/A
Average Volume (3M)1.53M
Price to Earnings (P/E)―
Beta (1Y)1.19
Revenue Growth24.41%
EPS Growth40.20%
CountryUS
Employees2,934
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.06
Shares Outstanding211,926,800
10 Day Avg. Volume1,213,422
30 Day Avg. Volume1,526,601
Financial Highlights & Ratios
PEG Ratio-3.13
Price to Book (P/B)11.27
Price to Sales (P/S)9.18
P/FCF Ratio35.33
Enterprise Value/Market Cap1.20
Enterprise Value/Revenue10.76
Enterprise Value/Gross Profit14.36
Enterprise Value/Ebitda129.13
Forecast
1Y Price Target
$22.31Price Target Upside44.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
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 subscription-based software licenses, which allow customers to access its data management and compliance tools. The company offers various pricing tiers based on the number of users or the volume of data managed, providing scalable solutions to meet the needs of different organizations. Additionally, AvePoint earns revenue from professional services, including consulting and implementation support, which help clients optimize their use of AvePoint products. Strategic partnerships with major technology providers like Microsoft enhance its market reach and contribute to customer acquisition, further boosting its revenue streams.
AvePoint Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with record revenue achievement and significant SaaS growth, alongside strategic advancements in multi-cloud governance. Despite some pressure on gross margin and uncertainties in the federal sector, the overall outlook remains positive with continued confidence in achieving long-term growth targets.Q2-2025 Updates
Positive Updates
Record Revenue Achievement
AvePoint surpassed $100 million in quarterly revenue for the first time, reflecting a 31% year-over-year growth and marking a significant milestone on the path to $1 billion in ARR by 2029.
Strong SaaS Growth
SaaS revenue reached $77.3 million, a 44% year-over-year increase, comprising 76% of total Q2 revenues, the highest ever quarterly mix.
Continued ARR Growth
Total ARR reached $367.6 million, representing 27% year-over-year growth, with net new ARR of $22.1 million, the highest dollar amount added to date.
Improved Operational Metrics
AvePoint achieved a 700 basis point year-over-year expansion in non-GAAP operating margin, reaching 18.4%.
Expansion in Multi-Cloud Governance
New command centers launched, including Risk Posture, Optimization and ROI, and Resilience Command Centers, enhancing data protection and cost optimization capabilities.
Negative Updates
Services Revenue Impact on Gross Margin
A higher mix of low-margin services revenue contributed to a decline in gross margin to 74.8% from 76.2% in the previous year.
Challenges in Federal Sector
Potential uncertainty in the second half of the year, particularly in the public sector, was noted, impacting guidance considerations.
Company Guidance
During AvePoint's Second Quarter 2025 Earnings Call, the company reported surpassing $100 million in quarterly revenue for the first time, with total revenues reaching $102 million, reflecting a 31% year-over-year increase. SaaS revenues were a standout, growing 44% year-over-year to $77.3 million and accounting for 76% of total revenues. The company also saw significant ARR growth, ending the quarter at $367.6 million, up 27% from the prior year. Operating margin expanded to 18.4% from 11.2% the previous year, demonstrating improved operational efficiency. AvePoint's updated guidance projects full-year total ARR between $412.8 million and $418.8 million, with total revenues expected to grow 23% to 24%, reaching $406.6 million to $410.6 million. The company is focusing on profitable growth and innovation, particularly in governance and AI-driven solutions, positioning itself strategically in a multi-cloud environment.AvePoint Financial Statement Overview
Summary
AvePoint shows strong revenue growth and effective cost management with robust gross profit margins. The balance sheet is stable with low leverage, but profitability remains a challenge, impacting return on equity. Positive cash flow trends support operational needs and future growth.Income Statement
AvePoint's revenue has shown consistent growth, with a TTM growth rate of 6.89%. The gross profit margin remains strong at approximately 75%, indicating effective cost management. However, the company is still facing challenges in achieving profitability, as evidenced by a negative net profit margin of -2.26% in the TTM. The EBIT and EBITDA margins have improved over time, reflecting better operational efficiency, but the company still needs to address its net losses.65
Positive
Balance Sheet
AvePoint maintains a solid balance sheet with a low debt-to-equity ratio of 0.026, indicating minimal leverage and financial risk. The equity ratio is healthy, suggesting a strong capital structure. However, the return on equity is negative, reflecting ongoing net losses and the need for improved profitability to enhance shareholder returns.70
Positive
Cash Flow
The company has demonstrated positive cash flow trends, with free cash flow growth of 2.86% in the TTM. The operating cash flow to net income ratio is 0.48, indicating that cash generation is improving relative to net income. The free cash flow to net income ratio is high at 0.93, showing efficient cash management despite net losses.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 373.07M | 330.48M | 271.82M | 232.34M | 191.91M | 151.53M |
| Gross Profit | 279.55M | 247.96M | 194.37M | 166.06M | 139.25M | 111.24M |
| EBITDA | 31.09M | 12.55M | -10.66M | -30.12M | -52.25M | -14.38M |
| Net Income | -8.43M | -29.09M | -21.73M | -41.63M | -35.22M | -17.00M |
Balance Sheet | ||||||
| Total Assets | 700.13M | 519.05M | 442.58M | 415.53M | 388.74M | 169.05M |
| Cash, Cash Equivalents and Short-Term Investments | 430.14M | 290.90M | 226.88M | 229.81M | 270.63M | 70.10M |
| Total Debt | 11.59M | 16.53M | 14.72M | 16.74M | 0.00 | 0.00 |
| Total Liabilities | 256.99M | 248.11M | 217.74M | 172.38M | 133.17M | 148.87M |
| Stockholders Equity | 443.13M | 269.15M | 210.60M | 229.15M | 250.35M | 17.13M |
Cash Flow | ||||||
| Free Cash Flow | 103.00M | 85.85M | 31.17M | -6.24M | 2.57M | 18.10M |
| Operating Cash Flow | 110.49M | 88.89M | 34.69M | -774.00K | 5.03M | 19.12M |
| Investing Cash Flow | -30.35M | -2.60M | -5.65M | -21.45M | -3.38M | 1.37M |
| Financing Cash Flow | 147.08M | -15.54M | -33.67M | -17.15M | 198.62M | 35.56M |
AvePoint Technical Analysis
Negative
15.45
Price Trends
16.91
Negative
17.65
Negative
17.17
Negative
Market Momentum
-0.22
Negative
41.91
Neutral
10.81
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AVPT, the sentiment is Negative. The current price of 15.45 is below the 20-day moving average (MA) of 15.79, below the 50-day MA of 16.91, and below the 200-day MA of 17.17, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 41.91 is Neutral, neither overbought nor oversold. The STOCH value of 10.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AVPT.
AvePoint Risk Analysis
AvePoint disclosed 25 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | 3.37B | 29.04 | -72.17% | ― | 13.29% | 79.98% | |
69 Neutral | 2.15B | -103.94 | -2.82% | ― | -7.25% | 51.12% | |
69 Neutral | 3.44B | 267.15 | 1.84% | ― | 35.12% | 0.00% | |
62 Neutral | $3.34B | ― | -2.60% | ― | 24.41% | 40.20% | |
56 Neutral | 5.06B | -27.65 | -10.95% | ― | -20.82% | -154.29% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
AVPT
AvePoint
15.45
3.79
32.50%
SPSC
SPS Commerce
107.93
-84.88
-44.02%
TENB
Tenable Holdings
29.62
-10.01
-25.26%
PAYO
Payoneer
6.57
-0.85
-11.46%
CLBT
Cellebrite DI
17.26
0.01
0.06%
DOCN
DigitalOcean Holdings
36.33
-4.45
-10.91%
AvePoint Corporate Events
Delistings and Listing ChangesPrivate Placements and Financing
AvePoint Completes Redemption of Public Warrants
Neutral
Jul 16, 2025
On July 16, 2025, AvePoint announced the completion of the redemption of its outstanding public warrants, which were initially issued under a 2019 Warrant Agreement. This redemption resulted in the cessation of warrant trading on Nasdaq as of July 11, 2025, while the company’s common stock continues to trade under the symbol ‘AVPT’. The redemption generated approximately $12.1 million in cash proceeds from exercised warrants, with unexercised warrants redeemed for a nominal price, leaving AvePoint with no outstanding warrants and over 211 million shares of common stock.
Business Operations and Strategy
AvePoint Announces Redemption of Outstanding Public Warrants
Neutral
Jun 10, 2025
On June 9, 2025, AvePoint, Inc. announced the redemption of all its outstanding public warrants to purchase shares of its common stock, originally issued under a 2019 Warrant Agreement. The redemption is set for July 9, 2025, at a price of $0.01 per warrant, with unexercised warrants becoming void post-redemption. This move reflects AvePoint’s strategic decision to streamline its equity structure, potentially impacting warrant holders who must decide whether to exercise their warrants at $11.50 per share before the deadline.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.