Avepoint, Inc. · NASDAQ:AVPT
Avepoint — Apex Technology Acquisition — SPAC Merger (February 2021)
61 slides from Avepoint's SPAC merger presentation, Feb 19, 2021
Slide 1: AvePoint Analyst Day Presentation
AvePoint Analyst Day Presentation February 19, 2021 Collaborate with Confidence Accessible content is available upon request. AvePoint Analyst Day Presentation February 19, 2021 Collaborate with Confidence Accessible content is available upon request.
Slide 2: Disclaimer
This presentation (“Presentation”) is for informational purposes only. This Presentation shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solicitation or sale w
Slide 3: Audio and video setup ground rules
• Let’s test our setup. Audio ON First • Roundtable test: mute check / video check. Audio OFF things first • Can you see my screen? Video? Video ON • Function test: chat, raise hand, participants. Video OFF • Choppy? Try “Turn off incoming video” under More. Chat • Let’s set some ground rules to kee
Slide 4: Agenda
Agenda APEX AvePoint Product & Go-To- Introduction Story Technology Market Financials Summary 4 ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. Agenda APEX AvePoint Product & Go-To- Introduction Story Technology Market Financials Summary 4 ©AvePoint, I
Slide 5: Apex Introduction
Jeff Epstein Co-CEO and CFO, Apex Apex Introduction 5Jeff Epstein Co-CEO and CFO, Apex Apex Introduction 5
Slide 6: Apex Executive Team and Board
Apex Technology Acquisition Corp. (NASDAQ: APXT) Executive Team and Board Jeff Epstein Brad Koenig Co-CEO and CFO Co-CEO — Operating Partner at Bessemer Venture Partners— Professional career: Partner, 15+ years as the Global Head of Technology Investment Banking at Goldman Sachs — Advises over 100 p
Slide 7: AvePoint is the Leading Data Management Solutions Provider for the Microsoft Cloud
AvePoint is the Leading Data Management Solutions Provider for the Microsoft Cloud A Data Management Leader in Massive and Rapidly Growing Microsoft 2020E Strong Cloud Marketplace Financial Performance • TAM growth to ~$33bn by 2022 $148mm - $151mm Large, Established Global Presence 2 Revenue • Over
Slide 8: AvePoint Story
Tianyi (“TJ”) Jiang Chief Executive Officer, AvePoint AvePoint Story 8Tianyi (“TJ”) Jiang Chief Executive Officer, AvePoint AvePoint Story 8
Slide 9: Our History of Innovation
Our History of Innovation Subscription Conversion Cloud Acceleration Policies & Insights (PI); Partner Portal MyHub for Microsoft 365 (AOS for Partners) 2020 2017 DocAve V6 & Backup for $148m- Governance Cloud Records Exchange Automation V1 AvePoint’s Virtual $151m 2017 2001 AvePoint 2012 Assistant
Slide 10: Data Growth and the Cloud Have Entirely Changed the IT Landscape
Data Growth and the Cloud Have Entirely Changed the IT Landscape “Explosive” Enterprise Digital Transformation / Data Growth Shift to Cloud CAGR of 1 2 CAGR of enterprise data 26% 21% cloud storage Data Loss Security issues Compliance Behavior Digital Enterprises Deploying Complex Environments Colla
Slide 11: Digital Transformation Has Accelerated During the Pandemic
Digital Transformation Has Accelerated During the Pandemic, With Microsoft Cloud Gaining Significant Momentum “We have seen two years’ worth of digital transformation in two months.“ Satya Nadella, (04/29/2020) $48.4bn 4 Cloud LTM Revenue Microsoft Market Share Productivity and 7 5 6 IaaS SaaS Colla
Slide 12: We Bridge the Gap Between What Microsoft Cloud Offers and What the Enterprise Requires
We Bridge the Gap Between What Microsoft Cloud Offers and What the Enterprise Requires What Microsoft Cloud Offers What the Enterprise Requires Seamless Collaboration Transformation Office Integration Governance Better Decision Making Compliance Office Tools Cloud On-Premises Leader in Digital Trans
Slide 13: AvePoint Solves Data Management Challenges at Any Stage in the Customer Cloud Journey
AvePoint Solves Data Management Challenges at Any Stage in the Customer Cloud Journey • Information Lifecycle Management • Content & Collaboration Security • File Analysis and Discovery • Delegated Administration • Operational Governance/SaaS Mgmt • Data Retention • Managed, Automated End-User Servi
Slide 14: Customer testimonial: Devonport City Council
We have true records “ management governance within SharePoint… most importantly, users are working the way they want. They’re using the apps that they normally use and doing everything in place. Debbie Murphy, Records Officer Devonport City Council, Tasmania, Australia Click here for Case Study ©Av
Slide 15: AvePoint Advantage
AvePoint Advantage Limitations of Existing Solutions Microsoft Cloud Utilizes full benefits of Microsoft Cloud Lack Microsoft expertise Focus Data Protection Protects and prioritizes data Challenged data protection Significant expertise in compliance Compliance Do not adequately address compliance r
Slide 16: Why out-of-the-box isn't enough
Why out-of- the-box isn’t enough… Click here for Case Study 16 ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. Why out-of- the-box isn’t enough… Click here for Case Study 16 ©AvePoint, Inc. All rights reserved. Confidential and proprietary information
Slide 17: Customer ROI by the Numbers
Customer ROI by the Numbers 94% 500k Teams adoption achieved $5.4 savings: $1 spend for our after 1 mo of governance average Cloud Governance 1 implementation customer Reduced Risk 20mm 100K Example fine reduction on $2 savings: $1 spend est. 75mm International Traffic in yearly savings of 5000-seat
Slide 18: AvePoint Realizes the Benefits of Deep Focus on the Microsoft Cloud
AvePoint Realizes the Benefits of Deep Focus on the Microsoft Cloud Existing Horizontal Providers 365 Vertical Key Benefits of ‘Vertical’ Approach More efficient go-to-market / higher unit economics Transformation Efficient R&D spend by not being “all things to all people” Governance Greater focus a
Slide 19: Leader in Microsoft data management solutions
Leader in Microsoft 365 data management solutions Microsoft Alliance • Microsoft Designated Experts; Member Better Together Since 2001 of Several Product Councils • One of the Largest Microsoft 365 Focused R&D Team Outside of Microsoft • One of the Largest 3rd Party SaaS Platform Built for Microsoft
Slide 20: Large and Growing Addressable Market
Large and Growing Addressable Market Digital Transformation TAM $1.8tn Security Cloud Integration 4 by 2022 1 2 Compliance & Migration Additional $7.2bn $3.1bn ~$33bn Cloud 5 by 2022 MSFT Cloud Growth 3 DPaaS $4.8bn 6 ~$5bn AvePoint Growth Outlook 2020 Future ~13% MSFT 7 ~$1bn Microsoft 365 Users 25
Slide 21: Experienced and Proven Management Team
Experienced and Proven Management Team Tianyi (“TJ”) Jiang Xunkai (“Kai”) Gong Brian Brown Sophia Wu Chief Executive Officer Executive Chairman General Counsel & Chief Financial Officer Chief Operating Officer 23 Years Industry Exp. 35 Years Industry Exp. 20 Years Industry Exp. 22 Years Industry Exp
Slide 22: AvePoint Story Summary
AvePoint Story Summary We are the established SaaS leader in Microsoft cloud collaboration security & governance The total addressable market is expansive & very well defined Our disciplined execution positions us for an explosive growth globally, at scale 22 ©AvePoint, Inc. All rights reserved. Con
Slide 23: Product & Technology
Mario Carvajal Chief Strategy officer, AvePoint Product & Technology 23Mario Carvajal Chief Strategy officer, AvePoint Product & Technology 23
Slide 24: Common M365 journey customer scenarios
Common M365 journey customer scenarios Must maintain business critical Require more functionality Will seek all of their data protection, workloads running on owned servers to consolidate from legacy management, administration, and and data centers on-premises collaboration systems to operational go
Slide 25: Our Global Cloud Instances Ensure Your Data Sovereignty
Our Global Cloud Instances Ensure Your Data Sovereignty AvePoint Cloud Multiple Global Cloud Instances • Hyper Scale; Regional Redundancy; • Cloud Service Resiliency; • Data Residency Availability; • Geo Replication 99.5% Availability | 24/7 Support Uptime backed by Microsoft Azure and World-Class S
Slide 26: Privacy & Security at AvePoint
Privacy & Security at AvePoint AvePoint is committed to developing, implementing, and maintaining appropriate administrative, technical, and physical safeguards within the products and services we provide and within our own systems. OUR VULNERABILITY PRIVACY & ISO COMMITMENT REPORTING PRIVACY CERTIF
Slide 27: AvePoint, Inc.
©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. 27 ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. 27
Slide 28: Transformation
Transformation 28 ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. Transformation 28 ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc.
Slide 29: Governance
Governance 29 ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. Governance 29 ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc.
Slide 30: Governance
Governance ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. 30Governance ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. 30
Slide 31: AvePoint, Inc.
©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc.
Slide 32: Compliance
Compliance ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. 32Compliance ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. 32
Slide 33: Compliance
Compliance ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. 33Compliance ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. 33
Slide 34: Product portfolio capabilities
• Cloud migration and consolidation FLY • Data protections, backup, recover • Delegated Administration • Insights for policy automation • Data replication • Data migration Cloud Governance, • Access to IT resources without the IT bottlenecks MyHub • Microservices • AvePoint Cloud Insights, Cloud Mgm
Slide 35: Product & Technology Summary
Product & Technology Summary Deliver products designed for cloud-enabled transformation Provide full spectrum of solutions designed to alleviate cloud collaboration complexity, security risk, and operational efficiency Tailor solutions for global enterprise organizations, small business, and channel
Slide 36: 15 minute break
15 minute break 3615 minute break 36
Slide 37: Go-To-Market
Tom Lin Chief Customer Officer, AvePoint Go-To-Market 37Tom Lin Chief Customer Officer, AvePoint Go-To-Market 37
Slide 38: Effective Global Go-to-Market Sales Organization
Effective Global Go-to-Market Sales Organization Sales Segmentation GTM Model Customer Segment Awareness Over $2.5bn Lead Generation Primarily Direct, Some Lead Qualification $250mm to $2.5bn Indirect (Qualify/ Disqualify/Recycle) Opportunities Less than $250mm with 100% Indirect Over 500 Users (VAR
Slide 39: Customer Journey
Customer Journey Achievable plan to maximize customer time to value Pre-Sales Post-Sales Customer Iterative Purchases ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. 39Customer Journey Achievable plan to maximize customer time to value Pre-Sales Post-S
Slide 40: Representative Customers: Diversified Blue Chip Base
Representative Customers: Diversified Blue Chip Base Communications Retail / Consumer Pharma & Health Financial Services Gov’t / Education High Technology US Treasury US Department Department of State ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. 40R
Slide 41: Case Study: US Department of State
Case Study: US Department of State The Challenge • 30,000+ employees • Protect and manage 13+ TB of content in SharePoint 2010 • Compliant migration to hybrid cloud & SharePoint 2016 $7.3mm LTV • Data loss prevention during content restores • Produce audit and PII reports for security teams Results
Slide 42: Case Study: Omron
Case Study: Omron The Challenge • Unify collaboration onto single Microsoft 365 tenant • Support for 28,000 employees as well as varying regional laws, protocols, directions for 120 regions and countries $2.4mm LTV • Automation of management tasks (scale IT) • Secure sharing on Teams, SharePoint Res
Slide 43: Case Study: ThermoFisher Scientific
Case Study: ThermoFisher Scientific The Challenge • 70,000+ employees • The engineering firm required protection for staff personal data and workspaces • Data included intellectual property, permissions, customizations, and other $1.9mm LTV content stored on Microsoft 365 Results 500 TB of Data Prot
Slide 44: AvePoint Has Multiple Avenues for Growth
AvePoint Has Multiple Avenues for Growth Further International Expansion Expand Target Industry Focus Capture Entire Microsoft Cloud Increase SMB Customer Base Footprint Sell More to ◼ AvePoint positioned Existing to execute on all key Customers growth areas globally ◼ AvePoint already has a strong
Slide 45: Go-To-Market Summary
Go-To-Market Summary Dial up sales team segmentation and specialization success Continue to invest and expand Customer Success to increase up-sell & cross-sell Scale through channel and partner recruit transformation 45 ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of
Slide 46: Financials
Sophia Wu Chief Financial Officer, AvePoint Financials 46Sophia Wu Chief Financial Officer, AvePoint Financials 46
Slide 47: A Powerful Financial Model
A Powerful Financial Model Predictable Multiple Growth Strong Operating Capital Efficient Recurring Revenue Expansion Vectors Leverage Business Model • Conversion to subscription • Increasing penetration in key • Mix shift drives gross margin • Minimal capital expenditure model completed in 2018 cus
Slide 48: Significant Shift to Recurring Revenue
Significant Shift to Recurring Revenue Total Revenue Mix 2017A (Pre-Conversion) LTM Q3 2020 2022E $257mm $141mm $94mm 65% 72% 85% 1 % Recurring Revenue Recurring Revenue Non-Recurring Revenue Source: AvePoint Management. 1) Includes subscription, maintenance, and distribution channel revenues. ©AveP
Slide 49: Continued Improvement in Net Revenue Retention Rates
Continued Improvement in Net Revenue Retention Rates 1 Net Revenue Retention (%) +14pp 106% 104% Constantly innovating and 103% expanding end-to-end data management software suite driving customer loyalty and stickiness 92% Increasing focus on customer success resulting in a reduction of down-sell a
Slide 50: Highly Attractive Financial Profile
Highly Attractive Financial Profile 1 Quarterly Total ARR ($mm) $112 $104 $97 $92 $86 $79 $75 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 % YoY ARR 18% 20% 27% 29% 27% 32% 30% Growth 2 Annual Revenue and Recurring Revenue ($mm) $257 $220 CAGR $193 ’19A-’22E $157 $148 $116 $115 39% $83 30
Slide 51: Illustrative Quarterly Revenue Seasonality
Illustrative Quarterly Revenue Seasonality • Revenue grows sequentially through year as bookings build Illustrative Quarterly Revenue Seasonality 30.0% 27.0% 23.0% 20.0% Q1 Q2 Q3 Q4 ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. 51Illustrative Quarter
Slide 52: Summary Financial Profile
Summary Financial Profile YTD Sep (US$ in millions) 2019A 2020E 2021E 2022E ‘19A – ’22E 2020 1 $105 $116 $148-151 $193 $257 30% Total Revenue 30% 29% 30% 33% % Growth $77 $83 $115 $157 $220 39% Recurring Revenue % Growth 33% 39% 36% 40% % of Revenue 73% 71% 78% 81% 85% $76 $80 $107 $139 $191 34% Gro
Slide 53: Financial Summary
Financial Summary Accelerate ARR growth beyond 30% YoY Strong margins, cash flow, and debt free Healthy expansion in Net Revenue retention to 120% in the medium term 53 ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. Financial Summary Accelerate ARR gr
Slide 54: Summary
Brad Koenig Co-CEO, Apex Summary 54 ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. Brad Koenig Co-CEO, Apex Summary 54 ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc.
Slide 55: Transaction Summary
Transaction Summary 1 Overview Post-Transaction Ownership 1 • Fully distributed pro forma enterprise value of $1.8bn, or 9.1x CY21E revenue of $193mm and 6.8x CY22E revenue of $257mm Existing AvePoint Shareholders 72.0% • Existing AvePoint Shareholders are expected to own 72.0% of the Apex Public Sh
Slide 56: AvePoint is in an Elite Class
AvePoint is in an Elite Class Total NYSE / NASDAQ Listed Software Companies 212 137 ~$150mm+ 32 >25% 5 >10% Relevant Companies + Source: AvePoint Management and FactSet median broker consensus estimates as of October 19, 2020. ©AvePoint, Inc. All rights reserved. Confidential and proprietary informa
Slide 57: Thank you
Gracias Merci ΕυχαριστώGracias Merci Ευχαριστώ
Slide 58: Unleash the Power of You
Unleash the Power of You ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc. Unleash the Power of You ©AvePoint, Inc. All rights reserved. Confidential and proprietary information of AvePoint, Inc.
Slide 59: Appendix
Appendix 59Appendix 59
Slide 60: Long-Term Targets
Long-Term Targets 2019A YTD 2020 2022E Long-Term Target Gross Margin 69% 72% 74% 75%+ S&M as % of Revenue 46% 39% 41% 30%+ R&D as % of Revenue 9% 8% 11% ~10% G&A as % of Revenue 17% 14% 15% ~10% 1 EBIT Margin (4%) 11% 7% 25%+ Source: AvePoint Management. 1) See next slide for GAAP to non-GAAP reconc
Slide 61: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (US$ in millions) YTD Sep 2020 2019A 2020E 2021E 2022E GAAP Operating Income (Loss) ($4.6) ($19.0) ($15.0) $6.5 $15.5 % Margin (4%) (16%) (10%) 3% 6% (+) Stock-Based Compensation $16.2 $13.9 $33.2 $1.5 $1.5 % of Revenue 15% 12% 22% 1% 1% EBIT (Non-GAAP) $11.6 ($5.1) $
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