Slide 1: Investor Presentation
Investor Presentation FEBUARY 2024 Collaborate with Confidence Accessible content is available upon request.
Slide 2: Disclaimer
DISCLAIMER This presentation (“Presentation”) is for informational purposes only and shall not be reproduced or distributed in whole or in part without the express written consent of AvePoint, Inc. No Reliance No representations or warranties, express or implied, are given in, or in respect of, this
Slide 3: AvePoint provides the most advanced platform to optimize SaaS operations
AvePoint provides the most advanced platform to optimize SaaS operations and secure collaboration 3 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc.
Slide 4: Driving Shareholder Value
DRIVING SHAREHOLDER VALUE Advance Capture Prioritize Digital Workplace Growing Markets Profitable Growth 4 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc.
Slide 5: Business Highlights
Business Highlights $265 million 21,000+ Annual Recurring Revenue Customers 37% 100+ SaaS Revenue Growth Countries 24% ~2,500 ARR Growth Employees 84% 25 Recurring Revenue Global Offices ARR and customer count as of December 31, 2023. ARR growth is adjusted for FX. SaaS revenue growth and recurring
Slide 6: Investment Highlights
Investment Highlights Durable Industry Strong ARR Growth Tailwinds Platform Motion Highly Predictable Driving Land and Recurring Revenue Expand Model Industry Leading Improving Profitability Innovation & Cash Flow Generation 6 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint,
Slide 7: Strategic Priorities
Strategic Priorities Accelerate Expand Scale Confidence Broaden Strategic Customer Channel Platform Market Acquisitions & Adoption Ecosystem Offerings Presence Investments 7 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc.
Slide 8: Key Customers We Serve
Key Customers We Serve Communications Retail/Consumer Pharma & Health Financial Services Gov & Education High Technology US TREASURY DEPT US DEPT OF STATE 8 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc.
Slide 9: Macro Trends are Tailwinds
Macro Trends are Tailwinds Proliferation of Need for Business Evolving Compliance Software and Data Optimization and Threat Landscape • On average, organizations have 4-6 • Sustainable, profitable growth by • Global Zero Trust security market data platforms1 reducing costs and improving $60.7 billio
Slide 10: Common Digital Workplace Challenges
Common Digital Workplace Challenges Data Dispersed Cybersecurity Management Resources Concerns Delays in content development Increased on-boarding time Lack of visibility and implementation Increased IT Incompatible security measures Unreliable version control support workload Inefficient co-authori
Slide 11: The AvePoint Confidence Platform
The AvePoint Confidence Platform TM Resilience Suite Modernization Suite Focused on data security and Focused on employee productivity, the protection, the Resilience Suite Modernization Suite transforms legacy enables organizations to comply with data into modern SaaS platforms and regulations, pre
Slide 12: Optimizing the Digital Workplace
Optimizing the Digital Workplace Digital Systems Compliance Data CONTROL and Risk Ownership AUTOMATION INSIGHTS Business Data Context Usage Orchestration Engine DELEGATION RESILIENCE Access Engagement SELF SERVICE Rights Adoption MODERNIZATION 12 ©AvePoint, Inc. All rights reserved. Proprietary info
Slide 13: Platform Approach Benefits
Platform Approach Benefits Why We Win LOWER TIME TO VALUE for customers and partners in their Digital Workspace transformation ENTERPRISE SCALABILITY to support customers with 100 employees or 100,000 ENHANCED COLLABORATION with integrated business apps and cloud service delivery HIGH ROI for organi
Slide 14: Enormous Addressable Market
$100B L o n g Te r m Enormous $72B Addressable M i d Te r m Market Opportunity $43B (21% CAGR from 2023-2026) Current Source: Gartner Forecast Public Cloud Services, Worldwide, 2020-2026, 4Q22 Update 14 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc.
Slide 15: Proven Sales Model
Proven Sales Model Go-to-Market Motion Customer Segmentation Awareness Enterprise Demand Generation (5,000+ employees) Direct Sales Systems Integrators, Consultants Pipeline Creation Mid- Consultants, Wins (Close) Market Resellers, (500-5,000 MSPs employees) Welcome & Onboarding SMB MSPs, Customer/P
Slide 16: Financial Highlights
Financial Highlights Collaborate with Confidence Accessible content is available upon request.
Slide 17: Compelling Financial Profile
Compelling Financial Profile Strong Track Focus on Diverse, Long-Term Strong Land and Record of Global Profitability Recurring Expand Growth Customer Improvement Revenues Motion Base 17 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc.
Slide 18: Q4 2023 | Financial Highlights
Q4 2023 | Financial Highlights • Total ARR grew 23% YoY to $264.5 million, 24% adjusted for FX • Net new ARR was $13.9 million and grew 28% YoY • SaaS revenue grew 37% YoY • Total revenue growth accelerated to 17% YoY • Dollar based net retention rate improved to 109%, adjusted for FX • Non-GAAP ope
Slide 19: Annual Recurring Revenue
Annual Recurring Revenue $264.5M $264.5M $250.6M $236.2M $222.4M $214.7M $203.8M $188.2M $177.2M $167.2M $154.5M $144.8M $133.9M $122.0M $111.0M $103.9M $97.0M Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 29% 32% 29%
Slide 20: Strong Growth in SaaS and Recurring Revenue Mix
Strong Growth in SaaS and Recurring Revenue Mix SaaS Revenue as % of Total Revenue 24% 34% 45% 50% 59% $300M $272M $232M $250M $192M Maintenance $200M $152M Services $116M $150M Term License & Support $100M SaaS $50M $0M 2019 2020 2021 2022 2023 71% 75% 82% 82% 84% Recurring Revenue as % of Total Re
Slide 21: Focused on Long-Term Profitability Improvement
Focused on Long-Term Profitability Improvement Gross Margin 74% 73% 73% Sales & Marketing 44% 43% 38% General & Administrative Research & Operating Development 20% Margin 18% 15% 12% 12% 8% 8.1% 3.1% -1.2% 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 2021 2022 2023 All metrics are non
Slide 22: Progressing Toward Rule of 40 as Public Company
Progressing Toward Rule of 40 as Public Company 45% 40% 12% 3% 31% 27% 8% 37% 33% 28% 23% -1% 2020 2021 (IPO) 2022 2023 ARR Growth Non-GAAP Operating Margin AvePoint defines Rule of 40 as the sum of ARR growth and non-GAAP operating margin. 22 ©AvePoint, Inc. All rights reserved. Proprietary informa
Slide 23: Gross Retention Rate and Net Retention Rate
Gross Retention Rate Net Retention Rate 110% 109% 87% 87% 87% 107% 83% 105% 2020 2021 2022 2023 2020 2021 2022 2023 Medium Term Target: Medium Term Target: 90%+ 110-115% Percentages are adjusted for FX. 23 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc. Financials
Slide 24: Balanced ARR Contribution
Balanced ARR Contribution Industries Geography 20% 35% 45% North America 45% | EMEA 35% | APAC 20% Other Professional & Admin Services Direct vs Channel Education 51% 49% 14% 12% Channel 51% | Direct 49% Energy & Utilities Finance & Insurance 4% 3% 3% 12% New vs Existing 50% 50% Life Sciences & Phar
Slide 25: Customer Attach Rates
Customer Attach Rates Product Attach Rates Suite Attach Rates 2023: 50% 2023: 24% 2023: 24% 2022: 48% 2022: 24% 2022: 23% 2021: 45% 2021: 24% 2021: 20% 2020: 42% 2020: 25% 2020: 18% % % % Customers Customers Customers with 2+ with 4+ with 2+ Products Products Suites Attach rates are as of Dec 31, 20
Slide 26: Q1 & Full-Year 2024 Financial Guidance
Q1 & Full-Year 2024 Financial Guidance Q1 2024 FY 2024 Low High Low High ($in mil) Annual Recurring Revenue - - $314.7 $320.7 Total Revenue $71.4 $73.4 $308.6 $316.6 Non-GAAP Operating Income $3.3 $4.3 $27.4 $30.4 Non-GAAP Operating Margin 4.6% 5.9% 8.9% 9.6% 26 ©AvePoint, Inc. All rights reserved.
Slide 27: 2025 Targets
2025 Targets 2025 2025 Rule of 40 Company GAAP Profitable AvePoint defines Rule of 40 as the sum of ARR growth and non-GAAP operating margin 27 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc.
Slide 28: Long-Term Non-GAAP Targets
Long-Term Non-GAAP Targets 2021 2022 2023 Long-Term Target Gross Margin 74% 73% 73% 75%+ S&M as % of Revenue 44% 43% 38% 30%+ R&D as % of Revenue 8% 12% 12% ~10-15% G&A as % of Revenue 18% 20% 15% ~10% Operating Margin 3.1% (1.2%) 8.1% 20-25%+ See "GAAP to Non-GAAP Reconciliation" slide for add-back
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 2023 2022 2023 2022 ($ in mil) For the Three Months Ended Dec 31 For the Twelve Months Ended Dec 31 GAAP gross profit $55.0 $44.8 $194.4 $166.1 Stock-based compensation expense & amortization of intangible assets 1.1 1.1 4.1 3.3 Non-GAAP gross profit $56.1 $45.9 $198.
Slide 30: Appendix: Customer Metrics
Appendix: Customer Metrics CUSTOMER COUNT 2020 2021 2022 2023 Total Customers 8,483 12,521 17,085 21,214 RETENTION RATES (1) 2020 2021 2022 2023 Gross Retention Rate 83% 87% 86% 86% Gross Retention Rate (FX Adjusted) 83% 87% 87% 87% Net Retention Rate 105% 110% 103% 108% Net Retention Rate (FX Adjus
Slide 31: Appendix: ARR Composition
Appendix: ARR Composition 2020 2021 2022 2023 Direct 57% 55% 53% 49% Direct vs. Channel Channel 43% 45% 47% 51% Enterprise 57% 54% 51% 52% Customer Mid-Market 28% 29% 30% 29% Segment Small Business 16% 17% 19% 18% New Customers 57% 56% 58% 50% New vs. Existing(1) Existing Customers 43% 44% 42% 50% N
Slide 32: Select Definitions
Select Definitions Dollar-Based Gross Retention Rate Total ARR AvePoint calculates annual recurring revenue (“ARR”) at the end of a This metric is calculated by starting with the ARR from all active particular period as the annualized sum of contractually obligated customers as of 12 months prior to
Slide 33: Gracias Merci
Gracias Merci IR@avepoint.com धन्यवाद