Slide 1: Investor Presentation
Investor Presentation May 2023 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: Our Mission / What We Do
OUR MISSION To enable organizations to collaborate with confidence WHAT WE DO 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: Shareholder Value
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 $222.4 million 17,000+ Annual Recurring Revenue Customers 39% 100+ SaaS revenue growth Countries 31% ~ 2,100 ARR growth Employees 84% 25 Recurring revenue Global Offices ARR as of March 31, 2023. Growth metrics adjusted for the impact of FX. Recurring revenue mix is for Q1 2023.
Slide 6: 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 6 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc.
Slide 7: Macro Trends are Tailwinds
Macro Trends are Tailwinds Proliferation of software and growth of data • On average, organizations have 4-6 data platforms1 • 10% of all data will be produced by generative AI2 • More than 75% of organizations have a decentralized data architecture1 Need for business optimization • Sustainable, pro
Slide 8: Common Digital Workplace Challenges
Common Digital Workplace Challenges Disjointed collaboration Dispersed resources Shadow IT creates and file sharing security concerns Delays in development Increased on-boarding time Lack of visibility and implementation of content and ideas Increased IT Incompatible security measures Unreliable ver
Slide 9: The AvePoint Confidence Platform
The AvePoint Confidence Platform TM Resilience Suite Modernization Suite Effectively & efficiently comply Transform legacy data into modern with data protection regulation, SaaS platforms, legacy business preserve critical records, and processes into modern end-user ensure business continuity busine
Slide 10: Confidence Platform Optimize the Digital Workplace
Confidence Platform Optimize the Digital Workplace TM Digital Systems MODERNIZATION Data Transformation Business Apps Compliance Data Measure and Risk Ownership AUTOMATION INSIGHTS RESILIENCE Business Data Context Usage Orchestration Backup as a Service Records Management Engine DELEGATION Access En
Slide 11: 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 12: 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 12 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc.
Slide 13: 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 14: Strategic Priorities
Strategic Priorities Accelerate Expand Scale Broaden Customer Confidence Channel Market Adoption Platform Ecosystem Presence Offerings 14 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc.
Slide 15: Business Highlights
Business Highlights Collaborate with Confidence Accessible content is available upon request.
Slide 16: Overview Q1 2023 | Business Highlights
Overview Q1 2023 | Business Highlights • Total ARR grew 26% YoY to $222.4 million, 31% adjusted for FX • SaaS revenue grew 34% YoY, 39% on constant currency basis • Total revenue grew 18% YoY, 23% on constant currency basis • Dollar based net retention rate was 106%, adjusted for FX • Non-GAAP opera
Slide 17: Overview Q1 2023
Overview Q1 2023 Revenue Non-GAAP Gross Profit $70 M $59.6M $50.3M $50 M $42.6M $36.1M Revenue $60 M $59.6M $3.4M $3.3M $40 M $9.7M $1.0M Total ARR $10.4M $50 M $222.4M $4.6M $4.4M $10.9M $8.9M $1.1M $30 M TTM Net Retention Rate $40 M $9.6M 106% adj. for FX $27.9M $10.2M $35.5M GAAP Operating Loss $
Slide 18: TTM Revenue & Recurring Business
TTM Revenue & Recurring Business SaaS Revenue as % of Total Revenue 24% 34% 45% 50% 52% $300M $242M $232M $250M $192M $152M $200M $116M $150M $100M $50M $0M 2019 2020 2021 2022 Q1 2023 SaaS Term License & Support Services Maintenance 71% 75% 82% 82% 82% Recurring Revenue as % of Total Revenue 18 ©Av
Slide 19: Non-GAAP Operating Expenses
Non-GAAP Operating Expenses OPEX – Breakout OPEX – % of Revenue $30M 90% 80% $24.5M $24.7M 12% $25M 70% 14% 22% $20M 60% 17% 50% $15M 49% 40% $11.1M 41% $10.3M $10M $8.2M 30% $5.8M 20% $5M 10% $0M 0% S&M G&A R&D Q1 FY23 Q1 FY22 Sales & Marketing General & Admin Research & Dev Q1 FY23 Q1 FY22 Sales &
Slide 20: Annual Recurring Revenue
Annual Recurring Revenue $222.4M $214.7M $203.8M $188.2M $177.2M $167.2M $154.5M $144.8M $133.9M $122.0M $111.0M $103.9M $97.0M Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 29% 32% 29% 33% 38% 39% 39% 37% 32% 30% 32% 28% 26% YoY Growth Total
Slide 21: TTM Gross Retention Rate
TTM Gross Retention Rate 87% 87%* 87%* 84% 83% 2019 2020 2021 2022 Q1 2023 *Adjusted for FX Impact 21 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc. Financials
Slide 22: TTM Net Retention Rate
TTM Net Retention Rate 110% 107%* 106% 106%* 105% 2019 2020 2021 2022 Q1 2023 *Adjusted for FX Impact 22 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc. Financials
Slide 23: Balanced ARR Contribution
Balanced ARR Contribution Industries Geography 20% 35% 45% North America 45% | EMEA 35% | APAC 20% Direct vs Channel 53% 47% Direct 53% | Channel 47% New vs Existing 42% 58% New 58% | Existing 42% Product Suites 58% 27% 15% Control 27% | Modernization 15% | Resilience 58% Customer Segment 19% 51% En
Slide 24: Customer Attach Rates
Customer Attach Rates Product Attach Rates Suite Attach Rates 2022: 48% 2022: 24% 2022: 23% 2021: 45% 2021: 24% 2021: 20% 2020: 42% 2020: 25% 2020: 18% 2019: 35% 2019: 20% 2019: 13% % Customers % Customers % Customers with with with 2+ Products 4+ Products 2+ Suites Attach rates as of Dec 31, 2022.
Slide 25: Q2 & Full-Year 2023 Financial Guidance
Q2 & Full-Year 2023 Financial Guidance Q2 2023 FY 2023 Low High Low High ($ in mil) Annual Recurring Revenue – – $255.0 $ 261.0 Total Revenue $ 60.5 $ 62.5 $ 256.5 $ 262.5 Non-GAAP Operating Income $ 0.8 $ 2.0 $ 13.9 $ 16.2 Non-GAAP Operating Margin % 1.3% 3.2% 5.4% 6.2% 25 ©AvePoint, Inc. All right
Slide 26: Long-Term Non-GAAP Targets
Long-Term Non-GAAP Targets1 FY 2021 FY 2022 Q1 2023 Long-Term Target Gross Margin 74% 73% 71% 75%+ S&M as % of Revenue 44% 42% 41% 30%+ R&D as % of Revenue 8% 12% 14% ~10-15% G&A as % of Revenue 18% 20% 17% ~10% Operating Margin 3.1% (1.2%) (0.6%) 20-25%+ Source: AvePoint Management. 1) See "GAAP to
Slide 27: Headlines: Non-GAAP Profitable, Rule of 40
HEADLINES 2023 2025 2025 Non-GAAP Profitable Rule of 40 Company GAAP Profitable AvePoint defines Rule of 40 as the sum of ARR 27 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc. growth and non-GAAP operating margin.
Slide 28: Select Definitions
Select Definitions Total ARR Dollar-Based Net Retention Rate AvePoint calculates annual recurring revenue (“ARR”) at the This metric is calculated by starting with the ARR from all active end of a particular period as the annualized sum of customers as of 12 months prior to such period end, or Prior
Slide 29: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation For the Three Months Ended Mar 31 2023 2022 ($ in mil) GAAP gross profit $ 41.7 $ 35.5 Stock-based compensation expense & amort. of intangible assets 0.9 0.6 Non-GAAP gross profit $ 42.6 $ 36.1 Non-GAAP gross margin 71.5% 71.8% GAAP operating expenses $ 50.5 $ 49.4 St
Slide 30: Gracias Merci
Gracias Merci IR@avepoint.com धन्यवाद