Slide 1: Investor Presentation
Investor Presentation AUGUST 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 is the global leader in data management and data governance
AvePoint is the global leader in data management and data governance 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 $290.1 million 21,000+ Annual Recurring Revenue Customers 40% 100+ SaaS Revenue Growth Countries 23% ~2,700 ARR Growth Employees 87% 25 Recurring Revenue Global Offices ARR as of June 30, 2024. SaaS revenue growth and recurring revenue mix are for Q2 2024. Customer count as of De
Slide 6: Investment Highlights
Investment Highlights Strong ARR Durable Industry Growth Tailwinds Improving Profitability Platform Motion & Cash Flow Driving Land and Generation Expand Highly Predictable Industry Leading Recurring Revenue Innovation Model 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: 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 9: 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 10: Optimizing the Digital Workplace
Optimizing the Digital Workplace Resilience Suite Control Suite Focused on data security and Focused on data governance, the protection, the Resilience Suite Control Suite provides a ready-made enables organizations to comply with framework for automated governance regulations, preserve critical rec
Slide 11: Optimizing the Digital Workplace
Optimizing the Digital Workplace 11 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc.
Slide 12: 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 companies of all sizes, ranging from small businesses to the Fortune 10 ENHANCED COLLABORATION with integrated business apps and cloud serv
Slide 13: 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 13 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc.
Slide 14: 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 15: Financial Highlights
Financial Highlights Collaborate with Confidence Accessible content is available upon request.
Slide 16: Compelling Financial Profile
Compelling Financial Profile Improving Highly Diverse, Strong ARR Profitability Predictable Land and Global Growth and Cash Flow Recurring Expand Customer Generation Revenue Motion Base Model 16 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc.
Slide 17: Q2 2024 Financial Highlights
Q2 2024 | Financial Highlights • Total ARR grew 23% YoY to $290.1 million • Net new ARR was $15.6 million and grew 13% YoY • SaaS revenues grew 40% YoY • Total revenues grew 20% YoY • Dollar based net retention rate was 110%, adjusted for FX • Non-GAAP operating margin was 11.2% 17 ©AvePoint, Inc. A
Slide 18: Annual Recurring Revenue
Annual Recurring Revenue $290.1M $274.5M $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 Q1 2
Slide 19: 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% 64% $300M $272M $300M $232M $250M $192M Maintenance $152M $200M Services $116M Term License & $150M Support $100M SaaS $50M $0M FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Q2 2024 71% 75% 82% 82% 84% 8
Slide 20: Focused on Long-Term Profitability Improvement
Focused on Long-Term Profitability Improvement Gross Margin 74% 73% 73% 75% Sales & Marketing 44% 43% 38% 36% General & Administrative Research & Operating Development 20% Margin 18% 15% 15% 12% 12% 12% 11.7% 8% 8.1% 3.1% -1.2% FY FY FY Q2 FY FY FY Q2 FY FY FY Q2 FY FY FY Q2 FY FY FY Q2 2021 2022 20
Slide 21: Progressing Toward Rule of 40 as Public Company
Progressing Toward Rule of 40 as Public Company 45% 40% 12% 3% 31% 27% 8% 37% 33% 28% 23% -1% 2020 2021 (IPO) 2022 2023 ARR Growth Non-GAAP Operating Margin AvePoint defines Rule of 40 as the sum of ARR growth and non-GAAP operating margin. 21 ©AvePoint, Inc. All rights reserved. Proprietary informa
Slide 22: Gross Retention Rate and Net Retention Rate
Gross Retention Rate Net Retention Rate 110% 110% 109% 87% 87% 87% 87% 107% 83% 105% 2020 2021 2022 2023 Q2 2024 2020 2021 2022 2023 Q2 2024 Medium Term Target: Medium Term Target: 90%+ 110-115% Percentages are adjusted for FX. 22 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePo
Slide 23: Balanced ARR Contribution
Balanced ARR Contribution Industries Geography 20% 35% 45% North America 45% | EMEA 35% | APAC 20% Other Professional & Admin Services Direct vs Channel Education 51% 49% 14% 12% Channel 51% | Direct 49% Energy & Utilities Finance & Insurance 4% 3% 3% 12% New vs Existing 50% 50% Life Sciences & Phar
Slide 24: Customer Attach Rates
Customer Attach Rates Product Attach Rates Suite Attach Rates 2023: 50% 2023: 24% 2023: 24% 2022: 48% 2022: 24% 2022: 23% 2021: 45% 2021: 24% 2021: 20% 2020: 42% 2020: 25% 2020: 18% % % % Customers Customers Customers with 2+ with 4+ with 2+ Products Products Suites Attach rates are as of Dec 31, 20
Slide 25: Q3 & Full-Year 2024 Financial Guidance
Q3 & Full-Year 2024 Financial Guidance Q3 2024 FY 2024 ($in mil) Low High Low High Annual Recurring Revenue - - $319.0 $323.0 y/y growth - - 20.6% 22.1% Total Revenue $82.0 $84.0 $320.2 $324.2 y/y growth 12.7% 15.4% 17.8% 19.3% Non-GAAP Operating Income $11.0 $12.0 $38.3 $39.8 Non-GAAP Operating Mar
Slide 26: 2025 Targets
2025 Targets 2025 2025 Rule of 40 Company GAAP Profitable AvePoint defines Rule of 40 as the sum of ARR growth and non-GAAP operating margin 26 ©AvePoint, Inc. All rights reserved. Proprietary information of AvePoint, Inc.
Slide 27: Long-Term Non-GAAP Targets
Long-Term Non-GAAP Targets 2021 2022 2023 Long-Term Target Gross Margin 74% 73% 73% 75%+ S&M as % of Revenue 44% 43% 38% 30%+ R&D as % of Revenue 8% 12% 12% ~10-15% G&A as % of Revenue 18% 20% 15% ~10% Operating Margin 3.1% (1.2%) 8.1% 20-25%+ See "GAAP to Non-GAAP Reconciliation" slide for add-back
Slide 28: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation 2024 2023 ($ in mil) For the Three Months Ended June 30 GAAP gross profit $59.0 $45.1 Stock-based compensation expense & amortization of acquired intangible assets 0.4 1.1 Non-GAAP gross profit $59.4 $46.1 Non-GAAP gross margin 76.2% 71.1% GAAP operating expenses $61.
Slide 29: 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 30: 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 31: 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 32: Thank You
Gracias Merci IR@avepoint.com धन्यवाद