Yahoo Finance AvePoint Inc (AVPT) Reports Strong SaaS Growth and Improved Profitability in Full Year 2023
SaaS Revenue Growth: 37% year-over-year increase to $161.0 million for the full year.
Total Revenue: 17% year-over-year increase to $271.8 million for the full year.
Annual Recurring Revenue (ARR): 23% year-over-year growth to $264.5 million, 24% adjusted for FX.
Operating Income/Loss: GAAP operating income of $0.9 million for Q4, a significant improvement from a GAAP operating loss of $(8.0) million in Q4 2022.
Cash and Short-Term Investments: $226.9 million as of December 31, 2023.
Cash from Operations: Generated $34.7 million for the twelve months ended December 31, 2023, compared to $(0.8) million in the prior year period.
AvePoint Inc (NASDAQ:AVPT), a leading provider of Microsoft 365 data management solutions, announced its financial results for the fourth quarter and full year ended December 31, 2023. The company released its 8-K filing on February 29, 2024, showcasing significant growth in its SaaS revenue and overall financial health.
AvePoint's full year SaaS revenue reached $161.0 million, marking a 37% increase from the previous year, while total revenue grew by 17% to $271.8 million. The company's total ARR also saw a notable rise to $264.5 million, a 23% year-over-year growth, or 24% when adjusted for foreign exchange (FX) impacts.
Financial Performance and Operational Efficiency
The fourth quarter of 2023 was particularly strong for AvePoint, with total revenue of $74.6 million, a 17% increase from the same period in 2022. SaaS revenue for the quarter was $45.3 million, up 37% year-over-year. This growth reflects the company's ability to capitalize on the increasing demand for cloud-based solutions and data management.
GAAP gross profit for the fourth quarter was $55.0 million, compared to $44.8 million in the fourth quarter of 2022. The non-GAAP gross profit was even higher at $56.1 million, with a non-GAAP gross margin of 75.2%, indicating improved profitability and operational efficiency.
One of the most significant turnarounds was in operating income. AvePoint reported a GAAP operating income of $0.9 million for the fourth quarter, a substantial improvement from a GAAP operating loss of $(8.0) million for the same period in the previous year. The full year also showed improvement, with a GAAP operating loss of $(15.4) million, compared to $(41.1) million for the full year 2022.
Strategic Initiatives and Future Outlook
AvePoint's CEO, Dr. Tianyi Jiang, highlighted the company's strategic initiatives, including the launch of AvePoint Opus, an AI-powered information lifecycle management solution, and the investment in A3Ventures, a growth equity fund targeting B2B software companies. These moves are expected to complement AvePoint's technology portfolio and drive further innovation.
For the first quarter of 2024, AvePoint expects total revenues between $71.4 million and $73.4 million, with non-GAAP operating income projected to be between $3.3 million and $4.3 million. The full year 2024 outlook anticipates total ARR between $314.7 million and $320.7 million, total revenues between $308.6 million and $316.6 million, and non-GAAP operating income between $27.4 million and $30.4 million.
AvePoint's solid financial results and strategic investments position the company well for continued growth and leadership in the SaaS and data management market. The company's focus on AI integration and global expansion through partnerships and investments underscores its commitment to innovation and customer success.
Investors and stakeholders can join AvePoint's conference call to discuss the financial results and outlook, or access the webcast through the company's investor relations website.
For more detailed financial information and the reconciliation of GAAP to non-GAAP financial measures, please refer to the tables provided in the earnings release.
AvePoint's continued growth and improved profitability demonstrate its strong position in the software industry, particularly in the SaaS sector. The company's focus on expanding its product offerings and strategic investments are expected to drive further success and value for shareholders.
For further information and to stay updated on AvePoint's progress, investors and interested parties are encouraged to visit the company's investor relations page.
Explore the complete 8-K earnings release (here) from AvePoint Inc for further details.
This article first appeared on GuruFocus.
