AvePoint (AVPT) Q2 2024 earnings summary

Executive summary

• Q2 2024 total revenue reached $78 million, up 20% year-over-year, driven by 40% SaaS growth to $53.6 million, now 69% of total revenue.

• Annual recurring revenue (ARR) reached $290.1 million as of June 30, 2024, up 23% year-over-year.

• Non-GAAP operating income improved to $8.7 million (11.2% margin), up from $2.9 million in Q2 2023.

• Company raised full-year guidance for revenue, ARR, and non-GAAP operating income.

• Recognized with industry awards, including Inc.'s Best Workplaces and Microsoft Partner of the Year.

Financial highlights

• SaaS revenue grew 40% year-over-year to $53.6 million in Q2 2024; recurring revenue comprised 87% of total revenue.

• Gross profit for Q2 2024 was $59.0 million, with a non-GAAP gross margin of 76.2%, up from 71.1% a year ago.

• Non-GAAP operating margin improved to 11.2% from 4.4% year-over-year.

• Cash, cash equivalents, and short-term investments totaled $230.8 million at quarter end.

• Free cash flow for the first six months was $23.9 million, up from $9.3 million in the prior year.

Outlook and guidance

• Q3 2024 revenue expected at $82–$84 million (14% year-over-year growth at midpoint).

• Full-year 2024 ARR guidance raised to $319–$323 million (21% growth at midpoint).

• Full-year 2024 revenue guidance raised to $320.2–$324.2 million (19% growth at midpoint).

• Full-year non-GAAP operating income expected at $38.3–$39.8 million (11.9–12.3% margin).

• 2025 targets include achieving GAAP profitability and maintaining Rule of 40 status.