AvePoint (AVPT) Q3 2024 earnings summary

Executive summary

• Achieved total revenue of $88.8 million in Q3 2024, up 22% year-over-year, with SaaS revenue of $60.9 million, up 45% year-over-year, now representing 69% of total revenue.

• Annual recurring revenue (ARR) reached $308.9 million, up 23% year-over-year as of September 30, 2024.

• Surpassed guidance for the seventh consecutive quarter and raised full-year expectations, reflecting confidence in continued growth.

• Net income for Q3 2024 was $2.9 million, compared to a net loss of $4.2 million in Q3 2023.

• Launched AvePoint Cloud Backup Express, leveraging Microsoft 365 Backup Storage for enhanced multi-cloud data protection.

Financial highlights

• Q3 2024 SaaS revenue was $60.9 million, up 45% year-over-year; total revenue reached $88.8 million, up 22% year-over-year.

• Gross profit for Q3 2024 was $67.6 million, up 28.5% year-over-year; non-GAAP gross margin improved to 77.0% from 73.7% year-over-year.

• Non-GAAP operating income was $17.8 million (20.1% margin), with GAAP operating income of $7.7 million.

• Cash, cash equivalents, and short-term investments totaled $250 million as of September 30, 2024.

• Generated $56.1 million in cash from operations for the nine months ended September 30, 2024.

Outlook and guidance

• Q4 2024 revenue expected at $86.5–$88.5 million (17% year-over-year growth at midpoint).

• Full-year 2024 ARR guidance raised to $324.9–$326.9 million (23% growth at midpoint); revenue guidance raised to $327.8–$329.8 million (21% growth at midpoint).

• Full-year non-GAAP operating income forecasted at $45.8–$46.8 million (14% margin at midpoint), with Q4 non-GAAP operating income projected at $12.6–$13.6 million.

• Rule of 40 metric updated to 37, up from initial guidance of 29.

• Management expects continued SaaS revenue growth and further gross margin expansion as SaaS becomes a larger share of total revenue.