• Total Revenue: $93.1 million, up 25% year-over-year.

• SaaS Revenue: $68.9 million, representing 34% year-over-year growth.

• Subscription Revenue Growth: 31% in Q1.

• Gross Margin: 75%, compared to 74.1% in Q1 2024.

• Operating Income: $13.4 million, with an operating margin of 14.4%.

• Cash and Equivalents: $351.8 million at the end of Q1.

• Net New ARR: $18.5 million, representing 57% organic growth year-over-year.

• ARR: $345.5 million, up 26% year-over-year.

• Customer Retention Rate (GRR): 89% adjusted for FX, 88% reported.

• Net Retention Rate (NRR): 111% adjusted for FX, 111% reported.

• Full-Year Revenue Guidance: $397.4 million to $405.4 million, growth of 20% to 23%.

• Full-Year ARR Guidance: $411.8 million to $417.8 million, growth of 26% to 28%.

• Warning! GuruFocus has detected 2 Warning Sign with HQI.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• AvePoint Inc (NASDAQ:AVPT) reported a strong start to 2025 with Q1 revenues of $93.1 million, up 25% year-over-year, exceeding guidance.

• SaaS revenue grew by 34% year-over-year, comprising 74% of total revenues, highlighting the company's successful shift towards a subscription-based model.

• The company achieved record growth in net new ARR, with a 57% year-over-year increase, marking the highest growth rate since becoming a public company.

• AvePoint Inc (NASDAQ:AVPT) expanded its platform capabilities with enhanced multi-cloud features and deeper AI integration, driving significant customer wins across various industries.

• The company maintained a strong balance sheet with $351.8 million in cash and short-term investments, providing financial stability and flexibility for future growth initiatives.

Negative Points

• Despite strong Q1 performance, AvePoint Inc (NASDAQ:AVPT) maintained a cautious full-year ARR guidance due to macroeconomic uncertainties and geopolitical risks.

• Free cash flow was negative $1 million for the quarter, compared to positive $7.3 million in the same period last year, impacted by one-time tax payments.

• Maintenance revenue declined year-over-year, reflecting a shift away from traditional revenue streams.

• The company faces challenges in navigating complex regulatory environments and expanding compliance standards globally, adding operational complexity.

• AvePoint Inc (NASDAQ:AVPT) is still in the early stages of AI deployment, with only a small percentage of customers fully implementing AI solutions, indicating potential delays in realizing full benefits.

Q & A Highlights

Q: Are you seeing any changes in the demand environment, such as hesitation from customers or longer sales cycles? A: (Tianyi Jiang, CEO) The demand environment remains consistent with previous quarters, particularly in B2B software addressing enterprise needs. We are monitoring the macroeconomic environment for potential impacts in the second half of the year, but so far, the climate for our business remains stable.