AvePoint, Inc. Q1 FY2025 earnings call

• TJ Jiang highlighted strong Q1 results as a continuation of 2024's momentum, with focus on data security, governance, and resilience convergence. - Discussed strategic customer wins, including a global human capital management solutions company, a prestigious business school in EMEA, and an APAC design company. - Emphasized platform capabilities addressing data management challenges, innovation, and ongoing efforts to meet customer needs in AI-driven environments.

Total revenues in Q1 2025 were $93.1 million, up 25% year-over-year and above guidance. SaaS revenue was $68.9 million, up 34% YOY, comprising 74% of total revenues. Term license and support grew 12% in Q1. Recurring revenues made up over 88% of Q1 revenues, the highest ever mix. Regional breakdown: North America SaaS revenues grew 31%, EMEA SaaS grew 36%, APAC SaaS grew 40%. ARR ended Q1 at $345.5 million, with net new ARR of $18.5 million, and 689 customers with ARR over $100k.

• Q2 2025 total revenues expected $95.3M-$97.3M, non-GAAP operating income $13.2M-$14.2M. - Full-year 2025 ARR expected $411.8M-$417.8M (26%-28% growth), total revenues $397.4M-$405.4M (20%-23% growth), non-GAAP operating income $61.4M-$64.4M. - FX tailwind and Q1 beat included in guidance.

Q: Any change in demand environment or longer sales cycles?

A: Demand environment same as prior quarters, top needs AI and security; monitoring macro for second half impacts.

Q: Competitive environment and entry points for data governance?

A: Multiple entry points like resiliency, modernization, control suites; control suite growth driven by cloud unstructured data governance for AI readiness.

Q: MSP momentum and business dynamics?

A: Bullish on MSP segment, new platform launch to help MSPs scale; MSP ARR 14% of total ARR, growing 60% CAGR from 2020-2024.

Q: ARR and revenue upside?

A: Q1 had strong performance with beat in revenue and operating income; ARR guidance prudent due to macro environment.

Q: Data modernization timeline?

A: Early innings of data modernization and AI deployment, as it involves business process re-engineering and is hard for large companies.

Q: Go-to-market and license outperformance?

A: Direct sales focus on large enterprises, channel on SMBs; license outperformance due to large deals globally across regions.

Q: FX and AI implementation?

A: Full-year guidance includes FX impact; AI implementation adoption not slowed, urgent for enterprises.