AvePoint, Inc. Q2 FY2025 earnings call

• Q2 2025 was the first quarter to surpass $100 million in revenues. - Introduced new command centers: Risk Posture Command Center, Optimization and ROI Command Center, Resilience Command Center. - Expanded Agentic AI governance capabilities for Microsoft 365 Copilot. - Enhanced Elements Platform for MSPs, which also benefits enterprise customers. - Notable customer wins and expansions across industries like global airline, U.S. insurer, etc.

In Q2 2025, total revenues were $102 million, up 31% year-over-year. SaaS revenue was $77.3 million, representing 76% of total Q2 revenues, with sequential growth of 12% and year-over-year growth of 44%. Term license and support declined 19% year-over-year. Services revenue were $14.5 million, 14% of Q2 revenues. On a regional basis, North America SaaS revenues grew 38% YOY, EMEA 50% YOY, APAC 48% YOY. Total ARR ended the second quarter at $367.6 million, up 27% YOY. Net new ARR in Q2 was $22.1 million, the highest ever. Mid-market ARR reached $100 million this quarter.

• Q3 2025 revenue guidance: $104.6M - $106.6M (18%-20% growth). - Full-year 2025 ARR: $412.8M - $418.8M (26%-28% growth). - Full-year revenue: $406.6M - $410.6M (23%-24% growth). - Full-year non-GAAP operating income: $68.3M - $70.8M. - Rule of 40 midpoint improved to 44% from 43%.

• Potential uncertainty in the second half, particularly with the public sector in Q3.

Q: Joseph Gallo of Jefferies asks about macro for commercial and government verticals.

A: Jim Caci says they were conscious of federal uncertainty from the start, and commercial side is seeing nice growth across regions.

Q: Joe Vandrick of Scotiabank asks about biggest theme driving customer conversations.

A: TJ Jiang says AI readiness and security are key.

Q: Chirag Haresh Ved of Evercore ISI asks about multi-cloud governance strategy.

A: TJ Jiang says they already support Google Workspace and Salesforce, with governance capabilities in early stages.

Q: Jason Ader of William Blair asks about MSP business and $100M ARR.

A: TJ Jiang says MSP is fastest-growing, mid-market has exceeded $100M ARR.

Q: Nehal Chokshi of Northland Capital Markets asks about DBNR.

A: James Caci says it's driven by cross-selling to existing customers.

Q: Gabriela Borges of Goldman Sachs asks about durability of control suite growth.

A: TJ Jiang says still early innings, AI adoption not slowing.

Q: Cole Erskine of TD Cowen asks about customer spend with Copilot.

A: TJ Jiang says spend increases with governance focus.

Q: Cole Erskine asks about longer-term contracts.

A: James Caci says average contract length increased across the board.