AvePoint, Inc. Q4 FY2025 earnings call

• Fourth quarter results were a strong conclusion to an outstanding year with 11th straight quarter of double-digit net new ARR growth and double-digit GAAP operating margins. • AvePoint has a leading position in mission-critical data management and benefited from market demand for data protection in the AI era. • The AppPoint Confidence Platform is unique with its platform architecture serving as a control plane for policy management, real-time remediation, and connectivity tissue for enterprise security operations. • Bundles deliver comprehensive outcome-based solutions addressing data cleanup, lifecycle management, etc. • Continued investment in the go-to-market strategy and innovation pipeline to solidify leadership in AI deployment across enterprises

Total revenues for Q4 were $114.7M, up 29% year over year. SAS revenue was $88.9M, growing 37% year-over-year, representing 78% of Q4 total revenues. Services revenue was $14.6M, up 20% year over year. Term license and support revenues grew 7% year over year, and maintenance revenue was approximately $981,000. Geographically, North America total revenue grew 25% year over year, EMEA 39% year over year, APAC 23% year over year. Q4 net new ARR was $26.8M, total ARR ended at $416.8M, up 27% year over year. Q4 gross retention rate (adjusted for FX) was 88%, net retention rate 110%. Gross profit for Q4 was $85.1M, with a gross margin of 74.2%. Non-GAAP operating income for Q4 was $22.9M, with a 20% operating margin

• For Q1, total revenues are expected to be $115 million to $117 million, a 25% growth at the midpoint. Non-GAAP operating income is expected to be $19.5 million to $20.5 million. • For the full year, total ARR is expected to be $525.1 million to $531.1 million, a 27% growth at the midpoint. Total revenues are expected to be $509.4 million to $517.4 million, a 22% growth at the midpoint. Full year non-GAAP operating income is expected to be $92.6 million to $96.6 million. FX adjusted ARR growth guidance is 26% at the midpoint, with the delta between ARR and revenue growth due to services business and term license revenue

• Migration served as a two-point headwind to gross retention rate in Q4, and could put modest pressure on gross retention rate in 2026. • The public sector, particularly the federal civilian piece, had a lower growth rate in 2025, although other parts of the public sector and the global strategy are key components of growth

Q: Follow-up on ARR guide and AI revenue, A: There is consistent growth across all three regions, and AvePoint is seeing enterprises have AI projects and realize efficiency, but there are data readiness issues for co-pilot deployment.

Q: Hybrid pricing strategy, A: AvePoint already has capacity-based licensing in some areas, and is working on a blend of seat and consumption-based pricing, with agent licensing also being a part of it.

Q: Sequential pacing of net new ARR, A: Q1 is generally a step down sequentially from Q4 and is usually the lowest quarter in terms of ARR, then there is a pickup in Q2, and the second half of the year is generally stronger than the first half.

Q: Free cash flow, A: Impact from one-time tax payments and timing of receivables, and term license revenue has an impact on revenue recognition.

Q: Investments in 2026, A: AvePoint is not slowing down on the tech side, leveraging AI for productivity, and is also making investments on the non-tech side leveraging AI.

Q: Software disruption risk, A: AvePoint continues to have robust growth with multiple growth vectors and is defensible in the data curation and governance layer.

Q: U.S. Fed business, A: The public sector growth rate was lower in the federal civilian piece, but other parts of the public sector and the global strategy are strong.

Q: Control suite ARR decline, A: It is twofold, with migration and data movement resonating, and the average deal size of control licenses being lower but with high margins