AvePoint, Inc. Q1 FY2026 earnings call

Q1 was a strong start to the year with 12th straight quarter of double - digit organic net new ARR growth. There has been a shift in the market from AI discussions focused on productivity to enterprise trust in AI. AppPoint's integrated approach includes see (unified real - time visibility across the data estate), govern (automated policy enforcement, compliance standards, and access controls), and recover (granular, automated recovery from failures). Examples such as a US pharmacy benefits manager and a large transportation and logistics conglomerate using AppPoint for AI deployment are provided. Strategic priorities remain unchanged and the conviction in the $1 billion ARR goal by 2029 is strong

Total revenues in Q1 were $117.2 million, representing 26% year - over - year growth and above the high end of guidance. On a constant currency basis, total revenues grew 20% year - over - year. SAS revenues were $93.4 million, growing 35% year - over - year and representing 80% of total Q1 revenues. Term license and support revenues declined 29% year - over - year and represented 8% of Q1 revenues. Services revenues grew 33% year - over - year to $14.5 million, representing 12% of Q1 revenues. North America total revenue growth was 21% year - over - year, EMEA total revenue growth was 30% year - over - year, and APAC total revenues grew 28% year - over - year. ARR in Q1: North America ARR grew 21%, EMEA ARR grew 32%, and APAC ARR grew 27%, with total ARR of $435.2 million, representing year - over - year growth of 26% or 23% after adjusting for FX. Net new ARR in Q1 was $18.4 million, representing growth of 17% year - over - year after excluding the $2.8 million of ARR acquired in Q1 of last year. 58% of total ARR came through the channel. Gross profit for Q1 was $86.1 million, with a gross margin of 73.4%. Operating expenses in Q1 totaled $65.6 million, and non - GAAP operating income was $20.5 million, representing a 17.5% operating margin

Full year ARR guidance is raised. The updated full - year revenue guidance is total revenues of $509.4 million to $515.4 million, with a 22% midpoint growth. Non - GAAP operating income is expected to be $91.5 million to $94.5 million. For the second quarter, total revenues are expected to be $120.3 million to $122.3 million, with a 19% midpoint growth. On a constant currency basis, revenue growth is 18% midpoint. FX headwinds impact the guidance

Q: Unpack the 1Q performance and constant currency ARR growth.

A: It was right in line with expectations, and public sector traction is driving the acceleration.

Q: What metrics correlate with the AI message?

A: Agent Pulse is driving interest, and nearly half of the pipeline is now the control suite.

Q: Elaborate on the durability demand in the resilience segment.

A: There is robust growth, with over 60% of new ARR coming from existing customers, and bundling is influencing deal sizes.

Q: Talk about the shift to the channel - first approach.

A: It's a channel - first strategy, with a comp neutral approach, and channel efficiency is driving the cost of sales/marketing down.

Q: How is AI governance value captured?

A: The services component is part of outcome development, and licensing follows market makers.

Q: Discuss durability demand in the resilience segment.

A: There is high demand, over 60% of new ARR from existing, and agent cost is a big topic.

Q: Impact of Microsoft Copilot adoption.

A: AI adoption is driving growth, not specific to office co - pilot numbers.

Q: SAS mix shift.

A: There is a shift from term license to SaaS, with short - term revenue impact but long - term even - out.

Q: Channel partner economics.

A: It's a channel - first strategy, with a comp neutral model and an economic flywheel.

Q: Hybrid pricing model impact.

A: Outcome - based services, 88% is cloud/subscription, and licensing follows market makers.

Q: Microsoft Copilot adoption effect.

A: AI adoption is driving growth, not specific to office co - pilot numbers.

Q: SAS mix shift impact.

A: Shift from term license to SaaS, short - term revenue impact, long - term evens out.

Q: Channel - first approach details.

A: Channel - first strategy, comp neutral, channel efficiency driving cost reduction.

Q: AI governance value capture details.

A: Services component in outcome development, licensing follows market makers.

Q: Resilience segment durability details.

A: High demand, over 60% new ARR from existing, agent cost a big topic.

Q: Microsoft Copilot adoption impact details.

A: AI adoption driving growth, not specific office co - pilot numbers.

Q: SAS mix shift details.

A: Shift to SaaS from term license, short - term revenue impact, long - term evens out.

Q: Channel - first approach details.

A: Channel - first strategy, comp neutral, channel efficiency driving cost reduction.

Q: Hybrid pricing model impact details.

A: Outcome - based services, 88% cloud/subscription, licensing follows market makers.

Q: Next question from Joseph Gallo: Unpack 1Q performance, constant currency ARR growth.

A: Right in line with expectations, public sector traction driving acceleration.

Q: Metrics correlating with AI message.

A: Agent Pulse driving interest, nearly half pipeline now control suite.

Q: Durability demand in resilience segment.

A: Robust growth, 60+% new ARR from existing customers, bundling influencing deal sizes.

Q: Shift to channel - first approach.

A: Channel - first strategy, comp neutral, economic model flywheel.

Q: AI governance value capture.

A: Services component part of outcome development, licensing follows market makers.

Q: Durability demand in resilience.

A: High demand, 60+% new ARR from existing, agent cost a big topic.

Q: Microsoft Copilot adoption impact.

A: AI adoption driving growth, not specific office co - pilot numbers.

Q: SAS mix shift.

A: Shift to SaaS from term license, short term revenue impact, long term evens out.

Q: Channel partner economics.

A: Channel - first strategy, comp neutral, channel efficiency driving cost of sales/marketing down.

Q: Hybrid pricing model impact.

A: Outcome - based services, 88% cloud/subscription, licensing follows market makers