美國
證券交易委員會
華盛頓特區20549
格式
| | 根據1934年證券交易法第13或15(d)節的季度報告 |
截至季度結束日期的財務報告
or
| | 根據1934年證券交易法第13或15(d)節的轉型報告書 |
從__________到__________的過渡期。
委員會文件編號：001-38851
AvePoint, Inc.
(根據其章程規定的註冊人準確名稱)
| | |
| （設立或組織的其他管轄區域） | （納稅人識別號碼） |
（總部地址）（郵政編碼）
(
(註冊人電話號碼，包括區號)
（原名、原地址和原財年，如自上次報告以來有變動）。
在法案第12(b)條的規定下注冊的證券：
| 每一類的名稱 | 交易標的 | 在其上註冊的交易所的名稱 | ||
| | | The | ||
| | | The |
請勾選以下選項以表明註冊人：（1）已在過去的12個月內根據《證券交易所法》第13或15（d）條規定提交了所有要求提交的報表（或者在所需提交此類報表的更短期限內），並且（2）在過去的90天內一直遵守了這些申報要求。
請在以下勾選方框表示註冊人是否已在Regulation S-T Rule 405規定的前12個月(或在註冊人需要提交此類文件的較短期間內)提交了每個互動數據文件。
請在勾選標記中表明發行人是大型加速申報人、加速申報人、非加速申報人、較小報告公司還是新興增長型公司。請參見證券交易所法案規則12b-2中「大型加速申報人」、「加速申報人」、「較小報告公司」和「新興增長型公司」的定義。
| | 加速量申報人 ☐ |
| 非加速報告人 ☐ | 小型報告公司 |
| 新興成長性公司 |
如果是新興成長型公司，在選中複選標記的同時，如果公司已選擇不使用根據證券交易法第13(a)條提供的任何新的或修訂後的財務會計準則的延長過渡期來符合新的或修訂後的財務會計準則，則表明該公司已選擇不使用根據證券交易法第13(a)條提供的任何新的或修訂後的財務會計準則的延長過渡期來符合新的或修訂後的財務會計準則。☐
請勾選以下選項以指示註冊人是否爲外殼公司(根據交易所法規則12b-2定義)。是
截至2024年11月6日，已發行和流通的
10-Q表格
截至財政季度結束 2024年9月30日
目錄
| 前瞻性聲明 | 3 |
| 項目2。未註冊的股權銷售，所得使用和發行人購買股權 | 51 |
| 第3項。 對優先證券的違約 | 51 |
| 事項4。 礦山安全披露 | 51 |
| 項目5。 其他信息 | 52 |
| 簽名 | 54 |
這份關於表格10-Q的季度報告（以下簡稱“季度報告”）的AvePoint, Inc.（以下簡稱“公司,” “艾芙坡,” “我們," “我們”和“我們的）包括可能構成《1995年證券訴訟改革法》第27A條修訂後（「《證券法》」）意義下的「前瞻性聲明」的估計、預測、與我們業務計劃、目標和預期經營結果相關的表述。證券法”及《1934年證券交易法》第21E條修訂後（「《證券交易法》」）”。使擁有公司註冊證券類別10%以上股權的官員、董事或實際股東代表簽署人遞交表格3、4和5（包括修正版及有關聯合遞交協議）,符合證券交易法案第16(a)條及其下屬規則規定的要求；”。前瞻性聲明及有關可能導致實際結果和事件出現重大差異的風險和不確定因素的描述，可能會貫穿於本季度報告各部分，包括「管理層對財務狀況和經營業績的討論與分析」（本季度報告的第I部分第2項）、「關於市場風險的定量與定性披露」（本季度報告的第I部分第3項）以及「風險因素」（本季度報告的第II部分第1A項）。這些風險和不確定性還包括，但不限於，有時出現在公司向證券交易委員會提交的報告中的那些描述中。SEC”).
這些展望性聲明通常通過"相信"、"項目"、"期待"、"預期"、"估計"、"打算"、"策略"、"未來"、"機會"、"計劃"、"可能"、"應當"、"將"、"將會"、"將持續"、"可能會導致"等詞語來識別。然而，若沒有出現上述詞語或類似表達，並不意味着該聲明不具備前瞻性。凡是涉及我們預期或預計將來發生的經營表現、事件或發展，包括與成交量增長、銷售額、收益有關的聲明，以及表達對未來經營結果一般看法的聲明，均屬於前瞻性聲明。這些展望性聲明本質上存在重大風險和不確定性，並基於我們管理層的信念以及目前可獲得的假設和信息。我們管理層認爲，這些展望性聲明在作出時是合理的。然而，讀者在評估這些展望性聲明時應謹慎，不應過分依賴任何此類展望性聲明，因爲此類聲明僅代表作出時的日期。讀者應在風險和不確定性背景下評估所有作出的展望性聲明。上述引用的重要因素可能不包含所有對投資者重要的因素。
此外，我們不能保證我們將實現期望的結果或發展，即使實現了，也不能保證其產生的後果或對我們或我們的運營產生的影響與我們預期的一樣。我們不承擔公開更新或修訂任何前瞻性聲明的義務，除非法律要求。所有歸屬於我們或代表我們行事的人的口頭或書面前瞻性聲明，均受到這些警示性聲明以及我們在其他時間在SEC備案和公共通信中不時發表的其他警示性聲明的明確限制。
項目1
第一部分。財務信息。
項目1.基本報表。
彙編的綜合資產負債表
（以千爲單位，除每股面值外）
(未經審計)
| 九月三十日 | 十二月 31, | |||||||
| 2024 | 2023 | |||||||
| 資產 | ||||||||
| 流動資產： | ||||||||
| 現金和現金等價物 | $ | $ | ||||||
| 短期投資 | ||||||||
| 應收賬款，淨額 | ||||||||
| 預付費用和其他流動資產 | ||||||||
| 流動資產總額 | ||||||||
| 財產和設備，淨額 | ||||||||
| 善意 | ||||||||
| 無形資產，淨額 | ||||||||
| 經營租賃使用權資產 | ||||||||
| 遞延合同費用 | ||||||||
| 其他資產 | ||||||||
| 總資產 | $ | $ | ||||||
| 負債、夾層權益和股東權益 | ||||||||
| 流動負債： | ||||||||
| 應付賬款 | $ | $ | ||||||
| 應計費用和其他流動負債 | ||||||||
| 遞延收入的本期部分 | ||||||||
| 流動負債總額 | ||||||||
| 長期經營租賃負債 | ||||||||
| 遞延收入的長期部分 | ||||||||
| 盈利股票負債 | ||||||||
| 其他負債 | ||||||||
| 負債總額 | ||||||||
| 承付款和或有開支（注9） | ||||||||
| 夾層股權 | ||||||||
| 可贖回的非控制性權益 | ||||||||
| 夾層資產總額 | ||||||||
| 股東權益 | ||||||||
| 普通股，$ 面值； 已授權的股份， 和 分別截至2024年9月30日和2023年12月31日的已發行和流通股份 | ||||||||
| 額外的實收資本 | ||||||||
| 累計其他綜合收益 | ||||||||
| 累計赤字 | ( | ) | ( | ) | ||||
| 非控股權益 | ||||||||
| 股東權益總額 | ||||||||
| 負債總額、夾層權益和股東權益 | $ | $ | ||||||
詳見附註。
收入簡明合併表格
2024年4月27日
(未經審計)
| 三個月已結束 |
九個月已結束 |
|||||||||||||||
| 九月三十日 |
九月三十日 |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| 收入： |
||||||||||||||||
| SaaS的 |
$ | $ | $ | $ | ||||||||||||
| 定期許可和支持 |
||||||||||||||||
| 服務 |
||||||||||||||||
| 保養 |
||||||||||||||||
| 總收入 |
||||||||||||||||
| 收入成本： |
||||||||||||||||
| SaaS的 |
||||||||||||||||
| 定期許可和支持 |
||||||||||||||||
| 服務 |
||||||||||||||||
| 保養 |
||||||||||||||||
| 總收入成本 |
||||||||||||||||
| 毛利潤 |
||||||||||||||||
| 運營費用： |
||||||||||||||||
| 銷售和營銷 |
||||||||||||||||
| 一般和行政 |
||||||||||||||||
| 研究和開發 |
||||||||||||||||
| 運營費用總額 |
||||||||||||||||
| 運營收入（虧損） |
( |
) | ( |
) | ||||||||||||
| 其他費用，淨額 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
| 所得稅前收入（虧損） |
( |
) | ( |
) | ( |
) | ||||||||||
| 所得稅支出 |
||||||||||||||||
| 淨收益（虧損） |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||
| 歸因於非控股權益的淨收益（虧損） |
( |
) | ( |
) | ||||||||||||
| 普通股股東可獲得的淨收益（虧損） |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||
| 每股淨收益（虧損）： |
||||||||||||||||
| 基本 |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||
| 稀釋 |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||
| 已發行股票的加權平均值： |
||||||||||||||||
| 基本 |
||||||||||||||||
| 稀釋 |
||||||||||||||||
請參閱附註。
綜合收益（損失）的簡明合併報表
（以千計）
(未經審計)
| 三個月結束 |
九個月結束 |
|||||||||||||||
| 9月30日， |
9月30日， |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
|
|
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||
| 其他綜合收益（損失）淨稅後 |
||||||||||||||||
| 可供出售金融資產未實現收益（損失） |
( |
) | ||||||||||||||
| 外幣翻譯調整 |
||||||||||||||||
| 其他綜合收益總額 |
||||||||||||||||
| 總綜合收益（損失） |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||
| 應歸屬於少數股東的綜合收益（損失） |
( |
) | ( |
) | ( |
) | ||||||||||
| 普通股股東可獲得的綜合收益（虧損） |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||
請參閱附註。
減記合併資產負債表的樓中樓權益和股東權益
（單位：千元，股份數量除外）
(未經審計)
| 2024年9月30日止三個月 |
||||||||||||||||||||||||||||
| 累積的 |
||||||||||||||||||||||||||||
| 額外的 |
其他 |
總計 |
||||||||||||||||||||||||||
| 普通股 |
實繳 |
累積的 |
綜合 |
非控制權益 |
股東的 |
|||||||||||||||||||||||
| 股份 |
數量 |
資本 |
$ |
收入 |
利息 |
股權 |
||||||||||||||||||||||
| 2024年6月30日結餘 |
$ | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||
| 期權行使所得 |
||||||||||||||||||||||||||||
| 普通股發行，以換取限制股單位 |
||||||||||||||||||||||||||||
| 股票補償費用 |
— | |||||||||||||||||||||||||||
| 盈利補償限制股單位重新分類爲盈利補償股票 |
— | ( |
) | ( |
) | |||||||||||||||||||||||
| 購買公開認股權證 |
— | ( |
) | ( |
) | |||||||||||||||||||||||
| 普通股的回購和養老 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||
| 綜合收入： |
||||||||||||||||||||||||||||
| 淨利潤 |
— | |||||||||||||||||||||||||||
| 可供出售證券未實現收益 |
— | |||||||||||||||||||||||||||
| 外幣翻譯調整 |
— | |||||||||||||||||||||||||||
| 2024年9月30日餘額 |
$ | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||
| 2023年9月30日止三個月 | ||||||||||||||||||||||||||||||||
| 可贖回 | 總計 | 累積的 | ||||||||||||||||||||||||||||||
| 非控制 | 中層融資 | 額外的 | 其他 | 總計 | ||||||||||||||||||||||||||||
| 利息 | 股東權益 | 普通股 | 實繳 | 累積的 | 綜合 | 股東的 | ||||||||||||||||||||||||||
| 數量 | 數量 | 股份 | 數量 | 資本 | $ | 收入 | 股權 | |||||||||||||||||||||||||
| 2023年6月30日，餘額 | $ | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||||
| 期權行使所得 | — | — | ||||||||||||||||||||||||||||||
| 限制性股票單位歸屬後發行的普通股 | — | — | ||||||||||||||||||||||||||||||
| 股票補償費用 | — | — | — | — | ||||||||||||||||||||||||||||
| 重分類盈餘限制性股票單位爲盈餘股票 | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||||||||
| 普通股的回購和養老 | — | — | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||||||||||||
| 綜合收益（損失）： | ||||||||||||||||||||||||||||||||
| 淨損失 | — | — | — | (4,230 | ) | — | ( | ) | ||||||||||||||||||||||||
| 歸屬於淨損失和可贖回非控制權益的遞增 | ( | ) | ( | ) | — | 18 | ||||||||||||||||||||||||||
| 外幣翻譯調整 | — | — | ||||||||||||||||||||||||||||||
| 2023年9月30日餘額 | $ | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||||
請參閱附註。
AvePoint, Inc.
減記合併資產負債表的樓中樓權益和股東權益
（單位：千元，股份數量除外）
(未經審計)
| 2024年9月30日止九個月 |
||||||||||||||||||||||||||||||||||||
| 可贖回 |
總計 |
累積的 |
||||||||||||||||||||||||||||||||||
| 非控制 |
中層融資 |
額外的 |
其他 |
總計 |
||||||||||||||||||||||||||||||||
| 利息 |
股東權益 |
普通股 |
實繳 |
累積的 |
綜合 |
非控制權益 |
股東的 |
|||||||||||||||||||||||||||||
| 數量 |
數量 |
股份 |
數量 |
資本 |
$ |
收入 |
利息 |
股權 |
||||||||||||||||||||||||||||
| 2023年12月31日的餘額 |
$ | $ | $ | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||||||
| 期權行使所得 |
— | — | ||||||||||||||||||||||||||||||||||
| 限制性股票單位歸屬後發行的普通股 |
— | — | ( |
) | ||||||||||||||||||||||||||||||||
| 股票補償費用 |
— | — | — | |||||||||||||||||||||||||||||||||
| 可贖回非控制權益的遞增 |
( |
) | ( |
) | — | — | — | — | — | |||||||||||||||||||||||||||
| 非控制權益的贖回 |
( |
) | ( |
) | — | ( |
) | |||||||||||||||||||||||||||||
| 重分類盈餘限制性股票單位爲盈餘股票 |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||
| 購買公開認股權證 |
— | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||
| 普通股的回購和養老 |
— | — | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
| 綜合（損失）收益： |
||||||||||||||||||||||||||||||||||||
| 淨（虧損）利潤 |
(5 | ) | (5 | ) | — | ( |
) | ( |
) | |||||||||||||||||||||||||||
| 可供出售證券的未實現損失 |
— | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||
| 外幣翻譯調整 |
( |
) | ( |
) | — | — | ||||||||||||||||||||||||||||||
| 2024年9月30日餘額 |
$ | $ | $ | $ | $ | ( |
) | $ | $ | $ | ||||||||||||||||||||||||||
| 2023年9月30日止九個月 |
||||||||||||||||||||||||||||||||||||||||
| 可贖回 |
總計 |
累積的 |
||||||||||||||||||||||||||||||||||||||
| 非控制 |
中層融資 |
額外的 |
其他 |
總計 |
||||||||||||||||||||||||||||||||||||
| 利息 |
股東權益 |
普通股 |
實繳 |
庫存股 |
累積的 |
綜合 |
股東的 |
|||||||||||||||||||||||||||||||||
| 數量 |
數量 |
股份 |
數量 |
資本 |
股份 |
數量 |
$ |
收入 |
股權 |
|||||||||||||||||||||||||||||||
| 2022年12月31日的餘額 |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | $ | $ | ||||||||||||||||||||||||||||
| 期權行使所得 |
— | — | ||||||||||||||||||||||||||||||||||||||
| 限制性股票單位歸屬後發行的普通股 |
— | — | ||||||||||||||||||||||||||||||||||||||
| 股票補償費用 |
— | — | — | — | ||||||||||||||||||||||||||||||||||||
| 重分類盈餘限制性股票單位爲盈餘股票 |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||||||||||||||||||
| 普通股的回購和養老 |
— | — | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||
| 綜合收益（損失）： |
||||||||||||||||||||||||||||||||||||||||
| 淨損失 |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||||||||
| 歸屬於淨利潤和可贖回非控制權益的增加 |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
| 外幣翻譯調整 |
( |
) | ( |
) | — | — | ||||||||||||||||||||||||||||||||||
| 2023年9月30日餘額 |
$ | $ | $ | $ | $ | $ | ( |
) | $ | $ | ||||||||||||||||||||||||||||||
請參閱附註。
簡明的綜合現金流量表
（以千計）
(未經審計)
| 九個月已結束 |
||||||||
| 九月三十日 |
||||||||
| 2024 |
2023 |
|||||||
| 運營活動 |
||||||||
| 淨虧損 |
$ | ( |
) | $ | ( |
) | ||
| 爲使淨虧損與經營活動提供的淨現金保持一致而進行的調整： |
||||||||
| 折舊和攤銷 |
||||||||
| 經營租賃使用權資產支出 |
||||||||
| 外幣重新計量損失 |
||||||||
| 基於股票的薪酬 |
||||||||
| 遞延所得稅 |
( |
) | ( |
) | ||||
| 其他 |
( |
) | ||||||
| 盈利和認股權證負債價值的變化 |
||||||||
| 運營資產和負債的變化： |
||||||||
| 應收賬款 |
( |
) | ||||||
| 預付費用和其他流動資產 |
||||||||
| 遞延合同成本和其他資產 |
( |
) | ( |
) | ||||
| 應付賬款、應計費用、經營租賃負債和其他負債 |
( |
) | ( |
) | ||||
| 遞延收入 |
||||||||
| 經營活動提供的淨現金 |
||||||||
| 投資活動 |
||||||||
| 投資的到期日 |
||||||||
| 購買投資 |
( |
) | ( |
) | ||||
| 內部使用軟件的資本化 |
( |
) | ( |
) | ||||
| 購買財產和設備 |
( |
) | ( |
) | ||||
| 應收票據的發行 |
( |
) | ( |
) | ||||
| 其他投資活動 |
( |
) | ||||||
| 用於投資活動的淨現金 |
( |
) | ( |
) | ||||
| 融資活動 |
||||||||
| 回購普通股 |
( |
) | ( |
) | ||||
| 股票期權行使的收益 |
||||||||
| 贖回可贖回的非控股權益 |
( |
) | ||||||
| 購買公開認股權證 |
( |
) | ||||||
| 償還融資租賃 |
( |
) | ( |
) | ||||
| 用於融資活動的淨現金 |
( |
) | ( |
) | ||||
| 匯率對現金的影響 |
( |
) | ||||||
| 現金和現金等價物的淨增加（減少） |
( |
) | ||||||
| 期初的現金和現金等價物 |
||||||||
| 期末的現金和現金等價物 |
$ | $ | ||||||
| 現金流信息的補充披露 |
||||||||
| 繳納的所得稅 |
$ | $ | ||||||
詳見附註。
1. 業務和組織性質
AvePoint公司（以下統稱爲「公司及其子公司」艾芙坡”公司“公司,” “我們,” “我們本公司我們的”）在2001年7月24日正式註冊成爲新澤西州的一家公司 並於之後遷入特拉華州，成爲特拉華州的一家公司 紅omiciled爲特拉華州公司 2006.
AvePoint 提供一種雲原生軟件平台，組織依賴其來優化運營、管理關鍵數據並確保數字工作環境的安全。隨着全球企業 embracing 混合工作的新常態，它們必須構建並提供一個全新、無縫的工作體驗，以滿足知識工作者的需求，重點放在旨在改善整個組織協作的廣泛 saas概念和提高生產力的應用程序組合上。
我們的主要企業總部位於新澤西州澤西城，我們的主要運營總部位於弗吉尼亞州里士滿，並在北美、歐洲、亞洲、澳洲和中東設有額外辦公室。
2. 重大會計政策摘要
報告前提
隨附的截至未經審計的簡明合併資產負債表 2023年12月31日， 源自經審計的財務報表，未經審計的中期簡明合併財務報表是根據美國證券交易委員會的規章制度（”秒”）以獲取中期財務信息，包括公司和在可變利息和投票模式下合併的實體的賬目。所有公司間往來交易和餘額均已清除。某些信息和披露通常包含在根據美國普遍接受的會計原則編制的合併財務報表中（”GAAP”) 已被壓縮或省略。
管理層認爲，這些基本報表包含所有重大調整，包括正常發生的計提，以公正地呈現所示期間的財務狀況、經營成果和現金流量。中期結果爲 沒有 並不一定代表全年或任何未來時期可預期的結果。 爲了管理信用風險，管理層對客戶的財務狀況進行持續的信用評估，監測付款績效，並評估當前經濟情況，以及合理和支持未來經濟情況的預測，以及可能出現的其他情況。對於任何其他中期期間或截至年末應另有期望 2014年12月31日
這些簡明綜合基本報表應與我們的審計綜合基本報表以及我們最近的《年度報告》中包含的相關附註一起閱讀 10-k的年度報告中包含的與此期間未經審計的簡明合併財務報表及其附註有關的注意事項。 2023年12月31日年月日提交給SEC。 二月份 29, 2024 (“年度報告”).
公司的重要會計政策詳見附註 2 年度報告中包含的合併財務報表附註。這些政策發生了 no 重大變化。 九之額外聯邦稅項負債。 9月30日是3,321萬美元，因爲公司的普通股的公允價值低於這些期權的行權價。30, 2024.
比較數據
爲符合當前期間的表達方式，已將以前期間的某些金額重新分類，其中包括：
| • | 將earn-out和認股權責任變動重新分類至損益表中的其他費用淨額 三 和 九月份結束時 2023年9月30日 | |
| • | 將利息收入淨額重新分類至損益表中的其他費用淨額 三 和 九月份結束時 2023年9月30日。 |
使用估計
根據GAAP編制的簡明合併基本報表需要管理層做出會影響我們簡明合併基本報表及其附註中報告金額的估計和假設。我們基於歷史經驗和我們認爲在特定情況下合理的各種其他假設來進行估計和假設。報告的資產和負債金額以及每個報告期的營業收入和費用金額受到估計和假設的影響，這些估計和假設用於，但 不 不僅僅限於，確認營業收入的獨立售價的會計處理、遞延合同成本、商譽和其他無形資產的估值、所得稅及相關準備金、業務合併中的購買價格以及預留的收益債務。實際結果和結果 爲了管理信用風險，管理層對客戶的財務狀況進行持續的信用評估，監測付款績效，並評估當前經濟情況，以及合理和支持未來經濟情況的預測，以及可能出現的其他情況。由於風險和不確定性，實際結果和管理層的估計與假設可能存在差異。
外幣
公司的簡明綜合收入表中，以貨幣單位計價，因匯率波動產生的交易收益和損失包括在其他費用淨額中。
現金及現金等價物
公司與多家高信用質量的金融機構保持現金存款。公司將原始到期日爲
三 個月或更短期限的投資視爲現金等價物。這些投資存在
不 顯著的市場風險。公司將其現金及現金等價物存放在銀行帳戶中，這些帳戶有時超過聯邦保險限額。公司
未 在此類帳戶中遭受任何損失。公司在操作中使用的現金餘額存放在基於限制現金轉出國家的法規的實體中。截至 2024年9月30日和 2023年12月31日截至2023年10月，公司的這些實體的現金餘額爲$
商譽
沒有 自收購以來，是否發生了任何事件或情況變化，表明我們報告單位的公允價值低於其賬面價值。
遞延合同成本。
我們延遲銷售佣金，這被視爲獲取或續訂saas-雲計算、期限許可和壓力位、服務和維護合同的增量和可收回成本。資產受益預期期限或平均續約期限的變化將在其發生時按前瞻性基礎上進行確認。
延遲合同成本的攤銷額爲$
營業收入確認
公司的營業收入來源於 四 主要來源包括：saas-雲計算、期限授權和壓力位、服務和維護。服務包括安裝服務、培訓和其他諮詢服務。
授權許可收入在一個時間點被確認爲$
應收賬款淨額包括應收賬款和當前未開票應收款，扣除信用損失準備。當我們確認營收但尚未開票時，我們會記錄未開票應收款。我們在直接和間接銷售中有良好的收款歷史。我們定期評估應收賬款的可收回性，並根據應收款的逾期、預期的支付能力和收款經驗，必要時提供信用損失準備。截止到 2024年9月30日和 2023年12月31日，信用損失準備爲 不 下表列出了所得稅負擔和相關的有效稅率(單位：百萬美元，除百分比外)：
我們在簡明合併資產負債表中記錄遞延營業收入，當現金在收入獲得之前被收取或開票時。遞延營業收入截至 2024年9月30日和 2023年12月31日該期間股票期權授予的加權平均授予日公允價值爲每股$。
公司的應收賬款淨額、遞延收入和遞延合同成本的期初和期末餘額如下：
| 賬目 | 遞延 | |||||||||||
| 應收款項, | 待攤費用 | 合同 | ||||||||||
| 由於每股普通股的發行價格可能高於每股普通股的賬面價值，因此您在此次購買中獲得的普通股的賬面價值可能會立即大幅稀釋，詳見下文的「稀釋」部分，以了解您在此次購買中要承受的稀釋情況。(1) | 營業收入 | 成本 | ||||||||||
| (以千爲單位) | ||||||||||||
| 2023年12月31日的餘額 | $ | $ | $ | |||||||||
| 2024年9月30日財務狀況 | ||||||||||||
(1包括長期未開多的應收款。
截至2023年7月31日，續借貸款協議下未償還的借款額爲沒有 公司合同資產或負債在期間內的重大變動九 截至九個月 2024年9月30日截至年度 2023年12月31日在其銷售活動之外。
截至 2024年9月30日分配給剩餘履約義務的交易價格，包括遞延營業收入和將在未來期間開具發票並確認爲營業收入的金額，爲$
以股票爲基礎的補償
股票薪酬代表與員工發放的股票獎勵相關的成本。到目前爲止，我們已發放了股票期權和受限股票單位。公司根據授予日期的估計公允價值衡量股票薪酬成本，並在必要的服務期間內按比例認列成本，扣除當期的實際放棄。
我們使用Black-Scholes估值模型估算股票期權的公允價值。Black-Scholes模型需要高度主觀的假設，才能得出計算股票期權公允價值所需的輸入。爲了估算股票期權的預期期限，公司會考慮期權的合同條款，包括歸屬期和到期期限，以及歷史期權行使數據和當前市場狀況，以確定預計的預期期限。該公司的歷史經驗過於有限，無法合理估計預期期限。預期波動率基於一組同行實體的歷史波動率。股息收益率基於歷史股息收益率。無風險利率基於美國國債目前可用的隱含收益率 零 優惠券發行，剩餘期限等於預期期限。
近期會計準則不 但有效
在2019年12月，2023年11月，FASB發佈了會計準則更新("ASU") 《金融工具-信用損失》以引入新的準則，用於對其範疇內的工具的信貸損失進行會計處理。ASU 2023-07, “可報告細分披露的改進（主題 280)” (“ASU 2023-07）. ASU 2023-07 旨在通過對重大細分費用的增強披露，改善可報告細分的披露要求。該ASU中的修訂在每年期間結束後生效。 2023年12月15日之後。以及在財政年度開始後的中期。 2024年12月15日。應將該ASU的採納追溯應用於所有在基本報表中呈現的期數。也允許提前採納。我們目前正在評估ASU 2023-07 對我們的合併基本報表及相關披露的影響。
在2019年12月， FASB於2023年12月發佈了會計準則更新"ASU" 《金融工具-信用損失》以引入新的準則，用於對其範疇內的工具的信貸損失進行會計處理。ASU 編號 2023-09, “對所得稅披露的改進（主題 740)” (“ASU 2023-09”ASU 2023-09 要求報告實體的有效稅率調節進行信息分項披露，並提供有關已繳納所得稅的額外信息。該ASU中的修訂自2023年後開始的年度期間起生效。 2023年12月15日之後開始的財政年度，所有上市實體適用，對於2024年12月15日之後開始的財政年度內中期適用。也允許提前採用。我們目前正在評估ASU的影響 2023-09 將會對我們的合併基本報表及相關披露產生影響。
3. 善意
商譽淨值變動如下:
| 商譽 | ||||
| (以千爲單位) | ||||
| 截至2023年12月31日的餘額 | $ | |||
| 受外幣匯率變動的影響 | ( | ) | ||
| 截至2024年9月30日的餘額 | $ | |||
4.無形資產, 淨額
無形資產包括獲得的無形資產和自主開發的軟件。
公司無形資產截至日期的餘額摘要 2024年9月30日和 2023年12月31日 如下是當年的普通股認股權活動總結:
| 總資產賬面價值 | 累計攤銷 | 淨 carrying 金額 | 總賬面價值 | 累計攤銷 | 淨賬面價值 | |||||||||||||||||||
| 2024年9月30日 | 2023年12月31日 | |||||||||||||||||||||||
| (以千爲單位) | ||||||||||||||||||||||||
| 科技和軟件 | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
| 與客戶相關的資產 | ( | ) | ( | ) | ||||||||||||||||||||
| 內容 | ( | ) | ( | ) | ||||||||||||||||||||
| 總計 | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
無形資產攤銷費用爲$
截至 2024年9月30日預計未來的無形資產淨攤銷費用如下：
| 年底於12月31日結束 | ||||
| (以千爲單位) | ||||
| 2024（三個月） | $ | |||
| 2025 | ||||
| 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| 以後 | ||||
| 受攤銷影響的總無形資產 | $ | |||
5. 應收賬款，淨額
淨應收賬款包括以下元件：
| 九月三十日， |
12月31日 |
|||||||
| 2024 |
2023 |
|||||||
| (以千爲單位) |
||||||||
| 交易應收款 |
$ | $ | ||||||
| 當前未計費應收款 |
||||||||
| 信貸損失準備金 |
( |
) | ( |
) | ||||
| $ | $ | |||||||
6. 信用額度
公司與匯豐銀行美國國家協會簽訂了一項貸款和安防半導體協議，作爲放款人，用於提供高達xx百萬美元的循環信貸額度，還具有手風琴功能，提供高達xx百萬美元的額外借款能力。貸款協議XX公司與匯豐銀行美國國家協會簽訂了一項貸款和安防半導體協議，作爲放款人。匯豐銀行XX美元。
7.百萬美元
公司的有效稅率爲
有效稅率的變化爲 三結束於 - 個月的期間內 2024年9月30日 相比之下 三-個月期結束 2023年9月30日主要原因是由於在不同稅率下受稅管轄地的稅前收入（虧損）結果混合，外國收入的影響，股票補償以及在某些管轄地變更估值準備金。
有效稅率的變化 九結束於 - 個月的期間內 2024年9月30日 相比之下 九個月期間結束 2023年9月30日主要是由於受不同稅率約束的司法管轄區稅前收入（損失）組合、外國納稅影響、股票補償以及一些司法管轄區估值准許的變化。
公司將持續按季度評估遞延所得稅資產的實現情況，並根據變化的事實和情況調整這些金額。在進行這種評估時，管理層將考慮所有可用的支持數據，包括歷史應稅所得水平、現有暫時性差異的未來沖銷、稅務規劃策略和預計的未來應稅所得。
8.租賃
公司在各種不可取消的運營租賃中有義務，主要是辦公空間。這些租賃的初始期限將在不同的日期到期，直到 2030. 我們在合同建立時判斷是否爲租賃協議。
公司經營租賃費用的組成部分如下所示，在簡明綜合損益表中反映：
| 截至9月30日的三個月 | 截至9月30日的九個月 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (以千爲單位) | ||||||||||||||||
| 租賃負債成本 | $ | $ | $ | $ | ||||||||||||
| 短期租賃支出 (1) | ||||||||||||||||
| 變量租賃成本未包括在租賃負債中 (2) | ||||||||||||||||
| 總租金成本 | $ | $ | $ | $ | ||||||||||||
(1) 短期租賃費用包括過渡日期或租賃開始日期爲開空或更短的租賃租金。 12 月或更短期限的租賃合同的租金支出。
(2) 可變租金成本包括公共區域維護、物業稅以及因指數或利率變化導致的租金波動。
我們的租賃協議通常包括租賃和非租賃元件。非租賃元件主要包括維護和公用事業的付款。我們選擇將所有類別的基礎資產的非租賃元件的固定付款與我們的租金合併，並一起進行覈算，作爲單個租賃元素，這將增加我們的租賃資產和負債金額。
在九 截至九個月 2024年9月30日和 2023，以新的營運租賃負債換取的使用權資產金額爲$
其他與經營租賃相關的信息如下：
| 截至9月30日的三個月 | 截至9月30日的九個月 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (以千爲單位) | ||||||||||||||||
| 支付用於計量租賃責任的金額的現金： | ||||||||||||||||
| 經營租賃的經營現金流量 | $ | $ | $ | $ | ||||||||||||
截至 2024年9月30日，我們的營運租賃平均剩餘租期加權平均爲
| 年底於12月31日結束 | ||||
| （以千爲單位） | ||||
| 2024（三個月） | $ | |||
| 2025 | ||||
| 2026 | ||||
| 2027 | ||||
| 2028 | ||||
| 以後 | ||||
| 總租賃未來支付款項 | $ | |||
| 減：現值調整 | ( | ) | ||
| 未來租賃付款的現值 (1) | $ | |||
(1) 包括運營租賃負債的當前部分，爲xx美元，在簡明綜合資產負債表的應計費用和其他負債中反映。
截至 9月30日是3,321萬美元，因爲公司的普通股的公允價值低於這些期權的行權價。30, 2024, 信用證金額達到$
9. 公司不時涉及各種類型的法律和行政訴訟及索賠。當損失已知或認爲可能且金額可以合理估計時，公司在其簡明合併財務報表中記錄這些事項的負債。隨着每個會計期間獲得更多信息，公司會審核這些估計並在適當時調整損失準備金。如果某一事項可能導致負債，並且損失金額可以合理估計，則公司會估算並披露可能的損失或損失範圍，以儘可能使合併財務報表信息不誤導。如果損失概率很大或無法合理估計，則在其簡明合併財務報表中記錄負債。
法律訴訟
在正常的業務過程中，公司 可以 可能會涉及各種索賠、談判和法律行動。除了在正常業務過程中產生的索賠，截至 2024年9月30日，公司 在測試商譽減值時，公司可以選擇 是任何其他訴訟的一方，該訴訟中有可能、 probable 或可估計的重大索賠。
補償
公司已與其高管和董事簽訂了補償協議。這些協議在其他事項之外，要求 AvePoint 根據特拉華州法律，具體來說是特拉華州《一般公司法》（如同存在或之後修訂），最大程度地對其董事和高管進行補償，包括律師費、判決、罰款和由董事或高管因其在公司擔任董事或高管或他們服務於公司要求提供服務的其他公司或企業而發生的訴訟或訴訟中的和解金額。 可以 公司已與其高管和董事簽訂了補償協議。這些協議在其他事項之外，要求 AvePoint 根據特拉華州法律，具體來說是特拉華州《一般公司法》（如同存在或之後修訂），最大程度地對其董事和高管進行補償，包括律師費、判決、罰款和由董事或高管因其在公司擔任董事或高管或他們服務於公司要求提供服務的其他公司或企業而發生的訴訟或訴訟中的和解金額。 一份 公司已與其高管和董事簽訂了補償協議。這些協議在其他事項之外，要求 AvePoint 根據特拉華州法律，具體來說是特拉華州《一般公司法》（如同存在或之後修訂），最大程度地對其董事和高管進行補償，包括律師費、判決、罰款和由董事或高管因其在公司擔任董事或高管或他們服務於公司要求提供服務的其他公司或企業而發生的訴訟或訴訟中的和解金額。
作爲與Apex科技收購公司（“Apex”）的業務合併的一部分，我們承擔了對Apex科技贊助商有限責任公司和Jeff Epstein、Brad Koenig、David Chao、Peter Bell、Donna Wells和Alex Vieux（“受賠償人” 或 “被告”）的某些賠償義務。 2024年2月2日， Drulias 和 Farzad（作爲所謂的 Apex 股東，“原告）在特拉華州衡平法院提出了一項集體訴訟，標題爲 Dean William Drulias 等訴 Apex Technology Sponsor LLC 等，C.A. No. 2024-0094-LWW。原告對被告提出了違反信託責任和不當得利的指控。 訴狀指控被告在2021年6月2日的 Apex 委託書聲明中做出了虛假和誤導性的披露，影響了股東對Apex與我們的合併的投票，並影響了股東在合併前的贖回權利。 原告尋求未指定的賠償、撤銷或撤銷損害賠償，以及不當得利的追索。我們 在測試商譽減值時，公司可以選擇 在投訴中是一個命名的被告，但根據合併期間簽署的賠償協議對被告有賠償義務。此外，根據業務合併協議，被告獲得了保險政策以涵蓋交易後責任，其中Apex獲得了一份限額爲$的保單。
擔保
在正常業務過程中，某些地理區域或高度監管行業的客戶偶爾需要針對服務項目完成而簽署應急協議，該完成將由存款證書和信用額度保障。存款證書被列入簡明合併資產負債表中的短期投資。截至目前 2024年9月30日，信用證金額爲$
10. 賺取及權證責任
公司收益分成
特定普通股股東和特定期權持有人將按以下方式發行額外的AvePoint普通股：
| • | |
|
| • | |
|
| • | |
上述權利以下簡稱爲“公司盈利權益股”。公司盈利權益股的任何部分如果在上述里程碑日期仍未獲授予期權的持有人，則公司應該代替發行相應的公司盈利權益股，而是發行相應於該等未獲授予期權可發行公司盈利權益股份的公司受限股票單位獎勵（“公司盈利權益RSU”。在評估公司盈利權益股和公司盈利權益RSU時，管理層確定公司盈利權益股代表應在每個報告期按照市值標記的衍生工具，而公司盈利權益RSU代表ASC下的股權 718, - 薪酬-股票薪酬 (“ASC澄清企業財務基本報表中對所述收入稅的不確定性的會計處理 718”。請參閱“附註13股票期權補償” 了解有關公司賺取 RSU 的更多信息。
爲了捕捉與公司盈利股票相關的市場狀況，公司採用了結合蒙特卡羅模擬的方法，該方法涉及隨機迭代，根據適當的概率分佈，在保薦人盈利股票（定義見下文）的合同期限中採用不同的未來價格路徑。公允價值是通過取每次蒙特卡羅模擬試驗的公允價值的平均值來確定的。蒙特卡羅模型需要高度主觀的假設，包括我們普通股價格的預期波動率以及盈利股票的預期期限。單獨大幅增加或減少這些投入可能導致負債大幅增加或降低。在這種方法下，公司盈利股票的公允價值爲 2021 年 7 月 1 日 被確定爲 $
| 9月30日, |
2023年12月31日, | |||||
| 2024 | 2023 | |||||
| 年限（年） |
||||||
| 波動率 |
% |
% | ||||
私人認股權證以取得普通股
在 2021年7月1日， 該公司授予
定向增發warrants不可轉讓，任何轉讓給無關方將導致warrants轉換爲公開warrants。因此，定向增發warrants的公允價值等同於公開交易warrants的報價。根據這種方法，定向增發warrants的公允價值在 2021年7月1日， 的公允價值確定爲$
截至 2024年9月30日，
11. 夾層股權和股東’資產
公司在加利福尼亞州爲其辦公空間租賃了一個子租約，該租約於2023年11月開始，最初租約期至2026年1月。該租約替代了同一地址於2022年1月開始的租約，最初租約期至2024年1月（於2024年1月結束）。此外，該公司還租用其他租期少於十二個月的空間；因此，在資產負債表上不承認此租約爲營運租約。一份 資本股票類別：普通股。以下是公司的資本股票條款摘要。
普通股
根據公司修訂後的公司章程，公司被授權發行最多
股份回購計劃
在 2022年3月17日， 公司宣佈，其董事會授權了一項新的股份回購計劃（“股份回購計劃”）以買入公司的普通股。根據股份回購計劃，公司有權通過在公開市場或私下協商的交易中，回購高達
贊助商盈利股票
在 2021年7月1日， 公司修改了條款
| • | 100% 若通過任何時間，贊助商待償股份份額應在該時間點解鎖並釋放 2028年7月1日之前 AvePoint的股價大於或等於 $15.00 （根據股票拆分、股本縮編、重組、再融資等調整）在任何交易日內；並 20**連續交易日中的任意一段。30 待償股份中剩餘的 | |
| • | 100% 份額 在測試商譽減值時，公司可以選擇 如果在截至任何時間之前已授予的股權將獲得釋放 2028年7月1日 如果公司完成後續交易 |
贊助商收購股份目前正在流通，享有所有普通股權益，唯一的例外是這些股份被設立託管，受限於在滿足上述歸屬條件之前不得轉讓。因此，這些股份被分類爲股權。
公開認股權證以購買普通股
在 2021年7月1日， 399,999股普通股和現金，以替代關於NEPSI收購的特定營收目標的獎勵。
在 2024年8月27日， 公司宣佈開始以現金價格購買其所有未償還的公開 warrants，價格爲 $
可贖回的非控股權益 所有發行和流通的Cibus Global成員單位（普通單位）僅由公司和Cibus Global的某些成員持有，他們在與合併交易相關的選舉中選擇接收由一份B類普通股和一份普通單位組成的單位（Up-C Units），最終按照有效的合併協議的規定，在合併交易的結算時持有這些Up-C Units。Up-C Units一般按1:1的比例可以和A類普通股互換，但受到一定限制。根據ASC810一體化的原則，Cibus Global被認爲是一個具有可變權益的實體，Cibus是其唯一的管理成員和主要受益人。因此，Cibus對Cibus Global進行合併，並將持有Cibus Global的直接獲得經濟利益的其他普通單位持有人作爲公司財務報表中的可贖回非控制權益列示出來。Cibus Global的資產使用沒有限制。
在 九個月結束於 九月30, 2024, MaivenPoint Pte. Ltd.（「MaivenPoint」）的可贖回的非控股權利股東提交了行使看跌選擇權的通知，要求MaivenPoint以$MaivenPoint）的母公司公司大規模股票回購操作，回購價爲 $
沒有
12. 成長股權基金
在 2024年2月28日， 該公司與Lumens Capital Partners Ltd.（"LCP）成立了 A3V 合資公司（創業公司），每人擁有創業公司的平等股份。此外，公司與LCP簽訂了另一項協議，以成立 A3 基金 1, L.P.（基金）。該基金是一個開曼群島的免稅有限合夥企業，旨在投資於成長股權階段的公司和具有強大增長潛力的成熟現金流業務。該基金希望投資於位於企業軟件市場的公司，這與公司和LCP的專業專長以及地理位置一致。
創業公司全資擁有 A3V GP公司，作爲基金的普通合夥人。作爲有限合夥人，公司承諾向基金出資$
截至 2024年9月30日， 公司承諾的部分基金已經被撥出或是可撥出的
截至 九月30, 2024, $
13. 股權報酬
公司保持 2021 股權激勵計劃（"2021計劃）。截至 2024年9月30日,
對於 三 月結束 2024年9月30日 及 2023, 總股票補償費用爲 $
股票期權
股票期權獎勵的補償成本按照ASC進行覈算。 718. 股票期權將在一定的年限內解鎖。 年服務期內到期並在授予日的週年紀念日到期。
在 2024年3月5日， 該公司授予
| 3月5日 | ||||
| 2024 | ||||
| 預期壽命（年） | ||||
| 預期的波動率 | % | |||
| 無風險利率 | % | |||
| 股息收益率 | ||||
爲了估計股票期權的預期壽命，公司考慮了歸屬期限、合同到期時間和市場情況。預期波動性基於一組同行實體的歷史波動性。股息收益率基於歷史股息收益率。無風險利率基於目前可用的美國國債隱含收益率。 零 coupon發行的剩餘期限等於預期壽命。基於這些輸入，授予日期的公允價值被確定爲$
截至 2024年9月30日，有$元。
截至 2024年9月30日公司分別擁有未行使的權證作爲負債。
限制性股票單位
根據 2021 計劃，我們已發行只附帶持續僱傭控件的限制性股票單位獎勵（阿尼爾·謝蒂）以及附帶持續僱傭控件且還需公司滿足特定績效目標的限制性股票單位獎勵（PSUs）以及共同的（限制性股票單位(RSUs)）。這兩種類型的限制性股票單位獎勵都會逐步解鎖 -自授予日期起的年度期間。
公司盈利權益RSU
公司Earn-Out RSU的補償成本根據ASC進行會計處理。 718. 爲了捕捉與公司Earn-Out RSU相關的市場條件，公司採用了一種蒙特卡羅模擬的方法，該方法涉及隨機迭代，根據適當的概率分佈，採用不同的未來價格路徑進行Sponsor Earn-Out RSU合同期的模擬。公允價值是通過取每個蒙特卡羅模擬試驗下的公允價值的平均值來確定的。在這種方法下，公司的Earn-Out RSU的授予日期公允價值爲 2021年7月1日， 的公允價值確定爲$
14. Financial Instruments
Fair value is defined by ASC 820, Fair Value Measurement (“ASC 820”) as the price that would be received upon selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:
| • | Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. |
| • | Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. |
| • | Level 3 — Unobservable inputs for the asset or liability. |
| September 30, 2024 | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets | ||||||||||||||||
| Cash Equivalents: | ||||||||||||||||
| Certificates of deposit | $ | $ | $ | $ | ||||||||||||
| Money market funds | ||||||||||||||||
| U.S. treasury bills | ||||||||||||||||
| Short term investments: | ||||||||||||||||
| Certificates of deposit | ||||||||||||||||
| Other assets: | ||||||||||||||||
| Certificates of deposit | ||||||||||||||||
| Notes receivables (1) | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
| Liabilities: | ||||||||||||||||
| Earn-out shares liabilities: | ||||||||||||||||
| Earn-out shares (2) | $ | $ | $ | $ | ||||||||||||
| Other non-current liabilities: | ||||||||||||||||
| Warrant liabilities (2) | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
| December 31, 2023 | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets | ||||||||||||||||
| Cash Equivalents: | ||||||||||||||||
| Certificates of deposit (3) | $ | $ | $ | $ | ||||||||||||
| Money market funds | ||||||||||||||||
| U.S. treasury bills | ||||||||||||||||
| Short term investments: | ||||||||||||||||
| Certificates of deposit (3) | ||||||||||||||||
| Other assets: | ||||||||||||||||
| Notes receivables (1) | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
| Liabilities: | ||||||||||||||||
| Earn-out shares liabilities: | ||||||||||||||||
| Earn-out shares (2) | $ | $ | $ | $ | ||||||||||||
| Other non-current liabilities: | ||||||||||||||||
| Warrant liabilities (2) | ||||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||||
(1) During 2023, the Company extended a credit facility to LCP with a total commitment of up to $
(2) Refer to “Note 10 — Earn-Out and Warrant Liabilities” for further details.
(3) The majority of certificates of deposit are foreign deposits.
The following tables summarize the Company’s available-for-sale securities measured at fair value as of September 30, 2024 and December 31, 2023.
| September 30, 2024 | ||||||||||||
| (in thousands) | ||||||||||||
| Amortized Cost | Fair Value | Gross unrealized losses | ||||||||||
| U.S. treasury bills | $ | $ | $ | ( | ) | |||||||
| Total | $ | $ | $ | ( | ) | |||||||
| December 31, 2023 | ||||||||||||
| (in thousands) | ||||||||||||
| Amortized Cost | Fair Value | Gross unrealized gains | ||||||||||
| U.S. treasury bills | $ | $ | $ | |||||||||
| Total | $ | $ | $ | |||||||||
The contractual maturity of the available-for-sale securities held as of September 30, 2024 and December 31, 2023 was within one year.
The following table presents the reconciliation in Level 3 instruments which consisted of earn-out shares liabilities which were measured on a recurring basis.
| Nine Months Ended September 30, | ||||
| 2024 | ||||
| (in thousands) | ||||
| Opening balance | $ | |||
| Total gains or losses from the period | ||||
| Included in other expense, net | ||||
| Reclass from Earnout-RSU | ||||
| Closing balance | $ | |||
15. Segment Information
The Company operates in segment. Its products and services are sold throughout the world, through direct and indirect sales channels. The Company’s chief operating decision maker (the “CODM”) is the Chief Executive Officer. The CODM makes operating performance assessment and resource allocation decisions on a global basis. The CODM does not receive discrete financial information about asset allocation or profitability by product or geography.
Revenue by geography is based upon the billing address of the customer. All transfers between geographic regions have been eliminated from consolidated revenue. The following table sets forth revenue by geographic area:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Revenue: | ||||||||||||||||
| North America | $ | $ | $ | $ | ||||||||||||
| EMEA | ||||||||||||||||
| APAC | ||||||||||||||||
| Total revenue | $ | $ | $ | $ | ||||||||||||
The following table sets forth revenue generated by countries which represent more than 10% of total consolidated revenue:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Revenue: | ||||||||||||||||
| United States | $ | $ | $ | $ | ||||||||||||
| Singapore | ||||||||||||||||
| Germany | ||||||||||||||||
16. Other expense, net
Other expense, net is disaggregated as follows:
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| (in thousands) |
||||||||||||||||
| Change in value of earn-out and warrant liabilities |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
| Interest income, net |
||||||||||||||||
| Profits on securities (1) |
||||||||||||||||
| Foreign currency exchange gain (loss), net |
( |
) | ( |
) | ( |
) | ||||||||||
| Other, net |
( |
) | ( |
) | ( |
) | ||||||||||
| Other expense, net |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
(1) Profits on securities consist of interest income from amortization of the discount arising at acquisition of U.S. treasury bills.
17. Net Income (Loss) Per Share
Basic net income (loss) per share is computed by dividing total net income (loss) by the weighted average common shares outstanding for the period. In computing diluted net income (loss) per share, the Company adjusts the denominator, subject to anti-dilution requirements, to include the dilution from potential shares of common stock resulting from outstanding share-based payment awards, warrants and Company Earn-Outs. The Company’s Sponsor Earn-Out Shares described in “Note 11 — Mezzanine Equity and Stockholders’ Equity” are considered participating securities and have no contractual obligation to shares in the loss of the Company. As such, the weighted-average impact of these shares is excluded from the calculation of loss per share below.
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| Net income (loss) per share available to common shareholders, excluding sponsor earn-out shareholders | ||||||||||||||||
| Numerator: | ||||||||||||||||
| Net income (loss) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
| Net income attributable to Sponsor Earn-out Shares | ( | ) | ||||||||||||||
| Net (income) loss attributable to noncontrolling interest | ( | ) | ( | ) | ||||||||||||
| Total net income (loss) available to common shareholders | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
| Denominator: | ||||||||||||||||
| Weighted average common shares outstanding | ||||||||||||||||
| Effect of dilutive securities | ||||||||||||||||
| Stock options | ||||||||||||||||
| RSUs | ||||||||||||||||
| Weighted average diluted shares | ||||||||||||||||
| Basic net income (loss) per share available to common shareholders, excluding sponsor earn-out shareholders | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
| Diluted net income (loss) per share available to common shareholders, excluding sponsor earn-out shareholders | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
To arrive at net income (loss) available to common stockholders, the Company deducted net income attributable to Sponsor Earn-out Shares and net (income) loss attributable to noncontrolling interest.
The below table includes the total potentially dilutive securities for the three and nine months ending September 30, 2024 and the three and nine months ending September 30, 2023 which have been excluded from the computation of diluted net income (loss) per share as their effect is anti-dilutive:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (in thousands) | ||||||||||||||||
| Stock options | 12 | 27,982 | 25,195 | 27,982 | ||||||||||||
| RSUs | 1 | 11,533 | 10,534 | 11,533 | ||||||||||||
| Warrants | 16,308 | 17,905 | 16,308 | 17,905 | ||||||||||||
| Company Earn-Outs | 3,000 | 3,000 | 3,000 | 3,000 | ||||||||||||
| Total potentially dilutive securities | 19,321 | 60,420 | 55,037 | 60,420 | ||||||||||||
18. Subsequent Events
No material subsequent events occurred since the date of the most recent balance sheet period reported.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (Part I, Item 2 of this Quarterly Report) (“MD&A”) summarizes (and is intended to help the reader understand) the significant factors affecting the consolidated operating results, financial condition, liquidity and cash flows of our Company as of and for the periods presented below. The MD&A should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2023 (our “Annual Report”) and our condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report.
Third Quarter 2024 Business Highlights
| ▪ |
Total annual recurring revenue (“ARR”) increased 23% year-over-year to $308.9 million as of September 30, 2024; |
|
| ▪ |
Total revenue increased 22% year-over-year to $88.8 million for the three months ended September 30, 2024; | |
| ▪ | SaaS revenue increased 45% year-over-year to $60.9 million for the three months ended September 30, 2024; and | |
| ▪ | Announced the general availability of AvePoint Cloud Backup Express, designed to use Microsoft 365 Backup Storage for rapid and more efficient data protection. |
Overview
AvePoint provides a cloud-native data management software platform that organizations rely on to manage and protect critical data, optimize IT operations, achieve meaningful cost savings, and efficiently secure the digital workplace. Companies around the world have adopted a hybrid work model, and they are now tasked with delivering a seamless and secure workplace experience for knowledge workers, centered around an extensive portfolio of Software-as-a-Service (“SaaS”) solutions and productivity applications.
The adoption of a portfolio of solutions is a substantial and ongoing challenge for most organizations, which for decades had used only a small number of multi-purpose on-premises applications to drive business outcomes. However, to deliver an efficient digital workplace today, companies must manage this range of applications – and the associated explosive growth and sprawl of critical data – with a platform offering that is well governed, fit for purpose, easy to use and built on automation.
In addition, many organizations are beginning to realize the potential of generative artificial intelligence (“AI”) to drive competitive advantage and value creation, including (1) extracting greater value from complex datasets, (2) making more informed business decisions, (3) reducing employee workloads, and (4) improving the overall customer experience. While these data-driven improvements are expected to lead to stronger revenue growth and operational efficiency, successfully leveraging this new technology is in turn dependent on first addressing data management challenges that all organizations face. Specifically, for AI-driven projects to succeed, companies must apply robust strategies across the data estate to manage the information lifecycle, properly govern and secure their data, and ensure its compliance. These are the core business problems that AvePoint has been solving for more than two decades, and why we believe AvePoint is well positioned to be a key enabler of generative AI adoption within enterprises in the coming years.
AvePoint’s Confidence Platform empowers organizations – of all sizes, in all regions, and across all industries – to optimize and secure the solutions that most commonly establish and underpin the digital workplace. As our customers seek to rapidly reduce costs, improve productivity and make more informed business decisions, they depend on our platform for data-driven insights, critical business intelligence and ongoing operational value through automation.
Key Business Metric
| September 30, |
||||||||
| 2024 |
2023 |
|||||||
| Total ARR ($ in mil) |
$ | 308.9 | $ | 250.6 | ||||
| Annual Recurring Revenue |
We believe ARR further enables measurement of our business performance, is an important metric for financial forecasting and better enables us to make strategic decisions on the business. We calculate ARR as the annualized sum of contractually obligated Annual Contract Value (“ACV”) from SaaS, term license and support, and maintenance revenue sources from all active customers at the end of a reporting period.
As of September 30, 2024 and September 30, 2023, total ARR was $308.9 million and $250.6 million, respectively, representing growth of 23%.
Growth in ARR is driven by both new business and the expansion of existing business. ARR should be viewed independently of revenue and deferred revenue and is not intended to be combined with or replace these items. ARR is not a forecast of future revenue, and the active contracts used in calculating ARR may or may not be extended or renewed by our customers. |
Components of Results of Operations
| Revenue |
We generate revenue from four primary sources: SaaS, term license and support, services, and maintenance.
SaaS revenues are generated from our cloud-based solutions. Term license and support revenues are generated from the sales of on-premise or hybrid licenses, which include a distinct support component. Both SaaS and term license and support revenues are primarily billed annually. SaaS and term license and support are generally sold per user license or based upon the amount of data protected. SaaS revenue is recognized ratably over the term of the contract. For term license and support revenues, the license component is generally recognized upfront at the point in time when the software is made available to the customer to download and use, and the support component is recognized ratably over the term of the contract.
Services revenue includes revenue generated from implementation, training, consulting, license customization and managed services. These revenues are recognized by applying a measure of progress, such as labor hours, to determine the percentage of completion of each contract. These offerings are not inherently recurring in nature and as such are subject to more period-to-period volatility than other elements of our business. Services revenue from managed services are recognized ratably or on a straight-line basis over the contract term.
Maintenance revenue is a result of selling on-going support for legacy perpetual licenses. It also includes recurring professional services such as technical account management. Maintenance revenue is recognized ratably over the term of the maintenance agreement, which is typically one year. |
|
| Cost of Revenue |
Cost of SaaS and cost of term license and support consists of all direct costs to deliver and support our SaaS and term license and support products, including salaries, benefits, stock-based compensation and related expenses, overhead, third-party hosting fees related to our cloud services, depreciation and amortization. We recognize these expenses as they are incurred. We expect that these costs will increase in absolute dollars but may fluctuate as a percentage of SaaS and term license and support revenue from period to period.
Cost of maintenance consists of all direct costs to support our legacy perpetual license products, including salaries, benefits, stock-based compensation and related expenses, overhead, depreciation and amortization. We recognize these expenses as they are incurred. We expect that cost of maintenance revenue will decrease in absolute dollars as maintenance revenue declines but may fluctuate as a percentage of maintenance revenue.
Cost of services consists of salaries, benefits, stock-based compensation and related expenses for our services organization, overhead, IT necessary to provide services for our customers, depreciation and amortization. We recognize these expenses as they are incurred. |
|
| Gross Profit and Gross Margin |
Gross profit is revenue less cost of revenue, and gross margin is gross profit as a percentage of revenue.
Gross profit has been and will continue to be affected by various factors, including the mix of our revenue, the costs associated with third-party cloud-based hosting services for our cloud-based subscriptions, and the extent to which we expand our customer support and services organizations. We expect that our gross margin will fluctuate from period to period depending on the interplay of these various factors but should increase in the long term as SaaS revenue continues to increase as a percentage of total revenue. |
|
| Sales and Marketing |
Sales and marketing expenses consist primarily of personnel-related expenses for sales, marketing and customer success personnel, stock-based compensation expense, sales commissions, marketing programs, travel-related expenses, overhead costs, depreciation and amortization. We focus our sales and marketing efforts on creating sales leads and establishing and promoting our brand. Incremental sales commissions for new customer contracts are deferred and amortized ratably over the estimated period of our relationship with such customers. We plan to continue our investment in sales and marketing by hiring additional sales and marketing personnel, executing our go-to-market strategy globally, and building our brand awareness. |
| General and Administrative |
General and administrative expenses consist primarily of personnel-related expenses for finance, legal and compliance, human resources, and IT personnel, as well as stock-based compensation expense, external professional services, overhead costs, other administrative functions, depreciation and amortization. Our general and administrative expenses have increased as a result of operating as a public company, including costs to comply with the rules and regulations applicable to companies listed on a national securities exchange, costs related to compliance and reporting obligations pursuant to the rules and regulations of the SEC, and increased expenses for insurance, investor relations, and professional services. |
|
| Research and Development |
Research and development expenses consist primarily of personnel-related expenses incurred for our engineering and product and design teams, as well as stock-based compensation expense, overhead costs, depreciation and amortization. We have a geographically dispersed research and development presence in the United States, China, Singapore and Vietnam. We believe this provides a strategic advantage, allowing us to invest efficiently in both new product development and increasing our existing product capabilities. We believe delivering expanding product functionality is critical to enhancing the success of existing customers while new product development further reinforces our breadth of software solutions. |
|
| Other Expense, net |
Other Expense, net consists primarily of fair value adjustments on earn-out and warrant liabilities, realized gain/loss for securities, and of foreign currency remeasurement gains/losses. |
|
| Income Taxes |
We are subject to income taxes in the U.S. (federal and state) and numerous foreign jurisdictions. Tax laws, regulations, administrative practices, principles, and interpretations in various jurisdictions may be subject to significant change, with or without notice, due to economic, political, and other conditions. The foreign jurisdictions in which we operate have different statutory tax rates than those of the United States. Accordingly, our effective tax rate could be affected by the relative proportion of foreign to domestic income, use of foreign tax credits, changes in the valuation of our deferred tax assets and liabilities, applicability of any valuation allowances, and changes in tax laws in jurisdictions in which we operate. |
Results of Operations
The below period-to-period comparisons of operating results are not necessarily indicative of results for future periods.
Comparison of Three Months Ended September 30, 2024 and September 30, 2023
Revenue
The components of AvePoint’s revenue during the three months ended September 30, 2024 and 2023 were as follows:
| Three Months Ended |
||||||||||||||||
| September 30, |
Change |
|||||||||||||||
| 2024 |
2023 |
Amount |
% |
|||||||||||||
| (in thousands, except percentages) |
||||||||||||||||
| Revenue: |
||||||||||||||||
| SaaS |
$ | 60,866 | $ | 41,910 | $ | 18,956 | 45.2 | % | ||||||||
| Term license and support |
14,140 | 16,293 | (2,153 | ) | (13.2 | )% | ||||||||||
| Services |
10,810 | 11,194 | (384 | ) | (3.4 | )% | ||||||||||
| Maintenance |
2,988 | 3,363 | (375 | ) | (11.2 | )% | ||||||||||
| Total revenue |
$ | 88,804 | $ | 72,760 | $ | 16,044 | 22.1 | % | ||||||||
Total revenue increased 22.1% to $88.8 million for the three months ended September 30, 2024, due to an increase in SaaS revenue, which increased 45.2% to $60.9 million, and represented 69% of total revenue, up from 58% of total revenue in the prior year. The increase in SaaS revenue, which was driven by strong customer demand for our SaaS solutions, was partially offset by an expected decrease in both term license and support and maintenance revenue.
Services revenue is expected to fluctuate as the services generally are not recurring in nature. Additionally, maintenance revenue is expected to continue declining as we have shifted away from the sale of perpetual licenses and towards SaaS and term licenses. Without perpetual license sales, there will be limited opportunities to sell maintenance contracts to new customers. Existing customers have and will continue to transition to SaaS and term licenses, which will continue the decline in maintenance revenue.
Revenue by geographic region for the three months ended September 30, 2024 and 2023 was as follows:
| Three Months Ended |
||||||||||||||||
| September 30, |
Change |
|||||||||||||||
| 2024 |
2023 |
Amount |
% |
|||||||||||||
| (in thousands, except percentages) |
||||||||||||||||
| North America |
$ | 37,648 | $ | 31,751 | $ | 5,897 | 18.6 | % | ||||||||
| EMEA |
26,298 | 21,739 | 4,559 | 21.0 | % | |||||||||||
| APAC |
24,858 | 19,270 | 5,588 | 29.0 | % | |||||||||||
| Total |
$ | 88,804 | $ | 72,760 | $ | 16,044 | 22.1 | % | ||||||||
For the three months ended September 30, 2024, North America revenue increased 18.6% to $37.6 million, driven by a 46.2%, or $8.3 million, increase in SaaS revenue, partially offset by a combined $2.4 million decrease in term license and support, services, and maintenance revenues. EMEA revenues increased 21.0% to $26.3 million, driven by a 41.5%, or $6.5 million, increase in SaaS revenue, partially offset by a combined $1.9 million decrease in term license and support, services and maintenance revenues. APAC revenues increased 29.0% to $24.9 million, driven by a 50.4%, or $4.1 million, increase in SaaS revenue, a 10.3%, or $0.8 million, increase in services revenue, a 22.7%, or $0.4 million, increase in term license and support revenue, and a 16.0%, or $0.2 million, increase in maintenance revenue.
Cost of Revenue, Gross Profit, and Gross Margin
Cost of revenue, gross profit, and gross margin during the three months ended September 30, 2024 and 2023 were as follows:
| Three Months Ended |
||||||||||||||||
| September 30, |
Change |
|||||||||||||||
| 2024 |
2023 |
Amount |
% |
|||||||||||||
| (in thousands, except percentages) |
||||||||||||||||
| Cost of revenue: |
||||||||||||||||
| SaaS |
$ | 10,624 | $ | 9,561 | $ | 1,063 | 11.1 | % | ||||||||
| Term license and support |
373 | 484 | (111 | ) | (22.9 | )% | ||||||||||
| Services |
10,057 | 9,922 | 135 | 1.4 | % | |||||||||||
| Maintenance |
167 | 189 | (22 | ) | (11.6 | )% | ||||||||||
| Total cost of revenue |
$ | 21,221 | $ | 20,156 | $ | 1,065 | 5.3 | % | ||||||||
| Gross profit |
67,583 | 52,604 | 14,979 | 28.5 | % | |||||||||||
| Gross margin |
76.1 | % | 72.3 | % | — | — | ||||||||||
| GAAP cost of revenue |
$ | 21,221 | $ | 20,156 | $ | 1,065 | 5.3 | % | ||||||||
| Stock-based compensation expense |
(530 | ) | (806 | ) | 276 | (34.2 | )% | |||||||||
| Amortization of acquired intangible assets |
(242 | ) | (241 | ) | (1 | ) | 0.4 | % | ||||||||
| Non-GAAP cost of revenue |
$ | 20,449 | $ | 19,109 | $ | 1,340 | 7.0 | % | ||||||||
| Non-GAAP gross profit |
68,355 | 53,651 | 14,704 | 27.4 | % | |||||||||||
| Non-GAAP gross margin |
77.0 | % | 73.7 | % | — | — | ||||||||||
Cost of revenue increased 5.3% to $21.2 million for the three months ended September 30, 2024, primarily driven by a $0.6 million increase in personnel costs and a $0.4 million increase from higher aggregate hosting costs resulting from increased SaaS revenue.
Operating Expenses
Sales and Marketing
Sales and marketing expenses during the three months ended September 30, 2024 and 2023 were as follows:
| Three Months Ended |
||||||||||||||||
| September 30, |
Change |
|||||||||||||||
| 2024 |
2023 |
Amount |
% |
|||||||||||||
| (in thousands, except percentages) |
||||||||||||||||
| Sales and marketing |
$ | 30,050 | $ | 28,436 | $ | 1,614 | 5.7 | % | ||||||||
| Percentage of revenue |
33.8 | % | 39.1 | % | — | — | ||||||||||
| GAAP sales and marketing |
$ | 30,050 | $ | 28,436 | $ | 1,614 | 5.7 | % | ||||||||
| Stock-based compensation expense |
(2,186 | ) | (2,358 | ) | 172 | (7.3 | )% | |||||||||
| Amortization of acquired intangible assets |
(120 | ) | (112 | ) | (8 | ) | 7.1 | % | ||||||||
| Non-GAAP sales and marketing |
$ | 27,744 | $ | 25,966 | $ | 1,778 | 6.8 | % | ||||||||
| Non-GAAP percentage of revenue |
31.2 | % | 35.7 | % | — | — | ||||||||||
Sales and marketing expenses increased 5.7% to $30.1 million for the three months ended September 30, 2024, primarily driven by a $1.2 million increase in personnel costs, which included additional headcount and other investments in the business to respond to strong customer demand for our solutions and provide support for future growth.
General and Administrative
General and administrative expenses during the three months ended September 30, 2024 and 2023 were as follows:
| Three Months Ended |
||||||||||||||||
| September 30, |
Change |
|||||||||||||||
| 2024 |
2023 |
Amount |
% |
|||||||||||||
| (in thousands, except percentages) |
||||||||||||||||
| General and administrative |
$ | 17,043 | $ | 15,838 | $ | 1,205 | 7.6 | % | ||||||||
| Percentage of revenue |
19.2 | % | 21.8 | % | — | — | ||||||||||
| GAAP general and administrative |
$ | 17,043 | $ | 15,838 | $ | 1,205 | 7.6 | % | ||||||||
| Stock-based compensation expense |
(4,925 | ) | (5,264 | ) | 339 | (6.4 | )% | |||||||||
| Non-GAAP general and administrative |
$ | 12,118 | $ | 10,574 | $ | 1,544 | 14.6 | % | ||||||||
| Non-GAAP percentage of revenue |
13.6 | % | 14.5 | % | — | — | ||||||||||
General and administrative expenses increased 7.6% to $17.0 million for the three months ended September 30, 2024. The increase was primarily driven by $0.5 million in new fees related to the Company’s investment in a growth equity fund, a $0.5 million increase in salary and benefits, and a $0.2 million increase in software license expense due to increased headcount, partially offset by a $0.3 million decrease in stock-based compensation.
Research and Development
Research and development expenses during the three months ended September 30, 2024 and 2023 were as follows:
| Three Months Ended |
||||||||||||||||
| September 30, |
Change |
|||||||||||||||
| 2024 |
2023 |
Amount |
% |
|||||||||||||
| (in thousands, except percentages) |
||||||||||||||||
| Research and development |
$ | 12,838 | $ | 8,643 | $ | 4,195 | 48.5 | % | ||||||||
| Percentage of revenue |
14.5 | % | 11.9 | % | — | — | ||||||||||
| GAAP research and development |
$ | 12,838 | $ | 8,643 | $ | 4,195 | 48.5 | % | ||||||||
| Stock-based compensation expense |
(2,170 | ) | (857 | ) | (1,313 | ) | 153.2 | % | ||||||||
| Non-GAAP research and development |
$ | 10,668 | $ | 7,786 | $ | 2,882 | 37.0 | % | ||||||||
| Non-GAAP percentage of revenue |
12.0 | % | 10.7 | % | — | — | ||||||||||
Income Tax Provision
Income tax expense during the three months ended September 30, 2024 and 2023 was as follows:
| Three Months Ended |
||||||||||||||||
| September 30, |
Change |
|||||||||||||||
| 2024 |
2023 |
Amount |
% |
|||||||||||||
| (in thousands, except percentages) |
||||||||||||||||
| Income tax expense |
$ | 183 | $ | 2,841 | $ | (2,658 | ) | (93.6 | )% | |||||||
AvePoint’s income tax expense for the three months ended September 30, 2024 was $0.2 million, as compared to a tax expense of $2.8 million for the three months ended September 30, 2023. The effective tax rate was 5.9% for the three months ended September 30, 2024, compared to (204.5)% for the three months ended September 30, 2023. The change in effective tax rates was primarily due to the mix of pre-tax income (loss) results by jurisdictions taxed at different rates, certain jurisdictions with separate tax expense calculated, impact of foreign inclusions, stock-based compensation, and changes in valuation allowance.
In assessing the need for a valuation allowance, the Company has considered all available positive and negative evidence including its historical levels of income, expectations of future taxable income, future reversals of existing taxable temporary differences and ongoing tax planning strategies. If in the future, the Company determines it is more likely than not that deferred tax assets will not be realized, the Company may set up a valuation allowance, which may result in income tax expense in the Company’s condensed consolidated statements of income and condensed consolidated statements of comprehensive income (loss).
Comparison of Nine Months Ended September 30, 2024 and September 30, 2023
Revenue
The components of AvePoint’s revenue during the nine months ended September 30, 2024 and 2023 were as follows:
| Nine Months Ended |
||||||||||||||||
| September 30, |
Change |
|||||||||||||||
| 2024 |
2023 |
Amount |
% |
|||||||||||||
| (in thousands, except percentages) |
||||||||||||||||
| Revenue: |
||||||||||||||||
| SaaS |
$ | 165,820 | $ | 115,701 | $ | 50,119 | 43.3 | % | ||||||||
| Term license and support |
35,128 | 40,474 | (5,346 | ) | (13.2 | )% | ||||||||||
| Services |
31,808 | 31,007 | 801 | 2.6 | % | |||||||||||
| Maintenance |
8,543 | 10,019 | (1,476 | ) | (14.7 | )% | ||||||||||
| Total revenue |
$ | 241,299 | $ | 197,201 | $ | 44,098 | 22.4 | % | ||||||||
Total revenue increased 22.4% to $241.3 million for the nine months ended September 30, 2024, primarily as a result of an increase in SaaS revenue, which increased 43.3% to $165.8 million, and represented 69% of total revenue, up from 59% of total revenue in the prior year. The increase in revenue, which was driven by strong customer demand for our SaaS products, was partially offset by an expected decrease in both term license and support and maintenance revenue.
Services revenue is expected to fluctuate as the services generally are not recurring in nature. Additionally, maintenance revenue is expected to continue declining as we have shifted away from the sale of perpetual licenses and towards SaaS and term licenses. Without perpetual license sales, there will be limited opportunities to sell maintenance contracts to new customers. Existing customers have and will continue to transition to SaaS and term licenses, which will continue the decline in maintenance revenue.
Revenue by geographic region for the nine months ended September 30, 2024 and 2023 was as follows:
| Nine Months Ended |
||||||||||||||||
| September 30, |
Change |
|||||||||||||||
| 2024 |
2023 |
Amount |
% |
|||||||||||||
| (in thousands, except percentages) |
||||||||||||||||
| North America |
$ | 99,240 | $ | 84,484 | $ | 14,756 | 17.5 | % | ||||||||
| EMEA |
72,193 | 60,800 | 11,393 | 18.7 | % | |||||||||||
| APAC |
69,866 | 51,917 | 17,949 | 34.6 | % | |||||||||||
| Total |
$ | 241,299 | $ | 197,201 | $ | 44,098 | 22.4 | % | ||||||||
For the nine months ended September 30, 2024, North America revenue increased 17.5% to $99.2 million, driven by a 42.7%, or $21.8 million, increase in SaaS revenue, partially offset by a combined $7.1 million decrease in term license and support, services, and maintenance revenues. EMEA revenues increased 18.7% to $72.2 million, driven by a 41.0%, or $17.5 million, increase in SaaS revenue, partially offset by a combined $6.1 million decrease in term license and support, services and maintenance revenues. APAC revenues increased 34.6% to $69.9 million, primarily driven by a 49.1%, or $10.9 million, increase in SaaS revenue, a 25.7%, or $5.2 million, increase in services revenue, and a 34.6%, or $1.8 million, increase in term license and support revenue.
Cost of Revenue, Gross Profit, and Gross Margin
Cost of revenue, gross profit, and gross margin during the nine months ended September 30, 2024 and 2023 were as follows:
| Nine Months Ended |
||||||||||||||||
| September 30, |
Change |
|||||||||||||||
| 2024 |
2023 |
Amount |
% |
|||||||||||||
| (in thousands, except percentages) |
||||||||||||||||
| Cost of revenue: |
||||||||||||||||
| SaaS |
$ | 30,139 | $ | 26,586 | $ | 3,553 | 13.4 | % | ||||||||
| Term license and support |
1,202 | 1,441 | (239 | ) | (16.6 | )% | ||||||||||
| Services |
28,777 | 29,231 | (454 | ) | (1.6 | )% | ||||||||||
| Maintenance |
487 | 584 | (97 | ) | (16.6 | )% | ||||||||||
| Total cost of revenue |
$ | 60,605 | $ | 57,842 | $ | 2,763 | 4.8 | % | ||||||||
| Gross profit |
180,694 | 139,359 | 41,335 | 29.7 | % | |||||||||||
| Gross margin |
74.9 | % | 70.7 | % | — | — | ||||||||||
| GAAP cost of revenue |
$ | 60,605 | $ | 57,842 | $ | 2,763 | 4.8 | % | ||||||||
| Stock-based compensation expense |
(1,516 | ) | (2,292 | ) | 776 | (33.9 | )% | |||||||||
| Amortization of acquired intangible assets |
(722 | ) | (725 | ) | 3 | (0.4 | )% | |||||||||
| Non-GAAP cost of revenue |
$ | 58,367 | $ | 54,825 | $ | 3,542 | 6.5 | % | ||||||||
| Non-GAAP gross profit |
182,932 | 142,376 | 40,556 | 28.5 | % | |||||||||||
| Non-GAAP gross margin |
75.8 | % | 72.2 | % | — | — | ||||||||||
Cost of revenue increased 4.8% to $60.6 million for the nine months ended September 30, 2024, primarily driven by a $1.7 million increase in personnel costs and a $1.4 million increase from higher aggregate hosting costs resulting from increased SaaS revenue.
Operating Expenses
Sales and Marketing
Sales and marketing expenses during the nine months ended September 30, 2024 and 2023 were as follows:
| Nine Months Ended |
||||||||||||||||
| September 30, |
Change |
|||||||||||||||
| 2024 |
2023 |
Amount |
% |
|||||||||||||
| (in thousands, except percentages) |
||||||||||||||||
| Sales and marketing |
$ | 90,459 | $ | 82,978 | $ | 7,481 | 9.0 | % | ||||||||
| Percentage of revenue |
37.5 | % | 42.1 | % | — | — | ||||||||||
| GAAP sales and marketing |
$ | 90,459 | $ | 82,978 | $ | 7,481 | 9.0 | % | ||||||||
| Stock-based compensation expense |
(6,684 | ) | (7,267 | ) | 583 | (8.0 | )% | |||||||||
| Amortization of acquired intangible assets |
(342 | ) | (381 | ) | 39 | (10.2 | )% | |||||||||
| Non-GAAP sales and marketing |
$ | 83,433 | $ | 75,330 | $ | 8,103 | 10.8 | % | ||||||||
| Non-GAAP percentage of revenue |
34.6 | % | 38.2 | % | — | — | ||||||||||
Sales and marketing expenses increased 9.0% to $90.5 million for the nine months ended September 30, 2024, primarily driven by a $6.6 million increase in personnel costs, which included additional headcount and other investments in the business to respond to strong customer demand for our solutions and provide support for future growth.
General and Administrative
General and administrative expenses during the nine months ended September 30, 2024 and 2023 were as follows:
| Nine Months Ended |
||||||||||||||||
| September 30, |
Change |
|||||||||||||||
| 2024 |
2023 |
Amount |
% |
|||||||||||||
| (in thousands, except percentages) |
||||||||||||||||
| General and administrative |
$ | 52,095 | $ | 45,679 | $ | 6,416 | 14.0 | % | ||||||||
| Percentage of revenue |
21.6 | % | 23.2 | % | — | — | ||||||||||
| GAAP general and administrative |
$ | 52,095 | $ | 45,679 | $ | 6,416 | 14.0 | % | ||||||||
| Stock-based compensation expense |
(15,451 | ) | (14,551 | ) | (900 | ) | 6.2 | % | ||||||||
| Non-GAAP general and administrative |
$ | 36,644 | $ | 31,128 | $ | 5,516 | 17.7 | % | ||||||||
| Non-GAAP percentage of revenue |
15.2 | % | 15.8 | % | — | — | ||||||||||
General and administrative expenses increased 14.0% to $52.1 million for the nine months ended September 30, 2024. The increase was primarily driven by a $2.9 million increase in personnel costs, $1.9 million in new fees related to the Company’s investment in a growth equity fund, a $0.8 million increase in software license expense due to increased headcount, and a $0.6 million increase in professional services expense.
Research and Development
Research and development expenses during the nine months ended September 30, 2024 and 2023 were as follows:
| Nine Months Ended |
||||||||||||||||
| September 30, |
Change |
|||||||||||||||
| 2024 |
2023 |
Amount |
% |
|||||||||||||
| (in thousands, except percentages) |
||||||||||||||||
| Research and development |
$ | 35,827 | $ | 26,931 | $ | 8,896 | 33.0 | % | ||||||||
| Percentage of revenue |
14.8 | % | 13.7 | % | — | — | ||||||||||
| GAAP research and development |
$ | 35,827 | $ | 26,931 | $ | 8,896 | 33.0 | % | ||||||||
| Stock-based compensation expense |
(6,156 | ) | (2,865 | ) | (3,291 | ) | 114.9 | % | ||||||||
| Non-GAAP research and development |
$ | 29,671 | $ | 24,066 | $ | 5,605 | 23.3 | % | ||||||||
| Non-GAAP percentage of revenue |
12.3 | % | 12.2 | % | — | — | ||||||||||
Income Tax Provision
Income tax expense during the nine months ended September 30, 2024 and 2023 was as follows:
| Nine Months Ended |
||||||||||||||||
| September 30, |
Change |
|||||||||||||||
| 2024 |
2023 |
Amount |
% |
|||||||||||||
| (in thousands, except percentages) |
||||||||||||||||
| Income tax expense |
$ | 6,170 | $ | 8,132 | $ | (1,962 | ) | (24.1 | )% | |||||||
AvePoint’s income tax expense for the nine months ended September 30, 2024 was $6.2 million, as compared to a tax expense of $8.1 million for the nine months ended September 30, 2023. The effective tax rate was (106.5)% for the nine months ended September 30, 2024, compared to (45.7)% for the nine months ended September 30, 2023. The change in effective tax rates was primarily due to the mix of pre-tax income (loss) results by jurisdictions taxed at different rates, certain jurisdictions with separate tax expense calculated, impact of foreign inclusions, stock-based compensation, and changes in valuation allowance.
In assessing the need for a valuation allowance, the Company has considered all available positive and negative evidence including its historical levels of income, expectations of future taxable income, future reversals of existing taxable temporary differences and ongoing tax planning strategies. If in the future, the Company determines it is more likely than not that deferred tax assets will not be realized, the Company may set up a valuation allowance, which may result in income tax expense in the Company’s condensed consolidated statements of income and condensed consolidated statements of comprehensive income (loss).
Certain Non-GAAP Financial Measures
We believe that, in addition to our financial results determined in accordance with GAAP, non-GAAP operating income (loss) and non-GAAP operating margin are useful in evaluating our business, results of operations, and financial condition.
Non-GAAP Operating Income and Non-GAAP Operating Margin
Non-GAAP operating income and non-GAAP operating margin are non-GAAP financial measures that our management uses to assess our overall performance. We define non-GAAP operating income as GAAP operating income (loss) plus stock-based compensation and the amortization of acquired intangible assets. We define non-GAAP operating margin as non-GAAP operating income divided by revenue. We believe non-GAAP operating income and non-GAAP operating margin provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations, as these metrics eliminate the effects of stock-based compensation which has had historical volatility from period to period due to marked-to-market securities, and of acquired intangible assets, which are unrelated to current operations and are neither comparable to the prior period nor predictive of future results. We believe the elimination of the effect of variability caused by stock-based compensation expense and the amortization of acquired assets, both of which are non-cash expenses, provides a better representation as to the overall operating performance of the Company. We use non-GAAP financial measures (a) to evaluate our historical and prospective financial performance and trends as well as our performance relative to our peers, (b) to set and approve spending budgets, (c) to allocate resources, (d) to measure operational profitability and the accuracy of forecasting, and (e) to assess financial discipline over operational expenditures.
Non-GAAP operating income and non-GAAP operating margin should not be considered as an alternative to operating income, operating margin or any other performance measures derived in accordance with GAAP as measures of performance. Non-GAAP operating income and non-GAAP operating margin should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP.
The following table presents a reconciliation of (i) non-GAAP operating income from the most comparable GAAP measure, operating income, and (ii) non-GAAP operating margin from the most comparable GAAP measure, operating margin, for the periods presented:
| Three Months Ended |
Nine Months Ended |
|||||||||||||||
| September 30, |
September 30, |
|||||||||||||||
| 2024 |
2023 |
2024 |
2023 |
|||||||||||||
| (in thousands, except percentages) |
||||||||||||||||
| GAAP operating income (loss) |
$ | 7,652 | $ | (313 | ) | $ | 2,313 | $ | (16,229 | ) | ||||||
| GAAP operating margin |
8.6 | % | (0.4 | )% | 1.0 | % | (8.2 | )% | ||||||||
| Add: |
||||||||||||||||
| Stock-based compensation |
9,811 | 9,285 | 29,807 | 26,975 | ||||||||||||
| Amortization of acquired intangible assets |
362 | 353 | 1,064 | 1,106 | ||||||||||||
| Non-GAAP operating income |
$ | 17,825 | $ | 9,325 | $ | 33,184 | $ | 11,852 | ||||||||
| Non-GAAP operating margin |
20.1 | % | 12.8 | % | 13.8 | % | 6.0 | % | ||||||||
Liquidity and Capital Resources
As of September 30, 2024, we had $249.8 million in cash and cash equivalents and $0.2 million in short-term investments.
Our short-term liquidity needs primarily include working capital for sales and marketing, research and development, and continued innovation. In addition, we extended a credit facility with a remaining commitment of $2.5 million, and committed $50.0 million to a growth equity fund. We also have letters of credit issued in the amount of $0.8 million as security for operating leases, and $3.7 million as security for customer contingency agreements. Our long-term capital requirements will depend on many factors, including our growth rate, levels of revenue, the expansion of sales and marketing activities, market acceptance of our platform, the results of business initiatives, and the timing of new product introductions.
We currently maintain a loan and security agreement (the “Loan Agreement”), dated as of November 3, 2023, with HSBC Bank USA, National Association, (“HSBC”) as lender, for a revolving line of credit of up to $30.0 million with an accordion feature that provides up to $20.0 million of additional borrowing capacity we may to draw upon at our request. The line currently bears interest at a rate equal to term SOFR plus 3.0% to 3.3% depending on the Consolidated Total Leverage Ratio (as defined in the Loan Agreement). The line carries an unused fee at a rate equal to 0.5%. The line will mature on November 3, 2026. We are required to maintain a minimum Consolidated Fixed Charge Coverage Ratio (as defined in the Loan Agreement) as well as a maximum Consolidated Total Leverage Ratio, tested by HSBC each quarter. We pledged, assigned, and granted HSBC a security interest in all shares of our subsidiaries, future proceeds and assets (except for excluded assets, including material intellectual property) as a security for the performance of the loan and security agreement obligations.
We believe that our existing cash, cash equivalents and short-term investments, our cash flows from operating activities, and our borrowing capacity under our credit facility with HSBC are sufficient to meet our working capital and capital expenditure needs for at least the next twelve months. In the future, we may attempt to raise additional capital through the sale of additional equity or debt financing. The sale of additional equity would be dilutive to our stockholders. Additional debt financing could result in increased debt service obligations and more restrictive financial and operational covenants.
Cash Flows
The following table sets forth a summary of AvePoint’s cash flows for the periods indicated.
| Nine Months Ended |
||||||||
| September 30, |
||||||||
| 2024 |
2023 |
|||||||
| (in thousands) | ||||||||
| Net cash provided by operating activities |
$ | 56,134 | $ | 13,284 | ||||
| Net cash used in investing activities |
(1,369 | ) | (4,224 | ) | ||||
| Net cash used in financing activities |
(28,218 | ) | (29,809 | ) | ||||
Operating Activities
Net cash provided by operating activities for the nine months ended September 30, 2024 was $56.1 million, reflecting AvePoint’s net loss of $12.0 million, adjusted for non-cash items of $51.5 million and net cash inflows of $16.6 million from changes in its operating assets and liabilities. The primary drivers of non-cash items were stock-based compensation which reflects ongoing compensation and an increase in the mark to market value of earn-out and warranty liabilities. The drivers of changes in operating assets and liabilities are seasonal in nature. These drivers are related to a decrease in accounts receivable due primarily to the timing of customer invoices and an increase in prepaid expenses and other current assets primarily related to prepaid software maintenance and subscription, an increase in deferred revenue and an increase in accrued expenses primarily due to income tax payable.
Net cash provided by operating activities for the nine months ended September 30, 2023 was $13.3 million, reflecting AvePoint’s net loss of $25.9 million, adjusted for non-cash items of $43.9 million and net cash outflows of $4.7 million from changes in its operating assets and liabilities. The primary drivers of non-cash items were stock-based compensation which reflects ongoing compensation and an increase in the mark to market value of earn-out and warranty liabilities. The drivers of changes in operating assets and liabilities are seasonal in nature. These drivers are related to a decrease in accounts receivable due primarily to timing of customer invoices and decrease in prepaid expenses and other current assets primarily related to prepaid insurance, an increase in deferred revenue and a decrease in accrued expenses primarily due to accrued bonuses, commissions and VAT/sales tax payable.
Investing Activities
Net cash used in investing activities for the nine months ended September 30, 2024 was $1.4 million. It primarily consisted of $2.3 million of purchases of property and equipment, $1.9 million of purchases of short-term investments, $1.5 million investment in notes, and $0.9 million from the capitalization of internal use software, offset by $5.4 million from the maturity of short-term investments.
Net cash used in investing activities for the nine months ended September 30, 2023 was $4.2 million. It primarily consisted of $2.1 million of purchases of short-term investments, $1.5 million of purchases of property and equipment, and $1.0 million from the capitalization of internal use software, partially offset by $1.3 million from the maturity of short-term investments.
Financing Activities
Net cash used in financing activities for the nine months ended September 30, 2024 was $28.2 million, primarily consisting of $21.7 million in repurchases of common stock under the previously announced Share Repurchase Program that authorizes us to repurchase up to $150 million of our common shares (the “Share Repurchase Program”), $6.1 million in the redemption of the redeemable noncontrolling interest of MaivenPoint, and $4.0 million in the purchase of our public warrants, partially offset by $3.6 million of proceeds from the exercise of stock options.
Net cash used in financing activities for the nine months ended September 30, 2023 was $29.8 million, primarily consisting of $33.6 million in repurchases of common stock under the Share Repurchase Program, partially offset by $3.9 million of proceeds from the exercise of stock options.
Indebtedness
Credit Facility
We maintain a line of credit under Loan Agreement with HSBC, as the lender. See “Note 6 - Line of Credit” in Part I, Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q.
The Loan Agreement provides for a revolving line of credit of up to $30.0 million and an additional $20.0 million accordion feature for additional capital we may draw upon at our request. Borrowings under the line currently bear interest at a rate equal to term SOFR plus 3.0% to 3.3% depending on the Consolidated Total Leverage Ratio (as defined in the Loan Agreement). The line carries an unused fee at a rate equal to 0.5%. Any proceeds of borrowings under the Loan Agreement will be used for general corporate purposes.
On a consolidated basis with our subsidiaries, we are required to maintain a minimum Consolidated Fixed Charge Coverage Ratio as well as a maximum Consolidated Total Leverage Ratio, tested by HSBC each quarter. Pursuant to the Loan Agreement, we pledged, assigned, and granted HSBC a security interest in all shares of our subsidiaries, future proceeds, and certain assets as security for our obligations under the Loan Agreement. Our line of credit under the Loan Agreement will mature on November 3, 2026.
To date, we are in compliance with all covenants under the Loan Agreement. We have not at any time borrowed under the Loan Agreement. The description of the Loan Agreement is qualified in its entirety by the full text of the form of such agreement, a copy of which is referenced as an exhibit to our Annual Report.
Leasing Activities
We are obligated under various non-cancelable operating leases for office space. The initial terms of the leases expire on various dates through 2030. As of September 30, 2024, the commitments related to these operating leases is $16.3 million, of which $6.3 million is due in the next twelve months.
Operating Segment Information
We operate in one segment. Our products and services are sold throughout the world, through direct and indirect sales channels. Our chief operating decision maker (the “CODM”) is our Chief Executive Officer. The CODM makes operating performance assessment and resource allocation decisions on a global basis. The CODM does not receive discrete financial information about asset allocation or profitability by product or geography. See the section titled “Notes to Condensed Consolidated Financial Statements” (Part I, Item 1 of this Quarterly Report) under the sub-heading “Note 15 – Segment Information” for more information.
Critical Accounting Policies and Estimates
Preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. We also make estimates and assumptions on the reported revenue generated and reported expenses incurred during the reporting periods. Our estimates are based on our historical experience and on various other factors that our management believes are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
While our significant accounting policies are described in more detail in the section titled “Notes to Condensed Consolidated Financial Statements” (Part I, Item 1 of this Quarterly Report), we believe the following critical accounting policies and estimates are most important to understanding and evaluating our reported financial results.
Revenue Recognition
We derive revenue from four primary sources: SaaS, term license and support, services, and maintenance. Many of our contracts with customers include multiple performance obligations. Judgement is required in determining whether each performance obligation is distinct. Our products and services generally do not require a significant amount of integration or interdependency; therefore, our products and services are generally not combined. We allocate the transaction price for each contract to each performance obligation based on the relative standalone selling price (“SSP”) for each performance obligation within each contract.
We use judgment in determining the SSP for products and services. For substantially all performance obligations except term licenses, we are able to establish the SSP based on the observable prices of products or services sold separately in comparable circumstances to similar customers. We typically establish an SSP range for our products and services which is reassessed on a periodic basis or when facts and circumstances change. Term licenses are sold only as a bundled arrangement that includes the rights to a term license and support. In determining the SSP of license and support in a term license arrangement, we utilize observable inputs and consider the value relationship between support and term license when compared to the value relationship between support and perpetual licenses, the average economic life of our products, and software renewals rates. Using a combination of the relative fair value method, or the residual value method the SSP of the performance obligations in an arrangement is allocated to each performance obligation within a sales arrangement.
Economic Conditions, Challenges, and Risks
The markets for software and cloud-based services are dynamic and highly competitive. Our competitors are developing new software while also deploying competing cloud-based services for consumers and businesses. Customer preferences evolve rapidly, and choices in hardware, products, and devices can and do influence how users access services in the cloud, and in some cases, the user’s choice of which suite of cloud-based services to use. We must continue to evolve and adapt to keep pace with this changing environment. The investments we are making in infrastructure, research and development, marketing, and geographic expansion will continue to increase our operating costs and may decrease our operating margins.
Our success is highly dependent on our ability to attract and retain qualified employees. We hire a mix of university and industry talent worldwide. We compete for talented individuals globally by offering an exceptional working environment, broad customer reach, scale in resources, the ability to grow one’s career across many different products and businesses, and competitive compensation and benefits.
Additionally, demand for our software and service is correlated to global macroeconomic and geopolitical factors, which remain dynamic and currently include multiple ongoing conflicts where the outcomes and consequences are not possible to predict, but could include regional instability and geopolitical shifts, and could materially adversely affect global trade, currency exchange rates, regional economies and the global economy. These in turn could increase our costs, disrupt our supply chain, reduce our sales and earnings, impair our ability to raise additional capital when needed on acceptable terms, if at all, or otherwise adversely affect our business, financial condition, and results of operations.
Our international operations provide a significant portion of our total revenues and expenses. Many of these revenues and expenses are denominated in currencies other than the U.S. dollar. As a result, changes in foreign exchange rates may significantly affect revenue and expenses. Refer to the section titled “Risk Factors” (Part I, Item 1A of our Annual Report) for a discussion of these factors and other risks.
Seasonality
Our quarterly revenue fluctuates and does not necessarily grow sequentially when measuring any one fiscal quarter’s revenue with another (e.g. comparing the fourth fiscal quarter of fiscal year 2023 with the first fiscal quarter of fiscal year 2024). Historically, our third and fourth quarters have been our highest revenue quarters, however those results are not necessarily indicative of future quarterly revenue or full year results. Higher third and fourth quarter revenue is driven primarily by increased sales resulting from our customers’ fiscal year ends. Additionally, new product and service introductions (including the timing of those introductions) can significantly impact revenue. Revenue can also be affected when customers anticipate a product introduction. Our operating expenses have generally increased sequentially due to increases in personnel in connection with the expansion of our business.
Recently Issued and Adopted Accounting Pronouncements
For information about recent accounting pronouncements, see “Note 2 - Summary of Significant Accounting Policies” in Part I, Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q.
Part I
Item 3
Item 3. Quantitative and Qualitative Disclosures About Market Risks
We are exposed to potential economic risk from interest rates, foreign exchange rates, and our concentration of credit. We continued to evaluate our exposure to market risks during the nine months ended September 30, 2024, and have determined that there have been no material changes to our exposure to market risks from those described in our Annual Report. However, we have provided the following information to supplement or update our disclosures in our Annual Report.
Interest Rate Risk
As of September 30, 2024, we had cash and cash equivalents, marketable securities, and short-term deposits of $250.0 million, which we hold for working capital purposes. Our cash and cash equivalents are held in cash deposits and money market funds. Due to the short-term nature of these instruments, we believe that it does not have any material exposure to changes in the fair value of our investment portfolio due to changes in interest rates. Declines in interest rates, however, would reduce our future interest income. The effect of a hypothetical 10% change in interest rates would not have a material negative impact on our condensed consolidated financial statements. To the extent we enter into other long-term debt arrangements in the future, we would be subject to fluctuations in interest rates which could have a material impact on our future financial condition and results of operation.
Foreign Currency Exchange Risk
Fluctuations in foreign currencies impact the amount of total assets and liabilities that we report for our foreign subsidiaries upon the translation of these amounts into U.S. Dollars. In particular, the amount of cash, cash equivalents and marketable securities that we report in U.S. Dollars for a significant portion of the cash held by these subsidiaries is subject to translation variance caused by changes in foreign currency exchange rates as of the end of each respective reporting period, the offset to which is substantially recorded to accumulated other comprehensive income on our condensed consolidated balance sheets and is also presented as a line item in its condensed consolidated statements of comprehensive income (loss). We believe we are in large part naturally hedged against foreign currency exchange risk from our ongoing business operations, as most of our regional revenues are generated in the same currency as that region’s expenses are paid.
Concentration of Credit Risk
We deposit our cash with financial institutions, and, at times, such balances may exceed federally insured limits.
Part I
Item 4
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Under the supervision and with the participation of our management, including our Chief Executive Officer (in his capacity as “Principal Executive Officer”) and our Chief Financial Officer (in his capacity as “Principal Financial and Accounting Officer”), we conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e)) under the Exchange Act, as of the end of the period covered by this report. Based upon that evaluation, our Principal Executive Officer and Principal Financial and Accounting Officer concluded that our disclosure controls and procedures were not effective as of September 30, 2024, due to the material weakness described below.
Notwithstanding such material weakness in internal control over financial reporting, our Principal Executive Officer and Principal Financial and Accounting Officer have concluded that our condensed consolidated financial statements included in this report present fairly, in all material respects, our financial position, results of operations, and cash flows for the periods presented in conformity with U.S. generally accepted accounting principles (“GAAP”).
Previously Disclosed Material Weakness
Our management is responsible for establishing and maintaining effective internal control over financial reporting, as such term is defined in Rule 13a-15(f) under the Securities Exchange Act of 1934. As reported in our Annual Report, we did not maintain effective internal control as of December 31, 2023, as a result of a material weakness in our internal control over financial reporting for accuracy and completeness of information used. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. Refer to our Annual Report for a description of our material weakness.
2024 Remediation Plan
Our material weakness was not remediated as of September 30, 2024. Our management has been and continues to be committed to remediating this material weakness and has identified and implemented several steps to enhance our internal controls over financial reporting. We have implemented a remediation plan (the “2024 Remediation Plan”), which includes actions not limited to:
| ■ |
enhance the design of controls that address the accuracy and completeness of reports being utilized in the execution of internal controls; and |
| ■ |
establishing additional training to address the accuracy and completeness of data used controls and the level of documentation required to evidence control activities. |
We have implemented documented policies and procedures for, and are in the process of testing the implementation and operating effectiveness of, the newly designed controls. The material weakness in our internal control over financial reporting will not be considered remediated until the newly designed controls operate for a sufficient period of time, and management has concluded, through testing, that these controls are designed and operating effectively. In addition, we may discover additional material weaknesses that require additional time and resources to remediate, and we may decide to take additional measures to address the material weaknesses or modify the remediation steps described above.
Changes in Internal Control Over Financial Reporting
Other than described above, there have been no changes in our internal control over financial reporting during the quarter ended September 30, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Part II
Items 1 and 1A
As part of the business combination with Apex Technology Acquisition Corporation, Inc. (“Apex”), we assumed certain indemnification obligations for Apex Technology Sponsor LLC and Jeff Epstein, Brad Koenig, David Chao, Peter Bell, Donna Wells, and Alex Vieux (the “Indemnitees” or “Defendants”). On February 2, 2024, Drulias and Farzad (as purported Apex stockholders, the “Plaintiffs”) filed a class action complaint against the Indemnities in Delaware Court of Chancery, captioned Dean William Drulias, et.al. v. Apex Technology Sponsor LLC, et.al., C.A. No. 2024-0094-LWW. Plaintiffs asserted breach of fiduciary duty and unjust enrichment claims against the Defendants. The complaint alleged that Defendants made false and misleading disclosures in the June 2, 2021 proxy statement of Apex impacting its stockholders’ vote to approve a merger between Apex and us and also affecting stockholders’ redemption rights prior to the merger. Plaintiffs sought unspecified damages, rescission or rescissory damages, and disgorgement of unjust enrichment. We were not a named defendant in the complaint but had indemnification obligations to the Defendants under indemnification agreements executed during the merger. Also, in accordance with the business combination agreement, the Defendants obtained insurance policies to cover post-closing liability, with Apex securing a policy with a limit of $10 million and the sponsors obtaining a policy with a $3 million limit. The parties participated in a mediation in October and agreed to settlement terms. Pursuant to a signed letter of intent and a forthcoming settlement agreement, releasing us and the Defendants and settling the class action, we will contribute $1.4 million toward the full settlement amount of $14.4 million. The remaining $13 million will be paid pursuant to the two aforementioned insurance policies covering the Defendants and sponsor. As of September 30, 2024, an estimated accrual of $1.4 million was included in the accrued expenses and other current liabilities within the condensed consolidated balance sheets.
In the normal course of our business, we may be involved in various claims, negotiations, and legal actions. Except for such claims that arise in the normal course of business, as of and for the fiscal quarter ended September 30, 2024, we are not a party to any material asserted, ongoing, threatened, or pending claims, suits, assessments, proceedings, or other litigation for which a material claim is reasonably possible, probable, or estimable.
Refer to the information under the section titled “Risk Factors” of our Annual Report (Part I, Item 1A of our Annual Report) for information regarding the potential legal and regulatory risks (including potential legal proceedings and litigation) in which we may become involved.
Our operations and financial results are subject to various risks and uncertainties, including those described in Part I, Item 1A, “Risk Factors” in our Annual Report, which risks and uncertainties could affect our business, financial condition, results of operations, cash flows, and the trading price of our common stock. There have been no material changes to the risk factors previously disclosed in our Annual Report. We urge you to read the risk factors in our Annual Report.
Part II
Items 2, 3 and 4
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES
During the quarter ended September 30, 2024, we did not issue any shares of our common stock or any other equity securities without registration under the Securities Act of 1933, as amended.
Issuer Purchases of Equity Securities.
On March 17, 2022, we announced that our Board of Directors authorized the Share Repurchase Program for us to buy back shares of our common stock. Under the Share Repurchase Program, we have the authority to buy up to $150 million of our common stock shares via acquisitions in the open market or privately negotiated transactions. The Share Repurchase Program will remain open for a period of three years from the date of authorization. Purchases made pursuant to the Share Repurchase Program may be conducted in compliance with Exchange Act Rule 10b-18 and/or Exchange Act Rule 10b5-1. Purchases made pursuant to the Share Repurchase Program will be conducted in compliance with all applicable legal, regulatory, and internal policy requirements, including our Insider Trading Policy. We are not obligated to make purchases of, nor are we obligated to acquire any particular amount of, our common stock under the Share Repurchase Program. The Share Repurchase Program may be suspended or discontinued at any time.
The following table presents information with respect to common stock shares repurchased under the Share Repurchase Program during the three months ended September 30, 2024:
| Period |
Total number of shares purchased(1) |
Average price paid per share(2) |
Total number of shares purchased as part of the Share Repurchase Program |
Approximate dollar value of shares that may yet be purchased under the Share Repurchase Program(3) |
| July 1, 2024 - July 31, 2024 |
2,696 |
$10.2964 |
2,696 |
$71,857,416 |
| August 1, 2024 - August 31, 2024 |
13,064 |
$10.4160 |
13,064 |
$71,721,341 |
| September 1, 2024 - September 30, 2024 |
202,786 |
$11.7813 |
202,786 |
$69,332,259 |
(1) All shares reported herein were purchased pursuant to the publicly announced Share Repurchase Program.
(2) Average price paid per share includes costs associated with the repurchases and excludes the 1% excise tax on stock repurchases enacted by the Inflation Reduction Act of 2022.
(3) The maximum remaining dollar value of shares that may yet be purchased under the Share Repurchase Program is reduced by the aggregate price paid for share purchases in addition to any fees, commissions, or other costs that may arise as a result of the purchase.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
Part II
Item 5
During the quarter ended September 30, 2024, director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-k.
Part II
Item 6
The following exhibits are filed as part of, furnished with, or incorporated by reference into, this Quarterly Report on Form 10-Q, in each case as indicated therein.
Exhibit Index
| Incorporated by Reference |
||||||||||||
| Exhibit |
Description |
Schedule/ Form |
File No. |
Exhibit |
Filing Date |
Filed Herewith | ||||||
| 31.1 |
X | |||||||||||
| 31.2 |
X | |||||||||||
| 32.1** |
X | |||||||||||
| 32.2** |
X | |||||||||||
| 101.INS |
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
X | ||||||||||
| 101.SCH |
Inline XBRL Taxonomy Extension Schema Document. |
X | ||||||||||
| 101.CAL |
Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
X | ||||||||||
| 101.DEF |
Inline XBRL Taxonomy Extension Definition Linkbase Document. |
X | ||||||||||
| 101.LAB |
Inline XBRL Taxonomy Extension Labels Linkbase Document. |
X | ||||||||||
| 101.PRE |
Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
X | ||||||||||
| 104.1 |
Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101). |
X | ||||||||||
| ** |
Furnished herewith. Any exhibit furnished herewith (including the certifications furnished in Exhibit 32.1 and Exhibit 32.2 hereto) are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the Registrant specifically incorporates it by reference. |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| AVEPOINT, INC. | ||
| Date: November 7, 2024 |
/s/ Tianyi Jiang |
|
| Name: |
Tianyi Jiang |
|
| Title: |
Chief Executive Officer (Principal Executive Officer) |
|
| Date: November 7, 2024 | /s/ James Caci |
|
| Name: |
James Caci |
|
| Title: |
Chief Financial Officer (Principal Financial and Accounting Officer) |
|