AvePoint, Inc. (AVPT) Q4 2024 Earnings Summary

Executive Summary

Q4 2024 revenue was $89.2M (+20% YoY), driven by SaaS revenue of $64.8M (+43% YoY); non-GAAP operating income was $14.5M (16.2% margin). Total ARR reached $327.0M (+24% YoY), with reported GRR/NRR improving to 88%/110% .
FY2024 revenue was $330.5M (+22% YoY) and cash from operations was $88.9M; year-end cash and short-term investments were $290.9M. Management highlighted full-year free cash flow margin of 26% and two consecutive quarters of GAAP operating profitability in H2 .
2025 guidance: revenue $380–$388M (+15–17% YoY), ARR $401.3–$407.3M (+23–25% YoY), Q1 2025 revenue $87.8–$89.8M (+18–21% YoY); non-GAAP operating income guide is $52.3–$55.3M for FY and $11.1–$12.1M for Q1 .
Strategic catalysts: expanding multi-cloud security/governance with new Google Workspace/Cloud data security solutions and an MSP platform upgrade (Ydentic integration into next-gen Elements) to deepen channel leverage (channel is >50% of ARR) .

What Went Well and What Went Wrong

What Went Well

Platform-driven growth and ARR momentum: ARR +24% YoY to $327.0M; net new ARR +30% YoY to $18.1M, with 666 customers >$100k ARR (+22% YoY) and 225 >$250k ARR (+26% YoY) .
Profitability and cash generation: Q4 non-GAAP operating margin was 16.2%, above guidance; FY cash from operations was $88.9M and FY free cash flow margin was 26% .
Execution and AI/data readiness narrative: “8 consecutive quarters of exceptional performance… we are that much closer to… the $1 billion ARR company we intend to become,” and the value shifts to “who has the most high-quality data,” positioning AvePoint in the AI value chain .

What Went Wrong

GAAP net loss in Q4 from non-operating items: despite GAAP operating income of $4.9M, Q4 GAAP net loss was $(17.2)M driven by other expense, net of $(23.5)M (warrants/earn-out revaluation effects) .
Accelerating decline in term license revenue expected in 2025, widening the short-term ARR vs. revenue growth gap as mix shifts further to SaaS (rev rec dynamics) .
FY2025 margin expansion set to flatten as management ramps strategic investments in S&M and R&D to support multi-year growth (tradeoff vs. near-term margin upside) .

Financial Results

P&L and Margins vs prior quarters

Metric	Q2 2024	Q3 2024	Q4 2024
Total Revenue ($USD Millions)	$78.0	$88.8	$89.2
GAAP Net Income (Loss) ($USD Millions)	$(12.9)	$2.9	$(17.2)
GAAP Diluted EPS ($)	$(0.07)	$0.01	$(0.09)
Non-GAAP Gross Margin %	76.2%	77.0%	75.5%
Non-GAAP Operating Income ($USD Millions)	$8.7	$17.8	$14.5
Non-GAAP Operating Margin %	11.2%	20.1%	16.2%

Notes: Q4 GAAP operating income was $4.9M; GAAP net loss driven by non-operating “other expense, net” (primarily derivative/earn-out revaluation) . Non-GAAP adjustments chiefly exclude stock-based compensation and amortization of intangibles .

Revenue mix by segment

Revenue ($USD Millions)	Q2 2024	Q3 2024	Q4 2024
SaaS	$53.6	$60.9	$64.8
Term License & Support	$11.0	$14.1	$9.4
Services	$10.5	$10.8	$12.2
Maintenance	$2.8	$3.0	$2.7
Total	$78.0	$88.8	$89.2

KPIs

KPI	Q2 2024	Q3 2024	Q4 2024
Total ARR ($USD Millions, end of period)	$290.1	$308.9	$327.0
Net New ARR ($USD Millions)	$15.6	$18.8	$18.1
Gross Retention Rate (Reported)	86%	87%	88%
Net Retention Rate (Reported)	109%	109%	110%
Customers with ARR >$100k	594	629	666
Customers with ARR >$250k	N/A	N/A	225

Regional performance (Q4 commentary)

North America revenue grew 8% YoY; SaaS 46% YoY and 77% of region revenues; North America ARR +21% YoY .
EMEA revenue +29% YoY; SaaS 37% YoY and 86% of region revenues; EMEA ARR +24% YoY .
APAC revenue +30% YoY; SaaS 50% YoY and 52% of region revenues; APAC ARR +29% YoY .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	Q4 2024	$86.5–$88.5	Actual: $89.2	Beat vs guidance
Non-GAAP Op Inc ($M)	Q4 2024	$12.6–$13.6	Actual: $14.5	Beat vs guidance
Revenue ($M)	Q1 2025	N/A	$87.8–$89.8	Initiated
Non-GAAP Op Inc ($M)	Q1 2025	N/A	$11.1–$12.1	Initiated
ARR ($M, YE)	FY 2025	N/A	$401.3–$407.3	Initiated
Revenue ($M)	FY 2025	N/A	$380–$388	Initiated
Non-GAAP Op Inc ($M)	FY 2025	N/A	$52.3–$55.3	Initiated

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2–Q3 2024)	Current Period (Q4 2024)	Trend
AI/Copilot readiness and data quality	Emphasis on governance as prerequisite to gen AI; strong Control Suite traction; Copilot readiness engagements (Q2/Q3)	“Value shifts to high-quality data”; multiple Copilot-related expansions; platform solves security, governance, resilience for AI	Strengthening
Multi-cloud expansion (Google, Salesforce)	Partnerships and multi-cloud wins; SADA partnership for Google (Q2)	Launched new Google Workspace/Cloud data security solutions	Expanding
Channel/MSP (Elements/Ydentic)	Channel share rising (68% incremental ARR in Q3); MSP momentum	Acquired Ydentic to accelerate MSP automation; next-gen Elements launch; >50% ARR via channel	Expanding
Retention improvement	GRR stable at 87% in Q2; improved to 88% in Q3 (FX-adj 88%)	Reported GRR/NRR at all-time highs: 88%/110% (FX-adj 89%/111%)	Improving
Mix shift: term license decline	Expected decline; Q3 TL&S higher seasonally; services trending to 10%	2025 decline in term license to accelerate, creating ARR vs revenue growth gap	Declining (planned)
Profitability and investment	Consecutive margin expansion; record non-GAAP op income in Q3	FY2025 margin expansion flattens as S&M/R&D investment ramps; still focused on “profitable growth”	Investing for growth
Public sector exposure	Public sector wins in Q3; diversified base	U.S. federal exposure about 2% of total ARR; monitoring renewals	Manageable
Pricing	Limited driver of NRR vs. cross-suite expansion (Q4)	Pricing increases were small contributor to NRR; main driver is broader platform adoption	Neutral

Management Commentary

Strategic positioning and ambition: “With 8 consecutive quarters of exceptional performance… we are… closer to… the $1 billion ARR company we intend to become.” Management stressed the shift in AI value to high-quality data and AvePoint’s platform role in security, governance and resilience .
Execution and profitability: “Q4 non-GAAP operating margin was 16.2%, comfortably above the high end of our guidance… record cash flow generation… nearly $90 million for the full year” .
2025 investment posture: “It’s important to make strategic investments… in sales and marketing… and in R&D… setting us up… for the long-term growth… our focus still is on profitable growth” .
Multi-cloud/Google expansion: “Expansion into Google… layering in risk intelligence… life cycle management… data analytics and modernization… positions us well as a more strategic partner” .
Channel/MSP strategy: “Ydentic… speeds our IP expansion… MSP vertical is our fastest-growing… Elements lowers the barrier to entry… mission-critical to MSPs” .

Q&A Highlights

ARR vs. revenue growth gap: Mix and FX are key; as term licenses shrink (less upfront recognition), the gap widens in 2025; services share also declining, raising recurring mix .
Margin outlook and reinvestment: After ~700bps annual expansion over two years, FY2025 non-GAAP margin to flatten as S&M and R&D investments accelerate; still targeting profitable growth and Rule of 40 .
Pricing: Price increases occurred across products but were a “very small” contributor to NRR; expansion is primarily customers adopting more of the platform .
Federal exposure: U.S. federal ARR exposure ~2%; offset by broader digital transformation/AI readiness dialogues across agencies .
Seasonality: Similar to 2024; ARR cadence typically lowest in Q1, improving into the second half; operating income seasonality may flatten somewhat .

Estimates Context

We attempted to retrieve S&P Global consensus for Q4 2024 and surrounding periods but could not due to an access limit at the time of request. As a result, we cannot present vs-consensus revenue/EPS comparisons in this recap and will update once S&P Global data is available [Values retrieved from S&P Global were unavailable at time of analysis].
Management beat its own Q4 guidance on both revenue and non-GAAP operating income, implying potential upward estimate revisions for FY2025 non-GAAP profitability if top-line momentum persists; however, planned reinvestment may temper near-term margin expectations .

Key Takeaways for Investors

Durable growth with improving quality: Q4 revenue +20% YoY with SaaS +43% YoY and ARR +24% YoY; recurring mix and retention (GRR/NRR 88%/110%) continue to strengthen .
Profitability and cash: Q4 non-GAAP margin 16.2% and FY cash from operations $88.9M; FY free cash flow margin 26% provides ample capacity to fund reinvestment/M&A (e.g., Ydentic) .
2025 guide implies sustained momentum: FY revenue +15–17% and ARR +23–25%; Q1 revenue +18–21% as SaaS mix rises further .
Near-term modeling nuance: Expect further term license decline in 2025 and a wider ARR-to-revenue timing gap; investors should anchor on ARR and NRR for underlying demand signals .
Strategic vectors as catalysts: Multi-cloud expansion (new Google security/governance solutions) and MSP leverage (next-gen Elements, Ydentic) support TAM expansion and channel-driven efficiency .
Public sector/federal risk manageable: ~2% ARR exposure; diversified enterprise/commercial base and global footprint mitigate single-vertical shocks .
Watch the investment cycle: 2025 margin expansion flattens as S&M/R&D ramps to drive medium-term growth; upside if revenue outperforms and investment pacing remains measured .

Additional Press Releases (Q4 context)

Introduced first-to-market tyGraph benchmarking for Microsoft 365 Copilot to track AI adoption; launched AI Lab in Singapore .

Appendix: Cash, Balance Sheet, and Non-GAAP Reconciliations

Year-end cash and short-term investments: $290.9M; FY cash from operations: $88.9M; select non-GAAP reconciliations provided in the press release (non-GAAP gross margin 75.5% in Q4) .
Balance sheet and cash flow statements detail warrant/earn-out liability effects and buyback/warrant exercise activity; CFO noted Q4 warrant exercises added $17.2M proceeds, and additional Q1 activity brought in $87.3M (post quarter-end) .

All figures and statements are sourced from AvePoint’s Q4/FY2024 8-K and press release and the Q4 2024 earnings call transcript, plus relevant Q2/Q3 2024 materials as cited above.