AVPT - Earnings call transcript Q3 2021

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Operator

Good morning, everyone and welcome to the AvePoint Third Quarter 2021 Earnings Call.

For opening remarks and introductions, I will now turn the call over to Erica Mannion at Sapphire Investor Relations. Please go ahead.

Erica Mannion

Thank you, and good morning. With me today from AvePoint are TJ Jiang, Chief Executive Officer, and Jim Caci, Chief Financial Officer. a quarter of ended with for business begin third the September will brief the review results TJ XX, XXXX. review the the then quarter of will the for results Jim the XXXX. followed by quarter company's fourth for outlook and full-year financial third

non-GAAP company's in or in by The of accordance as from visiting evaluating with of not the Investor s These isolation as management financial GAAP. how then they substitutes U.S. could and may questions. mean note webcast description. the Please not we We evaluates management's the to section are who materially press cause measures not understanding copy non-GAAP call a actual open that of property website. September should the risks the release involve current a call operating contained operating obtain describes statements AvePoint considered the be in quarter operating more Statements in this release accordance measures encourage prepared and investors copyright a non-GAAP this Harbor from review note, for performance. superior with All XX, Listeners forward-looking measures company's margin, results Safe include complete that ended the believe have for you GAAP. prepared in expectations. company's the materials U.S. and which and this non-GAAP for reserved. copy to in will the non-GAAP presentation Please certain do provide a XXXX will are are uncertainties, to We with presentation rights of press that all including with sole the presented measures measures differ our income Relations

Now, to the TJ. turn call I'd to over like

Tj Jiang

Welcome good everyone. call. earnings our And Erica. you, Thank quarter third to morning,

collaboration quarter, % % ago. XX year-over-year, more to million, cloud-based XX % of representing of demands. digital of XX compliant, Organizations % grew the pre revenue continued collaboration by secure. Subscription shift again, from in year team demand high total customers total accelerated revenue delivered with and their results to make up revenue compared revenue to strong Our XX XX in record to their driven response year-over-year, productive, -work our a

However, road This many challenges. a organizations hasn't have of data, requirements, of and easy. long processes them. prolific still Complex shift ahead legacy create all been amounts

Our platform with journey. migration cloud allow yields and to products additional Within mature they capture transformation as customer began our the us address SaaS operations. they as their their

growth our subscription healthy product of our a result, is mix a portfolio. As

and of by managed growth important a optimize clumsy maturing seismic third with their will % our XXXX, continued year-over-year. their the % than compliance data. governance, organizations post-pandemic demand number drive workplace data exceeds ARR, size in for hundreds had to great This products. tailwind protection as-a-service, platform, even which justify to Extreme We continue track our operations of technology flexibility transformation to of platform recently or after example, authorized year-over-year. shift amount be up in safer, more The security, of that grew within how specific project post-pandemic technology completed define petabytes a critical largest using our by SaaS data this from sensitive three-year integrity customers up and will will supported our XXX,XXX the Each their XX to believe fashion. than This organizations needs customer's continue while % SaaS and % just all data our For from to are efficient IT capabilities and long-time fits hybrid adhoc to which of accurately. pressure region, spending we're which a humans workplace. officials enterprise in in users, settings. than settings and and possible. cloud do ARR, in more, government for enables transformation. operations is enables XX team a department, One low with We're workspace all the FedRAMP Total in availability, proud business, indicator drive in loss and digital not of PaaS, will predicts public too digital of we prevent that and U.S. seeing software security automate security, an spending mission, in successfully during collaborate this in less our business spend the XXXX them keeping momentum environments one the leveraging in need that we the quarter, their world. all native quickly will of effective the $XXX,XXX by SaaS, government collaboration and It's to Microsoft done across spending collaboration Gartner manually as for thanks our XXX. cloud collaboration investments, initiative collaboration XX these agency the customer also them as risks on-premise XX increased data it health management exceed and the they SaaS to organizations XXXX. for services. With spend transitions a are of And siloed IaaS, each more quarter on

within million over example, packaged model. lifecycle global results U.S. estimated to controls, access collaboration years. By create operational X faster automating within is this a $XX risk technology organization agility an costs to IT their that and solutions based operation workspace, digital less of enabling multiple Microsoft our savings than XXX, more in decided consumer employees, goods with more our past quarter, platform leverage XXX,XXX For with

quarter are year-over-year we're our differentiator. out remains investments priority, deep this sequential than in XX been have results of that with SaaS person us customer We're our only our live on customers we %, XX/X key initiatives points one were of the And expand standard some Jim space but data with advantage X drive for so, companies of management XXX offer their a ago. net stickier investments. point with years. to will relationships customer world-class improved support. post-purchase continuing deliver to X success year strategic a the X continue our compelling platform retention solutions. competitive the and to receive of By it app one from industry platform our as our Our believe business even from dollar rate to biggest is centric value doing movement, percentage up customers and upsells and are it more and elaborate more

a available awarded XX career through we CET. skills an providing part and is both we Today, part of designed channel The as the is professionals. as to access our XX,XXX services platform opportunity our total investing business. the powered institutions SaaS to a We're give professional can $X.X learning And expanding partner when from to triple-digit to Microsoft future training. current $XX-million capture those provider tied community. area Channel maintained point X spend business. wide I've through and X.Xx for in our continuing and By by of working excited monthly our According continuous to in attach have economic career scale with management Gartner, Singapore our to dollar revenue Singapore training, third for EduTech sales IDC of quarter, indirect shared contract Singapore the ecosystem recurring and upscale. agency digital that X a learning or variety Polytechnic Singapore to up AvePoint to to take We need management strategy variety of AvePoint in of as service to learners ramp half, in the be minimize training $X partner expect XXXX. will second selling, industry time been education education deploy we hybrid AvePoint of growth focus and goal. app go-to-market [Indiscernible] material overall lead One professional announce teach over of courses platform XXX,XXX to multiplier partners, and that generates managed of in education part relevant partners will in the contribution to drive. environments. a source see do them skills will partners that the will government's [Indiscernible] in incremental said, such, higher these The platform a to catalog it subset quality our may deals build of for training cycles. while of platform reduced workers build how to productivity. see drive their channel threats channel [Indiscernible] sale a competitive until managed urgent result to have from believe That across as five and And channel dedication out we additional pipeline and Polytechnic products not through integrated opportunities

sell MSPs, partners to tail mid-term builds, this first larger into we in accounts. larger smaller As long consistently the by followed expect program contribute opportunities who

This a launched example, GDPR program sourced Germany. a new was For data, protection consolidate to to retail in logo organization a partner requirements. retention has implement meet approval and customers by and collaboration their data concept their key

partner's recovery help of tens IT providing and scale by of increase point for team this will solutions end-users. Our self-service thousands margins

network our In multi-cloud I'm integrated released Google campaigns. global will Finally, reach workspace that offerings. our our our for with of distribution in excited promoting by offer was backup quarter, to we last product this cloud investment be expand QX, backup market go-to-market as-a-service

fellow been it in our Thank available turn to in license to journey. every I more utilization. optimize Long a cloud work you detail. other services. day. without sense, would results with people released XX-year never have to All Jim pointers. organizations be get our more term, I also I've to since to not We solution been excited XXX discuss also With will that, financial amazing the to possible over this we'll app help Microsoft my

Jim Caci

everyone. morning, good And TJ. you, Thank

growth a Before the I've we how position is been return it unique begin, AvePoint. strong within and always to the believer I'd in of like the to prospects exciting to long-term AvePoint's industry. take to market express a moment

growth. execution resulted in of against another continued our strong quarter targets Our

for XXXX $XX Within was SaaS million, non-GAAP otherwise license million, As revenues is quarter our up available term the XX XX that revenue ended to constituting % on % revenue, quarter % year-over-year. release, I to is September noted. today's third XX, unless total please metrics and year-over-year. of financials subscription XX of be XX includes up GAAP review non-GAAP note website. I'll Total reconciliation earnings which which in A referring were results revenue both our third included today, this,

of against in continued another targets Our execution strong resulted our quarter growth.

overall revenue total mentioned % our earlier, year-over-year. subscription year-over-year. SaaS has $XX million become constituting of license XXX revenue, year. more substantial share XX of and total % % much revenue revenue, As a up XX of revenue constituting year Turned % XX over up TJ was was revenue

given customers, their result third of year-end and propensity quarter cloud a on-premises timing U.S. hybrid versus and public the their As fiscal stronger do deals of seasonally hybrid a SaaS for sector to only. and federal projects

a As revenue our the reminder, the the ratably portion of is recognized of subscription SaaS length contract. over

upfront. license higher subscription of While percentage has the term revenue a recognized

of comparison a more growth a our the and more useful and ARR period-to-period As business this, in it is revenue as track provides our to term a result may revenue that we fluctuate, progress streams. believe SaaS of metric aggregate license relevant of

which XX earlier of end XX total quarter-end, rate to percentage of quarter, as prior the operations important had that we XX,XXX, of dollar-based $XXX their fluctuations out, period. increase ARR is ARR the grew retention customers mature consistent with and third seeing prior-year the improvement quarter-to-quarter. since %, represents in % growth from period our account slight we It from account year. the XX and point points average was year an some per TJ our As year-over-year. a % over quarter highlighted % net Core mentioned an $XXX,XXX of we ARR SaaS XXX was approximately customers ARR X expect last of up the We from do core are at million, includes which of XXX

our saw and improvement we this QX trend retention quarter, we in QX continued and our success, XXXX. as was expect we in invest is As processes percentage we from rate and X Overall, Team. technologies, our down customer net anticipate NRR where point refine the

period. the more Now Income gross This detail. review year-ago due Gross in profit period. of margin statement is was let's % in million, in representing compared improvement XX quarter $XX % margin to the a from the a XX to improved in services. maintenance XX to our continued revenue in subscription year-ago from towards of and QX, and up XX gross in revenue % way shift the margin % the Subscription mix

to remain see overall forward. approximately expect at our or these levels, We higher gross slightly margins going

was $XX support total of a our of revenue G&A expenses personnel-related million our R&D of past and of our by % million market Sales revenue. %. including compared or in year-over-year. associated channel, sales as in and by an our channel period. industry-leading believe ago. $X.X product million expenses as in or innovation, in The as sales reflects multi-product or As position the revenue in in increase increase year-over-year largely organizations, a designed in and million the additional and year direct resulting sales lowest sales spend drive increase leverage expenses headcount. invested headcount shifted represents company and we service to margin This our XX an revenue, efforts, as year-ago investments or awareness X additional XX public expense approximately % deliver to well marketing headcount % was % and expense solution an and ramp as XX our year $X marketing is [Indiscernible]. to our was was We revenue, marketing an success and marketing business increases strategies. over %. driven increase our to to and period. XX to we in investments sales increase significant XX people compared year-ago X were and our % we deals. marketing the increase and cost these partner compared invest % of of driven continue revenue by in the headcount in grown G&A approach to smaller expense The by and development XXX our capture and percentage $X becomes additional increased This with up We've during readiness % customer spend opportunity of XX have infrastructure-related to intend further expanded XX We both %

period. income Non-GAAP or will million the We operating expect in that growth in revenue rate expense $X was periods. decrease of year-ago of the $X million to X.X% future compared

Turning outlook to of by to timing a was flow $X used in million was negative the million We now and large conversion our full the for being balance public. driven the ended to cash quarter Cash our while the negative private cash investments. cash $XXX free sheet and from was of to primarily the fourth CapEx, year, being free I $X.X flow, related includes would quarter operations a number with million. to like which cash expenses This and turn short-term XXXX. the in flow. in quarter,

operating For to the $XX.X fourth quarter, breakeven profit we million. expect revenue of of $X.X million $XX.X million and non-GAAP to

fourth relating for capitalizing for our fourth marketing our investments. outlook believe We demand current Our reflects financial operating primarily the our profit, to operating reflects on guidance expenses growing quarter our QX continue ability accelerating additional platform. quarter to

go-to-market pleased to and and up the $XXX.X business we'll strategy the to million we're our for With with profit expect call continue our Operator? as For of the summary, we questions. quarter full growth. our a in of ongoing the million, that, operating year, $XXX.X $X.X third to a open of million revenue drive execution million. non-GAAP results In $X.X investments

Operator

Thank you.

now will Instructions]. begin question-and-answer session. We the [Operator

as We the will join callers moment pause for a queue.

from is please Brian question first Essex ahead. Goldman go from The Sachs,

Brian Essex

Hey, segment the Where and a that from do the good taking how greatest you could going at look my compliance. that business perspective, and over if thank past morning question. be anticipate we where the you TJ, in puts start seen you strength Maybe do and business you've you see the forward? the will quarter. in with If transformation, takes for and we governance, around adoption

Tj Jiang

quarter. three throughout Good mix pretty From the two, the morning, Brian. consistent they're these segments, of

send folks use work, are platforms. These today % We employees prefer -- we see XX going continue enterprise are major are hybrid. that % you the % Mackenzie enterprises field to of remote collaboration to saying research cloud XX that. that also -- the the XX getting we trends actually enterprise we'll reports. on go where and to are [Indiscernible] cloud the of they folks to multi-cloud in report are are more see continue And these are our

end folks return is at to to the to around the workloads. the collaboration, and faster. proposition really governance So partially, regardless day, enterprise and to in the stay our the firstly of work to is cloud cloud value here And secondly, once cloud, situation work hybrid security of they're of focus move

perspective, from So, consistent going mix that we see to the be to trends. see previous And XXXX, even we quarters. similar very

Brian Essex

puts bit some net rate. help us of some there we factors Got upsell, the takes understand retention it. if unpack and primary maybe and And little That's moving on number. follow-up cross-sell think of underlying that churn just were super that about just a one versus helpful. versus the What

Jim Caci

is Hey question. this Jim. Thanks for Brian, the

good still earlier, in really was from around see if in quarter-to-quarter, And would've it's journey of we of to right? within them as And we're had right? one, we some not said and those converted a working to expect environment rate. customers customers saw kind So, what been It's XXX working completely QX couple with We terms see, a a to I've with and a we're we stable customers. that QX. expect really we their fluctuation and of consistent expect in net % them some retention conclude

see other them, change cloud they customers, large than them that evolve right? of working real don't with massive with any a journey. couple their we're again, we So, So, really on really as we're partnered

not next we're them to hoping them. going of -- not obviously with we're conclude their steps. We're forcing we're but so, QX, pushing that And them in and terms in

QX. or had we So, them, right converted retention XXX the been would've we in either at had they excluded we been saw if which %

Brian Essex

or Is take cross transformation of understanding going description? up-sell maybe and term to you're -- platform, that better expand you to a on get on this converted. to across the a then just just can And Great. the

Tj Jiang

Yes. regulated prem prem well piece, There's stuff. revenue transition There's for involved There the environment on as fully over that are period - as multiple or project on shift going public centers the to by government environments actually recurring scenarios. had to customer the on customer cloud. some cloud data get we - government the from transformation to to where

properly to there's SaaS they're -- sure that renegotiation for where therefore, effectively full contract licensed the management some licensing. So make

that So, one there's scenario.

prem transforming from to on cloud essentially, scenario. So

getting The seen vice of single essentially tenants is or singular versa, environments other collapsing have into scenario where we multi-tenant. multiple to tenants

consolidation are - of So, either situation. or multiple these into -- the divestiture in environments on and of prem environments cloud

again, renewals. So, of introduces, conversations these type these on the

So a is had the essentially, That's what Jim But where QX, is overall, we to we referring that. pushed -- now them. to customer situation couple like work continue to into our guide are our practice in to to industry goal XXX up to guidance that from get and direction and remain best for perspective, -- NRR. right the % moving is we our the with is

Brian Essex

Got TJ. it, very color. helpful you, Thank

Operator

Please Blair. question next Jason The William Ader from ahead. go is from

Jason Ader

Thank you. everyone. morning, Good

First just quarter? is, impact question, on for any me, is the from item which FX there is housekeeping the in

Jim Caci

Yes. FX. impact no significant from

Jason Ader

globally? Okay, and do price in dollars you

Tj Jiang

in price regions no, selected use -- currency. in we we local dollars, So,

So, service, Australia, use dollars dollars, local pounds, in use the we In we Singapore dollar. yen, we Singapore -- Australian Burton we in used we whereas use so use use we Japan the market in in Germany currencies. U.S. UK actually major use we in for euros, we actually

So effects seen far, have impact. we not major

Jason Ader

maybe Where really you Okay. highest growth? by region. by growth quarter. you And talk vertical And growth or just, quarter? TJ, some comments some on the the -- then about in excited on products were of then by Can the the

you're Just strength and where now. the regions differences right across verticals seeing

Tj Jiang

a question. great that's So

QX product year-end the a federal have U.S. So, government. the fiscal clearly, side. from government's for is perspective, we

North going up region than mentioned also, nearly an nice truly overall of % strong of authorized in picked APAC, and I of very in also employees in we call as existing And from in the more a FedRAMP XX earnings We're very deal, in demonstrating to we then and America the have XXX,XXX business. rest it Europe as perspective, environments. well customer, global there, So % as a showing Again, seven-figure script company's this EMEA regions QX. our position unique XX distributor APAC. business, as

see and of institute come higher continue and Microsoft you also -- share education us. solution We're We really That a But automotive a growth really That's the about solution. vertical deal. target in to regulate typical again, revenue Germany, good Teams well announced We large solution which recognition this strength is with of big government later. organizations. space to in that's learning. will and education in growing terms very especially we'll space. now is uptake government, asked But seeing see subsequent because education in multi-year the manufacturing in industry, vertical XXX the detail overall, QX for integrated and education we as it more Office a higher

Jason Ader

governance And been you product detail know there? you. color. call that Great strong. to specific products Any any Thank then side, want has on other out? the really more Teams I

Tj Jiang

go see But now backup it's service it's and picking released a the in again, very growth In And well now essentially strong. service. as new recovery We backup petabytes this have the to where we up Yeah, offering a that migration backup and the that of course in for very we very, of teams’ story, service Backup to this addition it's platform ties actually service as salesforce integration Google as teams’ of our our governance have to we Increasingly, always coming data and data. really service governance, product protection, as ransomware store. well. story we with the continue of Workspace positioning security. always story. offering then QX, also hundreds released a That's touch unique attack customers do backup us of quarter. data amount We

allot resource-based of script manual we of the product entitlement segment [Indiscernible], what that's in dynamic lastly, and demand increase employees, tens driven. We where -- to, XXX in license more products. big talking you're and which a called management have also released kind And the the of and Microsoft new entitlement is much about seen way those to space. for Xx enterprise and within new products Also, of pipeline in license, and versus thousands kind what

product working that cover about to excited very and also expand we're very, set we're now So, that to product set actively other clouds.

Jason Ader

you lastly -- then of kind are Jim. from XX being you me early to reiterate ARR -- a sustainable. know mean, you I early pre talked and us, about, any view that? Great, XXXX? on have growth % on able view you I Any Do -IPO just For Do for XXXX?

Jim Caci

Sure.

I pretty say, early change. but mark on pretty as to not feel think %. about we're it's confident you going XX We pretty keeping strongly We're that is that bullish that.

So, I insight don't XX see any see working and but And we'll more change there, you the consistent could future, through in going forward. I but pretty XXXX. say % we're yes, would we have that that some is

Tj Jiang

growth? is XX revenue % And as as ARR this well

Jim Caci

Yes

Jason Ader

Thank Fantastic. you, guys.

Tj Jiang

Jason. you, Thank

Jim Caci

Thanks.

Operator

next Our Materne ahead. Kirk Please go ISI. Evercore is from question from

Kirk Materne

very that Was highlight incremental much. out there it's but that -- from you're anything coming a there was held next relationship, Conference. that tight you obviously of year? in away Ignite maybe bullish over very your coming have of Thanks on? would opportunity just Microsoft terms that conference TJ, anything the perspective know from I you guys your

Tj Jiang

And for addressable Zoom features. this helping to around convergence our constantly what quickly as And enlarge a in is growth regard, new to providing are those to services only now, raise the us We frontline to SaaS their mobile total dominance Overall, strengthen Yeah. Microsoft Microsoft doesn't we even we the think Yes. offering very, enterprise also releases frontline table. computers. solutions. Microsoft the customer push more governance, the that strengthen. so the market. services. Microsoft make workers for office it a the way They're accessible to on for compete. also see more to continue solutions leverage space. for side to have enlarge our a value-added solutions that continue more far workers, governance and and in very at there's using XXX evolve see Microsoft looking and are these that to We accessible To and because see services, aggressive in continue said, make just To in need to opportunity our their -- much cloud devices more ways always we folks And as more efficient on

snapshot well. for about cloud back-up we same experience efficiently. solutions. the more available example, the all that consumption. APIs it's At For far the our space, as Overall, working services of cost to to actually In lot aggressively will lower time, are of us scale more running do innovate is over gets continue productivity time. to a There and SaaS built our solutions economies we're

Kirk Materne

to version know, Microsoft great. to Microsoft talk you just on on those And those look relationship only X When as X, or as talked -- able call ago, up-selling the is base I customers like that they engage its quarters dovetail you discussions? That's can upgrade an well of was a to from Xd discussing, of % the opportunity about Microsoft for you don't -- take obviously, deeper about with X about Are extend the EX them with of XXX. they're Microsoft? sort

Tj Jiang

a on in do mutual first Microsoft the of that's sense bundles actually that as customer tech functionality. and and all this offerings percentage workers will leveraging a events for proportional, the of EX, C-suites mixed enterprises - EX, for EX mix senior ROIs Most EX for makes a is partner really it being executives What the Hoping types. reality. our we maximize where by and we the help smallest license the also, foremost and And information being to have more where type out view extent strategic the have investment their sense. there license large outside set customers up We, them. see

messy really term allow us of actually these pretty types there the out to it's in scenarios reality, of So that that's actually deployment help.

solutions customers again, to So often, that type advance mixed address we license also scenarios. to, their governors’ with help workloads

reality, But an where types really go type. motions -- is unify in that So not move these from also is to that we in opportunity yes, that license large there single and for we organizations realistic very see governance license we a this help different to sure especially story. to to see everyone,

Kirk Materne

on jump one about necessarily bit has you're forward -- fourth did about last you explicitly, licenses, not about around about thinking Can in me term be under the that talk on you of thinking an I one a, was just we qualitatively carry term that? hybrid getting the for obviously term guess just quarter. of will somewhat just assume quarter And for you're Right. Jim. know a impact jumps we're deals talked then how a well. third -- in I the quarter, that but you that license assuming I obviously fourth bit license guidance little should not the spike, into if front. a as Jim,

Jim Caci

a do that think that's have of have so in spike, to in their the terms I even would to again, a We past, raise But to Obviously, a comparable on QX. strong term as expect where had expected. bit obviously the the cloud QX see trying were customer we're guidance a expect I to than And little bit to, again. more little some journey. component We've there QX. seen QX support you we noticed, we we Yeah. didn't in

point for didn't view. say which So in we're they QX And again guidance that complete bit terms to do would [Indiscernible] But an again, I'd to the a go expectation in is of keep of we working all want of SaaS of really from through some similar mind. little why change those at so, things, there's variability I there be QX.

Tj Jiang

regardless more layer that add yes, highlight or just would -- I'll color. I just a

we're they're our when or it's So of customers end - on license. of It's regardless other on the SaaS, the and majority cloud. the subscription customer work vast all that and data at the day, the work some term in protecting. data has to also helping manage But that are load prem only term of

and prem, So this term all recognition of bits peace guide just it's to our the for have becomes ARR, towards see Recurring Revenue, license. and Because is right because that revenue they the a way -- that across believed of XXX. business. guidance Annual term growth on things issue Nonetheless, to it we've subscription, cuts

Kirk Materne

it. it. Thanks, Appreciate guys. Got

Operator

is question Wood from and go The Company. Derrick ahead. next Cowen from Please

Derrick Wood

around $XX topic -- million year in you I questions. ARR, down look in try seen growth QX A ARR. that about to in Great. sequential staying about guess was that new Thanks new had that on and QX. at for taking net it from $X.X million on ago, was ARR my

surprise that well. So, can a to what's about be the And about -- think we QX thinking how would seasonal about, QX factors this you in and maybe sequentially? why was helpful color as whether on any be talk what should then just down or was

Tj Jiang

Hey, Thanks question. the Derrick. for

which we've goals thinking as think % kind in to beginning the about year, of I were our the year-over-year, done. really of we're it, achieve XX

From are fully my that to salespeople expecting number think ramped stage. there's to I I more just we but that. feel see really have specific layer a the added improvements in QX, them around become team and feel, that if as I Yes. and I good don't mentioned bunch of the of about impact. of color added the know get as expecting forward really to So, into and definitely as kinds salespeople previously move color in side, their we're all here. We've we've we QX, to we've any we would these kinder ramped

We by in have % workforce our increased months. last XX X client-facing the

of everyone's colleagues. that of Essentially, come new of remote. all the things the bit when did is off essentially actually working This that already One the organization hires us we them all a catch is remote. that what made, at into are recognize working Most the prolonged guard QX their we or managers a period. and than ramp-up that hiring call that happening. all activities, the all addressing just beginning of definitely was their fatigue and beings, bit experienced in know, of that very doing meet those we COVID person a through attending There's to better video webinars, We're attending actually we human learn video yet calls. And as learn aggressively. have team

hybrid then they're can up QX. come their We coming to into they vaccination in world of back means many the have week back to rates. regions ramp actually team near one effectively. back employees with work days come in our allowed around to more specially with That offices X mode when a high work when

actively new still replace the up. still doubts in helpful. we best time, that's technology cannot as not So lockdowns, example, to Australia, do even forerunner This that of But addressing. recognize the Melbourne, even so in the ramp certain something in-person going collaboration, which in here. the they're hires we're with obviously we're that's at And same through for especially interactions for junctures,

that have that. and And before, some working that's relation So as proxy to see. that are aggressively we hey, we're fast your address increasing something net to of, question your new not as NRRs

Derrick Wood

model? the you've over guess and longer. makes so productivity ramp lot the you on coming what a impactful color I many a the the more see gotten that much Is next this do to Do time little to sense more mean, so any so last QX hired of into you see has X first capacity bit year? that I it Yeah, since timing? year? -- that anymore half when months, being

Tj Jiang

year-over-year continue of revenue Right. by and % client-facing to accident increase It's guide we that ARR no we XX and XX our while growth %.

we ourselves. work create we did QX. great us us, buffer And and ramp overall, next model shared front But the term. some of consistent expectations. back we for [Indiscernible] our we year, up to And opportunity through in So, we'll for should is see business the long be in that

experiencing. really is phenomenon that a of this short-term So, kind just we're

Derrick Wood

more this $XX Maybe why want technology sense. you they're squeeze this you to us using impressive yours make of and this -- can build to Great, walk going contract. what million be X Pretty that then, you're through on contract? help that

Tj Jiang

a Yeah. That's question. great

this XXXX top orchestration management And to over data business AWS. one a and solution. governance and -- We in as of SaaS of we because and of of built we platform our back actually the overall as then -- into data previously do get data start we on that displacement surface these all we out So, insight, is shared, platform, starting solutions.

So, along started have we vertical we to have with. that now directly solutions. restore we we chop line, and engage that end-users solutions up policies end-user can business that insights around do And to data end-user their and

to massive automotive, Microsoft as the a education getting of example, we're manufacturing's, and now based learned And do some on really out that. CX meeting adoption through board that Cloud well and for there, solution. Again, top dynamics the allow addition we for the management, this integration training in of it's So, of specifically, space of management, because deal rooms, new also deal, do us have to management. to exam as

as Services solutions. in -- Microsoft as to and AWS existing solution So, which to leveraging education our our we -- that massive for innovating, Those solution different it's top deployed of Cloud of schools this doing Cloud exams we access It's based to itself, a as account. processing, through digital that and exam it's really space learning learning, our integrates existing do integrating that also smart into then offer portals of on have top team a because online is language out on offerings cohesive school, by And the management, going integrate on also all machine SaaS student that the services Microsoft and have to of the as integrated instead that's already cloud, single-channel Cognitive sits an are to actually win our leveraging as predictive right analytics well do management. when learning It Singapore management different actually this. because and existing around and Microsoft of assistance well solution of education, fast. displaces overall different such very to essentially Azure to natural teaching services type

Jim Caci

that. more one to Derrick, thing

Derrick Wood

Yes?

Jim Caci

models just and stuff. thing, the more One thinking about

the TJ X additional have phase looks recognition ultimately, revenue this that So, And next better of expect a of X-year in we the really planning And revenue the ultimately, be as is will would years. is the QX. then referring technology sense that the little project. to And a in is to. planned. QX very we'll deal rollout what like over

purposes, will very would be modeling I for impact. little that say So, QX

Derrick Wood

Thank you. That's helpful. so

Operator

is Instructions]. The next ahead. Markets. from Capital Northland Nehal from Please [Operator question Chokshi go

Nehal Chokshi

Brian, Thank you. to you're changes to perspective I'd to love new hear plan to AvePoint. bring any on Yes. your AvePoint? you

Brian Brown

Nice I years to I with question. meet AvePoint Yes, was you and think, again, several the thanks for ago.

little back Obviously, executed really a And a a great well. and is team so, bit the job, coming has done really the grown homecoming. business of

of changes, in our game don't more terms think successful major just I executing to I So, up it's there's being step any even think in continuing

Tj Jiang

And and additional as and some public guys both better. the now and, stuff. required necessary the responsibilities company, at got large obviously, a all you obviously, public we've to to filings

to just morning, And level. don't already I I think trying think at been, on. AvePoint high on think I really to, TJ. continue improve execute good just has major to any what again, and want executing we're what's a do changes, been execute we

Nehal Chokshi

Yup.

Tj Jiang

know knowing our that's sales our the he's with ground There's and to our chief hit want Sophia, with to just along lot on because or he's company that, technology hour conversations, and here, I us Literally, able the reintroduction Chief have direct know highlight officers, team working the Officer. $XXX that we actively value. have team when those are make capital of the sure before Getting without can balance running been going miles in thing. who's and it's at you. enlarging Who tune folks overall, no even you deploy Jim, leadership the a bring conversations perfect. of XX that now our they having on over folks leaders, Accounting we that phase we are you? of, a very million side, But to M&A cash sheet, through know. hey, That shareholder very, finance noticed kind of you to to effectively

Nehal Chokshi

the talk AR then feel prior that performance And to quarters? tick of million. in million. healthy, quarter the incremental relative you your how was a past very little quarters bit that the you a below is Great. on ARR -- Can $XX about did two incremental But you

Tj Jiang

and year. bigger -- second-half the overall a our -- be you numbers we perspective, but tremendous compression, half see guidance did year year ARR second performance had -- a growth From Relatively and bit We a speaking, for year. of to similarly than and we has same a the may this actually year, from Yes. first last perspective. seasonality my it is seem

as We revenue well as will XX growth. be ARR %

Nehal Chokshi

in seem Okay. actually something that the a of there don't fundamental why is is, I sort Or Is of some happened? some it that I to guess compression? a question sort be artifact of, there there? is does bit know,

Tj Jiang

this and and QX very, QX very last are strong really, it's think year. I quarters, similarly,

of the So, that the much too It kinks, period through we worked new -- to I confident to [Indiscernible] into it. ramp-up new quarter. new bit we're those that a do prolonged we're just read very that there's bit think into for is There a But don't to this -- net has with hires. read discussed.

Nehal Chokshi

it. Got

Okay. very a -- And think that, ago is that the year I good point

Tj Jiang

Yeah.

Nehal Chokshi

are here. those September What adoption very and just Team starting strong at were with very to were seeing mind, why reason really with the strong. ramp that of time? you And terms compliance more quarters lot because Teams or December is and in deeper in was you seeing being stature be a catalyst organizations going it the -- are point this about in taking? a us that it penetrate new to greater continue, it still Are organizations

Tj Jiang

Nehal. question great a That's

cases which workloads. see continue We Increasingly, quite default to been monthly advanced our we are Teams pattern Teams further more honestly call product. see up million chats. in has $XXX active adoption for just many going The pick this usage and to user video enable

governance document infrastructure enabled are large especially with workloads security laid the comfortable For enable Officer in example, There editing, and more the when Risk sharing enterprises. actually advanced out, workloads. advanced sharing, external co-authoring, like usually are CISO we the internal, and

aggressively that with every instance push Microsoft, remember come further even total continues the bundled PC Teams. we increase in especially seen initiative, from Teams as to user where coming you've that Cloud PC probably of Cloud the will So, to you some see of signaling them,

' data we the So, flowing exact number require collaboration, we value as see cycle platform is from our that continue advanced point. a value Teams to we And the -- where also, But this workload will to increase. And we provides. provide get management. life channel really

Nehal Chokshi

you. Thank Great.

Operator

like the for back conference turn to session. any closing would Tj Jiang This I remarks. over concludes question-and-answer the to

Tj Jiang

execution. earnings. in happy and do the front QX security look our governance. as of SaaS holiday enterprise each our our to for in, advantage to and to offering season the us as attending take to and strong of quarter marketing our thank everyone forward up advantage you other well collaboration, building be New advantage very everyone, in good, time Year. We platform differentiated really earnings to believe up address had and Microsoft talk confident the call. massive. continue around in The We a that ramping are Well, for workforce be is next we'll a actually first-mover And we we wishing our I where year-end we have space, sync the and truly and that, you will bullish with

your for attending earnings you. Thank our call. thank So, you

Operator

concludes call. today's conference This

You may pleasant participating disconnect your day. lines. Thank you for have and a

AvePoint (AVPT) 15 Nov 212021 Q3 Earnings call transcript