- Earnings call transcript Q3 2022

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Operator

Good afternoon. And welcome to the AvePoint, Inc.

Third Quarter 2022 Earnings Call. Please note, this event is being recorded. I'd now like to turn the conference over to Jamie Arestia, Vice President, Investor Relations. sir. ahead, go Please

Jamie Arestia

and margin, this Good operating how measures in for With in call. welcome The and statements are call that me most the With Dr. directly measures as that evaluating will will presented Executive differ is operator. quarter not the from After understanding call our are both call Financial the of financial the harbor to are let quarter in with Relations accordance complete including remarks, the presentation this believe question-and-answer this management's with evaluates available from, which measures reserved. to preliminary GAAP this XXXX for isolation AvePoint's the well We results release, the and U.S. Web you involve to session. of non-GAAP XXXX that the of non-GAAP uncertainties the safe material we certain non-GAAP expectations. comparable press webcast TJ. substitutes Officer; U.S. our Investor in investor financial our Chief Jiang, earnings GAAP. me prepared the means the as describes TJ to operating measures forward-looking Caci, more GAAP. A actual as the superior encourage is sole afternoon, provide you, in rights property as risks Chief presentation, site. accordance investors to, Please section measures and statements our copyright to Officer. cause call and open third afternoon not and could note in Jim operating earnings they that, a Thank available include reconciliation materially on note the the description. of over non-GAAP measures, income All performance. a with press turn of measures that current updated is in all non-GAAP review third AvePoint in contained considered we These or management company's release presentation with Please prepared should which be for, these

TJ Jiang

I'm Thanks, ARR joining welcome of new you today. total on growth Investor QX the XX% relations. our to of Head AvePoint both to you the to as Jamie. Thank impact and And highlighted us quarter AvePoint, strong for adjusted was formally XX% by happy everyone revenue growth, call for FX. another

we is same more will ensure the line a what our are which recent we a realize, all the collaboration moment, current to for seen been past to in and we resonate continue a dynamic to expect in Jim over it macroeconomic At continuity. strong the always will priority performance laser AvePoint, focused sustain on few which quarters environment have important profitability, business continue. but provide and reflects need especially ongoing time, will secure develop people between data, color Our we're and top and connections verticals, our why on R&D financial sizes, results well investments seeing organizations of update as will discuss growing we’re and a on channel our with but offerings beginning I environment improvements acquisitions. ecosystem geographies. today provide as also associated the two increased I and in has

jump in. let's So

than informed variety built productivity faster, cloud our can us help AvePoint collaborate cloud make that services so confidence year, with of use the that grow modern for to strong to you, collaboration spending more estimates workplace. reduce platform and well costs, And or helps this more AvePoint positioned platform they digitally to will more see on tailwinds Gartner As public leave By we transforming diverse in continue to the XX% base the with of cloud organizations times, and business challenges right the the innovate. our The remind one many suite build Confidence to global resilient Confidence Whether companies they want become workplace. solutions their the performance. and cloud foundation us customers and innovation. of usage. is solutions purpose they improve to uniquely in only can full be decisions, collaboration to optimize AvePoint services, for trust SaaS we secure move platform the customer cloud said a positions latest This AvePoint in continued have in more adopt the complex operations as help many users overcome mature productive data

new product of suites spend the key a wins enable we on agile let's business from that demonstrate some and expansion how highlight moment and So each transformation. quarter the

look to teams when of all of data initiatives, sprawl deliver reduce essential An policy During cases, National, their services greater a by maximize hard digital and with and automating digital company understand the XX% configuration This has suite Canadians. workspaces. quality their time its and on life transformation digital their Infrastructure American AvePoint our at data industry, enforcement. can helps operations customer reduced new teams increase companies the users and are scale scale, creation living them to and service workspace their financial taking manage in budgets, ROI users as leaders data In by and empower helped operations. storage provisioning we Microsoft continues With better user such to XX,XXX control over agency's was the the control automate federal for environment, AvePoint, in to costs and investment the and XXX agency resources management on up investments. as and digital in and Microsoft business licenses, Microsoft focus lifecycle templates. of business to to both standards avoid improve for adoption the lifecycle automation Canadian able its through freeing management mission the users repeatable at

integrity transformed of data modernize and policies, world coffee its global serving on preserving transform to continuity. platform their maintaining to legacy continue X proud ensuring Suite powerhouse and our from result terabytes digital our on to the privacy business and more recent will largest the million while the of as I'm help impact take data those operations. two than AvePoint, the Microsoft while efficiency win markets, add we assets was inventory both service around migrating in should across XXX data, value XXX by able tenants. to as save bank than confidence environments second Suite, their at a financial people its to more our move by one time swiftly smart speed will which companies environment data Microsoft Fidelity and system In and organization investment migrate restructure to gain accelerates more With to As the month premises their transforming businesses. and next, they a one team's bank minimizing migrating time of a organizations the the also the With XXX, of cases, move, revenue. be its Microsoft world Fidelity data these by in XX governance digital of consolidate

reducing its transform, environment. and relationship data quarter, the As visibility to industry centralized risk, Microsoft with AvePoint's global Using manufacturer global posture, organization environment in vendors. cost management XXX their too secure our to our data eliminate their the regulatory AvePoint we to policy across is In entire security every organizations and continue protected, Resiliency with the enhance expanded controls, third ensure the data a compliant. multiple to does its customers while protect so Suite to its helped enhance misconfiguration turn

workspace transforming technology the insider with leader data. unstructured Google efficient a example We AvePoint, prevent and customers helped ensuring their These our highest can breaches global combating secure And and force the environments, across data their organization also how of technology provides proven a enforce in attacks and multi-cloud operations manage few every now spend more level business resiliency sales how their are data ransomware manage threats, investment. our just and protection day. protect for businesses of

technology press formal a next weeks virtual deep A a few platform. with platform on will release more and the attend our details about hold be Additionally, dive AvePoint and to Confidence everyone week. encourage learn more and we'll issued in

turn with Let gears our channel. efforts me and switch the to

is our apply customer sizes. times while enormous offers businesses me around to many of say it this small the heard companies technology segment We available help You our that grade, potential. also world. have And is know enterprise offerings all to

channel continues inline ecosystem deepens also our but only our partners with our segment not and our of network accelerates expanding existing geographic channel relationships expansion with market partner SMB Our growth. The expansion.

efforts force Our the strong This relationships SMB growth will MSP smaller our our continue business, as by the cloud the market, us, choice, a whom is should which to potential ongoing addressable help updates for focused as to have are on provide to consolidation. these on multiplier continues as which we primarily MSPs businesses expand continue the with robust is be excited incredible viewed small extremely of environment market. We'll here solutions. for see about MSPs to of drive sustained we larger demand across amidst partner

encouraged still we're also financial contribution before strategic some to the While effort know has we this fully date, being by realized. runway

scaling to sales forces. and channel, global neutrality through the we example, our encourage expansion our For compensation implemented with

drag term the improvement sooner. measures will we bring to should and bring know these profitability it this to While serves significant that productivity on as medium us long over short to a non-GAAP sales and term efficiency, GAAP and

our trajectory. over last I to to growth just the mention wanted highlights the Jim, from call Before I turn underscoring several quarter continued

in establishment Singapore, hub is growing local will first to of solutions The research the which support worldwide act within for region. hub talent as network the BXB and SaaS our in major development APAC R&D our and foster a international demand

to at security the customers, level. will sovereignty, challenges, cloud strengthen supported strengthen With data community ensure the businesses regional and AvePoint Singapore, continue address a innovating resilience R&D multi-cloud growth local of are support modern vibrant for in global digital

opportunity our As broader critical expand more need in demand, as support re-center saw to we a local the APAC embracing growing are in well environment. to region in light to presence of digital as geopolitical our organizations the customer presence transformation,

we applications the blend insights creates to our also capabilities beyond data that vision office closed digital workplace. and often tyGraph, are of a rapidly to working acquisitions employee whose by presenting first for accelerate are organizations environment to in Bringing in I workplace a the allows success our platform enterprise, speak a a We who is pivot winning primary of expands are tyGraph’s sets measure two who based QX XXXX, number from award excited the level growing cloud engine analytics analytics engagement. and challenged dashboards. C delivering making simply to distributed have to leaders

contextualized decision allowing their experience them hybrid is organizational a variety to understand workplace employee goal optimizing analyzing a from By and the trends, preferences better of and insights, data deliver strategies. can accelerating pivot organization's sources, and Our organizations for to data process. adapt workspace making

large achieved security for posture. In both organizations a privacy is largest STAR provider The the that of which security This previously despite summary, the Essential, be second and them and transformation advance the acquisition of Building strong uncertain prioritization help AvePoint digital reflects abilities region's had announced ability FedRAMP based macro with enable access fourth and in our continued their breaches CSA AvePoint Korean environment, of strengthen and enhanced quarter. risk, solutions implementations accomplish authorized audit goals. Zero number We to certifications ISO software our in a mitigate customers Trust reduce agencies. compliance security to security another to components QX. solutions, federal will its of for our economy on can expansion South and

term ourselves enable I'll over discuss Jim execute to positioning mission our detail. results for to to to to shareholders. value continue collaborate our With against long that, in more turn while with organizations provide to financial greater We confidence,

Jim Caci

TJ, and you, everyone. Thank good afternoon,

our I please quarter third referring results I'll to be noted. that As metrics today, non-GAAP otherwise unless note review

constituted up quarter. revenue XX% of revenue XX% revenue last ended and Within QX $XX XX% revenues observations up third in to performance make million, quarter XX% I'd total compared like the to year-over-year revenue constant up constant XXXX, total of total this were up currency. revenues, SaaS year-over-year in million, revenue are XX, For total currency. two year. XX% QX There SaaS September our and $XX.X XX% was on

The first regarding FX. is

total based impacting quarter, bringing rates the total an operations international Japanese the the in XX% are FX revenue pound. does As while for business of more revenue QX I than and And our primarily discussed and the responsible our last included quarter, our on our guidance the the British prevailing euro, approximately range. the high revenues our million, US by to the of our revenues to end in continued time, at headwind further $X strengthen reported dollar guidance yen,

the XX% to Second, same base. are time, drive continues of we now strategy SaaS our fastest growing revenue At be our pleased successful up shift offerings, approximately sales toward efforts that makes revenue our as as our revenues, SaaS channel to stream, services a services to to of margin shift to driving improvement. percentage relative total to we as overall this Over expect QX. in our mix decline we more QX we partners, time, saw business continue our which expect revenue we

Looking at business geographically. the

revenue are America, overall especially as We with by performance across at revenue North XX%, business. our the we growth In driven in SaaS In revenue our of pleased XX%. growth regions, by revenues look SaaS X% EMEA, grew constant highlighted revenues grew constant APAC, grew a currency growth basis, XX% SaaS In XX%. on of XX%. growth basis, revenue on currency SaaS by driven of a

but We region. SaaS recognition revenue that continued nature term performance fluctuate, our and are there the growth pleased total longer may our contracts given of recognize the in with in APAC, revenue revenue our

year of up XX% quarter a total September XX, impact at $XXX.X $XXX.X FX. was for FX. adjusted up XXXX, the XX% ended for from year-over-year of Core and million, million, As growth XX% adjusted XX% up the representing ARR ARR ago, of

ARR year-over-year see SMB million, acquisition SMB $XX.X up we Lastly, strategy. continued the as customer from momentum quarter at our ended XX% to

account We end new continue stages strong cloud average over with from the to of $XX,XXX, year increase of At of XX% enterprise of the from core ARR was customers an customers existing many ARR We period. quarter customers, continued the prior with their engagement whom up see early year-over-year. the from in XX% of are and per QX, $XXX,XXX, ended transformation. commitments XXX

from ARR, Our adjusted rate in impact QX. quarter the was up retention FX, net and the dollar XXX% XXX% XXX% when core of based for for

XX% impact profit as statement. $XX.X well of gross in income XX.X% revenues QX QX our compared a margin Operating total margin year. higher of XXXX. million, the revenues over a decline was revenues last of product year million mix this is or totaled our $XX.X QX a as with The Gross or year for the compared services to for to $XX.X quarter slight ago. of lower of a margin back to of representing Turning gross versus percentage business, expenses representing million XX% XX.X% FX year result

income million our operating was non-GAAP of of QX which or X.X%, guidance. result, was a operating As $X.X margin an ahead

management We our expense in while emphasizing commitment growth robust continued to across invest initiatives, company. strategic balance to the thoughtfully

flow. Turning to quarter the We investments. cash in balance cash $XXX.X ended short the and sheet and term with million

free aggregate under QX, operations negative $XX.X we our QX. our like flow, program. was For used approximately approximately have which the I now repurchased nine approximately X million ended shares CapEx, months buyback September the $X.X shares provide of million, on at fourth cash while price stock turn to how and to thinking includes year XXXX, color XX, outlook the XXXX, continued some was September Cumulatively, in an repurchase In XX, $XX.X we and we're about cash full to would for million. million. through XXXX, quarter

For year total the $XX expect over $XX currency. of to fourth quarter, year we XX% million or growth, revenues adjusted for constant approximately XX% million

$X.X of operating million. expect to We income million non-GAAP $X.X

expected timing contribution operating certain recent acquisitions from those of QX QX. the as the of cost which well the reflects into ongoing from moved by as guidance Our expenses, acquisitions, offset

the As a million million XXXX, to loss a $XXX.X full $X.X XX% $XXX.X over total approximately XX% million million. year revenues we adjusted now for currency. growth, or result, $X.X operating for of constant expect to We year now non-GAAP expect year of

approximately or year XX% ARR XX% Lastly, $XXX for of growth, FX adjusted impact. to year total million we million expect continue $XXX to over

as the questions. world excited execute uneven guidance team which we as call to as year demand of for environment, ARR. and that, our ARR proud ahead. positioned despite the not up higher I'm the digital included to transformation. around recent quarter we summary, we for in our the an XXXX, In of help to headwinds, a efforts offset the prior be migration ARR organizations and full further Our manage close macro continue offerings, open FX remains largely continues are We're for in With market to from opportunities our strong by expansion customer acquisitions years the we'll increased well from expect as unchanged well Operator? are

Operator

from our Ader with question take And Blair. William Jason first Instructions] we [Operator will

Jason Ader

strategy Just sort to on just you point? and us could then see at components where give the wanted this an and go-to-market of that, really leaning you're your update of in if

TJ Jiang

strategy been APAC, is robust our America go-to-market across demand we all tuning Europe, year, as consistent well Yes, seeing have North as we're as regions.

Our very mid-market robustly. segment to grow continue

are of growing we As with channel. we year. market a further is accelerated go-to-market Enterprise not XX,XXX through to rate also for the reminder, at segment. motion plan yes, well, SMB because the that's X,XXX haven't we But and market mid along employee segment executing segment, changed our mid the just as is

Jason Ader

of working some that with? are you're the mid market Who channels

TJ Jiang

we So CSPs. from partners [indiscernible] to have channel major Direct global

we we MSPs, are the Regionally, SoftwareONE, those Micro, in also a So have we Ingram and already have also XXX,XXX TD ARR collectively large space. Synnex number of with which course, the SMB then global Data, have powerhouses. very of over Tech And Crayon. work

business model. So to through we'll partners channel more through drive comp continue our neutrality

more of for be will leverage that direct enterprise So channel able sellers our to scaling. even

Jason Ader

today one higher? but far And do final you're guys have to saturationally, get question just to know XXX on been you aiming NRR do that. pretty away you What you for is and and need cross gets then XXX? from sell what I to that from bundling, XXX

TJ Jiang

So we have some versus improvement in QX seen QX.

this that working through talked going hunter we separation farmer that. against We about to as are

customers to legacy demand in budget due for the increased near CapEx We services shifting expect to migration term from the as sunset seek continue OpEx. systems, current levels some to to

time. a the in tailwind retention over So also also the towards creates but the further side. as work recurring Sales the don't know, model farmer migration count we as improving into into reorg much hunter focus, not you it's NRR but

Jason Ader

about seller bundling? Anything cross

TJ Jiang

do that to today. continue we Again,

is the that are sub-level double we seen that a seen quite to we quite, really upsell projects actually It's what think have click -- is, I of So impressive. to we've percentages migration on some the be expect cross ARPU we with the and working some will improve. other enlarge tyGraph existing bundling But us also acquisitions that on IP yes, actually -- improvement customers. also sell and with help

Operator

with comes question from Fatima next Our Boolani Citi.

Fatima Boolani

of I have the bit little to unpack you SaaS the a I actually. your behind for business. some drivers acceleration two in Jim, wanted

please. can you are follow better if driving and variables that some as really of So a the here? velocity then well, isolate up

Jim Caci

the velocity, the significant the of seeing across we're some significant there, APAC, terms really In discussed seeing in demand remarks, really we're prepared that we're but in EMEA. I numbers board, seeing of we're growth particularly seeing growth

So kind and America also -- of North as in we're well.

So we're demand the seeing real high across board.

particular our in think they're to to as resonating offerings think people how out and this going figure look and continues, demand money consolidate, be to to I save and the they increase. continues try and seem transformation I

of So board APAC we're growth. it regionally being largest the seeing really across again, with driver percentage a terms really in the

Fatima Boolani

And structure, sort hedges sort of the order if just what And profitability P&L migration of lenses headwinds and for could expansion. exchange. with and impact, But just sort M&A? of in those operating the magnitude if you sizing I'm that's for back maybe it's more management cost help me. some Just stack impacting for a if if respect what visible just in place, it's it to improvement? so curious visible of of if it's the got you ability unpack if we for moving the now the So can isolate down of foreign to us, FX natural of rank can you've the holding right more us drive on profitability number you OpEx there your from

Jim Caci

points there, there a lot good. in just really there, a so that's maybe because So couple was

are first cost on So managing going statement driving now I and our think, and forward. a maybe be we focused structure profitability that might improving very overall

expense we're I QX operating quarters, year-over-year the think XX% think thing look guiding if is was and about for So you growth two but rate growth the two year-over-year. one for first to first XX% at we XX% grew QX’s growth our quarters, only in

are we that expectation. doing managing things think I we're So couple that A there.

little a is For you a natural us, there. of out, hedge impact as called bit FX an

slowing flat has terms some positive that The second our also recently not we of is a structure implemented relatively accelerating impact in and freeze like cost QX announced in of in it complete then hiring have the a past. on hiring will we keeping

is just about also in too just doing space which and in we're well office headcount, it's those it's and structures thing terms beyond the other of all things. really The business, our not go about people rents all cost

all I seeing of those others, we're and think what those drive can costs we like many taking down. look at costs to do a

costs, that at well. again, those focus them managing So then significantly and the looking again, driving moving But increasing as looking our we're profitability at forward. is

Operator

Derrick Company. comes Next from Wood & of Cowen question

Derrick Wood

the and demand start and TJ, to And governance, hear from side, a about wanted I’ll much the kind that larger has hyperscalers changed mix that's ask product little got with revenue if particularly the obviously, on to some migration. from just a shift core workload on-prem trends of bit to did it. across compliance different less cloud. pillars, component migration We seeing they're migration that

Just standpoint. that seeing a curious any if macro from you're of

TJ Jiang

From a It's to see strong cloud. demand migration. a continue there's to to perspective, cloud just lot for of not we cloud, on-prem macro

we prepared tenant in consolidation. So tenant remarks customer that did to cited a the

investment deal with bank on a cloud. very large legacy very course, work a Of global we large to with also

us the said is business, It think that I migration for we've go been see relationships. be the clearly, last So our XX mix for ever the into There's going resilience something years. steady I always that, doing perspective get to has of a don't to are spear C-suites. it away. in been tip it's not our from the of of Having It's our something customer we bigger down. part that. -- mix

the course each as SMB all is service is and easy very the get also mid-market, management. governance, suites, when mid-market enterprise control security which And and around segment, well sophistication then it’s then say enterprise preferences. they straightforward companies different SaaS are are focus data on software to successful major large where. for migration which governance And in staff plus there segments, into as who the So we access the And when, not across do. you in would what, has SMB that concerns. backup the from as of and interestingly, I to

So and very provider. resilient we how that's spectrum, robust being have that staying we platform entire a are

Derrick Wood

that TJ going sooner. bring compensation bit more that more engagement you and to that? mentioned help more help And and to force, was profitability click Could love around you would implementing incentivizing or that'll to a neutrality little double hear the channel of sales on with Is leverage just kind about that.

TJ Jiang

That's exactly right.

So factor we single important allow see our a a have business, indirect channel as more most to X us effectively to scale lot sellers.

leaning it. are we So into further

control neutrality transacting deals, that, deals, the comp where direct partner. enterprise means even if just So want our include to a who do sell have more used into especially to to them been encourage we motion partners it's for they far sellers have for over

let by points we So -- partner of speak. sort deterrent don't for But give any would sellers. we they so, be from doing paper, would to so to a that carrying couple our basis the

from comped whether be the fulfillment, compensation run the deal they the not. a or will partner quota they So through perspective, same do payment commission

us to the type going. allow so get pump, prime behavior this of to that change So speak,

relationship opportunity used they're to partners time, in over they when And getting deals. build will partners also then So into to bring that us.

yes, all of behavior a we that are channel use Ultimately, allow paying to change and in is to comp basis sellers sellers foster long to the do to do But all are compensation healthy the even partners. much to three extra scaling short on medium in this points giving effectively So numbers through we sell segments get time, actually term, channel. bigger by paying our to the across to way scale. it’ll neutrality, to

Derrick Wood

And could one if one Jim. I for quick

XX% it guiding FX, the on and and a in constant reported delta delta you you're between QX, X% currency QX. had in a Just like looks for

that why much? so curious changes Just

Jim Caci

Well, for revenue mix little is bit from. of where the of coming it's a us, that

roughly QX. are think comfortable it we despite we guidance. X% so Again, guiding the up kind And that's think in we probably XX% think We being I of will again, we'll for X%. we're that -- with end where

Operator

[Operator now Markets. Chokshi We'll with hear Capital Instructions] Northland from Nehal

Nehal Chokshi

strong Thank you, an me to and ARR the did congrats basis. though, from ARR? tyGraph there well, clicking on the contribute Double much [adjusted] on even as how results

Jim Caci

So we about actually the QX did of acquisitions million contributed in ARR. $X that

Nehal Chokshi

in And do acquisition announced contribute? there you expect that that to was Essential. another I this early you How quarter, think much

Jim Caci

The $X combined. million is both

Nehal Chokshi

something because which ARR a ending than million, Correct? XXX.X little tyGraph $X bit your $X the million it's is closed then quarter, XXX.X Essential in that be less would is included tyGraph, September But not. from but

Jim Caci

No, as well. Essential’s included

again, ARR So little very is there from Essential. coming

up we not a So lot there. are picking

So using the the million total. as just essentially, we are $X

Nehal Chokshi

it, Essential resist… couldn’t is Got same. the Essentially,

TJ Jiang

IP accelerate expansion product by into is for get So tyGraph us to is a expansion product expansion. that Essential there. South a and market us allow for play Korea our

So different purpose. it's for a very

Nehal Chokshi

thinking rate about ARR. If why out baseline for growth good a we exit be your then your on well as Is not, And that how calendar basis not? calendar of as coming should 'XX 'XX? an overall revenue is solid as

Jim Caci

provided guidance 'XX. haven't for strong a we QX. yet any So with ended We

QX. We right is are at now focus point, this our expecting strong a QX. through But getting obviously

well. We are obviously on focused profitability as

and focus more more we improved significantly effective is So really how our do efficient, deliver, become profitability. now

So XXXX Obviously, at haven't we focus. be looking that's up of kind we'll put coming the out anything guidance for right but now, there. here,

on expectations. a that's we're and So and expecting I the would would that, improving hold off say can that QX again, focused we strong focus. primary profitability where on those I just we're

Nehal Chokshi

-- Do the growth in theory future of profitability periods? improved the you ascribe that profitability expense does at come to

Jim Caci

they serious through all look seen off. drive seen to to that need know past working what that one don't Well, you've right now. -- in expense right, be we're I growth, that's I What the though we've to had definitely think, drive significant what as is that that through we've growth in doing both now we to working as in that. manage have we an significant growth and revenue improvement want But see well. we're to we're to that profitability update terms well. is see now we'll and of And want on revenue trying

Operator

next with ISI. Evercore from Kirk our come will And question Materne

Chirag Ved

is for Kirk. This on Ved Chirag

and you wanted maybe customer to to with start opportunities? star potential for then for maybe ask an of any goal the to contract serves customer expansion, TJ. upsell what your and initial highlight from one, as and whether First north cycle engagement a or could expansion signing, examples I

TJ Jiang

the with for it's integrating trivial systems redundant to HP on-prem, get our customers ECM a helping or design cloud of way data, maintaining cloud, Confidence to think to process legacy way, actually go journey tech, -- of customers, like to classify Teams. Slack to our or data I us migrating lot data or into in cloud a cloud and integrate different and out natural the Documentum fidelity a and cloud and we Office of TRIM follow that of systems, the platform like cloud the is rid legacy start analytics So to right? whether of to XXX going their cloud,

the that's once cloud then ransomware about of in course, data business And we're security recovery. talking and phase. first continuity, attack and So detection

over service. management. manner using chats to chase and talk ultimately backup a to that's policy and see in to then to do delegate private So what we channels, timely time sunset record administration license about who's And and insight management, able governance to be

care a into productivity, topical We're about now handle conversation with from situation able security ecosystem. super is we're data to for a our or excited resetting tyGraph CEOs all their devices work customer with the out now long and It's governance, storage even data brand but only jettison except hybrid addressing of regulatory which a term very employee physical completely within critical engagement. And great not perspective. onto cloud, course also about. it very, now So mission for tapes expansion, expand around

a sources So engagement, and we're scenarios. great silos. data collaboration and across productivity across and measure actually sentiment boundaries, lake to the different data now across aggregating even workloads do We actually organizations, engine multiple measure work across hybrid analysis have from to able data

the to different that's So us cross and large and customer phases expansion, sell examples upsell doing for just do and have small customer and examples and that. we

Chirag Ved

And Jim. maybe for one just

what operating speaking, that [greater] You how expect sort of Maybe magnitude? quickly would talked turn about on broadly a and you any by as drive in of this percentage revenue, leverage. and timeline you do declining over time to that services materialize just have

Jim Caci

the latter with start we'll maybe Well, first.

that of been business. winds about up services has target think I our being our XX%

easier So I answer. think that's piece to the

from from what XX% XX%. to think to we saw QX, QX went we I

continue going So but But we're to dollars the a they see it's get And do continue when you look revenue services business. obviously I at margin percentage I to as years of do take to P&L, a then decline. lowest our us increasing, to couple think think obviously it's going to the absolute there.

that will it declines, help overall as obviously margins. so improve the And

Operator

at And no queued time. we further have this questions

additional So over TJ things or remarks. for back to closing any I'll turn

TJ Jiang

also in us leap in a In the continuing have for today, position wish for make again and season. super close for of growth so the of Thanks recently commemorated term profitability. inspiring appreciation want much partner future us about increasing of a The enthusiasm customers just wonderful adoption Singapore. South excited what a the Thank privilege spent digital heard to think for about holds global one strong from we anniversary we're the much in myself in you. to year event was of transformation. Essential people, how us, conclude and channel cloud talented stories is work ahead work so saw truly potential year, shareholders, investment I rapid I we how a holiday everyone We we our as team and and Korea expand Thank long with AvePoint. program technologies. to you. excited AvePoint the a customers, much and how to joining in have partners and quantum to saying region, opportunity future by short, and it we which colleagues, with and while to I durable meeting firsthand I seeing the is opportunity front to want am the the as partners I time many and

Operator

conclude does everyone And Once that conference. for today's again, thanks us. joining

may You disconnect. now

AvePoint (AVPT) 11 Nov 222022 Q3 Earnings call transcript