AvePoint Reports 25% Revenue Growth to $93.1 Million in Q1 2025

AvePoint, Inc. reported a significant increase in its financial performance for the first quarter of 2025, with total revenue reaching $93.1 million, a 25% increase compared to $74.5 million in the same period last year. The company's Software as a Service (SaaS) revenue was a key driver, growing 34% year-over-year to $68.9 million, which now constitutes 74% of total revenue, up from 69% in the prior year. The increase in revenue was attributed to strong customer demand for SaaS solutions, although maintenance revenue declined as the company continues to transition away from perpetual licenses.

In terms of profitability, AvePoint reported a net income of $3.6 million for the quarter, a turnaround from a net loss of $2.0 million in the same period last year. This resulted in a basic net income per share of $0.02, compared to a loss of $0.01 per share in the previous year. The company’s gross profit also increased by 27.9% to $69.2 million, leading to a gross margin of 74.3%, up from 72.6% in the prior year. Operating expenses rose to $65.9 million, primarily driven by increased sales and marketing costs, which were up 15.3% to $34.5 million.

Strategically, AvePoint completed the acquisition of Ydentic Holding B.V. on January 29, 2025, for approximately $20.4 million. This acquisition is expected to enhance AvePoint's SaaS offerings, particularly for managed service providers (MSPs). Additionally, the company launched the next generation of AvePoint Elements, aimed at automating insights and enhancing data security for MSPs. The company also expanded its product offerings with new data security solutions for Google, further broadening its multi-cloud protection capabilities.

Operationally, AvePoint reported a total annual recurring revenue (ARR) of $345.5 million as of March 31, 2025, reflecting a 26% increase year-over-year. The company’s customer base continues to grow, with significant revenue contributions from North America, EMEA, and APAC regions. North America revenue increased by 21.9% to $36.5 million, while EMEA and APAC revenues grew by 29.3% and 24.3%, respectively. The company’s employee headcount has also increased, supporting its growth initiatives and product development efforts.

Looking ahead, AvePoint remains optimistic about its growth trajectory, driven by the increasing demand for its cloud-native data management solutions. The company anticipates continued revenue growth, particularly in its SaaS segment, and plans to leverage its recent acquisitions and product innovations to capture a larger market share. AvePoint's management believes that its existing cash reserves, along with cash flows from operations and available credit facilities, will be sufficient to meet its working capital needs and support future growth initiatives.