AvePoint (NASDAQ:AVPT) Posts Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• AvePoint beat quarterly expectations, reporting $0.12 in EPS versus the $0.08 estimate and $124.5 million in revenue versus $121.38 million expected. Revenue rose 22% year over year, while ARR increased 27% to $465.1 million.
• Demand for the company’s AgentPulse AI-governance product is gaining traction, with control-package customers roughly doubling sequentially and related deals averaging two to three times larger. Enterprise and partner momentum also remained strong.
• AvePoint modestly raised its full-year ARR outlook but cautioned that increased technology and go-to-market spending, foreign-exchange headwinds, and 110% net retention could pressure near-term profitability. Shares fell 4.6% after the results, though analysts maintained a “Moderate Buy” consensus with a $16.44 target price.

AvePoint (NASDAQ:AVPT - Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.12 EPS for the quarter, topping the consensus estimate of $0.08 by $0.04, FiscalAI reports. The firm had revenue of $124.50 million for the quarter, compared to analyst estimates of $121.38 million. AvePoint had a net margin of 10.55% and a return on equity of 10.52%.

Here are the key takeaways from AvePoint's conference call:

• Q2 results exceeded guidance, with revenue of $124.5 million, up 22% year over year, ARR of $465.1 million, up 27%, and record net new ARR of $29.9 million. SaaS revenue grew 27%, while GAAP operating profitability continued for the eighth consecutive quarter.
• AgentPulse is generating strong customer interest as enterprises seek to control AI-agent sprawl, security risks, compliance, and costs. Control package customers roughly doubled sequentially, and AgentPulse-related deals were reportedly two to three times larger on average, although much of the pipeline has not yet converted to bookings.
• Enterprise expansion and channel momentum remained strong, with 911 customers above $100,000 of ARR, larger customer cohorts growing at least 30%, and 59% of ARR coming through partners. Management also cited a seven-figure bank upsell and record additions of SMB and mid-market customers.
• AvePoint raised its full-year ARR outlook by $1 million and expects constant-currency revenue growth of 21% at the midpoint, but increased technology and go-to-market spending to pursue the opportunity. These investments are expected to weigh modestly on near-term operating income while supporting longer-term growth and efficiency.
• Foreign-exchange headwinds more than offset the ARR increase in the reported outlook, including a $5.6 million incremental full-year revenue impact. Net retention remained at 110%, below the company’s long-term 115% target, and services-related gross-margin pressure continued.

AvePoint Trading Down 4.6%

NASDAQ:AVPT traded down $0.61 during midday trading on Thursday, reaching $12.79. The company had a trading volume of 3,526,183 shares, compared to its average volume of 2,132,393. The firm has a market capitalization of $2.71 billion, a price-to-earnings ratio of 60.90 and a beta of 1.16. The stock's fifty day simple moving average is $11.78 and its 200-day simple moving average is $10.93. AvePoint has a 12-month low of $8.84 and a 12-month high of $18.15.

Analyst Ratings Changes

A number of analysts have issued reports on the company. Wall Street Zen lowered AvePoint from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Weiss Ratings restated a "hold (c-)" rating on shares of AvePoint in a research report on Wednesday, June 24th. DA Davidson reaffirmed a "buy" rating and issued a $18.00 price objective on shares of AvePoint in a research note on Monday, July 6th. The Goldman Sachs Group reiterated a "neutral" rating and issued a $14.00 price objective on shares of AvePoint in a report on Wednesday, May 13th. Finally, Zacks Research raised AvePoint from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 10th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $16.44.

Insider Buying and Selling

In other AvePoint news, insider Brian Michael Brown sold 5,176 shares of the company's stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $13.06, for a total transaction of $67,598.56. Following the sale, the insider owned 809,664 shares in the company, valued at $10,574,211.84. This represents a 0.64% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 22.66% of the stock is owned by insiders.

Hedge Funds Weigh In On AvePoint

A number of institutional investors and hedge funds have recently made changes to their positions in AVPT. Parsifal Capital Management LP raised its holdings in AvePoint by 61.2% in the third quarter. Parsifal Capital Management LP now owns 8,522,740 shares of the company's stock valued at $127,926,000 after acquiring an additional 3,235,384 shares in the last quarter. Morgan Stanley grew its holdings in AvePoint by 372.6% during the 4th quarter. Morgan Stanley now owns 7,871,282 shares of the company's stock worth $109,332,000 after acquiring an additional 6,205,829 shares in the last quarter. Geode Capital Management LLC grew its holdings in AvePoint by 6.9% during the 4th quarter. Geode Capital Management LLC now owns 3,643,473 shares of the company's stock worth $50,614,000 after acquiring an additional 234,080 shares in the last quarter. State Street Corp increased its position in shares of AvePoint by 9.8% in the 4th quarter. State Street Corp now owns 3,382,915 shares of the company's stock valued at $46,989,000 after purchasing an additional 300,579 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its position in shares of AvePoint by 27.0% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,597,660 shares of the company's stock valued at $36,082,000 after purchasing an additional 552,439 shares during the last quarter. 44.49% of the stock is owned by institutional investors and hedge funds.

About AvePoint

AvePoint, Inc NASDAQ: AVPT is a leading software provider specializing in data management, governance, and compliance solutions for Microsoft 365 and related cloud platforms. Founded in 2001 and headquartered in Jersey City, New Jersey, the company offers a comprehensive suite of cloud-based and on-premises tools designed to help organizations migrate, manage, and protect their collaboration data. AvePoint's flagship Cloud Platform delivers backup, governance, reporting, and migration services for SharePoint, Teams, Exchange, OneDrive, and Salesforce environments.

With a customer base spanning thousands of organizations across more than 100 countries, AvePoint serves enterprises, government agencies, and educational institutions seeking to ensure data security, regulatory compliance, and operational resilience.

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