AvePoint (NASDAQ:AVPT) Releases Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Key Points

• AvePoint reported quarterly EPS of $0.08, $0.01 below consensus, while revenue of $131.1 million exceeded estimates and grew 19% year over year.
• Growth remained strong: record net new ARR reached $30 million, up 34% year over year, and AI governance demand increased, with AgentPulse customers growing more than 50% sequentially.
• Profitability faced pressure from ongoing AI investment: gross margin fell to 72.8% from 75.1% a year earlier, though operating margin expanded and the company generated more than $31 million in operating cash flow.

AvePoint (NASDAQ:AVPT - Get Free Report) posted its earnings results on Thursday. The company reported $0.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.01), FiscalAI reports. AvePoint had a return on equity of 15.97% and a net margin of 15.33%. The business had revenue of $131.10 million during the quarter, compared to the consensus estimate of $129.39 million.

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

• AvePoint reported record net new ARR of $30 million, up 34% year over year, with FX-adjusted ARR growth accelerating to 25%. Revenue was $131.1 million, up 20% on a constant-currency basis, and gross retention reached the company’s 90% target.
• Demand for AI governance is gaining traction: AgentPulse customers grew more than 50% sequentially and the number of agents it manages more than doubled. AvePoint said control bundles—which include AgentPulse—accounted for a rising share of new ARR, while the standalone AgentPulse offering is generating a strong pipeline.
• Management raised its full-year ARR outlook by $1 million at the midpoint to $524.8 million–$528.8 million, representing 26% growth. It also expects fourth-quarter revenue of $138.4 million–$140.4 million.
• Profitability and cash generation remained solid: GAAP operating margin expanded more than 130 basis points year over year to 8.7%, and operating cash flow was over $31 million in Q3. The company repurchased about $31 million of shares during the quarter and said it has approximately $89 million remaining in its buyback program.
• Investment in AI Trust capabilities is weighing on near-term margins: operating expenses rose to 56% of revenue from 53% a year ago, and gross margin fell to 72.8% from 75.1%, mainly due to lower services margins. Management said Q4 operating margin should improve sequentially but remain below the prior-year level as investment continues.

AvePoint Trading Down 2.8%

Shares of AVPT stock traded down $0.48 during midday trading on Thursday, reaching $16.42. 3,328,919 shares of the stock were exchanged, compared to its average volume of 3,880,960. AvePoint has a 1 year low of $8.84 and a 1 year high of $17.52. The company's 50 day moving average is $14.50 and its two-hundred day moving average is $11.98. The firm has a market cap of $3.47 billion, a PE ratio of 51.31 and a beta of 1.13.

AvePoint News Summary

Here are the key news stories impacting AvePoint this week:

• Positive Sentiment: Third-quarter revenue was $131.1 million, up 19% year over year and above the $129.39 million consensus. SaaS revenue grew 26% to $105.5 million, while annual recurring revenue rose 27% to $495.1 million. AvePoint Announces Third Quarter 2026 Financial Results
• Positive Sentiment: AvePoint forecast 2026 revenue of $511.3 million to $513.3 million, slightly above FactSet’s $511 million estimate. AvePoint 2026 Revenue Outlook
• Positive Sentiment: Zacks reported quarterly earnings of $0.12 per share, ahead of its $0.08 consensus estimate and up from $0.10 a year earlier. AvePoint Q3 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: AvePoint appointed Ali Rohani as Chief Strategy and Customer Officer, adding a new executive focused on strategy and customer relationships. AvePoint Appoints Ali Rohani
• Negative Sentiment: EPS reports were inconsistent: MarketBeat said AvePoint earned $0.08 per share, missing its $0.09 estimate, while Zacks reported $0.12 and a beat. The conflicting figures could create uncertainty around the earnings headline. MarketBeat AvePoint Earnings Coverage

Insider Activity

In other news, insider Brian Brown sold 72,606 shares of the firm's stock in a transaction that occurred on Tuesday, October 20th. The stock was sold at an average price of $15.26, for a total value of $1,107,967.56. Following the completion of the transaction, the insider owned 259,604 shares in the company, valued at $3,961,557.04. This trade represents a 21.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 230,000 shares of company stock valued at $3,430,412. 22.66% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Scotiabank increased their price objective on AvePoint from $12.00 to $15.00 and gave the stock a "sector outperform" rating in a report on Friday, August 7th. BMO Capital Markets initiated coverage on AvePoint in a research note on Tuesday, October 6th. They set an "outperform" rating and a $17.00 target price on the stock. Zacks Research downgraded AvePoint from a "strong-buy" rating to a "hold" rating in a report on Monday, August 10th. TD Cowen raised their price target on AvePoint from $15.00 to $18.00 and gave the stock a "buy" rating in a research note on Tuesday. Finally, Jefferies Financial Group lifted their price target on shares of AvePoint from $16.00 to $20.00 and gave the company a "buy" rating in a report on Sunday, October 25th. Ten analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $16.82.

AvePoint Company Profile

AvePoint, Inc NASDAQ: AVPT is a data management and governance software company that helps organizations protect, manage and modernize information across cloud, hybrid and on-premises environments. Its solutions are designed primarily for collaboration and productivity platforms, including Microsoft 365, SharePoint, Dynamics 365 and Salesforce.

The company's product portfolio includes cloud backup and recovery, data migration, governance, security, compliance and administration tools.

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