AvePoint, Inc.

What they do

AvePoint sells the AvePoint Confidence Platform, a Platform-as-a-Service product spanning three suites: Control (data governance, policy enforcement, SaaS expense management), Resilience (Backup-as-a-Service, ransomware recovery, lifecycle management), and Modernization (converting legacy systems into AI-ready SaaS experiences). The platform connects to hyperscalers and enterprise apps including Microsoft, Salesforce, Google, AWS, Box, Dropbox, Docusign, Confluence, GitHub, Jira, Okta, Bitbucket, Smartsheet and Monday.com. It sells primarily as recurring subscription software, with bundling now organized into 'good-better-best' tiers beginning with an Essentials bundle. The company is headquartered in Jersey City, NJ and trades on Nasdaq under AVPT.

Revenue drivers

• SaaS revenue — SaaS revenue was $319.2 million in 2025, up 38% year-over-year and 76% of total revenue, versus 70% in 2024. In Q2 2026 SaaS revenue was $98.5 million, up 27% year-over-year (26% constant currency). This is the core growth engine and the majority of the business.
• Control Suite — Automates data governance, enforces policies, optimizes SaaS investments, and provides insight into access, risk and entitlements across collaboration platforms. It anchors the entry-level Essentials bundle alongside Resilience capabilities.
• Resilience Suite — Delivers Backup-as-a-Service, ransomware recovery, lifecycle management and classification-driven protection for business continuity and compliance. It is paired with Control in current tiered bundles.
• Modernization Suite — Modernizes legacy systems into AI-ready, SaaS-based experiences to support employee engagement and digital transformation. It is the third suite in the platform but is not described as part of the current bundles.

Recent performance

Q2 2026 total revenue was $124.5 million, up 22% year-over-year (21% constant currency), with SaaS revenue of $98.5 million up 27%. GAAP gross margin was 73.1% versus 74.0% a year earlier, and GAAP operating income was $10.2 million (8.2% margin) versus $7.1 million. Non-GAAP operating margin narrowed to 16.3% from 18.4%. Total ARR reached $465.1 million, up 27% year-over-year and 24% FX-adjusted, with dollar-based gross retention of 89% and net retention of 111% reported. For the six months ended June 30, 2026, operating cash flow was $40.2 million, up from $20.8 million in the prior-year period.

Strategy

AvePoint is positioning itself as the 'unifying Trust Layer for AI,' extending governance, security, recovery and backup controls to agentic AI, new enterprise applications and multicloud infrastructure. It is packaging suite capabilities into tiered 'good-better-best' bundles, currently focused on Control and Resilience, to simplify selling and create a defined expansion path. Management says it is raising full-year ARR guidance while also increasing second-half expense plans to pursue the market opportunity. The company continues to publish its annual State of AI report and market the platform around trust gaps in enterprise AI adoption.

Risks

• Margin compression — GAAP gross margin fell to 73.1% in Q2 2026 from 74.0% a year earlier and non-GAAP operating margin fell to 16.3% from 18.4%, while management plans higher second-half spending.
• Foreign exchange headwinds — Management said updated guidance reflects an expected FX headwind across all metrics that more than offsets the ARR raise and Q2 revenue and non-GAAP operating income outperformance.
• Customer retention — Dollar-based gross retention was 89% in Q2 2026, meaning roughly 11% of existing customer revenue churns or contracts annually, which requires continued new sales to sustain growth.
• Platform dependency — The business is built around integrations with third-party ecosystems such as Microsoft, Salesforce, Google and AWS, so changes to those vendors' APIs, bundling or competitive offerings could affect demand.

Outlook

For Q3 2026, management guided total revenue of $128.2 million to $130.2 million, about 18% year-over-year growth at the midpoint (19% constant currency), and non-GAAP operating income of $21.0 million to $22.0 million. For full-year 2026, the company guided total ARR of $522.1 million to $528.1 million (26% growth at the midpoint, including FX-adjusted) and total revenue of $508.5 million to $512.5 million (22% growth at the midpoint, 21% constant currency). Full-year non-GAAP operating income guidance is $86.4 million to an amount truncated in the excerpt.