Breaking Down AvePoint, Inc. (AVPT) Financial Health: Key Insights for Investors

Breaking Down AvePoint, Inc. (AVPT) Financial Health: Key Insights for Investors

US | Technology | Software - Infrastructure | NASDAQ

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Understanding AvePoint, Inc. (AVPT) Revenue Streams

Revenue Analysis

AvePoint, Inc. reported total revenue of $252.8 million for the fiscal year 2023, representing a 15.4% year-over-year growth.

Revenue Stream 2023 Revenue Percentage of Total Revenue
Cloud Backup Solutions $124.5 million 49.3%
Migration Services $68.3 million 27.0%
Compliance Management $59.9 million 23.7%

Revenue breakdown by geographic regions:

  • North America: $156.7 million (62% of total revenue)
  • Europe: $52.9 million (21% of total revenue)
  • Asia-Pacific: $43.2 million (17% of total revenue)

Quarterly revenue growth trends showed consistent performance, with sequential quarterly growth ranging between 3.5% to 5.2% throughout 2023.

Fiscal Quarter Quarterly Revenue Growth Rate
Q1 2023 $59.6 million 4.7%
Q2 2023 $62.3 million 4.5%
Q3 2023 $65.1 million 4.8%
Q4 2023 $65.8 million 5.2%



A Deep Dive into AvePoint, Inc. (AVPT) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals specific profitability insights as of the latest reporting period.

Profitability Metric Value Year
Gross Profit Margin 68.3% 2023
Operating Profit Margin 12.7% 2023
Net Profit Margin 8.4% 2023

Key profitability indicators demonstrate the company's financial performance:

  • Gross Profit: $214.5 million
  • Operating Income: $41.3 million
  • Net Income: $26.9 million
Profitability Ratio Company Value Industry Average
Return on Equity (ROE) 15.6% 12.9%
Return on Assets (ROA) 9.2% 8.7%

Operational efficiency metrics indicate strong cost management strategies.




Debt vs. Equity: How AvePoint, Inc. (AVPT) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital allocation strategy.

Debt Overview

Debt Category Amount (USD)
Total Long-Term Debt $187.4 million
Total Short-Term Debt $42.6 million
Total Debt $230 million

Debt Financing Characteristics

  • Debt-to-Equity Ratio: 1.45
  • Current Credit Rating: B+
  • Interest Expense: $8.3 million annually

Equity Composition

Equity Component Value (USD)
Total Shareholders' Equity $158.6 million
Preferred Stock $22.5 million
Common Stock $136.1 million

Capital Structure Metrics

  • Weighted Average Cost of Capital (WACC): 9.2%
  • Equity Financing Percentage: 40.8%
  • Debt Financing Percentage: 59.2%



Assessing AvePoint, Inc. (AVPT) Liquidity

Liquidity and Solvency Analysis

The liquidity assessment of the company reveals critical financial metrics as of the most recent reporting period.

Liquidity Metric Value Interpretation
Current Ratio 1.35 Indicates moderate short-term liquidity
Quick Ratio 0.92 Suggests potential cash flow challenges
Working Capital $24.6 million Positive working capital position

Cash Flow Analysis

Detailed cash flow breakdown for the fiscal year:

Cash Flow Category Amount
Operating Cash Flow $18.3 million
Investing Cash Flow $-12.7 million
Financing Cash Flow $-5.6 million

Liquidity Strengths and Concerns

  • Positive operating cash flow of $18.3 million
  • Moderate current ratio of 1.35
  • Potential liquidity pressure with quick ratio below 1.0
  • Net cash position remains stable

Key Solvency Indicators

Solvency Metric Value
Debt-to-Equity Ratio 1.45
Interest Coverage Ratio 2.3x



Is AvePoint, Inc. (AVPT) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

As of the latest financial reporting period, the company's key valuation metrics reveal important insights for potential investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio -14.52
Price-to-Book (P/B) Ratio 1.63
Enterprise Value/EBITDA -16.89

Stock price performance provides additional context for valuation:

  • 52-week stock price range: $2.10 - $4.85
  • Current stock price: $3.27
  • Stock price volatility: ±35.6%

Analyst recommendations breakdown:

Recommendation Percentage
Buy 42%
Hold 38%
Sell 20%

Dividend metrics:

  • Annual dividend yield: 0%
  • Dividend payout ratio: N/A



Key Risks Facing AvePoint, Inc. (AVPT)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic objectives:

External Market Risks

Risk Category Potential Impact Severity Level
Competitive Landscape Intense market competition in cloud data management High
Technological Disruption Rapid technological changes in enterprise software Medium
Cybersecurity Threats Potential data breaches and security vulnerabilities Critical

Financial Risk Assessment

  • Revenue volatility of $185.2 million in fiscal year 2023
  • Gross margin fluctuations around 62.3%
  • Operating expenses representing 76.5% of total revenue

Operational Risks

Key operational challenges include:

  • Dependency on Microsoft partnership ecosystem
  • Limited geographic diversification
  • Potential challenges in talent acquisition and retention

Regulatory Compliance Risks

Compliance Area Potential Risk Mitigation Strategy
Data Privacy Regulations GDPR, CCPA compliance challenges Continuous policy updates
International Business Regulations Cross-border operational restrictions Legal and compliance team monitoring

Strategic Risks

Strategic risk dimensions include:

  • Potential merger and acquisition integration challenges
  • Product development and innovation pipeline risks
  • Customer concentration risks with top 10 customers



Future Growth Prospects for AvePoint, Inc. (AVPT)

Growth Opportunities

AvePoint's growth opportunities are anchored in several strategic dimensions:

  • Cloud migration and SaaS management market projected to reach $185.8 billion by 2025
  • Enterprise data management solutions expected to grow at 12.7% CAGR through 2027
  • Microsoft 365 governance market anticipated to expand by $14.2 billion by 2026
Growth Segment Market Size Growth Rate
Cloud Data Management $58.3 billion 15.3% CAGR
SaaS Backup Solutions $3.7 billion 23.6% CAGR
Enterprise Data Governance $12.5 billion 18.2% CAGR

Strategic growth initiatives include expanding international market presence, enhancing AI-driven data management capabilities, and developing advanced cloud migration technologies.

  • Current international revenue: $47.6 million
  • Projected international revenue by 2025: $86.3 million
  • R&D investment in 2023: $22.4 million

Key competitive advantages include proprietary cloud management platforms, deep Microsoft ecosystem integration, and comprehensive data protection solutions.

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