Strong Top-Line Growth
Total revenues of $117.2M in Q1, up 26% year-over-year (20% on a constant currency basis) and above the high end of guidance.
AvePoint
· AVPT
May 7th, 2026
Summary
- Earnings Call Date:
- 2026-05-07
- Change Since:
- +0.78%
- Next Earnings Date:
- 2026-08-06
Earnings Call Sentiment
PositiveThe call conveyed strong commercial and financial momentum: robust SaaS growth, recurring revenue expansion, ARR acceleration, improved profitability, healthy cash generation and purposeful product investments (AI trust, agent governance, multi‑SaaS protection). Management also disclosed clear near-term headwinds — a SaaS mix effect that reduces upfront revenue, FX pressure, lower-margin services impacting gross margin, and retention impacts from migration offerings. Overall, the positives around growth, margin expansion, cash flow and product-market fit substantially outweigh the manageable near-term challenges.
Company Guidance
AvePoint updated its guidance raising full‑year ARR to $523.4M–$529.4M (≈26% growth at the midpoint; includes a $0.5M raise offset by a $2.2M FX headwind; FX‑adjusted growth still 26%), and setting full‑year revenue at $509.4M–$515.4M (≈22% growth at the midpoint; includes the Q1 $1.8M beat offset by a $2.9M FX headwind; constant‑currency growth ≈20% at the midpoint). For Q2 management guided revenues of $120.3M–$122.3M (≈19% growth at the midpoint; ~18% on a constant‑currency basis) and non‑GAAP operating income of $18.7M–$19.7M, while full‑year non‑GAAP operating income was narrowed to $91.5M–$94.5M (includes the $0.7M Q1 beat offset by a $2.2M FX headwind); the midpoint Rule of 40 for the year is 44%.
SaaS Momentum and Mix Shift
SaaS revenues of $93.4M, up 35% year-over-year (29% constant currency), representing 80% of total revenue and exceeding mix expectations.
Recurring Revenue and ARR Expansion
Total ARR of $435.2M, up 26% year-over-year (23% FX-adjusted). Net new ARR was $18.4M in Q1, up 17% year-over-year (excluding $2.8M acquired ARR). This was the 12th straight quarter of double-digit organic net new ARR growth.
Regional Strength
ARR growth by region: North America +21% YoY, EMEA +32% YoY, APAC +27% YoY; SaaS growth in Q1: North America +32%, EMEA +39%, APAC +37% (constant-currency growth also strong).
Customer Expansion
863 customers with ARR > $100k, up 25% year-over-year, indicating strong enterprise traction and successful land-and-expand strategy.
Profitability and Margin Expansion
Non-GAAP operating income of $20.5M with a 17.5% operating margin, reflecting a 310 basis-point expansion YoY. GAAP operating margin expanded by more than 730 basis points YoY to just under 11%.
Cash Generation and Capital Allocation
Cash & equivalents of $444M, operating cash flow of $24.3M (21% margin) and free cash flow of $23.0M (20% margin) in Q1 versus near-zero cash generation a year ago; accelerated share repurchases of ~5.4M shares ($60.8M) in Q1 and additional 1.8M shares (~$17.7M), with buyback program reset to $150M.
Product and Platform Momentum
Product enhancements and integrations: Agent Plus visibility across Copilot Studio, Microsoft Foundry, SharePoint Agents and Gemini; new AI agent risk definition; expanded multi‑SaaS backups (Okta, Confluence, Jira, DocuSign, monday.com, GitHub, Smartsheet) and investments in Google Cloud Protection. Gartner validated AvePoint's platform strategy versus native offerings.
Guidance Raise on ARR and Strong Outlook
Raised full-year ARR guidance to $523.4M–$529.4M (26% growth at midpoint). Full-year revenue guidance $509.4M–$515.4M (22% growth at midpoint) and full-year non-GAAP operating income $91.5M–$94.5M; midpoint Rule of 40 of ~44%.
Operator
Good day, and welcome to the AvePoint, Inc. Q1 2026 Earnings Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Jamie Arestia, Investor Relations. Please go ahead.
Jamie Arestia
Thank you, operator. Good afternoon, and welcome to AvePoint's First Quarter 2026 Earnings Call. With me on the call this afternoon is Dr. TJ Jiang, Chief Executive Officer; and Jim Caci, Chief Financial Officer. After preliminary remarks, we will open the call for a question-and-answer session. Please note that this call will include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from management's current expectations. We encourage you to review the safe harbor statements contained in our press release for a more complete description. All material in the webcast is the sole property and copyright of AvePoint with all rights reserved.
Please note this presentation describes certain non-GAAP measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income and non-GAAP operating margin, which are not measures prepared in accordance with U.S. GAAP. The non-GAAP measures are presented in this presentation as we believe they provide investors with a means of understanding how management evaluates the company's operating performance. These non-GAAP measures should not be considered in isolation from, as substitute for or superior to financial measures prepared in accordance with U.S. GAAP. A reconciliation of these measures to the most directly comparable ...
Subscribe to unlock transcripts
Get The Fly Pro 7 days for free