SaaS revenue rose 38% y-o-y to US$84 million, accounting for 77% of total sales, as customers increased investment in governance and AI-readiness tools. Management says interest remains strong in products linked to Microsoft Copilot and AI-governance capabilities, especially among regulated enterprises preparing for large-scale AI deployment.
Annual recurring revenue (ARR) additions climbed to US$22.4 million, up from US$18.8 million in the previous quarter, lifting total ARR to US$390 million from US$308.9 million a year earlier. Sales efficiency improved toward a 30% target, supported by stronger partner-channel sales.
Total revenue grew 24% y-o-y to US$110 million. This is about 4% above consensus and exceeds the top end of the company's guidance, notes DBS Group Research.
Despite exceeding revenue and ebit expectations, shares slipped 3% following the 3QFY2025 results. DBS Group Research says this could be “due to concerns over a softer 4QFY2025 outlook due to potential impact from US government shutdown”.
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AvePoint expects 4QFY2025 revenue of US$110 million–US$112 million, up 23%–26% y-o-y, and adjusted operating income of US$21 million–US$22 million, up 45%–52%.
The company raised its full-year revenue forecast to US$414.8 million–US$416.8 million and operating income to US$77.3 million–US$78.3 million. “This is line with market expectations, and reflecting healthy demand and operating leverage across the business,” notes DBS Group Research.
Management held ARR guidance at US$412.8 million to US$418.8 million, up 26% to 28%, citing possible timing effects from the shutdown, which executives said would affect ARR more than recognised revenue.
As at 10.26am, shares in AvePoint are trading 1.72 cents lower, or 9.77% down, at $15.88.
