Software-as-a- Service (SaaS) remained AvePoint’s largest revenue driver, growing 35% y-o-y and 5% q-o-q to US$93.4 million. This lifted its share of total revenue to a record 80%.
Annual recurring revenue (ARR) rose 26% y-o-y and 4% q-o-q to US$435.2 million, in line with consensus. Net new ARR recorded its 12th consecutive quarter of double-digit organic growth.
One reason for Mittal’s positive view is AvePoint’s growing exposure to AI governance. Governance now accounts for about 40% of the company’s pipeline, up from less than a third last year, helped by the bundling of AI governance tools.
During the quarter, AvePoint launched AgentPulse Command Center, which enables unified monitoring and control of AI agents across Microsoft 365 and Google Cloud environments.
Non-GAAP operating income rose 53% y-o-y but declined 10% q-o-q to US$20.5 million, about 2% above consensus and at the higher end of management’s guidance. Non-GAAP operating margin came in at 17.5%, up 310 basis points y-o-y, helped by improved sales productivity, growing channel contribution and operating leverage.
AvePoint has trimmed its FY2026 ARR and non-GAAP operating income guidance slightly due to the stronger US dollar. Management now expects FY2026 ARR of US$523.4 million to US$529.4 million, from US$525.1 million to US$531.1 million previously. The midpoint remains in line with consensus.
FY2026 non-GAAP operating income guidance was also lowered to US$91.5 million to US$94.5 million, from US$92.6 million to US$96.6 million previously.
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Still, Mittal does not see the softer guidance as a major concern. “AvePoint has a track record of delivering above its quarterly guidance for revenue and non-GAAP operating income, as we have seen in the past four quarters,” he writes in his May 8 note.
The company is continuing to invest in sales, marketing, AI governance capabilities and go-to-market expansion as it works towards its US$1 billion ARR target by 2029.
Mittal expects AvePoint’s FY2026 performance to benefit from a recovery in US public-sector spending, rising demand for resiliency solutions in the Middle East and AI governance-driven ARR growth.
AvePoint’s longer-term ARR target is expected to be driven by multi-cloud growth, led by a sharper rise in Google-related demand, as well as AI governance.
Management also reiterated expectations for FY2026 free cash flow of more than US$100 million, while continuing share repurchases and retaining flexibility for strategic acquisitions.
As at 11.07 am, shares in AvePoint are trading on SGX $1.02 higher, or 7.67% up at $14.32.
