From the perspective of Sachin Mittal of DBS Group Research, the company is worth $28. In his Oct 6 initiation report, Mittal describes the company’s listed status to help lift brand visibility among government and regulated-industry clients in Asia.
He observes that AvePoint is trading at 5.8 times its 12-month forward EV/Sales, representing a 40% discount to peers, despite offering a 22% revenue CAGR over FY2024 to FY2026, which is higher than the peer average of 13%. His target price is based on an 11 times forward EV/Sales, about 13% above the peer average for its “superior growth”, says Mittal.
AvePoint is the largest third-party data management provider for Microsoft 365, serving platforms such as Teams and SharePoint.
Revenue grew 20% between FY2022 and FY2024, led by the Resilience suite (62% of annual recurring revenue (ARR)), which ensures business continuity and compliance; the Control suite (28%), which automates governance and security; and the Modernisation suite (11%), which helps clients migrate legacy systems to modern software-as-a-service (SaaS) platforms. Growth has also been supported by the adoption of Microsoft’s Copilot artificial intelligence (AI) model, which fuels demand for secure, AI-ready data environments.
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Geographically, the firm derives 41% of its revenue from North America, 30% from EMEA (Europe, the Middle East, and Africa), and the remaining 29% from the Asia Pacific, which is the fastest-growing region with a 28% CAGR over FY2022 to FY2024.
According to International Data Corp, AvePoint’s total addressable market stood at US$81.3 billion ($105.1 billion) in FY2024 and is projected to grow at a 14% CAGR to US$136.5 billion by FY2028.
Management targets US$1 billion in ARR by FY2029, up from US$327 million in FY2024. Three-quarters of that ARR is expected to come through channel partners as the firm scales its Confidence Platform, deepens cross-sell opportunities, and expands integrations with Google Cloud and AWS to diversify beyond Microsoft’s ecosystem. It is also pursuing selective mergers and acquisitions (M&A) to strengthen its capabilities and extend its global footprint.
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In parallel with top-line expansion, AvePoint has set a long-term operating-margin target of 27.5% “This reflects a disciplined focus on profitable growth, underpinned by increasing scale, a high proportion of recurring revenue, and ongoing improvements in operational efficiency,” notes Gerald Wong, founder and CEO of investment platform Beansprout.
Wong, who did not assign a rating, notes that AvePoint’s financial profile is improving. He cites that the company is nearing the SaaS industry’s Rule-of-40 benchmark, with a score of 38% in 2024, up from 31% the previous year. “This metric, which combines ARR growth with operating margin, highlights the company’s progress in balancing growth with profitability.” However, he also cautioned that the firm’s heavy reliance on the Microsoft ecosystem and rising competition could pose headwinds.
In her Sept 23 note, Helena Wang of PhillipCapital points out that the macro environment is supportive but competitive for AvePoint. She notes that large users continue to prioritise governance, backup, and other new functions in Microsoft 365 environments. “AvePoint benefits from these tailwinds, though competition from Microsoft’s native tools and other SaaS vendors remains a risk,” says Wang.
