Shares of AvePoint Inc. (AVPT) are plummeting 9.66% in pre-market trading on Friday, following the release of the company's second-quarter earnings report. Despite beating revenue expectations and raising its full-year guidance, a significant earnings miss appears to have deeply disappointed investors.

AvePoint reported adjusted earnings of $0.03 per share for the quarter ended June 30, falling short of the mean analyst expectation of $0.05 per share. This miss comes even as the company swung to profitability from a loss of $0.01 per share in the same quarter last year. On the positive side, revenue surged 30.9% to $102.02 million, surpassing analysts' projections of $95.96 million.

The sharp stock decline suggests that investors may have had even higher expectations than the official analyst estimates, or that they are particularly concerned about the company's profitability despite its strong top-line growth. This reaction comes in spite of AvePoint raising its 2025 total revenue guidance to between $406.6 million and $410.6 million, up from the previous range of $397.4 million to $405.4 million. The market's response highlights the importance of meeting or exceeding earnings expectations, even in the face of strong revenue performance and optimistic future outlooks.