AvePoint Inc. (AVPT) shares surged 6.32% in pre-market trading on Friday, following the release of its impressive first-quarter 2025 financial results and a target price upgrade from Scotiabank. The data security, governance, and resilience company reported earnings that exceeded analyst expectations, driven by robust revenue growth and a positive outlook for the remainder of the year.

AvePoint's Q1 performance was marked by significant achievements, including a total revenue of $93.1 million, representing a 25% increase compared to the same period last year. Notably, the company's SaaS revenue showed exceptional growth, jumping 34% year-over-year to reach $68.9 million. AvePoint's earnings per share of $0.02 beat the analysts' estimate of -$0.01, demonstrating strong financial health and operational efficiency.

Adding to the positive sentiment, Scotiabank raised its target price for AvePoint from $19 to $22, reflecting increased confidence in the company's growth prospects. Investors were further encouraged by AvePoint's optimistic guidance for both the second quarter and full year 2025. The company expects Q2 revenues between $95.3 million and $97.3 million, projecting a year-over-year growth of 22% to 25%. For the full year 2025, AvePoint forecasts total revenues of $397.4 million to $405.4 million, along with a non-GAAP operating income ranging from $61.4 million to $64.4 million. This positive outlook, combined with the company's strong Q1 results and analyst upgrade, has significantly boosted investor confidence and contributed to the substantial pre-market stock price increase.