AvePoint posted net income of US$27.6 million for the quarter ended Jun 30, a near ten-fold increase from US$2.9 million a year earlier, as accelerating demand for its cloud-based software-as-a-service (SaaS) solutions lifted earnings.
Earnings per share rose to US$0.12 on a diluted basis, up from US$0.01 a year ago. The Form 10-Q did not declare any dividend for the period.
Total revenue climbed to US$124.5 million, compared with US$102.0 million a year earlier. SaaS revenue expanded 27.4 YoY to US$98.5 million and accounted for 79 per cent of the top line. Term licence and support income was broadly stable at US$10.2 million, while services revenue increased 8.6 YoY to US$15.7 million. By geography, revenue from North America grew 23.1 per cent to US$48.7 million; Europe, the Middle East and Africa advanced 26.6 per cent to US$40.3 million; and Asia-Pacific rose 15.9 per cent to US$35.5 million.
Gross profit improved 20.5 per cent to US$91.0 million, translating to a gross margin of 73.1 per cent versus 74.0 per cent a year earlier. Operating income increased 44 per cent to US$10.2 million despite higher investments in sales, marketing and research functions. Income before tax rose to US$12.0 million from US$6.9 million, aided by scale benefits and disciplined cost control.
The firm’s annual recurring revenue (ARR) reached US$465.1 million as at Jun 30, up 27 YoY, underpinned by broader cloud adoption and sustained demand for data protection and governance tools. Operational highlights for the quarter included the publication of its third annual State of AI report and the rollout of new features on the AvePoint Confidence Platform designed to strengthen governance and security across multicloud environments.
Headwinds were evident in the term licence and support line, which remained flat, and in services margin, as personnel costs and cloud hosting expenses increased 30 per cent, pressuring overall gross margin.
Looking ahead, AvePoint said it will continue investing in sales capacity, product innovation and geographic expansion. Management reiterated its focus on driving further SaaS penetration and maintaining double-digit operating margins while monitoring macroeconomic volatility and foreign-exchange fluctuations.