AvePoint - Global leader in data security and governance

AvePoint (Not Rated) - Global leader in data security and governance

AvePoint is a global leader in cloud-based data management, with a core focus on data governance, security, and compliance. 

Through the AvePoint Confidence Platform, AvePoint helps over 25,000 customers globally to prepare, secure, and optimise their critical data across Microsoft, Google, and other collaboration environments. 

The company serves a wide range of industries, including professional and administrative services, financial and insurance, and others. 

Reflecting increasing customer adoption of the company’s cloud-based data management solutions, software-as-a-service (SaaS) represented 70% of its total revenue in 2024, up from 34% in 2020.

By offering end-to-end data management capabilities, AvePoint enables organisations to confidently migrate, secure, and govern their data in increasingly complex and regulated digital environments.

Well-balanced across geographies and industries

AvePoint’s business model is characterised by strong diversification across geography, industry, and go-to-market strategy. 

From a geographic standpoint, the company maintains a well-balanced Annual Recurring Revenue (ARR) distribution, with North America accounting for 44%, EMEA for 35%, and APAC for 21%, underscoring its established global footprint. 

In terms of growth, EMEA and APAC have been the fastest-growing regions from 2020 to 2024, recording CAGRs of 32% and 31% respectively. North America, while still the largest contributor, saw a comparatively lower CAGR of 24% over the same period.

Industry exposure is equally broad, with no single vertical representing a dominant share of ARR. Instead, revenue is spread across sectors such as professional and administrative services (12%), finance and insurance (13%), and manufacturing and production (10%), among others—reducing the company’s dependence on any one segment. 

AvePoint also benefits from a balanced go-to-market approach, with 45% of revenue coming from direct sales and 55% via channel partnerships. This mix supports scalable growth while enabling flexible customer acquisition strategies across different markets.

Strong leadership position within Microsoft ecosystem

The company serves over 25,000 customers worldwide, covering a diverse set of industries including Financial Services, Insurance, Healthcare, Energy, and Utilities. 

AvePoint supports multi-cloud environments such as Microsoft 365, Google Cloud, AWS, and Salesforce. 

As of March 2025, AvePoint maintains a strong leadership position within the Microsoft Cloud ecosystem, having been recognised six times with the Microsoft Partner of the Year Award—most recently in the Education category.

SaaS contributes the majority of revenue

AvePoint has demonstrated strong momentum in scaling its recurring revenue base. 

Annual Recurring Revenue (ARR) increased from US$122 million in 2020 to US$327 million in 2024, representing a compound annual growth rate (CAGR) of 28%. 

The company generates revenue across four key segments: SaaS, Term License & Support, Services, and Maintenance. ARR is primarily driven by the SaaS, Term License & Support, and Maintenance segments.

Growing addressable market

The total addressable market for data governance, security, and related services is currently valued at US$52.2 billion and is projected to grow at a compound annual growth rate (CAGR) of 17.4% to reach US$99.0 billion by 2028, according to IDC. 

The growing demand is supported by the need for better data governance and security solutions with the surge in the use of generative artificial intelligence (AI), as well as greater focus on cybersecurity. 

Improving reported financial performance

Revenue Growth

With increasing adoption of the Confidence Platform and a growing customer base, AvePoint’s revenue increased sharply from 2020 to 2024. 

In 2024, the company’s revenue grew by 21.6%, and annual recurring revenue grew by 23.6%, reflecting improving momentum in its business. 

From 2020-2024, AvePoint achieved a 28% CAGR in its annual recurring revenue to reach US$327 million in 2024.

Improving margins

From 2021 to 2024, AvePoint’s non-GAAP operating margin rose from 3.1% to 14.4%. This was largely driven by stronger operating leverage, with Sales & Marketing expenses reduced from 44.3% to 34.3% of revenue over the same period. 

Meanwhile, investment in Research & Development increased from 8.4% to 12.2%, underlining AvePoint’s ongoing focus on innovation and long-term product development. 

General & Administrative expenses also declined from 18.4% to 14.7%, benefiting from economies of scale and tighter operational controls.

Close to Rule of 40 benchmark

AvePoint is nearing the SaaS industry’s Rule of 40 benchmark, with its 2024 score reaching 38%, up from 31% in 2023. 

This metric, which combines ARR growth with operating margin, highlights the company’s progress in balancing growth with profitability.

AvePoint targets US$1 billion ARR in FY29

AvePoint has set a target of reaching US$1 billion in Annual Recurring Revenue (ARR) in 2029, supported by a rapidly expanding addressable market projected to grow to US$99 billion by 2028. 

This growth is being driven by accelerating demand for data intelligence, security, and AI-ready infrastructure. To achieve this milestone, AvePoint is focused on scaling its interoperable Confidence Platform, deepening cross-sell opportunities within its customer base, and expanding its channel ecosystem—aiming to generate 75% of ARR through channel partners.

The company also plans to diversify beyond its core Microsoft ecosystem by increasing integrations with platforms such as Google Cloud and AWS, broadening its market reach. 

Additionally, AvePoint is pursuing a measured M&A strategy to strengthen its capabilities and extend its global footprint.

In parallel with top-line growth, AvePoint has 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.

Key Risks

Key risks include significant exposure to Microsoft ecosystem, macroeconomic uncertainty, competition, amongst others. 

• Significant exposure to Microsoft ecosystem: A key risk for AvePoint lies in its substantial reliance on the Microsoft ecosystem. This tight integration has been a core growth driver, capitalising on widespread adoption of Microsoft’s cloud collaboration tools. However, it also introduces platform concentration risk. Any material changes to Microsoft’s product roadmap, partner strategy, or native feature offerings could potentially reduce AvePoint’s relevance, limit pricing flexibility, or create competitive headwinds.
• Competitive Pressure in the SaaS Ecosystem: AvePoint operates in a highly competitive environment. This intense competition can lead to pricing challenges, longer sales cycles, and reduced differentiation.
• Macroeconomic Headwinds and Budget Constraints: Ongoing macroeconomic uncertainty—including inflationary pressures, elevated interest rates, and concerns about a potential global slowdown—may lead organisations to scale back IT spending.
• Cybersecurity and Data Integrity Risks: As a provider of data governance and compliance solutions, AvePoint’s reputation and customer trust are closely tied to the security of its platform. A cybersecurity breach could have significant financial and reputational repercussions, including regulatory fines and customer attrition.

Trading at 2026 EV/Revenue multiple of 6.5x

At a share price of US$15.45 on 16 September 2025, AvePoint’s Nasdaq-listed stock (AVPT) is valued at 7.7x 2025 Enterprise Value-to-Revenue (EV/Revenue) and 6.5x 2026 EV/Revenue. 

On an earnings basis, it trades at 41.3x 2025 EV/EBITDA and 31.0x 2026 EV/EBITDA.

Discover how Software-as-a-Service (SaaS) works, its key benefits, and growth prospects in this guide for investors.

Find out key operational and valuation metrics to evaluate SaaS companies in this guide for investors.

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