Apex Technology Acquisition Corporation (NASDAQ: APXT, “Apex”)
and AvePoint, the largest data management solutions provider for
Microsoft 365, today announced preliminary, selected unaudited
financial results for the full year ended December 31, 2020.
Full year total revenue is expected to be in the range of $148
million to $151 million, up 29% year over year at the mid-point.
AvePoint had forecasted $148 million at the announcement of the
business combination in November 2020. AvePoint also expects cash,
cash equivalents and short-term investments to be approximately $70
million as of December 31, 2020.i
“AvePoint delivered strong financial results for the fourth
quarter and full year of 2020, exceeding our estimate at the time
of the announcement of the business combination with Apex. With the
COVID-19 pandemic accelerating Microsoft Teams adoption globally as
organizations pivot to remote work collaboration, the need for last
mile solutions to overcome complex transformation, governance and
compliance challenges has dramatically increased,” said Dr. Tianyi
“TJ” Jiang, CEO of AvePoint. “As the largest data management
solutions provider for Microsoft 365, we believe AvePoint is
uniquely positioned to capture this opportunity and we look forward
to continuing to lead the market in the years ahead.”
In addition, Apex has filed its registration statement on Form
S-4 with the U.S. Securities and Exchange Commission (“SEC”), which
includes a preliminary proxy statement/prospectus with AvePoint’s
audited financial results for the nine-months ended September 2020,
in connection with the proposed business combination. The
transaction is expected to close at the end of Q1 2021 or the
beginning of Q2 2021. The timing of the transaction close remains
subject to customary closing conditions, including SEC review, and
the approval of the shareholders of Apex and AvePoint.
AvePoint Year Ended December 31, 2020 Preliminary Selected
Financial Results
- Full Year Total Revenue in the range of $148 million to $151
million, up 29% year-over-year at the mid-point
- Cash, Cash Equivalents and Short-Term Investments of
approximately $70 million as of December 31, 2020; Company remains
debt-free
AvePoint Nine Months Ended September 30, 2020 Selected
Financial Results
- Total Revenue of $105.4 million, up 30% period-over-period
- Recurring Revenueii of $77.1 million, up 33%
period-over-period
- Subscription Revenue of $59.3 million, up 62%
period-over-period
- Total ARRiii of $111.6 million as of September 30, 2020, up 30%
period-over-period
- GAAP Operating Loss of $4.6 million; GAAP Operating Margin of
(4%)
- Non-GAAP Operating Income of $11.6 million; Non-GAAP Operating
Margin of 11%
AvePoint Recent Business Highlights
- Enabled collaboration security for City of Port St. Lucie to
automatically enforce important Microsoft 365 governance policies
with AvePoint Cloud Governance and Policies and Insights
- Awarded Microsoft Singapore Partner of the Year 2020 for
Industry: Enterprise
- Awarded Channel Asia Innovation 2020 for Smart Technology
- AvePoint MyHub is exclusively among the 9 Microsoft 365
certified apps for Microsoft Teams
- AvePoint Recognized as among Built In Chicago’s 100 Best Places
to Work
About AvePoint
AvePoint enables customers to collaborate with confidence. Our
data management solutions help our diverse, global customer base
overcome complex transformation, governance, and compliance
challenges in the Microsoft cloud. A five-time winner of the Global
Microsoft Partner of the Year award, AvePoint offers the only full
suite of SaaS solutions to migrate, manage and protect data in
Microsoft 365. More than 7 million cloud users, including a quarter
of the Fortune 500, rely on our solutions. Our SaaS solutions are
also available to managed service providers, so they can better
support and manage their small and mid-sized business customers.
Our multi-tenant solutions are available from over a dozen
distributors in more than 100 cloud marketplaces worldwide. For
more information about AvePoint, visit
https://www.avepoint.com.
About Apex Technology Acquisition Corporation
Apex is a special purpose acquisition corporation led by co-CEOs
Jeff Epstein, the former CFO of Oracle, and Brad Koenig, the former
head of Goldman Sachs’ global technology investment banking team.
For more information about Apex, visit
https://apexacquisitioncorp.com/.
Non-GAAP Financial Measures
To supplement AvePoint’s consolidated financial statements
presented in accordance with GAAP, the company uses non-GAAP
measures of certain components of financial performance. These
non-GAAP measures include non-GAAP operating income and non-GAAP
operating margin. In order for AvePoint’s investors to be better
able to compare its current results with those of previous periods,
the company has shown a reconciliation of GAAP to non-GAAP
financial measures. These reconciliations adjust the related GAAP
financial measures to exclude stock-based compensation expense.
AvePoint believes the presentation of its non-GAAP financial
measures enhances the user’s overall understanding of its
historical financial performance. The presentation of AvePoint’s
non-GAAP financial measures is not meant to be considered in
isolation or as a substitute for its financial results prepared in
accordance with GAAP, and AvePoint’s non-GAAP measures may be
different from non-GAAP measures used by other companies.
Forward-Looking Statements
This press release contains certain forward-looking statements
within the meaning of the federal securities laws including
statements regarding AvePoint’s estimated financial results as of
and for the year ended December 31, 2020, the anticipated timing of
the closing of the business combination, AvePoint’s products and
markets and expected future performance and market opportunities of
AvePoint. These forward-looking statements generally are identified
by the words "believe," "project," "expect," "anticipate,"
"estimate," "intend," "strategy," "future," "opportunity," "plan,"
"may," "should," "will," "would," "will be," "will continue," "will
likely result," and similar expressions. Forward-looking statements
are predictions, projections and other statements about future
events that are based on current expectations and assumptions and,
as a result, are subject to risks and uncertainties. Many factors
could cause actual future events to differ materially from the
forward-looking statements in this press release, including but not
limited to: (i) the risk that the transaction may not be completed
in a timely manner or at all, which may adversely affect the price
of Apex's securities, (ii) the risk that the transaction may not be
completed by Apex's business combination deadline and the potential
failure to obtain an extension of the business combination deadline
if sought by Apex, (iii) the failure to satisfy the conditions to
the consummation of the transaction, including the approval of the
merger agreement by the shareholders of Apex, the satisfaction of
the minimum trust account amount following any redemptions by
Apex's public shareholders and the receipt of certain governmental
and regulatory approvals, (iv) the lack of a third party valuation
in determining whether or not to pursue the proposed transaction,
(v) the inability to complete the PIPE transaction, (vi) the
occurrence of any event, change or other circumstance that could
give rise to the termination of the merger agreement, (vii) the
effect of the announcement or pendency of the transaction on
AvePoint's business relationships, operating results, and business
generally, (viii) risks that the proposed transaction disrupts
current plans and operations of AvePoint, (ix) the outcome of any
legal proceedings that may be instituted against AvePoint or
against Apex related to the merger agreement or the proposed
transaction, (x) the ability to maintain the listing of Apex's
securities on a national securities exchange, (xi) changes in the
competitive and regulated industries in which AvePoint operates,
variations in operating performance across competitors, changes in
laws and regulations affecting AvePoint's business and changes in
the combined capital structure, (xii) the ability to implement
business plans, forecasts, and other expectations after the
completion of the proposed transaction, and identify and realize
additional opportunities, (xiii) the risk of downturns in the
market and the technology industry, and (xiv) costs related to the
transaction and the failure to realize anticipated benefits of the
transaction or to realize estimated pro forma results and
underlying assumptions, including with respect to estimated
shareholder redemptions. The foregoing list of factors is not
exhaustive. You should carefully consider the foregoing factors and
the other risks and uncertainties described in the "Risk Factors"
section of the registration statement on Form S-4 above and
discussed below and other documents filed by Apex from time to time
with the SEC. These filings identify and address other important
risks and uncertainties that could cause actual events and results
to differ materially from those contained in the forward-looking
statements. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and AvePoint and Apex assume no
obligation and do not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise. Neither AvePoint nor Apex gives any
assurance that either AvePoint or Apex, or the combined company,
will achieve its expectations.
No Offer or Solicitation
This press release shall not constitute a solicitation of a
proxy, consent or authorization with respect to any securities or
in respect of the business combination discussed herein. This press
release also shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any states or jurisdictions in which such
offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such
jurisdiction. No offering of securities shall be made except by
means of a prospectus meeting the requirements of the Securities
Act of 1933, as amended, or an exemption therefrom.
Important Information for Investors and Stockholders
This press release relates to a proposed transaction between
AvePoint and Apex. In connection with the proposed transaction,
Apex has filed a registration statement on Form S-4 with the SEC,
which also includes a document that serves as a prospectus and
proxy statement of Apex, referred to as a proxy
statement/prospectus. A proxy statement/prospectus will be sent to
all Apex shareholders. Apex will file other documents regarding the
proposed transaction with the SEC. Before making any voting
decision, investors and security holders of Apex are urged to read
the registration statement, the proxy statement/prospectus and all
other relevant documents filed or that will be filed with the SEC
in connection with the proposed transaction as they become
available because they will contain important information about the
proposed transaction.
Investors and security holders are able to obtain free copies of
the registration statement, the proxy statement/prospectus and all
other relevant documents filed or that will be filed with the SEC
by Apex through the website maintained by the SEC at www.sec.gov.
The information contained on, or that may be accessed through, the
websites referenced in this press release is not incorporated by
reference into, and is not a part of, this press release.
Participants in the Solicitation
Apex and its directors and officers may be deemed participants
in the solicitation of proxies of Apex’s stockholders in connection
with the proposed transaction. Apex’s stockholders and other
interested persons may obtain, without charge, more detailed
information regarding the directors and officers of Apex in the
registration statement containing the proxy statement/prospectus
which has been filed with the SEC.
AvePoint, Inc. and
Subsidiaries
Supplemental Financial
Information
Reconciliation of GAAP to
Non-GAAP Financial Data
(Unaudited)
Nine Months Ended
September 30, 2020
GAAP Operating Loss
$
(4,643,601)
Stock-based compensation
16,235,125
Non-GAAP Operating Income
$
11,591,524
Non-GAAP Operating Marginiv
11%
i AvePoint has provided a range,
rather than a specific amount, for the preliminary revenue estimate
primarily because its financial closing procedures for the year
ended December 31, 2020 are not yet complete. The data are not a
comprehensive statement of its results for this period, and its
actual results may differ materially from these preliminary
estimated data. AvePoint’s actual results remain subject to the
completion of management’s and its audit committee’s reviews and
AvePoint’s other financial closing processes, as well as the
completion and preparation of its consolidated financial data for
the year ended December 31, 2020.
ii Recurring revenue includes
revenue derived from Recurring Revenue Contracts. Recurring Revenue
Contracts means subscription revenue contracts, maintenance
contracts, and other contracts of a similar type that are recurring
in nature.
iii AvePoint calculates annual
recurring revenue (“ARR”) at the end of a particular period as the
annualized sum of: (1) contractually obligated Annual Contract
Value from subscription and maintenance revenue sources from all
customers with a contract duration exceeding three months, and (2)
the product of the current month’s monthly recurring revenue
(“MRR”) multiplied by twelve (to prospectively annualize
subscription revenue). MRR includes AvePoint’s channel business and
customers that sign contracts for less than one quarter in
duration. ARR also includes some recurring professional services
revenue, such as recurring technical account management
services.
iv Calculated as non-GAAP
Operating Income divided by Revenue.
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version on businesswire.com: https://www.businesswire.com/news/home/20210204005364/en/
Investor Contacts:
AvePoint, Inc. Erica Mannion, Sapphire Investor Relations,
LLC. emannion@sapphireir.com 617-542-6182
Apex Technology Acquisition Corporation Michael Bowen,
ICR, Inc. Michael.bowen@icrinc.com 203-682-8299
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