[SINGAPORE] Cybersecurity company AvePoint has posted a 396.8 per cent increase in net profit to US$13 million for its third quarter ended Sep 30, from US$2.6 million in the corresponding period in the year before.
This came on the back of a 23.6 per cent rise in total revenue to US$109.7 million, driven by growth in its software as a service (SaaS) and services segments.
However, shares of AvePoint on the Singapore Exchange (SGX) were down 2 per cent or S$0.36 at S$17.80 as at 2.34 pm on Friday (Nov 7), as the company missed earnings per share (EPS) estimates.
AvePoint logged an EPS of US$0.06 for Q3 – up from US$0.01 in the year-ago period, but falling short of the expected EPS of US$0.074 for the quarter based on a Bloomberg consensus of nine analysts.
Revenue from its SaaS cloud-based solutions rose 38 per cent to US$84 million on strong customer demand, while services revenue climbed 27.3 per cent to US$13.8 million.
The increase in total revenue was partially offset by a decline in term licence and support, as well as maintenance revenues.
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Revenue from maintenance fell 72 per cent to US$837,000, and term licence and support revenue shrank by 21.2 per cent to US$11.1 million.
“Maintenance revenue is expected to continue declining as we have shifted away from the sale of perpetual licences and towards SaaS and term licences,” the group said in a bourse filing on Friday.
“Without perpetual licence sales, there will be limited opportunities to sell maintenance contracts to new customers. Existing customers have and will continue to transition to SaaS and term licences,” it added.
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Total annual recurring revenue (ARR) increased 26 per cent year on year to US$390 million. AvePoint attributed the growth in ARR to both new customer acquisitions and the expansion of existing customer relationships.
“We believe ARR further enables measurement of our business performance, is an important metric for financial forecasting, and better enables us to make strategic business decisions,” it said.
AvePoint has a secondary listing on the SGX mainboard, with a primary listing on the Nasdaq.
Singapore, where it first established a presence in 2009, now serves as the company’s Asia headquarters and international research and development hub.
