AvePoint, Inc.

Good afternoon, everyone, and welcome to the AvePoint second quarter 2021 earnings call. For opening remarks and introductions, I will now turn the call over to Erica Mannion at Sapphire Investor Relations. Please go ahead.

Thank you, and good afternoon. With me today from AvePoint are T.J. Jong, Chief Executive Officer, and Sophia Wu, Chief Financial Officer. T.J. will begin with a brief review of the business results for the second quarter ended June 30, 2021. Sophia will then review the financial results for the second quarter, followed by the company's outlook for the third quarter and full year of 2021. We will then open the call for questions. Please note that this call will include forward-looking statements that involve recent uncertainties that could cause actual results to differ materially from management's current expectations. We encourage you to review the Safe Harbor statements contained in our press release for a more complete description. All material in the webcast is the sole property and copyright of AvePoint, with all rights reserved. Please note, this presentation describes certain non-GAAP measures, including non-GAAP operating income and non-GAAP operating margin, which are not measures prepared in accordance with U.S. GAAP. The non-GAAP measures are presented in this presentation as we believe they provide investors with the means of evaluating and understanding how the company's management evaluates the company's operating performance. These non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with U.S. GAAP. Listeners who do not have a copy of the quarter-ended June 30, 2021 press release may obtain a copy by visiting the Investor Relations section of the company's website. Now, I would like to turn the call over to TJ.

Thank you, Erica, and thanks to everyone for joining us on the call this afternoon. We're excited to report our first quarter as a public company. I want to extend special thanks to the Outpoint team for their hard work and support during the public listing process. We're excited about this next step in our company's journey. I'll start this afternoon with a brief highlight of the quarter. Then because it is our first earnings call, I want to take some time to discuss our business and market opportunity. In the second quarter, we delivered record results. with revenue of $45 million, up 38% year over year, driven by the continued growth of Microsoft Teams and strong adoption of our collaboration security technologies. Within this, SaaS revenue for the quarter reached $21 million, an increase of 76% from prior year, while subscription revenue, which we define as SAS revenue plus term license revenue, reached 32 million, growing 66% year-over-year and representing 70% of our total revenue in the quarter. ARR annual recurring revenue, an important indicator of future revenue growth, also grew 33% year-over-year to 139 million. We had great momentum in our business in the second quarter, with customers spending more than $100,000 in ALR growing to 286, up 33% year-over-year, while our customer success investment initiatives continue to deliver results with a net dollar retention of 111%, up five points from one year ago. For those of you who are new to our story, AppPoint has been an innovator in digital collaboration technologies for nearly two decades. We enable organizations worldwide to collaborate with confidence in the cloud by securing collaboration data, sustaining the connections between people, and ensuring business continuity. Outpoint offers the only full suite of SaaS solutions to migrate, manage, and protect data in cloud-based platforms like Microsoft 365. With the dramatic acceleration of digital transformation over the past year, the need to shift IT infrastructure and operations to the cloud ensure collaboration, security, and protect data due to threats like ransomware has become a strategic and tactical imperative. Through this journey, Outpoint has been uniquely positioned to provide more efficient and secure operations through both guidance and industry proven technology. For example, a large US defense contractor with over 50,000 employees globally had a strong desire to modernize their collaboration through their investment in Microsoft 365, especially Microsoft Teams. But given their need to demonstrate compliance with restricted data and contracting practices regulations, they found themselves challenged by how to align their strict data handling and access request requirements with a more free-flowing sharing model in Microsoft 365. After deploying AppPoint's FedRAMP authorized instance of our governance and management cloud solutions for Microsoft 365, they were able to satisfy their audit and regulatory teams and release Microsoft Teams to their end users, resulting in adoption by 17,000 users in the first week after launch and 30,000 users by early May. Soon after that, they're expanding their use of AppPoint solutions to more critical workflows in their business. With AppPoint solutions, organizations have the ability to enable rapid, sustainable adoption of critical applications like Microsoft Teams, which have recently been experiencing record growth in organizations large and small. We provide customers with confidence in their ability to monitor, manage, and govern the rapid adoption of new cloud services while saving time and money. Customers can accelerate their cloud adoption with AppPoint solutions by decommissioning homegrown or point solutions that fail to provide key insights and flexible automation that drive business outcomes. While AppPoint's revenue and product lines following the overall cloud market are heavily Microsoft-centric today, the solutions we provide are built on proven best practices for management, governance, and compliance, no matter the platform. AppPoint has already made investments to capture multi-cloud opportunities such as Salesforce and Google, We believe that our cloud agnostic approach combined with projected overall growth in cloud usage will lead to significant expansion of Outpoint's market opportunities in the years ahead. As we look at our core customer base today, we continue to enjoy strong momentum from enterprises across the world, accelerating the transformation of their collaboration environments as they adopt and mature in their cloud usage. Our cloud solutions are now used by more than 8 million users. In addition to our strong position within the enterprise landscape, we have also begun to partner with managed service providers, or MSPs, to expand our SaaS-based offerings to small, medium businesses or SMB customers. While early in the overall penetration of this opportunity, in the long term, we view this to be material as it has the potential to nearly double our addressable market, given SMB's representation across Microsoft 365 user base. Looking forward, we believe that market opportunity ahead of us remains very attractive, and we intend to continue ramping up our investments in market awareness, technology innovation, and growth while prudently managing our expense structure. Within our go-to-market organization, for example, we have grown headcount by approximately 50% across our sales, customer success, and channel functions. With these and other related investments, we aim to increase our market share of Microsoft 365 user base, boost our customer retention rate, and continue our triple-digit growth in the SMB market via our channel partners. Lastly, specific to our channel strategy, in July, we launched our first-ever global partner program designed to meet the unique needs of different types of partners, including managed service providers, value-added resellers, cloud consultants, and DevOps partners. Channel is an important expansion vector for AppPoint in the years ahead, so we made it a priority across our business. Through this partner program, it is our goal to enable partners to maximize the full economic opportunity our technology offers and capitalize on the digital collaboration wave as the only independent software vendor, or ISV, offering an all-in-one approach to providing a full collaboration security platform. Before turning the call over to Sophia, I want to quickly highlight the recently announced expansion of our executive leadership team with appointment of Jim Katze to chief financial officer and Tom Ling to chief operating officer. The company's existing CFO, Sophia Wu, will now serve as chief accounting officer and Brian Brown will continue to serve as chief legal and compliance officer, all effective August 23rd, 2021. This is an exciting time to be at Appoint. Looking ahead, we recognize that our public listing is just one step in the journey of our company. And while we're excited to have achieved this milestone, we have much more to do. We look forward to continuing our momentum in 2021 and updating all of you in the quarters to come. With that, I'll turn it over to Sophia to discuss our financial results in more detail.