AvePoint, Inc.

Good morning, everyone, and welcome to the AvePoint third 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 morning. With me today from AvePoint are TJ Zhang, Chief Executive Officer, and Jim Cassie, Chief Financial Officer. TJ will begin with a brief review of the business results for the third quarter ended September 30, 2021. Jim will then review the financial results for the third quarter, followed by the company's outlook for the fourth 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 risks and 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 a 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 the US 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 September 30, 2021 press release may obtain a copy by visiting the investor relations section of the company's website. Now, I'd like to turn the call over to TJ.

Thank you, Erica, and good morning, everyone. Welcome to our third quarter earnings call. Our team delivered again record results with revenue of $54 million, up 36% year over year, driven by continued strong demand from customers to make their digital collaboration more compliant, productive, and secure. Subscription revenue grew 79% year over year, representing 74% of our total revenue in the quarter compared to 56% of total revenue a year ago. Organizations accelerated their shift to cloud-based collaboration in response to hybrid work demands. However, many organizations still have a long road ahead of them. This shift hasn't been easy. Complex requirements, prolific amounts of legacy data, and processes all create challenges. Our migration and transformation products allow us to capture the customer as they begin their cloud journey. We then address additional needs with our platform as they mature their SaaS operations. As a result, our subscription growth is a healthy mix of our product portfolio. For example, we recently completed a three-year digital transformation initiative for a critical US government agency with more than 100,000 users and one of the largest on-premise collaboration environments in the world. This longtime customer also successfully transitioned from leveraging our hybrid software to our FedRAMP authorized SaaS platform this quarter, which enables them to collaborate securely and prevent data loss in Microsoft 365. We're proud that our technology enables our customers' mission and that government officials are safer thanks to the security, availability, and integrity of their sensitive data during and after their cloud transformation. Total ARR, an important indicator to track the health of our business, grew 32% year over year. We had great momentum in our business in the third quarter with a number of customers spending more than $100,000 in ARR, up 37% year over year. The tailwind of organizations maturing their SaaS operations will continue in 2022, which will drive demand for data protection as a service, governance, and compliance products. This is supported by the continued growth we're seeing in the amount of data managed by our platform, which exceeds hundreds of petabytes of data. Extreme flexibility will define the post pandemic workplace and continue to drive a seismic shift in how organizations automate their SaaS operations across collaboration services. Gartner predicts public cloud spending will exceed 45% of all enterprise IT spending by 2026, up from less than 17% in 2021. With that increased spend on SaaS, IaaS, PaaS, and more, we believe organizations will be pressured to justify these investments, optimize their spend, all while keeping security risk as low as possible. One size fits all collaboration management settings are too clumsy for the post-pandemic workplace. Each region, department, and even project team needs specific digital workspace settings, and they need it done quickly and accurately. It's just not efficient or effective for humans to do this manually within each collaboration technology using native capabilities in a siloed ad hoc fashion. For example, this past quarter, a US-based consumer packaged goods organization with more than 100,000 global employees decided to leverage multiple solutions within our platform to create more agility within their IT operation model. By automating Microsoft 365 digital workspace lifecycle and access controls, our technology is enabling faster collaboration with less risk that results in an estimated $11 million savings of operational costs over three years. Our customer success investments continue to drive improved year-over-year results with net dollar retention rate of 110% of four percentage points from one year ago. Jim will elaborate on some of the sequential movement, but it remains a strategic priority as we believe our deep customer relationships are a competitive advantage and our post-purchase initiatives are key differentiator. Eight out of the 10 biggest upsells this quarter were with customers that have been with us for more than five years. And we're one of the only companies in our space to offer standard 24 by 7 world-class live person support. We're continuing to expand our SaaS and data management platform to deliver compelling industry and business centric solutions. By doing so, our platform is stickier and our customers receive even more value from their Apple investments. One of those current industry focus area is education and career training. We're excited to announce that we have been awarded a 37 million Singapore dollar contract from lead agency Temasek Polytechnic to deploy an integrated SaaS training management platform for career professionals. The platform will be powered by AppPoint EduTech and available to six institutions of higher learning in Singapore as part of the government's drive to build relevant future skills through continuing education and training, CET. Today, nine out of 10 Singapore workers see an urgent need to upscale. By investing in a training management platform, Thomastik Polytechnic and the five additional IHLs cement their dedication to providing quality continuous education as part of the overall Singapore goal. The platform will give over 100,000 learners access to a catalog of 44,000 courses designed to teach them a variety of professional skills in both digital and hybrid learning environments. I've shared how AppPoint is expanding our indirect sales channel as part of our go-to-market strategy to scale our business. And in the third quarter, we maintain triple-digit growth in our monthly recurring revenue tied to our managed services provider business. According to IDC and Gartner, $1 of Microsoft spend generates $9.5 in total ecosystem economic opportunity for the partner community. Channel partners can capture that 9.5 X multiplier when working with AppPoint through attached selling or through a wide variety of managed and professional service opportunities that AppPoint products drive. We believe these channel source deals will minimize competitive threats and resulting reduced sales cycles. That said, it will take time for our channel partners to ramp up productivity and as such, while we may have incremental pipeline build across a subset of partners, we do not expect to see material contribution from the partner channel until second half 2022. As this program builds, we expect long tail partners to contribute smaller opportunities first, followed in the midterm by larger MSPs who consistently sell into larger accounts. For example, a new logo was sourced by a key partner in Germany. This retail organization has launched approval concept to consolidate their customers collaboration data, and implement a data protection program to meet their retention and GDPR requirements. AppPoint solutions will help this partner's IT team scale and increase margins by providing self-service recovery for tens of thousands of end users. Finally, I'm excited by our product investment this last quarter. Cloud Backup for Google Workspace was released in our global distribution network to expand our market reach of our multi-cloud backup as a service offerings. In Q4, we will be promoting that offer with integrated go-to-market campaigns. We also released Sense, a solution to help organizations optimize Microsoft 365 license utilization. Long-term, Sense will also be available to other cloud services. All of this would not have been possible without the amazing people I get to work with every day. Thank you to my fellow AppOinters. I've never been more excited in our 20 year journey. With that, I'll turn over to Jim to discuss our financial results in more detail.