AvePoint, Inc.

Good afternoon and welcome to the AvePoint's fourth quarter and full year 2021 earnings call. For opening remarks and introductions, I will now turn the call over to Mark Griffin, Investing Relations. Please go ahead.

Thank you. Good afternoon and welcome to AvePoint's fourth quarter and year-end 2021 earnings call. Today we'll be discussing the results announced in our press release issued after the market closed. With me on the call this afternoon is Dr. T.J. Jung, Chief Executive Officer, and Jim Cassie, Chief Financial Officer. TJ will begin with a brief review of the business results for the fourth quarter and full year ended December 31st, 2021. Jim will then review the financial highlights for the fourth quarter, followed by the company's outlook for the first quarter and full year 2022. We will then open up 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 materials in the webcast is the sole property and copyright of AvePoint with all rights reserved. Please note that 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 U.S. GAAP. The non-GAAP measures are presented in this presentation as we believe they provide investors with a 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 the financial measures prepared in accordance with U.S. GAAP. Listeners who do not have a copy of the quarter-ended December 31, 2021 press release may obtain a copy by visiting the investor relations section of the company's website. With that, let me turn the call over to TJ.

Thank you, Mark, and thank you to everyone joining us on the call today. I'm very pleased to report that AvePoint's fourth quarter performance was a strong finish to what was a monumental year for the company. It is a profound privilege to see the trust our customers, partners, and shareholders place on us, and it's a great honor to see how hard and committed AvePoint's employees are in earning and holding that trust. When we became a public company in July, I committed to fulfill our mission to enable organizations to collaborate with confidence at scale. For our fourth quarter, we delivered SaaS revenue of $24.3 million, up 52% from the same period 2020, and grew total ARR 34% year-over-year to $159.2 million. Our growth reflects the expanding need to secure collaboration data, sustain connections between people, and ensure business continuity. In 2021, the world continued to adapt to hybrid work. We helped customers become digitally resilient and build the right foundation for innovation by introducing industry-leading solutions and evolving existing ones. By providing better insights and controls, security teams, IT operators, and business leaders can make better decisions. I'm proud of our commitment to security for ourselves, our customers, and our partners. We received authorization to operate under FedRAMP as well as security certifications for ISO and SOC 2 Type 2 compliance. Our support extends to collaboration on Microsoft, Google, and Salesforce Clouds. Our fiscal year 2021 results were strong across our key operating metrics as we delivered on growth while remaining free cash flow positive. Revenue grew 27% over last year to $191.9 million, with SaaS revenue of $85.6 million, up 64% for the year. These strong results were driven by a go-to-market strategy that is well balanced for solid new logo acquisitions, a growing partner ecosystem, and the ongoing expansion of existing customers. This demonstrates the resilience of our value proposition the strength of our SaaS platform, and the character of our team and core values. One of the tailwinds advancing our go-to-market efforts has been our expanding partner network. AppPoint has strong roots working with global enterprise organizations, and in 2021, we introduced our global partner program designed to deepen our relationships with existing partners and amplify our recruitment efforts. We have been a destructor in our approach to this market. Our ability to enable our partners with capabilities in our cloud-native platform is helping them serve their small and medium-sized business clients amid secular trends of digital transformation. That means our enterprise-grade technology, the same that Fortune 500 businesses use, is now available to help SMBs collaborate with confidence. Very few B2B SaaS companies achieve this versatility and our early success gives us the confidence for sustained growth in the next five years and beyond. I want to spend a few minutes discussing how partners are accelerating our business in a few ways. As we announced recently, AppPoint ended the year with over 2,800 total partners, including managed service providers, or MSPs, value-added resellers, system integrators, cloud consultants, DevOps partners, and distributors. The vast majority of our partners have an MSP business primarily focused on the SMB market. Serving MSPs is a highly efficient way to expand our high-margin SaaS revenue while shifting much of the sales, marketing, and customer service touchpoints to our partners. As of year end, this portion of our channel business was transacting the equivalent of 9.4 million ARR, up 126% from last year. The growth we're seeing now is possible because of our continued commitment to supporting partners wherever they are and however they prefer to transact. In Q4, for example, thanks to our technology integration with ApexSight, a technology provider for distributors and vendors to create a white-label cloud marketplace, we're able to quickly onboard a key distributor in the Nordics. By working with this new distributor, we are able to reach an additional 80% MSPs managing hundreds of thousands of cloud users. This is an incredible force multiplier for us. One of their MSP partners in Sweden was able to onboard 13 unique clients onto our multi-tenant data protection services within just two months. The simple streamlined onboarding experience for MSPs that our integration provides is helping drive sustained demand for our cloud solutions. We're excited to help partners scale and achieve extraordinary growth for their small, medium, and enterprise business customers. Another lever for growth is our ability to enable a co-sale motion. In these situations, the partner has an established relationship with the end client, and the partner may choose to purchase our SaaS solutions directly from us and not a distributor. This flexibility empowers the partner to wrap our software in their services and expands our presence in the market. For example, a partner in Australia is going to market with a health check service. powered by our Confidence Platform Insights. The partner identifies potential security concerns related to information oversharing, external users, and sensitive data. These insights create an opportunity for recurring revenue services through ongoing action and remediation. In Canada, we are able to help a large global client in the service sector supporting their 54,000 users across multiple geographies with our local partner, SII. Now they're able to satisfy data protection and data sovereignty requirements with our SaaS backup. Furthermore, I want to add that many of our partners such as Converge and C3 have multiple lines of business and support Outpoint through both managed services and co-sell agreements, depending on their clients. Our reach into this market segment continues to grow as we onboard more MSPs and their clients onto our cloud services. Collectively, our approach to scale through partners is paying dividends. Half of our new logos today come from partner source opportunities. In today's highly disrupted geopolitical climate, AppPoint is viewed as the trusted platform provider to our enterprise customers and partners. With AppPoint's true global presence across all their premium B2B software markets in North America, Western Europe, NZ, Singapore, Korea, and Japan, We expect our strong channel growth momentum to continue, if not accelerate, going forward. To support larger global organizations, our direct sales team continues to drive our enterprise business. In 2021, we significantly increased our enterprise sales capacity. Our direct sales team is designed to quickly respond to evolving market trends. to help customers solve complex business problems. In Germany, for example, a large manufacturing customer was concerned with records and information management. With rising cloud storage costs, they need a better way to keep their collaboration platform optimized with a proactive data disposition and retention program. Our SaaS solutions are being deployed to automate classification and lifecycle policies. As a result, they can look forward to improved transparency, accountability, and compliance, plus reduce cloud storage costs. In North America, we were able to help a life insurance company satisfy ransomware protection and data retention requirements for their 24,000 users. The ability to recover data in the event of a ransomware attack was a must-have requirement. The IT and storage teams also needed a better way to work together to ensure archive content is properly disposed. We were able to satisfy both set of requirements through our unified SaaS platform. These stories demonstrate our strength in our enterprise market segment. The number of our customers with over 100,000 in ARR increased to 335 in Q4, up 36% year over year. We also saw success with our existing customer base as they continue their cloud transformation and look to gain more value from their own cloud investments. In Q4, for example, we helped an international financial institution consolidate cloud vendors onto Microsoft 365 and are continuing to help them transition their on-prem infrastructure to the cloud. We reached another milestone in Q4 as the number of users managed by our SaaS platform continue to grow. As of December 31st, 2021, we managed 9.4 million users, up 34% from 7 million a year ago. Now I would like to provide a few technology highlights. Last year, we strengthened our confidence platform, resulting in additional solution depth and breadth. We introduced M3C5 license management in our control suite with a new product called Sense and expanded our resilience suite with Google Workspace backup offering. In Q4, our November release shipped more capabilities to make SaaS operations and data management easier and more efficient across our platform suites. Our control suite now features improved budget management and even presents global or delegated admins with recommendations on how to better manage license costs. This maximizes the ROI on our customer SaaS portfolios. We also overhauled and improved our elements platform for MSPs, which supports multi-tenant management to help them streamline customer management and do more with less. Another key highlight was the release of our support for Teams private channels. This support is critical for highly regulated customers. A US defense contractor would not have been able to release private channels to their 50,000 users without our solution. Our solution provides a compliant access request process that secures and governs access to Microsoft Teams and now private channels. Information security and management challenges remain top of mind no matter where organizations are in their transition to the cloud. While some organizations are already dealing with the aftershock of the rapid shift to cloud over the last couple years, some are still transitioning or are choosing to live in a hybrid world. We are well positioned to support our customers and partners no matter where their data resides, as now customers can extend their information management processes to legacy, on-prem content, without the burden of self-hosted infrastructure and applications. We're very proud of these enhancements and excited by the reception by our customers and industry experts. AppPoint was recognized as a leader for cloud backup as the only vendor to receive a differentiated rating for Microsoft 365, Google Workspace, and Salesforce backup capabilities in the Forrester's New Wave SaaS Application Data Protection Report in Q4. Through our November release, we also laid a lot of groundwork for two very exciting releases in January and March that we'll speak to in a couple months in our first quarter update. And finally, before Jim goes over the numbers, I want to touch on the share repurchase announcement we made in our earnings release. Our board of directors have authorized a three-year repurchase program that will return up to $150 million to shareholders. 2021 was an outstanding and transformative year for the company as we saw record revenue growth and became a publicly traded company. Our financial positioning is strong. We're investing and scaling our business through channel, accelerating new product offerings while maintaining positive free cash flow to continue building the foundation for sustained growth in 2022 and beyond. With that, I'll turn it over to Jim to discuss our financial results in more detail.