AvePoint, Inc.

Good afternoon, everyone, and welcome to AvePoint's first quarter 2022 earnings call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, please press the 1 followed by the 4 on your telephone keypad. If at any time during the conference you need to reach an operator, please press star 0. As a reminder, today's conference is being recorded. For opening remarks and introductions, I will now turn the call over to Mark Griffin, Investor Relations. Please go ahead.

Thank you. Good afternoon and welcome to AvePoint's first quarter 2022 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. TJ Zhang, Chief Executive Officer and Jim Cassie, Chief Financial Officer. TJ will begin with a brief review of the business results for the first quarter ended March 31st, 2022. Jim will then review the financial results for the first quarter followed by the company's outlook for the second quarter and full year 2022, then we'll open up the call for questions. Please note that this call will include forward-looking statements that involve risks and uncertainties that could cause the actual results to differ materially from management expectations. We encourage you to review the safe harbor statements contained in our press release for 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 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 a substitute for, or superior to financial measures prepared in accordance with the U.S. GAAP. Listeners who do not have a copy of the quarter-ended March 31, 2022 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 2022 is off to a great start. We delivered a solid first quarter, highlighted by robust SaaS revenue growth and continued progress on our innovation roadmap. Total revenue for the first quarter was $50.3 million, ahead of our guidance on strong SaaS revenue of $26.6 million, which was up 45% from the same period, 2021. We grew total ARR 30% year over year to $167.4 million. Our commitment to create innovative solutions to meet the evolving business needs of our customers over the past 20 years continues to set AppPoint apart. The first quarter was no different, with many exciting enhancements to the AppPoint Confidence Platform, which enables organizations to secure collaboration data, sustain connections between people, and ensure business continuity. With 66% of enterprise IT spending shifting to cloud technologies in 2025, and more than half of businesses identifying optimization of their use of cloud as a top priority, our resilience suite ensures business continuity and compliance with data retention and other regulatory guidelines. This is why we were able to successfully onboard a global leader in application testing and quality engineering services to protect the data in its entire Microsoft 365 environment as well as extend that protection to its Salesforce CRM data and the HR application leveraging the Salesforce platform. The global scale of our confidence platform with 14 deployments across data centers around the world ensures the firm can also satisfy its local data sovereignty requirements. Our Fidelity Suite preserves data integrity as organizations transform from one system to the next, capturing data for compliance or integrating SaaS applications to streamline the way users work. Our Control Suite enables IT to deliver central services at scale with automation and repeatable businesses templates. This, in turn, empowers business users and delegated businesses or department owners to control their budgets, licenses, users, and workspaces. In Germany, we're automating the security, provisioning, governance, and lifecycle of Microsoft 365 collaboration spaces for our customers' 10,000 users so it can focus on its mission to develop solutions addressing basic human needs of food, energy, and building. As many companies continue to navigate global supply chain disruptions, our platform's deep integration with Microsoft 365 enables one of the world's largest managed transportation and logistics providers to save time, reduce costs, and increase productivity in order to follow through on its commitment to achieve supply chain excellence for its customers. With that point, this firm is centralizing the management and governance of its Microsoft 365 workspaces. leading the charge to shift its mindset from using file shares to decrease its exposure to risk and ensure its data is protected and easily restored. During the quarter, we released a number of upgrades to our confidence platform to partner with organizations on their digital transformation journeys, including robust data protection capabilities with the introduction of ransomware detection within our resilience suite, the extension of our FedRAMP authorization across our platform and introducing two new products, Outpoint Entrust and Confide. Ransomware attacks hit companies every 11 seconds, with the cost to recover in the millions of dollars. When MCI Group, a global engagement and marketing agency with 60 offices in 31 countries, experienced a ransomware attack with a user's OneDrive, it quickly realized the need for additional data protection to retain documents for five years and financial documents for 10 years as well as the ability to execute granular restores of data. With AppPoint, MCI Group was able to add to its ransomware resiliency and achieve unlimited retention of data in Microsoft 365 with multiple daily backups and satisfy its 24 by 7 internal support SLAs for data recovery. The digital transformation underway reflects the importance of upholding the highest security standards for companies implementing cloud solutions. including public sector and federal organizations. Since our initial FedRAMP authorization last year, we invested in the authorization of solutions that go beyond our Microsoft 365 offerings, including Salesforce and Google Workspace to help organizations like the U.S. Department of State, U.S. Treasury, IRS, and others in highly regulated industries to collaborate with confidence. As a result of our FedRAMP authorization, AppPoint is now working with a small business administration to reduce risk of data loss for critical business content containing Salesforce through automatic backup and ability to restore content out of place to another Salesforce environment. Digital transformation is also transforming the way that people interact and transact. As companies like WPP continue innovating offerings for how people shop in e-commerce, its 100,000 employees around the world are using Microsoft 365 to power this innovation through greater collaboration and productivity. With that point, WPP manages its growing SaaS operations through streamlined management and can now gain full visibility into its entire Microsoft 365 ecosystem with consolidated and secure dashboards which give a better understanding of the applications, features, and site users are accessing most so they can make appropriate adjustments to increase adoption. We also expanded into innovative purpose-built applications tailored to the modern workplace through the launch of Confide, a virtual data room powering highly secure digital collaboration. A recent Deloitte survey of merger acquisitions professionals found 87% of organizations are managing deals in a purely virtual environment despite half the respondents citing cybersecurity as their greatest concern. Comfy's security stores data within customers' own Office 365 tenant and tailors access for only business leaders who should be privy to sensitive information, a key differentiator from other forms of private channels that exist within Microsoft Teams, Slack, or Google Workspace. The feedback since launching Confide with customers as well as our partner community is positive in terms of how it builds on the power of our confidence platform, positioning us as a holistic partner throughout organizations' M&A journeys, as well as its flexibility to evolve over time to address other typical business user use cases where Confide can apply. Since launching our global partner program last July, we have continued to accelerate our mid-market growth rates as well as reach small and medium-sized businesses with the same enterprise-grade technology available to Fortune 500 businesses. Our channel ecosystem expansion is continuing in line with our geographic and market segment expansion. Our MSP business, primarily focused on the SMB market, continues to grow in triple digits, and this portion of our channel business is expected to reach 10% of our total AR by end of the year. During the quarter, we added new SIs and VARs, as was distributors like DNH, a leading technology distributor of IT solutions in North America. DNH's modern solutions team enables partners to take advantage of the fast-growing market in SMB cloud-managed services by equipping them with key technologies across in-demand solution segments. Strategic distribution partners like DNH play a pivotal role in expanding our partner channel to continue enabling us to scale and deliver cloud services through their cloud marketplaces. Finally, we extend our commitment to meet the needs of an evolving ecosystem with the introduction of our AppPoint certification program, launched with technical and sales tracks to empower partners to best use AppPoint technology and design custom cloud solutions. It will also signal a differentiated level of expertise in our industry-leading technology to help them source more business and exceed competitors. Our direct sales team continue to drive our enterprise business, quickly responding to evolving market trends, and help customers solve their complex business problems. As companies like multinational IT consulting firm Sitecore continue to adopt Microsoft 365 for greater communication, collaboration, and productivity, AppPoint ensures the firm can meet its data protection and GDPR requirements, while enabling smooth management of Microsoft Teams, and automating business processes to save time and reduce costs so they can focus on serving their customers. 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. The number of our customers with over 100,000 ARR increased to 358 in Q1, up 33% year over year. Before Jim goes over the numbers, I want to touch on the share repurchase activity. Since our last earnings to now, we have repurchased approximately $4.8 million in shares. In summary, we report a solid first quarter and continue to execute on our initiatives, which will drive a strong 2022. With that, I'll turn it over to Jim to discuss our financial results in more detail.