AvePoint, Inc.

Good afternoon, and welcome to the AvePoint, Inc. Third Quarter 2022 Earnings Call. Please note, this event is being recorded. I'd now like to turn the conference over to Jamie Arestia, Vice President, Investor Relations. Please go ahead, sir.

Thank you, operator. Good afternoon, and welcome to AvePoint's Third Quarter 2022 Earnings Call. With me on the call this afternoon is Dr. T.J. Jang, Chief Executive Officer and Jim Cassie, Chief Financial Officer. After preliminary remarks, we will open the call for a question and answer session. 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 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 a means of evaluating and understanding how 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. A reconciliation of these measures to the most directly comparable GAAP financial measures is available in our third quarter 2022 earnings press release, as well as our updated investor presentation, both of which are available in the investor relations section of our website. With that, let me turn the call over to TJ.

Thanks, Jamie, and I'm happy to formally welcome you to AppPoint as our new head of investor relations. Thank you to everyone joining us on the call today. Q3 was another strong quarter for AppPoint. highlighted by 34% ARR growth and 26% total revenue growth, both adjusted for the impact of FX. Our strong top-line performance reflects the ongoing need to secure collaboration data, sustain connections between people, and ensure business continuity. At the same time, we're laser-focused on profitability, which has always been a priority at AppPoint, but it is especially important in a dynamic macroeconomic environment we have seen develop over the past few quarters and which we expect will continue. Jim will provide more color on our results in a moment, but today I will discuss what we're seeing in the current environment and why our offerings continue to resonate with organizations of all sizes, verticals, and geographies. I will also provide an update on our growing channel ecosystem and the associated financial improvements we're beginning to realize, as well as our increased R&D investments and two recent acquisitions. So let's jump in. As we have said many times, AppPoint solutions help our diverse global customer base overcome a variety of complex challenges in the cloud to continue to innovate. By transforming data and collaboration so users can be more productive with the latest cloud services, the AppPoint Confidence Platform helps companies become more digitally resilient and build the right foundation for innovation. Whether they want to move faster, reduce costs, improve productivity, or make more informed business decisions, AppPoint customers trust they can use our purpose-built platform to collaborate with confidence in the modern workplace. And to remind you, Gartner estimates that the spending on public cloud services will grow more than 20% this year, one of many tailwinds we see that leave us well-positioned for continued strong performance. The AppPoint confidence platform is the only full suite of cloud solutions to optimize SaaS operations and secure collaboration in the workplace. This uniquely positions us to help organizations as they adopt and mature in their cloud usage. So let's spend a moment on each of the product suites and highlight some key new and expansion wins from the quarter that demonstrate how we enable agile business transformation. During a time when companies are taking a hard look at ROI on their digital initiatives, our control suite helps them better understand and manage their data and digital operations. Infrastructure and operations leaders can deliver central services at scale, such as provisioning and lifecycle management through automation and repeatable business templates. With that point, a Canadian federal agency was able to automate user lifecycle management for the 40,000 users in its Microsoft 365 environment. freeing up resources to focus on the agency's mission to improve the standards of living and quality of life for all Canadians. Appoint customer in the financial service industry, American National, reduced new workspace creation in Microsoft Teams by 50% and avoid data sprawl by automating policy configuration and enforcement. This has helped to increase adoption of Microsoft Teams and reduce data storage costs as the company continues to scale its digital investments. In both cases, we empowered business users to maximize their digital transformation investment with greater control over their budgets, licenses, users, and workspaces. As companies around the world continue to move at the speed of their markets, our Fidelity Suite accelerates time to value as they transform from one system to the next, preserving data integrity and ensuring business continuity. With that point, A financial service organization serving more than 13 million people modernized its digital platform by migrating their legacy on-premises environments to Microsoft 365 while maintaining its data privacy and governance policies. And a global coffee powerhouse was able to swiftly restructure its Microsoft 365 environment by migrating more than five terabytes of data in one month across two Microsoft 365 tenants. In both cases, We help these organizations move, migrate, and consolidate data, transforming those assets while minimizing impact on the businesses. I'm also proud of our team's recent win to gain the confidence of the second largest investment bank in the world by revenue. With our Fidelity Suite, the bank will take smart inventory of which data should be transformed, and as a result, will save time and add more efficiency to their digital operations. As our customers transform, so too does the global regulatory environment. and organizations in every industry continue to turn to Appoint's resiliency suite to ensure their data is protected, secure, and compliant. In the third quarter, Appoint expanded its relationship with a global manufacturer to enhance its security posture while reducing its cost to protect its data with multiple vendors. Using our centralized policy management controls, we help the organization eliminate misconfiguration risk and enhance data visibility across their entire Microsoft 365 environment. We also help the organization manage insider threats, prevent data breaches, and enforce the highest level of protection for unstructured data. And with that point, a global technology leader transforming how businesses manage their spend can now protect data in their Salesforce and Google Workspace environments, combating ransomware attacks, and ensuring business resiliency across their multi-cloud investments. These are just a few examples of how our proven technology provides our customers more efficient and secure operations every day. Additionally, we'll hold a virtual deep dive on our platform and technology in a few weeks and encourage everyone to attend and learn more about the AppPoint Confidence Platform. A press release with more formal details will be issued next week. Let me switch gears and turn to our efforts with the channel. You have heard me say many times that our offerings apply to companies of all sizes. And while our technology is enterprise grade, it is also available to help small businesses around the world. We know this customer segment offers enormous potential. Our expanding channel partner network not only deepens our relationships with existing partners, but also accelerates our SMB growth. The expansion of our channel ecosystem continues in line with our geographic and market segment expansion. Our MSP business, which is primarily focused on the SMB market, continues to see robust growth amidst the environment of ongoing consolidation. This is an incredible force multiplier for us. As the larger MSPs with whom we have strong relationships acquire smaller MSPs, we continue to be viewed as a partner of choice, which should help drive sustained demand by small businesses for our cloud solutions. We'll continue to provide updates on these efforts. as we're extremely excited about the potential here to expand our addressable market. While we're encouraged by the financial contribution to date, we also know this strategic effort still has some runway before being fully realized. For example, to encourage our expansion and scaling through the channel, we implemented compensation neutrality with our global sales forces. While this serves As a drag on short-term sales productivity and efficiency, we know that it will bring significant improvement to these measures over the medium to long term and should bring us to non-GAAP and GAAP profitability sooner. Before I turn the call over to Jim, I just wanted to mention several highlights from the last quarter underscoring our continued growth trajectory. The first is our establishment of an international research and development hub in Singapore. which will act as a major hub within our worldwide R&D network and foster local talent to support the growing demand for B2B SaaS solutions in the APAC region. With the growth of a vibrant R&D community in Singapore, Appen will continue innovating to address modern digital challenges, strengthen global cloud resilience for customers, support data sovereignty, strengthen multi-cloud security, and ensure regional businesses are supported at the local level. As more organizations in APAC are embracing digital transformation, we saw a critical need to expand our local presence to support growing customer demand, as well as the opportunity to recenter our presence in the region in light of the broader geopolitical environment. We're also excited by two acquisitions we closed in Q3 2022. The first is TyGraph, whose award-winning platform allows organizations to accelerate success in the digital workplace. Bringing TyGraphs analytics to our Cloud Insights engine creates a blend of capabilities that expands our vision for analytics beyond simply delivering data sets and presenting dashboards. I often speak to C-level leaders who are making the pivot from a primarily office-based working environment to a distributed enterprise, who have a rapidly growing number of workplace applications and are challenged to measure employee engagement. Our goal is to deliver a contextualized experience for data insights, accelerating organizations' decision-making process. By optimizing the workspace and analyzing data from a variety of sources, organizations can better understand employee preferences and organizational trends, allowing them to adapt and pivot their hybrid workplace strategies. The second acquisition is essential. a South Korean-based software solutions provider that will advance our ability to enable large organizations in the region's fourth largest economy to accomplish their digital transformation goals. Building on the expansion of our previously announced FedRAMP-authorized solutions, which can be components of zero-trust security implementations for federal agencies, we achieved a number of ISO and CSA STAR security specifications in Q3. This reflects our continued prioritization of security and privacy for both AvePoint and its customers, with enhanced abilities to help them mitigate access risk, reduce security breaches, and strengthen audit and compliance posture. In summary, despite an uncertain macro environment, AvePoint had another strong quarter. We continue to execute against our mission to enable organizations to collaborate with confidence while positioning ourselves to provide greater long-term value for shareholders. With that, I'll turn it over to Jim to discuss our financial results in more detail.