AvePoint, Inc.

Good afternoon and welcome to the AvePoint Second Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please see the World Conference Specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw your question, please press star then two. Please note, this event is being recorded. Now I'd like to turn the conference over to Jamie Arrestia, Vice President, Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon, and welcome to AvePoint's second quarter 2023 earnings call. With me on the call this afternoon is Dr. T.J. Jiang, 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 AppPoint 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 presented 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 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 second quarter 2023 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 thank you to everyone joining us on the call today. Highlighted by 30% AR growth, as well as total revenue and margin performance that once again exceeded our guidance, our second quarter results demonstrate the demand for our platform and the strength of our business model. Amidst the ongoing uncertainty in the macro environment, We continue to see customers depend on AppPoint's confidence platform to rapidly reduce costs, improve productivity, and make more informed business decisions as they advance their digital workplaces. This demand, coupled with our sustained focus on profitable growth, drove another quarter that surpassed expectations on both the top and bottom line. Jim will dive into our financial results shortly, but first, I want to discuss two main topics. First, generative AI. and how we're positioning AppPoint for continued long-term success amidst the massive and dynamic changes that are happening in our platform environment. And second, the journey of AppPoint's customers, where our ability is to partner with them in every stage of their digital workplace transformation and cloud optimization journey remains a key competitive advantage for AppPoint and led to another strong set of results this quarter. Let's start with generative AI. We're excited about the potential of AI to disrupt industries and drive innovation. And as the earliest Microsoft SaaS cloud partner, and today the most mature B2B SaaS data management vendor, Appoint's well-positioned to lead the way. In conversations I've had with our customers, our partners, and my peers, two things are abundantly clear. First, the bedrock for impactful AI solutions is data. especially the powerful combination of proprietary data gathered from unique sources on top of foundational AI models, which together will pave the way for unprecedented commercial success and customer satisfaction. And second, the only way to create a successful AI strategy to unlock business value is by applying an advanced information management strategy to the organization's proprietary data. This is where the Outpoint Confidence Platform comes in. AppPoint has been working with customers for over two decades to modernize, control, and apply resilience to their data management practices. And over the last several years, we have incorporated machine learning and AI into our platform, establishing the foundation for powerful insights, impactful recommendations, and comprehensive protection of our customers' digital workplace investments. Our innovation has already helped customers achieve business value by swiftly detecting and guarding against ransomware attacks, ensuring policy enforcement for how information is accessed, and improving the lifecycle of information through strong data governance. Today, we manage more than 250 petabytes of data for our customers on a daily basis, which gives us unparalleled insight into how data is used in different contexts. Now we have an opportunity to go further in helping organizations extract value from their data. A great example of this is a private preview program we launched for our cloud record solution last quarter with four Australian government organizations, offering AI power capabilities that transform how organizations classify content efficiently, accurately, and at scale. One of the participants completed a migration of their data sets from a legacy platform to the cloud, but was unable to correctly classify much of the content due to resource constraints. Our automated intelligence model which can rapidly identify and classify various types of content, apply the appropriate business rules and lifecycle to ensure business and legislative compliance. While completing this manually would have taken the organization years, our model did so in weeks, yielding a factor of nearly 20x productivity improvement. This provided the government agency with better information at lower cost, which in turn will be used for more rapid and accurate reporting and decision making. Our track record of innovation combined with our unique features and platform capabilities, establishes our ability to continue releasing more AI-driven solutions that democratize insights, recommendations, and protection for our customers and are built upon robust data management strategy. You'll hear more from us in the months to come about our continued AI innovation, especially at our upcoming Industry Shift Happens Conference in October. Turning now to the customer journey, This innovation aligns with how we see our customers continuing to evolve their digital workplaces and how our platform supports every stage of their transformation. This often means initially solving one problem and then leveraging our other platform solutions to address their additional needs. Before I share examples of this in action during the second quarter, let me remind you of the components of our platform, which supports every stage of an organization's digital workplace transformation, including cloud consumption optimization use cases to help organizations maximize their ROI on cloud. The AppPoint Confidence Platform consists of the Control Suite, which delivers a sustainable, ready-made framework for automated governance and policy enforcement, protecting business-critical information across collaborative workspaces. The Resilience Suite, which enables organizations to efficiently comply with data protection regulations and preserve critical records, ensuring business continuity and compliance. and the Modernization Suite, which transforms legacy data and business processes for use by modern SaaS platforms, driving digital workplace transformation and enhancing the employee experience across the organization. Moving on to the examples, starting with expansion from a Modernization Suite to the Resilience Suite, a global analytic company headquartered in UK initially came to us to perform a migration to Microsoft 365. leveraging our data analytics capability to reduce the data estate to be moved into the cloud while maintaining the fidelity of the information during the move. Our success here was just the beginning of the partnership, as our chief information officer was also concerned about protecting its Microsoft 365, Azure Active Directory, now known as Microsoft Intra-ID, and Azure Storage environments. Our seamless migration engagement bolstered by our platform play to address the entirety of the data protection needs, led to a competitive win with our resilience suite in Q2, ensuring it can secure its digital workplace for its 15,000 users. Second, an expansion from the control suite to the modernization suite A Fortune 100 multinational consumer goods corporation headquartered in the US with more than 100,000 employees had deployed Microsoft 365 and needed additional capabilities for holistic data governance strategy. They originally leveraged our cloud governance product to operate their environment more effectively. They needed to understand how their content was being shared internally and that only the right people have the proper access in accordance with their rigorous security requirements. Once we demonstrate our ability to meet these needs, they added our tie graph product in Q2. leveraging our platform's data orchestration engine with an AI sentiment analysis model to assess the usage of their Microsoft 365 investments and gain better insights into employee engagement. And importantly, their journey with us will continue as we're in talks to extend our governance capabilities to improve their use of homegrown business workflows, as well as our cloud records product in the resilience suite to drive a more comprehensive approach to information management. Third, expansion from the resilience suite to the control suite. A large Hawaii-based financial institution was concerned about data loss and ransomware attacks and originally choose our resilience suite for data protection and frequent backups that were easy to use and met privacy statutes, including the California Consumer Privacy Act. Just two months later, they added our policies and insight product from our control suite, empowering them to manage their digital workplace. trigger automated alerts that identify critical issues and enforce policies, mandates which have never been more important for global financial service institutions. And we're already in discussions with them to expand their resilience suite deployment with our products specific to Microsoft Power Platform and Azure as they broaden their digital workplace adoption. As you can see from these examples, The AppPoint Confidence Platform offers a unique value proposition to companies of any size in any industry located anywhere in the world, regardless where they are in their digital transformation journey. We empower companies to optimize and secure the solutions that most commonly establish and underpin their digital workplace today. And going forward, we believe that the more automation will lead to even greater customer collaboration and efficiency. Our Q2 results make clear that our strategy is resonating both with the customers and with our partners who are critical to our long-term success and with whom we continue to do incredible work. Before I turn the call to Jim, I want to recognize the team for another strong quarter in signing new logos, which are the foundation of our future growth. One of the largest food and beverage companies in the world became an AppPoint customer in Q2, purchasing our cloud governance and policy insights product to amplify the benefits of their data sources. The organization was looking to ensure the use of their data sets were safe, responsible, and effective. With our products, they will now be able to process volumes of information by making sure the data is appropriately shared, accessible, interoperable, and reusable. In other words, making information actionable. Our ability to generate proactive insights will allow their security team to understand the information's context and make sure their governance policies align to their regulatory requirements. In addition to taking more proactive posture, there is a clear cost benefit with reduced time spent on investigating data breach events. Our products provide the single pane of glass to monitor and analyze their data usage so they can protect their data and information from fraud and bad actors to safeguard their reputation and revenue. For more than two decades, AppPoint has pushed the boundaries of digital workplace transformation by innovating to meet the needs of our customers. especially as they navigate dynamic macroeconomic environments. As I hope my remarks today have made clear, we're well positioned for continued success, and we're equally ready to maximize the massive opportunity ahead of us to unlock the value of generative AI to increase efficiency, boost productivity, and drive critical innovation. With that, I'll turn it over to Jim to discuss our financial results in more detail.