AvePoint, Inc.

Good day and welcome to the AvePoint, Inc. Q3 2023 earnings call. Today, all participants will be in a listen-only mode. Should you need assistance during today's call, please signal for a 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 telephone keypad. If you would like to withdraw your question, please press star, then two. Please note that today's event is being recorded. I would 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 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 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 presented 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. Reconciliation of these measures to the most directly comparable GAAP financial measures is available in our third 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. Lastly, we have added an Excel file containing our historical financial metrics to the IR website for ease of reference. With that, let me turn the call over to TJ.

Thanks, Jamie, and thank you to everyone joining us on the call today. Q3 was another strong quarter for Outpoint, as we again meaningfully outperformed our guidance for both total revenue and non-GAAP operating margins, while delivering total ARR growth of 25% after adjusting for the impact of FX. Jim will spend more time on our third quarter results and updated guidance, but I would like to spend today discussing the inflection point we currently face and why we are so excited about the many opportunities ahead of us. The digital revolution continues to accelerate, with monumental AI-driven shifts happening in business and technology, in turn requiring us to adapt faster than ever before. Just a few weeks ago, AppPoint hosted Shift Happens Conference in Washington, D.C., This two-day event featured insights from AppPoint as well as our customers and partners on how to accelerate digital success amidst the hybrid work models that are fundamentally changing how we collaborate, as well as the astonishing potential of AI being able all companies to work smarter, faster, and better. Although applications of generative AI are still in early stages, it is clear that AI will drive a wave of enterprise transformation across all industries in the coming years. According to Gartner, 80% of enterprises will incorporate generative AI by 2026, compared to the 5% of enterprises that have done so today. Clearly, the ambition of organizations to leverage generative AI for competitive advantage and value creation is there. But as they do so, they face inherent challenges in data management. And the reality is that today, the number one hurdle for CIOs and CISOs is data quality and data trust. I hear this concern in every conversation with customers and partners. And more formal studies also back this up. 89% of executives say that high-quality data is essential, but 75% of them don't trust their data. And 66% believe they're below average in managing the information lifecycle, properly governing the data, and ensuring its compliance. For AI projects to succeed, organizations must address these data challenges by applying key strategies to better manage, clean, and enrich their data. This is where the power of Outpoint Confidence Platform comes in and why we believe Outpoint can be a key enabler of generative AI adoption within enterprises in the coming years. On a daily basis, we manage more than 250 petabytes of data for our customers and partners, enabling them to modernize, control, and apply resilience to their data management practices. And we have a proven, time-tested playbook to do so, which is only becoming more relevant with the desire to leverage AI across businesses of all sizes around the world. Specifically, these are the steps we take with the Outpoint Confidence Platform. One, we bring together data from all repositories and sources across the enterprise. Two, we ensure that the data is properly classified and intact. And three, we implement the correct lifecycle and access controls for that data. Organizations today are under pressure to use their own data on top of foundational AI models to solve real business problems and drive purposeful outcomes. These steps are powerful because they quickly alleviate that pressure by establishing a strong data foundation, paving the way for an impactful AI strategy. Our innovation has aimed to keep pace with rapidly evolving customer needs. And most recently, we announced AppPoint Opus as shift happens. Available with AppPoint Maestro, an AI-smart classification system, AppPoint Opus provides organizations a comprehensive information lifecycle management solution, offering them powerful insights, impactful recommendations, and effective automation. With AppPoint Opus, organizations can manage their information and ensure compliance, optimize cloud storage, and streamline data management processes. all of which are essential to the AI-focused ambitions of our customers and prospects. We're excited about our roadmap for AI power solutions, and you will hear more from us on new products and enhancements to our existing offerings that will drive even more customer value. Let's discuss a couple of customer wins and expansions in the third quarter that show how we are not only helping organizations establish that solid data foundation, but also helping them extract more value from that data to reduce costs, improve productivity, and make more informed business decisions. One of our most notable customer expansion in Q3 was a large US federal agency. A longtime AppCoin customer, they faced several challenges in meeting their stringent compliance, governance, and security requirements for their 95,000 users as they moved to the cloud. With AppCoin Confidence Platform, the agency can address its complex record management needs, including narrow compliance and data protection. identify and secure a sensitive data and implement the proper controls over its workspace provisioning and lifecycle management of their productivity environment, including Microsoft 365 and Power Platform. This competitive way, also unlocks future opportunities as we're already in talks with them to accelerate their migration of remaining self-hosted assets to Microsoft 365, implement information lifecycle management with AppPoint Opus, and transform analytics into workplace insights with TyGraph. One of the world's largest financial service company has been a longtime customer of our control and modernization suite. And in the third quarter, came to us for help reducing high capacity and consumption costs for their citizen developer platform. They purchased AppPoint Power and now have better visibility into their low-code, no-code application development and license usage of Microsoft Power Platform, allowing them to optimize their resources and save on costs for their 106,000 users. where he advanced talks with this customer to purchase Appoint Opus, provide AI-ready information lifecycle management across its digital workplace investments. The hybrid work model and exponential growth in data, particularly data produced by generative AI, has made clear that organizations need to properly secure sensitive data across an increasingly distributed digital workplace. In Q3, a United Kingdom-based public sector agency needed a comprehensive solution to protect its increasing amount of data during Microsoft 365. After purchasing AppPoint's secure backup service solution, the customer can implement robust resilience for data generated by its 123,000 users. And this new customer is already considering extending this security to their Microsoft Azure investment in order to provide comprehensive protection across their entire digital workplace environment. I'm extremely proud of the team for another strong quarter in closing new customer wins and existing customer expansions. And just want to spend a moment discussing the channel, which, as you know, is a key pillar of our strategy to drive profitable growth. Our investment in AI and proven ability to create a robust and secure data strategy will not only benefit our customers, but it will also provide significant value to our expanding partner network. By integrating more AI capabilities into our technology, our partners will be equipped with smarter, more automated tools to manage and protect their clients' data and collaboration environments. Ultimately, this will reduce complexity and optimize costs for our partners, enabling them to better focus on delivering strategic solutions tailored to enhance the customer experience. We're entering the next phase of generative AI, where the focus is shifting from scaling models to building products that solve real business problems and transform the customer experience. The key to doing this effectively is by having a robust data management strategy, which is the core business problem Apple has solved throughout its 22-year history, and then integrating AI to fully harness its potential. We'll continue to update you as we execute the product roadmap for AI-powered solutions that transform and enrich data to provide perfectly tailored experiences for our customers. As I hold my remarks today make clear, we're well positioned to help companies adapt and compete in today's dynamic business and technology landscape, as the value provided by the Outpoint Confidence Platform is critical to the success of AI ambitions of companies around the world. With that, I'll turn over to Jim to discuss our financial results in more detail.