AvePoint, Inc.

Good afternoon and welcome to the AvePoint, Inc. second quarter 2025 earnings conference call. At this time, all participants are in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there'll be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Jamie Orestia, Vice President, Investor Relations. Please go ahead.

Thank you, operator. Good afternoon and welcome to AvePoint's second quarter 2025 earnings call. With me on the call this afternoon is Dr. TJ 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 gross profit, non-GAAP gross margin, 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 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 on our second quarter 2025 earnings press release, as well as our updated investor presentation and financial tables, all of which are available on our investor relations website. With that, let me turn the call over to TJ.

Thank you, Jamie, and thank you to everyone joining us on the call today as we recap our outstanding second quarter results, highlighted by our performance on the top and bottom line, as well as continued improvement on a number of key financial and operational metrics. Q2 also represents a major milestone for AppPoint, our first quarter to surpass $100 million in revenues. The entire AppPoint team deserves credit for this achievement, which reflects the enormous market opportunity ahead of us and marks another step on our path to $1 billion in AR by 2029. This achievement is not just a financial milestone. It's a reflection of the innovation that powers the AppPoint Confidence Platform. as well as the trust of our customers and partners placing us. That's why I want to spend my time today discussing our ongoing innovation, which has only accelerated in recent years. Today, these efforts have positioned us squarely at the intersection of data, security, and AI, and continue to drive the steady, consistent execution you have come to expect from AppPoint. I'll also share some meaningful customer wins and expansions during the quarter, and then turn the call over to Jim to recap our financial performance and updated outlook for the year. We know that innovation has always been essential to maintaining our competitive edge. But what's clear from every customer conversations today is that the data management challenges we're solving from AI governance and training data provenance to model explainability, responsible surveillance, or simply the need to reduce costs are now front and center in enterprise strategy. At the same time, organizations are realizing that tackling data management, governance, compliance, and security in isolation just doesn't cut it anymore. These functions need to work together. That's why we have built our platform around a unified framework with three core pillars providing a comprehensive data protection strategy. First, ensuring data is always available and recoverable after a cyber attack. Second, securing it across every environment. And finally, governing its use to meet regulatory and business requirements. Our connected approach enables true cyber resilience, and it's why more enterprises are turning to integrated platforms like Appoints. Our strong results this quarter reflect that growing momentum. In Q2, We advanced our platform in meaningful ways to help customers and partners turn today's challenges into strategic advantages, positioning them to achieve operational excellence in an increasingly AI-driven multi-cloud world. These strategic advancements come to life through the innovations we have delivered across our platform. Let me start with our product innovation. We introduced several new command centers within our confidence platform this quarter, each designed to help organizations optimize digital investments and strengthen resilience. In April, we announced the launch of our Risk Posture Command Center, a critical advancement within the AppPoint confidence platform and our most significant evolution yet in data protection, designed specifically to counter advanced cyber threats like ransomware. The risk posture command center provides organizations real-time visibility into their data security posture, backed by actionable intelligence to reduce risk and remain compliant. As the complexity of data and AI adoption accelerates, too many organizations are left juggling disconnected tools and dashboards. Research from Gartner finds that 86% of organizations struggle to balance data security with business objectives. and nearly half of IT leaders lack confidence in their organization's ability to manage security and access risks. Our Risk Posture Command Center addresses this challenge head-on, empowering both business and IT leaders with a single intuitive interface to detect early threats, assess compliance, and act swiftly on potential vulnerabilities. This is more than just a tool. is a strategic asset that bridges the gap between technology teams and the C-suite, turning data risks into business opportunity. That's why 85% of the CEOs now view cybersecurity as a critical growth driver, according to Gartner's 2025 CEO survey. And while only 10% of organizations are fully prepared for AI-augmented cyber threats, Accenture finds those that are prepared experience 69% fewer advanced attacks and a 15% boost in customer trust. And then in June, we announced the launch of two additional command centers. The optimization and ROI command center gives CIOs real-time visibility into underused licenses, redundant data, and cloud cost inefficiencies, in turn providing a comprehensive view of hard-to-find cost-saving opportunities across their data estate, all through a single pane of glass. And with the vast majority of companies intending to implement some form of cost savings relating to people, processes, or technology, this command center will enable them to maximize efficiency while maintaining robust security standards. The other launch was the Resilience Command Center, which directly addresses the growing challenge of managing data protection across complex environments. The offering provides comprehensive monitoring and actionable insights for Microsoft 365 services, including storage consumption tracking, backup data oversight, visibility into the most critical data protection with Backup Express, and cost optimization recommendations. Taken together, these capabilities are vitally important in helping organizations protect against and recover from ransomware attacks, which are growing in frequency and severity. And importantly, This new offering serves as the foundation for a broader multi-cloud governance vision with planned expansion to Google Workspace, Salesforce, and other ecosystems. Building on these foundational capabilities, we also expanded our agentic AI governance capabilities to secure AI agents like Microsoft 365 Copilot. These include prompt tracking, access controls, and policy enforcement for AI-generated content. Importantly, these capabilities were shaped directly by customer needs, especially from organizations preparing for large-scale co-pilot rollouts and looking to mitigate oversharing and compliance risks. Taken together, these innovations help customers strengthen their multi-cloud resilience, prepare for the future of autonomous AI, and uncover real cost savings. And by delivering deep visibility into both risk posture and return on investment, we are enabling customers to make faster, smarter decisions that align IT operations with strategic priorities. Just as we are empowering customers to move faster and smarter, we're also deepening support for our partners who play a critical role in scaling these innovations across the market. Central to these efforts have been the ongoing enhancements to our Elements platform. specifically aimed at managed service providers. Earlier this year, we launched the next generation of AppWay Elements, an AI-powered hub that helps MSPs deliver secure, scalable services across Microsoft 365, Google Workspace, and Salesforce. It centralizes data protection, tenant management, and compliance with automation and integrations that simplify operations and boost recurring revenue. And in June, we added new capabilities to help MSPs further improve margins and reduce client risk, including marketplace integration for streamlined license management, behavioral analytics to flag risky users, and tools to reclaim unused licenses and archive stale data. Together, these enhancements give MSPs more control, stronger security, and greater efficiency at scale. What's particularly compelling is how a solution originally designed for MSPs is now also delivering significant value to enterprise customers. A big four professional services firm with 500,000 users face mounting risks from ungoverned Microsoft 365 tenants as they prepare to roll out Copilot. Our ability to create and customize baselines from existing tenants allow them to centralize and simplify management of their security and compliance settings. This led to a major expansion in the quarter, enabling them to reduce data sprawl, delegate administration, and ensure consistency across their multi-tenant environment. These innovations are more examples of how we enable our customers and partners to navigate complexity, giving them the clarity and confidence to move faster, safer, and smarter. And our integrated platform approach continues to resonate in the market as reflected in the strong customer momentum we saw in Q2 across both new customer acquisitions and expansions of existing relationships. A global airline with nearly 100,000 users became a new AppPoint customer in Q2, selecting our platform to unify lifecycle management and oversharing controls across Microsoft 365, a foundational step as they prepare for AI adoption. Similarly, a U.S. insurer with nearly 25,000 users joined as a new customer to implement structured provisioning, classification, and policy enforcement, giving them the governance framework needed to confidently scale their co-pilot deployment. We also welcome a global commodities trading firm with 11,500 users who selected AppPoint over four point solutions for our ability to protect and secure multiple workloads. Similarly, a US-based cancer research hospital with 9,500 users replaced several legacy tools with AppPoint to address ransomware protection, data governance, and delegate administration. In both instances, the highly regulated nature of these industries demanded a platform solution that could address multiple strategic use cases. On the expansion front, a global CPG leader with 130,000 users deepened their relationship with AppPoint by adopting archiving and governance solutions to reduce SharePoint online storage costs and improve data hygiene. Another big four professional service firm with 400,000 users also expanded their investment, leveraging our platform to prepare for a co-pilot rollout by identifying overshared content and enforcing preventive controls. These examples underscore the growing demand for unified, intelligent data management. They reflect broader trends we're seeing across the enterprise, the convergence of security and governance concerns, accelerating AI adoption, increasing regulatory pressures, and the need to reduce costs. These all play to AppPoint's strength, and as organizations look to consolidate vendors, we're well-positioned to meet that need. We're confident in our strategy and excited about the opportunities ahead as we continue to lead in this dynamic environment. Thank you again for joining us today. I'll now turn it over to Jim.